Company: HYSR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001213900-25-041497
Chunk: 46

Company: SUNHYDROGEN, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 7
Chunk 46
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 the nano-level, we believe we have developed a low-cost method to potentially
produce environmentally friendly renewable hydrogen.

We
believe renewable hydrogen has already proven itself to be a key solution in helping the world meet climate targets, and we believe our
technology potentially offers solutions to the challenges that the hydrogen future presents, including cost of production and transportation.

Because
our process only requires sunlight and water, our technology can be installed near the point of hydrogen use. This eliminates the need
for pipelines and trucks that result in high carbon emissions and high capital investment. Additionally, because our process directly
uses the electrical charges created by sunlight to generate hydrogen, our nanoparticle technology does not rely on grid power or require
the costly power electronics that conventional electrolyzers do. Lastly, our planned scalable system configuration of many individual
hydrogen-generating panels ensures redundancy, security and stability.

With
a target cost of $2.50/kg., we aspire for our technology to be cost-competitive with brown hydrogen and below the cost of clean hydrogen
competitors. We believe our solution has the potential to clear a path for green hydrogen to compete with natural gas hydrogen and gain
mass market acceptance as a true replacement for fossil fuels.

Our
technology is primarily developed at three laboratories - our independent laboratory in Coralville, Iowa, the SunHydrogen laboratory at
the University of Iowa, and the Singh laboratory at University of Michigan.

Additionally,
in parallel to the ongoing development of our own technology, we may begin pursuing synergistic strategic investments in the hydrogen
space. SunHydrogen is committed to furthering renewable hydrogen technology to grow the hydrogen ecosystem, and we are actively pursuing
opportunities for investment and acquisition of complimentary hydrogen technologies.

15

Critical Accounting Policies

Our
discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been
prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial
statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses,
and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related
to impairment of property, plant and equipment, intangible assets, deferred tax assets and fair value computation using the Binomial valuation
option pricing model. We base our estimates on historical experience and on various other assumptions, such as the trading value of our
common stock and estimated future undiscounted cash flows, that we believe to