PHI GROUP INC - Annual Report: 2019 (Form 10-K)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: JUNE 30, 2019

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________________________to _____________________________________

Commission File Number: 2-78335-NY

PHI GROUP, INC.

(Exact name of

registrant as specified in its charter)

Wyoming	001-38255-NY	90-0114535
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

2323 Main Street, Irvine, CA		92614
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 702-475-5430

5348 Vegas Drive # 237, Las Vegas, NV 89108

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common Stock		PHIL		OTC Markets

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities

Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the

Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes [ ] No [X]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [ ] No [X]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (ss229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, indefinitive proxy or information statement incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]

Non-accelerated filer [ ]	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed fiscal quarter:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of March 09, 2021, there were 20,015,531,227 shares of the registrant’s $0.001 par value Common Stock, 10,000,000 shares of Class A Series II Preferred Stock and 180,000 shares of Class B Series I Preferred Stock issued and outstanding.

TABLE OF CONTENTS

PART I

Item 1.	Business Overview	3
Item 1A.	Risk Factors	6
Item 1B	Unresolved Staff Comments	9
Item 2.	Description of Properties	9
Item 3.	Legal Proceedings	9
Item 4.	Submission of Matters to a Vote of Security Holders	9

PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	9
Item 6.	Selected Financial Data	10
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 8.	Financial Statements and Supplementary Data	15
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	16
Item 9A.	Controls and Procedures	16
Item 9B.	Other Information	18

PART III

Item 10.	Directors and Executive Officers of the Registrant	18
Item 11.	Executive Compensation	19
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	20
Item 13.	Certain Relationships and Related Transactions	20
Item 14.	Principal Accountant Fees and Services	20

PART IV

Item15.	Exhibits and Financial Statement Schedules	21

	SIGNATURES	24

CERTIFICATIONS

The statements contained in this annual report that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business, which can be identified by the use of forward-looking terminology, such as “estimates,” “projects,” “plans,” “believes,” “expects,” “anticipates,” “intends,” or the negative thereof or other variations thereon, or by discussions of strategy that involve risks and uncertainties. All forward-looking statements are based largely on current expectations and beliefs concerning future events that are subject to substantial risks and uncertainties. Actual results may differ materially from the results suggested herein. Factors that may cause or contribute to such differences include, but are not limited to, the company’s ability to develop and successfully market the products and services described in this report (and the costs associated therewith); their acceptance in the marketplace; technical difficulties or errors in the products and/or services; the company’s customer and active prospect base containing a substantially lower number of interested customers than the company anticipates; the failure to consummate the pending acquisitions, joint ventures and/or strategic alliances at all (or on a timely basis) due to various reasons; difficulty integrating or managing multiple companies from technology, operational and marketing aspects; the success (and cost) of new marketing strategies as a result of mergers and acquisitions; unfavorable critical reviews; increased competition (including product and price competition); entrance of new competitors into the market; timing and significance of additional new product and service introductions by the company and its competitors; general economic and market factors, including changes in securities and financial markets; technology obsolescence, the adequacy of working capital, cash flows and available financing to fund the company’s business model and the proposed acquisitions or investments ; and other risks and uncertainties indicated throughout this report and from time to time in the company’s releases and filings including without limitation filings with the Securities and Exchange Commission. As used in this report, the terms “we,” “us,” “our,” the “company” and “PHI” mean PHI Group, Inc. and the term “common stock” means PHI Group, Inc.’s common stock, $.001 par value per share (unless context indicates a different meaning).

PART I

ITEM 1. BUSINESS OVERVIEW

INTRODUCTION

PHI Group, Inc. (the “Company” or “PHI”) (www.phiglobal.com) is primarily engaged in the operations of PHILUX Global Funds, SCA, SICAV-RAIF, a “Reserved Alternative Investment Fund” (“RAIF”) under the laws of Luxembourg, and the development of the Asia Diamond Exchange in Vietnam. Besides, the Company provides corporate finance services, including merger and acquisition advisory and consulting services for client companies through our wholly owned subsidiary PHILUX Capital Advisors, Inc. (formerly PHI Capital Holdings, Inc.) (www.philuxcap.com) and invests in selective industries as well as special situations that may potentially create significant long-term value for shareholders. PHILUX Global Funds will include a number of sub-funds for investment in agriculture, renewable energy, real estate, infrastructure, and the Asia Diamond Exchange in Vietnam.

BACKGROUND

Originally incorporated on June 8, 1982 as JR Consulting, Inc., a Nevada corporation, the Company applied for a Certificate of Domestication and filed Articles of Domestication to become a Wyoming corporation on September 20, 2017. In the beginning, the Company was foremost engaged in mergers and acquisitions and had an operating subsidiary, Diva Entertainment, Inc., which operated two modeling agencies, one in New York and one in California. In January 2000, the Company changed its name to Providential Securities, Inc., a Nevada corporation, following a business combination with Providential Securities, Inc., a California-based financial services company. The Company then changed its name to Providential Holdings, Inc. in February 2000. In October 2000, Providential Securities withdrew its securities brokerage membership and ceased its financial services business. Subsequently, in April 2009, the Company changed its name to PHI Group, Inc. From October 2000 to October 2011, the Company and its subsidiaries were engaged in mergers and acquisitions advisory and consulting services, real estate and hospitality development, mining, oil and gas, telecommunications, technology, healthcare, private equity, and special situations. In October 2011, the Company discontinued the operations of Providential Vietnam Ltd., Philand Ranch Limited, a United Kingdom corporation (together with its subsidiaries Philand Ranch - Singapore, Philand Corporation - US, and Philand Vietnam Ltd. - Vietnam), PHI Gold Corporation (formerly PHI Mining Corporation, a Nevada corporation), and PHI Energy Corporation (a Nevada corporation), and mainly focused on acquisition and development opportunities in energy and natural resource businesses.

The Company is currently focused on operating PHILUX Global Funds, SCA, SICAV-RAIF by setting up a number of sub-funds for investment in real estate, renewable energy, infrastructure, agriculture and healthcare as well as developing and establishing the Asia Diamond Exchange in Vietnam. In addition, PHILUX Capital Advisors, Inc. (formerly Capital Holdings, Inc.), a wholly owned subsidiary of the Company, continues to provide corporate and project finance services, including merger and acquisition (M&A) advisory and consulting services for other client companies. No assurances can be made that the Company will be successful in achieving its plans.

BUSINESS STRATEGY

PHI’s strategy is to:

1. Identify, build, acquire, commit and deploy valuable resources with distinctive competitive advantages;

2. Identify, evaluate, acquire, participate and compete in attractive businesses that have large, growing market potential;

3. Build an attractive investment that includes points of exit for investors through capital appreciation or spin-offs of business units.

SUBSIDIARIES:

As of June 30, 2019, the Company owned the following subsidiaries: (1) American Pacific Plastics, Inc., a Wyoming corporation (100%), (2) American Pacific Resources, Inc., a Wyoming corporation (100%), (3) ComMatrix, Inc., a Wyoming corporation dissolved on August 09, 2019 (100%), (4) PHI Capital Holdings, Inc. (name changed to PHILUX Capital Advisors, Inc. on June 03, 2020), a Wyoming corporation (100%), (5) PHI Vietnam Investment and Development Company Ltd., a Vietnamese limited liability company (100%), (6) Phivitae Corporation, a Wyoming corporation – name changed to “Phivitae Healthcare, Inc.” on March 17, 2020 (100%), and (7) PHI Luxembourg Development S.A., a Luxembourg corporation (100%).

PHI CAPITAL HOLDINGS, INC. (NKA “PHILUX CAPITAL ADVISORS, INC.”

PHI Capital Holdings, Inc. was originally incorporated under the name of “Providential Capital, Inc.” in 2004 as a Nevada corporation and wholly owned subsidiary of the Company to provide merger and acquisition (M&A) advisory services, consulting services, project financing, and capital market services to clients in North America and Asia. In May 2010, Providential Capital, Inc. changed its name to PHI Capital Holdings, Inc. This subsidiary has successfully managed merger plans for several privately held and publicly traded companies and continues to focus on serving the Pacific Rim markets in the foreseeable future. It was re-domiciled as a Wyoming corporation on September 20, 2017 and changed its name to “PHILUX Capital Advisors, Inc.” on June 03, 2020. This subsidiary currently serves as the investment advisor to “PHILUX Global Funds SCA, SICAV-RAIF,” a Luxembourg Reserved Alternative Investment Fund established by PHI Luxembourg Development S.A.

AMERICAN PACIFIC RESOURCES, INC.

American Pacific Resources, Inc. (“APR”) is a Wyoming corporation established in April 2016 to serve as a holding company for various natural resource projects. On September 2, 2017, APR entered into an Agreement of Purchase and Sale with Rush Gold Royalty, Inc. (“RGR”), a Wyoming corporation, to acquire a 51% ownership in twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County, Oregon, U.S.A., in exchange for a total purchase price of twenty-five million U.S. Dollars ($US 25,000,000) to be paid in a combination of cash, convertible demand promissory note and PHI Group, Inc.’s Class A Series II Convertible Cumulative Redeemable Preferred Stock (“Preferred Stock”). This transaction was closed effective October 3, 2017. Following the first amendment dated April 19, 2018 and the second amendment dated September 29, 2018 retroactively effective April 20, 2018, to the afore-mentioned Agreement of Purchase and Sale, PHI Group, Inc. paid ten million shares of its Class A Series II Convertible Cumulative Redeemable Preferred Stock, a convertible demand promissory note and cash totaling $25,000,000 to Rush Gold Royalty, Inc. As of June 30, 2019, the Company only recorded $462,000 paid for this transaction as expenses for research and development in connection with the Granite Mining Claims project. The value of these mining claims is expected to be adjusted later after a new valuation of these mining assets is conducted by an independent third-party valuator.

SPECIAL STOCK DIVIDEND FROM AMERICAN PACIFIC RESOURCES, INC. SUBSIDIARY

On April 23, 2018, the Company’s Board of Directors passed a resolution to declare a twenty percent (20%) special stock dividend from its holdings of Common Stock in American Pacific Resources, Inc., a subsidiary of the Company, to shareholders of Common Stock of the Company as follows: (a) Declaration date: April 23, 2018; (b) Record date: May 31, 2018; (c) Payment date: October 31, 2018; (d) Dividend ratio: All eligible shareholders of Common Stock of the Company as of the Record date shall be entitled to receive two (2) shares of Common Stock of American Pacific Resources, Inc. for every ten (10) shares of Common Stock of PHI Group, Inc. held by such shareholders as of the referenced Record date. The payment date was rescheduled for March 29, 2019.

Most recently, on December 28, 2020, the Board of Directors of PHI Group, Inc., adopted a resolution to further extend the Record Date to June 30, 2021 and state the provisions for the afore-mentioned stock dividend as follows: (a) Eligible shareholders: In order to be eligible for the above-mentioned special stock dividend, the minimum amount of Common Stock of PHI Group, Inc. each shareholder must hold as of June 30, 2021 (the New Record Date) is twenty (20) shares; (b) Dividend ratio: All eligible shareholders of Common Stock of the Company as of the new Record Date will be entitled to receive one (1) share of Common Stock of American Pacific Resources, Inc. for every twenty (20) shares of Common Stock of PHI Group, Inc. held by such shareholders as of the new Record date; and (c) Payment Date: the Payment Date for the distribution of the special stock dividend to be ten (10) business days after a registration statement for said special stock dividend shares is declared effective by the Securities and Exchange Commission.

PHIVITAE CORPORATION (NKA “PHIVITAE HEALTHCARE, INC.”)

PHIVITAE CORPORATION, a Wyoming corporation, is a wholly-owned subsidiary of PHI Group established on July 07, 2017 with the intention to acquire a pharmaceutical and medical equipment distribution company in Romania and to manage distribution of medical equipment and pharmaceutical products to emerging markets. This subsidiary changed its name to PHIVITAE HEALTHCARE, INC. on March 17, 2020. On April 27, 2020, PHI Group, Inc. signed a business cooperation agreement with Natural Well Technical Ltd. (“NWTL”), Taiwanese company, to jointly cooperate in the research and development activities of pertinent technologies that have been initiated and continue to be carried out by NWTL and applying them to produce commercial products and services in the fields of healthcare, beauty supply, agriculture and industry, as the case may be, as well as any other business activities deemed mutually beneficial.

In particular, NWTL and PHI Group will initially focus on the following activities:

1. Developing and implementing a comprehensive plan to increase the production, marketing and sale of the “Super Green” High Energy Drop Drink and “Mistyrious” Fine Mist Spray products on a large scale worldwide;

2. Developing and implementing a plan to increase the production, marketing and sale of “Super Cassava” and “Uni-Wash” Engine Booster products as well as other products related to the fields of agriculture and energy that have been studied and developed by NWTL;

3. Continuing to conduct research and accumulate clinical data for NWTL’s biotechnologies in order to obtain U.S. FDA’s approval of cancer treatments and other healthcare products. In addition, both parties also develop, produce and market beauty supply products.

4. Designing a financial plan and providing the required funding for NWTL to execute its business plan.

Both companies intend to conduct the activities mentioned in 1. and 3. above through PHIVITAE HEALTHCARE, INC. or a subsidiary under it.

LUXEMBOURG RESERVED ALTERNATIVE INVESTMENT FUNDS

In November 2017, the Company engaged a professional structuring agency and a leading Luxembourg law firm to assist the Company with respect to the establishment of a Luxembourg Bank Fund known as “Reserved Alternative Investment Fund” (“RAIF”), together with a number of initial sub-funds for agricultural, energy and real estate projects and investments, and the proposed Asia Diamond Exchange to be established in Vietnam. On December 03, 2018, the Company formed PHI Luxembourg Development S.A. as the mother holding company for PHILUX Global Funds, which was activated on June 11, 2020, Registration No. B244952.

DISCONTINUED OPERATIONS:

The Company has discontinued the operations of Providential Vietnam Ltd., Philand Ranch Limited – UK (together with its subsidiaries Philand Ranch Ltd-Singapore, Philand Corporation-USA and Philand Vietnam Ltd.), PHI Gold Corporation and PHI Energy Corporation since June 30, 2012 and has written off the contingency liabilities of $1,255,037 in connection with these discontinued operations as of June 30, 2019.

STOCK OWNERSHIPS:

MYSON GROUP, INC. (formerly VANGUARD MINING CORPORATION)

As of June 30, 2019, PHI Group, Inc. and PHI Capital Holdings, Inc., a wholly owned subsidiary of the Company, together owned 33,805,106 shares of Common Stock of Myson Group, Inc., a Nevada corporation currently traded on the OTC markets under the symbol “MYSN.” The Company wrote off 32,900,106 shares of MYSN stock held in certificate form as worthless as of June 30, 2019.

SPORTS POUCH BEVERAGE COMPANY, INC.

As of June 30, 2019, the Company through PHI Capital Holdings, Inc. owned 292,050,000 shares of Sports Pouch Beverage Company, Inc., a Nevada corporation traded on the OTC Markets under the symbol “SPBV”.

ITEM 1A. RISK FACTORS

RISK FACTORS

Investment in our securities is subject to various risks, including risks and uncertainties inherent in our business. The following sets forth factors related to our business, operations, financial position or future financial performance or cash flows which could cause an investment in our securities to decline and result in a loss.

General Risks Related to Our Business

Our success depends on our management team and other key personnel, the loss of any of whom could disrupt our business operations.

Our future success will depend in substantial part on the continued service of our senior management. The loss of the services of one or more of our key personnel could impede implementation and execution of our business strategy and result in the failure to reach our goals. We do not carry key person life insurance for any of our officers or employees. Our future success will also depend on the continued ability to attract, retain and motivate highly qualified personnel in the diverse areas required for continuing our operations. We cannot assure that we will be able to retain our key personnel or that we will be able to attract, train or retain qualified personnel in the future.

Our strategy in mergers and acquisitions involves a number of risks and we have a limited history of successful acquisitions. Even when an acquisition is completed, we may have to continue our service for integration that may not produce results as positive as management may have projected.

The Company is in the process of evaluating various opportunities and negotiating to acquire other companies, assets and technologies. Acquisitions entail numerous risks, including difficulties in the assimilation of acquired operations and products, diversion of management’s attention from other business concerns, amortization of acquired intangible assets and potential loss of key employees of acquired companies. We have limited experience in assimilating acquired organizations into our operations. Although potential synergy may be achieved by acquisitions of related technologies and businesses, no assurance can be given as to the Company’s ability to integrate successfully any operations, personnel, services or products that have been acquired or might be acquired in the future. Failure to successfully assimilate acquired organizations could have a material adverse effect on the Company’s business, financial condition and operating results.

Acquisitions involve a number of special risks, including:

●	failure of the acquired business to achieve expected results;
●	diversion of management’s attention;
●	failure to retain key personnel of the acquired business;
●	additional financing, if necessary and available, could increase leverage, dilute equity, or both;
●	the potential negative effect on our financial statements from the increase in goodwill and other intangibles; and
●	the high cost and expenses of completing acquisitions and risks associated with unanticipated events or liabilities.

These risks could have a material adverse effect on our business, results of operations and financial condition since the values of the securities received for the consulting service at the execution of the acquisition depend on the success of the company involved in acquisition. In addition, our ability to further expand our operations through acquisitions may be dependent on our ability to obtain sufficient working capital, either through cash flows generated through operations or financing activities or both. There can be no assurance that we will be able to obtain any additional financing on terms that are acceptable to us, or at all.

As some of our business activities are currently involved with Southeast Asia, any adverse change to the economy or business environment in these countries could significantly affect our operations, which would lead to lower revenues and reduced profitability.

Some of our business activities are currently involved with Southeast Asia. Because of this presence in specific geographic locations, we are susceptible to fluctuations in our business caused by adverse economic or other conditions in this region, including stock market fluctuation. A stagnant or depressed economy in these countries generally, or in any of the other markets that we serve, could adversely affect our business, results of operations and financial condition.

Risks associated with energy business

As part of our core business involves acquisitions of energy assets as well as production and trading of energy commodities, our profitability will depend on the prices we receive for energy commodities such as coal and wood pellets. These prices are dependent upon factors beyond our control, including: the strength of the global economy; the demand for electricity; the global supply of thermal coal and biomass products; weather patterns and natural disasters; competition within our industry and the availability and price of alternatives, including natural gas; the proximity, capacity and cost of transportation; coal industry capacity; domestic and foreign governmental regulations and taxes, including those establishing air emission standards for coal-fueled power plants or mandating increased use of electricity from renewable energy sources; regulatory, administrative and judicial decisions, including those affecting future mining permits; and technological developments, including those intended to convert coal-to-liquids or gas and those aimed at capturing and storing carbon dioxide.

