Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 11

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 to:

1.
Identify, build, acquire, commit and deploy valuable resources with distinctive competitive advantages;

2.
Identify, evaluate, acquire, participate and compete in attractive businesses that have large, growing market potential;

3.
Build an attractive investment that includes points of exit for investors through capital appreciation or spin-offs of business units.

    F-5

NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES
OF CONSOLIDATION

The
consolidated financial statements include the accounts of PHI Group, Inc. (a/k/a Philux Global Group, Inc.) and its active wholly owned
subsidiaries: (1) Philux Capital Advisors, Inc., a Wyoming corporation (100%), (2) Philux Global Advisors, Inc., a Wyoming corporation
(100%), (3) PHI Luxembourg Development S.A., a Luxembourg corporation (100%), (4) Philux Global Funds SCA, SICAV-RAIF, a Luxembourg Reserved
Alternative Investment Fund (100%), (5) Philux Global General Partners SA, a Luxembourg corporation (100%), and (6) PHI Luxembourg Holding
SA, a Luxembourg corporation (100%), collectively referred to as the “Company.” All significant inter-company transactions
have been eliminated in consolidation.

INTERIM
CONSOLIDATED FINANCIAL STATEMENTS

The
accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally
accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the
United States of America for complete financial statements. These statements should be read in conjunction with the financial statements
for the year ended June 30, 2024. In the opinion of management, all adjustments consisting of normal reoccurring accruals have been made
to the financial statements. The results of operation for the three and six months ended December 31, 2024 are not necessarily indicative
of the results to be expected for the fiscal year ending June 30, 2025.

USE
OF ESTIMATES

The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting