NEW YORK, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire -- 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)
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.
PHI Group, Inc.
Source: PHI Group, Inc.