Company: PHIL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011742
Chunk: 123

Company: PHI GROUP INC
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 3
Chunk 123
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 in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets,

    -
    provide
    reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance
    with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors,
    and

    -
    provide
    reasonable assurance regarding prevention or timely detection of authorized acquisition, use or disposition of our assets that could
    have a material effect on our financial statements.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. It should be noted that
any system of internal control, however well designed and operated, can provide only reasonable, and not absolute, assurance that the
objectives of the system will be met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

10

Under
the supervision and with the participation of management, including its principal executive officer and principal financial officer,
the Company’s management assessed the design and operating effectiveness of internal control over financial reporting as of March
31, 2025 based on the framework set forth in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.

We
have identified material weaknesses in our internal control over financial reporting:

    (i)
    inadequate
    segregation of duties consistent with control objectives;

    (ii)
    ineffective
    controls over period-end financial disclosure and reporting processes.

If
we fail to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report
our financial results in a timely manner, which may adversely affect investor confidence in our company.

Based
on this assessment, management concluded that the Company’s internal control over financial reporting was not effective as of March
31, 2025.

Management’s
Remediation Plan

We
plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this
quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses,
we plan to implement the following changes in the future:

    (i)
    appoint
    additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and