Risks Related to Our Securities

Insiders have substantial control over the company, and they could delay or prevent a change in our corporate control, even if our other stockholders wanted such a change to occur.

Though our executive officers and directors as of the date of this report, in the aggregate, only hold a small portion of our outstanding common stock, we have the majority voting rights associated with the Company’s Class B Series I Preferred Stock, which decision may allow the Board of Directors to exercise significant control over all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions. This could delay or prevent an outside party from acquiring or merging with us even if our other stockholders wanted it to occur.

The price at which investors purchase our common stock may not be indicative of the prevailing market price.

The stock market often experiences significant price fluctuations that are unrelated to the operating performance of the specific companies whose stock is traded. These market fluctuations could adversely affect the trading price of our shares. Investors may be unable to sell their shares of common stock at or above their purchase price, which may result in substantial losses.

Since we do not currently meet the requirements for our stock to be quoted on NASDAQ, NYSE MKT LLC or any other senior exchange, the tradability in our securities will be limited under the penny stock regulations.

Under the rules of the Securities and Exchange Commission, as the price of our securities on the OTCQB or OTC Markets is below $5.00 per share, our securities are within the definition of a “penny stock.” As a result, it is possible that our securities may be subject to the “penny stock” rules and regulations. Broker-dealers who sell penny stocks to certain types of investors are required to comply with the Commission’s regulations concerning the transfer of penny stock. These regulations require broker-dealers to:

*Make a suitability determination prior to selling penny stock to the purchaser;

*Receive the purchaser’s written consent to the transaction; and

*Provide certain written disclosures to the purchaser.

These requirements may restrict the ability of broker/dealers to sell our securities, and may affect the ability to resell our securities.

Our compliance with the Sarbanes-Oxley Act and SEC rules concerning internal controls may be time consuming, difficult and costly for us.

It may be time consuming, difficult and costly for us to develop and implement the internal controls and reporting procedures required by the Sarbanes-Oxley Act. We may need to hire additional financial reporting, internal controls and other finance staff in order to develop and implement appropriate internal controls and reporting procedures. If we are unable to comply with the internal controls requirements of the Sarbanes-Oxley Act, we may not be able to obtain the independent accountant certifications that the Sarbanes-Oxley Act requires publicly traded companies to obtain.

Our success depends on our management team and other key personnel, the loss of any of whom could disrupt our business operations.

Our future success will depend in substantial part on the continued service of our senior management and founder. The loss of the services of one or more of our key personnel could impede implementation and execution of our business strategy and result in the failure to reach our goals. We do not carry key person life insurance for any of our officers or employees. Our future success will also depend on the continued ability to attract, retain and motivate highly qualified personnel in the diverse areas required for continuing our operations. We cannot assure that we will be able to retain our key personnel or that we will be able to attract, train or retain qualified personnel in the future.

Our service strategy in merger and acquisition involves a number of risks and we have a limited history of successful acquisitions. Even when an acquisition is completed, we may have to continue our service for integration that may not produce results as positive as management may have projected.

The Company is in the process of evaluating various opportunities and negotiating to acquire other companies and technologies. Acquisitions entail numerous risks, including difficulties in the assimilation of acquired operations and products, diversion of management’s attention from other business concerns, amortization of acquired intangible assets and potential loss of key employees of acquired companies. We have limited experience in assimilating acquired organizations into our operations. Although potential synergy may be achieved by acquisitions of related technologies and businesses, no assurance can be given as to the Company’s ability to integrate successfully any operations, personnel, services or products that have been acquired or might be acquired in the future. Failure to successfully assimilate acquired organizations could have a material adverse effect on the Company’s business, financial condition and operating results.

Acquisitions involve a number of special risks, including:

	●	failure of the acquired business to achieve expected results;

	●	diversion of management’s attention;

	●	failure to retain key personnel of the acquired business;

	●	additional financing, if necessary and available, could increase leverage, dilute equity, or both;

	●	the potential negative effect on our financial statements from the increase in goodwill and other intangibles; and

	●	the high cost and expenses of completing acquisitions and risks associated with unanticipated events or liabilities.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

ITEM 2. DESCRIPTION OF PROPERTIES

As of June 30, 2019, the Company did not own any realty or equipment.

ITEM 3. LEGAL PROCEEDINGS

The Company is currently not a party to any material pending legal proceedings and, to the best of its knowledge, no such action by or against Company has been threatened.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company’s Common Stock is currently trading on the OTC Markets under the symbol “PHIL”. The following sets forth the high and low prices of the Company’s Common Stock in the US for the most recent month, two most recent quarters and each quarter during the preceding two fiscal years.

The prices for the Company’s common stock quoted by brokers are not necessarily a reliable indication of the value of the Company’s common stock.

Per Share Common Stock Prices for the Month		High				Low
Ended February 2021			0.0146				0.0008

Per Share Common Stock Prices for the Quarters	High		Low
Ended December 31, 2020		0.0007		0.0000
Ended September 30, 2020		0.0002		0.0000

Per Share Common Stock Prices by Quarter;

For the Fiscal Year Ended June 30, 2020

	High		Low

Quarter Ended June 30, 2020		0.0002		0.0000
Quarter Ended March 31, 2020		0.0002		0.0000
Quarter Ended December 31, 2019		0.0002		0.0000
Quarter Ended September 30, 2019		0.0002		0.0000

Per Share Common Stock Prices by Quarter;

For the Fiscal Year Ended June 30, 2019

	High		Low
Quarter Ended June 30, 2019		0.0002		0.00001
Quarter Ended March 31, 2019		0.0017		0.0001
Quarter Ended December 31, 2018		0.0309		0.00115
Quarter Ended September 30, 2018		0.04381		0.00714

Holders of Common Equity:

As of March 09, 2021, there are approximately 1,577 shareholders of record of the Company’s common stock, of which 1,280 are active.

Dividends:

Cash dividend: The Company has not declared or paid a cash dividend to common stock shareholders since the Company’s inception. The Board of Directors presently intends to retain any earnings to finance company operations and does not expect to authorize cash dividends to common shareholders in the foreseeable future. Any payment of cash dividends in the future will depend upon Company’s earnings, capital requirements and other factors.

Share dividend: On March 12, 2012 the Board of Directors of the Company declared a special stock dividend to shareholders of Common Stock of the Company with the following stipulations: (a) Declaration date: March 16, 2012; (b) Record date: June 15, 2012; (c) Payment date: September 17, 2012; (d) Dividend ratio: All eligible shareholders of Common Stock of the Company as of the Record date shall receive three new shares of Common Stock of the Company for each share held by such shareholders as of the referenced record date. The purpose of this special stock dividend was to partially mitigate the impact of the dilution in connection with the 1-for-1,500 reverse split of the Common Stock on the Company’s long-term shareholders and reward them for staying with the Company. On June 6, 2012, the Company’s Board of Directors passed a resolution to change the record date for the special stock dividend to July 31, 2012 and the distribution date to November 30, 2012. The Company has reserved a total of 5,673,327 shares of Common Stock for this special dividend distribution and will reset a new distribution date when a registration statement for the dividend shares is declared effective by the Securities and Exchange Commission.

ITEM 6. SELECTED FINANCIAL DATA

JUNE 30,	2019			2018			2017
Net revenues	$	-		$	1,672,659		$	113,500
Income (loss) from operations.	$	(2,410,213	)	$	(230,307	)	$	(556,958
Net other income (expense).	$	(519,448	)	$	(1,796,013	)	$	(1,003,760
Net income (loss )	$	(2,929,661	)	$	(2,026,320	)	$	(1,560,718
Net income ( loss ) per share.	$	0.00		$	(0.03	)	$	(0.10
Total assets	$	1,084,095		$	27,424,139		$	674,064
Total liabilities	$	7,086,819		$	32,268,886		$	8,187,545

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Except for the audited historical information contained herein, this report specifies forward-looking statements of management of the Company within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934 (“forward-looking statements”) including, without limitation, forward-looking statements regarding the Company’s expectations, beliefs, intentions and future strategies. Forward-looking statements are statements that estimate the happening of future events and are not based on historical facts. Forward- looking statements may be identified by the use of forward-looking terminology, such as “could”, “may”, “will”, “expect”, “shall”, “estimate”, “anticipate”, “probable”, “possible”, “should”, “continue”, “intend” or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in this report have been compiled by management of the Company on the basis of assumptions made by management and considered by management to be reasonable. Future operating results of the Company, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in this report represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. In addition, those forward-looking statements have been compiled as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this report. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in this report are accurate and the Company assumes no obligation to update any such forward-looking statements.

RESULTS OF OPERATIONS FOR THE YEARS ENDED JUNE 30, 2019 AND JUNE 30, 2018

Revenues:

The Company received $800,000 from European Plastic Joint Stock Company and $466,634 from Saigon Pho Palace Joint Stock Company, totaling $1,266,634, during the fiscal year ended June 30, 2019 for participation in the energy and real estate compartments of our Philux Global Funds, respectively; however, we did not recognize these amounts as revenues but recorded as sub-fund obligations until these compartments are activated, as compared to $1,672,659 in total revenues for the year ended June 30, 2018.

Operating Expenses:

The Company incurred total operating expenses of $2,410,213 for the year ended June 30, 2019, as compared to $$1,902,966 for the year ended June 30, 2018. The increase of $507,247 includes the recognition of $462,000 as R&D expenses in connection with the Granite mining claims of American Pacific Resources, Inc., an increase of $6,928 in travel expenses, an increase of $14,156 in advertising, and an increase of $25,315 in filing fees between the two fiscal periods.

Income (loss) from operations:

The Company had a loss from operations of $2,410,213 for the fiscal year ended June 30, 2019 as compared to a loss from operations of $230,307 for the fiscal year ended June 30, 2018. This represents an increase of $2,179,906 in loss from operations during the current fiscal year as compared to that of the precious year. This was mainly due to the fact that the Company did not recognize any revenues from sub-fund participation partners while simultaneously incurring comparably more expenses during the fiscal year ended June 30, 2019.

Other income (expense)

The Company had a net other expense of $519,448 for the fiscal year ended June 30, 2019 as compared to a net other expense of $1,796,013 for the prior year. This was primarily due to the fact the Company recognized a total of $2,514,700 as other income as a result of reduction of $61,939 in derivative liabilities in connection with convertible promissory notes, derecognition of other liabilities in the amount of $1,742,891 due to inactivity and statutory limits, and adjustment of discount on convertible notes and correction of value of common stock issued in the amount of $709,870 while incurring $1,897,979 in interest expense and $1,136,169 in other expenses during the current fiscal year.

Net income (loss):

The Company had a net loss of $2,929,661 for the fiscal year ended June 30, 2019, as compared to a net loss of $2,026,320 for the prior year, representing an increase of $903,341 in net loss between the two fiscal years. The net loss per share based on the basic and diluted weighted average number of common shares outstanding for the fiscal year ended June 30, 2019 was $(0.00) as compared to $(0.03) for the fiscal year ended June 30, 2018.

CASH FLOWS

We had in cash and cash equivalents of $71,768 as of June 30, 2019, as compared to $13,937 in cash and cash equivalents as of June 30, 2018, respectively.

Net cash used in our operating activities was $244,324 for the fiscal year ended June 30, 2019 as compared to that of $2,653,481 for the fiscal year ended June 30, 2018, respectively. The underlying reasons for the decrease in net cash used operating activities between the two periods were mainly due to a total decrease in other assets and prepaid expenses in the amount of $2,011,062, an increase of liabilities in the amount of $385,640 and a net loss from operations of $2,929,661 in the current fiscal year as compared to that of $2,2026,320 the previous fiscal year.

There was no cash provided by or used in investing activities during the fiscal year ended June 30, 2019 as compared to a combination of cash and promissory note used investing activities of $25,005,000 for the fiscal year ended June 30, 2018, respectively.

Net cash provided by financing activities was $302,154 for the fiscal year ended June 30, 2019 as compared to cash provided by financing activities of $27,634,050 for the fiscal year ended June 30, 2018, respectively. The net cash provided by financing activities for the current fiscal year came from loans from officers and directors in the amount of $298,420 and $3,734 from stock issuance for cash.

HISTORICAL FINANCING ARRANGEMENTS

SHORT TERM NOTES PAYABLE AND ISSUANCE OF COMMON STOCK

In the course of its business, the Company has obtained short-term loans from individuals and institutional investors and from time to time raised money by issuing restricted common stock of the Company under the auspices of Rule 144. These notes bear interest rates ranging from 0% to 36% per annum. (Notes 11 & 15).

CONVERTIBLE PROMISSORY NOTES

The Company has also from time to time issued convertible promissory notes to various private investment funds for short-term working capital and special projects. Typically these notes bear interest rates from 5% to 12% per annum, mature within one year, are convertible to common stock of the Company at a discount ranging from 42% to 50%, and may be repaid within 180 days at a prepayment premium ranging from 130% to 150%. (Note 11)

COMPANY’S PLAN OF OPERATION FOR THE FOLLOWING 12 MONTHS

In the next twelve months the Company’s goals are to create a number of sub-funds under PHILUX Global Funds SCA, SICAV-RAIF for investment in real estate, renewable energy, agriculture, infrastructure, and healthcare, as well as develop the Asia Diamond Exchange in Vietnam. In addition, the Company will continue to carry out its merger and acquisition program by acquiring target companies for roll-up strategy and also invest in special situations. Moreover, we will provide advisory and consulting services to international clients through our wholly owned subsidiary PHILUX Capital Advisors, Inc. (formerly known as PHI Capital Holdings, Inc.)

FINANCIAL PLANS

MATERIAL CASH REQUIREMENTS: We must raise substantial amounts of capital to fulfill our plans for PHILUX Global Funds and for acquisitions. We intend to use equity, debt and project financing to meet our capital needs for acquisitions and investments.

Management has taken action and formulated plans to meet the Company’s operating needs through June 30, 2021 and beyond. The working capital cash requirements for the next 12 months are expected to be generated from operations, sale of marketable securities and additional financing. The Company plans to generate revenues from its consulting services, merger and acquisition advisory services, and acquisitions of target companies with cash flows.

AVAILABLE FUTURE FINANCING ARRANGEMENTS: The Company may use various sources of funds, including short-term loans, long-term debt, equity capital, and project financing as may be necessary. The Company believes it will be able to secure the required capital to implement its business plan.

EQUITY LINE FACILITY

On March 6, 2017, PHI Group, Inc., a Nevada corporation (the “Company”) and Azure Capital, a Massachusetts Corporation (the “Investor”) entered into an Investment Agreement (the “Investment Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”), each dated March 6, 2017 between the Company and the Investor.

Pursuant to the Investment Agreement, the Investor committed to purchase, subject to certain restrictions and conditions, up to $10,000,000 worth of the Company’s common stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by the Investor pursuant to the Investment Agreement. The Company agreed to initially reserve 20,000,000 shares of its Common Stock for issuance to the Investor pursuant to the Investment Agreement. In the event the Company cannot register a sufficient number of shares of its Common Stock for issuance pursuant to the Investment Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of shares required for the Company to perform its obligations in connection with the Investment Agreement as soon as reasonable practical.

The Company may in its discretion draw on the facility from time to time, as and when the Company determines appropriate in accordance with the terms and conditions of the Investment Agreement. The maximum number of shares that the Company is entitled to put to the Investor in any one draw down notice shall not exceed shares with a purchase price of $250,000 or 200% of the average daily volume (U.S. market only) of the Company’s Common Stock for the three (3) Trading Days prior to the applicable put notice date multiplied by the average of the three (3) daily closing prices immediately preceding the put date, calculated in accordance with the Investment Agreement. The Company may deliver a notice for a subsequent put from time to time, after the pricing period for the prior put has been completed.

The purchase price shall be set at ninety-four percent (94%) of the lowest daily volume weighted average price (VWAP) of the Company’s common stock during the five (5) consecutive trading days immediately following the put notice date. On each put notice submitted to the Investor by the Company, the Company shall specify a suspension price for that put. In the event the price of Company’s Common Stock falls below the suspension price, the put shall be temporarily suspended. The put shall resume at such time the price of the Company’s Common Stock is above the suspension price, provided the dates for the pricing period for that particular put are still valid. In the event the pricing period has been complete, any shares above the suspension price due to the Investor shall be sold to the Investor by the Company at the suspension price under the terms of the Investment Agreement. The suspension price for a put may not be changed by the Company once submitted to the Investor.

There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, the Company shall not be entitled to deliver another draw down notice. In addition, the Investor will not be obligated to purchase shares if the Investor’s total number of shares beneficially held at that time would exceed 4.99% of the number of shares of the Company’s common stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, the Company is not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.

The Investment Agreement also contains customary representations and warranties of each of the parties. The assertions embodied in those representations and warranties were made for purposes of the Investment Agreement and are subject to qualifications and limitations agreed to by the parties in connection with negotiating the terms of the Investment Agreement. The Investment Agreement further provides that the Company and the Investor are each entitled to customary indemnification from the other for, among other things, any losses or liabilities they may suffer as a result of any breach by the other party of any provisions of the Investment Agreement or Registration Rights Agreement (as defined below). Investor should read the Investment Agreement together with the other information concerning the Company that the Company publicly files in reports and statements with the Securities and Exchange Commission (the “SEC”).

Pursuant to the terms of the Registration Rights Agreement, the Company is obligated to file one or more registrations statements with the SEC within twenty-one (21) days after the date of the Registration Rights Agreement to register the resale by the Investor of the shares of common stock issued or issuable under the Investment Agreement. In addition, the Company is obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 90 days after the registration statement is filed.

This Investment Agreement was amended on August 3, 2017 to allow for the reservation of 65,445,000 shares of the Company’s Common Stock for issuance to the Investor pursuant to the corrected Investment Agreement.

The Company has filed a S-1 Registration Statement with the Securities and Exchange Commission to include 7,936,600 shares of its Common Stock for issuance in connection with the first tranche of the Equity Line Facility. The S-1 Registration Statement, as amended, was declared effective by the Securities and Exchange Commission on January 11, 2018. As of the day of this report, the Company has not accessed the Equity Line Facility for funding.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following discussion about PHI Group Inc.’s market risk involves forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements.

Currency Fluctuations and Foreign Currency Risk

Some of our acquisition targets and partner companies are located outside of the United States and use currencies other than the U.S. dollar as the official currencies of those countries. The fluctuations of exchange rates in these countries may affect the value of our business.

