UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



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

For the quarterly period ended: MARCH 31, 2012

or

[ ] 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



(Exact name of registrant
as specified in its charter)



| | Nevada                                                         |                                         | 90-0114535 | 
| | -------------------------------------------------------------- | --------------------------------------- | ---------- | 
| | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer identification Number)







| | 7251 W. Lake Mead Blvd., Suite 300, Las Vegas, |  | NV 89128   | 
| | ---------------------------------------------- |  | ---------- | 
| | (Address of principal executive offices)       |  | (Zip Code) | 





| | 702-475-5430                                                                       | 
| | ---------------------------------------------------------------------------------- | 
| | (Registrant's telephone number, including area code)                               | 
| |                                                                                    | 
| | 17011 Beach Blvd., Suite 1230, Huntington Beach, CA 92647                          | 
| | (Former name, former address and former fiscal year, if changed since last report) | 





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 [X] No [ ]



Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, 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 [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]



Indicate the number of shares outstanding of each of the
issuer’s classes of common stock, as of the latest practicable date: As of February 7, 2014, there were 12,067,532 shares
of the registrant's $0.001 par value Common Stock issued and outstanding (including 5,673,327 shares reserved for a special dividend
distribution), following a 1:1,500 reverse split which came into effect March 15, 2012.













PHI GROUP, INC.



INDEX TO FORM 10-Q



PART I - FINANCIAL INFORMATION



Item 1- Consolidated Financial Statements –
Unaudited

Consolidated Balance Sheets as of March 31, 2012 and
June 30, 2011

Consolidated Statements of Operations for Three and
Nine Months Ended March 31, 2012 and 2011

Consolidated Statements of Cash Flows for Nine Months
Ended March 31, 2012 and 2011

Notes to Consolidated Financial Statements

Item 2-Management's Discussion and Analysis
of Financial Condition and Results of Operations

Item 3- Quantitative and Qualitative Disclosures
about Market Risk

Item 4- Controls and Procedures

PART II - OTHER INFORMATION

Item 1- Legal Proceedings

Item 1A- Risk Factors

Item 2- Unregistered Sales of Equity Securities
and Use of Proceeds

Item 3- Defaults Upon Senior Securities

Item 4- Submission of Matters to a Vote of
Security Holders

Item 5- Other Information

Item 6- Exhibits

SIGNATURES



Exhibit 21.1



CERTIFICATIONS















|PHI GROUP, INC. AND SUBSIDIARIES                                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(FORMERLY PROVIDENTIAL HOLDINGS, INC.)                                                                                                                                                              
|CONSOLIDATED BALANCE SHEETS                                                                                                                                                                         
|(UNAUDITED)                                                                                                                                                                                         
|                                                                                                                                                                                                    
|                                                                                                                                                                                                    
|                                                                                                                                                                                                    
|                                                                                                                                                                                                    
|                                                                                                                                                                                                    
|ASSETS                                                                                                                                                                                              
|Current assets:                                                                                                                                                                                     
|Cash and cash equivalents                                                                                                                                                                           
|Accounts Receivable                                                                                                                                                                                 
|Marketable securities                                                                                                                                                                               
|Loans receivable from related parties                                                                                                                                                               
|Other current assets                                                                                                                                                                                
|Total current assets                                                                                                                                                                                
|                                                                                                                                                                                                    
|Property and Equipment                                                                                                                                                                              
|Property and equipment, net                                                                                                                                                                         
|Construction in progress                                                                                                                                                                            
|                                                                                                                                                                                                    
|Other assets:                                                                                                                                                                                       
|Other assets                                                                                                                                                                                        
|Deposits                                                                                                                                                                                            
|Total assets                                                                                                                                                                                        
|                                                                                                                                                                                                    
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                               
|Current liabilities:                                                                                                                                                                                
|Accounts payable and accrued expenses                                                                                                                                                               
|Short-term notes payable                                                                                                                                                                            
|Convertible promissory note                                                                                                                                                                         
|Derivative Liability                                                                                                                                                                                
|Due to officers                                                                                                                                                                                     
|Payable to related party                                                                                                                                                                            
|Due to preferred stockholders                                                                                                                                                                       
|Unearned revenue                                                                                                                                                                                    
|Other current liabilities                                                                                                                                                                           
|Total current liabilities                                                                                                                                                                           
|                                                                                                                                                                                                    
|Stockholders' equity:                                                                                                                                                                               
|Preferred stock , $.001 par value, 100,000,000 shares                                                                                                                                               
|authorized; none issued and outstanding                                                                                                                                                             
|Common stock, $.001 par value; 300,000,000 shares authorized;                                                                                                                                       
|188,971 issued and 173,289 outstanding on March 31, 2012 and 199,652 issued and 141,921 on June 30, 2011 outstanding, respectively, adjusted for 1 for 1,500 reverse split effective March 15, 2012.
|Shares to be issued                                                                                                                                                                                 
|Treasury stock, $.001 par value, 887 shares of common stock as of March 31,2012,                                                                                                                    
|and 1,330,440 shares of common stock as of June 30,2011, respectively                                                                                                                               
|                                                                                                                                                                                                    
|Additional paid-in-capital                                                                                                                                                                          
|Prepaid consulting                                                                                                                                                                                  
|Accumulated deficit                                                                                                                                                                                 
|Total                                                                                                                                                                                               
|Non-Controlling interest                                                                                                                                                                            
|Total stockholders' deficit                                                                                                                                                                         
|                                                                                                                                                                                                    
|Total liabilities and stockholders' deficit                                                                                                                                                         
|                                                                                                                                                                                                    
|The accompanying notes form an integral part of these unaudited consolidated financial statements                                                                                                   















|PHI GROUP, INC. AND SUBSIDIARIES                                                                 
|-------------------------------------------------------------------------------------------------
|(FORMERLY PROVIDENTIAL HOLDINGS, INC.)                                                           
|CONSOLIDATED STATEMENTS OF OPERATIONS                                                            
|(UNAUDITED)                                                                                      
|                                                                                                 
|                                                                                                 
|                                                                                                 
|                                                                                                 
|Net revenues                                                                                     
|Consulting and advisory fee income                                                               
|                                                                                                 
|Operating expenses:                                                                              
|Depreciation and amortization                                                                    
|Salaries and wages                                                                               
|Professional services, including non-cash compensation                                           
|General and administrative                                                                       
|Total operating expenses                                                                         
|                                                                                                 
|Loss from operations                                                                             
|                                                                                                 
|Other income and (expenses)                                                                      
|Interest expense                                                                                 
|Loss on equity investment                                                                        
|Loss on sale of market securities                                                                
|Gain (Loss) on debt settlement-net                                                               
|Gain on conversion of note                                                                       
|Change in derivative liability                                                                   
|Other income                                                                                     
|Net other expenses                                                                               
|                                                                                                 
|Loss before minority interest                                                                    
|Non-Controlling interest                                                                         
|Net loss                                                                                         
|                                                                                                 
|Net loss per share:                                                                              
|Basic                                                                                            
|Diluted                                                                                          
|                                                                                                 
|Weighted average number of shares outstanding:                                                   
|Basic                                                                                            
|Diluted                                                                                          
|                                                                                                 
|The accompanying notes form an integral part of these unaudited consolidated financial statements















|PHI GROUP, INC. AND SUBSIDIARIES                                                                 
|-------------------------------------------------------------------------------------------------
|(FORMERLY PROVIDENTIAL HOLDINGS, INC.)                                                           
|CONSOLIDATED STATEMENTS OF CASH FLOWS                                                            
|FOR THE NINE MONTHS ENDED MARCH 31, 2012 AND 2011                                                
|(UNAUDITED)                                                                                      
|                                                                                                 
|                                                                                                 
|Cash flows from operating activities:                                                            
|Net income (loss) from operations                                                                
|Adjustments to reconcile net income  to net cash used in operating activities:                   
|Depreciation                                                                                     
|Loss on debt settlement                                                                          
|Loss on sale of market securities                                                                
|Loss on deposits                                                                                 
|Amortization of Discount                                                                         
|Change in Fair Value of Derivative liability                                                     
|Non-controlling interest                                                                         
|Issuance of shares for consulting services                                                       
|Marketable securities received for conversion loan                                               
|Marketable securities received for consulting service                                            
|Changes in operating assets and liabilities:                                                     
|Increase on accounts receivable                                                                  
|(Increase) decrease in other assets and prepaid expenses                                         
|Increase  in accounts payable and accrued expenses                                               
|Net cash provided (used) in operating activities                                                 
|                                                                                                 
|Cash flows from investing activities:                                                            
|Proceeds from sale of property and equipment                                                     
|Construction in progress                                                                         
|Net cash provide by (used in) investing activities                                               
|                                                                                                 
|Cash flows from financing activities:                                                            
|Proceeds from sale of stock of subsidiary                                                        
|Purchase of treasury shares                                                                      
|Proceeds on notes payable                                                                        
|Payments on notes payable                                                                        
|Borrowings from officer                                                                          
|Payments on advances from officer                                                                
|Net cash used (provided) by  financing activities                                                
|                                                                                                 
|Net decrease in cash and cash equivalents                                                        
|Cash and cash equivalents, beginning of period                                                   
|Cash and cash equivalents, end of period                                                         
|                                                                                                 
|Supplemental disclosures of cash flow information                                                
|Cash paid for taxes                                                                              
|Cash paid for interest                                                                           
|Non-cash investing and financing activities:                                                     
|Shares to be issued for payment of accrued activities                                            
|                                                                                                 
|The accompanying notes form an integral part of these unaudited consolidated financial statements













PHI GROUP, INC. AND SUBSIDIARIESNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - NATURE OF BUSINESS

PHI Group, Inc. (formerly Providential
Holdings, Inc.), (the “Company” or "PHI") a Nevada corporation established on June 8, 1982, is primarily
focused on energy and natural resources. The Company is in the process of divesting its interests in real estate and hospitality
development and other non-core business activities from its existing subsidiaries. The Company acquires and consolidates energy-related
assets and other natural resources, partners with international companies to develop independent power plant projects in Southeast
Asia, collaborates with certain U.S. companies to provide renewable energy solutions using wind, solar power and hydro-magnetic
gravitational systems to Asia Pacific markets, and arranges capital for energy-related and mineral projects.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements
include the accounts of PHI Group, Inc., and its subsidiaries, Providential Securities, Inc., PHI Capital Holdings, Inc., Provimex,
Inc., PHI Energy Corporation (formerly Providential Energy Corporation), Touchlink Communications, PHI Gold Corporation (formerly
PHI Mining Group), Providential Vietnam Ltd., and PhiLand Ranch Limited, collectively referred to as the "Company." All
significant inter-company transactions have been eliminated in consolidation. Providential Securities, Inc., Provimex, Inc., PHI
Energy Corporation, and Touchlink Communications are inactive.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited interim
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by accounting principles generally accepted in the United States
of America for complete financial statements. These statements should be read in conjunction with the audited financial statements
for the year ended June 30, 2011. In the opinion of management, all adjustments consisting of normal reoccurring accruals have
been made to the financial statements. The results of operation for the nine months ended March 31, 2012 are not necessarily indicative
of the results to be expected for the fiscal year ending June 30, 2012.

USE OF ESTIMATES

The preparation of financial
statements in conformity with generally accepted accounting principles 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 periods. 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 represents less than twenty percent (20%) of the outstanding common stock and stock equivalents of the investee, and
each security is quoted on either the “Pink Sheets” or the OTC Bulletin Board. As such, each investment is accounted
for in accordance with the provisions of 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 March 31, 2012, the marketable securities have been recorded at $910,791 based upon the fair
value of the marketable securities. (Note 5)

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is 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.

The Company's financial instruments
primarily consist of cash and cash equivalents, accounts receivable, marketable securities, 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.

