SunHydrogen, Inc. (HYSR) is a pre-revenue renewable hydrogen technology developer with no commercial product and negligible operating revenue ($1,250 for the nine months ended March 31, 2026). Under a liquidation lens, the recovery posture is modestly positive but structurally dependent on the fair value of liquid financial assets rather than any operational asset base. Total assets of $33.9M are dominated by cash and cash equivalents ($13.1M) and short-term investments ($19.8M, classified as Level 1 fair value), together representing approximately 97% of total assets at liquidation-comparable values. Applied haircuts: cash and T-bills at 100% yield approximately $13.1M; short-term investments (brokerage-held, Level 1) at 100% yield $19.8M; net PP&E of $122K at a 60% haircut yields approximately $74K; intangibles (patents net $47K, trademark net $0.1K) zero recovery; promissory note receivable of $371K at a conservative 80% haircut yields approximately $297K. Gross recoverable asset value is approximately $33.2M. Liabilities at face value are minimal: total liabilities of $725K including accounts payable and accrued liabilities of $654K and accrued liabilities of $71K. Series C Preferred Stock carried as mezzanine equity ($277K redemption value, 2,765 shares outstanding) has contractual liquidation preference senior to common; this reduces common equity recovery by $277K. Net estimated recovery to common equity is approximately $32.2M, consistent with reported book equity of $32.9M given the liquid asset-heavy balance sheet. The TECO 2030 ASA equity investment ($10.2M cost basis) was written to $0 following TECO's bankruptcy and delisting; the successor Newco (Bacchus AS) interest received at no cost is also carried at $0 due to no readily determinable fair value. This write-off was the dominant P&L driver in the prior fiscal year (nine months ended March 31, 2025 net loss of $7.3M vs. $4.6M current period). The primary deterioration quarter-over-quarter is cash burn: cash declined from $34.6M at June 30, 2025 to $13.1M at March 31, 2026, offset by a large increase in short-term investments ($3.0M to $19.8M) as the company rotated cash into brokerage instruments. Net operating cash burn was $3.9M for the nine months. Outstanding research commitments (University of Iowa $150K balance, University of Michigan $21K balance, University of Texas $287K balance, CTF Solar GmbH up to $2.0M through January 2028) are disclosed in MD&A but are not carried as balance sheet liabilities in XBRL; these contingent commitments aggregate up to approximately $2.5M and would reduce recovery to equity if the company wound down with agreements in force. The filing does not separately XBRL-tag the CTF Solar commitment or the aggregate research commitment liability on the balance sheet. Material weakness in internal controls (segregation of duties) is a persistent disclosure.
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