Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 43

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 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 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