Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 126

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 3
Chunk 126
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 retain qualified personnel in the future.

12

Risks
Related to Mergers and Acquisitions

Our
strategy in mergers and acquisitions involves a number of risks and we have a limited history of successful acquisitions. Even when an
acquisition is completed, we may have to continue our service for integration that may not produce results as positive as management
may have projected.

The
Company continues evaluating various opportunities and negotiating to acquire other companies, assets and technologies. Acquisitions
entail numerous risks, including difficulties in the assimilation of acquired operations and products, diversion of management’s
attention from other business concerns, amortization of acquired intangible assets and potential loss of key employees of acquired companies.
We have limited experience in assimilating acquired organizations into our operations. Although potential synergy may be achieved by
acquisitions of related technologies and businesses, no assurance can be given as to the Company’s ability to successfully integrate
any operations, personnel, services or products that have been acquired or might be acquired in the future. Failure to successfully assimilate
acquired organizations could have a material adverse effect on the Company’s business, financial condition and operating results.

Acquisitions
involve a number of special risks, including:

    ●
    failure
    of the acquired business to achieve expected results;
  
    ●
    diversion
    of management’s attention;
  
    ●
    failure
    to retain key personnel of the acquired business;
  
    ●
    additional
    financing, if necessary and available, could increase leverage, dilute equity, or both;
  
    ●
    the
    potential negative effect on our financial statements from the increase in goodwill and other intangibles; and
  
    ●
    the
    high cost and expenses of completing acquisitions and risks associated with unanticipated events or liabilities.

These
risks could have a material adverse effect on our business, results of operations and financial condition since the values of the securities
received for the consulting service at the execution of the acquisition depend on the success of the company involved in acquisition.
In addition, our ability to further expand our operations through acquisitions may be dependent on our ability to obtain sufficient working
capital, either through cash flows generated through operations or financing activities or both. There can be no assurance that we will
be able to obtain any additional financing on terms that are acceptable to us, or at all.

Risks
associated with private equity (PE) funds

There
are, broadly, five key risks to private equity investing: