Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 84

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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, 2023, respectively.

Net
cash used in the Company’s operating activities during the six months ended December 31, 2024 was $1,790,818, as compared to net
cash used in operating activities of $1,507,409 during the corresponding period ended December 31, 2023. This represents an increase
of $283,409 in net cash used in operating activities between the two periods. The underlying reasons for the variance were primarily
due to a decrease of $2,675,852 in loss from operations between the six months ended December 31, 2024 and that of December 31, 2023,
a variance of $1,068,666 in accrued expenses, a variance of $730 in accounts payable, a decrease in prepaid expenses of $50,000 and a
decrease in non-cash issuance of stock in the amount of 1,936,594 between the two periods.

There
was no net cash provided by or used in investing activities during the six months ended December 31, 2024 or in the corresponding period
ended December 31, 2023.

Cash
provided by financing activities was $1,790,825 for the six months ended December 31, 2024, as compared to cash provided by financing
activities in the amount of $1,517,086 for the same period ended December 31, 2023. The primary underlying reasons for an increase of
$273,739 in cash provided by financing activities between the two corresponding periods were primarily due to a decrease in Common Stock
in the amount of $474,408, a decrease in Common Stock to be issued in the amount of $905,305, and an increase in loans and notes payable
in the amount of $1,653,452.

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