Company: HYSR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108125
Chunk: 9

Company: SUNHYDROGEN, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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 from the accounts and any gain or loss is included in the results
of operations. During the three months ended September 30, 2025 and 2024, the Company determined no impairment was required.

7

Revenue Recognition

The Company recognizes revenue in accordance with
Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of
ASC 606 is that 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.

An entity recognizes revenue in accordance with
that core principle by applying the following steps: Step 1: Identify the contract with the customer. Step 2: Identify the performance
obligations in the contract. Step 3: Determine the transaction price. Step 4. Allocate the transaction price. Step 5: Recognize revenue
when (or as) the entity satisfies a performance obligation.

The Company generates revenue primarily from consulting
services for providing technical and strategic consultancy services in support of ongoing projects. The Company’s consulting services
are invoiced monthly based on actual hours for the services at a standard rate per hour plus any reimbursements for travel expenses. Consulting
services may be terminated by either party with 30 days written notice.

During the three months ended September 30, 2025,
we generated revenue from consulting services of $1,250.

Accounts Receivable

We record accounts receivable at the invoiced
amount and we do not charge interest. We determine the allowance for doubtful accounts by regularly evaluating individual receivables,
and receivables are written off when deemed uncollectible. There were no provisions for doubtful accounts recorded as of September 30,
2025 and June 30, 2025. The Company recorded $0 in bad debt expense for the three months ended September 30, 2025.

Net Earnings (Loss) per Share Calculations

Net earnings (Loss) per share dictates the calculation
of basic earnings (loss) per share and diluted earnings per share. Basic earnings (loss) per share are computed by dividing by the weighted
average number of common shares outstanding during the three months ended September 30, 2025 and 2024. Diluted net earnings (loss) per
share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options
and stock-based awards, if dilutive.