PROPERTIES AND EQUIPMENTS

Property and equipment are carried
at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful life of
the assets from three to five years. Expenditures for maintenance and repairs are charged to expense as incurred.

DERIVATIVES

Derivative
instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair
value of a derivative depends on the intended use of the derivative and the resulting designation.

REVENUE RECOGNITION

The Company's revenue recognition
policies are in compliance with ASC 13 (previously Staff accounting bulletin (SAB) 104).  The Company recognizes consulting
and advisory fee revenues when the transaction is completed and the service fees are earned.   Expenses are recognized
in the period in which the corresponding liability is incurred. Payments received before all of the relevant criteria for revenue
recognition are recorded as unearned revenue.

RECENT ACCOUNTING PRONOUNCEMENTS

The
Financial Accounting Standards Board (the "FASB") issued a new professional standard in June of 2009 which resulted in
a major restructuring of U.S. accounting and reporting standards. The new professional standard, issued as ASC 105 ("ASC I
05"), establishes the Accounting Standards Codification ("Codification or ASC") as the source of authoritative accounting
principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental
entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States.
Rules and interpretive releases of the Securities and Exchange Commission ("SEC") issued under authority of federal securities
laws are also sources of GAAP for SEC registrants. Existing GAAP was not intended to be changed as a result of the Codification,
and accordingly the change did not impact the financial statements of the Company.

For
the year ending March 31, 2012, various Accounting Standard Updates ("ASU") issued by the FASB were either newly issued
or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year
then ended. The Company has reviewed the following ASU releases to determine relevance to the Company's operations:



|ASU No. | Title                                                                                                                                                                                                                                      | Effective Date         
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------
|2011-12 | Comprehensive Income (Topic 220): Deferral
        of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income
        in Accounting Standards Update No. 2011-05 | After December 15, 2011
|2011-11 | Balance Sheet (Topic 210): Disclosures
        about Offsetting Assets and Liabilities                                                                                                                                                     | After January 01, 2013 
|2011-10 | Property, Plant, and Equipment (Topic
        360): Derecognition of in Substance Real Estate—a Scope Clarification (a consensus of the FASB Emerging Issues Task Force)                                                                   | After December 15, 2013
|2011-09 | Compensation—Retirement Benefits—Multiemployer
        Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan                                                                                      | After December 15, 2012
|2011-08 | Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment                                                                                                                                                                | After December 15, 2011



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 pronouncement has either limited
or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements
taken as a whole.



NOTE 2– NASD EXAMINATION
AND DISCONTINUANCE OF PROVIDENTIAL SECURITIES, INC.



After the completion
of a routine audit of Providential Securities, Inc. ("Providential") in July and August 2000, the National Association
of Securities Dealers, Inc. alleged that Providential violated certain provisions of the NASD's Conduct Rules 2120, 2330, 2110
and 3010, and Rules 15c2-4, 10b-5, 10b-9 and 15c3-3 of the Securities and Exchange Commission. Providential Securities, Inc. and
Henry Fahman voluntarily submitted a Letter of Acceptance, Waiver and Consent ("AWC",), which was accepted by NASD Regulation,
Inc. on October 27, 2000.



Providential Securities,
Inc. was censured, fined $115,000.00 and required to offer rescission to those public customers who participated in the Providential
Private Placement.  In addition, Henry Fahman was banned, in all capacities, from associating with any NASD member. Based
upon the above-mentioned circumstances, Providential Securities, Inc. withdrew its membership from the NASD in October 2000 and
ceased its securities brokerage operation.  The fine of $115,000 is included in accrued expenses in the accompanying consolidated
financial statements.  The Company has offered all Preferred Stock holders rescission on their investment.  During the
year ended June 30, 2004, $235,000 from the amount due to Preferred Stock Holders plus $105,600 in related dividends payable totaling
$340,600 was paid either in cash or with the issuance of common stock. The balance of unredeemed preferred shares and the related
interest has been included in current liabilities on the accompanying consolidated financial statements (Note 12).





NOTE 3 –
LOANS RECEIVABLE FROM RELATED PARTIES



Loans receivable from related parties consist of the following
at March 31, 2011 and June 30, 2011:



|                                |  | March 31, 2012 |       | June 30, 2011
|------------------------------- |  | -------------- | ----- | -------------
|Loan to Catalyst Resource Group |  |                | 1,332 |              
|Loan to Catthai Corp.           |  |                | 2,700 |              
|Loan to Provimex                |  |                | 2,000 |              
|Total                           |  | $              | 6,032 |              





NOTE 4 – OTHER CURRENT ASSETS



The Other Assets comprise of the following as of March 31,
2012 and June 30, 2011:



|                            |  | March 31, 2012 |       | June 30, 2011
|--------------------------- |  | -------------- | ----- | -------------
|Advance for shares purchase |  | $              | 780   |              
|Other current assets        |  |                | 1,332 |              
|Total                       |  | $              | 2,112 |              





NOTE
5–MARKETABLE EQUITY SECURITIES
AVAILABLE FOR SALE

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 Pink Sheets.  As such, each investment is accounted for in accordance with the provisions of SFAS No. 115.

Marketable securities classified
as available for sale consisted of 1,746,500 shares of Vietnam Mining Corporation, a public company traded on the OTC Markets (Pinksheet:
VNMC) that were earned for consulting services rendered. The fair value of shares received was $174,650 as of September 30, 2011.



As of September 30, 2011, we recorded
$600,000 from 4,000,000 shares of common stock of Agent 155 Media Corp, a fully reporting company traded on the OTCQB at that time
(Symbol: AGMC), for consulting services to be rendered to Agent155 Media Corp by PHI Group, Inc. We used the closing price of $0.15
per share as of September 30, 2011 for recording purpose.



As of December 31, 2011, we recorded $120,000
from 4,000,000 shares of common stock of Agent 155 Media Corp, a fully reporting company traded on the OTCQB (Symbol: AGMC) at
that time, for consulting services to be rendered to Agent155 Media Corp by PHI Group, Inc. We used the closing price of $0.03
per share as of December 31, 2011 for recording purpose. There is no realized gain or loss on this transaction.



During the quarter ended March 31, 2012,
we converted $46,141.25 of promissory note in exchange for 3,076,073 shares of common stock of Agent155 Media Corp, a fully reporting
company traded on the OTCQB at that time (Symbol: AGMC). We used the closing price of $0.015 per share as of March 31, 2012. During
the same quarter, we sold 2,000,000 shares of common stock of Agent155 Media Corp to a third party for the purchased price of $0.001
per share and recorded a loss of $ 28,000.





NOTE 6 – PROPERTY
AND EQUIPMENT



Property and equipment at March
31, 2012 and June 30, 2011 consists of the following:



|                              |  | March 31, 2012 |          | June 30, 2011
|----------------------------- |  | -------------- | -------- | -------------
|Equipment                     |  | $              | 84,853   |              
|Furniture and Fixtures        |  |                | 69,953   |              
|                              |  |                |          |              
|Automobiles                   |  |                | 58,000   |              
|                              |  |                |          |              
|Subtotal                      |  |                | 206,806  |              
|Less Accumulated Depreciation |  |                | (205,976 | )            
|Total net fixed assets        |  | $              | 829      |              





Depreciation expenses
were $ 942 and $ 2,246 for the period ended March 31, 2012 and 2011, respectively.

NOTE 7–
OTHER ASSETS

During the quarter ended March
31, 2012, Philand Vietnam Ltd., a wholly owned subsidiary of the Philand Ranch Ltd., made a security deposit in the amount of $172,203
to the Chu Lai Open Economic Zone Authority, Quang Nam Province, Vietnam as a guarantee for its Pointe91 development project at
Bien Rang, Chu Lai, Nui Thanh District, Quang Nam Province, Vietnam. During the quarter ended June 30, 2011, the Company signed
a consulting agreement to assist Agent155 Media Corp., a Delaware corporation, with respect to its corporate restructuring and
business combination with Freshwater Technologies, Inc., a Nevada corporation.  As part of the restructuring requirements,
the Company made a payment to Manning Elliot LLP in the amount of $113,096 on behalf of Freshwater Technologies, Inc. to facilitate
the transaction between Agent155 Media Corp. and Freshwater Technologies, Inc. $46,141.25 of this amount was converted to 3,076,083
shares of Agent155 Media Corp.

NOTE 8 – CONSTRUCTION
IN PROGRESS



SFAS No. 34 “Capitalization
of Interest” establishes the standards for capitalizing interest cost as part of the historical cost of acquiring certain
assets. To qualify for interest capitalization, assets must require a period of time to get them ready for their intended use.
Example is an asset that an enterprise constructs for its own use or lease that is constructed as a discrete project, such as real
estate projects. Interest capitalization is required for those assets if its effect compared with the effect of expensing interest
is material. The interest cost eligible for capitalization shall be the interest cost recognized on borrowings and other obligations.



Construction
in progress represents the costs incurred by Philand Corporation, a subsidiary of the Company for real estate development amounting
to$1,308,832 as of March 31, 2012. The costs included interest capitalized of $611,600.



NOTE 9 – ACCOUNTS
PAYABLE AND ACCRUED EXPENSES



The accounts payable and accrued expenses
at March 31, 2012 and June 30, 2011 consist of the following:



|                                    |  | March 31, 2012 |           | June 30, 2011
|----------------------------------- |  | -------------- | --------- | -------------
|Accounts payable & Accrued Expenses |  | $              | 1,388,617 |              
|Accrued salaries and payroll taxes  |  |                | 460,482   |              
|Accrued interest                    |  |                | 2,735,500 |              
|Accrued legal fees                  |  |                | 396,294   |              
|Accrued consulting fees             |  |                | 173,870   |              
|Total                               |  | $              | 5,154,764 |              





NOTE 10 – DUE TO
OFFICER



Due to
officer, represents advances made by officers of the Company and its subsidiaries, which are non-interest bearing, except for $100,000
as described below, unsecured and due on demand. As of March 31, 2012 and June 30, 2011, the balances were $1,567,363 and$1,365,949, respectively.



As of March 31, 2012, the Company
has a short term note payable amounting $100,000 with interest bearing $3,000 per month payable to a member of the Board of Directors.



NOTE 11 – LOANS
AND PROMISSORY NOTES



SHORT TERM NOTES PAYABLE:



As of March 31, 2012 and June 30,
2011, the Company had short-term notes payable amounting to $2,403,956, and $2,432,456 with accrued interest of $2,735,500 and
$2,165,264 respectively. These notes bear interest rates ranging from 6% to 36% per annum. $1,739,982 of these short-term notes
is past due and $258,976 is due on demand.

Some of the notes payable are
secured by assets of the Company as summarized below:

| | Note Balance |         | Secured by |                                             
| | ------------ | ------- | ---------- | --------------------------------------------
| | $            | 115,000 |            | 400,000 Catalyst Resource Group, Inc. shares
| |              |         |            | 500,000 Catthai Corporation shares          
| | $            | 550,000 |            | 35,000 Cavico Corp. shares                  
| |              |         |            | 500,000 Catthai Corporation shares          
| | $            | 150,000 |            | 1,500,000 PHI Gold Corp. shares             
| | $            | 100,000 |            | 1,500,000 PHI Gold Corp. shares             





CONVERTIBLE
PROMISSORY NOTE.The last Convertible Promissory Note issued to Asher Enterprises, Inc. (“Asher”) on June 17,
2011 was $42,500, with interest of 8% per annum, due and payable March 21, 2012. This note is convertible at the election of Asher
from time to time after the issuance date, at 39% discount to the average of the lowest closing bid prices for the Company’s
common stock during the ten trading day period ending on the latest complete trading prior to the conversion date. In the event
of default, the amount of principal and interest not paid when due bear interest at the rate of 22% per annum and the note becomes
immediately due and payable. Should that occur, the Company is liable to pay Asher 150% of the then outstanding principal and interest.
The note agreements contain covenants requiring Asher’s written consent for certain activities not in existence or not committed
to by the Company on the issue date of the note. Outstanding note principal and interest amounts accrued thereon can be converted
in whole, or in part, at any time by Asher after the issuance date into an equivalent of the Company’s common stock determined
by the discount rate mentioned in the note.



