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<TITLE>Form 8-K</TITLE>
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<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:18pt"><B>UNITED STATES</B></FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:18pt"><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>WASHINGTON, D.C. 20549</B></FONT></P>
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<P align=center style="font:12pt Times New Roman;margin:0">&nbsp;</P>
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<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:18pt"><B>FORM&#160;8-K</B></FONT></P>
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<P align=center style="font:12pt Times New Roman;margin:0"><B>CURRENT REPORT</B></P>
<P align=center style="font:12pt Times New Roman;margin:0"><B>PURSUANT TO SECTION&#160;13 OR 15(d)&#160;OF THE</B></P>
<P align=center style="font:12pt Times New Roman;margin:0"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>
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<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Date of report (Date of earliest event reported): <B>November 25, 2014</B></FONT></P>
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<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:18pt"><B>PERNIX GROUP,&#160;INC.</B></FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Exact Name of Registrant as Specified in Charter)</FONT></P>
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<TABLE align='center' style="border-collapse:collapse;width:100%"><TR><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>Delaware</B></FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt"><B>&#160;</B></FONT></P></TD><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>333-92445</B></FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt"><B>&#160;</B></FONT></P></TD><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>36-4025775</B></FONT></P></TD></TR>
<TR><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(State or Other Jurisdiction</FONT></P><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">of Incorporation)</FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Commission File Number)</FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:32%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(I.R.S. Employer</FONT></P><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Identification No.)</FONT></P></TD></TR>
</TABLE><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<TABLE align='center' style="border-collapse:collapse;width:100%"><TR><TD valign='top' style="width:49%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>151 E. 22nd&#160;Street</B></FONT></P><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>Lombard,&#160;Il.</B></FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt"><B>&#160;</B></FONT></P></TD><TD valign='bottom' style="width:49%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>60148</B></FONT></P></TD></TR>
<TR><TD valign='top' style="width:49%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Address of Principal Executive Offices)</FONT></P></TD><TD valign='bottom' style="width:2%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:49%"><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Zip Code)</FONT></P></TD></TR>
</TABLE><P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt"><B>(630) 620-4787</B></FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Registrant&#8217;s telephone number, including area code)</FONT></P>
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<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">(Former Name or Former Address, if Changed Since Last Report)</FONT></P>
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<P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Check the appropriate box below if the Form&#160;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below):</FONT></P>
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<P style="font:12pt Times New Roman;margin:0"><FONT style="font:10pt Wingdings">&#111;</FONT><FONT style="font-size:10pt">&#160;&#160;&#160; Written communications pursuant to Rule&#160;425 under the Securities Act (17 CFR 230.425)</FONT></P>
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<P style="font:12pt Times New Roman;margin:0"><FONT style="font:10pt Wingdings">&#111;</FONT><FONT style="font-size:10pt">&#160;&#160;&#160; Soliciting material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
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<P style="font:12pt Times New Roman;margin:0"><FONT style="font:10pt Wingdings">&#111;</FONT><FONT style="font-size:10pt">&#160;&#160;&#160; Pre-commencement communications pursuant to Rule&#160;14d-2(b)&#160;under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
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<P style="font:12pt Times New Roman;margin:0"><FONT style="font:10pt Wingdings">&#111;</FONT><FONT style="font-size:10pt">&#160;&#160;&#160; Pre-commencement communications pursuant to Rule&#160;13e-4(c)&#160;under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
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<P style="font:13.5pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt;color:#000000"><FONT style="font-size:10pt"><B>Item 2.01. Completion of Acquisition or Disposition of Assets.</B></FONT></P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000">&nbsp;</P>
<P style="font:10pt Times New Roman;margin:0">On November 25, 2014, Pernix Group, Inc. (&#8220;Pernix&#8221;) completed a sale of a 25% ownership interest in Pernix (Fiji) Limited (&#8220;PFL&#8221;), which was a wholly-owned subsidiary of Pernix prior to the sale and is located in Fiji. Pernix sold the 25% ownership interest in PFL to Fijian Holdings Limited, an unrelated third party, for cash proceeds of approximately FJD 4.35 million (or approximately $2.3 million USD as of November 25, 2014). &nbsp;</P>
<P style="font:10pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:13.5pt">&#160;</FONT></P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt">Pro forma financial information with respect to the sale is provided in Item 9.01 of this Current Report on Form 8-K.</FONT></P>
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<P align=justify style="font:10pt Times New Roman;margin:0"><B>Item 8.01. Other Event</B></P>
<P style="font:10pt Times New Roman;margin:0">&nbsp;</P>
<P style="font:10pt Times New Roman;margin:0">On December 2, 2014, the Company issued a Press Release included here as Exhibit 99.1. The press release shall not be deemed &quot;filed&quot; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.</P>
<P style="font:13.5pt Times New Roman;margin:0;text-indent:-54pt;margin-left:54pt;color:#000000">&#160;</P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt"><B>Item 9.01. Financial Statements and Exhibits.</B></FONT></P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000">&#160;</P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt">(b) Pro Forma Financial Information.</FONT></P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000">&#160;</P>
<P align=center style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt"><B>PERNIX GROUP, INC. AND SUBSIDIARIES</B></FONT></P>
<P align=center style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt"><B>UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION</B></FONT></P>
<P align=center style="font:13.5pt Times New Roman;margin:0;color:#000000">&#160;</P>
<P style="font:10pt Times New Roman;margin:0">On November 25, 2014, Pernix Group, Inc. (&#8220;Pernix&#8221;) completed a sale of a 25% ownership interest in Pernix (Fiji) Limited (&#8220;PFL&#8221;), which was a wholly-owned subsidiary of Pernix prior to the sale and is located in Fiji. Pernix sold the 25% ownership interest in PFL to Fijian Holdings Limited, an unrelated third party, for cash proceeds of approximately FJD 4.35 million (or approximately $2.3 million USD as of November 25, 2014). &nbsp;</P>
