Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 700

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 8
Chunk 700
---
 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 as
total assets.

As the Company did not generate revenues in the
current fiscal year, the CODM assessed Company performance through the achievement of target identification goals. In addition to the
Company’s Statement of Operations, the CODM regularly works to develop budgeted and forecasted expense information which is used
to determine the Company’s liquidity needs and cash allocation.

F-11

Newly Issued and Recently Adopted Accounting
Pronouncements

In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements
primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after
December 15, 2023, and for interim period within fiscal year beginning after December 15, 2024. The Company adopted the ASU for the fiscal
year ended June 30, 2025. The amendment only impact disclosures and are not expected to have an impact on the Company’s financial
condition and results of operations.

In December 2023, the FASB issued ASU 2023-09, Income
Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the requirements for income tax disclosures in order to