Additionally, the note contains a reset provision to
the exercise price and conversion price if the Company issues equity or other derivatives at a price less than the exercise price
set forth in such warrants and note. This ratchet provision results in a derivative liability in our financial statements.



On 7/25/2011, $10,000 principal of the
convertible note issued on January 11, 2011 was converted into an equivalent of 1,550 shares of post-split common stock of the
Company (2,325,581pre-split shares).



On 8/8/2011, $12,000 principal of the
convertible note issued on January 11, 2011 was converted into an equivalent of 1,633 shares of post-split common stock of the
Company (2,448,980 pre-split shares).



On 8/30/2011, $15,000 principal of the
convertible note issued on January 11, 2011 was converted into an equivalent of 2,941 shares of post-split common stock of the
Company (4,411,765 pre-split shares).



On 10/21/2011, $8,000 principal of the
convertible note issued on January 11, 2011 was converted into an equivalent of 2,667 shares of post-split common stock of the
Company (4,000,000 pre-split shares).



On 11/22/2011, $10,000 principal of the
convertible note issued on January 11, 2011 was converted into an equivalent of 5,083 shares of post-split common stock of the
Company (7,625,000 pre-split shares).



On 01/03/2012, $10,000 principal of the
convertible note issued on June 17, 2011 was converted into an equivalent of 4,444 shares of post-split common stock of the Company
(6,666,667 pre-split shares).



On 01/11/2012, $11,000 principal of the
convertible note issued on June 17, 2011 was converted into an equivalent of 5,641 shares of post-split common stock of the Company
(8,461,538 pre-split shares).



On 03/01/2012, $12,000 principal of the
convertible note issued on June 17, 2011 was converted into an equivalent of 5,741 shares of post-split common stock of the Company
(8,571,429 pre-split shares).



As of March 31, 2012, the principal balance
of the last convertible promissory note issued to Asher dated June 17, 2011 was $9,500. The value of the derivative liability recorded
at March 31, 2012 was $14,805.



DUE TO PREFERRED STOCKHOLDERS:



The Company classified $215,000
of preferred stock subscribed as a current liability payable to holders of preferred stock due to non-compliance of preferred shares
subscription agreement. This amount was past due as of June 30, 2011.

The interest payable to holders
of preferred stock of $303,605 and $277,805 has been included in accrued interest included in account payable and accrued expenses
on the balance sheets as of March 31, 2012 and March 31, 2011, respectively.

UNEARNED REVENUE



The total amount of Unearned Revenue of
$563,219 consists of consulting fees for services to be performed by the Company that have not been completed as of March 31, 2012.
Among this total amount: (1) $293,219.21 is attributed to the Consulting Agreement dated May 21, 2010 with Thinh Hung Investment
Co. and (2) $270,000 is attributed to two Consulting Agreements dated July 26, 2011 and October 27, 2011 with Agent155 Media Corp.,
respectively. The Company has realized $26,656.29 as earned revenue for assisting Thinh Hung Investment Co.’s subsidiary
in a business combination with a U.S. company but has not realized the balance of $293,219.21 because the Company has not completed
the registration for the combined company to become a publicly traded entity. With respect to the Consulting Agreements with Agent155
Media Corp., since the term of each of these agreements is one year, the Company realizes the earned portion of revenues according
to the actual length of time that has elapsed for each contract.



OTHER CURRENT LIABILITIES



Other current liabilities of $30,000 as
of March 31, 2012 represent a refundable deposit in connection with a consulting agreement between the Company and its client.
These amounts are shown as other current liabilities on the consolidated financial statements.



NOTE 12 – LITIGATION



LEGAL PROCEEDING SETTLED AND UNPAID AS OF MARCH 31, 2012:



QUANG VAN CAO AND NHAN THI NGUYEN CAO
VS. PROVIDENTIAL SECURITIES, INC. ET AL.



This case was originally submitted to
Orange County Superior Court, CA on June 25, 1997, Case No. 781121, and subsequently moved to NASD Dispute resolution for arbitration.
On or about August 24, 2000, the Company's legal counsel negotiated with the Claimant's counsel and unilaterally reached a settlement
that had not been approved by the Company. While the Company was in the process of re-negotiating the terms of said settlement,
the Claimants filed a request for arbitration hearing before the National Association of Securities Dealers on October 4, 2000,
Case No. 99-03160. Thereafter, the Claimants filed a complaint with the Orange County Superior Court, CA on October 31, 2000, Case
No. 00CC13067 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 whereby the Company would pay the Claimants a total of $62,500 plus $4,500 in administrative costs. As the date
of this report, the Company has paid $2,500 and is subject to an entry of judgment for $79,000. In May 2011, the Claimants filed
an application for the renewal of judgment for a total of $140,490.78. This amount has been accrued in the accompanying consolidated
financial statements.



PENDING LITIGATION:



DAVIDSON VS. DOAN ET AL.



On or about February 01, 2010, the company
was notified of a suit 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, an individual against Martin Doan, Henry Fahman, HRCiti Corporation, and Providential Capital, Inc.
(collectively referred to as “Defendants” - Case No. BC 426831). Plaintiff demanded an amount of not less than $140,000.00
from Defendants for promissory notes outstanding between Plaintiff and the company. The Company has accrued the potential liabilities
associated with these promissory notes in the accompanying consolidated financial statements as of March 31, 2012. This case was
settled on July 09, 2012 (Note 22: Subsequent Event).



NOTE 13
– PAYROLL LIABILITIES

The payroll liabilities
are accrued and recorded as accrued expenses in the consolidated balance sheet. As of March 31, 2012, the Company owed the Internal
Revenue Service and the State of California Employment Development Department payroll tax, penalties and interest amounting to
$112,972. The Company is currently working with the Internal Revenue Service and the State of California Employment Department
to resolve these matters.

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 period ended
March 31, 2012 were the same since the inclusion of Common stock equivalents is anti-dilutive.



NOTE
15–STOCKHOLDER'S EQUITY



The total number
of authorized capital stock of the Company is 400,000,000 shares with a par value of $0.001 per share, consisting of 300,000,000
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 Preferred Stock will be determined by the Board of Directors of the
Company.



On March 15,
2012, the Company effectuated a 1 for 1,500 reverse split of the Company’s Common Stock, resulting in a total of 173,289
issued and outstanding shares of Common Stock as of March 31, 2012.



Treasury Stock:



The balance of treasury stock as
of March 31, 2012 was 887 post-split shares (1,330,440 pre-split shares) valued at par, $1.00

Common Stock:



As of March 31, 2012, there were 173,289
post-split shares of Common Stock of the Company issued and outstanding. During the quarter ended March 31, 2012 the Company issued
15,800 shares of post-split Common Stock valued at $33,000 for conversion of the Asher Enterprises’ Convertible Promissory
Note dated June 17, 2011.



Preferred
Stock:There is no preferred stock issued and outstanding.



Shares to be issued:



On 06/09/2006, Luberski Inc. transferred
and subsequently sold 1,000,000 pre-split shares of common stock of PHI Group, Inc. belonging to an officer of the Company that
had been given to Luberski, Inc. as collateral for a loan to the Company. As of June 30, 2007, the Company agreed to pay back 1,000,000
pre-split shares valued at $57,000 to the officer and recorded the transaction as shares to be issued.



NOTE
16 – STOCK BASED COMPENSATION PLAN



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.

Warrants:



During the quarter ended September 30,
2006, the Company issued 250,000 pre-split stock warrants with a term of 5 years and a three-year vesting period.  The following
assumptions were used in the Black-Scholes pricing model:





|Risk-free interest rate | 4.64%     
|----------------------- | ----------
|Expected life           | 5.00 years
|Expected volatility     | 198%      
|Expected dividend yield | 0%        



Following is a summary of the warrant activity for the year ended
June 30, 2011





|                                | Warrants outstanding | Exercise Price | Aggregate Intrinsic Value
|------------------------------- | -------------------- | -------------- | -------------------------
|Outstanding, June 30, 2011      | 250,000              | $0.015         | $3,000                   
|Granted                         | -                    |                | -                        
|Forfeited                       | -                    |                | -                        
|Exercised                       | -                    |                | -                        
|Outstanding, September 30, 2011 | 250,000              | $0.015         | $3,000                   





These warrants expired on August 31, 2011.





NOTE
17–LOSS ON SETTLEMENT OF DEBTS



The Company settled the notes payable
principal and related accrued interest of Asher Enterprise Inc. totaling $88,000 by issuance of 29,675 post-split shares of its
common stock for the fair value of $ 217,577.  As a result, the Company recorded a loss of $32,808 on settlement of debts
as of March 31, 2012. For the same period in the prior year, the Company recorded a loss of $41,596 on settlement of debts.



NOTE
18–RELATED PARTY TRANSACTIONS



The Company accrued $52,500 in salaries
for Henry Fahman (President of the Company) and Tina Phan (Secretary and Treasurer of the Company) during the quarters ended March
31, 2012 and March 31, 2011.



NOTE
19–CONTRACTS AND COMMITMENTS



AGREEMENT WITH HAWK ASSOCIATES, INC.



On August 11, 2006, the Company entered
into an investor relations consulting agreement with Hawk Associates, Inc., a Florida corporation, to be effective September 1,
2006. According to the agreement, Hawk Associates would provide investor relations consulting services to the Company for a period
of six months, after which the agreement would automatically renew monthly until notice is provided by one of the parties to the
other. The Company agreed to pay Hawk Associates $4,500 per month for the investor relations consulting services and Hawk Associates
would be issued warrants to purchase 250,000 common shares of the Company based on the closing price of $0.015 per share as of
September 1, 2006. These warrants were valid until August 30, 2011.



BUSINESS AND FINANCIAL CONSULTING AGREEMENT
WITH MAST VENTURES, LLC



Effective April 1, 2008, the Company entered
into a business and financial consulting agreement with Mast Ventures, LLC to raise capital for a wholly owned subsidiary,
PhiLand Corporation for 5 years. The service includes assistance identifying potential investors, developing an approach in seeking
such current financing and investor relations. The Company agreed to pay 5% of the total funds raised by the consultant.



BUSINESS AND FINANCIAL CONSULTING AGREEMENT
WITH THINH HUNG INVESTMENT CO.



Effective May 21, 2010 the Company signed
an agreement with Thinh Hung Investment Co., Ltd., a Vietnam-based company, to assist Thinh Hung in identifying, locating and,
possibly, acquiring various business opportunities for Thinh An Co., Ltd., a subsidiary of Thinh Hung, including but not limited
to a reverse merger, a stock swap, or a business combination between Thinh An and a publicly-traded company in the U.S. In exchange
for the services rendered, the Company would receive compensation in cash from Thinh Hung and common stock of the combined company.
As of September 30, 2011, the Company has completed a stock purchase and investment agreement between Thinh Anh Co., Ltd. and Vietnam
Foods Corporation, a Nevada corporation. However, the combined company has not filed a registration statement with the Securities
and Exchange Commission to become a reporting company. For the fiscal year end 2010, the Company recognized $26,656 as only revenues
from this transaction. The balance of $293,219 was booked as unearned income in the liability portion of the balance sheet.



