SunHydrogen Reports Increased Net Loss of $5.5 Million for Six Months Ending December 31, 2024

SunHydrogen, Inc. reported its financial results for the six months ending December 31, 2024, revealing a net loss of $5.5 million, an increase from a loss of $3.5 million during the same period in 2023. The company did not generate any revenue in either period. Operating expenses for the first half of the fiscal year totaled $2.3 million, slightly higher than the $2.3 million reported in the previous year. The increase in net loss was primarily attributed to a larger unrealized loss on the company's investment in TECO 2030 ASA, which filed for bankruptcy in December 2024, leading to a fair value of $0 for the investment as of December 31, 2024.

In terms of cash flow, SunHydrogen utilized $1.6 million in operating activities during the first half of the fiscal year, compared to $949,000 in the prior year. The increase in cash used was driven by higher net losses and changes in working capital, including prepaid expenses and accounts payable. The company reported cash provided by financing activities of $2.2 million, a significant increase from $485,000 in the previous year, primarily due to proceeds from a common stock purchase agreement. As of December 31, 2024, the company had cash and cash equivalents of approximately $39.6 million, a slight increase from $39 million at the end of June 2024.

SunHydrogen's balance sheet showed total assets of $40 million, down from $43.4 million at the end of June 2024. Current assets decreased primarily due to the write-down of equity securities related to TECO. The company's liabilities also decreased to $523,000 from $759,000, reflecting a reduction in accounts payable and accrued expenses. Shareholders' equity stood at $38.8 million, down from $41.7 million, largely due to the accumulated deficit increasing to $97.4 million.

Strategically, SunHydrogen is focused on developing its solar-powered nanoparticle technology for hydrogen production, which aims to provide a cost-effective and renewable alternative to traditional hydrogen production methods. The company has extended its research agreements with the University of Iowa and the University of Michigan, which will continue through September 2025. Additionally, SunHydrogen is exploring synergistic investments in the hydrogen sector to enhance its technology and market position.

Looking ahead, SunHydrogen's management emphasized the need for continued capital raising to support its operations and technology development. The company remains optimistic about its potential to contribute to the renewable hydrogen market, despite the challenges posed by recent financial setbacks. The outlook will depend on the company's ability to secure funding and advance its technology in a competitive landscape.