ADVANCED OXYGEN TECHNOLOGIES INC

Where It Passes

Where It Falls Short

• Efficiency0% pass✗ 11▾

  All 8 investors flag AOXY's efficiency

  Current Ratio0.20

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)2.3%

  ✗Buffett> 10%

  ROIC - WACC-7.7%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)2.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.39 -> 0.39

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.06x -> 0.06x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.20

  ✗Dreman> 1.5

  Return on Invested Capital2.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=1.9%; FY2024: ROIC=2.0%; FY2025: ROIC=1.6%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC1.6% (RR=100% x ROIC=1.6%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/4 years above 12% (latest 1.6%)

  ✗SleepROIC > 12% in a majority of years
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag AOXY's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)-100.0%

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.00 (2008) -> $0.00 (2025)

  ✗DremanPositive over recent years

  EPS CAGR22.0% CAGR over 13 years

  ✓Dreman> 5% annualized

  Positive Net Income Frequency14/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth2.0%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency1/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 33.9% -> 31.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR1.0%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-17.3% over 4 years

  ✗Neff7%-20% annualized
• Valuation15% pass✓ 11✗ 17▾

  11 of 13 flag AOXY's valuation — Graham, Lynch, Greenblatt +8 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.6x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.6%, ROC=2.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)6.2x

  ✓Dreman< 8x

  Price / Book Value per Share0.6x

  ✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)

  Valuation Reasonableness

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.6x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low190% of trailing low ($0.04)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+41.21%; #159/6340 (top 2.5%)

  ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+1.9332; #702/6449 (top 10.9%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share0.60x

  ✓SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+20.1%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1908; #3824/5247 (top 72.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+8.57%; #1931/6202 (top 31.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts21% pass✓ 3✗ 11▾

  Split decision: 10 FAIL · 3 PASS · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (4/7)✗GreenblattRank #1590✓PiotroskiPASS (F-Score 5)✓DremanPASS (6/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability25% pass✓ 13✗ 22▾

  12 of 16 flag AOXY's profitability — Graham, Buffett, Lynch +9 more

  Positive EPS (10 years)5/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-100.0%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)14/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)4.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)31.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)N/A (negative mean EPS)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE21.3%

  ✓Lynch> 15%

  EBIT / Enterprise Value4.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.6%, ROC=2.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.60%

  ✓PiotroskiROA > 0

  ROA Change YoY0.60% -> 0.60% (delta: +0.00%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.83%, ROA=0.60%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue33.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity21.3%

  ✓Dreman> 12%

  Margin of SafetyP/B=0.6x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity1.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency14/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue33.2%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity21.3%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend33.9% (2023) -> 31.7% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 33.9% -> 31.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+41.21%; #159/6340 (top 2.5%)

  ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+21.32%; #737/5226 (top 14.1%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0321; #1995/5884 (top 33.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-17.3% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation models25% pass✓ 1✗ 3▾

  Models split on AOXY at $0.08 — fair values range $0.01–$0.09

  Greenblatt fair value$0.03

  ✗Greenblatt-153.3% margin vs $0.08

  Pabrai fair value$0.01

  ✗Pabrai-660.0% margin vs $0.08

  Akre fair value$0.09

  ✓Akre+15.6% margin vs $0.08

  Templeton fair value$0.06

  ✗Templeton-26.7% margin vs $0.08
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag AOXY's cash flow — Buffett, Lynch, Pabrai +4 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$0.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.83%, ROA=0.60%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)6.2x

  ✓Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency15/18 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage50% pass✓ 9✗ 6▾

  6 of 12 pass — Graham, Buffett, Dreman +3 more object

  LT Debt vs Net Current AssetsLT Debt $0.0M vs NCA $-0.1M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.61, IC: No interest expense

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.26

  ✓Lynch< 0.33

  Cash - Long-term Debt$0.0M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.20

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.26

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.26

  ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDA

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.26

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.2626; #1891/4210 (top 44.9%)

  ✗AsnessTop 30% of eligible cross-section