Greetings. Welcome, ladies and gentlemen, thank you very much for taking your time to join us. And todays conference call. I'm sorry It was a short notice, but I thought it would be important for us to have this call because of a number of reasons. You know, all of you are aware of the tensions that are going on between Russia and Ukraine and the US just announced the first wave of sanctions.
And, you know, the escalation of forces on the ground. And also the uncertainty that is caused by this conflict can be kind of affect all of us in different ways and today, the S&P 500 enters the correction territory and you know a lot of other Indexes also took a beating from the SP 500, Dow Jones and the Nasdaq and Russell 2000, including our stock as well.
And I believe I think this is important time for us to be aware of what's going on with the company and have a good understanding because the three factors that affect a lot of us who are in market, those of you who already know the greed factor and then hope and fear. But you know the worst of it is fear. We fear when we do not have correct, accurate information we can make wrong decisions. Sometimes things that can come back to hurt us or we may regret for a long time.
And you know the tensions between Russia and Ukraine, will also cause the energy price to rise, to escalate and that will make the job of the Fed more difficult to tame inflation, which has gone up so much compared to many many decades ago. But you know, tensions will also go away. Major events in history have come and go, so we need to look at the big picture and take a long term view and don’t get panicked.
You know, sometimes on small things and sometimes in our stock you know, today is down and a lot off you, some of you have shown the kind of fear and anxiety and some have expressed some very – I wouldn’t say depressing, but you know very concerning sentiments. So let me turn off my phone. I don't want it to interfere with our call here.
To The Point
So that being said, you know, I don't want to belabor myself or spend too much time on the safe harbor statement, which is all too familiar with us. You know, it's part of the routine in every presentation of public companies because things in the future may not be as exactly as what we planned to see happen, and because of factors that are beyond our control, you know, known and unknown risks and uncertainty and so forth, so.
That being said, you know I will not spend too much time on it today I want to do a recap on the last quarter earnings the quarter ended December 31st, 2021 and also bring you up to date on some of the recent progress so that you know that we have a bright future. It's just not the now and what already happened and some of you say, “oh. We didn't generate any revenue.”
Yeah, we admitted that we didn't but in the last quarter and even before that, we have devoted a lot of our energy and effort on a number of things. Of course, you know, building the Asia Diamond Exchange is our biggest undertaking among the other things. But then the last quarter, we also started working on the KOTA transaction and then launching CO2-1-0 Carbon mitigation program and also the Five Grain acquisition. For the last quarter, we didn't generate any new revenues.
Actually the $5000 in the book, it was from a contract consulting agreement we have had and they still owe us some money on that. It's not all, but we, you know, we only collected that much during the last quarter and our focus well mainly was on the acquisition of Five Grains Spirit Company and KOTA companies as well as the launching of the CO2-1-0 Carbon Corp you know as we mentioned the filing and also all of you are aware and now on the expansion side, you know we recorded a very big increase in expenses actually they total operating expenses were $9.9 million compared to only like over like over $109,000 for the three months ended 2020 December 31st.
The big increase in total operating expenses between the two periods was mainly due to an increase of about $9.8 million in professional services in connection with the development of the blockchain and crypto technology development project.
And you know, we didn't pay with cash, so it was from our shares. But Even so you know we recorded you know it as it has to be it's an accounting expense even though you know we didn't spend hard cash or greenbacks on it.
And so the last from operation from the quarter ended December 31st, 2021 was about $9.9 million and the total net loss including the administrative and salaries and general expenses, you know, total was about 10 and a half million dollars and again you know the bulk of it you know more than the 90% of it which mainly due to the professional services that we pay for in connection with the development of the crypto and blockchain technology programs and those, you know, will benefit us in the long term.
It's just not one or two quarters, you know, so please keep that in mind and you say cash [outlay?] and cash that we have put out, but it will come back to benefit us. And of course you know we can always offset future income, you know, with the accumulated deficit. So it's not something waste, it is not. Please keep that in mind and why, you know, we didn't record the kind of revenue we would we'd wished to have and part of it, you know, the vinafilms as all of you have known.
We have a contractual agreement with vinafilms, but so far because of COVID situation, we cannot get the audit done. And now in Vietnam actually just the 15 of this month you know now travel commercial flights are open again you know so we can arrange for our auditor to come back and finish the audits for vinafilms in the very near future too. Yeah, we just had a talk with some of them just this morning about the audit. Also about audit of KOTA companies as well.
