Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 1147

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 14
Chunk 1147
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. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of enactment. 

Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. 

Net deferred tax liabilities consist of the following
components as of June 30, 2025 and 2024: 

    6/30/2025  
    6/30/2024 
  
    Deferred tax assets: 

    NOL carryover 
    $6,430,334  
    $5,314,015 
  
    Research and development 
     -  
     1,009,530 
  
    Related party accrual 
     -  
     9,625 
  
    Depreciation and amortization 
     11  
     - 
  
    Deferred tax liabilities: 

    Depreciation and amortization 
     -  
     (3,095)

    Less Valuation Allowance 
    $(6,430,345) 
    $(6,330,075)
  
    Income tax expense 
    $-  
    $- 

F-18

Due to the change in ownership provisions of the
Tax Reform Act of 1986, net operating loss carry-forward for Federal income tax reporting purposes are subject to annual limitations.
Should a change in ownership occur, net operating loss carry-forward may be limited as to use in future years. 

The Company’s tax returns for the previous
three years remain open for audit by the respective tax jurisdictions.

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 June 30, 2025 and June 30, 2024,