Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 1035

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 12
Chunk 1035
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 is
a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the
audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially
challenging, subjective, or complex judgments. The communication of Management Override of Controls and Investments does not alter in
any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing
separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Investments

As discussed in Note 7 to the financial statements,
the Company has investments in a related party, consisting of equity securities. The investment is subject to fair value measurement,
with the equity securities marked to market in accordance with the applicable financial reporting standards. 

●The equity securities of the related party
are marked to market and the determination of fair value involves judgment and reliance on valuation techniques. 

●The investment in the related party requires
additional disclosure and evaluation of the relationship between the Company and the related party entity. We focused on the adequacy
of the related party disclosures, including the identification of the related party, the nature of the relationship, and any transactions
that occurred between the entities.

Addressing these matters required the application
of heightened professional skepticism in evaluating management's assumptions regarding the valuation of both the equity securities and
the conversion of the bonds.

/s/ M&K CPAS, PLLC

We have served as the Company’s auditor since 2020

The Woodlands, TX

September 12, 2025

F-2

SUNHYDROGEN, INC.

BALANCE SHEETS

    June 30,  
    June 30, 

    2025  
    2024 

    ASSETS 

    CURRENT ASSETS 

    Cash
    and cash equivalents 
    $34,628,625  
    $39,044,795 
  
    Prepaid
    expenses 
     72,313  
     - 
  
    Equity
    securities, related party 
     -  
     4,101,402 
  
    Interest
    receivable 
     25,223  
     - 
  
    Short-term
    investments 
     2,997,460  
     - 

    TOTAL
    CURRENT ASSETS