Interest Rate Risk

We do not have significant interest rate risk, as most of our debt obligations are primarily short-term in nature to individuals, with fixed interest rates.

Valuation of Securities Risk

Since some of our income in the past was paid with the marketable securities, the value of our assets may fluctuate significantly depending on the market value of the securities we hold.

ITEM 8. FINANCIAL STATEMENTS

PHI GROUP, INC.

INDEX TO FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-1

Balance Sheet as of June 30, 2019 and June 30, 2018	F-2

Statement of Operations the years ended June 30, 2019 and June 30, 2018	F-3

Statement of Cash Flows for the years ended June 30, 2019 and June 30, 2018	F-4

Statement of Stockholders’ Equity (Deficit) for the years ended June 30, 2019 and June 30, 2018	F-5

Notes to Financial Statements	F-6

AUDITORS’ REPORT

MS Madhava Rao

18115 Topham St., Tarzana, CA 91335

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

PHI Group Inc.

2323 Main Street,

Irvine, CA 92614

Opinion on the Financial Statements

We have audited the accompanying Consolidated balance sheet of PHI Group, Inc. (the “Company”) as of June 30, 2019, the related statements of operations, changes in shareholders’ deficit and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019, and the results of its operations and its cash flows for the period June 30, 2019, in conformity with accounting principles generally accepted in the United States of America.

Consideration of the Company’s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 22 to the financial statements, the Company has incurred losses since inception, has accumulated a significant deficit, has negative cash flows from operations, and currently has no revenues. These factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 22. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ M. S. Madhava Rao
M.S. Madhava Rao
Chartered Accountant
Bangalore, India
March 10, 2021

F-1

PHI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (AUDITED)

	June 30,			June 30,
	2019			2018
ASSETS

Current Assets
Cash and cash equivalents		71,768			13,937
Marketable securities		213,485			1,100,483
Accounts receivable		-			432,000
Other current assets		793,842			174,877
Total current assets	$	1,079,095		$	1,721,297
Other assets:
Investments		5,000			25,005,000
Contract assets		-			697,841
Total other assets		5,000			25,702,841
Total Assets	$	1,084,095		$	27,424,139

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities
Accounts payable		189,152			116,063
Sub-fund obligations		1,266,634			-
Accrued expenses		2,389,111			392,205
Short-term notes payable (net)		331,700			1,336,552
Convertible Promissory Notes (net)		273,903		$	-
Due to officers		890,897			233,577
Advances from customers		438,000		$	-
Other current payable		-			92,781
Contract liabilities		-			697,841
Derivative liabilities		1,307,421			738,814
Total current liabilities	$	7,086,819		$	3,607,833

Long-Term Liabilities
Accrued expenses		-			1,063,481
Accrued interest		-			2,005,815
Advances from customers		-			288,219
Demand promissory note		-			24,048,500
Liabilities from Discontinued Operations		-			1,040,037
Preferred stock liabilities - Discont. Operations		-			215,000
Total Long-Term Liabilities	$	-		$	28,661,052
Total Liabilities	$	7,086,819		$	32,268,885

Stockholders’ deficit:
Preferred Stock, $0.001 par value; 100,000,000 shares authorized. 10,000,000 shares Class A Series II issued and outstanding as of 6/30/2018 and 6/30/2019, respectively. Par value:		10,000			10,000
APIC - Class A Series II Preferred Stock		-			304,100
120,000 shares Class B Series I issued and outstanding as of 06/30/2019. Par value:		120			-
Common stock, $0.001 par value; 30.5 billion shares authorized; 10,009,756,808 shares issued and outstanding on 06/30/2019; 1.9 billion shares authorized and 135,893,815 shares issued and outstanding on 6/30/2018, respectively, adjusted for 1 for 1,500 reverse split effective March 15, 2012. Par value:		10,009,757			382,920
APIC - Common Stock		26,745,616			33,887,240
Common Stock to be cancelled		(35,500	)		(33,000	)
Treasury stock: 484,767 shares as of 6/30/19 and 6/30/18, respectively - cost method.		(44,170	)		(44,170	)
Common Stock of subsidiary to be issued - American Pacific Resources, Inc.	$	-			447,500
Acc. Other comprehensive gain (loss)	$	-			751,962
Accumulated deficit		(42,688,547	)		(40,551,299	)
Total stockholders’ deficit	$	(6,002,724	)	$	(4,844,747	)
Total liabilities and stockholders’ deficit	$	1,084,095		$	27,424,139

The accompanying notes form an integral part of these audited consolidated financial statements

F-2

PHI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS (AUDITED)

FOR THE YEARS ENDED

	JUNE 30,
	2019			2018
Net revenues
Consulting, advisory and management services		-			1,240,659
Sales		-			432,000
Total revenues		-			1,672,659
Operating expenses:
Salaries and wages		247,500			238,165
Professional services, including non-cash compensation		1,468,468			1,508,811
General and administrative		694,245			155,990
Total operating expenses	$	2,410,213		$	1,902,966

Income (loss) from operations	$	(2,410,213	)	$	(230,307	)

Other income and expenses

Interest expense		(1,897,979	)		(1,352,736	)
Loss on loan/note conversion		-			(94,539	)
Other income		2,514,700			(348,739	)
Other expenses		(1,136,169	)
Net other income (expenses)	$	(519,448	)	$	(1,796,013	)

Net income (loss)	$	(2,929,661	)	$	(2,026,320	)
Other comprehensive income (loss)
Accumulated other comprehensive gain (loss)		-			751,962
Comprehensive income (loss)	$	(2,929,661	)	$	(1,274,359	)

Net loss per share:
Basic	$	(0.00	)	$	(0.03	)
Diluted	$	(0.00	)	$	(0.03	)

Weighted average number of shares outstanding:
Basic		2,813,015,265			72,797,797
Diluted		2,813,015,265			72,797,797

The accompanying notes form an integral part of these audited consolidated financial statements

F-3

PHI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

AUDITED

	2019			2018
Cash flows from operating activities:
Net income (loss) from operations	$	(2,929,661	)	$	(2,026,320	)
R&D Expenses	$	462,000		$	-
Provision for bad debt	$	432,000		$	-
Write-off of financing costs	$	26,477		$	-
Reversal of dividends payable from preferred stock	$	(4,681	)	$	-
Adjustments to reconcile net income to net cash used in operating activities:
(Increase) decrease in assets and prepaid expenses
Marketable securities		886,998			-
Prepaid rent		33,841			-
Deposit for Luxembourg bank fund setup		(679,283	)		-
Total (increase) decrease in assets and prepaid expenses		241,556			(1,769,506	)
Increase (decrease) in accounts payable and accrued expenses
Acoounts payable		73,089			-
Sub-fund obligations		1,266,634			-
Accrued expenses		(65,416	)		-
Notes payable		(178,322	)		-
Loans from Directors/Officers		375,000			-
Advances from customers		57,000			-
Total increase (decrease) in accounts payable and accrued expenses		1,527,985			1,142,345
Net cash provided by (used in) operating activities	$	(244,324	)	$	(2,653,481	)

Cash flows from investing activities:
Investment in mineral assets - Oregon mining claims		-			(25,000,000	)
Investment in Aquarius Power, Inc.		-			(5,000	)
Net cash provided by (used in) investing activities	$	-		$	(25,005,000	)

Cash flows from financing activities:
Loans from Directors/Officers		298,420			2,563,453
Common Stock (net)		3,734			2,563,453
Preferred Stock		-			314,100
Common Stock of Subsidiary		-			447,500
Accum. other comprehensive income (loss)		-			598,488
Retained Earnings		-			774,775
Treasury stock		-			(3,262	)
Short-term and long-term liabilities		-			(1,109,503	)
Demand promissory note		-			24,048,500
Net cash provided by (used in) financing activities	$	302,154		$	27,634,050
Net decrease in cash and cash equivalents		57,831			(3,609,981	)
Cash and cash equivalents, beginning of period		13,937			38,369
Cash and cash equivalents, end of period	$	71,768		$	(3,571,613	)

The accompanying notes form an integral part of these audited consolidated financial statements

F-4

PHI GROUP, INC. AND SUBSIDIARIES

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

(Audited)

																									Common			Subsidiary
	Common Stock					Preferred		Stock			Treasury Stock						Additional			Other					Stock to			Stock to	Total
	Shares		Amount			Shares		Amount			Shares			Amount			Paid-in Capital			Comprehensive Income/(loss)		Accumulated (Deficit)			be cancelled			be issued	Stockholders’ (Deficit)
Balance at June 30, 2017		16,109,036	$	249,645								-321,569		$	(40,908	)	$	31,424,061		$	153,474	$	(38,524,979	)					$	(7,513,481	)
Power Up Lending Group - shares issued for conversion of note (7/5/17)		740,741		741											-		$	9,544			-		-							10,285
Auctus Fund, LLC - shares issued for conversion of note (7/11/17)		800,000		800											-			4,352			-		-							5,152
Power Up Lending Group - shares issued for conversion of note (7/17/17)		880,000		880											-			7,262			-		-							8,142
Power Up Lending Group - shares issued for conversion of note (7/21/17)		1,019,872		1,020											-			7,118			-		-							8,138
Henry Fahman - shares issued for conversion of loans (7/25/17)		20,000,000		20,000											-			420,000			-		-							440,000
Steve Truong - shares issued for cash (7/25/17)		1,333,333		1,333											-			18,667			-		-							20,000
Andreas Held - shares issued for cash (7/25/17)		200,000		200											-			2,800			-		-							3,000
Power Up Lending Group - shares issued for conversion of note (10/17/17)		434,783		435											-			26,286			-		-							26,721
JSJ Investments Inc. - shares issued for conversion of note (10/19/17)		371,057		371											-			28,813			-		-							29,184
Power Up Lending Group - shares issued for conversion of note (10/23/17)		622,407		622											-			32,278			-		-							32,900
EMA Financial LLC - shares issued for conversion of note (10/24/17)		250,000		250											-			8,563			-		-							8,813
Power Up Lending Group - shares issued for conversion of note (10/31/17)		419,212		419											-			15,479			-		-							15,898
EMA Financial LLC - shares issued for conversion of note (11/07/17)		600,000		600											-			5,518			-		-							6,118
Auctus Fund, LLC - shares issued for conversion of note (11/08/17)		2,154,700		2,155											-			50,783			-		-							52,938
Andreas Held - shares issued for cash (11/16/17)		80,000		80											-			1,120			-		-							1,200
EMA Financial LLC - shares issued for conversion of note (11/21/17)		1,000,000		1,000											-			10,938			-		-							11,938
Auctus Fund, LLC - shares issued for conversion of note (12/01/17)		2,346,000		2,346											-			33,489			-		-							35,835
JSJ Investments Inc. - shares issued for conversion of note (12/05/17)		1,385,677		1,386											-			23,884			-		-							25,270
EMA Financial LLC - shares issued for conversion of note (12/12/17)		2,000,000		2,000											-			11,857			-		-							13,857
JSJ Investments Inc. - shares issued for conversion of note (12/13/17)		2,250,821		2,251											-			23,639			-		-							25,890
Auctus Fund, LLC - shares issued for conversion of note (12/14/17)		2,744,300		2,744											-			20,514			-		-							23,258
Steve Truong - shares issued for cash (12/14/17)		1,724,138		1,724											-			8,276			-		-							10,000
EMA Financial LLC - shares issued for conversion of note (12/19/17)		2,500,000		2,500											-			14,917			-		-							17,417
JSJ Investments Inc. - shares issued for conversion of note (12/20/17)		2,913,837		2,914											-			30,592			-		-							33,506
EMA Financial LLC - shares issued for conversion of note (12/29/17)		2,500,000		2,500											-			15,103			-		-							17,603
Crown Bridge Partners LLC - shares issued for conversion of note (12/29/17)		2,300,000		2,300											-			14,854			-		-							17,154
Auctus Fund, LLC - shares issued for conversion of note (01/08/18)		1,835,795		1,836											-			13,620			-		-							15,456
JSJ Investments Inc. - shares issued for conversion of note (01/09/18)		2,601,957		2,602											-			24,295			-		-							26,897
Crown Bridge Partners LLC - shares issued for conversion of note (01/11/18)		2,900,000		2,900											-			29,060			-		-							31,960
EMA Financial LLC - shares issued for conversion of note (01/25/18)		2,500,000		2,500											-			17,921			-		-							20,421
Crown Bridge Partners LLC - shares issued for conversion of note (01/29/18)		2,500,000		2,500											-			110,475			-		-							112,975
EMA Financial LLC - shares issued for conversion of note (01/29/18)		3,812,188		3,812											-			24,282			-		-							28,094
Andreas Held - shares issued for cash (01/30/18)		100,000		100											-			881			-		-							981
Cuong Tran - shares issued for service (01/30/18)		100,000		100											-			881			-		-							981
Crown Bridge Partners LLC - shares issued for conversion of note (02/08/18)		2,509,693		2,510											-			20,319			-		-							22,829
Henry Fahman - shares issued for accrued salaries (02/08/18))		4,746,084		4,746											-			145,254			-		-							150,000
Tina Phan - shares issued for accrued salaries (02/08/18)		1,898,434		1,898											-			58,102			-		-							60,000
Crown Bridge Partners LLC - shares issued for exercise of warrants (02/28/18)		4,744,007		4,744											-			163,846			-		-							168,590
Crown Bridge Partners LLC - shares issued for exercise of warrants (04/13/18)		4,653,954		4,654											-			69,143			-		-							73,797
Power Up Lending Group - shares issued for conversion of note (4/19/18)		1,169,591		1,170											-			39,902			-		-							41,072
Power Up Lending Group - shares issued for conversion of note (4/23/18)		1,127,820		1,128											-			29,513			-		-							30,641
Power Up Lending Group - shares issued for conversion of note (4/24/18)		295,156		295											-			4,544			-		-							4,839
Crown Bridge Partners LLC - shares issued for conversion of note (05/25/18)		3,159,521		3,160											-			86,302			-		-							89,462
Henry Fahman - shares issued for accrued salaries (04/27/18))		11,574,074		11,574											-			288,426			-		-							300,000
Tina Phan - shares issued for accrued salaries (04/27/18)		4,629,630		4,630											-			115,370			-		-							120,000
Einstein Investments LLC - shares issued for conversion of note (06/04/18)		3,149,607		3,150											-			46,850			-		-							50,000
Crown Bridge Partners LLC - shares issued for exercise of warrants (06/21/18)		6,048,786		6,049											-			290,318			-		-							296,367
Buu Chung - shares issued for conversion of note (06/26/18)		157,604		158											-			2,842			-		-							3,000
Net income (loss) for the year ended June 30, 2018																						$	(2,026,320	)						(2,026,320	)
Balance at June 30, 2018		135,893,815	$	382,920			10,000,000	$	314,100			-484,767		$	(44,170	)	$	33,887,240		$	751,962		40,551,299		$	(33,000	)	$447,500	$	(4,844,747	)
Crown Bridge Partners (01/15/2019) *		23,000,000		23,000														(7,330	)											15,670
Power Up Lending Group (01/15/2019) *		22,310,345		22,310														(189	)											22,121
Auctus Fund, LLC (01/15/2019) *		25,000,000		25,000														(5,982	)											19,018
Power Up Lending Group (01/17/2019) *		22,316,327		22,316														(3,694	)											18,622
Power Up Lending Group (01/22/2019) *		22,304,348		22,304														(4,938	)											17,366
Power Up Lending Group (01/23/2019) *		33,341,463		33,341														(10,215	)											23,126
JSJ Investments, Inc. (01/24/2019) *		31,658,523		31,659														(6,394	)											25,265
Power Up Lending Group (01/24/2019) *		33,342,857		33,343														(13,623	)											19,720
Auctus Fund, LLC (01/28/2019) *		33,000,000		33,000														(24,293	)											8,707
EMA Financial LLC (01/28/2019) *		39,370,000		39,370														(26,444	)											12,926
Power Up Lending Group (01/28/2019) *		34,844,828		34,845														(19,774	)											15,071
JSJ Investments, Inc. (01/29/2019) *		38,663,736		38,664														(19,371	)											19,293
Auctus Fund, LLC (02/04/2019) *		39,373,800		39,374														(27,551	)											11,823
JSJ Investments, Inc. (02/04/2019) *		45,811,785		45,812														(27,246	)											18,566
ONE44 Capital LLC (02/04/2019) *		45,955,682		45,956														(27,891	)											18,065
EMA Financial LLC (02/07/2019) *		53,000,000		53,000														(38,802	)											14,198
Auctus Fund, LLC (02/08/2019) *		37,070,000		37,070														(25,998	)											11,072
JSJ Investments, Inc. (02/08/2019) *		52,237,707		52,238														(31,134	)											21,104
Power Up Lending Group (02/20/2019) *		60,264,706		60,265														(22,999	)											37,266
Auctus Fund, LLC (02/21/2019) *		63,000,000		63,000														(53,518	)											9,482
EMA Financial LLC (02/21/2019) *		63,300,000		63,300														(50,434	)											12,866
Power Up Lending Group (02/21/2019) *		60,235,294		60,235														(41,994	)											18,241
Power Up Lending Group (02/25/2019) *		72,588,235		72,588														(50,683	)											21,905
Andreas Held (2/25/2019) - issued for cash		9,722,222		9,722														(6,222	)											3,500
JSJ Investments, Inc. (02/26/2019) *		65,250,756		65,251														(45,186	)											20,065
Auctus Fund, LLC (02/27/2019) *		79,900,000		79,900														(67,616	)											12,284
Power Up Lending Group (02/28/2019) *		55,791,667		55,792														(45,113	)											10,679
EMA Financial LLC (02/28/2019) *		79,900,000		79,900														(69,277	)											10,623
ONE44 Capital LLC (02/28/2019) *		80,924,545		80,925														(64,848	)											16,077
JSJ Investments, Inc. (02/28/2019) *		78,534,484		78,534														(62,940	)											15,594
Crown Bridge Partners (3/04/2019) *		90,000,000		90,000														(77,625	)											12,375
Power Up Lending Group (3/04/2019) *		72,583,333		72,583														(20,603	)											51,980
Power Up Lending Group (03/05/2019) *		72,500,000		72,500														(57,089	)											15,411
EMA Financial LLC (3/05/2019) *		98,600,000		98,600														(85,259	)											13,341
Crown Bridge Partners (3/05/2019) *		89,986,285		89,986														(81,558	)											8,428
ONE44 Capital LLC (3/06/2019) *		86,816,909		86,817														(69,612	)											17,205
LG Capital Funding LLC (3/07/2019) *		124,266,800		124,267														(111,935	)											12,332
JSJ Investments, Inc. (3/07/2019) *		104,878,552		104,879														(88,046	)											16,833
Auctus Fund, LLC (3/08/2019) *		124,100,000		124,100														(107,631	)											16,469
Power Up Lending Group (3/08/2019) *		106,666,667		106,667														(95,386	)											11,281
ONE44 Capital LLC (3/11/2019) *		146,851,273		146,851														(132,200	)											14,651
Crown Bridge Partners (3/12/2019) *		153,000,000		153,000														(142,527	)											10,473
EMA Financial LLC (3/12/2019) *		154,000,000		154,000														(143,741	)											10,259
Power Up Lending Group (3/12/2019) *		87,333,333		87,333														(78,023	)											9,310
EMA Financial LLC (3/14/2019) *		174,000,000		174,000														(162,288	)											11,712
ONE44 Capital LLC (3/14/2019) *		162,434,909		162,435														(146,221	)											16,214
Crown Bridge Partners (3/18/2019) *		190,000,000		190,000														(176,890	)											13,110
Power Up Lending Group (3/19/2019) *		143,833,333		143,833														(128,527	)											15,306
LG Capital Funding LLC (3/19/2019) *		200,628,400		200,628														(180,638	)											19,990
JSJ Investments, Inc. (3/19/2019) *		187,464,854		187,465														(169,982	)											17,483
Auctus Fund, LLC (3/20/2019) *		200,389,000		200,389														(184,752	)											15,637
Crown Bridge Partners (3/20/2019) *		200,000,000		200,000														(186,169	)											13,831
EMA Financial LLC (3/20/2019) *		226,900,000		226,900														(211,407	)											15,493
Power Up Lending Group (3/22/2019) *		190,833,333		190,833														(170,481	)											20,352
Power Up Lending Group (3/25/2019) *		267,666,667		267,667														(239,110	)											28,557
Crown Bridge Partners (3/25/2019) *		258,000,000		258,000														(239,972	)											18,028
Crown Bridge Partners (3/27/2019) *		293,000,000		293,000														(272,457	)											20,543
Power Up Lending Group (3/28/2019) *		178,833,333		178,833														(162,009	)											16,824
Auctus Fund, LLC (3/28/2019) *		93,212,950		93,213														(86,195	)											7,018
ONE44 Capital LLC (3/28/2019) *		304,693,455		304,693														(274,313	)											30,380
Power Up Lending Group (4/01/2019) *		337,333,333		337,333														(303,323	)											34,010
JSJ Investments, Inc. (4/02/2019) *		262,927,251		262,927														(240,261	)											22,666
Power Up Lending Group (4/02/2019) *		237,333,333		337,333														(313,602	)											23,731
Auctus Fund, LLC (4/03/2019) *		337,387,300		337,387														(312,206	)											25,181
Andreas Held (4/24/2019) - issued for cash		11,666,667		11,667														(10,267	)											1,400
Power Up Lending Group (4/29/2019) *		84,000,000		84,000														(76,213	)											7,787
LG Capital Funding LLC (4/30/2019) *		400,958,800		400,959														(360,373	)											40,586
JSJ Investments, Inc. (5/09/2019) *		413,210,892		413,211														(369,908	)											43,303
ONE44 Capital LLC (5/21/2019) *		419,103,273		419,103														(366,743	)											52,360
Crown Bridge Partners (5/24/2019) *		277,000,000		277,000														(252,673	)											24,327
JSJ Investments, Inc. (6/12/2019) *		467,567,286		467,567														(414,703	)											52,864
Net income (loss) for the year ended June 30, 2019																							(2,929,661	)
Balance at June 30, 2019		9,705,762,461		9,982,862	**		10,000,000		(314,100	)		(484,767	)		(44,170	)		59,535,476					(42,688,547	)		35,500				(6,002,724	)

