This is Auricularia heimuer which is Basidiomycota. you can see that fruitbodies are gelatinous, ear-shaped, and laterally attached to wood. It is commercially cultivated for food in China.This species exists as a network of fungal cells (mycelium) within rotting wood. The mycelium obtains nourishment by digesting, and rotting, the wood. When ready to reproduce, the mycelium develops the "fruiting body" outside the wood, which is the reproductive structure. Spores are produced on the underside surfaces of the "ears"; they are released to begin new mycelia elsewhere.

Nice sharing.

From my understanding, the spores are produced on the upper surface of the ears.