Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 121

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 3
Chunk 121
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 from June 14/2023 to November 14, 2023 and an Amendment to Agreement and Promissory Note dated 2/7/2024 in the
amount of $60,000 with the Company. The Company has accounted for contingencies in connection with these loans and intends to negotiate
with this shareholder to reach a fair and reasonable settlement of this matter.

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

This
case (8:24-cv-02488-JAK-JDEx) was filed in the United States District Court for the Central District of California on November 14, 2024
by Steven Kelley, a shareholder of the Company who claimed that he had been damaged in the amount of $166,905 from his loan of $7,500
to the Company on October 23, 2023 and in the amount of $25,000 from his Private Stock Purchase Agreements dated July 10, 2023 for $15,000
and July 28, 2023 for $10,000, respectively. The Company has accounted for contingencies in connection with this loan and intends to
negotiate with this shareholder to reach a fair and reasonable settlement of this matter.

ITEM
1A. RISK FACTORS

Investment
in our securities is subject to various risks, including risks and uncertainties inherent in our business. The following sets forth factors
related to our business, operations, financial position or future financial performance or cash flows which could cause an investment
in our securities to decline and result in a loss.

General
Risks Related to Our Business

Our
success depends on our management team and other key personnel, the loss of any of whom could disrupt our business operations.

Our
future success will depend in substantial part on the continued service of our senior management and certain external experts. The loss
of the services of one or more of our key personnel and/or outside experts could impede implementation and execution of our business
strategy and result in the failure to reach our goals. We do not carry key person life insurance for any of our officers or employees.
Our future success will also depend on the continued ability to attract, retain and motivate highly qualified personnel in the diverse
areas required for continuing our operations. We cannot assure that we will be able to retain our key personnel or that we will be able
to attract, train or retain qualified