Company: HYSR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001213900-25-011506
Chunk: 46

Company: SUNHYDROGEN, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 7
Chunk 46
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31,
2024.

Cash provided by financing
activities during the six months ended December 31, 2024 and December 31, 2023 was $2,156,096 and $484,617, respectively. The net increase
of $1,671,479 in cash provided by financing activities was due to increased proceeds from a Purchase Agreement entered with an investor
for the sale of up to $45,000,000 of common stock.

Our
ability to continue as a going concern is dependent upon raising capital through financing transactions and future revenue. Our capital
needs have primarily been met from the proceeds of private placements and registered offerings of our securities, as we have not generated
any revenues to date.

We
have historically obtained funding from investors, through private placements and registered offerings of equity and debt securities.
Management believes that the Company will be able to continue to raise funds through the sale of its securities to its existing shareholders
and prospective new investors, which will provide the additional cash needed to meet the Company’s obligations as they become due
and will allow the Company to continue to develop its core business. There can be no assurance that we will be able to continue raising
the required capital for our operations on terms and conditions that are acceptable to us, or at all. If we are unable to obtain sufficient
funds, we may be forced to curtail and/or cease our operation.

Off-Balance Sheet Arrangements

We do not have any off-balance
sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, result
of operations, liquidity or capital expenditures.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk.

Not required for smaller reporting
companies.

17

Item 4. Controls and Procedures. 

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our
CEO and our Acting CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e)
of the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our CEO and our Acting CFO concluded
that, due to the material weakness described below, our disclosure controls and procedures as of the end of the period covered by this
report were not effective to ensure that information required to be disclosed is made known to management and others, as appropriate,
to allow timely decision regarding required disclosure and that the information