Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 1103

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 13
Chunk 1103
---
 or
results of operation.

F-17

    10.
    DEFERRED TAX BENEFIT  

 The Company
files income tax returns in the U.S. Federal jurisdiction, and the state of California. With few exceptions, the Company is no longer
subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2021. 

 Deferred
income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for tax purposes. To the extent allowed by GAAP, we provide valuation allowances against the deferred tax
assets for amount when the realization is uncertain. Included in the balance at June 30, 2025 and 2024, are no tax positions for which
the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility.  Because
of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would
not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.  

 The Company’s
policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
During the year ended June 30, 2025 and 2024, the Company did not recognize interest or penalties. 

 At June
30, 2025, the Company had net operating loss carry-forward of approximately $30,620,639, which expires in future years. No tax benefit
has been reported in the June 30, 2025 and 2024 financial statements, since the potential tax benefit is offset by a valuation allowance
of the same amount. 

 The income
tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing
operations for the years ended June 30, 2025 and 2024 due to the following: 

    6/30/2025  
    6/30/2024 
  
    Book income (loss) 
    $(1,727,524) 
    $(2,075,055)
  
    Non-deductible expenses 
     143,419  
     1,535,200 
  
    Depreciation and amortization 
     (1,310) 
     3,455