Note: *:	Issued for conversions of promissory notes
**:	Par value of $0.04 per share prior to 4/13/2009 and $0.001 per share after 4/13/2009

The accompanying notes form an integral part of these audited consolidated financial statements

F-5

PHI GROUP, INC. AND SUBSIDIARIES

(FORMERLY PROVIDENTIAL HOLDINGS, INC.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – NATURE OF BUSINESS

BACKGROUND

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of PHI Group, Inc., its wholly owned subsidiaries (1) American Pacific Resources, Inc., a Wyoming corporation (100%), (2) PHI Capital Holdings, Inc. (name changed to PHILUX Capital Advisors, Inc. on June 03, 2020), a Wyoming corporation (100%), and (3) PHI Luxembourg Development S.A., a Luxembourg corporation (100%), collectively referred to as the “Company.” All significant inter-company transactions have been eliminated in consolidation.

F-6

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents.

MARKETABLE SECURITIES

The Company’s securities are classified as available-for-sale and, as such, are carried at fair value. Securities classified as available-for-sale may be sold in response to changes in interest rates, liquidity needs, and for other purposes.

Each investment in marketable securities typically represents less than twenty percent (20%) of the outstanding common stock and stock equivalents of the investee, and each security is quoted on a national exchange or on the OTC Markets. As such, each investment is accounted for in accordance with the provisions of ASC 320 (previously SFAS No. 115).

Unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported as a separate component of stockholder’s equity. Realized gains and losses for securities classified as available-for-sale are reported in earnings based upon the adjusted cost of the specific security sold. On June 30, 2019 and 2018 the marketable securities have been recorded at $213,485 and $1,100,483, respectively based upon the fair value of the marketable securities at that time.

ACCOUNTS RECEIVABLE

Management reviews the composition of accounts receivable and analyzes historical bad debts. As of June 30, 2019, the Company wrote off $432,000 of accounts receivable from the previous fiscal year due to non-collectibility.

IMPAIRMENT OF LONG-LIVED ASSETS

Effective January 1, 2002, the Company adopted ASC 350 (Previously SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”), which addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and the accounting and reporting provisions of APB Opinion No. 30, “Reporting the Results of Operations for a Disposal of a Segment of a Business.” The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 350. ASC 350 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Maintenance and repair costs are charged to expense as incurred; costs of major additions and betterments are capitalized. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in income. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to ten years.

F-7

DEPRECIATION AND AMORTIZATION

The cost of property and equipment is depreciated over the estimated useful lives of the related assets. Depreciation and amortization of fixed assets are computed on a straight-line basis.

NET EARNINGS (LOSS) PER SHARE

The Company adopted the provisions of ASC 260 (previously SFAS 128). ASC 260 eliminates the presentation of primary and fully diluted earnings per share (“EPS”) and requires presentation of basic and diluted EPS. Basic EPS is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding for the period and common stock equivalents outstanding at the end of the period.

The net earnings (loss) per share is computed as follows:

	2019			2018
Basic and diluted net loss per share:
Numerator:
Net income (loss)	$	(2,929,661	)	$	(2,026,320	)
Denominator:
Basic weighted average number of common shares outstanding		2,813,015,265			72,797,797
Basic net income (loss) per share	$	(0.00	)	$	(0.03	)
Diluted weighted average number of common shares outstanding		2,813,015,265			72,797,797
Diluted net income (loss) per share	$	(0.00	)	$	(0.03	)

STOCK-BASED COMPENSATION

Effective July 1, 2006, the Company adopted ASC 718-10-25 (previously SFAS 123R) and accordingly has adopted the modified prospective application method. Under this method, ASC 718-10-25 is applied to new awards and to awards modified, repurchased, or cancelled after the effective date. Additionally, compensation cost for the portion of awards that are outstanding as of the date of adoption for which the requisite service has not been rendered (such as unvested options) is recognized over a period of time as the remaining requisite services are rendered.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value - Definition and Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available.

Valuation techniques that are consistent with the market or income approach are used to measure fair value. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Level 2 - Valuations based on inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

F-8

Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including; type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction.

To the extent that valuation is based upon models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for investments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy in which the fair value measurement falls in its entirety is determined based upon the lowest level input that is significant to the fair value measurement.

Fair Value - Valuation Techniques and Inputs

The Company holds and may invest public securities traded on public exchanges or over-the-counter (OTC), private securities, real estate, convertible securities, interest bearing securities and other types of securities and has adopted specific techniques for their respective valuations.

Equity Securities in Public Companies

Unrestricted

The Company values investments in securities that are freely tradable and listed on major securities exchanges at their last reported sales price as of the valuation date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Securities traded on inactive markets or valued by reference to similar instruments are generally categorized in Level 2 or 3 of the fair value hierarchy.

Restricted

Securities traded on public exchanges or over-the-counter (OTC) where there are formal restrictions that limit (i.e. Rule 144 holding periods and underwriter’s lock-ups) their sale shall be valued at the closing price on the date of valuation less applicable discounts. The Company may apply a discount to securities with Rule 144 restrictions. Additional discounts may be assessed if the Company believes there are other mitigating factors which warrant the additional discounting. When determining potential additional discounts, factors that will be taken into consideration include, but are not limited to; securities’ trading characteristics, volume, length and overall impact of the restriction as well as other macro-economic factors. Valuations should be discounted appropriately until the securities may be freely traded.

If it has been determined that the exchange or OTC listed price does not accurately reflect fair market value, the Company may elect to treat the security as a private company and apply an alternative valuation method.

Investments in restricted securities of public companies may be included in Level 2 of the fair value hierarchy. However, to the extent that significant inputs used to determine liquidity discounts are not observable, investments in restricted securities in public companies may be categorized in Level 3 of the fair value hierarchy.

F-9

The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, marketable securities, short-term notes payable, convertible notes, derivative liability and accounts payable.

As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheet. This is primarily attributed to the short maturities of these instruments.

Effective July 1, 2008, the Company adopted ASC 820 (previously SFAS 157), Fair Value Measurements and adopted this Statement for the assets and liabilities shown in the table below. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about the use of fair value measurements. The adoption of ASC 820 did not have a material impact on our fair value measurements. ASC 820 permits the Company to defer the recognition and measurement of the nonfinancial assets and nonfinancial liabilities until January 1, 2010. At June 30, 2018, the Company did not have any nonfinancial assets or nonfinancial liabilities that are recognized or disclosed at fair value. ASC 820 requires that financial assets and liabilities that are reported at fair value be categorized as one of the types of investments based upon the methodology mentioned in Level 1, Level 2 and Level 3 above for determining fair value.

Assets measured at fair value on a recurring basis are summarized below. The Company also has convertible notes and derivative liabilities as disclosed in this report that are measured at fair value on a regular basis until paid off or exercised.

The Company uses various approaches to measure fair value of available-for-sale securities, while applying the three-level valuation hierarchy for disclosures, specified in ASC 820. Our Level 1 securities were measured using the quoted prices in active markets for identical assets and liabilities.

The company’s policy regarding the transfers in and/or out of Level 3 depends on the trading activity of the security, the volatility of the security, and other observable units which clearly represents the fair value of the security. If a level 3 security can be measured using a more fairly represented fair value, we will transfer these securities either into Level 1 or Level 2, depending on the type of inputs.

REVENUE RECOGNITION STANDARDS

ASC 606-10 provides the following overview of how revenue is recognized from an entity’s contracts with customers: An entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.

Step 4: Allocate the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service).

The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer service to a customer). For performance obligations satisfied over time, an entity recognizes revenue over time by selecting an appropriate method for measuring the entity’s progress toward complete satisfaction of that performance obligation. (Paragraphs 606-10 25-23 through 25-30).

F-10

In addition, ASC 606-10 contains guidance on the disclosures related to revenue, and notes the following:

It also includes a cohesive set of disclosure requirements that would result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. Specifically, Section 606-10-50 requires an entity to provide information about:

- Revenue recognized from contracts with customers, including disaggregation of revenue into appropriate categories.

- Contract balances, including the opening and closing balances of receivables, contract assets, and contract liabilities.

- Performance obligations, including when the entity typically satisfies its performance obligations and the transaction prices is that is allocated to the remaining performance obligations in a contract.

- Significant judgments, and changes in judgments, made in applying the requirements to those contracts.

Additionally, Section 340-40-50 requires an entity to provide quantitative and/or qualitative information about assets recognized from the costs to obtain or fulfill a contract with a customer.

The Company’s revenue recognition policies are in compliance with ASC 606-10. The Company recognizes consulting and advisory fee revenues in accordance with the above-mentioned guidelines and expenses are recognized in the period in which the corresponding liability is incurred.

ADVERTISING

The Company expenses advertising costs as incurred. Advertising costs for the years ended June 30, 2019 and 2018 were $50,377 and $36,221, respectively. The increase in advertising expenses is primarily due to investor relations expenses of $31,507 during the fiscal year ended June 30, 2019.

COMPREHENSIVE INCOME (LOSS)

ASC 220-10-45 (previously SFAS 130, Reporting Comprehensive Income) establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity, except those resulting from investments by owners and distributions to owners. Among other disclosures, SFAS No. 130 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. As of June 30, 2019 and 2018, respectively, accumulated other comprehensive income (loss) of $0 and $751,962 are presented on the accompanying consolidated balance sheets.

INCOME TAXES

The Company accounts for income taxes in accordance with ASC 740 (previously SFAS No. 109, “Accounting for Income Taxes”). Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

F-11

REPORTING OF SEGMENTS

ASC 280 (previously Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information), which supersedes Statement of Financial Accounting Standards No. 14, Financial Reporting for Segments of a Business Enterprise, establishes standards for the way that public enterprises report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operated in one revenue-generating segment during the year ended June 30, 2019 and two segments in the year ended June 30, 2018.

RISKS AND UNCERTAINTIES

In the normal course of business, the Company is subject to certain risks and uncertainties. The Company provides its service and receives marketable securities upon execution of transactions. Consequently, the value of the securities received from customers can be affected by economic fluctuations and each customer’s business growth. The actual realized value of these securities could be significantly different than recorded value.

RECENT ACCOUNTING PRONOUNCEMENTS

Update No. 2018-13 – August 2018

Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement

Modifications: The following disclosure requirements were modified in Topic 820:

1. In lieu of a rollforward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities.

2. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly.

3. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.

Additions: The following disclosure requirements were added to Topic 820; however, the disclosures are not required for nonpublic entities:

1. The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period.

2. The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.

The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

Update No. 2018-07 – June 2018

Compensation – Stock Compensation (Topic 718)

Improvements to Nonemployee Share-Based Payment Accounting

F-12

Main Provisions: The amendments in this Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers.

The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.

Update No. 2017-13 - September 2017

Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606)

FASB Accounting Standards Updates No. 2014-09, Revenue from Contracts with Customers (Topic 606), issued in May 2014 and codified in ASC Topic 606, Revenue from Contracts with Customers, and No. 2016-02.

The transition provisions in ASC Topic 606 require that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting 3 periods beginning after December 15, 2017, including interim reporting periods within that reporting period. FN2 All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.

Update No. 2016-10 - April 2016

Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing

The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

1. Identify the contract(s) with a customer.

2. Identify the performance obligations in the contract.

3. Determine the transaction price.

4. Allocate the transaction price to the performance obligations in the contract.

5. Recognize revenue when (or as) the entity satisfies a performance obligation.

The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.

The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company’s financial statements. In most cases, management has determined that the implementation of these pronouncements would not have a material impact on the financial statements taken as a whole.

NOTE 3 – LOANS RECEIVABLE

Loans receivable consist of the following at June 30, 2019 and 2018:

Loans Receivable	June 30, 2019		June 30, 2018
Loan to American Laser Healthcare, Inc.	$	1,605	$	1,065
Total	$	1,605	$	1,065

F-13

NOTE 4 – OTHER ASSETS

The Other Assets comprise of the following as of June 30, 2019 and 2018:

	2019		2018
Investments	$	5,000	$	25,005,000
Contract Assets	$	-	$	697,841
Total Other Assets	$	5,000	$	25,702,841

Investments as of June 30, 2019 consist of a $5,000 investment in AQuarius Power, Inc., a renewable energy technology company.

The Company’s marketable securities are classified as available-for-sale and, as such, are carried at fair value. All of the securities are comprised of shares of common stock of the investee. Securities classified as available-for-sale may be sold in response to changes in interest rates, liquidity needs, and for other purposes. Each investment in marketable securities represents less than twenty percent (20%) of the outstanding common stock and stock equivalents of the investee, and each security is nationally quoted on the National Association of Securities Dealers OTC Bulletin Board (“OTCBB”) or the OTC Markets. As such, each investment is accounted for in accordance with the provisions of SFAS No. 115.

Marketable securities owned by the Company and classified as available for sale as of June 30, 2019 consisted of 905,000 shares of Myson Group, Inc. (formerly Vanguard Mining Corporation) and 292,050,000 shares of Sports Pouch Beverage Company, both public companies traded on the OTC Markets (Trading symbols MYSN and SPBV, respectively). The fair value of the marketable securities recorded as of June 30, 2019 was $ 213,485. The Company wrote off 32,900,106 shares of Myson Group, Inc. as worthless as of June 30, 2019.

Securities available for sale	Level 1		Level 2		Level 3		Total
June 30, 2019		-	$	9,050	$	204,435	$	213,485
June 30, 2018	$	-	$	253,538	$	864,945	$	1,110,483

During the fiscal year ended June 30, 2018, there was no transfer of securities from level 3 to level 2.

NOTE 6 – PROPERTY AND EQUIPMENT

As of June 30, 2019 the Company did not have any property or equipment.

As of June 30, 2012, the Company recognized the businesses of PHI Gold Corp. (formerly PHI Mining Corporation), Providential Vietnam Ltd., PHI Energy Corp., and Philand Ranch Ltd., a United Kingdom corporation, together with its wholly-owned subsidiaries Philand Corporation (USA), Philand Ranch Ltd. (Singapore) and Philand Vietnam Ltd. as discontinued operations for practical business and accounting purposes. As of June 30, 2018, the Company had a balance of $1,255,037 as Long-term Liabilities from Discontinued Operations, consisting of $954,337 from Philand Ranch Ltd., $215,000 from preferred stock of Providential Holdings, Inc., a former subsidiary of the Company, and $85,700 in contingency liabilities. As of June 30, 2019, the Company derecognized and extinguished these amounts from its balance sheet pursuant to statutory limit.

