Company: HYSR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001213900-25-041497
Chunk: 14

Company: SUNHYDROGEN, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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 therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

8

We measure certain financial instruments at fair
value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows:

March 31, 2025

    Total  
    (Level 1)  
    (Level 2)  
    (Level 3) 
  
    Assets: 

    Equity securities, related party 
    $-  
    $-  
    $       -  
    $      - 
  
    Short-term investments 
     6,050,914  
     6,050,914  
     -  
     - 

    $6,050,914  
    $6,050,914  
    $-  
    $- 

June 30, 2024

    Total  
    (Level 1)  
    (Level 2)  
    (Level 3) 
  
    Assets: 

    Equity securities, related party (see Note 7) 
    $4,101,402  
    $       -  
    $4,101,402  
    $         - 

    $4,101,402  
    $-  
    $4,101,402  
    $- 

As of March 31, 2025, the Equity securities, related party had a fair
value of $0 which was measured using a level 3 input due to the underlying securities no longer trading on an active stock exchange (See
Note 7).

Research and Development 

Research and development costs are expensed as
incurred.  Total research and development costs were $2,369,119 and $1,945,910 for the nine months ended March 31, 2025 and 2024,
respectively.

Advertising and Marketing

Advertising and marketing cost are expensed as
incurred. Total advertising and marketing costs were $979 and $44,554 for the nine months ended March 31, 2025 and 2024, respectively.

Accounting for Derivatives 

The Company evaluates all of its financial instruments
to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments
that are accounted for