Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 23

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1
Chunk 23
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 stockholders.

As of June 30, 2025, we have
outstanding shares of Series C Preferred Stock with an aggregate stated value of $665,100 that are convertible into common stock at a
fixed conversion price of $0.00095 (see Note 3 to the financial statements included in this report). We anticipate that our issuance of
common stock upon conversion of outstanding preferred shares will result in dilution to holders of our common stock, which may have a
negative effect on the price of our common stock. In addition, as of June 30, 2025, we have outstanding warrants to purchase 78,095,239
shares of common stock and options to purchase 428,965,911 shares of common stock, and our issuance of shares of common stock upon exercise
of outstanding warrants or options may result in additional dilution to our stockholders.

We have never paid common stock dividends
and have no plans to pay dividends in the future, as a result our common stock may be less valuable because a return on an investor’s
investment will only occur if our stock price appreciates.

Holders of shares of our common
stock are entitled to receive such dividends as may be declared by our Board of Directors. To date, we have paid no cash dividends on
our shares of common stock and we do not expect to pay cash dividends on our common stock in the foreseeable future. We intend to retain
future earnings, if any, to provide funds for operations of our business. Therefore, any return investors in our common stock will be
in the form of appreciation in the market value of our shares of common stock, which may not occur.

Our common stock is subject to the SEC’s
penny stock rules.

Unless our common stock is
listed on a national securities exchange, including the Nasdaq Capital Market, or we have stockholders’ equity of $5,000,000 or
less and our common stock has a market price per share of less than $5.00, transactions in our common stock will be subject to the SEC’s
“penny stock” rules. If our common stock remains subject to the “penny stock” rules promulgated under the Securities
Exchange Act of 1934, broker-dealers may find it difficult to effectuate customer transactions and trading activity in our securities
may be adversely affected.

In accordance with these rules,
broker-dealers participating in transactions in low-priced securities must first deliver a risk disclosure document that describes the
risks associated