Company: HYSR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001213900-25-011506
Chunk: 47

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 7
Chunk 47
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 required to be disclosed by us in reports that we file
or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Commission’s
rules and forms and (ii) accumulated and communicated to our management, including our CEO and Acting CFO, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our principal executive
officer and acting principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will
prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems,
no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To
address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our financial
statements included in this report have been prepared in accordance with generally accepted accounting principles. Accordingly, management
believes that the financial statements included in this report fairly present in all material respects our financial condition, results
of operations and cash flows for the periods presented.

As of December 31, 2024, due
to the inherent issue of segregation of duties in a small company, we have relied heavily on entity or management review controls and
engaged an outside financial consultant to lessen the issue of segregation of duties over accounting, financial close procedures and controls
over financial statement disclosure. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Changes in Internal Control Over Financial
Reporting

There was no change to our
internal control over financial reporting that occurred during our fiscal quarter ended December 31, 2024 that has materially affected,
or is reasonably likely to materially affect, our internal control over financial reporting.

18

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently a party
to, nor is any of our property currently the subject of, any material legal proceeding.

Item 1A. Risk Factors.

There are no material changes
from the risk factors previously disclosed in our annual report on Form 10-K filed with the SEC on September 30, 2024.

Item 2. Unregistered Sales