Company: HYSR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001213900-25-041497
Chunk: 23

Company: SUNHYDROGEN, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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 30, 2025. As consideration under the research agreement, the
University of Michigan will receive a maximum of $252,246 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 March 31, 2025,
there is a balance due of $76,589 per the agreement.

13

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.

11.RELATED PARTY

Shareholders Loan

During the period ended December 31, 2022, the
Company entered into a $211,750 loan with the Company’s CEO for the repayment of accrued salary expense. The loan bore interest
of five percent (5%) and was to be repaid with monthly payments of $9,290, including interest and principal over a two-year period. As
of March 31, 2025 and June 30, 2024, the principal balance remaining on the loan was $0 and $45,829, respectively and interest paid during
the nine months ended March 31, 2025 and 2024 was $620 and $5,089, respectively.

Other Related Party Activity

See Note 7 for related party transactions with
respect to TECO 2030 A.S.A. and Newco.

12.SUBSEQUENT EVENTS

Management evaluated subsequent events as of the
date of the financial statements pursuant to ASC TOPIC 855 and had the following subsequent events to report.

On April 7, 2025, Woosuk Kim provided notice of
his resignation as Chief Operating Officer and Director of the Company