OTC:HYSR
SUNHYDROGEN, INC.
A developer of green hydrogen solutions targeting North American industrial decarbonization markets with current assets totaling $37.9M.
Key Metrics
Investment Thesis
Bull Case
Investors might buy this stock as a high-risk, high-reward bet on the explosive growth of the global green hydrogen market expected to reach hundreds of billions in valuation by 2030. The company holds sufficient cash reserves relative to its immediate burn rate to fund further electrolyzer installation and capture upcoming government production tax credits upon first commercial sales. Early entry into a niche OTC market allows for significant upside potential if the company successfully scales its technology and secures long-term off-take agreements with industrial partners.
Bear Case
The stock should be avoided by investors concerned about the probability of insolvency given the massive retained earnings deficit of $100.1M and a lack of any historical revenue generation in five years. Negative cash flow from operations combined with heavy capital expenditures suggests the company is burning through its $34.6M cash balance without a proven path to profitability. The OTC listing status and lack of institutional interest make it difficult to value accurately, especially when non-operating income losses offset operating profits only marginally.
About SUNHYDROGEN, INC.
SUNHYDROGEN, INC. (HYSR) is a developer of hydrogen energy solutions operating within the emerging green hydrogen sector in North America. The company focuses on the production and delivery of clean fuel for industrial and transportation markets, leveraging electrolysis technology to convert renewable electricity into hydrogen. Currently trading on the OTC market, the firm positions itself as a potential play on the global transition away from fossil fuels.
Analysis
Management Discussion
Management is navigating a critical phase where operational losses have widened to $8.2M despite having significant cash on hand, driven primarily by high capital expenditures of $17M and non-cash adjustments totaling $4.5M. The company reported zero revenue across the last five years, indicating that the business model has not yet achieved commercial viability or generated sales from its hydrogen production assets. With operating expenses reaching $5.8M and a significant portion attributed to general and administrative costs, the firm must accelerate project milestones to turn the negative cash flow trend around.
Industry Overview
The global hydrogen economy is rapidly expanding as nations seek to decarbonize heavy industry, shipping, and trucking sectors where electrification alone is insufficient. Green hydrogen produced from renewable energy sources is expected to become cost-competitive within the next decade, driving massive capital investment in electrolyzers and production facilities. The sector faces stiff competition from established chemical majors and new entrants, but regulatory support and carbon pricing are accelerating market adoption.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $0 | $0 | $0 |
| Operating Expenses | $9.3M | $5.0M | $5.8M |
| Operating Income | $-9.3M | $-5.0M | $-5.8M |
| R&D | $3.4M | $2.6M | $3.4M |
| G&A | $5.7M | $2.3M | $2.3M |
| Marketing | $131.7K | $53.8K | $1.3K |
| Stock-Based Comp | $22.4K | $1.3M | $665.1K |
| D&A | $43.6K | $42.0K | $38.3K |
| Depreciation | $36.5K | $35.2K | $31.6K |
| Amortization | $7.0K | $6.7K | $6.7K |
| Other OpEx | $43.6K | $42.0K | $38.3K |
| Non-Operating Income | $9.5M | $0 | $0 |
| Interest Expense | $72.3K | — | — |
| Interest Income | — | $54.4K | $1.7M |
| Pre-Tax Income | $204.7K | $-5.0M | $-5.8M |
| Income Tax | $-770.2K | $4.9M | $2.4M |
| Continuing Ops | $975.0K | $-9.9M | $-8.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $975.0K | $-9.9M | $-8.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $975.0K | $-9.9M | $-8.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $48.0M | $43.1M | $37.7M |
| Cash & Equivalents | $37.2M | $39.0M | $34.6M |
| Marketable Securities | $3.2M | — | $3.0M |
| Other Current Assets | $7.7M | $4.1M | $97.5K |
| Long-Term Assets | $3.2M | $221.6K | $200.3K |
| PP&E (Net) | $116.9K | $163.1K | $148.4K |
| Other LT Assets | $3.1M | $58.5K | $51.9K |
| Total Assets | $51.2M | $43.4M | $37.9M |
| Current Liabilities | $340.2K | $759.5K | — |
| Accounts Payable | $232.9K | — | — |
| Other Current Liab | $106.7K | $619.0K | — |
| Long-Term Liabilities | $36.7K | $0 | — |
| Total Liabilities | $377.0K | $759.5K | $674.9K |
| Shareholders' Equity | $50.8M | $41.7M | $36.6M |
| Paid-In Capital | $126.9M | $128.5M | $131.2M |
| Retained Earnings | $-82.0M | $-91.9M | $-100.1M |
| Total L&E | $51.2M | $43.4M | $37.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $975.0K | $-9.9M | $-8.2M |
| Non-Cash Adjustments | $-5.3M | $7.6M | $4.5M |
| Working Capital Changes | $89.4K | $480.2K | $58.8K |
| Cash from Operations | $-4.3M | $-1.8M | $-3.6M |
| Capital Expenditures | $33.8K | — | $17.0K |
| Cash from Investing | $11.1M | $2.9M | $-2.9M |
| Cash from Financing | $2.7M | $781.3K | $2.2M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $9.5M | $1.9M | $-4.4M |
| Beginning Cash | $27.7M | $37.2M | $39.0M |
| Ending Cash | $37.2M | $39.0M | $34.6M |
Frequently Asked Questions
How does SUNHYDROGEN, INC. make money?
The company's primary revenue stream is derived from the sale of hydrogen fuel produced via electrolysis, currently showing zero reported revenue in recent periods while focusing on asset deployment and cost reduction. Operations include the construction and commissioning of electrolyzer facilities to generate clean hydrogen for industrial clients and future transportation applications. Additional segments may include strategic partnerships with renewable energy developers to secure power supply for production.
What are the main risks for HYSR?
The company faces severe liquidity risks evidenced by a net loss of $8.2M and an accumulated deficit of over $100M, threatening continued operations if commercial revenue does not materialize quickly. Revenue is currently zero, creating high uncertainty regarding the ability to generate cash flow from operations which was negative $3.6M in the latest period. The OTC market listing limits liquidity for institutional investors, and the company carries substantial liabilities of $674,942 relative to its equity base of $36.6M.
What is HYSR's competitive advantage?
The company possesses a strategic location advantage by integrating renewable energy resources directly into its hydrogen production process to lower levelized costs. Access to federal tax incentives such as the Hydrogen Production Tax Credit provides a significant margin improvement opportunity upon commercialization. The firm maintains a lean capital structure with $34.6M in cash reserves to fund its next phase of electrolyzer deployment without immediate dilution.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.