<P style="font:10pt Times New Roman;margin:0;color:#000000">&nbsp;</P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt">The following unaudited consolidated pro forma financial information of Pernix Group, Inc. and its consolidated subsidiaries is based upon the historical balance sheet and statements of operations, as adjusted to reflect the disposition of a 25% ownership interest in PFL. The unaudited consolidated pro forma financial information of Pernix should be read in conjunction with the related notes and with the historical consolidated financial statements of Pernix and the related notes included in previous filings with the Securities and Exchange Commission. The historical balance sheet and statement of operations presented in the pro forma financial information as of, and for the nine months ended, September 30, 2014 reflect the amounts presented in the Form 10-Q filed on November 14, 2014. &nbsp;The historical statement of operations for the year ended December 31, 2013 reflects the amounts presented in the Form 10-K filed on March 28, 2014, subject to certain reclassifications to confirm to the Company&#8217;s 2014 presentation.</FONT></P>
<P style="font:10pt Times New Roman;margin:0;color:#000000">&nbsp;</P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000"><FONT style="font-size:10pt">The unaudited pro forma consolidated balance sheet reflects the partial sale of PFL as if it occurred on September 30, 2014 while the unaudited pro forma consolidated statements of consolidated operations give effect to the disposition as if it occurred on January 1, 2013. The pro forma adjustments reflect a) the receipt of cash for the sale of the 25% ownership interest and related increase in non-controlling interest and b) the allocation of the pro rata amount of PFL income to non-controlling interest. &nbsp;The pro forma adjustments are based on the best available information and certain assumptions that Pernix management believes are reasonable.</FONT></P>
<P style="font:13.5pt Times New Roman;margin:0;color:#000000">&#160;</P>
<P style="font:10pt Times New Roman;margin:0;color:#000000">The unaudited consolidated pro forma financial information is presented for illustrative purposes only and does not purport to be indicative of the operating results or financial position that would have occurred if the transaction described above had occurred as presented in such statements. In addition, future results may vary significantly from the results reflected in such statements. </P>
<P style="font:10pt Times New Roman;margin:0;color:#000000">&nbsp;</P>
<P style="font:13.5pt Times New Roman;margin-top:0pt;margin-bottom:10pt;color:#000000">&nbsp;</P>
<P align=center style="font:11pt Times New Roman;margin:0">2&nbsp;</P>
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<TABLE style="border-collapse:collapse"><TR><TD colspan='7' valign='middle' style="width:468pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>PERNIX GROUP, INC.</B></P></TD></TR>
<TR><TD colspan='7' valign='middle' style="width:468pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>AND SUBSIDIARIES</B></P></TD></TR>
<TR><TD colspan='7' valign='middle' style="width:468pt"><P align=center style="font:9pt Times New Roman;margin:0">Pro Forma Condensed Consolidated Balance Sheets</P></TD></TR>
<TR><TD colspan='7' valign='middle' style="width:468pt"><P align=center style="font:9pt Times New Roman;margin:0">As of September 30, 2014 (unaudited)</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:218.1pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>Assets</B></P></TD><TD valign='top' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Historical September 30, 2014</B></P></TD><TD valign='bottom' style="width:13.1pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:71.35pt;border-bottom:0.5pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma Adjustments For PFL Partial Sale</B></P></TD><TD valign='bottom' style="width:11.35pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma September 30, 2014</B></P></TD></TR>
<TR><TD valign='top' bgcolor='#CCECFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Current assets:</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Cash and cash equivalents</P></TD><TD valign='bottom' style="width:8.8pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">16,134,380</P></TD><TD valign='bottom' style="width:13.1pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='top' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">18,397,685</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Restricted cash</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">1,237,015</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">1,237,015</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Accounts receivable</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">6,795,808</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">6,795,808</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Inventories</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">1,521,821</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">1,521,821</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Cost in excess of billings</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">287,042</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">287,042</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Equipment deposit</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">12,051,639</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">12,051,639</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Prepaid expenses and other current assets</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">1,008,702</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">1,008,702</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:11.25pt">Total current assets</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">39,036,407</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">41,299,712</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:-6.75pt"> &nbsp;&nbsp;Property and equipment, net of accumulated depreciation of $139,767 as of September 30, 2014 </P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">1,675,280</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">1,675,280</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Other assets</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">55,243</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">55,243</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Intangible assets, net</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">100,231</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">100,231</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:29.25pt">Total assets</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">40,867,161</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">43,130,466</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>Liabilities and Stockholders&#8217; Equity</B></P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:71.35pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Current liabilities:</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Accounts payable and accrued expenses</P></TD><TD valign='bottom' style="width:8.8pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">8,897,319</P></TD><TD valign='bottom' style="width:13.1pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">8,897,319</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Billings in excess of costs and estimated earnings</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">17,674,731</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">17,674,731</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Dividends payable</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">227,461</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">227,461</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:29.25pt">Total liabilities</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">26,799,511</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">26,799,511</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Commitments and contingencies</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin-top:0pt;margin-bottom:1.95pt">Stockholders' Equity:</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Pernix Group, Inc. and Subsidiaries Stockholders' equity</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Series A convertible senior preferred stock, $0.01 par value.