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

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets.
Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost
of disposal.

When long-lived assets are sold or retired, the
related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss is included in the results
of operations. During the six months ended December 31, 2024 and 2023, the Company determined no impairment was required.

Net Earnings (Loss) per Share Calculations

Net earnings (Loss) per share dictates the calculation
of basic earnings (loss) per share and diluted earnings per share. Basic earnings (loss) per share are computed by dividing by the weighted
average number of common shares outstanding during the three and six months ended December 31, 2024 and 2023. Diluted net earnings (loss)
per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock
options and stock-based awards, if dilutive. 

The total potential common shares as of December
31, 2024, include 255,465,911 stock options, 78,095,239 common stock purchase warrants, and 700,105,263 common shares issuable upon conversion
of the outstanding 6,651 Series C Preferred shares. Stock options, common stock purchase warrants, and common shares issuable upon conversion
of Series C Preferred shares were not included in the calculation of net earnings per share because their impact on income per share is
antidilutive. 

The total potential common shares as of December
31, 2023, include 218,394,499 stock options, 86,495,239 common stock purchase warrants, and 931,684,211 common shares issuable upon conversion
of the outstanding 8,851 Series C Preferred shares. Stock options, common stock purchase warrants, and common shares issuable upon conversion
of Series C Preferred shares were not included in the calculation of net earnings per share because their impact on income per share is
antidilutive.

Stock Based Compensation

The Company accounts for stock option grants issued
and vesting to employees and non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board whereas
the value of the stock compensation is based upon the measurement date as determined at