HyperSolar Inc (OTCMKTS:HYSR) Barely Avoids A Red Close
On June 30 HyperSolar Inc (OTCMKTS:HYSR) announced another major breakthrough in the development of their renewable hydrogen fuel technology. HYSR are trying to create a low cost technology to make renewable hydrogen using sunlight and any source of water. The company has now achieved a voltage of 1.4V bringing them one step closer to the goal of 1.5V, the practical voltage needed to effectively split water in commercial systems.
On the day of the announced the stock of the company soared up the chart closing the session with a gain of over 35% at $0.0265. During the trading day the ticker surged to an even higher price of $0.0344 but couldn’t support it. In the following sessions, however, the performance of the stock has been rather volatile. Yesterday only a last minute surge up the chart prevented the ticker from losing some of its gains.
HYSR’s technology may sound promising but the long development process has taken its toll on the company’s financials. The latest financial report covers the first quarter of the year and it paints a rather grim picture:
• $7,784 cash and total current assets!!!
• $45 924 total assets
• $11.1 million total current liabilities!
• ZERO revenues
• $1.7 million net loss
Compared to the same period last year nearly all of the numbers found on the balance sheet show signs of deterioration – the cash reserves are nearly non-existent while the working capital deficit has surpassed $11 million.
In order to fund their operations HYSR have been forced to rely on external sources of funds and in the world of pennystocks this means one thing – convertible debt. For the fiscal year ended June 30, 2014, more than 180 million shares saw the light of day priced at just $0.0025 each. Since then another 47.5 million shares have been issued but this time the per share price was even lower –$0.0017. At the end of March HYSR still had $560 thousand in outstanding convertible promissory notes.
For now the stock of company is trying to hold on to its gains. A last minute surge during yesterday’s session allowed the ticker to avoid incurring a loss and instead it closed 2% in the green at $0.0255. Will it manage to do so when the hype generated by the June 30 announcement is no longer there though? The company is trying to keep the market interested by regularly issuing new PRs, like the one from July 7, but most of the time they contain nothing more than fluff and have little to no effect on the movement of the stock.