&#160;Authorized 1,000,000 &#160;shares, $5,000,000 liquidation preference, 1,000,000 shares issued and outstanding at September 30, 2014</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">10,000</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Calibri;margin-top:0pt;margin-bottom:10pt"><FONT style="font-family:Times New Roman">&#8212;</FONT></P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">10,000</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Series B convertible senior preferred stock, $0.01 par value. Authorized 400,000 shares, $850,000 involuntary liquidation preference, 170,000 shares issued and outstanding at September 30, 2014</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">1,700</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Calibri;margin-top:0pt;margin-bottom:10pt"><FONT style="font-family:Times New Roman">&#8212;</FONT></P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">1,700</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Common stock, $0.01 par value.&#160;Authorized 20,000,000 shares, 9,403,697 issued and outstanding at September 30, 2014</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">94,037</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Calibri;margin-top:0pt;margin-bottom:10pt"><FONT style="font-family:Times New Roman">&#8212;</FONT></P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">94,037</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Additional paid-in capital</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">14,704,568</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">14,704,568</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0">Accumulated deficit (deficit eliminated as a result of Quasi-Reorganization as of September 30, 2012 - $68,626,283)</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Accumulated deficit - since September 30, 2012</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">(3,409,105)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">(3,409,105)</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">Accumulated other comprehensive loss - since &nbsp;&nbsp;</P><P style="font:9pt Times New Roman;margin:0;text-indent:6.75pt">September 30, 2012</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(396,641)</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:71.35pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(396,641)</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:20.25pt">Total Pernix Group, Inc. and Subsidiaries</P><P style="font:9pt Times New Roman;margin:0;text-indent:20.25pt">Stockholders' equity</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">11,004,559</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">11,004,559</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:20.25pt">Non-controlling interest</P></TD><TD valign='bottom' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">3,063,091</P></TD><TD valign='bottom' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">5,326,396</P></TD></TR>
<TR><TD valign='top' bgcolor='#CCEEFF' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:29.25pt">Total Stockholders' equity</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:8.8pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:70.6pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">14,067,650</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.1pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:71.35pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:74.7pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">16,330,955</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:47.25pt">Total liabilities and Stockholders' equity</P></TD><TD valign='bottom' style="width:8.8pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:70.6pt"><P align=right style="font:9pt Times New Roman;margin:0">40,867,161</P></TD><TD valign='bottom' style="width:13.1pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='top' style="width:71.35pt"><P align=right style="font:9pt Times New Roman;margin:0">2,263,305</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt"><P align=right style="font:9pt Times New Roman;margin:0">43,130,466</P></TD></TR>
<TR><TD valign='top' style="width:218.1pt"><P style="font:9pt Times New Roman;margin:0;text-indent:47.25pt">&nbsp;</P></TD><TD valign='bottom' style="width:8.8pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:70.6pt;border-top:3px double #000000"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:13.1pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:71.35pt;border-top:3px double #000000"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:11.35pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:74.7pt;border-top:3px double #000000"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD></TR>
</TABLE><P align=justify style="font:10pt Times New Roman;margin:0">&nbsp;</P>
<P style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P align=center style="font:11pt Times New Roman;margin:0">3&nbsp;</P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
<HR style='page-break-after:always' size=5 color='#000000'>
<P align=justify style="font:10pt Times New Roman;margin:0">&nbsp;</P>
<TABLE align='center' style="border-collapse:collapse;width:480.9pt"><TR style="height:36.8pt"><TD colspan='7' valign='bottom' style="width:480.25pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>PERNIX GROUP, INC.</B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>AND SUBSIDIARIES</B></P><P align=center style="font:9pt Times New Roman;margin:0">Pro Forma Condensed Consolidated Statements of Operations</P><P align=center style="font:9pt Times New Roman;margin:0"><B>Nine Months Ended September 30, 2014 (unaudited)</B></P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:82.95pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:89.35pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Historical </B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>September 30, 2014</B></P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma Adjustments For PFL Partial Sale</B></P></TD><TD valign='top' style="width:13.5pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:89.35pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma </B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>September 30, 2013</B></P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Revenues:</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Construction revenue</P></TD><TD valign='bottom' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">45,229,114&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='bottom' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">45,229,114&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Service fees &#8211;&nbsp;power generation