Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 564

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 7
Chunk 564
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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-term investments
$30,615, and a decrease in interest expense of $3,932 offset by a decrease in investment income of $276,558, a decrease in capital gain
on sale of vehicle of $55,166, and a decrease in realized gain on redemption of marketable securities of $35,080. 

Net Income (Loss) 

For the year ended June 30,
2025, our net loss was $8,226,307, compared to a net loss of $9,881,203 for the year ended June 30, 2024. The majority of the decrease
in net loss of $1,654,896, was related primarily to the decrease in other income (expenses) offset by the increase in operating expenses
as explained above.

Liquidity and Capital Resources

Liquidity is the ability of
a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing
basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts
payable and capital expenditures. 

As of June 30, 2025, we had
a working capital surplus of $37,048,679, compared to a working capital surplus of $42,386,683 as of June 30, 2024. This decrease in working
capital surplus of $5,338,004 was primarily due to a decrease