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 were $8,976 in 2022 compared to $10,181 in 2021. The decrease was attributable to the fluctuations in FX currency. The following table summarizes the Company's revenue allocations:





Year ending September 30,                                        2022          2021
Subsidiary ANV Lease Revenues                                  $   8,976     $  10,181
Subsidiary Sharx commissions from the sales of cargo
security products                                                      -             -
Total                                                          $   8,976     $  10,181

GENERAL AND ADMINISTRATIVE EXPENSES: G&A expenses for the three-month period ending September 30, 2022 and September 30, 2021 were $1,621 and $1,166 respectively. The expenses are attributable to the Company's SEC compliance and accounting costs.

PROFESSIONAL EXPENSES: Professional expenses for the three-month period ending September 30, 2022 and September 30, 2021 were $8,500 and $8,000 respectively. The expenses were attributable to audit fees for 2022 and 2021.

OTHER INCOME (EXPENSES): Other income (expenses) for the three-month period ending September 30, 2022 and September 30, 2021 were $(246), and $(529) respectively and mainly attributable to currency translation.

NET INCOME (LOSS): Net income attributed to common stockholders was $(3,250) or $(0.00) per basic and diluted share for the three-month period ending September 30, 2022 as compared to $(1,571) or $(0.00) per basic and diluted share for September 30, 2021 and mainly attributable to audit fees and foreign currency transaction.

LIQUIDITY AND CAPITAL RESOURCES: At September 30, 2022 and June 30, 2022, the Company had cash and cash equivalents of $87,203 and $94,216 respectively. At September 30, 2022 and June 30, 2022, the Company had a working capital deficit of $251,708 and $113,179 respectively. The change in cash is primarily due to AVN's payment of debt and normal operations. The decrease in the working capital deficit is primarily related to the operations.

Net cash provided by operating activities for three-month period ending September 30, 2022 and September 30, 2021 was $7,388 and $7,700, respectively. The decrease was primarily due to the audit expenses during the three-month period ending September 30, 2022.

Net cash used-in financing activities for three-month period ending September 30, 2022 and September 30, 2021 was $(9,062) and $(11,312) respectively. Net cash used for financing activities for both periods is related to the repayment of debt and related party 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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