NOTE 8 – CURRENT LIABILITIES

Current liabilities of the Company consist of the followings as of June 30, 2019 and 2018:

	June 30, 2019		June 30, 2018
Accounts payable	$	189,152	$	116,063
Accrued expenses	$	2,389,111	$	392,205
Notes payable (net)	$	605,603	$	1,336,552
Due to Officers and Directors	$	890,897	$	233,577
Other current payable	$	-	$	92,781
Contract liabilities	$	-	$	697,841
Derivative liabilities	$	1,307,421	$	738,814
Advance from customers	$	438,000	$	-
Sub-fund obligations	$	1,266,634	$	-
Total Current Liabilities	$	7,086,819	$	3,607,833

F-14

ACCRUED EXPENSES: Accrued expenses as of June 30, 2019 consist of $1,237,651 in accrued salaries and $1,151,949 in accrued interest from short-term notes.

NOTES PAYABLE (NET): Notes payable consist of $331,700 in short-term notes payable and $437,725 in convertible promissory notes minus $163,822 of discount.

ADVANCES FROM CUSTOMERS

The Company recorded $438,000 as Advances from Customers to reserve for $288,219 of consulting fees previously received from a client and $149,781 in accrued interest. The Company was not able to complete the consulting services due to the client’s inability to provide GAAP-compliant audited financial statements in order to file a registration statement with the Securities and Exchange Commission.

SUB-FUND OBILGATIONS: During the fiscal year ended June 30, 2019, the Company received $800,000 from European Plastic Joint Stock Company towards the expenses and capitalization for setting up the energy sub-fund and $466,634 from Saigon Pho Palace Joint Stock Company towards the expenses and capitalization for setting up the real estate sub-fund respectively under the master PHILUX Global Funds. The Company recorded these amounts as liabilities until these sub-funds are set up and activated, at which time the sub-fund participants will receive 49% of the general partners’ portion of ownership in the relevant sub-funds for a total contribution of $2,000,000 each.

NOTE 9 – LONG-TERM LIABILITIES

For the FY ended June 30, 2019, the Company reclassified all Long-term Liabilities as Current Liabilities. As of June 30, 2018, Long-term liabilities consist of:

	June 30, 2019		June 30, 2018
Accrued Expenses:	$	-	$	1,063,481
Accrued Interest:	$	-	$	2,005,815
Advances from Customers:	$	-	$	288,219
Demand Promissory Note:	$	-		24,048,500
Liabilities from Discontinued Operations:	$	-	$	1,040,037
Preferred Stock Liabilities from Discontinued Operations:	$	-	$	215,000
Total Long-term Liabilities	$	-	$	28,661,052

DEMAND PROMISSORY NOTE

During the fiscal year ended June 30, 2018, a balance of $24,048,5000 in demand promissory note was owed to Rush Gold Royalty, Inc., a Wyoming corporation, in connection with the acquisition of a 51% ownership in twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County, Oregon, U.S.A by American Pacific Resources, Inc., a subsidiary of the Company. As of June 30, 2019, the Company derecognized the balance of said promissory note until a new independent valuation report of the mining claims is completed.

F-15

EXTINGUISHMENT OF LIABILTIES FROM DISCONTINUED OPERATIONS

As of June 30, 2019, the Company extinguished $1,040,037 that was previously reserved in connection with the potential contingent liabilities concerning the discontinued operations of PHI Gold Corp. (formerly PHI Mining Corporation), Providential Vietnam Ltd., PHI Energy Corp., and Philand Ranch Ltd., a United Kingdom corporation, together with its wholly-owned subsidiaries Philand Corporation (USA), Philand Ranch Ltd. (Singapore) and Philand Vietnam Ltd. since June 30, 2012 and $215,000 of preferred stock of Providential Securities, Inc., a previous subsidiary of the Company that was discontinued in the year 2000.

NOTE 10 - DUE TO OFFICERS AND DIRECTORS

Due to officer, represents loans and advances made by officers and directors of the Company and its subsidiaries, unsecured and due on demand. As of June 30, 2019 and 2018, the balances were $528,517 and $233,577, respectively.

Officers/Directors	June 30, 2019		June 30, 2018
Henry Fahman		227,547		157,727
Tam Bui		663,350		63,350
Lawrence Olson		-		12,500
Total	$	890,897	$	233,577

NOTE 11 – LOANS AND PROMISSORY NOTES

SHORT TERM NOTES PAYABLE:

In the course of its business, the Company has obtained short-term loans from individuals and institutional investors and from time to time raised money by issuing restricted common stock of the Company under the auspices of Rule 144. As of June 30, 2019, the Company had $331,700 in short-term notes payable with $1,151,460 accrued and unpaid interest. These notes bear interest rates ranging from 0% to 36% per annum.

CONVERTIBLE PROMISSORY NOTES:

As of June 30, 2019, the principal balance of the outstanding convertible notes was $437,725, with a total discount of $163,822 and total derivative liabilities of $1,307,421. The Company relies on professional third-party valuation to record the value of derivative liabilities, discounts, and changes in fair value of derivatives in connection with these convertible notes and warrants, if any, that are related to the convertible notes. The Company intends to repay these notes in cash as much as practical.

NOTE 12 – LITIGATION - EXTINGUISHMENT OF SETTLED LITIGATIONS

As of June 30, 2019 the Company extinguished $172,091 in connection with Case No. 00CC13067 that was filed in Orange County Superior Court, CA on October 31, 2000, for alleged breach of contract for damages in the sum of $75,000 plus pre-judgment interest, costs incurred in connection with the complaint, and other relief. Without admitting or denying any allegations, the Company reached a settlement agreement with the Claimants, paid $2,500 and agreed to an entry of judgment for $79,000. Until June 30, 2018 the Company accrued $172,091 for potential liabilities in connection with this case, but decided to extinguish this amount as of June 30, 2019 in light of the time that has lapsed since the inception of the case and the absence of any further action from the Claimants.

As of June 30, 2019, the Company extinguished $90,000 in connection with Case No. BC 426831 that was filed with the Superior Court of the State of California for the County of Los Angeles on November 24, 2009 by William Davidson against Martin Doan, Henry Fahman, Benjamin Tran, HRCiti Corporation, and Providential Capital, Inc. (collectively referred to as “Defendants”). On July 09, 2012 William Davidson and PHI Capital Holdings, Inc. (formerly Providential Capital, Inc.), a subsidiary of the Company, reached a settlement agreement whereby PHI Capital agreed to pay William Davidson a total of $200,000 over a period of nineteen months beginning September 1, 2012. Since November 30, 2012, William Davidson has converted portions of the total amount into common stock of PHI Group, Inc. in lieu of cash payment. Until June 30, 2018, the Company accrued $90,000 as the required liability associated with the balance of this case, but decided to extinguish this amount as of June 30, 2019 in light of the time that has lapsed since the inception of the case and the absence of any further action from William Davidson.

F-16

NOTE 13 – PAYROLL TAX LIABILITIES

The payroll liabilities are accrued and recorded as accrued expenses in the consolidated balance sheet. During the fiscal year ended June 30, 2014, the Company paid $41,974.22 to the Internal Revenue Service and $ 19,289.94 to the State of California Employment Development Department towards the balance of $118,399 of payroll tax, penalties and interest claimed by these agencies. The Company has not resolved the remaining balances with the Internal Revenue Service and the State of California Employment Department as of June 30, 2019. As of March 05, 2021, the total balance as most recently notified by the Internal Revenue Service is estimated to be $4,704.

NOTE 14 – BASIC AND DILUTED NET LOSS PER SHARE

Net loss per share is calculated in accordance with SFAS No. 128, “Earnings per Share”. Under the provision of SFAS No. 128, basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding for the period and common stock equivalents outstanding at the end of the period. Basic and diluted weighted average numbers of shares for the year ended June 30, 2019 were the same since the inclusion of Common stock equivalents is anti-dilutive.

NOTE 15 – STOCKHOLDER’S EQUITY

As of June 30, 2019, the total number of authorized capital stock of the Company was shares with a par value of $0.001 per share, consisting of 30,500,000,000 shares of voting Common Stock with a par value of $0.001 per share and 500,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the Preferred Stock will be determined by the Board of Directors of the Company.

Treasury Stock

The balance of treasury stock as of June 30, 2019 was 487,767 shares valued at $44,170 based on cost basis.

F-17

Common Stock

During the fiscal year ended June 30, 2019, the Company issued the following amounts of its Common Stock:

Date	Beginning balance (7/01/18)	Issuances		135,893,815
7/19/18	Einstein Investments LLC		1,951,220		137,845,035
7/19/18	Power Up Lending Group		1,200,000		139,045,035
7/23/18	Power Up Lending Group		1,805,607		140,850,642
7/26/18	JSJ Investments, Inc.		4,260,531		145,111,173
7/27/18	Crown Bridge Partners		3,356,444		148,467,617
7/30/18	Power Up Lending Group		2,061,856		150,529,473
8/2/18	Power Up Lending Group		1,491,667		152,021,140
8/6/18	Einstein Investments LLC		2,298,851		154,319,991
8/17/18	JSJ Investments, Inc.		6,971,290		161,291,281
8/23/18	Power Up Lending Group		2,205,882		163,497,163
8/27/18	Power Up Lending Group		3,066,667		166,563,830
8/31/18	Auctus Fund, LLC		1,500,000		168,063,830
8/31/18	Redchip Companies Inc.		500,000		168,563,830
8/31/18	SRS Consulting Ltd.		500,000		169,063,830
9/6/18	Adar Bays LLC		1,022,913		170,086,743
9/20/18	Einstein Investments LLC		1,734,105		171,820,848
9/21/18	Auctus Fund, LLC		1,500,000		173,320,848
9/26/18	Andreas Held		164,722		173,485,570
10/16/18	Adar Bays LLC		8,603,239		182,088,809
10/17/18	Auctus Fund, LLC		2,500,000		184,588,809
10/18/18	Crown Bridge Partners		4,500,000		189,088,809
10/22/18	Einstein Investments LLC		8,782,806		197,871,615
10/25/18	JSJ Investments, Inc.		9,044,851		206,916,466
10/26/18	Power Up Lending Group		6,097,561		213,014,027
10/29/18	Power Up Lending Group		2,518,919		215,532,946
10/29/18	Crown Bridge Partners		6,700,000		222,232,946
10/30/18	Auctus Fund, LLC		3,700,000		225,932,946
11/2/18	Adar Bays LLC		10,746,606		236,679,552
11/2/18	Crown Bridge Partners		11,270,000		247,949,552
11/6/18	Adar Bays LLC		2,464,270		250,413,822
11/7/18	JSJ Investments, Inc.		11,070,714		261,484,536
11/13/18	Auctus Fund, LLC		7,000,000		268,484,536
11/14/18	Crown Bridge Partners		10,540,000		279,024,536
11/26/18	JSJ Investments, Inc.		13,672,202		292,696,738
11/27/18	Auctus Fund, LLC		10,000,000		302,696,738
11/29/18	Crown Bridge Partners		9,093,444		311,790,182
12/4/18	Auctus Fund, LLC		15,000,000		326,790,182
12/6/18	Crown Bridge Partners		15,558,000		342,348,182
12/11/18	JSJ Investments, Inc.		15,277,718		357,625,900
12/12/18	Crown Bridge Partners		17,000,000		374,625,900
12/13/18	Auctus Fund, LLC		16,000,000		390,625,900
12/21/18	Auctus Fund, LLC		16,000,000		406,625,900
12/24/18	Crown Bridge Partners		19,492,000		426,117,900
12/31/18	Crown Bridge Partners		21,262,000		447,379,900
1/8/19	Auctus Fund, LLC		20,000,000		467,379,900
1/9/19	JSJ Investments, Inc.		19,140,669		486,520,569
1/9/19	Crown Bridge Partners		22,324,000		508,844,569
1/11/19	Power Up Lending Group		22,313,433		531,158,002
1/14/19	Power Up Lending Group		22,311,475		553,469,477
1/15/19	Power Up Lending Group		22,312,500		575,781,977
1/15/19	Crown Bridge Partners		23,000,000		598,781,977
1/15/19	Power Up Lending Group		22,310,345		621,092,322
1/15/19	Auctus Fund, LLC		25,000,000		646,092,322
1/17/19	Power Up Lending Group		22,316,327		668,408,649
1/22/19	Power Up Lending Group		22,304,348		690,712,997
1/23/19	Power Up Lending Group		33,341,463		724,054,460
1/24/19	JSJ Investments, Inc.		31,658,523		755,712,983
1/24/19	Power Up Lending Group		33,342,857		789,055,840
1/28/19	Auctus Fund, LLC		33,000,000		822,055,840
1/28/19	EMA Financial LLC		39,370,000		861,425,840
1/28/19	Power Up Lending Group		34,844,828		896,270,668
1/29/19	JSJ Investments, Inc.		38,663,736		934,934,404

F-18

2/4/19	Auctus Fund, LLC	39,373,800	974,308,204
2/4/19	JSJ Investments, Inc.	45,811,785	1,020,119,989
2/4/19	ONE44 Capital LLC	45,955,682	1,066,075,671
2/7/19	EMA Financial LLC	53,000,000	1,119,075,671
2/8/19	Auctus Fund, LLC	37,070,000	1,156,145,671
2/8/19	JSJ Investments, Inc.	52,237,707	1,208,383,378
2/20/19	Power Up Lending Group	60,264,706	1,268,648,084
2/21/19	Auctus Fund, LLC	63,000,000	1,331,648,084
2/21/19	EMA Financial LLC	63,300,000	1,394,948,084
2/21/19	Power Up Lending Group	60,235,294	1,455,183,378
2/25/19	Power Up Lending Group	72,588,235	1,527,771,613
2/25/19	Andreas Held	9,722,222	1,537,493,835
2/26/19	JSJ Investments, Inc.	65,250,756	1,602,744,591
2/26/19	Auctus Fund, LLC	79,900,000	1,682,644,591
2/28/19	Power Up Lending Group	55,791,667	1,738,436,258
2/28/19	EMA Financial LLC	79,900,000	1,818,336,258
2/28/19	ONE44 Capital LLC	80,924,545	1,899,260,803
2/28/19	JSJ Investments, Inc.	78,534,484	1,977,795,287
3/4/19	Crown Bridge Partners	90,000,000	2,067,795,287
3/4/19	Power Up Lending Group	72,583,333	2,140,378,620
3/5/19	Power Up Lending Group	72,500,000	2,212,878,620
3/5/19	EMA Financial LLC	98,600,000	2,311,478,620
3/5/19	Crown Bridge Partners	89,986,285	2,401,464,905
3/6/19	ONE44 Capital LLC	86,816,909	2,488,281,814
3/7/19	LG Capital Funding LLC	124,266,800	2,612,548,614
3/7/19	JSJ Investments, Inc.	104,878,552	2,717,427,166
3/8/19	Auctus Fund, LLC	124,100,000	2,841,527,166
3/8/19	Power Up Lending Group	106,666,667	2,948,193,833
3/11/19	ONE44 Capital LLC	146,851,273	3,095,045,106
3/12/19	Crown Bridge Partners	153,000,000	3,248,045,106
3/12/19	EMA Financial LLC	154,000,000	3,402,045,106
3/12/19	Power Up Lending Group	87,333,333	3,489,378,439
3/14/19	EMA Financial LLC	174,000,000	3,663,378,439
3/14/19	ONE44 Capital LLC	162,434,909	3,825,813,348
3/18/19	Crown Bridge Partners	190,000,000	4,015,813,348
3/19/19	Power Up Lending Group	143,833,333	4,159,646,681
3/19/19	LG Capital Funding LLC	200,628,400	4,360,275,081
3/19/19	JSJ Investments, Inc.	187,464,854	4,547,739,935
3/20/19	Auctus Fund, LLC	200,389,000	4,748,128,935
3/20/19	Crown Bridge Partners	200,000,000	4,948,128,935
3/20/19	EMA Financial LLC	226,900,000	5,175,028,935
3/22/19	Power Up Lending Group	190,833,333	5,365,862,268
3/25/19	Power Up Lending Group	267,666,667	5,633,528,935
3/25/19	Crown Bridge Partners	258,000,000	5,891,528,935
3/27/19	Crown Bridge Partners	293,000,000	6,184,528,935
3/28/19	Power Up Lending Group	178,833,333	6,363,362,268
3/28/19	Auctus Fund, LLC	93,212,950	6,456,575,218
3/28/19	ONE44 Capital LLC	304,693,455	6,761,268,673
4/1/19	Power Up Lending Group	337,333,333	7,098,602,006
4/2/19	JSJ Investments, Inc.	262,927,251	7,361,529,257
4/2/19	Power Up Lending Group	237,333,333	7,598,862,590
4/3/19	Auctus Fund, LLC	337,387,300	7,936,249,890
4/24/19	Andreas Held	11,666,667	7,947,916,557
4/29/19	Power Up Lending Group	84,000,000	8,031,916,557
4/30/19	LG Capital Funding LLC	400,958,800	8,432,875,357
5/9/19	JSJ Investments, Inc.	413,210,892	8,846,086,249
5/21/19	ONE44 Capital LLC	419,103,273	9,265,189,522
5/24/19	Crown Bridge Partners	277,000,000	9,542,189,522
6/12/19	JSJ Investments, Inc.	467,567,286	10,009,756,808

F-19

As of June 30, 2019, there were 10,009,756,808 shares of the Company’s common stock issued and outstanding.

Preferred Stock

The Company has filed Certificates of Designation and Amendments to Certificate of Designation with the Nevada Secretary of State to designate the Company’s authorized Preferred Stock. As of June 30, 2019 the designations of the Company’s Preferred Stock were as follows:

Class A Preferred Stock

I. DESIGNATIONS, AMOUNTS AND DIVIDENDS

1. Class A Series I Cumulative Convertible Redeemable Preferred Stock

A. Designation: Twenty million (20,000,000) shares of the authorized 500,000,000 shares of Preferred Stock, with a par value of $0.001 per share, are designated as Class A Series I Cumulative Convertible Redeemable Preferred Stock

B. Number of Shares: The number of shares of Class A Series I Preferred Stock authorized shall be twenty million (20,000,000) shares.

C. Dividends: Each holder of Class A Series I Preferred Stock is entitled to receive ten percent (10%) non-compounding cumulative dividends per annum, payable semi-annually.

2. Class A Series II Cumulative Convertible Redeemable Preferred Stock

A. Designation. Twenty-five million (25,000,000) shares of the authorized 500,000,000 shares of Preferred Stock, with a par value of $0.001 per share, are designated Class A Series II Cumulative Convertible Redeemable Preferred Stock (the “Class A Series II Preferred Stock”).

B. Number of Shares. The number of shares of Class A Series II Preferred Stock authorized shall be twenty-five million (25,000,000) shares.

