Commitments and Contingencies

9 Months Ended

Mar. 31, 2016

Notes to Financial Statements

6. COMMITMENTS AND CONTINGENCIES

Commitments:

The Company has issued a promissory note ("Note") for $650,000, payable to the Borkwood Development Ltd, a previous shareholder of the Company ("Seller"), payable and amortized monthly and carrying an interest at 5% per year. The Company has the right to prepay the note at any time with a notice of 14 days. To secure the payment of principal and interest the Sellers will receive a perfect lien and security interest in the Shares in the company ANV until the note with accrued interest is paid in full., and, 2) In the case that the Note has not been repaid within 12 months from the day of closing the Sellers have the right to convert the debt to common stock of Advanced Oxygen Technologies, Inc. in an amount of non-diluted shares calculated on the conversion Date, equal to the lesser of : a) Six hundred and Fifty thousand (650,000) or the Purchase Price minus the principal payments made by the buyer, whichever is greater, divided by the previous ten day closing price of AOXY as quoted on the national exchange, or b) Fifteen million shares, whichever is lesser. The Note has been extended until July 1, 2016 and interest waived through the period ending June 30, 2015.

The Company's wholly owned subsidiary Anton Nielsen Vojens, ApS has a note payable with a bank. The original amount of the note was kr 750,000 Danish Krone (kr) ("Note A"). The note is secured by the revenues of the lease with Statoil, with a 7.00% interest rate and 3 years left on the term. The balance on the note as of March 31, 2016 and June 30, 2015 was $22,834 and $27,543 respectively and the yearly payments are fixed at kr 75,000. The value of the note reflect the currency adjustments. The table below summarizes the company's commitments going forward.

The Company's wholly owned subsidiary Anton Nielsen Vojens, ApS has a note payable with a bank ("Note B"). The original amount of Note B was kr 1,132,000 Danish Krone (kr). Note B is secured by the subsidiary's real estate, with a 2.00% interest rate and 9 years left on the term. The balance on the note as of March 31, 2016 and June 30, 2015 was $132,701 and $140,664 respectively.

The value of the note reflect the currency adjustments. The table below summarizes the company's commitments going forward.

Advanced Oxygen Technologies, Inc.
Commitments and Contingencies for the year Ending June 30, 2016

Year		Bank Note "A" Amount in DKK		Bank Note "A" Amount converted to $US Dollars at currency exchange rate at June 30, 2015		Bank Note "B" Amount in DKK		Bank Note "B" Amount converted to $US Dollars at currency exchange rate at June 30, 2015		Borkwood Note Amount in $US Dollars		Total *
2016		DKK 75,000		$	11,213	DKK 149,797		$	22,397	$	127,029	$	160,639
2017		DKK 75,000		$	11,213	DKK 149,797		$	22,397			$	33,610
2018			-		-	DKK 149,797		$	22,397			$	33,610
2019			-		-	DKK 149,797		$	22,397			$	33,610
2020			-		-	DKK 149,797		$	22,397			$	33,610
2021			-		-	DKK 149,797		$	22,397			$	33,610
2022			-		-	DKK 149,797		$	22,397			$	33,610
2023			-		-	DKK 149,797		$	22,397			$	33,610
2024			-		-	DKK 149,797		$	22,397			$	33,610
	-		-		-		-		-		-	$	429,519

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* The amounts stated in this table reflect the Company's commitments in the currencies that those commitments were made and the total column is an estimate of what the US dollar amount would be if the currency rates did not change going forward.