Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 86

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1A
Chunk 86
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operating histories and substantially greater financial, technical, marketing, distribution, purchasing, manufacturing, personnel and
other resources than we do. In addition, competitors may be developing similar technologies with a cost similar to, or lower than, our
projected costs. As a result, they may be able to respond more quickly to changing customer demands or to devote greater resources to
the development, promotion and sales of solar and solar-related products than we can.

Our business plan relies on
sales of our products based on either a demand for truly renewable clean hydrogen or economically produced clean hydrogen. If we fail
to compete successfully, our business would suffer and we may lose or be unable to gain market share. Neither the demand for our product
nor our ability to manufacture at commercial scale have yet been proven.

Because our industry is highly competitive
and has low barriers to entry, we may lose market share to larger companies that are better equipped to weather a deterioration in market
conditions due to increased competition.

We believe that our ability
to compete depends in part on a number of factors outside of our 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