C. Dividends: Each holder of Class A Series II Preferred Stock is entitled to receive eight percent (8%) cumulative dividends per annum, payable semi-annually.

3. Class A Series III Cumulative Convertible Redeemable Preferred Stock

A. Designation. Fifty million (50,000,000) shares of the authorized 500,000,000 shares of Preferred Stock, with a par value of $0.001 per share, are designated as Class A Series III Cumulative Convertible Redeemable Preferred Stock (the “Class A Series III Preferred Stock”).

B. Number of Shares. The number of shares of Class A Series III Preferred Stock authorized shall be fifty million (50,000,000) shares.

C. Dividends: Each holder of Class A Series III Preferred Stock is entitled to receive eight percent (8%) cumulative dividends per annum, payable semi-annually.

II. CONVERSION

1. Conversion of Series I and/or Series II Class A Preferred Stock into Common Stock of PHI Group, Inc.

Each share of the Class A Preferred Stock, either Series I or Series II shall be convertible into the Company’s Common Stock any time after two years from the date of issuance at a Variable Conversion Price (as defined herein) of the Common Stock. The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the average Trading Price for the Company’s Common Stock during the ten (10) trading-day period ending one trading day prior to the date the Conversion Notice is sent by the Holder of the Class A Preferred Stock to the Company via facsimile or email (the “Conversion Date”). “Trading Price” means, for any security as of any date, the closing price on the OTC Markets, OTCQB, NASDAQ Stock Markets, or applicable trading market as reported by a reliable reporting service (“Reporting Service”) mutually acceptable to the Company and Holder of the Class A Preferred Stock.

F-20

2. Conversion of Series I and/or Series II Class A Preferred Stock into Common Stock of a subsidiary of PHI Group, Inc.’s.

Alternatively, each share of the Class A Preferred Stock, either Series I or Series II, may be convertible into Common Stock of a subsidiary of PHI Group, Inc.’s, to be determined by the Company’s Board of Directors, any time after such subsidiary has become a fully-reporting publicly traded company for at least three months, at a Variable Conversion Price (as defined herein). The Variable Conversion Price to be used in connection with the conversion into Common Stock of a subsidiary of PHI Group, Inc.’s shall mean 50% multiplied by the Market Price (as defined herein), representing a discount rate of 50%, of that Common Stock. “Market Price” means the average Trading Price for the Common Stock of said subsidiary of PHI Group, Inc.’s during the ten (10) trading-day period ending one trading day prior to the date the Conversion Notice is sent by the Holder of the Preferred Stock to the Company via facsimile or email (the “Conversion Date”). “Trading Price” means, for any security as of any date, the closing price on the OTC Markets, OTCQB, NASDAQ Stock Markets, NYSE or applicable trading market as reported by a reliable reporting service (“Reporting Service”) mutually acceptable to the Company, said subsidiary and Holder of the Class A Preferred Stock.”

3. Conversion of Class A Series III Preferred Stock of PHI Group, Inc. into Common Stock of American Pacific Plastics, Inc., a subsidiary of PHI Group, Inc.’s.

The entire Class A Series III Preferred Stock of PHI Group, Inc. (i.e. fifty million (50,000,000) shares) may be convertible into eighty percent (80%) American Pacific Plastics, Inc.’s Common Stock which will have been issued and outstanding immediately after such conversion or exchange on a pro rata basis.

4. Conversion Shares.

The amount of shares of Common Stock of PHI Group, Inc., or alternatively, of a subsidiary of PHI Group, Inc.’s, to be received by Holder at the time of conversion of Class A Series I or Series II Preferred Stock of PHI Group, Inc. will be based on the following formula:

		Where	CS:	Common Shares of PHI Group, Inc.,
Amount of CS =	OIP + AUD			or alternatively, of a subsidiary of PHI Group, Inc.’s.
	OIP + AUD
	VCP		OIP:	Original Issue Price of Class A Series I or Series II Preferred Stock of PHI Group, Inc.
			AUD:	Accrued and Unpaid Dividends.
			VCP:	Variable Conversion Price of PHI Common Stock or of a subsidiary of PHI Group, Inc.’s as defined above.

III. REDEMPTION RIGHTS

The Corporation, after a period of two years from the date of issuance, may at any time or from time to time redeem the Class A Preferred Stock, either Series I, Series II or Series III, in whole or in part, at the option of the Company’s Board of Directors, at a price equal to one hundred twenty percent (120%) of the original purchase price of the Class A Preferred Stock or of a unit consisting of any shares of Class A Preferred Stock and any warrants attached thereto, plus, in each case, accumulated and unpaid dividends to the date fixed for redemption.

IV. LIQUIDATION

Upon the occurrence of a Liquidation Event (as defined below), the holders of Class A Preferred Stock are entitled to receive net assets on a pro rata basis. As used herein, “Liquidation Event” means (i) the liquidation, dissolution or winding-up, whether voluntary or involuntary, of the Corporation, (ii) the purchase or redemption by the Corporation of shares of any class of stock or the merger or consolidation of the Corporation with or into any other corporation or corporations, unless (a) the holders of the Class A Preferred Stock receive securities of the surviving corporation having substantially similar rights as the Class A Preferred Stock and the stockholders of the Corporation immediately prior to such transaction are holders of at least a majority of the voting securities of the successor corporation immediately thereafter (the “Permitted Merger”), unless the holders of the shares of Class A Preferred Stock elect otherwise or (b) the sale, license or lease of all or substantially all, or any material part of, the Corporation’s assets, unless the holders of Class A Preferred Stock elect otherwise.

F-21

V. RANK

All shares of the Class A Preferred Stock shall rank (i) senior to the Corporation’s Common Stock and any other class or series of capital stock of the Corporation hereafter created, (ii) pari passu with any class or series of capital stock of the Corporation hereafter created and specifically ranking, by its terms, on par with the Class A Preferred Stock and (iii) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking, by its terms, senior to the Class A Preferred Stock, in each case as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary.

VI. VOTING RIGHTS

1. Class A Series I, II and III Preferred Stock of PHI Group, Inc. shall have no voting rights.

VII. PROTECTION PROVISIONS

So long as any shares of Class A Preferred Stock are outstanding, the Corporation shall not, without first obtaining the majority written consent of the holders of Class A Preferred Stock, alter or change the rights, preferences or privileges of the Class A Preferred Stock so as to affect adversely the holders of Class A Preferred Stock.

VIII. MISCELLANEOUS

A. Status of Redeemed Stock: In case any shares of Class A Preferred Stock shall be redeemed or otherwise repurchased or reacquired, the shares so redeemed, repurchased, or reacquired shall resume the status of authorized but unissued shares of preferred stock, and shall no longer be designated as Class A Preferred Stock.

B. Lost or Stolen Certificates: Upon receipt by the Corporation of (i) evidence of the loss, theft, destruction or mutilation of any Preferred Stock Certificate(s) and (ii) in the case of loss, theft or destruction, indemnity (with a bond or other security) reasonably satisfactory to the Corporation, or in the case of mutilation, the Preferred Stock Certificate(s) (surrendered for cancellation), the Corporation shall execute and deliver new Preferred Stock Certificates. However, the Corporation shall not be obligated to reissue such lost, stolen, destroyed or mutilated Preferred Stock Certificates if the holder of Class A Preferred Stock contemporaneously requests the Corporation to convert such holder’s Class A Preferred Stock into Common Stock.

C. Waiver: Notwithstanding any provision in this Certificate of Designation to the contrary, any provision contained herein and any right of the holders of Class A Preferred granted hereunder may be waived as to all shares of Class A Preferred Stock (and the holders thereof) upon the majority written consent of the holders of the Class A Preferred Stock.

D. Notices: Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt requested) or delivered personally, by nationally recognized overnight carrier or by confirmed facsimile transmission, and shall be effective five (5) days after being placed in the mail, if mailed, or upon receipt or refusal of receipt, if delivered personally or by nationally recognized overnight carrier or confirmed facsimile transmission, in each case addressed to a party as set forth below, or such other address and telephone and fax number as may be designated in writing hereafter in the same manner as set forth in this Section.

If to the Corporation:

PHI GROUP, INC.

5348 Vegas Drive # 237

Las Vegas, NV 89108

Telephone: 702-475-5430

Facsimile: 702-472-8556

If to the holders of Class Preferred Stock, to the address to be listed in the Corporation’s books and Records.

F-22

Class B Preferred Stock

Class B Series I Preferred Stock

A. Designation: Two hundred thousand shares of the authorized 500,000,000 shares of Preferred Stock, with a par value of $0.001 per share, are designated as Class B Series I Preferred Stock.

B. Number of Shares: The number of shares of Class B Series I Preferred Stock authorized will be two hundred thousand shares.

C. Dividend: None

D. Voting rights: Except as provided by law, the shares of Class B Series I Preferred Stock shall have the same right to vote or act on all matters on which the holders of Common Stock have the right to vote or act and the holders of the shares of Class B Series I shall be entitled to notice of any stockholders’ meeting or action as to such matters on the same basis as the holders of Common Stock, and the holders of Common Stock and shares of Class B Series I shall vote together or act together thereon as if a single class on all such matters; provided, in such voting or action each one share of Class B Series I shall be entitled to one hundred thousand votes.

As of June 30, 2019, the following amounts of Preferred Stock were issued and outstanding:

Class A Series II Preferred Stock: 10,000,000 shares.

Class B Series I Preferred Stock: 120,000 shares.

AMENDMENTS TO ARTICLES OF INCORPORATION:

On October 29, 2018, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to 3,000,000,000 shares with a par value of $0.001 per share, consisting of 2,800,000,000 shares of voting Common Stock with a par value of $0.001 per share and 200,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

On November 08, 2018, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to 4,000,000,000 shares with a par value of $0.001 per share, consisting of 3,800,000,000 shares of voting Common Stock with a par value of $0.001 per share and 200,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

On November 27, 2018, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to 5,000,000,000 shares with a par value of $0.001 per share, consisting of 4,800,000,000 shares of voting Common Stock with a par value of $0.001 per share and 200,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

On January 03, 2019, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to 7,000,000,000 shares with a par value of $0.001 per share, consisting of 6,900,000,000 shares of voting Common Stock with a par value of $0.001 per share and 100,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

On February 19, 2019, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to ten billion shares with a par value of $0.001 per share, consisting of 9.8 billion shares of voting Common Stock with a par value of $0.001 per share and 200,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

F-23

On February 27, 2019, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to fifteen billion shares with a par value of $0.001 per share, consisting of 14.8 billion shares of voting Common Stock with a par value of $0.001 per share and 200,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

On March 29, 2019, a Certificate of Amendment to Articles of Incorporation of PHI Group, Inc. was filed with the Nevada Secretary of State to amend Article V of the Articles of Incorporation to change the authorized capital stock of the Corporation to thirty-one billion shares with a par value of $0.001 per share, consisting of 30.5 billion shares of voting Common Stock with a par value of $0.001 per share and 500,000,000 shares of Preferred Stock with a par value of $0.001 per share. The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

Domestication in the State of Wyoming

On September 20, 2017, the Company applied for a Certificate of Domestication and filed Articles of Domestication with the office of the Secretary of State of Wyoming to re-domicile the Company’s jurisdiction to the State of Wyoming.

On September 20, 2017, the Company filed Articles of Amendment with the Wyoming Secretary of State to amend the authorized capital of the Company as follows:

“The total number of shares into which the authorized capital stock of the corporation is divided is one billion shares, consisting of: nine hundred million shares of voting Common Stock with a par value of $0.001 per share; fifty million shares of non-voting Class A Series I Preferred Stock with a par value of $5.00 per share; twenty-five million shares of non-voting Class A Series II Preferred Stock with a par value of $5.00 per share; twenty million shares of non-voting Class A Series III Preferred Stock with a par value of $5.00 per share and five million shares of voting Class A Series IV Preferred Stock with a par value of $5.00 per share. The relative rights, preferences, limitations and restrictions associated with the afore-mentioned shares of Class A Preferred Stock will be determined by the Board of Directors of the corporation.”

On June 25, 2020, the Company filed Articles of Amendment with the Wyoming Secretary of State to amend the authorized capital of the Company as follows:

Total authorized capital: Forty billion shares of Common Stock with a par value of $0.001 per share and five hundred million shares of Preferred Stock with a par value of $0.001 per share.

The rights and terms associated with the shares of Preferred Stock will be determined by the Board of Directors of the Corporation.

The Company continued to operate as a Nevada corporation until June 30, 2020.

NOTE 16 – STOCK-BASED COMPENSATION PLANS

On February March 18, 2015, the Company adopted an Employee Benefit Plan to set aside 1,000,000 shares of common stock for eligible employees and independent contractors of the Company and its subsidiaries. As of June 30, 2019 the Company has not issued any stock in lieu of cash under this plan.

F-24

On September 23, 2016, the Company issued incentive stock options and nonqualified stock options to certain key employee(s) (Henry Fahman – CEO/CFO) and directors (Tam Bui, Henry Fahman, and Frank Hawkins constitute the Board of Directors) as deferred compensation. The options allow the holders to acquire the Company’s Common Stock at the fair exercise price of the Company’s Common Stock on the grant date of each option at $0.24 per share, based on the 10-days’ volume-weighted average price prior to the grant date. The number of options is equal to a total of 6,520,000. The options terminate seven years from the date of grant and become vested and exercisable after one year from the grant date. The following assumptions were used in the Monte Carlo analysis by Doty Scott Enterprises, Inc., an independent valuation firm, to determine the fair value of the stock options:

Risk-free interest rate	1.18	%
Expected life	7 years
Expected volatility	239.3	%

Vesting is based on a one-year cliff from grant date.

Annual attrition rates were used in the valuation since ongoing employment was condition for vesting the options.

The fair value of the Company’s Stock Options as of issuance valuation date is as follows:

Holder

Issue Date

Maturity Date

Stock Options

Exercise Price

Fair Value at Issuance

Tam Bui

9/23/2016

9/23/2023

875,000

Fixed price: $0.24

219,464

Frank Hawkins

9/23/2016

9/23/2023

875,000

Fixed price: $0.24

219,464

Henry Fahman

9/23/2016

9/23/2023

4,770,000

Fixed price: $0.24

1,187,984

NOTE 17 – GAIN (LOSS) ON SETTLEMENT OF DEBTS

For the fiscal year ended June 30, 2019, there was no gain or loss on settlement of debts, as compared a loss in the amount of $94,539 from conversions of debts into common stock of the Company for the fiscal year ended June 30, 2018.

NOTE 18 – OTHER INCOME (EXPENSE)

Net Other Income (Expense) for the fiscal year ended June 30, 2019 consists of the following:

OTHER INCOME (EXPENSES)	FY ended June 30, 2019
Interest expense		(1,897,979	)
Net other income/expense		1,378,531
NET OTHER INCOME (EXPENSES)		(519,448	)

NOTE 19 – RELATED PARTY TRANSACTIONS

The Company accrued $210,000 in salaries for the President and Secretary of the Company during the year ended June 30, 2019.

NOTE 20 – INCOME TAXES

No provision was made for income tax since the Company has significant net operating loss carry forward. Through June 30, 2019, the Company incurred net operating losses for tax purposes of approximately $42,688,547. The net operating loss carry forward may be used to reduce taxable income through the year 2034. Net operating loss for carry forwards for the State of California is generally available to reduce taxable income through the year 2024. The availability of the Company’s net operating loss carry-forward is subject to limitation if there is a 50% or more positive change in the ownership of the Company’s stock.

F-25

“Under section 6501(a) of the Internal Revenue Code (Tax Code) and section 301.6501(a)-1(a) of the Income Tax Regulations (Tax Regulations), the IRS is required to assess tax within 3 years after the tax return was filed with the IRS.”

NOTE 21 – CONTRACTS AND COMMITMENTS

BUSINESS CONSULANCY AND STRUCTURING AGENCY AGREEMENT TO SET UP INSTITUTIONAL BANK FUNDS IN LUXEMBOURG

On November 30, 2017, the Company signed an agreement with a structuring agent and legal experts to set up a bank fund in Luxembourg in order to provide financing for the Company’s and its clients’ projects.

The Reserved Alternative Investment Fund (RAIF) can be established under the form of common funds (“FCP”), investment companies with variable capital (“SICAV”) or under the form that does not have to have the legal form of a SICAV or an FCP. There will be no restriction in terms of eligible assets. RAIFs are free to introduce any kind of assets and financial instruments in their investment policy. According to the Luxembourg Law of July 12, 2013, RAIFs must entrust their assets to a Luxembourg custodian bank for safekeeping and must appoint an approved statutory auditor.

One of the distinctive advantages of RAIF is that it may have various sub-funds, each corresponding to a distinct part of the assets and liabilities of the RAIF. As such, sub-funds can be established under a RAIF umbrella to target different investment opportunities in a variety of industries as desired.

On February 21, 2018, the Company signed an amendment to the Business Consultancy and Structuring Agency Agreement to be solely responsible for all the costs of Euros 3,500,000 associated with establishing the RAIF. On October 4, 2018, a Payment Agreement was signed by the structuring agent and the Company calling for an extra amount of Euros 1,500,000 to be paid to the structuring agent by November 15, 2018. The master Luxembourg RAIF fund named “PHILUX Global Funds SCA, SICAV – RAIF” was registered and activated with the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) on June 11, 2020, Registration No. B244952.

ACQUISITION OF 51% EQUITY INTEREST IN VINAFILMS JOINT STOCK COMPANY

On August 06, 2018, signed a Business Cooperation Agreement with Vinafilms JSC (Công ty Cổ phần Màng Bao Bì Tân Vinh Nam Phát), a Vietnamese joint stock company, with principal business address at Lot G9, Road No. 9, Tan Do Industrial Zone, Duc Hoa Ha Village, Duc Hoa District, Long An Province, Vietnam, hereinafter referred to as “VNF” and its majority shareholder, to exchange fifty-one percent ownership in VNF for Preferred Stock of PHI. According to the Agreement, PHI will be responsible for filing a S-1 Registration Statement with the Securities and Exchange Commission for American Pacific Plastics, Inc., a subsidiary of PHI that holds the 51% equity ownership in VNF, to become a fully-reporting public company in the U.S. Stock Market.

