Company: HYSR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108125
Chunk: 13

Company: SUNHYDROGEN, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 13
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 develop budgeted and forecasted expense information which is used to determine the Company’s
liquidity needs and cash allocation.

Recently Issued Accounting Pronouncements

Management believes that no recently issued accounting
standards, which are not yet effective, would have a material impact on the accompanying unaudited financial statements as of September
30, 2025, if adopted at this time.

Reclassification

Certain accounts from prior periods have been reclassified to conform
to the current period presentation.

10

3.PREFERRED STOCK

Series C Preferred Stock

On December 15, 2021, the Company filed a certificate
of designation of Series C Preferred Stock with the Secretary of State of Nevada, designating 17,000 shares of preferred stock as Series
C Preferred Stock. Each share of Series C Preferred Stock has a stated value of $100 and is convertible into shares of common stock of
the Company at a conversion price equal to $0.00095. The Series C Preferred Stockholders are entitled to receive out of any funds and
assets of the Company legally available prior and in preference to any declaration or payment of any dividend on the common stock of the
Company, cumulative dividends, at an annual rate of 10% of the stated value, payable in cash or shares of common stock. In the event the
Company declares or pays a dividend on its shares of common stock (other than dividend payable in shares of common stock), the holders
of Series C Preferred Stock will also be entitled to receive payment of such dividend on an as-converted basis. The Series C Preferred
Stock confers no voting rights on holders, except with respect to matters that materially and adversely affect the voting powers, rights
or preferences of the Series C Preferred Stock or as otherwise required by applicable law. Upon liquidation, dissolution and winding up
of the Company, the holder of each outstanding share of Series C Preferred Stock shall be entitled to receive, out of the assets of the
Company available for distribution to its shareholders upon such liquidation, before any payments shall be made or any assets distributed
to the holders of the common stock, the stated value of the Series C Preferred Shares plus any declared but unpaid dividends. No other
current or future equity holders of the Company shall have higher priority of liquidation preference than holders of Series C Preferred
Stock.

The Series C Preferred Stock is presented as mezzanine
equity because it is redeemable at a fixed or determinable amount upon an event that is outside of the Company’s control.

During