Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 92

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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. The condition,
method, and timing of the exit are all factors that can affect how value can be created for investors.

Risks
Associated with Building and Operating a Diamond Exchange

Fundamentally,
the key requirements for a successful diamond exchange include the following:

1.
Supply: One of the most important things for a successful trading hub is the ability to secure ample, stable, and sustainable
supply of commodities. In the case of a diamond exchange, adequate supply of rough diamond must be secured to make it successful.

2.
Capital: Besides the infrastructure, facilities, systems, and amenities to operate the diamond exchange, the organizers
must be able to arrange very large amounts of capital to facilitate the trade and other business activities related to the exchange.

3.
Participants: The organizers must be able to attract a large number of international diamonteers to participate in the
exchange. There is no guarantee that people will come when the exchange is built.

4.
Venue: The venue must be able to provide competitive advantages compared with existing diamond exchanges in the world in
terms of (a) modern facilities, latest technologies and state-of-the-art provisions, (b) tax relief, (c) financial facilitating network
from big investors, (d) retail banking, lending institutions and foreign exchange facilities, (e) licenses and registrations, (f) global
multi-commodities trading flatform, and (g) other amenities.

Risks
Associated with International Markets

As
some of our business activities are currently involved with international markets, any adverse change to the economy or business environment
in these countries could significantly affect our operations, which would lead to lower revenues and reduced profitability.

Some
of our business activities are currently involved with non-US countries. Because of this presence in specific geographic locations, we
are susceptible to fluctuations in our business caused by adverse economic or other conditions in this region, including stock market
fluctuation. A stagnant or depressed economy in these countries generally, or in any of the other markets that we serve, could adversely
affect our business, results of operations and financial condition.

14

Risks
Related to Our Securities

Insiders
have substantial control over the company, and they could delay or prevent a change in our corporate control, even if our other stockholders
wanted such a change to occur.

Though
our executive officers and directors as of the date of this report, in the aggregate, only hold a small portion of our outstanding common
stock, we have the majority voting rights associated with