Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 660

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 7A
Chunk 660
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’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 
  
    Valuation Allowance 
     1,585,415  
     536,400 
  
    Income tax expense 
    $-  
    $- 

Deferred taxes are provided on a liability method,
whereby deferred tax assets are recognized for deductible differences and operating loss and tax credit carry-forward and deferred tax
liabilities are recognized for taxable temporary differences. Temporary differences are the difference between the reported amounts of
assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of enactment. 

Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. 

Net deferred tax liabilities consist of the following
components as of June 30, 2025 and