EX-31

	
		
		Officers Certification
	

	
		

EX-32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Oxygen Technologies, Inc. (the “Company”) on Form 10-Q for the 3 month period ended December 31, 2016 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert Wolfe, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Executive Officer

Date: February 3, 2017

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Oxygen Technologies, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2016 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert Wolfe, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Financial Officer

Date: February 3, 2017

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Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2016	Feb. 03, 2017
Document And Entity Information
Entity Registrant Name	ADVANCED OXYGEN TECHNOLOGIES INC
Entity Central Index Key	0000352991
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,292,945

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Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Jun. 30, 2016
CURRENT ASSETS
Cash	$ 45,458	$ 46,170
Property Tax Receivable	1,129	1,173
Total Current Assets	46,587	47,343
FIXED ASSETS
Land	572,917	595,280
TOTAL ASSETS	619,504	642,623
CURRENT LIABILITIES
Accounts Payable	1,296	2,599
Taxes payable	21,976	24,028
Note Payable, Current Portion	149,992	150,887
Advances From a Related Party	92,430	78,262
Total current liabilities	265,694	255,776
Notes Payable	105,590	122,609
Total Long Term Liabilities	105,590	122,609
Total Liabilities	371,284	378,385
STOCKHOLDERS' EQUITY-
Common stock, par value $0.01; At December 31, 2016 and June 30, 2016, authorized 60,000,000 shares; issued and outstanding 2,292,945 shares.	22,929	22,929
Additional paid-in capital	20,953,991	20,953,991
Other Comprehensive Income	15,446	27,085
Accumulated deficit	(20,744,196)	(20,739,817)
TOTAL STOCKHOLDERS EQUITY	248,220	264,238
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	619,504	642,623
Series 2 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Convertible preferred stock	50	50
Series 3 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Convertible preferred stock
Series 5 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Convertible preferred stock

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Jun. 30, 2016
STOCKHOLDERS' EQUITY-
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	60,000,000	60,000,000
Common Stock, shares issued	2,292,945	2,292,945
Common Stock, shares outstanding	2,292,945	2,292,945
Series 2 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	5,000	5,000
Preferred Stock, shares outstanding	5,000	5,000
Series 3 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	1,670,000	1,670,000
Preferred Stock, shares issued	1,670,000	1,670,000
Preferred Stock, shares outstanding	1,670,000	1,670,000
Series 5 Convertible preferred stock [Member]
STOCKHOLDERS' EQUITY-
Preferred Stock, shares issued	1	1

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Condensed Consolidated Statements of Operations And Other Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Condensed Consolidated Statements Of Operations And Other Comprehensive Income Loss
Sales	$ 8,837	$ 9,057	$ 17,986	$ 18,115
Costs and Expenses
General and Administrative	1,390	1,008	3,627	1,231
Professional Expenses	8,023	6,143	12,023	6,143
Total Operating Expenses	9,413	7,151	15,650	7,374
Income (loss) from Operations	(576)	1,906	2,336	10,741
Other Income (Expenses)
Interest expense, net	(1,663)	(2,128)	(3,476)	(4,332)
Income Before Income Taxes	(2,239)	(222)	(1,140)	6,409
Provision for Income Taxes	3,239		3,239
Net Income	$ (5,478)	$ (222)	$ (4,379)	$ 6,409
Net Income (Loss) Per Share: Basic	$ (0.0024)	$ (0.0001)	$ (0.0019)	$ 0.0028
Net Income (Loss) Per Share: Diluted	$ (0.0024)	$ (0.0001)	$ (0.0019)	$ 0.0028
Weighted Average Shares Outstanding Basic	2,292,945	2,292,945	2,292,945	2,292,945
Weighted Average Shares Outstanding Diluted	2,292,945	2,292,945	2,292,945	2,302,945
Other Income (Loss)
Translation Adjustments	$ (28,853)	$ 3,534	$ (11,639)	$ 18,033
Total Comprehensive Income (Loss)	$ (34,331)	$ 3,312	$ (16,018)	$ 24,442

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Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income	$ (4,379)	$ 6,409
Changes in operating assets and liabilities
Accounts Payable	(1,304)	4,129
Taxes Payable	4,798	(23,272)
Net cash provided by (used in) operating activities	(885)	(12,734)
Proceeds From:
Advances from related parties	14,648	15,669
Proceeds used for:
Long Term Debt	(12,413)	(12,550)
Net cash provided by financing activities	2,235	3,119
Effect of exchange rate changes on cash	(2,062)
Net Decrease in Cash	(712)	(9,615)
Cash at beginning of the period	46,170	68,260
Cash at end of period	45,458	58,645
Non Cash Investing and Financing Activities
Cash paid for Interest	$ 3,476	$ 4,332

