Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 20

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1
Chunk 20
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 control, including:

    ●
    the ability of our competitors to hire, retain and motivate qualified personnel;

    ●
    the ownership by competitors of proprietary tools to customize systems to the needs of a particular customer;

    ●
    the price at which others offer comparable services and equipment;

    ●
    the extent of our competitors’ responsiveness to customer needs; and

    ●
    installation technology.

Currently, competing methods
of hydrogen production include steam reforming of natural gas or methane, which dominates due to its easy availability and low price;
partial oxidation of petroleum oil; steam gasification of coal; and electrolyzers powered by solar or wind energy. There can be no assurance
that we will be able to compete successfully against current and future competitors. If we are unable to compete effectively, or if competition
results in a deterioration of market conditions, our business and results of operations would be adversely affected.

Reductions in U.S. federal funding for renewable hydrogen projects
may slow industry growth and could adversely affect our long-term opportunities.

In 2025, the U.S. Department of Energy (DOE) reduced
certain funding allocations for renewable hydrogen development. While we currently have sufficient capital to carry on our operations
and advance our technology development, these changes may slow overall industry momentum in the United States by limiting the pace of
project development, infrastructure buildout, and adoption of hydrogen technologies. A slower rate of industry expansion could, in turn,
impact the timing and scale of potential commercial opportunities available to us in the U.S. market. Although we continue to pursue growth
through our own resources and potential partnerships, reduced government support could adversely affect the broader competitive landscape
and may negatively influence investor and customer interest in renewable hydrogen solutions.

 Our business depends on proprietary
technology that we may not be able to protect and may infringe on the intellectual property rights of others.

Our success will depend, in
part, on our technology’s commercial viability and on the strength of our intellectual property rights. We currently hold patents
in the US, China, Australia, and Europe but still have several patents pending in multiple countries.  There is no guarantee the
pending patents will be granted. In addition, any agreements we enter into with our employees, consultants, advisors, customers and strategic
partners will contain restrictions on the disclosure and use of trade secrets, inventions and confidential information relating to our
technology may not provide meaningful protection in the event of unauthorized use or disclosure.

Third parties may assert that
our technology,