Last week was not very successful for HyperSolar Inc (OTC:HYSR). Apart from a few zero price changes and a 22.50% price fall, the 
stock closed the week with a loss. On Friday, HYSR lost 3.23% on the market, while its traded volume got 10 times higher as compared to the day before. Though, the reason for the loss cannot be found yet.
As HyperSolar has not released any news on its business lately, this might be a reasonable explanation on the price fall. However, it looks like the company is ready to break up the loss today.
Early in the morning, HYSR announced specific details of its development plan for its nanotechnology-based, zero-carbon process for the production of renewable hydrogen and natural gas. The company set the key milestones for this year and stated that it was planning to unveil the robust prototype by early 2013.
The positive news might certainly inspire investors, though the result is still to be seen.
HyperSolar is developing a breakthrough technology to produce renewable hydrogen and natural gas using sunlight, water and carbon dioxide. The company has recently entered into a yearlong sponsored research agreement with the University of California to help accelerate the development process and assure that its key milestones are reached.
Unfortunately, as of December 31, 2011 the financials of HYSR were not that promising. On the contrary, the company’s current liabilities were higher than its current assets, and the shareholders’ deficit turned into a negative value. At the same time, the net loss remained uncovered and the revenues kept missing, while the accumulated deficit during the development stage exceeded $2 million.[BANNER]
The financial statements of HyperSolar have been prepared under the assumption that the company will continue as a going concern from inception through December 31, last year. Nevertheless, the management believe their cash balance as of Feb 10, 2012 will fund their operations for the next three months as they develop a working prototype of HYSR technology.
However, the team claims that there may be unforeseen operational issues such as multiple rounds of design and redesign of the prototype that may exceed their current projected budget. If any of these happened, HyperSolar may seek to sell additional equity or debt securities or obtain a credit facility.
Though, the sale of additional equity securities could result in additional dilution to its stockholders, and the occurrence of indebtedness could result in operating and financing covenants that would restrict the company’s operations.
