Company: HYSR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001213900-25-011506
Chunk: 45

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 7
Chunk 45
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partially offset by a realized loss on redemption of marketable securities in the prior year with no similar transactions in the current
year.

Net Loss

For
the six months ended December 31, 2024, our net loss was $5,517,900, compared to a net loss of $3,476,819 for the six months ended December
31, 2023. The increase in net loss of $2,041,081 was primarily due to an increase in the unrealized loss on the Company’s investment
in TECO (Equity securities, related party on the Condensed Balance Sheets) in the current period compared to the prior year. These equity
securities are measured at fair value on a recurring basis. In addition, the Company has not generated any revenues. 

16

Liquidity and Capital Resources

Liquidity is the ability of
a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing
basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts
payable and capital expenditures.

As of December 31, 2024, we
had working capital of $39,273,251, compared to $42,386,683 as of June 30, 2024. This decrease in working capital of $3,113,432 was primarily
due to a decrease in equity securities, related party.

Cash used in operating activities
was $1,568,936 for the six months ended December 31, 2024, compared to $948,952 for the six months ended December 31, 2023. The net increase
of $619,984 in cash used in operating activities was due to increases in the net loss, prepaid expenses, accounts payable, and decrease
in loss on redemption of marketable securities offset by an increase in unrealized loss in equity securities, related party. The Company
has had no revenues.

Cash used in investing activities
during the six months ended December 31, 2024 and December 31, 2023 was $0 and $2,000,000, respectively. The net decrease of $2,000,000
in cash used in investing activities was due to the purchase of certificate of deposits offset by the redemption of short-term investments
in corporate securities during the six months ended December 31, 2023 with no similar transactions in the six months ended December