NewHydrogen, Inc.

Previous wording

Currently, the most common method of making green hydrogen is to split water into oxygen and hydrogen with an electrolyzer using green electricity produced from solar or wind. However, green electricity is and always will be very expensive. It currently accounts for 73% of the cost of green hydrogen. By using heat directly, we can skip the expensive process of making electricity, and fundamentally lower the cost of green hydrogen. Inexpensive heat can be obtained from concentrated solar, geothermal, nuclear reactors and industrial waste heat for use in our novel low-cost thermochemical water splitting process. Working with a world class research team at UC Santa Barbara, our goal is to help usher in the green hydrogen economy that Goldman Sachs estimated to have a future market value of $12 trillion.

Current wording

Currently, the most common method of making green hydrogen is to split water into oxygen and hydrogen with an electrolyzer using green electricity produced from solar or wind. However, green electricity is and always will be very expensive. It currently accounts for 73% of the cost of green hydrogen. By using heat directly, we can skip the expensive process of making electricity, and fundamentally lower the cost of green hydrogen. Inexpensive heat can be obtained from concentrated solar, geothermal, nuclear reactors and industrial waste heat for use in our novel low-cost thermochemical water splitting process. Working with a world class research team at UC Santa Barbara, our goal is to help usher in the green hydrogen economy that Goldman Sachs (in a 2022 report) estimated to have a future market value of $12 trillion.

Previous wording

Management reviewed currently issued pronouncements during the nine months ended September 30, 2024, and does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed unaudited financial statements.

Current wording

Management reviewed currently issued pronouncements during the three months ended March 31, 2025, and does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed unaudited financial statements.

Previous wording

Selling and marketing (“S&M”) expenses increased by $52,210 to $228,739 for the nine months ended September 30, 2024, compared to $176,529 for the prior period ended September 30, 2023. The primary increase in (S&M) expenses was the result of an increase in marketing cost.

Current wording

Selling and marketing (“S&M”) expenses increased by $31,508 to $106,479 for the three months ended March 31, 2025, compared to $74,971 for the prior period ended March 31, 2024. The primary increase in (S&M) expenses was the result of an increase in service providers of $31,508.

Previous wording

General and administrative (“G&A”) expenses decreased by $48,247 to $266,491 for the three months ended September 30, 2024, compared to $314,738 for the prior period ended September 30, 2023. The primary decrease in G&A expenses was the result of a decrease in professional fees of $41,003, with an overall decrease in G&A expenses of $7,244.

Current wording

General and administrative (“G&A”) expenses decreased by $249 to $267,453 for the three months ended March 31, 2025, compared to $306,404 for the prior period ended March 31, 2024. The overall decrease in G&A expenses was the combination of all expenses.

Previous wording

Research and Development (“R&D”) expenses increased by $1,203 to $90,142 for the three months ended September 30, 2024, compared to $88,939 for the prior period ended September 30, 2023. This overall increase in R&D expenses was the result of an increase in outside research fees.

Current wording

Research and Development (“R&D”) expenses increased by $12,579 to $101,518 for the three months ended March 31, 2025, compared to $88,939 for the prior period ended March 31, 2024. This overall increase in R&D expenses was the result of an increase in outside research fees.

Previous wording

Depreciation and amortization expense for the three months ended September 30, 2024 and 2023 was $1,027 and $1,027, respectively.

Current wording

Depreciation and amortization expense for the three months ended March 31, 2025 and 2024 was $821 and $1,027, respectively.

Previous wording

Other income and (expenses) increased by $3,340 to $3,761 for the three months ended September 30, 2024, compared to $421 for the prior period ended September 30, 2023. The increase in other income and (expenses) was the result of an increase in interest income of $3,340. The increase in other income and (expenses) was primarily due to the net change in interest income.

Current wording

Other income and (expenses) decreased by $160 to $177 for the three months ended March 31, 2025, compared to $337 for the prior period ended March 31, 2024. The decrease in other income and (expenses) was the result of an increase in interest income of $160. The decrease in other income and (expenses) was primarily due to the net change in interest income.