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Organization and Line Of Business

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

1. ORGANIZATION AND LINE OF BUSINESS

Organization and Basis of Presentation:

The accompanying unaudited interim condensed consolidated financial statements of Advanced Oxygen Technologies, Inc. (“Group” or the “Company”) have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for annual audited financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

The results of operations for the six months ended December 31, 2016 are not necessarily indicative of the results to be expected for the year ending June 30, 2017. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended June 30, 2016 and 2015 included in Form 10-K filed with the SEC.

Lines of Business:

The Company, through its wholly owned subsidiary Anton Nielsen Vojens ApS ("ANV")owns income producing commercial real estate leased until 2026. The real estate consists solely of the land with no buildings or improvements (“Land”). All improvements on the Land are those of the tenant.

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Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue recognition of rental income:

Revenues are recognized during the period in which the rental payment is received. The Company applies the provisions of FASB Accounting Standards Codification ('ASC') 605-10. Revenue Recognition in Financial Statements ASC 605-10, provides guidance on recognition, presentation, and disclosure of revenues in financial statements filed with the SEC.

The Company's source of revenue is from a commercial property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026.

Property Plant and Equipment:

Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses.

Impairment of Real Estate Investments:

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through its undiscounted future cash flows and the eventual disposition of the investment. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its real estate investments, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its real estate investments.

Foreign Currency Translation:

Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders' equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement.

Income Taxes:

The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated.

Net Earnings per Share:

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of December 31, 2016 and June 30, 2016 there were 10,000 and 10,000, respectively potential dilutive shares and because of the net loss, the effect of these potential common shares is anti-dilutive.

Cash and Cash Equivalents:

For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at December 31, 2016 did not exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on such amounts.

Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.

Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to major credit risk consist principally of a single subsidiary of Anton Nielsen Vojens ApS.

Reclassification:

Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation.

Recently Issued Accounting Standards:

In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements.

Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

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Major Customer

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

3. MAJOR CUSTOMER

The Company's subsidiary, Anton Nielsen Vojens, ApS has sales to major customers who were non related parties. For the period ending December 31, 2016, and December 31, 2015 the major customer concentrations were as follows:

	Percent of Sales for the Period ending December 31,
Customer	2016			2015
StatOil A/S		100	%		100	%
-		-			-
Total Sales from Major Customers		100	%		100	%

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Land

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

4. LAND

The Land owned by the Company's wholly owned subsidiary constitutes the largest asset of the Company. As of December 31, 2016 the difference in the Land's carrying value as recorded on the balance sheet amounting to $(22,363) is solely due to the currency translation difference. The carrying value of the Land of the Company was as follows:

	Carrying Value of Land at
	December 31, 2016		June 30, 2016
US Dollars	$	572,917	$	595,280

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Related Party Transactions

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

5. RELATED PARTY TRANSACTIONS

Crossfields, Inc., a company that the CEO, Robert Wolfe is an officer and director, has made advances to the Company which are not collateralized, non-interest bearing, and payable upon demand, however, the Company did not expect to make payment within one year. As of December 31, 2016, the amount due to Crossfields was $92,430. Crossfields advanced an additional $14,168 during the six months ended December 31, 2016 to meet expenses.

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Notes Payable

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

6. NOTES PAYABLE

The Company 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, 2017 and interest waived through the period ending December 31, 2016. The balance on the note as of December 31, 2016 and June 30, 2016 was $127,029.

The Company has a note payable with a bank. The original amount of the note was kr 800,000 Danish Krone (kr) ("Note A"). The note is secured by the revenues of the lease with Statoil, with a 7.00% interest rate and 1.5 years left on the term. The balance on the note as of December 31, 2016 was $14,625. The Company made principal payments of $4,727 and interest payments of $678. The value of the note reflect the currency adjustments. The paragraph below summarizes the company's commitments going forward.

The Company 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 7 years left on the term. The balance on the note as of December 31, 2016 was $113,928. During the period ended December 31, 2016, the Company paid $7,686 in principal payments and $2,798 in interest payments.