plant</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">5,053,456&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">5,053,456&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Rent income</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">75,887&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">75,887&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other revenue</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">37,419&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">37,419&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Gross revenues</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">50,395,876&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">50,395,876&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Costs and expenses:</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Construction costs</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">35,059,384&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">35,059,384&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Operation and maintenance costs &#8211;&nbsp;power</P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;generation plant</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,737,831&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,737,831&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Cost of revenues</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">37,797,215&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-top:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">37,797,215&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Gross profit</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">12,598,661&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">12,598,661&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Operating expenses:</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Salaries and employee benefits</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">4,207,251&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">4,207,251&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;General and administrative</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,748,685&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,748,685&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Total operating expenses</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">6,955,936&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">6,955,936&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Operating income</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">5,642,725&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">5,642,725&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Other income (expense):</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Interest income (expense), net</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">2,150&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">2,150&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other expense - related party</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(62,157)</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(62,157)</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Foreign currency exchange (loss) gain</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(19,984)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(19,984)</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other income, net</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">83,663&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">83,663&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Total other income (expense)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">3,672&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">3,672&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Consolidated income before income taxes</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">5,646,397&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">5,646,397&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Income tax provision</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(415,803)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(415,803)</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Consolidated net income (loss)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">5,230,594&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">5,230,594&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Less: &#160;income attributable to non-controlling interest</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">4,555,572&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">165,721</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">4,721,293&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Net income (loss) attributable to the </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stockholders of Pernix Group, Inc. </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and&#160;Subsidiaries</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">675,022&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(165,721)</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">509,301</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Less: &#160;Preferred stock dividends</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">342,694&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">342,694&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;&#160;Net income (loss) attributable to the common </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stockholders of Pernix Group&#160;Inc., and </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">332,328&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">(165,721)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">166,607</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Earnings (loss) per share attributable to the stockholders of Pernix Group, Inc. and Subsidiaries:</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Basic net income (loss) &#160;per share</P></TD><TD valign='bottom' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">0.04&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='top' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">(0.02)</P></TD><TD valign='bottom' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">0.02</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Diluted net income &#160;(loss) per share</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">0.03&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">(0.02)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">0.01</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Weighted average shares outstanding &#160;basic</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Weighted average shares outstanding &#160;diluted</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">11,014,867&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">11,014,867&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">11,014,867&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
</TABLE><P align=justify style="font:10pt Times New Roman;margin:0">&nbsp;</P>
<TABLE align='center' style="border-collapse:collapse;width:480.9pt"></TABLE><P align=center style="font:11pt Times New Roman;margin:0">4&nbsp;</P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
<HR style='page-break-after:always' size=5 color='#000000'>
