Company: HYSR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108125
Chunk: 6

Company: SUNHYDROGEN, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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 we are developing
a new methodology that utilizes commercially available, mass-produced thin-film solar cells and modules, which are re-engineered with
our proprietary hydrogen module design to enhance fault tolerance and increase hydrogen production efficiency. While this approach is
based on principles similar to our nanoparticle technology, it leverages a mature manufacturing platform, enabling a potentially faster
market entry.

The Company remains committed
to our patented nanoparticle-based approach to renewable hydrogen production. However, this new methodology, which aligns closely with
our nanoparticle technology, benefits from an established manufacturing base. Our core mission remains the replacement of fossil fuel-derived
hydrogen with renewable hydrogen.

2.SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

Basis of Presentation

The accompanying unaudited condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulations S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of
management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the
three months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ended June 30, 2026.
For further information refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year
ended June 30, 2025.

Cash and Cash Equivalents

The Company considers all highly liquid investments
with an original maturity of three months or less to be cash equivalents.

The following table provides detail of our cash
and cash equivalents.

    September 30,  2025  
    June 30,  2025 
  
    Cash 
    $25,839,194  
    $27,993,513 
  
    U.S. Treasury bills 
     7,625,965  
     6,635,112 
  
    Total cash and cash equivalents 
    $33,465,159  
    $34,628,625 

The U.S. Treasury bills have a credit quality
indicator of AA/A.

5

Short Term Investments

The Company’s short-term investments are
carried at fair value with changes in fair value recognized in net income.

The following table provides detail of our short-term