The Company's debt obligations at December 31, 2016 and June 30, 2016 are:

	December 31,			June 30,
	2016			2016
Bank Loans	$	128,552		$	146,467
Borkwood Development Ltd		127,029			127,029
Total Debt		255,581			273,496
Less Current Portion of Debt		(149,992	)		(150,887	)
Long-Term portion of Debt	$	105,590		$	122,609

The Company has minimum yearly bank payments of $33,610 for 1.5 years, and $22,397 thereafter for another 5.2 years.

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

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Shareholders' Equity

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

7. STOCKHOLDERS' EQUITY

Common Stock:

Pursuant to a Certificate of Amendment to our Certificate of Incorporation filed with the State of Delaware and effective as of December 8, 2014, the Company (effected a reverse stock split of all the outstanding shares of our common stock at an exchange ratio of one for twenty (1:20) and changed the number our authorized shares of common stock, par value $0.01 per share, from 90,000,000 to 60,000,000 while maintaining the number of authorized shares of preferred stock, par value $0.01 per share, at 10,000,000. As a result, the 45,853,585 shares of common stock outstanding at December 7, 2014 had been reduced to 2,292,945 shares of common stock (taking into account the rounding up of fractional share interests).

 Preferred Stock:

The Company is authorized to issue 10,000,000 shares of $0.01 par value preferred stock. The Company may issue any class of preferred shares in series. The board of directors has the authority to establish and designate series and to fix the number of shares included in each such series.

Series 2 Convertible Preferred Stock:

Each Series 2 preferred share is convertible into two shares of common stock at the option of the holder. Each Series 2 preferred share also includes one warrant to purchase two common shares for $5.00. The warrants are exercisable over a three-year period. In the event of the liquidation of the Company, holders of Series 2 preferred stock would be entitled to receive $5.00 per share, plus any unpaid dividends declared on the Series 2 preferred stock from the funds remaining after the Company's creditors, including directors, have been paid. There have been no dividends declared. During November 1997, 172,000 shares of Series 2 preferred stock were converted into 344,000 shares of the Company's common stock. As of December 31, 2016, there were 5,000 shares issued, which are convertible into 2 common shares. There are no warrants outstanding that have been issued in connection with the preferred shares.

Series 3 Convertible Preferred Stock:

Each share automatically converts on March 2, 2000 into either (a) one (1) share of the Company's common stock if the average closing price of the common stock during the ten trading days immediately prior to March 1, 2000 is equal to or greater than sixty-six cents ($0.66) per share, or (b) one and one-half (1 1/2) shares of common stock if the average closing price of the common stock during the ten trading days immediately prior March 1, 2000 is less than sixty-six cents ($0.66) per share.

Series 5 Convertible Preferred Stock:

The shares are collectively convertible to common stock of the Company on March 5, 2004, in an amount equal to the greater of a.)290,000 shares divided by the ten day closing price, prior to the date of acquisition of IPS, of the Company's common stock as quoted on the national exchange and not to exceed twenty million shares, or b.) six million shares.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies Policies

Revenue Recognition of rental income

Revenues are recognized during the period in which the rental payment is received. The Company applies the provisions of FASB Accounting Standards Codification ('ASC') 605-10. Revenue Recognition in Financial Statements ASC 605-10, provides guidance on recognition, presentation, and disclosure of revenues in financial statements filed with the SEC.

The Company's source of revenue is from a commercial property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026.

Property Plant and Equipment

Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses.

Impairment of Real Estate Investments

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through its undiscounted future cash flows and the eventual disposition of the investment. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its real estate investments, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its real estate investments.

Foreign currency translation

Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders' equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement.

Income Taxes

The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated.

Net Earnings per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of December 31, 2016 and June 30, 2016 there were 10,000 and 10,000, respectively potential dilutive shares and because of the net loss, the effect of these potential common shares is anti-dilutive.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at December 31, 2016 did not exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on such amounts.

Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to major credit risk consist principally of a single subsidiary of Anton Nielsen Vojens ApS.

Reclassification

Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements.

Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

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Major Customer (Tables)

6 Months Ended

Dec. 31, 2016

Major Customer Tables

Schedules of major customer concentrations

For the period ending December 31, 2016, and December 31, 2015 the major customer concentrations were as follows:

	Percent of Sales for the Period ending December 31,
Customer	2016			2015
StatOil A/S		100	%		100	%
-		-			-
Total Sales from Major Customers		100	%		100	%

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Land (Tables)

6 Months Ended

Dec. 31, 2016

Land Tables

Schedule of value of land

The carrying value of the Land of the Company was as follows:

	Carrying Value of Land at
	December 31, 2016		June 30, 2016
US Dollars	$	572,917	$	595,280

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Notes Payable (Tables)

6 Months Ended

Dec. 31, 2016

Notes Payable Tables

Summary of debt obligations

The Company's debt obligations at December 31, 2016 and June 30, 2016 are:

	December 31,			June 30,
	2016			2016
Bank Loans	$	128,552		$	146,467
Borkwood Development Ltd		127,029			127,029
Total Debt		255,581			273,496
Less Current Portion of Debt		(149,992	)		(150,887	)
Long-Term portion of Debt	$	105,590		$	122,609

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Summary of Significant Accounting Policies (Details Narrative) - shares	Dec. 31, 2016	Jun. 30, 2016
Summary Of Significant Accounting Policies Details Narrative
Potential dilutive shares	10,000	10,000

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Major Customer (Details)	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total sales from major customers	100.00%	100.00%
StatOil A/S [Member] | Sales Revenue, Net [Member]
Total sales from major customers	100.00%	100.00%

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Land (Details) - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Land Details
US Dollars	$ 572,917	$ 595,280

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Land (Details Narrative)	6 Months Ended
	Dec. 31, 2016 USD ($)
Land Details Narrative
Increase in carrying value of land	$ (22,363)

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Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Related Party Transactions Details Narrative
Advances From a Related Party	$ 92,430	$ 78,262
Crossfields advance	$ 14,168

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Notes Payable (Details) - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Notes Payable Details
Bank Loans	$ 128,552	$ 146,467
Borkwood Development Ltd	127,029	127,029
Total Debt	255,581	273,496
Less Current Portion of Debt	149,992	150,887
Long-Term portion of Debt	$ 105,590	$ 122,609

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Notes Payable (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Minimum period	1 year 6 months
Thereafter	5 years 2 months 12 days
Borkwood Development Ltd [Member]
Notes payable	$ 650,000
Interest on note payable	5.00%
Balance of notes payable	$ 127,029	$ 127,029
Note A [Member]
Notes payable	$ 800,000
Interest on note payable	7.00%
Principal payments	$ 4,727
Interest payments	678
Balance of notes payable	14,625
Note B [Member]
Notes payable	$ 1,132,000
Interest on note payable	2.00%
Principal payments	$ 7,686
Interest payments	2,798
Balance of notes payable	113,928
Minimum [Member]
Yearly bank payments	33,610
Thereafter [Member]
Yearly bank payments	$ 22,397

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Shareholders' Equity (Details Narrative) - $ / shares

1 Months Ended

6 Months Ended

Nov. 30, 1997

Dec. 31, 2016

Jun. 30, 2016

Dec. 07, 2014

Common Stock, par value

$ 0.01

$ 0.01

Common Stock, shares authorized

60,000,000

60,000,000

Common Stock, shares outstanding

2,292,945

2,292,945

Series 2 Convertible preferred stock [Member]

Preferred Stock, shares issued

5,000

5,000

Convertible common stock

2

Preferred Stock, par value

$ 0.01

$ 0.01

Preferred Stock, shares authorized

10,000,000

10,000,000

Purchase price of warrant

$ 5.00

Discription of warrants exercisable

3 years

Preferred stock, shares

172,000

Converted common stock, shares

344,000

Common Stock

Common stock exchange ratio

one for twenty (1:20)

Common Stock, par value

$ 0.01

Common Stock, shares authorized

10,000,000

Common Stock, shares outstanding

45,853,585

Reduction of common stock, shares

2,292,945

Common Stock | Minimum [Member]

Common Stock, shares authorized

60,000,000

Common Stock | Maximum [Member]

Common Stock, shares authorized

90,000,000

Preferred Stock [Member]

Preferred Stock, par value

$ 0.01

Preferred Stock, shares authorized

10,000,000

Convertible Preferred Stock, Series 3

Closing price of the common stock

equal to or greater than sixty-six cents ($0.66) per share, or (b) one and one-half (1 1/2) shares of common stock if the average closing price of the common stock during the ten trading days immediately prior March 1, 2000 is less than sixty-six cents ($0.66) per share.

Series Five Convertible Preferred Stock [Member]

Closing price of the common stock

equal to the greater of a.)290,000 shares divided by the ten day closing price, prior to the date of acquisition of IPS, of the Company's common stock as quoted on the national exchange and not to exceed twenty million shares, or b.) six million shares.