On September 20, 2018, a Stock Swap Agreement was signed by and between Ms. Do Thi Nghieu, the majority shareholder holding 76% of ownership in VNF, and PHI to exchange 3,060,000 shares of ordinary stock of VNF owned by Ms. Do Thi Nghieu for 50 million shares of Class A Series III Cumulative, Convertible, Redeemable Preferred Stock of PHI. Though this transaction was technically closed on September 28, 2018, the Company did not recognize the operations of Vinafilms JSC in its consolidated financial statements as of June 30, 2019 and will not do so until a GAAP audit of Vinafilms JSC financial statements are conducted and completed by a PCAOB-registered auditing firm.

NOTE 22 – GOING CONCERN UNCERTAINTY

As shown in the accompanying consolidated financial statements, the Company has accumulated deficit of $42,688,547 and total stockholders’ deficit of $6,002,724 as of June 30, 2019. These factors as well as the uncertain conditions that the Company faces in its day-to-day operations with respect to cash flows create an uncertainty as to the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has taken action to strengthen the Company’s working capital position and generate sufficient cash to meet its operating needs through June 30, 2021 and beyond.

F-26

NOTE 23 – SUBSEQUENT EVENTS

These financial statements were approved by management and available for issuance on March 09, 2021. Subsequent events have been evaluated through this date.

1. ISSUANCES OF COMMON STOCK OF THE COMPANY

From July 01, 2019 through March 09, 2021, the Company issued the following amounts of stock to holders of convertible promissory notes and shareholders:

SHARES ISSUED FROM JULY 01, 2019 THROUGH MARCH 09, 2021

DATE	NAME	AMOUNT OF SHARES	CONSIDERATIONS
7/19/19	ANDREAS HELD	20,000,000	Cash
7/25/19	JSJ INVESTMENTS, INC.	491,458,083	Note conversion
8/16/19	JSJ INVESTMENTS, INC.	212,148,000	Note conversion
8/22/19	JSJ INVESTMENTS, INC.	525,934,781	Note conversion
8/29/19	CROWN BRIDGE PARTNERS LLC	525,000,000	Note conversion
9/4/19	AUCTUS FUND, LLC	224,451,600	Note conversion
9/5/19	ADAR ALEF LLC	599,230,769	Note conversion
9/6/19	JSJ INVESTMENTS, INC.	588,428,714	Note conversion
5/14/20	ANDREAS HELD	16,000,000	Cash
6/10/20	ANDREAS HELD	20,000,000	Cash
8/7/20	ONE44 CAPITAL LLC	239,611,455	Note conversion
12/2/20	ADAR ALEF LLC	318,050,962	Note conversion
12/3/20	ONE44 CAPITAL LLC	154,538,182	Note conversion
12/15/20	ONE44 CAPITAL LLC	163,666,182	Note conversion
12/22/20	JSJ INVESTMENTS, INC.	100,000,000	Note conversion
12/24/20	ONE44 CAPITAL LLC	155,732,187	Note conversion
12/30/20	JSJ INVESTMENTS, INC.	100,000,000	Note conversion
1/4/21	ONE44 CAPITAL LLC	170,025,603	Note conversion
1/8/21	JSJ INVESTMENTS, INC.	100,000,000	Note conversion
1/8/21	EMA FINANCIAL LLC	200,000,000	Note conversion
1/12/21	ONE44 CAPITAL LLC	200,308,909	Note conversion
1/15/21	JSJ INVESTMENTS, INC.	100,000,000	Note conversion
1/21/21	EMA FINANCIAL LLC	250,000,000	Note conversion
1/22/21	ONE44 CAPITAL LLC	323,442,182	Note conversion
1/25/21	JSJ INVESTMENTS, INC.	100,000,000	Note conversion
1/26/21	JSJ INVESTMENTS, INC.	200,000,000	Note conversion
2/3/21	ONE44 CAPITAL LLC	246,027,364	Note conversion
2/9/21	JSJ INVESTMENTS, INC.	571,064,466	Note conversion
2/9/21	CROWN BRIDGE PARTNERS LLC	216,393,200	Note conversion
2/9/21	CROWN BRIDGE PARTNERS LLC	238,365,100	Note conversion
2/22/21	EMA FINANCIAL LLC	200,000,000	Note conversion
2/23/21	EMA FINANCIAL LLC	650,000,000	Note conversion
2/24/21	JSJ INVESTMENTS, INC.	135,896,680	Note conversion
2/26/21	EMA FINANCIAL LLC	850,000,000	Note conversion
3/04/21	EMA FINANCIAL LLC	800,000,000	Note conversion
TOTAL ISSUED		10,009,756,808.

F-27

2. ESTABLISHMENT AND ACTIVATION OF PHILUX GLOBAL FUNDS SCA, SICAV-RAIF

On June 11, 2020, the Company received the approval from the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) and successfully established and activated PHILUX GLOBAL FUNDS SCA, SICAV-RAIF (the “Fund”), Registration No. B244952, a Luxembourg bank fund organized as a Reserved Alternative Investment Fund in accordance with the Luxembourg Law of July 23, 2016 relative to reserved alternative investment funds, Law of August 23, 2016 relative to commercial companies, and Modified Law of July 12, 2013 relative to alternative investment fund managers.

The following entities have been engaged to support the Fund’s operations: a) Custodian Bank: Hauck & Aufhauser Privatbankiers AG, b) Administrative Registrar & Transfer Agent: Hauck & Aufhauser Alternative Investment Services S.A., c) Fund Manager: Hauck & Aufhauser Fund Services S.A., d) Fund Attorneys: DLP Law Firm SARL and VCI Legal, e) Investment Advisor: PHILUX Capital Advisors, Inc., f) Fund Auditors: E&Y Luxembourg and E&Y Vietnam, g) Fund Tax Advisor: ATOZ Tax Management, Luxembourg, h) Fund Independent Asset Valuator: Cushman & Wakefield, Vietnam.

The Fund is an umbrella fund containing one or more sub-fund compartments intended to invest in real estate, renewable energy, agriculture, healthcare and especially the Long Thanh Multi-Commodities Logistics Center (LMLC) in Dong Nai Province, Vietnam which will include the Asia Diamond Exchange and the proposed International Financial Center.

3. DEVELOPMENT OF THE ASIA DIAMOND EXCHANGE IN VIETNAM

Along with the establishment of PHILUX Global Funds, since March 2018 the Company has worked closely with the Authority of Chu Lai Open Economic Zone and the Provincial Government of Quang Nam, Vietnam to develop the Asia Diamond Exchange. Quang Nam Provincial Government has agreed to allocate over 200 hectares in the sanctioned Free-Trade Zone near Chu Lai Airport, Nui Thanh District, Quang Nam Province in Central Vietnam for us to set up a multi-commodities center which would include the Asia Diamond Exchange. However, a better opportunity arose with the start of construction of the new international airport in Long Thanh District, Dong Nai Province near Ho Chi Minh City in Southern Vietnam. In December 2020, the Vietnamese central government designated 1,200 hectares of land in Bau Can village, Long Thanh District, Dong Nai Province as a new industrial zone. We have applied for 600 hectares close to the Long Thanh International Airport to develop Long Thanh Multi-Commodities Logistics Center (LMLC) which will house the Asia Diamond Exchange, the proposed International Financial Center and an Urban Area, among other things.

4. AGREEMENTS

A. CONSULTING SERVICE AGREEMENT WITH GLINK APPS JSC

On December 23, 2019, PHI Capital Holdings, Inc., a subsidiary of the Company, (name changed to PHILUX Capital Advisors, Inc. effective June 03, 2020) signed a Consulting Service Agreement to provide consulting service to Glink Apps JSC, a Wyoming corporation, and assist the latter to become a publicly traded company in the U.S. According to the agreement, Glink Apps JSC will pay PHI Capital Holdings, Inc. $88,500 in cash and five million (5,000,000) shares of its common stock for the consulting service to be rendered.

F-28

B. BUSINESS COOPERATION AGREEMENT WITH NATURAL WELL TECHNICAL LTD.

On April 27, 2020, the Company signed a Business Cooperation Agreement with Natural Well Technical Ltd. (“NWTL”), a company organized and existing under the laws of Republic of China and engaged in research and development of innovative biotechnologies that may have significant applications for healthcare, beauty supply, agriculture and industry.

NWTL and the Company agree to jointly cooperate in the research and development activities of pertinent technologies that have been initiated and continue to be carried out by NWTL and applying them to produce commercial products and services in the fields of healthcare, beauty supply, agriculture and industry, as the case may be, as well as any other business activities deemed mutually beneficial.

In particular, NWTL and the Company will initially focus on the following activities:

a. Developing and implementing a comprehensive plan to increase the production, marketing and sale of the “Super Green” High Energy Drop Drink and “Mistyrious” Fine Mist Spray products on a large scale worldwide;

b. Developing and implementing a plan to increase the production, marketing and sale of “Super Cassava” and “Uni-Wash” Engine Booster products as well as other products related to the fields of agriculture and energy that have been studied and developed by NWTL;

c. Continuing to conduct research and accumulate clinical data for NWTL’s biotechnologies in order to obtain U.S. FDA’s approval of cancer treatments and other healthcare products. In addition, both parties also develop, produce and market beauty supply products.

d. Designing a financial plan and providing the required funding for NWTL to execute its business plan.

C. INVESTMENT ADVISORY AGREEMENT AMONG PHILUX CAPITAL ADVISORS, INC., HAUCK & AUFHAUSER FUND SERVICES S.A. AND PHILUX GLOBAL FUNDS SCA, SICAV-RAIF

On June 11, 2020, PHILUX CAPITAL ADVISORS, INC. (the “Investment Advisor”) signed an Investment Advisory Agreement among Hauck & Aufhauser Fund Services S.A.(the “AIFM”) and PHILUX Global Funds SCA, SICAV-RAIF an umbrella-fund composed of one or more sub-funds (the “Fund”) to serve as the Investment Advisor for PHILUX Global Funds. According to the Agreement, the Investment Advisor will cooperate in the definition of the investment strategy and its implementation in an advisory capacity, develop proposals for specific investment policy of the Fund, advise and support the AIFM in the selection of the investments and to make investment recommendations, carry out due diligence process, present suitable investments selected in consideration of the investment policy and investment restrictions of the Fund, provide support in the conclusion of purchase and sale transactions, observe and analyze relevant markets and potential investments, provide advice and support to the AIFM and give recommendations in the event of a sale of investments, support investors of the Fund in onboarding management, granting information on Fund-relevant issues, as well as channeling and answering all investor questions, support the AIFM in its performance of risk control and with the completion of subscription agreements. The Investment Advisor shall receive from the General Partner of the Fund a remuneration as stated in the fees annex to the Investment Advisory Agreement.

D. AGREEMENT WITH TECCO GROUP FOR PARTICIPATION IN PHILUX INFRASTRUCTURE FUND COMPARTMENT OF PHILUX GLOBAL FUNDS

On August 10, 2020, Tecco Group, a Vietnamese company, signed an agreement with PHI Luxembourg Development SA, a subsidiary of the Company, to participate in the proposed infrastructure fund compartment of PHILUX Global Funds SCA, SICAV-RAIF. According to the agreement, Tecco Group will contribute $2,000,000 for 49% ownership of the general partners’ portion of said infrastructure fund compartment. As of March 05, 2021, Tecco Group has paid four billion Vietnam Dong (VND) towards the total agreed amount.

F-29

E. AGREEMENT WITH PHAT VAN HUNG CO. LTD. FOR PARTICIPATION IN PHILUX REAL ESTATE FUND COMPARTMENT OF PHILUX GLOBAL FUNDS

On November 09, 2020, Phat Van Hung Co. Ltd. signed an agreement with PHI Luxembourg Development SA, a subsidiary of the Company, to participate in the real estate fund compartment of PHILUX Global Funds SCA, SICAV-RAIF. According to the agreement, Phat Van Hung Co. Ltd. will contribute $2,000,000 for 49% ownership of the general partners’ portion of said real estate fund compartment. As of March 05, 2021, Phat Van Hung has not made any payment towards the agreed amount.

F. AGREEMENT WITH XUAN QUYNH LLC FOR PARTICIPATION IN PHILUX INFRASTRUCTURE FUND COMPARTMENT OF PHILUX GLOBAL FUNDS

On November 20, 2020, Xuan Quynh LLC, a Vietnamese company, signed an agreement with PHI Luxembourg Development SA, a subsidiary of the Company, to participate in the proposed infrastructure fund compartment of PHILUX Global Funds SCA, SICAV-RAIF. According to the agreement, Xuan Quynh LLC will contribute $2,000,000 for 49% ownership of the general partners’ portion said infrastructure fund compartment. As of March 05, 2021, Xuan Quynh LLC has not made any payment towards the agreed amount.

G. INVESTMENT AGREEMENTS AND MEMORANDUM OF UNDERSTANDING

From August 24, 2020 to November 11, 2020, the Company through its Luxembourg bank fund mother holding company PHI Luxembourg Development SA and PHILUX Global Funds SCA, SICAV-RAIF has signed investment agreements and memorandum of understanding with three non-US entities for total investments of more than one billion U.S. dollars. However, as of the date of this report, the Company has not received any money from these investment agreements and there is no guarantee that any money will be received from these agreements and memorandum of understanding in the future.

F-30

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management carried out an evaluation, with the participation of our Chief Executive Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Exchange Act), as of the period covered by this report. Disclosure controls and procedures are defined as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon their evaluation, our management (including our Chief Executive Officer) concluded that our disclosure controls and procedures were not effective as of June 30, 2019, based on the material weaknesses defined below.

Internal Control over Financial Reporting

Management’s Annual Report on Internal Control of Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a set of processes designed by, or under the supervision of, a company’s principal executive and principal financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:

	●	pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets,
	●	provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors, and
	●	provide reasonable assurance regarding prevention or timely detection of authorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. It should be noted that any system of internal control, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including its principal executive officer and principal financial officer, the Company’s management assessed the design and operating effectiveness of internal control over financial reporting as of June 30, 2019 based on the framework set forth in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have identified material weaknesses in our internal control over financial reporting.

If we fail to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in our company.

The material weaknesses related to a lack of a full segregation of duties and to our lack of sufficient personnel in our accounting and financial reporting functions with sufficient experience and expertise with respect to the application of U.S. GAAP and related financial reporting.

Based on this assessment, management concluded that the Company’s internal control over financial reporting was not effective as of June 30, 2019.

Management’s Remediation Plan

We plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes in the future:

(i)	appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and

(ii)	adopt sufficient written policies and procedures for accounting and financial reporting.

The remediation efforts set out in (i) are largely dependent upon our company securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

Management believes that despite our material weaknesses set forth above, our consolidated financial statements for the fiscal year ended June 30, 2019 are fairly stated, in all material respects, in accordance with US GAAP.

Attestation Report of the Registered Accounting Firm

This Annual Report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to Rule 308(b) of Regulation S-K, which permits the Company to provide only management’s report in this Annual Report.

Changes in Internal Control over Financial Reporting

No changes in the Company’s internal control over financial reporting have come to management’s attention during the Company’s last fiscal quarter that have materially affected, or are likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER MATTERS

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table sets forth certain information as of June 30, 2019, with respect to the Directors and Executive Officers of the Company.

NAME	AGE	POSITION
Henry D. Fahman	65	Chairman of the Board, President, Acting CFO
Tina T. Phan	52	Treasurer, Secretary
Tam T. Bui	58	Director
Frank Hawkins	78	Director

Directors are elected at the annual meeting of shareholders and hold office until the following annual meeting and until their successors are elected and qualified. All Executive Officers serve at the discretion of the Board of Directors. The Company’s securities are not registered under Section 12(g) of the Exchange Act. Accordingly, the Directors and Executive Officers of the Company are not required to file reports under Section 16(a) of that act.

Henry D. Fahman has more than 30 years experience in general management, finance, investments and corporate strategy. He has been President and Chairman of the Board of PHI Group, Inc. since January 2000, and is currently Acting Financial Officer of the Company. Mr. Fahman served as President and Chairman of the Board of Providential Securities, Inc. from its inception in October 1992 to October 2000. He holds a B.S., magna cum laude, in business administration from the University of California at Berkeley, with emphasis in finance and economic analysis and policy, and is a graduate of the Advanced Management Program (AMP166) from Harvard Business School. He has also attended other Executive Education programs at Harvard Business School and Stanford University, including Mergers and Acquisitions, Creating Competitive Advantage, and Advanced General Management. Previously, he served as a Resettlement Coordinator for the United Nations High Commissioner for Refugees. Mr. Fahman also serves as Chairman/Managing Director of PHILUX Capital Advisors, Inc., a wholly owned subsidiary of the Company, Chairman of PHILUX Global Funds SCA, SICAV-RAIF, and interim Chief Executive Officer of American Laser Healthcare Corporation, a Delaware corporation. Mr. Fahman is the husband of Tina T. Phan, our Secretary and Treasurer.

Tam Bui has been a Director of the Company since April 2009 and served as a Chief Technology Officer from May 2002 to April 2009. Mr. Bui holds Bachelor and Master of Science degrees from the University of Minnesota and has attended continuing Education at the University of California, Los Angeles. He has over 25 years of experience with Northrop Grumman, Honeywell, Inc. and TRW in various capacities such Project Director, Project Manager, Department Manager, Program Manager and Implementation Manager. One of Mr. Bui’s major responsibilities has been the construction of dual Emergency Command Control Communication (ECCC) centers and implementation of the Los Angeles Police Department ECCC Systems. He has a broad knowledge and experience in the areas of information technology, intranet/internet technology, inventory management, material resource planning, enterprise resource planning, human resource management, investment management, real estate, and international business. Mr. Bui also serves as Vice-Chairman of PHILUX Capital Advisors, Inc., a wholly-owned subsidiary of the Company and a member of the Board of Directors of PHILUX Global Funds, a Luxembourg bank fund.

Frank Hawkins, Director has been a Director of the Company since April 2009 and Mr. Hawkins is a founder and CEO of Hawk Associates with 30 years of award-winning investor relations experience, Mr. Hawkins has earned the wide respect of Wall Street’s investment community for straight talk and integrity. He was formerly vice president/corporate relations and planning and head of the investor relations program at Knight-Ridder, Inc. in Miami. Mr. Hawkins started his career as an agent handler in clandestine collection operations for the Defense Intelligence Agency in Germany and went on to become a foreign and war correspondent, international businessman, senior corporate executive and president of the Access Asia Group in Hong Kong. He has lived in eight countries. He has been involved in stock listings in Tokyo and Frankfurt and company presentations in London, Zurich, Geneva and Singapore. Fluent in German, he is a graduate of Cornell University and author of “Ritter’s Gold,” an adventure novel published in several languages by the New American Library. He is a member of the Association of Former Intelligence Officers and the Audubon Society and is listed in Who’s Who in America and Who’s Who in the World. He serves on the board of the Florida Keys Electric Cooperative.

