Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 119

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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 must be able to attract a large number of international diamonteers to participate in the
exchange. There is no guarantee that people will come when the exchange is built.

4.
Venue: The venue must be able to provide competitive advantages compared with existing diamond exchanges in the world in
terms of (a) modern facilities, latest technologies and state-of-the-art provisions, (b) tax relief, (c) financial facilitating network
from big investors, (d) retail banking, lending institutions and foreign exchange facilities, (e) licenses and registrations, (f) global
multi-commodities trading flatform, and (g) other amenities.

Risks
Associated with International Markets

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

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

Risks
Related to Our Securities

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

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

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

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

14

Since