Company: PHIL
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001493152-25-007556
Chunk: 118

Company: PHI GROUP INC
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 3
Chunk 118
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The
following discussion about PHI Group Inc.’s market risk involves forward-looking statements. Actual results could differ materially
from those projected in the forward-looking statements.

Currency
Fluctuations and Foreign Currency Risk

Some
of our operations are conducted in other countries whose official currencies are not U.S. dollars. However, the effect of the fluctuations
of exchange rates is considered minimal to our business operations.

Interest
Rate Risk

We
do not have significant interest rate risk, as most of our debt obligations are primarily short-term in nature to individuals, with fixed
interest rates.

Valuation
of Securities Risk

Since
a part of our assets is in the form of marketable securities, the value of our assets may fluctuate significantly depending on the market
value of the securities we hold.

10

ITEM
4. Controls and Procedures

Disclosure
Controls and Procedures

As
required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management carried
out an evaluation, with 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