Tina T. Phan has been Treasurer of the Company since April 2009. She served as a Director and Secretary of the Company from January 2000 to April 10, 2009 and was Vice President of Operations of Providential Securities, Inc. from 1995 to 2000. Mrs. Phan holds a B.S. in management information system from California State University, Los Angeles. Currently Mrs. Phan serves as Treasurer and Secretary of the Company and a member of the Board of Directors of PHI Luxembourg Development S.A., the mother holding company of PHILUX Global Funds. Mrs. Phan is the wife of Henry D. Fahman.

ITEM 11. EXECUTIVE COMPENSATION

(a) Any compensation received by officers, directors, and management personnel of the Company will be determined and approved from time to time by the Board of Directors of the Company as it deems appropriate and reasonable. Officers, directors, and management personnel of the Company will be reimbursed for any out-of-pocket expenses incurred on behalf of the Company.

Except for any non-cash payments mentioned in this report, there was no monetary compensation paid to any officers of the Company during the year ended June 30, 2019.

(b) There are no annuity, pension or retirement benefits proposed to be paid to officers, directors, or employees of the Company in the event of retirement at normal retirement date as there is no existing plan provided for or contributed to by the Company.

(c) All members of the Company’s Board of Directors, whether officers of the Company or not, may receive an amount yet to be determined annually for their participation in meetings of the Board and will be required to attend a minimum of four meetings per fiscal year. The Company reimburses all expenses for meeting attendance or out of pocket expenses connected directly with their Board participation.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial ownership of shares of the Company’s common stock as of October 09, 2020 (13,472,020,210 shares issued, by (i) all shareholders known to the Company to be beneficial owners of more than 5% of the outstanding common stock; and (ii) all directors and executive officers of the Company, and as a group:

Title of Class	*Name and Address of* *Beneficial Owner (1)*	Amount of Beneficial Ownership	Percent of Class
Common Stock	Henry D. Fahman (2) 15272 Flintridge Lane Huntington Beach, CA 92647	42,048,505	24.24	%

Common Stock	Natalie Bui (3) 2563 W Rowland Ave Anaheim, CA 92804	1,032,502	**

Common Stock	Tam Bui 2563 W Rowland Ave Anaheim, CA 92804	956,881	**

Common Stock	Tina T. Phan (4) 15272 Flintridge Lane Huntington Beach, CA 92647	6,539,127	3.77	%

Common Stock	Frank Hawkins 227 Atlantic Boulevard Key Largo, FL 33037	200	**

Common Stock	Shares of all directors and executive officers as a group (4 persons):	49,544,713	28.56	%

(1)	Each person has sole voting power and sole dispositive power as to all of the shares shown as beneficially owned by them.
(2)	Certain of these shares have been pledged to secure certain obligations of the Company.
(3)	Natalie Bui is the spouse of Tam Bui.
(4)	Tina Phan is the spouse of Henry Fahman.
	**: Less than 1%.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Henry D. Fahman, Chairman and Chief Executive Officer of the Company, has from time to time made cash advances to the Company. The advances are unsecured, interest free and payable on demand.

Certain of the officers and directors of the Company are engaged in other businesses, either individually or through partnerships and corporations in which they have an interest, hold an office, or serve on a board of directors. As a result, certain conflicts of interest may arise between the Company and its officers and directors. The Company will attempt to resolve such conflicts of interest in favor of the Company. The officers and directors of the Company are accountable to it and its shareholders as fiduciaries, which require that such officers and directors exercise good faith and integrity in handling the Company’s affairs. A shareholder may be able to institute legal action on behalf of the Company or on behalf of itself and other similarly situated shareholders to recover damages or for other relief in cases of the resolution of conflicts is in any manner prejudicial to the Company.

Henry D. Fahman, Chairman and Chief Executive Officer of the Company, also serves as Interim Chief Executive Officer of American Laser Healthcare Corp., a Delaware corporation and a client of PHILUX Capital Advisors, Inc.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The negotiated package fees billed by M.S. Madhava Rao, an independent accountancy firm, are $18,000 for the audit of the Company’s annual consolidated financial statements for the fiscal year ended June 30, 2019 and for the review of unaudited financial statements for the quarters ending 9/30/2019, 12/31/2019 and 3/31/2020.

All Other Fees

The Company did not pay M.S. Madhava Rao or DylanFloyd Accounting & Consulting, the Company’s predecessor auditor, any non-audit fees for fiscal year 2019 or 2018.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENTS SCHEDULES

Financial Statements

The following consolidated financial statements of PHI Group, Inc. and its subsidiaries are included:

Consolidated Balance Sheets — June 30, 2019 and 2018.
Consolidated Statements of Operations — For the fiscal years ended June 30, 2019 and 2018
Consolidated Statements of Cash Flows — For the fiscal years ended June 30, 2019 and 2018
Consolidated Statements of Changes in Owners’ Equity — For the fiscal years ended June 30, 2019 and 2018
Notes to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm M.S. Madhava Rao

EXHIBIT INDEX

Exhibit No.		Exhibit Description

2.1		Plan of Exchange between the Company and Prima Eastwest Model Management, Inc. (incorporated by reference to Exhibit 2 to the Form 8-K filed on March 1, 1996)
2.2		Corporate Combination Agreement between the Company and Providential Securities, Inc., effective on January 14, 2000 (incorporated by reference to Exhibit 10.12 to the Form 10-KSB filed on January 10, 2000).
3.1		Articles of Incorporation (1)
3.2		Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Form 10-KSB for the fiscal year ended June 30, 1995).
3.3		Amendment to Articles of Incorporation (6)
3.4		Certificate of Amendment to Articles of Incorporation (6)
3.5		Bylaws, as amended (6)
4.1		Form of Series 1 Bridge Notes Purchase and Security Agreement between the Company and investors, dated March 27, 2000 (6)
4.2		Form of Series 1 Bridge Note executed by the Company issued by the Company to Investors. (6)
4.3		Form of Common Stock Purchase Warrant issued by the Company to investors. (6)
4.4		Form of Re-pricing Warrant issued by the Company to investors. (6)
4.5		Form of Registration Rights Agreement between the Company and investors, dated March 27, 2000 (6)
4.6		Form of Common Stock Purchase Warrant to be issued by the Company to Sovereign Capital Advisors, LLC (6)
4.7		Form of Convertible Promissory Note issued by the Company to preferred shareholders of Providential Securities, Inc. (6)
5.1		Opinion Re Validity of Agreements (6) 10.1 Benatone Exchange Agreement, with Creditors (2)
10.2		Benatone Share Acquisition Agreement (for Weldnow Enterprise, Ltd.) (2)
10.3		Benatone Share Acquisition Agreement (Dynedeem Limited) (2)
10.4		Benatone Exchange Agreement (2)
10.5		Benatone Asset Sale Agreement (2)
10.6		Benatone Royalty Agreement (2)
10.7		Benatone Consultancy Agreement (2)
10.8		Benatone Deed (2)

10.9		Autokraft Stock Purchase Agreement (3)
10.10		Autokraft Stock Subscription Agreement (3)
10.11		Prima Agreement and Plan of Merger (4)
10.12		Escrow Agreement between the Company and Warshaw Burstein Cohen Schelsinger & Kuh, LLP, dated March 28, 2000. (6)
10.13		Placement Agency Agreement between the Company and Sovereign Capital Advisors, LLC, dated March 28, 2000. (6)
10.14		Guaranty Agreement between Henry Fahman and SovCap Equity Partners, Ltd, dated March 28, 2000. (6)
10.15		Pledge Agreement between Henry Fahman and SovCap Equity Partners, Ltd, dated March 28, 2000. (6)
10.16		Partnership Purchase Agreement between the Company and Holt Collins, dated May 31, 2000. (6)
10.17		Memorandum of Agreement between DataLogic Consulting, Inc. and PHI Group, Inc., dated April 25, 2001. (5)
10.18.1		Letter of Intent between PHI Group, Inc. and Epicenter, Inc., dated October 30, 2000. (5)
10.18.2		Amendment to Letter of Intent between PHI Group, Inc. and Epicenter, Inc., dated November 30, 2000. (5)
10.18.3		Amendment to Letter of Intent between PHI Group, Inc. and Epicenter, Inc., dated January 12, 2001. (5)
10.18.4		Amendment to Letter of Intent between PHI Group, Inc. and Epicenter, Inc., dated June 26, 2001. (5)
10.18.5		Amendment to Letter of Intent between PHI Group, Inc. and Epicenter, Inc., dated October 02, 2001. (5)
10.19		Joint Venture Agreement between Providential Holdings, Inc and Boxo, Inc., dated January 1, 2001. (5)
10.20		License of Manna Technologies Joint Venture Company, dated March 21, 2001. (5)
10.21		Memorandum of Agreement between International Consulting and Training Center, Ministry of Trade, Vietnam and the Company, dated March 24, 2001. (5)
10.22		Memorandum of Agreement among General Transportation Company No. 5, Chu Lai Industrial Zone and the Company, dated March 25, 2001. (5)
10.23		Letter of Intent between PHI Group, Inc. and Global Systems and Technologies, Corp. dated October 18, 2001. (6)
10.24		Letter of Intent between PHI Group, Inc. and Estate Planning and Investment Company dated November 7, 2001. (6)
10.25		Joint Venture Agreement between PHI Group, Inc. and Mimi Ban dated November 23, 2001. (6)
10.26		Plan of acquisition of Nettel Global Communication Corp. (incorporated by reference to the Company’s Current Report on Form 8-K filed May 3, 2002)
10.27		Joint Venture Agreement with Vietnam’s Minh Hieu Joint Stock Company. (7)
10.28		Memorandum of Agreement with HDT Enterprises, LLC dated March 15, 2002. (7)
10.29		Memorandum of Agreement and Principal Contract with Vietnam’s Center of Telecom Technology. (7)
10.30		Stock Purchase Agreement with SlimTech, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K, filed May 1, 2002).
10.31		Stock Purchase Agreement with ATC Technology Corp. (incorporated by reference to the Company’s Current Report on Form 8-K, Filed September 17, 2002)
10.32		Mutual Rescission of Stock Purchase Agreement with Nettel Global Communication Corp. (8).
10.33		Business Consulting Agreement with Nettel Global Communication Corp. (8)
10.34		Business Consulting Agreement with Medical Career College (8)
10.35		Mutual Rescission of Stock Purchase Agreement with SlimTech (8)
10.36		Mutual Rescission of Stock Purchase Agreement with Clear Pass, Inc. (8).
10.37		Mutual Rescission of Joint Venture Agreement with HTV CO, Ltd. (8).
10.38		Mutual Rescission of Stock Purchase Agreement with Real ID Technology (8).
10.39		Business Consulting Agreement with Lexor Incorporated (8).
10.40		Amended Closing Memorandum with ATC Technology Corp. (8)
10.41		Stock Purchase Agreement with Tangshan YutianSaw Corporation (incorporated by reference to the Company’s Current Report on Form 8-K filed June 15, 2004)
10.42		Asset Purchase Agreement with Western Medical, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K, file June 2, 2006)
10.43		Principle Business Cooperation Agreement with Cavico Vietnam Joint Stock Corporation (incorporated by reference to the Company’s Current Report on Form 8-K, filed October 2, 2006)

16.1		Notification of Change of Accountants, Kabani & Co. appointed (incorporated by reference to exhibits filed with Form 8-K/A, filed September 10, 2001)
17.1		Resignation of Nhi T. Le as director and officer and appointment of Thorman Hwinn as Director (incorporated by reference to exhibits filed with Form 8-K, filed July 9, 2001)
17.2		Resignation of Tam Bui as Director (incorporated by reference to the Company’s Current Report on Form 8-K, filed September 30, 2004).
17.3		Resignation of Gene M. Bennett as Chief Financial Officer (incorporated by reference to the Company’s Current Report on Form 8-K, filed March 23, 2005).
17.4		Resignation of Robert Stevenson as Director (incorporated by reference to the Company’s Current Report on Form 8-K, filed July 18, 2006).
17.5		Resignation of Ghanshyam Dass as Director (incorporated by reference to the Company’s Current Report on Form 8-K, filed September 29, 2010).
17.6		Resignation of Paul Nguyen as Director (incorporated by reference to the Company’s Annual Report for the Fiscal Year ended June 30, 2012 as filed with the Securities and Exchange Commission on June 2, 2014).
17.7		Unregistered Sale of Equity Securities (incorporated by reference to Company’s Current Report on Form 8-K, filed on December 23, 2016).
17.8		Unregistered Sale of Equity Securities (incorporated by reference to Company’s Current Report on Form 8-K, filed on December 29, 2016).
17.9		Investment Agreement with Azure Capital (incorporated by reference to Company’s Current Report on Form 8-K, filed on March 7, 2017).
17.10		Unregistered Sale of Equity Securities (incorporated by reference to Company’s Current Report on Form 8-K, filed on April 10, 2017).
17.11		Private Stock Purchase and Sale Agreement with Maxagro Farm SRL (incorporated by reference to Company’s Current Report on Form 8-K, filed on June 1, 2017).
17.12		Contract for Transfer of Shares” to purchase 51% of equity ownership in Constructii SA (incorporated by reference to Company’s Current Report on Form 8-K, filed on June 30, 2017).
17.13		Unregistered Sale of Equity Securities (incorporated by reference to Company’s Current Report on Form 8-K, filed on July 27, 2017).
17.14		Amendment to Private Stock Purchase and Sale Agreement with Maxagro Farm SRL (incorporated by reference to Company’s Current Report on Form 8-K, filed on August 9, 2017).
17.15		Agreement of Purchase and Sale with Rush Gold Royalty Inc, a Wyoming corporation, to acquire a 51% ownership in twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County, Oregon, U.S.A. (incorporated by reference to Company’s Current Report on Form 8-K, filed on September 7, 2017).
17.16		Registration Statements in connection with Azure Capital Investment Agreement (incorporated by reference to Company’s S-1 Registration Statement filed on April 3, 2017,
17.17		Withdrawal of Registration Statement filed on August 7, 2017, new S-1 Registration Statement filed on August 7, 2017 and S-1/A filed on September 15, 2017).
17.18		Closing Memorandum for the Agreement of Purchase and Sale with Rush Gold Royalty Inc, a Wyoming corporation, to acquire a 51% ownership in twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County, Oregon, U.S.A. (incorporated by reference to Company’s Current Report on Form 8-K, filed on October 9, 2017).

(1)	Incorporated by reference to the Company’s Registration Statement on Form S-18, declared effective August 10, 1982 (SEC File No. 2-78335-NY), and to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 1995.

(2)	Incorporated by reference to the Company’s Current Report on Form 8-K, dated September 7, 1995

(3)	Incorporated by reference to the Company’s Current Report on Form 8-K/A, dated September 12, 1995.

(4)	Incorporated by reference to the Company’s Current Report on Form 8-K, dated March 1, 1996.

(5)	Incorporated reference to Form 10KSB for the year ended June 30, 2000 filed October 16, 2001.

(6)	Incorporated by reference to Form 10KSB for the year ended June 30, 2001 filed December 17, 2001.

(7)	Incorporated by reference to Form 10QSB for the quarter ended March 31, 2002 filed May 14, 2002.

(8)	Incorporated by reference to Form 10KSB for the year ended June 30, 2003, filed October 17, 2003.

EXHIBIT INDEX (CONTINUED).

		Incorporation by reference				Filed or Furnished
Exhibit No.	Exhibit Description	Form	File Number	Exhibit	Filing Date	Herewith
3.6	Articles of Amendment to Articles of Domestication	8-K	001-38255	10.1; Item 7.01	2020-06-30
3.7	Certificate of Dissolution/Withdrawal from Nevada Secretary of State	8-K	001-38255	10.2; 10.2	2020-06-30
3.8	Articles of Amendment to Articles of Domestication and Designations of Preferred Stock					X
10.44	Entry Into a Material Definitive Agreement	8-K	001-38255	99.1; 99.2	2018-07-25
10.45	Business Cooperation Agreement with Vinafilms Joint Stock Company	8-K	001-38255	10.1; 10.2	2018-08-10
10.46	Completion of Acquisition or Disposition of Assets – Vinafilms Joint Stock Company	8-K	001-38255	10.1	2018-10-10
16.2	Changes in Registrant’s Certifying Accountant	8-K	001-38255	16.1	2018-07-30
16.3	Changes in Registrant’s Certifying Accountant	8-K	001-38255	16.1	2020-05-07
16.4	Changes in Registrant’s Certifying Accountant	8-K	001-38255	16.1	2020-09-30
17.19	Declaration of Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2018-05-01
17.20	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2018-05-31
17.21	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2018-11-13
17.22	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2019-02-28
17.23	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2019-03-01
17.24	PHI Group, Inc. Approves Stock Repurchase Program	8-K	001-38255	10.1	2019-03-26
17.25	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2019-05-31
17.26	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1; 10.2	2019-09-25
17.27	Extension of Record Date for Special Common Stock Dividend from Issuer’s Subsidiary	8-K	001-38255	10.1	2019-12-30
17.28	Extension of Repurchase Date for the Company’s Common Stock	8-K	001-38255	10.1	2020-03-05
17.29	Relying on Order for Reporting Relief	8-K	001-38255	N/A	2020-05-15
17.30	Extension of Repurchase Date for the Company’s Common Stock and Extension of Record Date For Special Stock Dividend Distribution	8-K	001-38255	10.1; 10.2	2020-06-30
17.31	Extension of Repurchase Date for the Company’s Common Stock and Extension of Record Date For Special Stock Dividend Distribution	8-K	001-38255	10.1; 10.2	2020-12-29
21.1	Subsidiaries of the Registrant.
31.1-32.2	Certifications in Accordance with Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

Pursuant to the requirement of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

PHI GROUP, INC.

Dated: March 11, 2021

By:	/s/ Henry D. Fahman
	Henry D. Fahman, President

In accordance with the Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Company and in the capacities and on the dates indicated.

SIGNATURE	TITLE	DATE

/s/ Henry D. Fahman	Chairman/President/Acting Chief Financial Officer	March 11, 2021
HENRY D. FAHMAN

/s/ Tina T. Phan	Secretary/Treasurer	March 11, 2021
TINA T. PHAN

/s/ Tam T. Bui	Director	March 11, 2021
TAM T. BUI

/s/ Frank Hawkins	Director	March 11, 2021
FRANK HAWKINS