Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 1091

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 13
Chunk 1091
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    $-  
    $4,101,402  
    $- 

    $4,101,402  
    $-  
    $4,101,402  
    $- 

As of June 30, 2025, the Equity securities, related party had a fair
value of $0 which was measured using a level 3 input due to the underlying securities no longer trading on an active stock exchange (See
Note 7).

Research and Development 

Research and development costs are expensed as
incurred.  Total research and development costs were $3,440,296 and $2,568,562 for the year ended June 30, 2025 and 2024, respectively.

Advertising and Marketing

Advertising and marketing cost are expensed as
incurred. Total advertising and marketing costs were $1,313 and $53,831 for the year ended June 30, 2025 and 2024, respectively.

Accounting for Derivatives 

The Company evaluates all of its financial instruments
to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each
reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments,
the Company uses a probability weighted average series Binomial lattice formula pricing models to value the derivative instruments at
inception and on subsequent valuation dates.

The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative
instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the
derivative instrument could be required within 12 months of the balance sheet date.

Segment Reporting

The Company operates as a single operating segment,
focusing on the development of an efficient and cost-effective way to produce renewable hydrogen using sunlight and any source of water.

The accounting policies of the operating segment
are the same as those described in the summary of significant accounting policies. The Company’s chief operating decision maker
(“CODM”) in the Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources
based on net income (loss) that is reported on the income statement. The measure of segment assets is reported on the balance sheet