LAND LEASE AGREEMENT



On July 15, 2011, Philand Vietnam Ltd.
a wholly owned subsidiary of Philand Ranch Ltd. signed a land lease agreement with the Authority of Chu Lai Open Economic Zone
(“CLOEZA”), Quang Nam Province, Vietnam for the first 23.55 hectares of land as part of the total area that has been
approved by the CLOEZA for the Pointe91 luxury resort and residential community project. On the same date, CLOEZA issued a decision
to allow Philand Vietnam Ltd. to lease said 23.55 hectares of land. The duration of the lease will be fifty years and will expire
in April 2061. Annual lease payment will be VND 4,235 per square meter, equivalent to VND 997,342,500 for 23.55 hectares, for the
first five years from April 28, 2011 to April 28, 2016 and will be adjusted for subsequent five-year intervals until expiration.



LAND USE RIGHTS



On August 4, 2011, the People’s
Committee of Quang Nam Province issued a Certificate of Land Use Rights to Philand Vietnam Ltd. for the initial 23.55 hectares
of land as part of the total area that has been approved by the Authority of Chu Lai Open Economic Zone for the Company’s
Pointe91 luxury resort and residential community development project.





AGREEMENT OF PURCHASE AND SALE WITH PT.
BINDAKAR



On December 17, 2011, the Company signed an Agreement
of Purchase and Sale with PT. Bindakar, an Indonesia corporation, to acquire approximately 2,670 hectares of coal concession in
Marga Mulya, Kecamatan Rambah Samo, Kabupaten Rokan Hulu, Propinsi Riau, Indonesia from PT. Bindakar for a total purchase price
of twenty five billion Indonesian Rupiahs. According to the agreement, PT. Bindakar will pay all and any liabilities related to
the acquired assets and obtain a valid IUP Production License for the coal concession prior to the intended closing date of March
31, 2012. This Agreement may be terminated at any time prior to the closing date: (a) by mutual agreement of PT. Bindakar and the
Company; (b) if there is another buyer to the acquired assets who can close the transaction sooner than the Company; (c) if PT
Bindakar is unable to obtain the IUP Production License by March 30, 2012, unless both parties agree to extend such date in writing;
(d) if there is a material breach by either party of any material representation, warranty, covenant or agreement set forth in
the agreement that is not cured, to the reasonable satisfaction of the other party, within ten business days after notice of such
breach is given by the informing party; (e) if the transaction contemplated by the Agreement of Purchase and Sale is not consummated
by March 31, 2012 unless both parties agree to extend such closing date in writing; and (f) if any injunction or other order of
a governmental entity of competent authority prevents the consummation of the transaction contemplated by the agreement. As of
March 31, 2012, this Agreement of Purchase and Sale became null and void due to the fact that PT Bindakar was unable to obtain
the IUP Production License by the date mentioned above.

AGREEMENT WITH POWERDYNE INDUSTRIES, LLC.

On December 5, 2011, the Company signed Business Cooperation
Agreement with Powerdyne Industries, LLC, a California limited liability company, and STN Group, LLC, a California limited liability
company, to introduce Powerdyne’s clean coal combustion technologies to potential power plant owners and operators in various
geographical areas that are not limited by Powerdyne’s worldwide rights. This Agreement expired one year after the signing
date (Note 22: Subsequent Event).

AGREEMENT WITH SAO NAM GROUP

On December 22, 2011, the Company signed an Memorandum of
Understanding for Investment in Quang Tri Power Plant, central Vietnam, with Sao Nam Group, a Vietnamese company, to introduce
and provide the necessary, legal and other relevant information relating to a financial investor, equipment and technology supply
from Powerdyne Industries, LLC, and long-term coal supply for the project from Indonesia, to arrange pertinent organizations and
individuals for mutual meetings with Saonam Group to exchange and discuss further details regarding the project, and to coordinate
with Saonam Group to conduct a feasibility study of the project for the purpose of establishing one or more power plants in Quang
Tri Province.



AGREEMENT WITH HOANG NGOC JOINT STOCK COMPANY



On December 23, 2011, the Company
signed a Business Cooperation Agreement with Hoang Ngoc Joint Stock Company, a Vietnamese corporation, to cooperate with Hoang
Ngoc Co. in order to obtain the investment license, provide the required technologies, arrange the investment capital for the purpose
of establishing and operating one or more coal-fire power plants in An Giang Province, Vietnam. Specifically, PHI shall invest
or cause to be invested the required capital in conjunction with and/or via its qualified affiliates and partners (hereinafter
referred to as “Principal Investor(s)”) which have long-standing operational history in the area of thermal power;
provide or cause to be provided the required technical expertise in conjunction with and/or via its qualified affiliates and partners
to establish, operate, and maintain the Power Plants; and grant the Power Plants the first right of refusal on certain coal supplies
that will have been owned or controlled by PHI during the lifetime of the Power Plants, subject to terms and conditions to be detailed
in subsequent agreement(s).

On March 18, 2012, Indochina Energy Ltd., a new-formed subsidiary
of the Company, signed an Investment Agreement with Hoang Ngoc Joint Stock Company to jointly cooperate with Hoang Ngoc Co. in
order to obtain the investment license, provide the required technologies, arrange the investment capital for the purpose of establishing
and operating one or more coal-fire power plants in An Giang Province, Vietnam, in accordance with the Business Cooperation Agreement
dated December 23, 2011 between the Company and Hoang Ngoc Co. This Investment Agreement was subsequently superceded and replaced
by the Investment Agreement dated April 5, 2012 whereby PHI Group, Inc. covenants to continue to provide the clean coal technology
and long-term coal supply to the power plants pursuant to the afore-mentioned Business Cooperation Agreement dated December 23,
2011.



NOTE
20–GOING CONCERN UNCERTAINTY

As shown in the accompanying consolidated
financial statements, the Company has accumulated deficit of $ 28,502,071 and cash flow from operations amounting $134,435 for
the period ended March 31, 2012. 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. The company
currently has a significant asset balance labeled construction in progress, a real estate project called Pointe 91 in Vietnam.
However, this balance represents cost incurred and capitalized interest on borrowed funds [See Note 8]. This balance is also subject
to the Company’s commitment with Vietnamese governmental authorities to carry out the development of Pointe 91 real estate
project in Chu Lai, Quang Nam Province, Vietnam. Management has taken action to provide sufficient cash to meet its operating
needs through December 31, 2012 and beyond.  In the next twelve months, the Company will mainly focus on acquisition
of coal assets, international trade involving coal, oil, gold, iron ores, and other industrial commodities, and investment in natural
resources. The Company plans to continue divesting its interests in real estate and hospitality development, mergers and acquisitions
and consulting services, and other non-core business activities. The Company anticipates generating more revenues through its energy-related
business, especially coal production and trading in the near future. No assurances can be made that management will be successful
in achieving its plan. The president and chairman of the Company has committed to funding the Company's operations for the next
twelve months.

NOTE 21 –NON-CONTROLLING INTERESTS IN SUBSIDIARIES

The Company had non-controlling interests in a number of its
subsidiaries. The balance of non-controlling interest as of March 31, 2012 and June 30, 2011 was as follows:



SUBSIDIARY Non-controlling interest % Non-controlling interest
as of 3-31-2012

Philand Ranch Ltd (A) 57.00% 	 59,852

PHI Gold Corp. (B) 79.00%	 3,495

Total:	 63,347



SUBSIDIARY Non-controlling interest % Non-controlling interest
as of 6-30-2011

Philand Ranch Ltd (A) 58.00% 	 84,785

PHI Gold Corp. (B) 82.00%	 1,873

Total:	 86,622

(A) Philand Ranch Limited

For the nine-month periods ended
March 31, 2012 and 2011 Philand Ranch Limited had net loss of $138,587 and $254,419, respectively.

(B) Phi Gold Corp (f/k/a PHI Mining
Group)

For the nine-month periods ended March
31, 2012 and 2011 PHI Gold Corp (f/k/a PHI Mining Group) had net loss of $16,340 and $16,951, respectively.

NOTE
22 –SUBSEQUENT EVENT

AGREEMENT WITH GLOBAL SUN WIND
& POWER CORP.: On April 27, 2012 the Company signed a Business Cooperation Agreement with Global Sun Wind & Power Corp.,
a Nevada corporation, to cooperate with GSWP to introduce GSWP technologies to the countries of Southeast Asia, (viz. Brunei, Burma,
East Timor, Cambodia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam), India, New Papua Guinea, and Australia, and
to develop, finance, and implement business plans using GSWP technologies for electricity generation in these geographical areas
that are not restricted by other agreements or contracts to which either GSWP or the Company is a party. Global Sun Wind &
Power manufactures one of the most innovative wind turbines in the world on the market today. It also offers complete hybrid power
systems incorporating wind, solar, mini-hydro, diesel backup systems and state-of-the art battery storage technologies. GSWP’s
systems are highly efficient in both grid-connected and off-grid applications. This Business Cooperation Agreement expired one
year after the signing date.

CORPORATE COMBINATION AGREEMENT
BETWEEN PROVIMEX, INC. AND HP.ITA JSC: On June 19, 2012, Provimex, Inc. changed its name to HP.ITA Corporation. On July 20, 2012,
HP.ITA Corporation (“HPUS”) signed a Corporate Combination Agreement to acquire all the issued and outstanding stock
of HP.ITA Joint Stock Company, a company organized and existing under the laws of Vietnam, in exchange solely for such amount of
authorized but unissued common stock of HPUS that will have been equal to 95% of all the issued and outstanding shares of HPUS’s
common stock immediately following the issuance of such shares. HPUS intends to complete the required financial audits and file
a Form 10 registration statement with the Securities and Exchange Commission to become a separate fully reporting publicly traded
company in the U.S.

SETTLEMENT OF LITIGATION: On July
09, 2012 William Davidson and PHI Capital Holdings, Inc. (formerly Providential Capital, Inc.), a subsidiary of the Company, reached
a settlement agreement with respect to Case No. BC 426831 – DAVIDSON vs. DOAN et al whereby PHI Capital agreed to pay William
Davidson a total of $200,000 over a period of nineteen months beginning September 1, 2012. As of June 30, 2013, William Davidson
has elected to convert a portion of the total amount into common stock of PHI Group, Inc. in lieu of cash payment.

AGREEMENT WITH GLOBAL DEVELOPMENT
SYSTEMS, INC.: On or about August 11, 2012 the Company signed a Business Cooperation Agreement with Global Development Systems,
Inc., a Texas corporation, to market a renewable energy electricity generation using Global Development Systems, Inc.’s proprietary
hydro-magnetic gravitational renewable energy technologies. The term of this agreement is two years.

OFFICE RENTAL AGREEMENT: On August 11, 2012, the Company
signed an agreement to rent a business center office in Las Vegas, Nevada for approximately $100 per month. The one-year term of
the rental agreement will expire in August 2013 and continue on a month-to-month basis until terminated.

AGREEMENT WITH MAKANI POWER, INC.: On August 16, 2012
the Company signed a Business Cooperation Agreement with Makani Power, Inc., a Delaware corporation, to market a renewable energy
electricity generation system using Makani Power’s proprietary airborne wind turbine technology. The term of this agreement
is two years.

RESIGNATION OF BOARD MEMBER: On November 27, 2012, Paul
Nguyen submitted a Letter of Resignation to resign from the Company’s Board of Director. There was no disagreement between
Mr. Nguyen and the Company regarding any of the Company’s policies and/or practices.

TERMINATION OF BUSINESS COOPERATION AGREEMENT WITH POWERDYNE
INDUSTRIES, LLC: The Business Cooperation Agreement with Powerdyne Industries, LLC expired after one year on December 4, 2012.
Both parties chose not to renew this agreement.