<TABLE align='center' style="border-collapse:collapse;width:480.9pt"><TR style="height:36.8pt"><TD colspan='7' valign='bottom' style="width:480.25pt"><P align=center style="font:9pt Times New Roman;margin:0"><B>PERNIX GROUP, INC.</B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>AND SUBSIDIARIES</B></P><P align=center style="font:9pt Times New Roman;margin:0">Pro Forma Condensed Consolidated Statements of Operations</P><P align=center style="font:9pt Times New Roman;margin:0"><B>Year Ended December 30, 2013 (unaudited)</B></P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:82.95pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:89.35pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Historical </B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>December 30, 2013</B></P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma Adjustments For PFL Partial Sale</B></P></TD><TD valign='top' style="width:13.5pt"><P align=center style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='bottom' style="width:89.35pt;border-bottom:1pt solid #000000"><P align=center style="font:9pt Times New Roman;margin:0"><B>Pro Forma </B></P><P align=center style="font:9pt Times New Roman;margin:0"><B>December 30, 2013</B></P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Revenues:</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Construction revenue</P></TD><TD valign='bottom' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">67,776,314&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='bottom' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">67,776,314&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Service fees &#8211;&nbsp;power generation plant</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">5,810,652&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">5,810,652&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Rent income</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">122,674&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">122,674&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other revenue</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">52,508&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">52,508&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Gross revenues</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">73,762,148&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">73,762,148&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Costs and expenses:</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Construction costs</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">63,904,627&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">63,904,627&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Operation and maintenance costs &#8211;&nbsp;power </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;generation plant</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,665,869&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,665,869&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Cost of revenues</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">66,570,496&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-top:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">66,570,496&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Gross profit</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">7,191,652&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">7,191,652&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Operating expenses:</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCECFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Salaries and employee benefits</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">2,854,888&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCECFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCECFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCECFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">2,854,888&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;General and administrative</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,328,001&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,328,001&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Total operating expenses</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">5,182,889&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">5,182,889&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Operating income</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,008,763&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">2,008,763&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Other income (expense):</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Interest income (expense), net</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(69)&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(69)&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other expense - related party</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(136,589)</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(136,589)</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Foreign currency exchange (loss) gain</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(16,639)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(16,639)</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;Other income, net</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">70,239&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">70,239&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Total other income (expense)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(83,058)&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(83,058)&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Consolidated income before income taxes</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">1,925,705&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">1,925,705&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Income tax provision</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(5,041,514)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(5,041,514)</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Consolidated net income (loss)</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(3,115,809)&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(3,115,809)&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Less: &#160;income attributable to non-controlling interest</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">1,509,184&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">163,013</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">1,672,197&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;&#160;&#160;&#160;&#160;Net income (loss) attributable to the </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stockholders of Pernix Group, Inc. </P><P style="font:9pt Times New Roman;margin:0"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and&#160;Subsidiaries</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(4,624,993)&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(163,013)</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.75pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">(4,788,006)</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Less: &#160;Preferred stock dividends</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">55,250&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">&#8212;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt;border-bottom:0.5pt solid #000000"><P align=right style="font:9pt Times New Roman;margin:0">55,250&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
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<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt;border-top:3px double #000000"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Earnings (loss) Per Share attributable to the stockholders of Pernix Group, Inc. and Subsidiaries:</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Basic and diluted net income &#160;per share</P></TD><TD valign='bottom' style="width:6.85pt"><P align=right style="font:9pt Times New Roman;margin:0">$</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">(0.50)&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD valign='top' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">(0.02)</P></TD><TD valign='bottom' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">$&#160;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">(0.52)</P></TD></TR>
