Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 145

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part II, Item 1
Chunk 145
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 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
we do not currently meet the requirements for our stock to be quoted on NASDAQ, NYSE MKT LLC or any other senior exchange, the tradability
in our securities will be limited under the penny stock regulations.

Under
the rules of the Securities and Exchange Commission, as the price of our securities on the OTCQB or OTC Markets is below $5.00 per share,
our securities are within the definition of a “penny stock.” As a result, it is possible that our securities may be subject
to the “penny stock” rules and regulations. Broker-dealers who sell penny stocks to certain types of investors are required
to comply with the Commission’s regulations concerning the transfer of penny stock. These regulations require broker-dealers to:

*Make
a suitability determination prior to selling penny stock to the purchaser;

*Receive
the purchaser’s written consent to the transaction; and

*Provide
certain written disclosures to the purchaser.