Company: HYSR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001213900-25-011506
Chunk: 21

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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 agreement and $40,091 per the prior amended research agreement for a total of $103,153.

The Company began renting lab space in February
2022. The lab rental is on a month-to-month basis and is cancellable with a thirty (30) day notice. On April 1, 2024, the Company renewed
the space needed for its lab work at a monthly rent of $6,400 per month. Due to the rental being month-to-month, ASC 842 lease accounting
is not applicable.

In the normal course of business, the Company
may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject
to many uncertainties, and outcomes are not predictable with assurance. In the opinion of management, the ultimate
disposition of these matters will not have a material adverse effect on the Company’s financial position or
results of operation.

11.RELATED PARTY

Shareholders Loan

During the period ended December 31, 2022, the
Company entered into a $211,750 loan with the Company’s CEO for the repayment of accrued salary expense. The loan bore interest
of five percent (5%) and was to be repaid with monthly payments of $9,290, including interest and principal over a two-year period. As
of December 31, 2024 and June 30, 2024, the principal balance remaining on the loan was $0 and $45,829, respectively and interest paid
during the six months ended December 31, 2024 and 2023 was $620 and $3,405, respectively.

Other Related Party Activity

See Note 7 for related party transactions with
respect to TECO 2030 A.S.A. and Newco.

12.SUBSEQUENT EVENTS

Management evaluated subsequent events as of the
date of the financial statements pursuant to ASC TOPIC 855 and had the following subsequent events to report.

13

Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations.

Cautionary Statement Regarding Forward-Looking
Statements

The information in this
report may contain forward-looking statements. These forward-looking statements involve risks and uncertainties, including statements
regarding our capital needs, business strategy and expectations. Any statements that are not of historical fact may be deemed to be forward-looking
statements. These forward-looking statements involve substantial risks and uncertainties. In some cases you