Company: HYSR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001213900-25-041497
Chunk: 12

Company: SUNHYDROGEN, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts.
In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets.
Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost
of disposal.

When long-lived assets are sold or retired, the
related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss is included in the results
of operations. During the nine months ended March 31, 2025 and 2024, the Company determined no impairment was required.

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 and nine months ended March 31, 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. 

The total potential common shares as of March
31, 2025, include 534,965,911 stock options, 78,095,239 common stock purchase warrants, and 700,105,263 common shares issuable upon conversion
of the outstanding 6,651 Series C Preferred shares. Stock options, common stock purchase warrants, and common shares issuable upon conversion
of Series C Preferred shares were not included in the calculation of net earnings per share because their impact on income per share is
antidilutive. 

7

The total potential common shares as of March
31, 2024, include 269,894,499 stock options, 86,495,239 common stock purchase warrants, and 931,684,211 common shares issuable upon conversion
of the outstanding 8,851 Series C Preferred shares. Stock options, common stock purchase warrants, and common shares issuable upon conversion
of Series C Preferred shares were not included in the calculation of net earnings per share because their impact on income per share is
antidilutive.

Stock Based Compensation

The Company