Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 45

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 pursuant to Rule 308(b) of Regulation S-K, which permits the Company to provide only management’s
report in this Quarterly Report.

Changes
in Internal Control over Financial Reporting

No
changes in the Company’s internal control over financial reporting have come to management’s attention during the fiscal
quarter ended December 31, 2024 that have materially affected, or are likely to materially affect, the Company’s internal control
over financial reporting.

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

Besides some merchant cash advance cases involving Philux Capital Advisors, Inc., a wholly-owned subsidiary of the
Company, that we intend to settle, the Company is a party to these pending legal proceedings:

PENDING
LITIGATIONS:

NICHOLAS
SCHMITZ VS. PHILUX GLOBAL GROUP, INC., a Wyoming Corporation, and HENRY D. FAHMAN, an individual.

This
case (8:24-cv-02554-DOC-KES) was filed in the United States District Court for the Central District of California on November 21, 2024
by Nicholas Schmitz, a shareholder of the Company who claimed that he had been damaged in the total amount of $3,109,145 from his seven
loans totaling $99,500 from June 14/2023 to November 14, 2023 and an Amendment to Agreement and Promissory Note dated 2/7/2024 in the
amount of $60,000 with the Company. The Company has accounted for contingencies in connection with these loans and intends to negotiate
with this shareholder to reach a fair and reasonable settlement of this matter.

STEVEN
KELLEY VS. PHILUX GLOBAL GROUP, INC., a Wyoming Corporation, and HENRY D. FAHMAN, an individual.

This
case (8:24-cv-02488-JAK-JDEx) was filed in the United States District Court for the Central District of California on November 14, 2024
by Steven Kelley, a shareholder of the Company who claimed that he had been damaged in the amount of $166,905 from his loan of $7,500
to the Company on October 23, 2023 and in the amount of $25,000 from his Private Stock Purchase Agreements dated July 10, 2023 for $15,000
and July 28, 2023 for $10,000, respectively.