AGREEMENT WITH HAPPENEX HOLDING,
BV: On December 22, 2012, the Company signed a Business Cooperation Agreement with Happenex Holding, BV, a Dutch corporation, to
cooperate in international trade of coal and other natural resource commodities. The term of this agreement is two years.

AGREEMENT OF PURCHASE AND SALE
WITH PT. TAMBANG SEKARSA ADADAYA: On December 24, 2012, the Company signed an Agreement of Purchase and Sale with PT. Tambang Sekarsa
Adadaya (“TSA”), an Indonesian limited liability company, and the holder(s) of a minimum of seventy percent (70%) of
equity ownership in TSA to acquire a seventy percent (70%) equity interest in TSA in exchange for a total purchase price of ten
million five hundred thousand U.S. dollars ($US 10,500,000) in cash and stock of the Company. TSA currently owns two coal concessions
together with the operation and production licenses (Izin Usaha Pertambangan Operasi Produksi) and the other pertinent license(s)
and permits covering a total area of 9,690 hectares, purportedly containing approximately 205 million metric tonnes of indicative
coal resources, in Kecamatan Baras and Sarudu, Kabupaten Mamuju Utara, Propinsi Sulawesi Barat, Indonesia. On January 10, 2013,
the Company issued 3,288,443 shares of common stock of PHI Group, Inc. as a deposit towards the total purchase price. On March
16, 2013, the Company signed an amendment with TSA and the majority shareholder of TSA to extend the closing date of this transaction
to June 30, 2013. The Company engaged PT Runge Indonesia, a subsidiary of RungePincockMinarco, an Australian company, to conduct
the independent technical due diligence of the TSA coal concessions and ES&P Law Firm, an Indonesia legal firm, to conduct
the legal due diligence of TSA. Since the technical, legal, and financial due diligence results were incomplete by the extension
date, this transaction was terminated on June 30, 2013. However, the Company and TSA have recently continued to renegotiate the
terms and conditions for a revised transaction.

AGREEMENT WITH HP.ITA JSC: On January 11, 2013 the Company
signed a Business Cooperation Agreement with HP.ITA Joint Stock Company, a company organized and existing under the laws of Vietnam,
to participate in international trade of base and precious metals and cross-border financial intermediation. The term of this agreement
is two years.

BUSINESS AND FINANCIAL CONSULTING AGREEMENT: On January
16, 2013, PHI Capital Holdings, Inc., a subsidiary of the Company, signed an agreement with HPI, a company organized and existing
under the laws of Vietnam, to provide business and consulting services to HPI. The term of this agreement is six months and the
fee compensation is one hundred thousand US dollars. As of the date of this report PHI Capital Holdings has not received any payment
for this agreement.

AGREEMENT WITH ES&P LAW FIRM: On January 25, 2013,
the Company signed an agreement to retain ES&P Law Firm, an Indonesian advocate and legal consultant firm, to conduct the legal
due diligence on behalf of the Company in connection with the PT Tambang Sekarsa Adadaya acquisition. The Company agreed to pay
ES&P Law Firm $10,000 in cash and $50,000 in restricted common stock of PHI Group, Inc.’s for legal services related
to this contemplated acquisition.

AGREEMENT WITH COLEBRAND INTERNATIONAL LTD.: On January
28, 2013 the Company signed a Business Cooperation Agreement with Colebrand International Ltd., a company organized and existing
under the laws of the United Kingdom, to cooperate in international trade and financial intermediation. The term of this agreement
is two years.

AGREEMENT WITH PT RUNGE INDONESIA:
On February 6, 2013, the Company signed an agreement to retain PT Runge Indonesia, a subsidiary of RungePincockMinarco, an Australian
company, to provide technical assistance to the Company in developing a potential JORC Resources and Reserves statement for open
cut coal deposit in PT Tambang Sekarsa Adadaya’s concessions located in Sulawesi Barat, Indonesia. According to the agreement,
PT Runge Indonesia will conduct the technical due diligence in several stages in order to provide an estimate of Resources and
Reserves compliant with the JORC Code and the Company will be invoiced as work progresses.

AGREEMENT WITH PACA: On February
25, 2013, PHI Capital Holdings, Inc., a subsidiary of the Company, signed a consulting/engagement agreement with PACA, a New York
corporation, to contemplate raising capital for the purpose of financing PHI Group, Inc.’s business plan including acquisition
of various energy properties and general working capital. The term of the engagement is two years. PACA will be entitled to cash
success fee and equity success fee for each successful financing transaction.

AGREEMENT OF PURCHASE AND SALE
WITH PT. HARJO MAS MAKMUR: On March 16, 2013, the Company signed an Agreement of Purchase and Sale with PT. Harjo Mas Makmur, (“HMM”),
an Indonesian limited liability company, and the holder(s) of a minimum of ninety-five percent (95%) of equity ownership in HMM
to acquire a ninety-five percent (95%) equity interest in HMM in exchange for a total purchase price of eight million five hundred
fifty thousand U.S. dollars ($US 8,550,000) in cash and stock of the Company. HMM currently owns a producing coal concession with
the operation and production licenses (Izin Usaha Pertambangan Operasi Produksi) and other pertinent license(s) and permits covering
a total area of 745 hectares in Kelurahan Mentawir, Kecamatan Sepaku, Kabupaten Penajam Paser Utara, Propinsi Kalimantan Timur,
Indonesia, together with production, support, and transportation facilities. As of June 16, 2013 the Company decided not to pursue
this transaction due to unsatisfactory due diligence results.

TERMINATION OF BUSINESS COOPERATION AGREEMENT WITH GLOBAL
SUN WIND & POWER CORP.: The Business Cooperation Agreement with Global Sun Wind & Power Corp. expired after one year on
April 26, 2013. Both parties chose not to renew this agreement.

INDONESIAN OFFICE RENTAL AGREEMENT: On May 7, 2013,
the Company signed an agreement with PT Karya Central Bisnis, an Indonesian company, to rent a business center office in Pondok
Indah, South Jakarta, Indonesia. The term of this agreement is one year and will expire in May 2014, unless renewed.

AGREEMENT WITH PT RAKSASA METAL AGUNG: On June 29, 2013
the Company signed a Business Cooperation Agreement with PT. Raksasa Metal Agung (“Agung”), an Indonesian company,
to co-develop gold mining projects in Central Java, Indonesia. Subsequently, Agung and the Company signed two addenda to the Business
Cooperation Agreement, dated October 7, 2013 and January 29, 2014, respectively, to set forth the capital requirements for the
gold mining projects and the profit sharing agreement. According to the addenda, the Company will be entitled to 60% and Agung
40% of the net profits to be derived from these operations. The second addendum also allows the Company to right to assign the
responsibilities and benefits in connection with this Business Cooperation Agreement to Vietnam Mining Corporation, a Nevada corporation,
or another entity.

AGREEMENT WITH PACIFIC ENERGY NETWORK

On August 16, 2013 the Company signed a Business Cooperation
Agreement with Pacific Energy Network, Inc., a Washington corporation, to cooperate with each other to develop and implement conventional
and renewable energy business projects in geographical areas and under terms and conditions that are mutually acceptable to both
parties. The term of this agreement is two years.

WITHDRAWAL FROM POINTE91 HOSPITALITY DEVELOPMENT PROJECT
BY PHILAND RANCH LTD.

On September 20, 2013, Philand Vietnam Limited, a wholly-owned
subsidiary of Philand Corporation, submitted a request to the Chu Lai Open Economic Zone Authority (“CLOEZA”), Quang
Nam Province to voluntarily withdraw from the Pointe91 hospitality development project in Tam Quang Village, Nui Thanh District,
Quang Nam Province and surrender the investment license due to changed market conditions. After a meeting was held on October 28,
2013 among CLOEZA, Ky Ha Chu Lai Investment and Development Company (“KHCLIDC”) and Philand Vietnam Ltd., CLOEZA agreed
to Philand Vietnam Ltd’s request for the termination of the Pointe91 development project and instructed the appropriate CLOEZA
departments and KHCLIDC to return the unspent deposits to Philand Vietnam Ltd. and to assist it in the termination process.

AGREEMENT WITH VINABENNY ENERGY JOINT STOCK COMPANY

On November 12, 2013 the Company signed a Business Cooperation
and Investment Agreement with Vinabenny Joint Stock Company, a Vietnamese company, to cooperate and co-develop, invest or cause
to be invested in, implement and operate a 84,000 MT LPG terminal project in Can Giuoc District, Long An Province, Vietnam. Both
parties will agree on the roles, responsibilities and benefits of each party in connection with the terminal project in a separate
subsequent agreement. The term of this agreement is one year.

AGREEMENT WITH NE NORD ENERGY JOINT STOCK COMPANY

On November 14, 2013 the Company signed a Business Cooperation
and Investment Agreement with NE Nord Energy Joint Stock Company, a Vietnamese company, to cooperate, co-develop, invest or cause
to be invested in, produce, market and sell LED lighting, solar energy, kinetic power supply system, renewable energy, and other
energy-related products and services in geographical areas and markets that deem economically beneficial to both parties. The term
of this agreement is two years.

BUSINESS AND FINANCIAL CONSULTING AGREEMENT WITH ASIA
GREEN CORP.

On January 17, 2014 PHI Capital Holdings, Inc., a wholly-owned
subsidiary of the Company, signed a Business and Financial Consulting Agreement with Asia Green Corp. (“Asia Green”),
a Vietnamese company engaged in afforestation and reforestation projects in Vietnam, to assist Asia Green in becoming a fully reporting
publicly traded company in the United States and in arranging capital for Asia Green to execute its business plan. PHI Capital
Holdings is entitled to receive six hundred twenty thousand U.S. dollars as compensation for the services rendered. The term of
this agreement is one year or until Asia Green has become a fully reporting public company.

STOCK PURCHASE AGREEMENTS FOR COMMON STOCK OF VIETNAM
MINING CORPORATION

On January 24, 2014 the Company signed stock purchase
agreements to acquire a total of fourteen million shares of common stock of Vietnam Mining Corporation (“VNMC”), a
Nevada corporation, from two individuals for a total purchase price of $141,175.00. The closing of these transactions is scheduled
to occur on the twentieth business day following VNMC’s regaining current and good standing status with the State of Nevada,
OTC Markets, its transfer agent(s), Depository Trust Corporation, and other pertinent entities.

CONSULTING ENGAGEMENT AGREEMENT WITH VIETNAM MINING
CORPORATION

On January 24, 2014 PHI Capital Holdings, Inc., a wholly-owned
subsidiary of the Company, signed a Consulting Engagement Agreement with Vietnam Mining Corporation (“VNMC”), a Nevada
corporation, to assist VNMC to regain its current and good standing status with the pertinent regulatory agencies in the United
States and certain private service providers and to seek new business opportunities for VNMC. PHI Capital Holdings is entitled
to receive four million shares of restricted common stock of VNMC pursuant to the provisions of Rule 144 as compensation for the
services rendered. The term of this agreement is six months.

MEMORANDUM OF UNDERSTANDING WITH PT BUMI PERMATA INDONESIA

On January 29, 2014 the Company signed a Memorandum
of Understanding (“MOU”) with PT Bumi Permata Indonesia, an Indonesian company, to co-develop a 199-hectare coal concession
in Kecamatan Rantau Pandan, Kabupaten Bungo, Provinsi Jambi, Indonesia. Both parties agree to sign a definitive agreement containing
representations, warranties, covenants and indemnities customary for a transaction of this time within 30 days following the date
of the MOU.

