PHI Group Reports
Operating Results for the Second Quarter Ended December 31,
2017
Expecting stronger
consolidated revenues and further
strengthening of balance sheet for the remaining
quarters of FY 2017 ending June 30,
2018
New York, NY -- February
20, 2018 -- InvestorsHub
NewsWire -- PHI Group,
Inc., (www.phiglobal.com) (OTCQB:
PHIL), a
company
focused on mergers and
acquisitions and
investments in natural resources,
energy, agriculture
and
special
situations, today
announced
operating
results for its second
quarter ended December
31, 2017.
The
Company had $432,000 in revenue for the quarter ended December 31,
2017, an increase of $392,000 or
980%
as
compared to $40,000 in revenue for the quarter ended December 31,
2016. The reason for the
increase between the two periods was due to sales of gold
concentrates by
American
Pacific Resources, Inc., a subsidiary of
the
Company's, during the current
period versus only
revenue
from consulting services during the corresponding quarter last
year.
Total
operating expenses were $135,172 and $112,916 for the
three months ended December 31, 2017, and 2016, respectively. The
increase of $22,255 on total operating expenses between the two
periods was mainly due to increases in R&D,
travel expenses and advertising, offset by decreases in contract
labor, filings and office supplies.
Income
from operations for the quarter ended December 31, 2017 was
$296,828, as compared to loss from operations of $72,916 for the
previous corresponding period ended December 31, 2016. A
variance of $369,745
in income and loss from
operations between the two
quarters was mainly due to the
net changes in revenues and total operating expenses between the
two periods.
Net other expenses
were $732,062 for the three months ended December 31, 2017,
as
compared to net other expenses of $204,265 for the three months
ended December 31, 2016. The increase in other expenses of $527,797
was mainly due to an increase of $246,418 in net interest expenses,
an increase of $390,137 due to reserves for
Preferred Stock dividends, offset by a
decrease of $122,508 from settlement of debts and a decrease in
discounts on convertible notes of $18,307 between the two
periods. Interest expenses
were $295,045 and $48,627 for the three months ended December 31,
2017 and 2016, respectively.
Net
loss for the three months ended December 31, 2017 was $435,234, as
compared to net loss of $204,265 for the same period in 2016, which
is equivalent to ($0.01) per share for the current period and
($0.03) per share for the corresponding period ended December 31,
2016, based on the weighted average number of basic and diluted
shares outstanding at the end of each corresponding
period.
As of
December 31, 2017, the Company's total assets were $26,056,103 and
total stockholders' equity was $12,383,887, as compared to total
assets of $674,064 and total stockholders' deficit of $(7,513,481)
as of June 30, 2017.
During the quarter
ended December 31, 2017, American Pacific
Resources acquired a fifty-one percent
interest in twenty-one mining claims over an area of approximately
400 acres in Granite Mining
District, Grant County, Oregon. In exchange for the
properties, the Company issued
4,000,000 shares of Class A Series II Preferred Stock at the price
of $5.00 per share and paid the seller
$5,000,000 in a combination of cash and demand promissory
note. The Class A Series II
Preferred Stock can be converted either
into
common
stock of the Company at 25% discount after October 2, 2019
or into
common
stock of American Pacific Resources at 50% discount any time after
American Pacific Resources has become a fully reporting publicly
traded company with the U.S. Securities and Exchange Commission for
at least three months. The Company
will file
an amended 8-K to report the full features of Class A Series II
Preferred Stock and the registration of the
mining
claims under American Pacific Resources.
Henry Fahman,
Chairman and CEO of PHI Group, stated:" We are
encouraged with the
progress of the Company during the past quarter and delighted at
the prospect of stronger
revenues
going forward. We are pleased to
have closed the acquisition of the gold mining properties and
expect to close one or more acquisitions for FY 2017 ending June
30, 2018, which should add significant consolidated revenues and
further improve our balance sheet. On another note,
we will continue to
manage and pay off existing
convertible promissory
notes
with cash from earnings
and/or
institutional
financing at reasonable,
lower costs of capital
before these notes become eligible for
conversion." Henry added: "In
addition, the Company has actively developed strategies for
applying blockchain technology and crypto currencies to its
expansion plan as well as
advance a number of
special
initiatives that may bring about disruptive growth for PHI Group in
the near future."
About PHI Group
PHI
Group (www.phiglobal.com)
primarily
focuses on mergers
and acquisitions and
invests in select
industries and
special situations that may substantially enhance
shareholder
value. PHI Group also
provides M&A
and consulting
services
through its wholly owned subsidiary,
PHI
Capital Holdings, Inc. (www.phicapitalholdings.com)
Safe Harbor
This
news release contains "forward-looking
statements"
pursuant
to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. "Forward-looking
statements" describe future expectations, plans, results, or
strategies and are generally preceded by words such as "may",
"future", "plan" or "planned", "will" or "should", "expected,"
"anticipates", "draft", "eventually" or
"projected",
which are
subject to a multitude of risks and uncertainties that could cause
future circumstances, events, or results to differ materially from
those projected in the
forward-looking statements as a
result of various factors.
Contact:
Henry
Fahman
PHI Group,
Inc.
henry@phiglobal.com
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