Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 89

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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20,169.

There
was no cash used in or provided by investing activities during the nine months ended March 31, 2025 and March 31, 2024.

Cash provided by financing activities was $2,164,598
for the nine months ended March 31, 2025, as compared to cash provided by financing activities in the amount of $3,252,606 for the same
period ended March 31, 2024. The primary reasons for a decrease of $1,088,008 in cash provided by financing activities between the two
corresponding periods were due to a decrease in Common Stock issuance for cash in the amount of $1,650,582, a decrease in Common Stock
to be issued in the amount of $570,274, and an increase in loans and notes of $604,490 between the two nine-month periods ended March
31, 2025 and March 31, 2024.

8

HISTORICAL
FINANCING ARRANGEMENTS

SHORT
TERM NOTES PAYABLE AND ISSUANCE OF COMMON STOCK

In
the course of its business, the Company has obtained short-term loans from individuals and institutional investors, including merchant
cash advances, and from time to time raised money by issuing restricted common stock of the Company under the auspices of Rule 144. These
notes bear interest rates ranging from 0% to 36% per annum.

CONVERTIBLE
PROMISSORY NOTES

The
Company has also from time to time issued convertible promissory notes to various private investment funds for short-term working capital
and special projects. Typically these notes bear interest rates from 5% to 12% per annum, mature within one year, are convertible to
common stock of the Company at a discount ranging from 42% to 50%, and may be repaid within 180 days at a prepayment premium ranging
from 130% to 150%.

COMPANY’S
PLAN OF OPERATION FOR THE FOLLOWING 12 MONTHS

In
the next twelve months the Company’s goals are to close the pending agreements for loan financing, asset management, partnership,
joint venture, and memorandum of understanding with international investor groups as mentioned above, advance the Philux Global Select
Growth Fund under Philux Global Funds SCA, SICAV-RAIF, develop the Asia Diamond Exchange in Vietnam in conjunction with International
Financial Center, commercialize the geomagnetic energy technologies, implement the business cooperation agreement with