MEMORANDUM OF UNDERSTANDING WITH PT CENDRAWASIH INTERNATIONAL

On January 29, 2014 the Company signed a Memorandum
of Understanding (“MOU”) with PT Cendrawasih International, an Indonesian company, to co-develop an 8,100-hectare gold
concession in Kecamatan Kotannopan and Tambangan, Kabupaten Mandailing Natal, Sumatra Utara, Indonesia. Both parties agree to sign
a definitive agreement containing representations, warranties, covenants and indemnities customary for a transaction of this time
within 30 days following the date of the MOU. The MOU also allows the Company the right to assign the responsibilities and benefits
in connection with project to Vietnam Mining Corporation, a Nevada corporation, or another entity.

MEMORANDUM OF UNDERSTANDING WITH CV SINDO MAKMUR COAL
MINING

On January 31, 2014 the Company signed a Memorandum
of Understanding (“MOU”) with CV Sindo Makmur Coal Mining, an Indonesian company, to co-develop and operate various
coal and metal concessions in Indonesia, particularly a 100-hectare coal concession in Dondang Kecamatan Muara Jawa, Kabupaten
Kutai Kartanegara, East Kalimantan, and a 119.60-hectare coal concession in Bukit Pinang Kecamatan Samarinda Ulu, Kota Samarinda,
East Kalimantan, Indonesia. Both parties agree to sign a definitive agreement containing representations, warranties, covenants
and indemnities customary for a transaction of this time within 30 days following the date of the MOU.

FUNDING AGREEMENT REGARDING PETROBRAS BONDS

On February 4, 2014 the Company signed a Funding Agreement
with The Dieterich Group and Robert M. Terry to provide up to $300,000, more likely increasing to $400,000 in funding, on a best
efforts and non-exclusive basis to underwrite the collection efforts being undertaken on a series of 500 bonds originally issued
by Petrobras, a Brazilian corporation focused on oil and gas exploration and development. These bonds are currently owned and controlled
by Starboard Financial, a Nevada LLC. In the most recent valuation report, each of these bonds had a published discounted value
of $750,000 including 7% interest through February 2008 and a possible published redemption face value of $2,300,000. According
to the Funding Agreement, the Company will receive a total recovery of 10 times its investment in funding and 12.5% of the net
proceeds, assuming the entire funding is provided by the Company and/or its investors, from the bond collections after deduction
of trading or selling expenses, and expenses of the Brazilian agents once Starboard Financial and Brazilian parties have received
the first $20,000,000 recovered.

ISSUANCES OF THE COMPANY’S COMMON STOCK:

On April 23, 2012, Asher Enterprises, Inc. converted
$7,000 principal amount of the convertible note dated June 17, 2011 into 8,197 shares of post-split common stock of the Company
at the price of $0.854 per share. As of May 23, 2012, the total outstanding balance amount due Asher Enterprises, Inc. was $3,750.

On April 24, 2012, the Company issued 849 shares of
post-split common stock to Cede & Co. for the Company’s beneficial holder with fractional shares following the reverse
split.

On July 19, 2012, an officer of the Company converted
a total of $307,000 debts owed by the Company into 1,196,424 shares of PHI Group, Inc.’s restricted common stock.

On July 31, 2012, seven creditors of the Company converted
a total of $177,333.33 debts owed by the Company into 504,865 shares of PHI Group, Inc.’s common stock.

On November 19, 2012, the Company reserved 5,673,327
shares of its common stock for the special dividend distribution.

On November 30, 2012, four creditors of the Company
converted a total of $220,079.06 debts owed by the Company into 81,737 shares of PHI Group, Inc.’s common stock.

On January 10, 2013, the Company issued 3,288,443 shares
of PHI Group, Inc.’s common stock valued at $5,250,000 to the majority shareholder of PT Tambang Sekarsa Adadaya as a deposit
towards the total purchase price of the 70% equity interest in PT Tambang Sekarsa Adadaya.

On February 14, 201, a creditor of the Company converted
a total of $100,000 debts owed by the Company into 103,923 shares of PHI Group, Inc.’s common stock.

On February 22, 2013, the Company issued 44,763 shares
of PHI Group, Inc.’s common stock valued at $50,000 to an Indonesian attorney as payment for legal services in connection
with the purchase of PT Tambang Sekarsa Adadaya.

On February 22, 2013, a creditor of the Company converted
a total of $33,633 debts owed by the Company into 44,844 shares of PHI Group, Inc.’s common stock.

On April 11, 2013, a creditor of the Company converted
$50,000 owed by the Company into 76,540 shares of PHI Group, Inc.’s common stock.

On April 26, 2013, three creditors of the Company converted
a total of $180,000 of debts owed by the Company into 304,913 shares of PHI Group, Inc.’s common stock.

On May 10, 2013, the Company issued 25,510 shares of
its restricted common stock for $10,000 cash under Rule 144 for working capital.

On May 10, 2013, the Company issued 75,377 shares of
its restricted common stock for $30,000 cash under Rule 144 for working capital.

On July 1, 2013, three creditors of the Company converted
a total of $117,940 of debts owed by the Company into issued 412,569 shares of PHI Group, Inc.’s common stock.



ITEM 2. 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.

INTRODUCTION

PHI Group, Inc. (formerly Providential
Holdings, Inc.), (the “Company” or "PHI") a Nevada corporation established on June 8, 1982, is primarily
focused on energy and natural resources. The Company is in the process of divesting its interests in real estate and hospitality
development and other non-core business activities from its existing subsidiaries. The Company acquires and consolidates energy-related
assets and other natural resources, partners with international companies to develop independent power plant projects in Southeast
Asia, collaborates with certain U.S. companies to provide renewable energy solutions using wind, solar power and hydro-magnetic
gravitational systems to Asia Pacific markets, and arranges capital for energy-related and mineral projects. No assurances can
be made that the Company will be successful in achieving its plan.

BACKGROUND

PHI Group, Inc. ("PHI"), formerly Providential
Holdings, Inc., was organized under the laws of the State of Nevada on June 8, 1982 under the name of JR Consulting, Inc. Following
the acquisition of Providential Securities, Inc., a California-based brokerage firm, the Company changed its name to Providential
Securities, Inc. (Nevada) on January 12, 2000. Subsequently, the Company changed its corporate name to Providential Holdings, Inc.
on February 9, 2000 and to PHI Group, Inc. on April 13, 2009. Prior to the corporate combination agreement with Providential Securities,
Inc., JR Consulting had an operating subsidiary, Diva Entertainment, Inc., which operated two modeling agencies, one in New York
and one in California. In October 2000, Providential Securities withdrew its securities brokerage membership and ceased its financial
services business. From October 2000 to October 2011, the Company had been 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. Since October 2011, the Company has primarily focused on energy and natural resources, including investing
in coal assets, international trade, power plants, renewable energy, and industrial minerals.



BUSINESS STRATEGY



PHI Group Inc.’s strategy is to:



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



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



3. Design and implement best-of-breed management systems;
and





SUBSIDIARIES:



Since 2001, the Company has formed a number of subsidiaries
to engage in various business activities as described below in this report. The Company is in the process of divesting its holdings
in certain subsidiaries that are not directly related to energy and natural resources in order to focus on its new scope of core
business.



PHI CAPITAL HOLDINGS, INC. (formerly Providential
Capital, Inc.)



In May 2003, the Company formed a wholly owned subsidiary under the name of Providential Capital to provide financial products
and services for the micro-small cap arenas and manage the Company's proprietary merger and acquisition activities. 
Providential Capital has mainly focused its attention on the underserved segment of smaller companies in the U.S. and abroad.
Providential Capital began providing merger and acquisition advisory services to its clients since the fourth quarter of the
fiscal year ended June 30, 2003.  On May 11, 2010, Providential Capital changed its name to PHI Capital Holdings, Inc.
The Company has successfully managed merger plans for several privately held and publicly traded companies in the past and
continued to provide advisory and consulting services to international clients.



PROVIDENTIAL VIETNAM LTD.

Providential Vietnam, Ltd. is a
Vietnamese limited liability company and wholly owned subsidiary of PHI Group, Inc. This subsidiary started operation in May 2008
to provideM&A advisory services, financial and management consulting, corporate restructuring,
and investment banking services to companies in Vietnam.

PHILAND RANCH LIMITED and
PHILAND CORPORATION

In July 2007,
PhiLand Corporation, a Nevada corporation and wholly owned subsidiary of the Company, was formed to engage in real estate development
in Quang Nam Province, Vietnam.  In July 2007, PHI Group, Inc. entered into a principle agreement with the People’s
Committee of Quang Nam Province, which would allow the Company to lease approximately 8,000 acres of land south of Hoi An City,
Quang Nam Province, Vietnam to develop an integrated tourism zone under a 70-year lease term.  In December 2007, PhiLand Corporation
formed a wholly owned subsidiary Philand Vietnam Ltd., a limited liability company registered under the laws of Socialist Republic
of Vietnam to manage the luxury resort and residential community development project in Chu Lai, Nui Thanh District, Quang Nam
Province (“Pointe91”). In April 2007, the Company formed a Singapore-based public company limited by shares under the
laws of the laws of the Republic of Singapore, Philand Ranch Ltd. (Singapore), Company No. 200906217G, ISIN No. SG9999006092, intended
to be the publicly traded holding company for real estate and hospitality development in Vietnam and Southeast Asia. In June 2009,
the Company formed Philand Ranch Limited (UK), a company registered under the laws of England and Wales, Company No. 6923797, ISIN
No. GB00B5461K52, to be the global holding company listed on the Frankfurt Stock Exchange to consolidate all real estate and hospitality
business activities of the Company. In June 2009, Philand Ranch Limited (UK) acquired all the issued and outstanding common stock
of PhiLand Corporation in exchange for 23,849,800 ordinary shares of Philand Ranch Limited (UK) and also exchanged 1,000,000 shares
of its ordinary stock for all the issued and outstanding stock of Philand Ranch Ltd. (Singapore). As a result, Philand Ranch Limited
(UK) has become the parent of Philand Corporation, Philand Vietnam Ltd., and Philand Ranch Ltd (Singapore), now known as PHI Oil
& Gas, Ltd. PHI Group, Inc. received 18,734,753 shares of ordinary stock of Philand Ranch Limited (UK) in exchange for its
holding in Philand Corporation. PhiLand Ranch Limited’s ordinary shares were listed on the Open Market Segment of the Frankfurt
Stock Exchange under the symbol 1P8.F, WKN A0RPEA until the last quarter of 2012.

On August 4, 2011, Philand
Vietnam Ltd. was granted a Land Use Rights (also known as Land Title) for the first 23.55 hectares at Pointe 91 project by the
Vietnamese government. On October 28, 2013, Chu Lai Open Economic Zone Authority agreed to the Company’s request to terminate
this development project due to changed market conditions (Note 22: Subsequent Event).



