I really am not very smart, as you all know. So, I was wondering if any of you have a concern about the "Extraordinary Income" listed below?
Definition: Extraordinary item. A nonrecurring occurrence that must be explained to the shareholders in an annual or quarterly report. Some examples are: writeoff of a division, acquisition of another company, sale of a large amount of real estate, or uncovering of employee fraud that negatively affects the company's financial condition. Earnings are usually taken into account before and after taking into account the effects of extraordinary items.
Note: The above is a definition of extraordinary item, as found in the Dictionary of Finance and Investment Terms. I am NOT saying that any of the conditions exists within AOXY, although "writeoff of a division", apparently does. What do you think?
ITEM 7. FINANCIAL STATEMENTS
ADVANCED OXYGEN TECHNOLOGIES, INC. FINANCIAL
STATEMENTS;
Advanced Oxygen Technologies Inc.
Balance Sheet for the year ending
June 30, 1999
Assets
1999 1998
Current Assets
Cash 54,057 (56,835)
Receivables 61,203 161,064
Allowance for Doubtful Accounts (1,295) 0
Database Management Receivables 15,315 0
A/R Reserve 0 (45,554)
Inventory 6,759 3,525
Total Current Assets $136,039 $62,200
Property and Equipment
Furniture and Fixtures 31,869 31,869
Office Equipment 17,882 17,882
Equipment 98,858 98,858
Capitalized Equipment 125,352 25,406
Other Depreciable Property 911,391 911,391
Accumulated Depreciation (187,887) (84,438)
Total Property and Equipment $997,465 $1,000,968
Other Assets
Deposits 4,093 0
Total Other Assets $4,093 $0
Total Assets $1,137,597 $1,063,168
Liabilities and Capital
Current Liabilities
Accounts Payable 179,930 66,490
Accrued Expenses 0 41,305
Sales Tax Payable 2,577 1,649
Health Care Contributions 5,894 1,351
Due to Employees 6,375 0
Federal payroll Taxes Payable 46,546 27,161
State Payroll Taxes payable 5,436 1,641
SUTA Tax payable (140) (220)
IMA Short Term Note (1,800) 0
State Taxes Payable 800 800
Payable to Client 0 61,418
Deferred Commission Income 0 7,681
Total Current Liabilities $245,276 $209,276
Long Term Liabilities
Note Payable Olsen 0 1,741
Capital Leases Obligation 123,583 23,637
NOTE Payable Crossfield 20,199 17,925
Note payable IMA 0 528,466
Other Long Term Liabilities 11,886 0
401k T Account 58,226 15,001
Total Long Term Liabilities 213,895 586,770
Total Liabilities $459,512 $796,046
Capital
Beginning Balance Equity 16,700 16,700
Preferred Stock 50 50
Common Stock 296,403 296,403
Paid in Capital 20,398,631 20,398,631 19,898,631
Retained Earnings (20,444,662)(20,187,362)
Net Income 410,963 (257,300)
Total Capital $678,085 $267,122
Total Liabilities & Capital 1,137,597 1,063,168
STATEMENT OF OPERATIONS
Advanced Oxygen Technologies Inc.
Income Statement for the year ending
June 30, 1999
1999 1998
Revenues
Service Fees 0 1,395
Consulting 105,895 50,000
CA Registrations 346,234 9,799
CD Sales 142,617 150,727
Sponsor Sales 32,602 10,995
Client Contracts 12,190 58,434
Database Management 32,516 225
Commissions 69,099 31,254
Total Revenues 741,154 312,829
Cost of Sales
Cost of Product 10,681 12,709
Freight (5,388) 0
Other 0 2,114
Independent Contract commissions 42,882 105,647
Royalties 16,009 0
Show Fees 0 110,000
Amortization 0 75,949
Returns and Allowances 510 0
Total Cost of Sales 64,694 306,419
Gross Profit 676,460 6,410
Expenses
IC Reimbursable Expense 274 92
Advertising Expense (4,993) 2,383
Accounting/Professional Fee 32,953 4,107
Auto Expense 248 1,050
Bad Debt Expense (45,554) 50,554
Bank Charges 17,024 2,487
Closing Costs 26,910 54,665
Commissions and Fees Expense 2,571 183,951
Consulting Expense 0 3,000
Credit Card Charges (1,076) 0
Depreciation Expense 103,449 8,489
Dues and Subscriptions 1,756 (2,139)
Employee Benefits 3,001 49
Freight 282 726
Interest Expense 28,252 8,858
Cleaning Expense 978 2,024
Legal & Professional Expense (26,117) 57,930
Maintenance Expense 718 46
Management Expenses 0 434
Moving Expense 996 48
Meal & Entertainment Expense 973 1,557
Misc. Expense 0 16,875
