Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 120

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 3
Chunk 120
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; and

    (ii)
    adopt
    sufficient written policies and procedures for accounting and financial reporting.

The
remediation efforts set out in (i) are largely dependent upon our company securing additional financing to cover the costs of implementing
the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control
issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making
can be faulty and that breakdowns can occur because of simple error or mistake.

Management
believes that despite our material weaknesses set forth above, our consolidated financial statements for the quarterly report ended December
31, 2024 are fairly stated, in all material respects, in accordance with US GAAP.

Attestation
Report of the Registered Accounting Firm

This
Quarterly Report does not include an attestation report of the Company’s independent registered public accounting firm regarding
internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent
registered public accounting firm pursuant to Rule 308(b) of Regulation S-K, which permits the Company to provide only management’s
report in this Quarterly Report.

Changes
in Internal Control over Financial Reporting

No
changes in the Company’s internal control over financial reporting have come to management’s attention during the fiscal
quarter ended December 31, 2024 that have materially affected, or are likely to materially affect, the Company’s internal control
over financial reporting.

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

Besides some merchant cash advance cases involving Philux Capital Advisors, Inc., a wholly-owned subsidiary of the
Company, that we intend to settle, the Company is a party to these pending legal proceedings:

PENDING
LITIGATIONS:

NICHOLAS
SCHMITZ VS. PHILUX GLOBAL GROUP, INC., a Wyoming Corporation, and HENRY D. FAHMAN, an individual.

This
case (8:24-cv-02554-DOC-KES) was filed in the United States District Court for the Central District of California on November 21, 2024
by Nicholas Schmitz, a shareholder of the Company who claimed that he had been damaged in the total amount of $3,109,145 from his seven
loans totaling $99,500