Executive Summary
Advanced Oxygen Technologies Inc (AOXY) delivered QQ3 2024 results reflecting stable revenue with strong gross profitability and EBITDA-driven operating performance, but the company faces meaningful liquidity and balance sheet headwinds. Reported revenue of 10.77 million USD remained flat to modestly higher versus prior quarters, with gross profit of 10.77 million and a reported operating income of 5.39 million, yielding an operating margin near 50%. Net income registered 2.52 million, driven by a high gross profit base and favorable non-cash accounting entries, contributing to a robust net margin of approximately 23.4% for the period. YoY net income surged by over 1,600% in the quarter, underscoring a low base effect and potential one-time elements rather than a recurring growth trajectory. QoQ metrics also show modest improvements in revenue and operating earnings, but the QoQ net income declined about 26.6%, signaling earnings quality questions that warrant closer monitoring.
Liquidity and balance sheet dynamics remain a key concern. The current ratio stood at 0.31, indicating near-term liquidity pressure despite positive operating cash flow of approximately 9.99 million USD for the quarter. Cash at period end was 105.2 million USD, with short-term debt of 127.0 million and total liabilities of 345.8 million against equity of roughly 344.8 million, including a substantial accumulated deficit (retained earnings) of -20.76 billion USD in the ledger. Net debt stood at about 21.8 million USD, and cash flow from financing included a debt repayment of 10.0 million USD alongside a currency impact of -2.76 million USD, contributing to a negative net change in cash for the period. These indicators point to a capital structure that is relatively leveraged for a services-oriented real estate vehicle and will require monitoring of debt maturity, liquidity cushions, and potential asset-light expansion opportunities.
Management commentary from the QQ3 earnings call (where available in the provided data) was not included. As a result, the analysis cannot incorporate direct quotes or themes from an earnings transcript. The absence of transcript data limits the ability to extract management guidance or qualitative shifts in strategy for QQ3 2024. The forward-looking section therefore relies on quantitative signals and industry context to frame the outlook.
Key Performance Indicators
QoQ: 11.48% | YoY:125.71%
QoQ: -26.62% | YoY:1 614.29%
Key Insights
Revenue: 10.77 million USD (YoY +3.09%, QoQ +2.56%).
Gross Profit: 10.77 million USD; Gross Margin: 100.0% (indicative of revenue being the gross profit base in the data).
Operating Income: 5.39 million USD; Operating Margin: ~50.0%.
EBITDA: 5.39 million USD; EBITDARatio: 0.5006; EBITDA is closely aligned with operating income after accounting for depreciation/amortization.
Net Income: 2.52 million USD; Net Margin: ~23.4%.
Earnings Per Share (Diluted): 0.0008 USD; Weighted Avg Shares (diluted): ...
Financial Highlights
Revenue: 10.77 million USD (YoY +3.09%, QoQ +2.56%).
Gross Profit: 10.77 million USD; Gross Margin: 100.0% (indicative of revenue being the gross profit base in the data).
Operating Income: 5.39 million USD; Operating Margin: ~50.0%.
EBITDA: 5.39 million USD; EBITDARatio: 0.5006; EBITDA is closely aligned with operating income after accounting for depreciation/amortization.
Net Income: 2.52 million USD; Net Margin: ~23.4%.
Earnings Per Share (Diluted): 0.0008 USD; Weighted Avg Shares (diluted): ~3.302 million.
Cash Flow: Net cash provided by operating activities 9.99 million USD; Free cash flow equal to operating cash flow in the period.
Cash Position and Leverage: Cash and equivalents 105.2 million USD; Total debt 127.0 million USD; Net debt ~21.8 million USD; Current ratio 0.31; Quick ratio 0.31; Balance sheet shows a large accumulated deficit (Retained Earnings) of -20.76 billion USD relative to equity (~344.8 million USD).
Liquidity/Capitalization: Total assets ~690.5 million USD; Total liabilities ~345.8 million USD; Debt-to-equity ~0.37; Price-to-Sales ~48.92x; Price-to-Book ~1.53x; Enterprise Value ~101.8x.
Notes: The 100% gross margin and flat revenue imply a business model with relatively low direct COGS in the reported data, but the accounting details (e.g., negative depreciation values) should be reconciled with standard GAAP measures in the official 10-Q for clarity on non-operating items and unusual items.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.77K |
3.09% |
2.56% |
| Gross Profit |
10.77K |
3.09% |
2.56% |
| Operating Income |
5.39K |
125.71% |
11.48% |
| Net Income |
2.52K |
1 614.29% |
-26.62% |
| EPS |
0.00 |
N/A |
-20.00% |
Key Financial Ratios
operatingProfitMargin
50%
operatingCashFlowPerShare
$0
Management Commentary
No earnings call transcript data was provided within the given material. Consequently, there are no management quotes or thematic highlights to extract. If a transcript becomes available, we will group insights by themes (strategy, operations, market conditions) and relate them to the quantified QQ3 2024 results.
Forward Guidance
No explicit forward guidance was disclosed in the provided inputs. Given the current balance sheet stresses (low liquidity ratios, significant accumulated deficit, and a notable level of short-term debt) alongside stable quarterly revenue, the near-term guidance would plausibly emphasize liquidity management, debt refinancing, and portfolio optimization. From a qualitative perspective, investors should monitor: (1) occupancy/lease renewal activity and rent escalations in the Danish asset, (2) performance of ancillary revenue streams (cargo straps distribution and fuel-station parcel), (3) capex trajectory and any strategic divestitures or acquisitions, and (4) refinancing risk and currency exposure if any cross-border obligations exist. Based on QQ3 metrics, achievability of aggressive growth targets appears contingent on improving liquidity and sustaining cash flow generation beyond the current quarter.