Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 1132

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 14
Chunk 1132
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 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. 

Year Ended June 30, 2024

The total potential common shares as of June,
2024, include 266,894,499 stock options, 78,095,239 common stock purchase warrants, and 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.

F-9

Stock Based Compensation

The Company accounts for stock option grants issued
and vesting to employees and non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board whereas
the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment
is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based
compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are
no future performance requirements by the non-employee, option grants are immediately vested, and the total stock-based compensation charge
is recorded in the period of the measurement date.

Warrant Accounting 

The Company accounts for warrants to purchase
shares of common stock using the estimated fair value on the date of issuance as calculated using the Black-Scholes valuation model.

Fair Value of Financial Instruments

Fair value of financial instruments requires disclosure
of the fair value information, whether or not recognized on the balance sheet, where it is practicable to estimate that value. As of June
30, 2025, the amounts reported for cash, accounts payable and other payables, and accrued expenses approximate the fair value because
of their short maturities.

We adopted ASC Topic 820 for financial instruments
measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance
with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

Fair value is defined as the price that would
be received