Previous wording

Our net loss for the nine months ended September 30, 2024 was $1,347,183, compared to $2,8598,080 for the prior period ended September 30, 2023. The majority of the decrease in net loss was due to a decrease in non-cash expense associated with the net change in stock option expense in the current period. These estimates were based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility, variable conversion prices based on market prices as defined in the respective agreements and probabilities of certain outcomes based on management projections. These inputs were subject to significant changes from period to period and to management’s judgment; therefore, the estimated fair value of the stock options fluctuate, and the fluctuation may be material. The Company has not generated any revenues.

Current wording

Our net loss for the three months ended March 31,2025 was $476,094, compared to $471,004 for the prior period ended March 31,2024. The Company has not generated any revenues. The majority of the decrease in net loss was due to an overall decrease in operating expenses and non-cash expense associated with the net change in stock option expense in the current period. These estimates were based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility, variable conversion prices based on market prices as defined in the respective agreements and probabilities of certain outcomes based on management projections. These inputs were subject to significant changes from period to period and to management’s judgment; therefore, the estimated fair value of the stock options fluctuate, and the fluctuation may be material. The Company has not generated any revenues.

Previous wording

The unaudited condensed financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying unaudited condensed financial statements do not reflect any adjustments that might result if we are unable to continue as a going concern. During the nine months ended September 30, 2024, we did not generate any revenues, and recognized a net loss of $1,347,183, due to a decrease in non-cash stock compensation of $1,766,554, and cash of $1,189,145 used in operations. As of September 30, 2024, we had working capital of $2,509,114 and a shareholders’ deficit of $955,769.

Current wording

The unaudited condensed financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying unaudited condensed financial statements do not reflect any adjustments that might result if we are unable to continue as a going concern. During the three months ended March 31, 2025, we did not generate any revenues, and recognized a net loss of $476,094, due to a change in operating expenses and cash of $492,812 used in operations. As of March 31, 2025, we had working capital of $1,643,210 and a shareholders’ deficit of $1,784,321.

Previous wording

As of September 30, 2024, we had working capital of $2,509,114 compared to $3,678,942 for the year ended December 31, 2023. This decrease in working capital was due primarily to a decrease in cash.

Current wording

As of March 31, 2025, we had working capital of $1,643,210 compared to $2,118,257 for the year ended December 31, 2024. This decrease in working capital was due primarily to a decrease in cash.

Previous wording

During the nine months ended September 30, 2024, we used $1,189,145 of cash for operating activities, as compared to $790,889 for the prior period ended September 30, 2023. The increase in the use of cash for operating activities for the current period was a result of an increase in research and development cost, advertising and marketing, and salaries.

Current wording

During the three months ended March 31, 2025, we used $492,812 of cash for operating activities, as compared to $431,405 for the prior period ended March 31, 2024. The increase in the use of cash for operating activities for the current period was a result of an increase in research and development cost, and advertising and marketing.

Previous wording

Net cash provided from equity financing activities for the nine months ended September 30, 2024 and September 30, 2023 was $0. There was no equity financing during the current or prior period. Our capital needs have primarily been met from the proceeds of the sale of our securities, as we currently have not generated any revenues.

Current wording

Net cash provided from equity financing activities for the three months ended March 31, 2025 and March 31, 2024 was $0. There was no equity financing during the current or prior period. Our capital needs have primarily been met from the proceeds of the sale of our securities, as we currently have not generated any revenues.

Previous wording

We believe that our current cash and investment balances will be sufficient to support development activity and general and administrative expenses for the next twenty-four months. Management estimates that it will require additional cash resources during 2025, based upon its current operating plan and condition. We do not expect increased expenses until early 2026 when we ramp up prototyping efforts related to our thermochemical water splitting technology.

Current wording

We believe that our current cash and investment balances will be sufficient to support development activity and general and administrative expenses for the next nine months. Management estimates that it will require additional cash resources during 2025, based upon its current operating plan and condition. We do not expect increased expenses until early 2026 when we ramp up prototyping efforts related to our thermochemical water splitting technology.