So that's still on our books and we will try to complete that as soon as possible. And of course many of you very eager or anxious whichever way we want to say regarding the buyback of shares, honestly at this juncture right now we are not buying back shares right at this moment. We have said in the language and in the announcement and the filing with the SEC as well that we have extended the buy back until the end of this quarter. But between now and then you know there is some priorities we need to pay attention to, especially the closing of the KOTA companies acquisition. The one for Five Grain you know we need to make a payment. That can be negotiated, because we still have until September to do the final closing.
I will share with you a little bit on how we can capitalize on the situation and make it beneficial for our company. So whatever you see on the filing today, you know is not representative of what's going to happen in the next three or six months because between now and then there'll be a lot of changes for the better. As we say 'cause with the closing of one or two acquisition, we be able to consolidate the numbers financial result from those target companies into PHI Group and that would change the picture very dramatically, yeah.
And. Going forward, you know I want to share with you a number of progress that we have made during the last quarter and even up to date. You know under KOTA transaction, even though we have not closed transaction yet, we have been able to arrange a bridge financing for KOTA to go ahead and wrap up the new revenue growth initiative and shareholder of the Company of our company through our contact, you know, stepped up and provided that the financing for KOTA to be able to capture the opportunity and ramp up their production their contract.
And the marketing and also operation requirements in order to meet the growth target. It sounds very, very bold very audacious yet very high goal. But yeah, KOTA Management and we believe you know we're able to accomplish those milestones. So that's them. And more recently we've been able to work with a US lender that has agreed to provide 80% of the financing for the acquisition of the KOTA Companies both KOTA construction and KOTA Energy Group.
We are currently working on the other 20% so that we have the complete package for the closing of this transaction. You know of course we have lender here in the US and also lenders from abroad that we have submitted or disclosed to the SEC through our 8K filings and so forth. We've been working with them very closely. There have been some very good progress. It's not done yet, but among the ones who have signed up with we believe you know, we'll be able to close some of them, if not all of them. So it's still in the work. It's not done yet, but you know it's not something we have given up or anything.
We will only announce and share with our shareholders and the public when it's already clear and firm. So please keep that in mind. You know we are not done with those yet. And then on the Five Grain acquisition front, we have made some very, very interesting progress as well. As far as the financing for this acquisition, we have worked, been working on a number of avenues. And whichever that comes first and more appropriate or suitable, we will choose that one to complete the transaction.
There are a couple of investors in Asia that have shown interest in participating. So that is very promising as well. And I will need to meet with them in person very soon to workout the details, but in principle you know they have agreed to doing certain things that we help expedite the close enough transaction.
And on the Empire Spirit side, the good thing is we have already been able to get the commitment of a number of growers in Vietnam that will be willing to grow sorghum for us in order to supply to Five Grain, but also to provide to Empire Spirit as well because we have already designed and will be launching an off brand of empire spirit to hit the market sooner than later because initially we were planning to wait until the closing of the transaction before we do that.
But now we have rethought the strategy and want to launch our own brand, even before the closing of the five grain acquisition. So those are very, very positive progress, especially growing Sorghum in Vietnam for example, you know it shows a number of benefits. Number one, of course. You know we can use the grain for our baijiu for our liquor stealing, but the same time, you know the sorghum stock and so forth can be used to make pellet, you know for energy and then to generate energy as well. So its one stone, two, two or three birds.
You know, it's a good thing. Before in Asia, mainly they were thinking of growing grain, I mean sorghum. There are number of companies that have set out to grow sorghum just mainly for energy purposes. And on the CO2-1-0 Corp corporation, the Carbon Mitigation program we have that Choky is running. We are now in the pancake swap period but the company has already taken steps to go ahead and list the token on an exchange in the very near future and also alongside, you know, we also have a marketing program to broadcast to propagate, I mean to share our information with the general public on a wider, wider scale. So to let people know.
So we believe in the next few months we'll see very good progress with the CO2-1-0 Carbon Corp program and the good thing is we have been able to get a number of project owners from hydro power producers in Indonesia through solar energy companies in Vietnam and here in the US also in Canada. And also we have also reached out to Latin America to South America, yeah. So we'll be working very hard and very aggressively to expand our bandwidth and our coverage so that there will be more and more people being able to come and join our program. So that's having very good progress and we believe it will, it will get better and better.