PROVIMEX, INC. – HP.ITA CORPORATION



Provimex,
Inc. was originally formed on April 10, 2001 under the name "Providential Imex", to focus on trade commerce with Vietnam.
This division changed its name to Provimex on July 5, 2001.  Provimex began to generate revenues from its import and export
activities in August 2002 through the fiscal year ended June 30, 2005 and incorporated as a Nevada corporation on September 23,
2004. The Company distributed a 15% stock dividend of Provimex, Inc. to shareholders of record as of September 15, 2004.OnJune 01, 2011, Provimex, Inc. signed an agreement to acquire the 100% issued and outstanding capital stock of Humex Medical
Group Corp., a California corporation, (“Humex”) in exchange solely for a certain amount of shares of Provimex’s
common stock, par value 0.001, to engage in stem research and therapy in Southeast Asia. After the merger, shareholders of Humex
will own 90% of Provimex Inc. The Provimex shares have not been registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”) and have not been listed on any foreign exchange. The Board of Directors
and the majority shareholders of Humex approved the exchange on June 30, 2011.Prior to the
business combination agreement between Provimex, Inc., and Humex Medical Group Corp., PHI Group, Inc. owned 17,000,000 shares of
common stock of Provimex, Inc. out of 20,000,000 shares issued and outstanding, or equivalent to 85% of Provimex, Inc. Following
the business combination between Provimex, Inc. and Humex Medical Group Corp., PHI Group, Inc. and its shareholders will own ten
percent of all the issued and outstanding shares of Provimex, Inc. PHI Group, Inc. has signed an agreement to assist the combined
company to register with the Securities and Exchange Commission to become a separate fully reporting publicly traded company. As
of the date of this report Provimex, Inc. has not issued the shares to Humex pursuant to the business combination agreement.For
the three and nine months ended March 31, 2012, Provimex, Inc. did not generate any sales. On June 19, 2012, Provimex, Inc. changed
its name to HP.ITA Corporation. On July 20, 2012, HP.ITA Corporation (“HPUS”) signed a Corporate Combination Agreement
to acquire all the issued and outstanding stock of HP.ITA Joint Stock Company, a company organized and existing under the laws
of Vietnam, in exchange solely for such amount of authorized but unissued common stock of HPUS that will have been equal to 95%
of all the issued and outstanding shares of HPUS’s common stock immediately following the issuance of such shares. HPUS intends
to complete the required financial audits and file a Form 10 registration statement with the Securities and Exchange Commission
to become a separate fully reporting publicly traded company in the U.S. (Note 22: Subsequent Event).





TOUCHLINK COMMUNICATIONS, INC.



Touchlink Communications was formed
on July 7, 2003 as a division of the Company to provide point-of-sale (POS) terminals and prepaid calling cards to retailers, convenient
stores and non-profit organizations across the US. Touchlink Communications signed an agreement with KAGRO (Korean American
Grocer Association) to provide pre-paid services to its member stores in the US and Canada.  This subsidiary was later incorporated
as a Nevada corporation in February 2004 under the name of Touchlink Communications, Inc. as a wholly owned subsidiary of the Company
to provide long distance services to residential and business customers in the United States. The Company has declared a 15% stock
dividend of Touchlink Communications, Inc. to shareholders of record as of September 15, 2004 and currently owns 85% of Touchlink
Communications. On November 03, 2008, this subsidiary changed its name to Vietnam Media Group, Inc. and subsequently resumed the
corporate name of Touchlink Communications, Inc. in February 2011. This subsidiary did not have any activities during the quarters
ended March 31, 2012 or 2011.



NON-CONTROLLING INTERESTS:



CATALYST RESOURCE GROUP, INC. (formerly JEANTEX GROUP, INC.)



On May 13, 2005, Providential Capital,
Inc., a wholly-owned subsidiary of the Company, entered into a business consulting agreement with Lexor Holdings, Inc. to provide
merger and acquisition advisory services to Lexor Holdings, Inc. with regard to a proposed merger between Lexor Holdings, Inc.
and SB Chemical Co., Ltd., a Republic of Korea corporation. According to this agreement, the Company would be entitled to an additional
14% equity interest in Lexor Holdings, Inc. following the consummation of a merger between Lexor Holdings, Inc. and SB Chemical
Co, Ltd. or another established business entity.



On June 22, 2005, Lexor Holdings, Inc.
entered into a Stock Purchase Agreement with Jeantex, Inc., a California corporation and Susan Shin, an individual who is the president
and sole shareholder of Jeantex Pursuant to the terms of the Agreement, Lexor acquired 100% of the issued and outstanding equity
interests of Jeantex in exchange for 56,350,000 shares of Lexor restricted common stock.  The Stock Purchase Agreement was
closed on June 29, 2005. PHI Group, Inc. received 7,300,000 shares of restricted common stock of Lexor for services rendered in
connection with this transaction. Lexor Holdings, Inc. has changed its corporate name to Jeantex Group, Inc. following the merger
with Jeantex, Inc.



During the year ended June 30, 2009,
23,285,714 shares of Jeantex Group, Inc. were exchanged with 900,000 shares of PhiLand Corporation which were owned by the Company.
In April 2010, Jeantex Group, Inc. changed its corporate name to Catalyst Resource Group, Inc. and its trading symbol to “CATA”. 
As of March 31, 2012 the Company owned 22,535,714 shares of Catalyst Resource Group, Inc. common stock, or equivalent to 5.21%.



VIETNAM MINING CORPORATION



As a result of a merger between Vietnam-based Linh Thanh
Quang Binh Exploiting and Processing High Calcium Carbonate Powder Joint Stock Company and Vietnam Mining Corporation that was
closed on June 28, 2010, the Company received 1,746,500 shares of common stock of Vietnam Mining Corporation. These shares represent
approximately 5% of ownership in Vietnam Mining Corporation (Note 22: Subsequent Event).

CRITICAL ACCOUNTING POLICIES

The Company’s financial statements and related
public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”).
GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an
impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information
contained in the external disclosures of the Company including information regarding contingencies, risk and financial condition.
We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied.
Valuations based on estimates are reviewed by us for reasonableness and conservatism on a consistent basis throughout the Company.
Primary areas where financial information of the Company is subject to the use of estimates, assumptions and the application of
judgment include acquisitions, valuation of long-lived and intangible assets, recoverability of deferred tax and the valuation
of shares issued for services. We base our estimates on historical experience and on various other assumptions that we believe
to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions
or conditions.

Valuation of Long-Lived and Intangible Assets

The recoverability of long-lived assets requires considerable
judgment and is evaluated on an annual basis or more frequently if events or circumstances indicate that the assets may be impaired.
As it relates to definite life intangible assets, we apply the impairment rules as required by SFAS No. 121, “Accounting
for the Impairment of Long-Lived Assets and Assets to Be Disposed Of” as amended by SFAS No. 144, which also requires significant
judgment and assumptions related to the expected future cash flows attributable to the intangible asset. The impact of modifying
any of these assumptions can have a significant impact on the estimate of fair value and, thus, the recoverability of the asset.

Income Taxes

We recognize deferred tax assets and liabilities based
on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review
our deferred tax assets for recoverability and establish a valuation allowance based upon historical losses, projected future taxable
income and the expected timing of the reversals of existing temporary differences. As of March 31, 2012, we estimated the allowance
on net deferred tax assets to be one hundred percent of the net deferred tax assets.

RESULTS OF OPERATIONS

The following is a discussion and analysis of our
results of operations for the three-month and nine-month periods ended March 31, 2012 and 2011, our financial condition at March
31, 2012 and factors that we believe could affect our future financial condition and results of operations. Historical results
may not be indicative of future performance.

This discussion and analysis should be read in conjunction
with our consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q. Our consolidated financial
statements are prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”).
All references to dollar amounts in this section are in United States dollars.

Three months ended March 31, 2012 compared to
the three months ended March 31, 2011

Total Revenues:

Total revenues were $ 180,000 and $ 6,000 for the
three months ended March 31, 2012, and 2011, respectively from management services. The increase of
revenues for the three months ended March 31, 2012 was due to the increase consulting services during this period compared to the
previous year.

Operating Costs and Expenses:

Total operating expenses were $122,167 and $179,590
for the three months ended March 31, 2012, and 2011, respectively. The decrease is primarily due to the decrease in professional
expenses. Professional services were $8,275 and $16,180 for the comparable periods. General and administrative expenses were $49,226
and $88,299 for the comparable periods. The decrease in general and administrative expenses between the two comparable periods
was due to a decrease in expenditures associated with travel and investor relations. During the current three months, the Company
recorded salaries and wages of $64,353 as compared to $74,394 in the three months of the previous fiscal year. The decrease in
salaries and wages for the quarter ended March 31, 2012 was due to the reduction of staff during this period compared to that of
the comparable previous period.

Other Income and Expenses:

Total other expense was $170,184 for the three months
ended March 31, 2012 compared to $ 138,443 for the three months ended March 31, 2011. The increase in other expense was due to
the increase in interest expense, and decrease in other income.

Interest expense was $142,493 and $158,921 for the three
months ended March 31, 2012, and 2011, respectively.

Net Income and Loss:

Net loss for the three months ended March 31, 2012
was $134,218 as compared to net loss $284,281 for the same period in 2011, which is equivalent to ($0.84) per share for the current
period and ($2.10) per share for the same period in 2011, both based on the weighted average number of basic and diluted shares
outstanding after adjusting for the 1 for 1,500 reverse split effected on March 15, 2012.

The decrease net loss between the two comparable periods
is primarily due to an increase in revenue, a decrease in professional expenses of $7,905 in the three-month period ended March
31, 2012 compared to those of the same period in 2011, a decrease in total operating expenses of $57,423 in the three-month period
ended March 31, 2012 compared to those of the same period in 2011, and net other expenses of $72 in the three-month period ended
March 31, 2012 compared to net other income of $34,494 in the three-month period ended March 31, 2011.

Nine months ended March 31, 2012 compared to
the nine months ended March 31, 2011

Total Revenues:

Total revenues were $570,000 and $359,317 for the
nine months ended March 31, 2012, and 2011, respectively from consulting and management services. The
increase of revenues for the nine months ended March 31, 2012 was due to the increase consulting services during this period compared
to the previous year.

Operating Costs and Expenses:

Total operating expenses were $445,635 and $740,419
for the nine months ended March 31, 2012, and 2011, respectively. The decrease is primarily due to the decrease in professional
expenses. Professional services were $43,265 and $258,915 for the comparable periods. General and administrative expenses were
$198,281 and $253,364 for the comparable periods. The decrease in general and administrative expenses between the two comparable
periods was due to a decrease in expenditures associated with travel, business development and investor relations. During the current
nine months, the Company recorded salaries and wages of $203,147 as compared to $225,915 in the nine months of the previous fiscal
year. The decrease in salaries and wages for the nine months ended March 31, 2012 was due to the reduction of staff during this
period compared to that of the comparable previous period.

Other Income and Expenses:

Total other expense was $468,262 for the nine months
ended March 31, 2012 compared to $391,319 for the nine months ended March 2011. The increase in other expense was primarily due
to the increase in loss on sale of marketable securities, the increase in change in derivative liability, and the decrease in other
income.

Interest expense was $413,325 and $420,360 for the nine
months ended March 31, 2012, and 2011, respectively.

Net Income and Loss:

Net loss for the nine months ended March 31, 2012
was $324,282 as compared to net loss $658,047 for the same period in 2011, which is equivalent to ($2.15) per share for the current
period and ($4.93) per share for the same period in 2011, both based on the weighted average number of basic and diluted shares
outstanding after adjusting for the 1 for 1,500 reverse split effected on March 15, 2012.

The decrease net loss between the two comparable
periods is primarily due to an increase in revenue, a decrease in professional expenses of $215,650 in the nine-month period ended
March 31, 2012 compared to the those of the same period in 2011, a decrease in total operating expenses of $294,784 in the nine-month
period ended March 31, 2012 compared to the same period in 2011, offset by an increase in other expenses of $76,943 in the nine-month
period ended March 31, 2012 compared to those in the nine-month period ended March 31, 2011.

LIQUIDITY AND CAPITAL RESOURCES

The Company had consolidated cash of $3,600 and $28,908
as of March 31, 2012 and 2011, respectively.

The Company's operating activities provided $134,435
and used $ 385,777 in the nine months ended March 31, 2012 and 2011, respectively.

Cash used in investing activities was $155,200 for
the nine months ended March 31, 2012 as compared to cash used in investing of $317,658 for the same period in 2011, respectively.

Cash used by financing activities was $36,906 for
the nine months ended March 31, 2012, as compared to cash provided by financing activities of $657,044 for the nine months ended
March 31, 2011. The increase in cash used by financing activities is mainly, due to an increase on payments on notes payable between
the nine-month periods ended March 31, 2012 and 2011, respectively.