Office Expense 2,906 952
Other Taxes 0 193
Payroll Tax Expense 16,950 4,018
Postage Expense 6,002 3,313
Printing and Reproduction 16,529 7,613
Professional Development 0 32
Professional Salaries Billable 40 0
Share/Transfer Agent expense 1,785 5,270
Professional Salaries-Non Billable 707 411
Rent/Lease Expense 37,293 20,848
Computer & Equipment leases 40,962 12,237
Repairs Expense 550 0
Transcribing Expense 35,588 14,290
Salaries Expense 114,825 59,111
Employee Commission Expenses 9,372 1,491
Subcontract Fees 18,444 2,952
Temporary Employment 0 318
Supplies Expense 2,555 2,363
Computer Software Upgrades 726 3,652
Telephone Expense 53,506 18,194
Travel Expense 15,967 11,821
Utilities Expense 5,658 4,585
Wages Expense 72,232 9,990
Overtime Wage Expense 146 0
Other Expenses 465 360
State Tax Provision 0 800
Total Expenses 595,853 581,997
Extraordinary Income
Bad Receivables Income (201,630) 0
Commission Income 0 8,000
Interest Income 108 0
Other Income 5,914 17,188
12/97 Forgiveness off Debt 0 286,374
1/29/99 Forgiveness of Debt 521,894 0
Shipping Charges Reimbursed 4,069 6,726
Total Extraordinary Income $830,357 $318,288
NET INCOME $410,963 ($257,300)
STATEMENT OF CASH FLOW
Advanced Oxygen Technologies Inc.
Statement of Cash Flow
June 30, 1999
1999
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME 410,963
Adjustments to reconcile net income to Net
Cash by operating activities
Accum. Depreciation 103,449
Accounts Receivable 99,861
Allowance for Doubtful accounts 1,295
Database Management Receivable (15,315)
A/R Reserve (45,554)
Inventory (3,234)
Accounts Payable 113,440
Accrued Expenses (41,305)
Sales Tax Payable 928
Health Care Contributions 4,543
Due to Employees 6,375
Federal Payroll Taxes Payable 19,385
State Payroll Taxes Payable 3,795
SUTA Tax Payable 80
IMA Short Term Note Payable (1,800)
Payable to Clients (61,418)
Deferred Commission Income (7,681)
Total Adjustments 176,843
Net Cash Provided By Operations 1,087,806
CASH FLOWS FROM INVESTING ACTIVITIES
Used For::
Capitalized Equipment (99,946)
Deposits (4,093)
Net Cash used in investing (104,039)
Cash Flows from Financing activities
Proceeds From:
Capital Leases Obligation 99,946
Notes Payable Jens Olsen 8,400
Note Payable Crossfield 23,274
Other Long Term Liabilities 1,259
401K T account 58,226
Preferred Stock 10,000
Used For:
Notes Payable Olsen (10,141)
Notes Payable Crossfield (21,000)
Note Payable IMA (528,466)
Other Long Term Liabilities (4,375)
Preferred Stock (10,000)
Net Cash used in Financing (872,875)
Net Increase (decrease) in cash 110,892
Summary:
Cash Balance at End of Period 54,057
Cash Balance at Beginning of Period 6,099
Net Increase (decrease) in cash 60,156
STATEMENT OF SHAREHOLDER'S EQUITY
Advanced Oxygen Technologies Inc.
Statement of Shareholder's Equity
For the Year ended June 30, 1999
Jan 29, 1999
Balance Purchase of Note Net Balance
6/30/1998 & Preferred Shares Income 6/30/1999
============================================================================
Series2 Shares 5,000 5,000
Amount $50 $50
-----------------------------------------------------------------------------
Series3 Shares 1,670,000 (1,670,000) 0
Amount $16,700 $16,700
-----------------------------------------------------------------------------
Series4 Shares 2 2
Amount $0 $0
-----------------------------------------------------------------------------
Series5 Shares 1 1
Amount $0 $0
-----------------------------------------------------------------------------
Preferred Shares 0 1,670,000 1,670,000
Treasury Stock Amount $0 $0
-----------------------------------------------------------------------------
Common Stock Shares 29,640,252 29,640,252
Amount $296,403 $296,403
-----------------------------------------------------------------------------
Addtnl Paid in Capital $20,398,631 ($500,000) $20,398,631
-----------------------------------------------------------------------------
Accumulated Deficit ($20,187,362) 410,963 ($19,276,399)
=============================================================================
TOTAL (257,300) |
