The following should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in the Financial Statements.





FORWARD LOOKING STATEMENTS:

Certain statements contained in this report, including statements concerning the Company's future and financing requirements, the Company's ability to obtain market acceptance of its products and the competitive market for sales of small production business and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation to those risks and uncertainties set forth in any of the Company's Registration Statements and Annual reports on form 10K under the heading "Risk Factors" or any other such heading. In addition, historical performance of the Company should not be considered as an indicator for future performance, and as such, the future performance of the Company may differ significantly from historical performance.

Revenues: Revenues from operations for the three-month period ending December 31, 2020 and December 31, 2019 were $10,284 and $9,281 respectively, and for the six-month period ending December 31, 2020 and December 31, 2019 were $20,613 and $18,610 respectively. The increase was attributable to currency fluctuations.

General and administrative expenses: G&A expenses for the three-month period ending December 31, 2020 and December 31, 2019 were $267 and $3,958 respectively, and for the six-month period ending December 31, 2020 and December 31, 2019 were $4,322 and $7,173 respectively. The expenses are mainly attributable to ANV's normal operations and the Company's SEC compliance and the fluctuations are attributable to currency fluctuations and accounting costs.

Salary and Wages expenses: Salary and wage compensation expenses for the three-month period ending December 31, 2020 and December 31, 2019 were $0 and $113,000 respectively, and for the six-month period ending December 31, 2020 and December 31, 2019 were $0 and $113,000 respectively. The decrease was due to a one-time stock grant to an officer of the Company in the prior year periods.





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Professional expenses: Professional expenses for the three-month period ending December 31, 2020 and December 31, 2019 were $3,025, and $2,500 respectively, and for the six-month period ending December 31, 2020 and December 31, 2019 were $10,050 and $8,500 respectively. The expenses were attributable to the ordinary audit fees for 2020 and 2019.

Interest expense: Interest expense for the three-month period ending December 31, 2020 and December 31, 2019 was $(698) and $(859) respectively, and for the six-month period ending December 31, 2020 and December 31, 2019 were $(1,435) and $(1,755) respectively. Interest expenses for 2020 are lower primarily due to the currency fluctuations and the reduction of debt.

Net Income (loss): Net income(loss) attributed to common stockholders was $4,204 or $0.00 per share for the three-month period ending December 31, 2020 as compared to $183 or $0 per share for December 31, 2019. Net loss attributed to common stockholders was $726 or $0.00 per share for the six-month period ending December 31, 2020 as compared to $(115,363) or $(0.04) per share for December 31, 2019. The fluctuations are mainly attributable to officer compensation, general & administrative expenses and currency fluctuations.

Liquidity and capital resources: At December 31, 2020 and June 30, 2020, the Company had cash and cash equivalents of $50,348 and $43,603 respectively. At December 31, 2020 and June 30, 2020, the Company had a working capital deficit of $267,035 and $258,857 respectively. The change in cash is primarily due to the ANV'S payment of debt and normal operations. The increase in the working capital deficit is primarily related to the operations of the Subsidiary.

Net cash provided by operating activities for six-month period ending December 31, 2020 and December 31, 2019 was $22,433 and $11,940, respectively. The increase was primarily due to the decrease in taxes payable and the decrease in expenses paid on behalf on a related party.

Net cash used-in financing activities for six-month period ending December 31, 2020 and December 31, 2019 was $(19,244) and $(17,077) respectively. Net cash used in financing activities for both periods is related to the company's borrowings from banks, officers and directors, and the repayment of debt.

OFF BALANCE SHEET ARRANGEMENTS:

We do not currently have any off-balance sheet arrangements.





ACQUISITION EFFORTS:

The Company continues its efforts to raise capital to support operations and growth and is actively searching acquisition or merger with another company that would complement AOXY or increase its earnings potential. During this period, the Company has been in discussion with Companies looking to be acquired. AOXY has not negotiated any terms nor proposed any acquisitions of any of these companies that have been accepted. In addition, the Company is in discussion with potential lending institutions to assist in financing any proposed acquisition. The Company expects difficulty in financing the growth of the increased business or acquisition and has been concentrating on raising capital and/or obtaining a line of credit.


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