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 March 31, 2021 and March 31, 2020 were $10,404 and $9,326 respectively, and for the nine-month period ending March 31, 2021 and March 31, 2020 were $31,017 and $27,936 respectively. The increase was attributable to lease revenues.

General and administrative expenses: G&A expenses for the three-month period ending March 31, 2021 and March 31, 2020 were $3,269 and $498 respectively, and for the nine-month period ending March 31, 2021 and March 31, 2020 were $7,591 and $7,671 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 March 31, 2021 and March 31, 2020 were $0 and $0 respectively, and for the nine-month period ending March 31, 2021 and March 31, 2020 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 March 31, 2021 and March 31, 2020 were $3,025, and $2,747 respectively, and for the nine-month period ending March 31, 2021 and March 31, 2020 were $13,075 and $11,247 respectively. The expenses were attributable to the ordinary accounting fees for 2021 and 2020.

Interest expense: Interest expense for the three-month period ending March 31, 2021 and March 31, 2020 was $(652) and $(792) respectively, and for the nine-month period ending March 31, 2021 and March 31, 2020 were $(2,087) and $(2,547) respectively. Interest expenses for 2021 are lower primarily due to the currency fluctuations and the reduction of debt.

Net Income (loss): Net income(loss) attributed to common stockholders was $1,378 or $0.00 per share for the three-month period ending March 31, 2021 as compared to $4,176 or $0.00 per share for March 31, 2020. Net loss attributed to common stockholders was $2,104 or $0.00 per share for the nine-month period ending March 31, 2021 as compared to $(111,187) or $(0.04) per share for March 31, 2020. The fluctuations are mainly attributable to officer compensation, general & administrative expenses and currency fluctuations.

Liquidity and capital resources: At March 31, 2021 and June 30, 2020, the Company had cash and cash equivalents of $45,425 and $43,603 respectively. At March 31, 2021 and June 30, 2020, the Company had a working capital deficit of $270,853 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 nine-month period ending March 31, 2021 and March 31, 2020 was $26,842 and $18,079, respectively. The increase was primarily due to the increase in taxes payable and the increase in expenses paid on behalf on a related party.

Net cash used-in financing activities for nine-month period ending March 31, 2021 and March 31, 2020 was $(26,597) and $(23,887) 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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