Company: HYSR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108125
Chunk: 20

Company: SUNHYDROGEN, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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,320 under the agreement.

Effective June 1, 2025, the Company entered into
a research agreement with the University of Texas at Austin through June 30, 2026. As consideration under the research agreement, the
University of Texas at Austin will receive a maximum of $429,930 from the Company. In the event of early termination by the Company, the
Company will pay all costs accrued by the University as of the date of termination, including non-cancellable obligations. As of September
30, 2025, we owed the University of Texas $286,620 under the agreement.

14

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, 2025, the Company renewed
the space needed for its lab work at a monthly rent of $7,900 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.

10.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%) per year, and payments were due monthly in the amount of $9,290, including interest and principal over a two-year
period. As of September 30, 2025 and June 30, 2025, the principal balance remaining on the loan was $0, respectively and interest paid
during the three months ended September 30, 2025 and 2024 was $0 and $536, respectively.

Other Related Party Activity

During the three months ended September 30, 2025,
the Company had accounts receivable and service income of $1,250, respectively with a related party for consulting services.

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

11.SUBSEQUENT EVENTS

Management evaluated subsequent events as of the
date of