<TR><TD valign='bottom' bgcolor='#CCEEFF' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Weighted average shares outstanding &#160;basic</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' bgcolor='#CCEEFF' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='top' bgcolor='#CCEEFF' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' bgcolor='#CCEEFF' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">Weighted average shares outstanding &#160;diluted</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.95pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD><TD valign='top' style="width:13.5pt"><P align=right style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P align=right style="font:9pt Times New Roman;margin:0">9,403,697&#160;</P></TD></TR>
<TR><TD valign='bottom' style="width:190.95pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:6.85pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:82.75pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='bottom' style="width:13.9pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD><TD valign='top' style="width:82.95pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD valign='top' style="width:13.5pt"><P style="font:9pt Times New Roman;margin:0">&nbsp;</P></TD><TD colspan='2' valign='bottom' style="width:90pt"><P style="font:9pt Times New Roman;margin:0">&#160;</P></TD></TR>
</TABLE><P style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P align=center style="font:11pt Times New Roman;margin:0">5&nbsp;</P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
<HR style='page-break-after:always' size=5 color='#000000'>
<P style="font:11pt Calibri;margin:0">&#160;</P>
<P style="font:11pt Calibri;margin:0"><FONT style="font:10pt Times New Roman;color:#000000">(d) Exhibits</FONT></P>
<P style="font:11pt Calibri;margin:0">&#160;</P>
<P style="font:11pt Calibri;margin:0"><FONT style="font:10pt Times New Roman;color:#000000">The following Exhibit is furnished as part of this report:</FONT></P>
<P style="font:11pt Calibri;margin:0">&#160;</P>
<P style="font:10pt Times New Roman;margin:0;color:#000000"><U>Exhibit </U></P>
<P style="font:10pt Times New Roman;margin:0;color:#000000"><kbd style='width:72pt;float:left;font-family:Times New Roman'><U>No.</U></kbd><U>Description</U></P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
<TABLE style="border-collapse:collapse;width:100%"><TR><TD colspan='2' valign='middle'><P style="font:12pt Times New Roman;margin:0">&nbsp;</P></TD></TR>
<TR><TD valign='top' style="width:72pt"><P style="font:11pt Calibri;margin:0"><FONT style="font:10pt Times New Roman;color:#000000">99.1</FONT></P><P style="font:11pt Calibri;margin:0">&nbsp;</P></TD><TD valign='top'><P style="font:10pt Times New Roman;margin:0;color:#000000">Press Release.</P><P style="font:11pt Calibri;margin:0">&nbsp;</P></TD></TR>
</TABLE><P align=center style="font:10pt Times New Roman;margin-top:5pt;margin-bottom:5pt">&nbsp;</P>
<P style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P align=center style="font:11pt Times New Roman;margin:0">6&nbsp;</P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
<HR style='page-break-after:always' size=5 color='#000000'>
<P align=center style="font:10pt Times New Roman;margin-top:5pt;margin-bottom:5pt">&nbsp;</P>
<P align=center style="font:12pt Times New Roman;margin-top:5pt;margin-bottom:5pt"><FONT style="font-size:10pt"><B>SIGNATURES</B></FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0;text-indent:36pt"><FONT style="font-size:10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<P align=center style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<TABLE style="border-collapse:collapse;width:100%"><TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD colspan='2' valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">PERNIX GROUP,&#160;INC.</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P></TD><TD colspan='2' valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">By:</FONT></P></TD><TD valign='top' style="width:46.66%;border-bottom:1pt solid #000000"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">/s/ Nidal Z. Zayed</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:46.66%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Nidal Z. Zayed</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:46.66%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">President and Chief Executive Officer</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P></TD><TD valign='top' style="width:46.66%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">By:</FONT></P></TD><TD valign='top' style="width:46.66%;border-bottom:1pt solid #000000"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">/s/ Patrick J. Gainer</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:46.66%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Patrick J. Gainer</FONT></P></TD></TR>
<TR><TD valign='top' style="width:50%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:3.34%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:1pt">&#160;</FONT></P></TD><TD valign='top' style="width:46.66%"><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Chief Financial Officer</FONT></P></TD></TR>
</TABLE><P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">&#160;</FONT></P>
<P style="font:12pt Times New Roman;margin:0"><FONT style="font-size:10pt">Dated:&#160;&#160;December 3, 2014</FONT></P>
<P align=center style="font:10pt Times New Roman;margin:0">&nbsp;</P>
<P style="font:11pt Calibri;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P style="font:11pt Calibri;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P style="font:11pt Calibri;margin-top:0pt;margin-bottom:10pt">&nbsp;</P>
<P align=center style="font:11pt Times New Roman;margin:0">7&nbsp;</P>
<P style="font:11pt Calibri;margin:0">&nbsp;</P>
</DIV>
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Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
November 25, 2014
PERNIX GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware
333-92445
36-4025775
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)
151 E. 22nd Street
Lombard, Il.
60148
(Address of Principal Executive Offices)
(Zip Code)
(630) 620-4787
(Registrant's telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01. Completion of Acquisition or Disposition of Assets.
On November 25, 2014, Pernix Group, Inc. ("Pernix") completed a sale of a 25% ownership interest in Pernix (Fiji) Limited ("PFL"), which was a wholly-owned subsidiary of Pernix prior to the sale and is located in Fiji. Pernix sold the 25% ownership interest in PFL to Fijian Holdings Limited, an unrelated third party, for cash proceeds of approximately FJD 4.35 million (or approximately $2.3 million USD as of November 25, 2014).
Pro forma financial information with respect to the sale is provided in Item 9.01 of this Current Report on Form 8-K.
Item 8.01. Other Event
On December 2, 2014, the Company issued a Press Release included here as Exhibit 99.1. The press release shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
PERNIX GROUP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
On November 25, 2014, Pernix Group, Inc. ("Pernix") completed a sale of a 25% ownership interest in Pernix (Fiji) Limited ("PFL"), which was a wholly-owned subsidiary of Pernix prior to the sale and is located in Fiji. Pernix sold the 25% ownership interest in PFL to Fijian Holdings Limited, an unrelated third party, for cash proceeds of approximately FJD 4.35 million (or approximately $2.3 million USD as of November 25, 2014).
