Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 109

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 the participation of our Chief Executive Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures (as defined in Rules 13a-15(e) of the Exchange Act), as of the period covered by this report. Disclosure controls
and procedures are defined as controls and other procedures that are designed to ensure that information required to be disclosed by
us in reports filed with the SEC under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive
officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon their evaluation,
our management (including our Chief Executive Officer) concluded that our disclosure controls and procedures were not effective as of
December 31, 2024, based on the material weaknesses defined below.

Internal
Control over Financial Reporting

Management’s
Report on Internal Control of Financial Reporting

Our
management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over
financial reporting is a set of processes designed by, or under the supervision of, a company’s principal executive and principal
financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP and includes those policies and procedures that:

    -
    pertain
    to the maintenance of records that 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.

Under
the supervision and