Company: HYSR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001213900-25-011506
Chunk: 8

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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 considered necessary for a fair presentation have been included. Operating results for the
three and six months ended December 31, 2024 are not necessarily indicative of the results that may be expected for the year ended June
30, 2025. 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, 2024.

Cash and Cash Equivalent 

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.

    December 31, 
2024  
     June
30,
 2024 
  
    Cash 
    $29,630,222  
    $29,365,997 
  
    U.S. Treasury bills 
     10,001,733  
     9,678,798 
  
    Total cash and cash equivalents 
    $39,631,955  
    $39,044,795 

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

5

Concentration risk

Cash includes amounts deposited in financial institutions
in excess of insurable Federal Deposit Insurance Company (FDIC) limits. At times throughout the year, the Company may maintain cash balances
in certain bank accounts in excess of the FDIC limits. As of December 31, 2024, the cash balance in excess of the FDIC limits was $37,834,640.
The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk in these accounts.

Use of Estimates

In accordance with accounting
principles generally accepted in the United States, management utilizes estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates
and assumptions relate to useful lives and impairment of tangible and intangible assets, accruals, income taxes, stock-based compensation
expense, fair value of financial instruments, and other factors. Management believes it has exercised reasonable judgment in deriving
these estimates. Consequently, a change in conditions could affect these estimates. 

Property and Equipment

Property and equipment
are stated at cost and are depreciated using straight line over their estimated useful lives.

  Computers and peripheral equipment