And the fun side. Yeah, we we have a minor change with the domicile, I mean the address of the fund will be moving them to a new location. And you know I will have to go back to Luxembourg to find a place for the long term office together with our fund and all our subfunds and also other operation that would be a conduit between the Luxembourg and Asia as well. So for the time being.
We have make that that change and we'll move forward with the launching of the fund toward the end of this quarter and early next quarter. Well, the good news is, besides the private investors that we have known on a personal basis who have shown interest in commitments invest into the fund, we actually have not really done any broad scale, I mean, marketing for the fund yet, but recently we have signed up with the trade commission of the US Department of Commerce and together with the US Embassy in the UAE, in Switzerland, and the UK, and so forth so toward the end of March and we'll be meeting with a number of major investors in Dubai and in Abu Dhabi through the setup and arrangement of the US Department of Commerce and US Embassy in UAE and then around the middle of April will be also meeting with some major investors introduced by US Embassy in Switzerland.
So alongside with our private network, you know we have also been able to obtain the support of the US government in connection with a number of major investors in a number of countries, and then we will go to Hong Kong to Singapore, Japan, and Mexico between now and the end of the year. So we believe overtime, our funds will be better and better recognized and we'll be able to provide a point of interest for other groups to participate, and you know the neat thing we have and sometimes you know, I don't like to be like a broken record every time talking about the Asia Diamond exchange.
But it's the biggest thing we are doing because right now no other companies doing it and we are the only company that has this tremendous opportunity and we have made a lot of progress in spite of the adverse effects of COVID-19. But our partner in Europe, I want to use the term partners because you have a number of few core partners in this that have driven the process, that have gathered the interest, that have kept the momentum, that have been able to recruit people from around the world to join us and you know we our group has set up the International Diamond Bank in Botswana that will be a conduit for investment into the diamond exchange also to support [diamondteers?] operation.
You know, at the ADE and beyond as well. And, you know the Kimberley Process certification has been approved. I need to go back to Vietnam, maybe next week or the following week to work with the central and provincial government to get ready for the international press conference and also to prepare for licensing and to start the construction process.
As times go by, we get more and more people that become aware of our initiative. Just this past week, there's a group of Italian investors who have operations in other parts of Asia and they want to come and join us to be part of the multiple Commodities Center to set up their manufacturing there with us and we're talking about big, big groups with hundreds of millions of dollars.
It's not just one small shop, you know, and things like that the momentum has been built and has been getting better and better and better every day. And sometimes you know, of course, you know, our shareholders, I don't blame you, because of course we want to see stock appreciation. You know, sometimes if you wake up in the day and see they stock going down, you know, it's not a good feeling at all.
And you know, I myself as a shareholder in the company, you know. None of us, management have sold one single share. We have not sold any share. We will continue to accumulate, you know and buy more share in the company. We're not selling because you know we know this will be a create outcome and through all of this. So you know when you see other company, people are selling and don't say, oh, Henry is doing the same thing? No, I am not. I have not.
And I will not be selling shares in anytime soon. And every time of course I or anybody management of the company if we sell any stock you know we have to disclose with the SEC you will see right away. In the next day or two and then we cannot hide. So please and don't let the bother you at all. No I'm totally committed to the company, to our shareholders. You know, my stake is in the company. I'm not doing it just for myself, but for everybody as well.
So please take the longview and as I mentioned before, you know if this is not the appropriate stock for you, you know I don't want you to [leverage] your house and put money into the company. You have to plan accordingly you know that you can handle the fluctuation in the marketplace and also you know you have enough of a [??torrent of free step??], there would be suitable for you.
So please be careful but personally I say you know I'm totally committed and I have full faith in what we are doing and of course you know with the grace of God we believe that. We will get to where we are, we will and it will be a good thing for everyone. So I wanted to take a short amount of your time today just to bring you up to date to share with you, because this is the time of uncertainty and a lot of people can be affected by fear and you know, make the wrong decision.
So please keep that in mind and know that I'm totally committed to move forward and devote my time and energy to finish the task before us. Of course, we have multiple things going, but the biggest thing for us is still the Asia diamond exchange, which we believe will we change the fortune not of our company alone, but you know, even for the country of Vietnam and many, many people that are connected with this project throughout the world as well. Alright, thank you very much, ladies and gentlemen, and have a good evening.
Market Data 
Markets 
AI
