Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 967

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 10
Chunk 967
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 the event of early termination by the Company, the Company
will pay all costs accrued by the University as of the date of termination, including non-cancellable obligations. As of June 30, 2025,
there is a balance due of $38,821 per the agreement.

Effective June 1, 2025, the Company entered into
a research agreement with the University of Texas at Austin through June 30, 2026. As consideration under the research agreement, the
University of Texas at Austin will receive a maximum of $429,930 from the Company. In the event of early termination by the Company, the
Company will pay all costs accrued by the University as of the date of termination, including non-cancellable obligations. As of June
30, 2025, there is a balance due of $143,310 per the agreement.

The Company began renting lab space in February
2022. The lab rental is on a month-to-month basis and is cancellable with a thirty (30) day notice. On April 1, 2024, the Company renewed
the space needed for its lab work at a monthly rent of $6,400 per month. Due to the rental being month-to-month, ASC 842 lease accounting
is not applicable.

In the normal course of business, the Company
may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject
to many uncertainties, and outcomes are not predictable with assurance. In the opinion of management, the ultimate
disposition of these matters will not have a material adverse effect on the Company’s financial position or
results of operation.

F-17

    10.
    DEFERRED TAX BENEFIT  

 The Company
files income tax returns in the U.S. Federal jurisdiction, and the state of California. With few exceptions, the Company is no longer
subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2021. 

 Deferred
income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for tax purposes. To the extent allowed by GAAP, we provide valuation allowances against the deferred tax
assets for amount when the realization is uncertain. Included in the balance at June 30, 2025 and 2024, are no tax