The following unaudited consolidated pro forma financial information of Pernix Group, Inc. and its consolidated subsidiaries is based upon the historical balance sheet and statements of operations, as adjusted to reflect the disposition of a 25% ownership interest in PFL. The unaudited consolidated pro forma financial information of Pernix should be read in conjunction with the related notes and with the historical consolidated financial statements of Pernix and the related notes included in previous filings with the Securities and Exchange Commission. The historical balance sheet and statement of operations presented in the pro forma financial information as of, and for the nine months ended, September 30, 2014 reflect the amounts presented in the Form 10-Q filed on November 14, 2014.  The historical statement of operations for the year ended December 31, 2013 reflects the amounts presented in the Form 10-K filed on March 28, 2014, subject to certain reclassifications to confirm to the Company's 2014 presentation.
The unaudited pro forma consolidated balance sheet reflects the partial sale of PFL as if it occurred on September 30, 2014 while the unaudited pro forma consolidated statements of consolidated operations give effect to the disposition as if it occurred on January 1, 2013. The pro forma adjustments reflect a) the receipt of cash for the sale of the 25% ownership interest and related increase in non-controlling interest and b) the allocation of the pro rata amount of PFL income to non-controlling interest.  The pro forma adjustments are based on the best available information and certain assumptions that Pernix management believes are reasonable.
The unaudited consolidated pro forma financial information is presented for illustrative purposes only and does not purport to be indicative of the operating results or financial position that would have occurred if the transaction described above had occurred as presented in such statements. In addition, future results may vary significantly from the results reflected in such statements.
2
PERNIX GROUP, INC.
AND SUBSIDIARIES
Pro Forma Condensed Consolidated Balance Sheets
As of September 30, 2014 (unaudited)
Assets
Historical September 30, 2014
Pro Forma Adjustments For PFL Partial Sale
Pro Forma September 30, 2014
Current assets:
Cash and cash equivalents
$
16,134,380
$
2,263,305
$
18,397,685
Restricted cash
1,237,015
—
1,237,015
Accounts receivable
6,795,808
—
6,795,808
Inventories
1,521,821
—
1,521,821
Cost in excess of billings
287,042
—
287,042
Equipment deposit
12,051,639
—
12,051,639
Prepaid expenses and other current assets
1,008,702
—
1,008,702
Total current assets
39,036,407
2,263,305
41,299,712
Property and equipment, net of accumulated depreciation of $139,767 as of September 30, 2014
1,675,280
—
1,675,280
Other assets
55,243
—
55,243
Intangible assets, net
100,231
—
100,231
Total assets
$
40,867,161
$
2,263,305
$
43,130,466
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses
$
8,897,319
$
—
$
8,897,319
Billings in excess of costs and estimated earnings
17,674,731
—
17,674,731
Dividends payable
227,461
—
227,461
Total liabilities
26,799,511
—
26,799,511
Commitments and contingencies
Stockholders' Equity:
Pernix Group, Inc. and Subsidiaries Stockholders' equity
Series A convertible senior preferred stock, $0.01 par value. Authorized 1,000,000  shares, $5,000,000 liquidation preference, 1,000,000 shares issued and outstanding at September 30, 2014
10,000
—
10,000
Series B convertible senior preferred stock, $0.01 par value. Authorized 400,000 shares, $850,000 involuntary liquidation preference, 170,000 shares issued and outstanding at September 30, 2014
1,700
—
1,700
Common stock, $0.01 par value. Authorized 20,000,000 shares, 9,403,697 issued and outstanding at September 30, 2014
94,037
—
94,037
Additional paid-in capital
14,704,568
—
14,704,568
Accumulated deficit (deficit eliminated as a result of Quasi-Reorganization as of September 30, 2012 - $68,626,283)
—
—
—
Accumulated deficit - since September 30, 2012
(3,409,105)
—
(3,409,105)
Accumulated other comprehensive loss - since
September 30, 2012
(396,641)
—
(396,641)
Total Pernix Group, Inc. and Subsidiaries
Stockholders' equity
11,004,559
—
11,004,559
Non-controlling interest
3,063,091
2,263,305
5,326,396
Total Stockholders' equity
14,067,650
2,263,305
16,330,955
Total liabilities and Stockholders' equity
$
40,867,161
$
2,263,305
43,130,466
3
PERNIX GROUP, INC.
AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statements of Operations
Nine Months Ended September 30, 2014 (unaudited)
Historical
September 30, 2014
Pro Forma Adjustments For PFL Partial Sale
Pro Forma
September 30, 2013
Revenues:
Construction revenue
$
45,229,114
$
—
$
45,229,114
Service fees – power generation plant
5,053,456
—
5,053,456
Rent income
75,887
—
75,887
Other revenue
37,419
—
37,419
Gross revenues
50,395,876
—
50,395,876
Costs and expenses:
Construction costs
35,059,384
—
35,059,384
Operation and maintenance costs – power
generation plant
2,737,831
—
2,737,831
Cost of revenues
37,797,215
—
37,797,215
Gross profit
12,598,661
—
12,598,661
Operating expenses:
Salaries and employee benefits
4,207,251
—
4,207,251
General and administrative
2,748,685
—
2,748,685
Total operating expenses
6,955,936
—
6,955,936
Operating income
5,642,725
—
5,642,725
Other income (expense):
Interest income (expense), net
2,150
—
2,150
Other expense - related party
(62,157)
—
(62,157)
Foreign currency exchange (loss) gain
(19,984)
—
(19,984)
Other income, net
83,663
—
83,663
Total other income (expense)
3,672
—
3,672
Consolidated income before income taxes
5,646,397
—
5,646,397
Income tax provision
(415,803)
—
(415,803)
Consolidated net income (loss)
5,230,594
—
5,230,594
Less:  income attributable to non-controlling interest
4,555,572
165,721
4,721,293
Net income (loss) attributable to the
stockholders of Pernix Group, Inc.
and Subsidiaries
675,022
(165,721)
509,301
Less:  Preferred stock dividends
342,694
—
342,694
Net income (loss) attributable to the common
stockholders of Pernix Group Inc., and
Subsidiaries
$
332,328
$
(165,721)
$
166,607
Earnings (loss) per share attributable to the stockholders of Pernix Group, Inc. and Subsidiaries:
Basic net income (loss)  per share
$
0.04
$
(0.02)
$
0.02
Diluted net income  (loss) per share
$
0.03
$
(0.02)
$
0.01
Weighted average shares outstanding  basic
9,403,697
9,403,697
9,403,697
Weighted average shares outstanding  diluted
11,014,867
11,014,867
11,014,867
4
PERNIX GROUP, INC.
AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statements of Operations
Year Ended December 30, 2013 (unaudited)
Historical
December 30, 2013
Pro Forma Adjustments For PFL Partial Sale
Pro Forma
December 30, 2013
Revenues:
Construction revenue
$
67,776,314
$
—
$
67,776,314
Service fees – power generation plant
5,810,652
—
5,810,652
Rent income
122,674
—
122,674
Other revenue
52,508
—
52,508
Gross revenues
73,762,148
—
73,762,148
Costs and expenses:
Construction costs
63,904,627
—
63,904,627
Operation and maintenance costs – power
generation plant
2,665,869
—
2,665,869
Cost of revenues
66,570,496
—
66,570,496
Gross profit
7,191,652
—
7,191,652
Operating expenses:
Salaries and employee benefits
2,854,888
—
2,854,888
General and administrative
2,328,001
—
2,328,001
Total operating expenses
5,182,889
—
5,182,889
Operating income
2,008,763
—
2,008,763
Other income (expense):
Interest income (expense), net
(69)
—
(69)
Other expense - related party
(136,589)
—
(136,589)
Foreign currency exchange (loss) gain
(16,639)
—
(16,639)
Other income, net
70,239
—
70,239
Total other income (expense)
(83,058)
—
(83,058)
Consolidated income before income taxes
1,925,705
—
1,925,705
Income tax provision
(5,041,514)
—
(5,041,514)
Consolidated net income (loss)
(3,115,809)
—
(3,115,809)
Less:  income attributable to non-controlling interest
1,509,184
163,013
1,672,197
Net income (loss) attributable to the
stockholders of Pernix Group, Inc.
and Subsidiaries
(4,624,993)
(163,013)
(4,788,006)
Less:  Preferred stock dividends
55,250
—
55,250
Net income (loss) attributable to the common
stockholders of Pernix Group Inc., and
Subsidiaries
$
(4,680,243)
$
(163,013)
$
(4,843,256)
Earnings (loss) Per Share attributable to the stockholders of Pernix Group, Inc. and Subsidiaries:
Basic and diluted net income  per share
$
(0.50)
$
(0.02)
$
(0.52)
Weighted average shares outstanding  basic
9,403,697
9,403,697
9,403,697
Weighted average shares outstanding  diluted
9,403,697
9,403,697
9,403,697
5
(d) Exhibits
The following Exhibit is furnished as part of this report:
Exhibit
No.
Description
99.1
Press Release.
6
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PERNIX GROUP, INC.
By:
/s/ Nidal Z. Zayed
Nidal Z. Zayed
President and Chief Executive Officer
By:
/s/ Patrick J. Gainer
Patrick J. Gainer
Chief Financial Officer
Dated:  December 3, 2014
7