HyperSolar Inc (OTCMKTS:HYSR) had been relatively stable for all of last year, but recent announcements in the past few week, especially pertaining to the success of its new device for separating hydrogen from water to create a pure and renewable source of energy. This positive news has seen the stock rise by over 250% within weeks from $0.005 to $0.018.
In this piece, we provide details of the company, the story behind its innovation and the possible outlook for the future. Take a look at the stock’s price movement over the past year:
HyperSolar Inc. was established in February 2009 and its head office is located in Santa Barbara, California. The firm specializes in developing and marketing solar concentrator technologies and currently produces original solar-powered nanoparticle systems which imitate photosynthesis in order to separate hydrogen from water. The firm also plans for the technology of this system to be accredited for the production of renewable hydrogen in order to produce renewable electricity and hydrogen for fuel cells.
In other words, the company is developing an innovative, low-cost system which can be used to develop renewable hydrogen using sunlight and any water source which includes wastewater and seawater. This is driven by the need for environmentally friendly hydrogen fuel which releases pure water as the only byproduct unlike the hydrocarbon fuels, such as natural gas, coal, and oil which release environmental contaminants such as carbon dioxide into the atmosphere whenever they are used. Through the nano-level optimization of the water electrolysis process, the firm’s low-cost nanoparticles imitate photosynthesis so as to use sunlight efficiently for the separation of hydrogen from water and to produce environmentally friendly renewable hydrogen.
Very recently, Hypersolar Inc. announced that it had successfully utilized its novel three-dimensional oxygen catalyst in a fully unified hydrogen production device which works by utilizing amorphous silicon solar cells with triple junctions that are already available triple junction. The setup of this device will function as the basis of the firm’s initial generation marketable renewable hydrogen generator.
In February, the company had reported that its original oxygen evolution catalyst which is inexpensive remained stable under alkaline water for as long as a hundred and ninety hours for the standalone catalyst-level testing. Since that time, its team has used this catalyst on the exterior of submersed solar cells within the firm’s hydrogen generator design. The original outcome clearly points at long hours of stability even at the device level along with good hydrogen production.
The test was the firm’s first attempt at testing its novel oxygen catalyst within a completely unified hydrogen production device. The firm is currently in the process of assessing the level of stability of the device over a period of one thousand hours, along with the evaluating of the full performance over time. The firm expects to complete this testing phase by the end of March 2018 and commence the analysis and publishing of data not long after.
As observed, Hypersolar currently engages in the increment of long-term stability, which remains highly important for market adoption. As a result of the reduced pricing of solar cells, most hydrogen developers have tried to utilize them in solar hydrogen systems, but have remained largely unsuccessful in attaining long-term stability for single water-splitting devices that are solar powered. As attained from research and feedback, the firm believes that the outcome of the test with the cells remains very significant.
For 2017, there were no revenues recorded, a trend which has continued from as far back as 2014. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.
In the same period, research and development costs jumped from $12,000 from $0.14 million an indicator that the firm may have increased its investment in innovation and production. As there was no operating income, operating loss for the year was recorded at $0.6 million. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.
Interestingly, due to income from additional continuing operations, net profit for the year was a whopping $2.2 million, a drop from the prior year net income of $6.0 million but impressive considering the lack of normal revenues.
The statement of financial position reveals that the firm is very highly geared. On its books, its total debt is worth $4.4 million, leading to a high debt-to-equity ratio. Worryingly, it also has a very low liquidity ratio of 0.03
The new technology from HYSR is expected to be a game changer and will like arouse increased interest in the company.
Disclosure: We have no position in HYSR and have not been compensated for this article.