Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 85

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1A
Chunk 85
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we are unable to obtain additional financing, we may be unable to implement our business plan. Even with such financing, we have a history
of operating losses and there can be no assurance that we will ever become profitable.

We may be unable to manage our growth or
implement our expansion strategy.

We may not be able to develop
our product or implement the other features of our business strategy at the rate or to the extent presently planned. Our potential growth
will place a significant strain on our administrative, operational and financial resources. If we are unable to successfully manage our
future growth, establish and continue to upgrade our operating and financial control systems, recruit and hire necessary personnel or
effectively manage unexpected expansion difficulties, our financial condition and results of operations could be materially and adversely
affected.

We may not be able to successfully develop
and commercialize our technologies which would result in continued losses and may require us to curtail or cease operations.

We are currently working to
scale the lab-scale prototypes of our nanoparticle technology to larger, commercial-scale prototypes. However, we have not completed a
large-scale commercial prototype of our technology and are uncertain at this time when completion of a commercial scale prototype will
occur. We may be unable to commercialize our technology.

Our revenues will be dependent upon acceptance
of our products by the market, the failure of which would cause us to curtail or cease operations.

We believe that virtually
all of our revenues will come from the sale or license of our products. As a result, we will continue to incur substantial operating losses
until such time as we are able to develop our product and generate revenues from the sale or license of our products. There can be no
assurance that businesses and customers will adopt our technology and products, or that businesses and prospective customers will agree
to pay for or license our products. Even if we complete development of our technology and product, , it may not gain market acceptance
due to various factors such as not enough cost savings between our method of producing hydrogen and other more conventional methods. If
that occurs, our financial condition and results of operations will be materially and adversely affected.

12

We anticipate that we will face intense
competition, and many of our competitors have substantially greater resources than we do.

We operate in a competitive
environment that is characterized by price fluctuation and technological change. We anticipate that we will compete with major international
and domestic companies. Some of our current and future potential competitors may have greater market recognition and customer bases, longer