Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 112

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 112
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, commercialize the geomagnetic energy technologies, implement the business cooperation agreement with Saphia Alkali
JSC, as well as consummate and integrate some acquisitions and invest in targets that should add critical mass to the Company. In addition,
the Company will continue to carry out its merger and acquisition program by acquiring target companies for a roll-up strategy and also
invest in special situations. We will also continue to provide advisory and consulting services to international clients through our
subsidiaries Philux Global Advisors, Inc. and Philux Capital Advisors, Inc.

MATERIAL
CASH REQUIREMENTS: We must raise substantial amounts of capital to fulfill our plans for investment in the Asian Diamond Exchange, the
International Financial Center, the geomagnetic energy technology, and for acquisitions. Besides the financing agreements mentioned above,
we intend to use equity, debt and project financing to meet our capital needs for acquisitions and investments as needed.

Management
has taken action and formulated plans to meet the Company’s operating needs through June 30, 2025 and beyond. The working capital
cash requirements for the next 12 months are expected to be generated from management fees, operations, sale of marketable securities
and additional financing. The Company plans to generate revenues from its consulting services, merger and acquisition advisory services,
and acquisitions of target companies with cash flows.

AVAILABLE
FUTURE FINANCING ARRANGEMENTS: The Company may use various sources of funds, including investment management agreements, short-term loans,
long-term debt, equity capital, and project financing as may be necessary. The Company believes it will be able to secure the required
capital to implement its business plan.

9

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The
following discussion about PHI Group Inc.’s market risk involves forward-looking statements. Actual results could differ materially
from those projected in the forward-looking statements.

Currency
Fluctuations and Foreign Currency Risk

Some
of our operations are conducted in other countries whose official currencies are not U.S. dollars. However, the effect of the fluctuations
of exchange rates is considered minimal to our business operations.

Interest
Rate Risk

We
do not have significant interest rate risk, as most of our debt obligations are primarily short-term in nature to individuals, with fixed
interest rates.

Valuation
of Securities Risk

Since
a part of our assets is in the form of marketable securities, the value of our assets may fluctuate significantly depending on the market