Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 57

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 57
---
 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 nine months ended March 31, 2025 are not necessarily indicative
of the results to be expected for the fiscal year ending June 30, 2025.

    F-6

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 periods. Actual results could
differ from those estimates.

CASH
AND CASH EQUIVALENTS

The
Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible
into cash to be cash equivalents.

ACCOUNTS
RECEIVABLE

Management
reviews the composition of accounts receivable and analyzes historical bad debts. As of March 31, 2025, the Company did not have any
accounts receivable.

PROPERTIES
AND EQUIPMENT

Property
and equipment are carried at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated
useful life of the assets from 3three to five years. Expenditures for maintenance and repairs are charged to expense as incurred.

REVENUE
RECOGNITION STANDARDS

ASC
606-10 provides the following overview of how revenue is recognized from an entity’s contracts with customers: An entity recognizes
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.

Step
1: Identify the contract(s) with a customer.

Step
2: Identify the performance obligations in the contract.

Step
3: Determine the transaction price – The transaction price is the amount of