U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF1934
For the quarterly period ended March 31, 1998 or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT COMMISSION OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission file number 0-9951
ADVANCED OXYGEN TECHNOLOGIES, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 91-1143622
(State of Incorporation) (I.R.S. Employer Identification No.)
230 Park Avenue, Suite 1000
New York, NY 10169
(Address of principal executive offices)
(212)808-3061
(Issuer's telephone number)
Check whether the issuer (1) has filed all reports required to be filled
by Section 13 or 15(d)
of the Exchange Act during the past 12months (or for such shorter period that
the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90
days.
Yes X No
The number of shares of common stock outstanding as of March 31, 1998
was 29,640,252.
Transitional Small Business Disclosure Format (check one):
Yes No X
ADVANCED OXYGEN TECHNOLOGIES, INC.
INDEX
PART I- FINANCIAL INFORMATION
Item 1. Financial Statements
Balance sheet as of March 31, 1998
Statement of income for the three month period ended March 31, 1998
Statement of cash flows for the three month period ended March 31, 1998
Item 2. Management's discussion and analysis of financial condition and
results of operations
PART II- OTHER INFORMATION
Item 27. Financial Data Schedules
SIGNATURE
Item I
PART I
FINANCIAL INFORMATION
ADVANCED OXYGEN TECHNOLOGIES INC.
FOR THE 3 MONTHS ENDING MARCH 31, 1998
(UNAUDITED)
BALANCE SHEET
<TABLE>
<S> <C> <C>
Current Asset 57,227.00
TOTAL CURRENT ASSETS 57,227.00
Property & Equipment 1,973,735.84
TOTAL PROPERTY & EQUIPMENT 1,973,735.84
Other assets 3,259.50
TOTAL OTHER ASSETS 3,259.50
TOTAL ASSETS 2,034,222.34
LIABILITIES AND CAPITAL
Current Liabilities 12,722.42
TOTAL CURRENT LIABILITIES 12,722.42
Long Term Liabilities 563,001.00
TOTAL LONG TERM LIABILITIES 563,001.00
TOTAL LIABILITIES 575,723.42
CAPITAL
Preferred Stock 1,466,770.00
Common Stock 289,963.00
Paid in Capital 19,857,051.00
Retained Earnings (20,194,237.00)
Net Income 38,951.92
TOTAL CAPITAL 1,458,498.92
</TABLE>
INCOME STATEMENT
<TABLE>
<S> <C> <C>
REVENUES
Sales 92,945.04
Other Income 937.50
Shipping Charges Reimbursed 2,943.26
TOTAL REVENUES 96,825.80
COST OF SALES
Cost of Sales- Other 398.34
Independent Contractor Commission 600.00
Royalty Fees on Sales 50,000.00
TOTAL COST OF SALES 50,998.34
GROSS PROFIT 45,827.46
Expenses 42,327.54
TOTAL EXPENSES 42,327.54
NET INCOME 3,499.92
</TABLE>
CASH FLOW STATEMENT
<TABLE>
<S> <C> <C>
Net income 3,499.92
Adjustments (A/P) (6,541.02)
TOTAL ADJUSTMENTS (6,541.02)
Net cash provided by Operations(3,041.10)
Net cash used in investing (2,003,259.50)
Cash Flows from Financing
PROCEEDS FROM:
Notes Payable to Olsen 5,000.00
Notes Payable, Crossfield 8,000.00
Notes Payable IMA 550,000.00
Preferred Stock 1,465,000.00
Common Stock 4,500.00
Paid-in-Capital 0.00
USED FOR
Note Payable to directors 0.00
Other long term Liabilities 0.00
Net cash used in Financing 2,032,500.00
Net increase (decrease) in cash 26,199.40
SUMMARY
Cash Balance at end of period 26,199.40
Cash balance at beginning of period 0.00
NET INCREASE (DECREASE) IN CASH 26,199.40
</TABLE>
Item 2- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
On March 9, 1998, pursuant to an Agreement for Purchase and Sale of
Specified Business Assets, a Promissory Note, and a Security Agreement all
dated March 9, 1998, Advanced Oxygen Technologies, Inc.(the "Company")
purchased certain tangible and intangible assets (the "Assets")
including goodwill and rights under certain contracts, from Integrated
Marketing Agency, Inc., a California Corporation ("IMA").
The Company used the Assets to generate revenues through database
management, fax broadcasting, sales of Multi-Media CD-ROMs containing
speeches from the database and commissions on the sales of registrations
associated with production of the CD's.
On March 9, the company began renting approximately 6,000 square feet of
industrial office space in Santa Clarita, CA on a month to month basis.
The company hired five (5) additional employees in March.
In March the company entered into lease agreements to lease office
equipment consisting of computers, phones, peripherals, copies, and other
office equipment.
PART II- OTHER INFORMATION
Item 27. Financial Data Source
(B) Article 5
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant
has caused this report to be signed on its behalf by the undersigned,
hereunto duly authorized.
Date: May 14, 1998 /s/ Robert E. Wolfe
Robert E. Wolfe, Chairman of the Board and Chief
Executive Officer and Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 26199
<SECURITIES> 0
<RECEIVABLES> 34287
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 60486
<PP&E> 2000000
<DEPRECIATION> (26264)
<TOTAL-ASSETS> 2034222
<CURRENT-LIABILITIES> 12722
<BONDS> 563001
0
1466770
<COMMON> 289963
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2034222
<SALES> 96825
<TOTAL-REVENUES> 96825
<CGS> 50998
<TOTAL-COSTS> 50998
<OTHER-EXPENSES> 42327
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3499
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 26199
<NET-INCOME> 3499
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