The Company’s operations are currently financed
through income from consulting and advisory services, various loans and sale of marketable securities. Management has taken action
to strengthen the Company's working capital position and generate sufficient cash to meet its operating needs. In addition, the
Company also anticipates generating revenues through energy-related and natural resource activities as well as merger and acquisition
advisory business. No assurances can be made that management will be successful in achieving its plan or that additional capital
will be available on a timely basis or at acceptable terms.

COMPANY'S PLAN OF OPERATION FOR NEXT 12 MONTHS

For the next twelve months, the Company
intends to primarily focus on energy and natural resources, including acquisitions of coal assets in
Indonesia, coal production through joint operations, international trade involving coal, oil, precious metals, and other industrial
commodities, developing independent power plant projects in Vietnam in conjunction with local and international partners, and providing
renewable energy solutions in forms of wind turbines, solar power and hydro-magnetic gravitational systems.There is no
guaranty that the Company will be successful in any of its plans.



FINANCIAL PLANS

Management has taken action and is formulating additional
plans to provide for the Company's working capital to meet its operating needs through December 31, 2012 and beyond. Among the
actions to be taken, the Company intends to raise additional capital from the US and international markets and is currently in
the process of attaining additional financing. In addition, the Company also anticipates generating more revenue through its energy-related
activities and international trade. No assurances can be made that management will be successful in achieving its financial plans.

ITEM 3. 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 operations are conducted in Vietnam using
Vietnamese Dong, which is the official currency of Vietnam. The effect of the fluctuations of exchange rates is considered minimal
to our business operations.

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 majority of our income is paid with the marketable
securities, the value of our assets may fluctuate significantly depending on the market value of the securities we hold.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure and Procedures

As of March 31, 2012, the end of the period covered
by this report, the Company’s Chief Executive Officer and Chief Financial Officer reviewed and evaluated the effectiveness
of the Company’s disclosure controls and procedures, as defined in Exchange Act Rule 13a-15(e) and 15d-15(e). As of the end
of the period covered by this report, based on that evaluation, the Company’s Chief Executive Officer and Chief Financial
Officer concluded that the disclosure controls and procedures were effective in ensuring that material information that the Company
must disclose in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, the “Exchange
Act”, is recorded, processed, summarized, and reported on a timely basis, and that information required to be disclosed by
the Company in reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s chief
executive officer and chief financial officer as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Controls

There
was no change in our internal control over financial reporting that occurred during this fiscal quarter that has materially affected,
or is reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control over
Financial Reporting

Our management is responsible for
establishing and maintaining adequate internal control over financial reporting at PHI Group. Internal control over financial reporting
is a process designed by or under the supervision of our chief executive officer/acting chief financial officer and effected by
our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of our financial statements for external reporting purposes in accordance with GAAP. A company's
internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records
that accurately and fairly reflect, in reasonable detail, transactions and dispositions of our assets, (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and
that receipts and expenditures are being made only in accordance with authorizations of our management and board of directors,
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of our assets that could have a material effect on our financial statements.

Our management assessed the effectiveness
of PHI Group's internal control over financial reporting as of September 30, 2011. In making this assessment, our management used
the criteria established in the Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission ("COSO").

In connection with the evaluation
of our disclosure controls and procedures, our management team attempted to identify any "material weakness" in our internal
control environment. We defined "material weakness" as a deficiency, or combination of deficiencies, in internal control
over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial
statements will not be prevented or detected on a timely basis. We defined "significant deficiency" as a deficiency,
or combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet
important enough to merit attention by those responsible for oversight of our financial reporting.

We identified on a preliminary
basis the following material weaknesses in internal control over financial reporting:

• Ineffective control
over the financial statements closing process;

•
Insufficient personnel with an appropriate level of accounting knowledge, experience with the Company and/or industry, and training
in the application of GAAP;

• Lack of segregation
of duties; and

• Inadequate monitoring
of non-routine and non-systematic transactions.

PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Other than as set forth below, Company is 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.
The majority of the legal proceedings and arbitration cases are related to the discontinued operations of Providential Securities,
Inc. since 2000.

LEGAL PROCEEDING SETTLED AND UNPAID AS OF MARCH
31, 2012:

QUANG VAN CAO AND NHAN THI NGUYEN CAO VS. PROVIDENTIAL
SECURITIES, INC. ET AL.

This case was originally submitted to Orange County
Superior Court, CA on June 25, 1997, Case No. 781121, and subsequently moved to NASD Dispute resolution for arbitration. On or
about August 24, 2000, the Company's legal counsel negotiated with the Claimant's counsel and unilaterally reached a settlement
that had not been approved by the Company. While the Company was in the process of re-negotiating the terms of said settlement,
the Claimants filed a request for arbitration hearing before the National Association of Securities Dealers on October 4, 2000,
Case No. 99-03160. Thereafter, the Claimants filed a complaint with the Orange County Superior Court, CA on October 31, 2000, Case
No. 00CC13067 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 whereby the Company would pay the Claimants a total of $62,500 plus $4,500 in administrative costs. As the date
of this report, the Company has paid $2,500 and is subject to an entry of judgment for $79,000. In May 2011, the Claimants filed
an application for and renewal of judgment for a total of $140,490.78. This amount has been accrued in the accompanying consolidated
financial statements as of March 31, 2011.

PENDING LEGAL PROCEEDING AS OF MARCH 31, 2012

DAVIDSON VS. DOAN ET AL.

On or about February 01, 2010, the company
was notified of a suit 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, an individual against Martin Doan, Henry Fahman, HRCiti Corporation, and Providential Capital, Inc.
(collectively referred to as “Defendants” - Case No. BC 426831). Plaintiff demanded an amount of not less than $140,000.00
from Defendants for promissory notes outstanding between Plaintiff and the company. The Company has accrued the potential liabilities
associated with these promissory notes in the accompanying consolidated financial statements as of March 31, 2012. This case was
settled on July 09, 2012. (Note 22: Subsequent Event).



ITEM 1A. 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.

Our businesses are currently focused in Southeast
Asia, particularly Indonesia and Vietnam, and 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.

Our operations are currently concentrated in Indonesia
and Vietnam. Because of this concentration 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 Indonesia and/or Vietnam 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 coal business

As part of our core business involves
acquisitions of coal assets, production of coal, and coal trading, our profitability will depend upon the prices we receive for
our coal. Coal prices are dependent upon factors beyond our control, including: the strength of the global economy; the demand
for electricity; the demand for steel, which may lead to price fluctuations in the periodic repricing of our metallurgical coal
contracts; the global supply of thermal and metallurgical coal; 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.

Our
executive officers/directors and principal stockholders who hold 5% or more of the outstanding common stock owned as of May 29,
2013, in the aggregate, approximately 40% of our outstanding common stock. In addition, our Board of Directors is able to decide
the rights and terms associated with the Company’s 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.



In addition, 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.

The price at which investors purchase shares of our
common stock may not be indicative of the price that will prevail in the trading market. 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, the American Stock Exchange 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,
if 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.

ITEM
2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None, except as may be noted elsewhere in this report.

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

None, except as may be noted elsewhere in this report.

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS

None

ITEM 5 OTHER INFORMATION
None, except as may be noted elsewhere in this report.ITEM 6. EXHIBITS
The following exhibits are filed as part of this report:

Exhibit No. Description

| | 21.1 | Subsidiaries of registrant                                                                                           
| | ---- | ---------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                      
| | 31.1 | Certification by Henry D. Fahman, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

| | 31.2 | Certification by Henry D. Fahman, Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
| | ---- | ---------------------------------------------------------------------------------------------------------------

| | 32.1 | Certification by Henry D. Fahman, Chief Executive Officer of the Registrant, pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------

| | 32.2 | Certification by Henry D. Fahman, Chief Executive Officer of the Registrant, pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------









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.

Date: February 12, 2014By: /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 |  |                                                   |  |                  
|HENRY D. FAHMAN     |  | Chairman/President/Acting Chief Financial Officer |  | February 12, 2014
|                    |  |                                                   |  |                  
|/s/ Tina T. Phan    |  |                                                   |  | February 12, 2014
|TINA T. PHAN        |  | Treasurer                                         |  |                  
|                    |  |                                                   |  |                  
|/s/ Tam T. Bui      |  |                                                   |  | February 12, 2014
|TAM T. BUI          |  | Director                                          |  |                  
|                    |  |                                                   |  |                  
|/s/Frank Hawkins    |  |                                                   |  | February 12, 2014
|FRANK HAWKINS       |  | Director                                          |  |                  































Exhibit No. 21.1



SUBSIDIARIES
OF REGISTRANT

As of March 31, 2012

1)	PHI Capital Holdings, Inc.

Percentage of ownership: 100%

Business activity: Consulting and M&A
advisory services, to be reorganized.



2)	Providential Vietnam, Ltd.

Percentage of ownership: 100%

Business activity: Consulting services,
to be reorganized.



3)	Philand Ranch Limited – UK

Percentage of ownership: 58.28%

Business activity: real estate development,
to be reorganized.



4)	PHI Gold Corp. (formerly PHI Mining Group, Inc.)

Percentage of ownership: 82.71%

Business activity: Gold mining, to be
reorganized.



5)	Provimex, Inc.

Percentage of ownership: 85%.

Business activity: inactive, to be combined with
HP.ITA JSC.



6)	PHI Energy Corporation (formerly Providential Energy
Corporation)

Percentage of ownership: 100%

Business activity: inactive, to be reorganized.



7)	Touchlink Communications, Inc.

Percentage of ownership: 85%

Business activity: inactive, to be reorganized.



































Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE
OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Henry D. Fahman, Principal Executive Officer
of PHI Group, Inc. certify that:

1. I have reviewed this quarterly report on Form
10-Q of PHI Group, Inc.;

2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by
this report;

3. Based on my knowledge,
the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The small business issuer's
other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the small business issuer and have:

a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the period in which this report is being prepared;

b)
evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and

c)
disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during
the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control
over financial reporting; and

5. The small business issuer's
other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
to the small business issuer's auditors and the audit committee of small business issuer's board of directors (or persons performing
the equivalent functions):

a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial
information; and

b) any fraud, whether
or not material, that involves management or other employees who have a significant role in the small business issuer's internal
control over financial reporting.

Dated: February 12, 2014



By:    /s/ Henry D. Fahman

Henry D. Fahman

Chief Executive Officer











Exhibit 31.2



CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Henry D. Fahman,Principal
Financial Officer of PHI Group,Inc. certify that:

1.   I have reviewed this quarterly report on
Form 10-Q of PHI Group, Inc.;

2.
  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the year covered by this report;

3.
  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the years
presented in this report;

4.
  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the year in which this report is being prepared;

(b)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the year covered by this report based on such
evaluation; and

(c)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

5.
  The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors;

(a)
All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
and

(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal controls over financial reporting.

Dated: February 12, 2014



By:    /s/ Henry D. Fahman

Henry D. Fahman

Acting Chief Financial Officer









Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTIONS 1350 AS
ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACTS OF 2002

In connection with the Quarterly
Report of PHI Group, Inc. (the "Company") on Form 10-Q for the quarter ending March 31, 2012, as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), Henry D. Fahman, Chief Executive Officer of the Company, certifies
to the best of his knowledge, pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1.
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.

Dated: February 12, 2014



By:    /s/ Henry D. Fahman

Henry D. Fahman

Chief Executive Officer











Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTIONS 1350 AS
ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACTS OF 2002

In connection with the Quarterly
Report of PHI Group, Inc. (the "Company") on Form 10-Q for the quarter ending March 31, 2012, as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), Henry D. Fahman, Acting Chief Financial Officer of the Company,
certifies to the best of his knowledge, pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1.
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.

Dated: February 12, 2014



By:    /s/ Henry D. Fahman

Henry D. Fahman

Acting Chief Financial Officer