Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 154

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1B
Chunk 154
---
 Additionally, because our process directly
uses the electrical charges created by sunlight to generate hydrogen, our nanoparticle technology does not rely on grid power or require
the costly power electronics that conventional electrolyzers do. Lastly, our planned scalable system configuration of many individual
hydrogen-generating panels ensures redundancy, security and stability.

 With
a target cost of $2.50/kg., we aspire for our technology to be cost-competitive with brown hydrogen and below the cost of clean hydrogen
competitors. We believe our solution has the potential to clear a path for renewable hydrogen to compete with natural gas hydrogen and
gain mass market acceptance as a true replacement for fossil fuels.

 Our
technology is primarily developed at three laboratories - our independent laboratory in Coralville, Iowa, the SunHydrogen laboratory at
the University of Iowa, and the Singh laboratory at University of Michigan. 

 Additionally,
in parallel to the ongoing development of our own technology, we may begin pursuing synergistic strategic investments in the hydrogen
space. SunHydrogen is committed to furthering renewable hydrogen technology to grow the hydrogen ecosystem, and we are actively pursuing
opportunities for investment and acquisition of complimentary hydrogen technologies. 

Results of Operations for the Year Ended June
30, 2025 compared to the Year Ended June 30, 2024

Operating Expenses

For the year ended June 30, 2025, operating expenses
were $5,816,192 compared to $5,001,300, for the year ended June 30, 2024. Operating expenses consist primarily of research and development
expenses and general and administrative expenses incurred in connection with the operation of our business. The increase of $814,892 in
operating expenses was primarily due to an increase in salary expenses and an increase in research and development costs offset by a decrease
in professional fees.  

18

Other Income/(Expenses) 

Other income and (expenses) for the year ended
June 30, 2025, were $(2,410,115) compared to $(4,879,903) for the year ended June 30, 2024. The net increase of $2,469,788 in other income
and (expenses) was the result of a decrease in dividend expense of $37,506, a decrease in unrealized loss on related party equity investments
of $2,592,099, a decrease in realized loss of $172,440, an increase in unrealized loss on change in fair value of short