10-Q: NewHydrogen Reports Q3 2026 Results, Net Loss Widens

NewHydrogen, Inc. reported its third quarter 2026 financial results, showing a significant increase in net loss and continued absence of revenue, raising concerns about its going concern status.

Summary

• NewHydrogen, Inc. reported its financial results for the third quarter and first nine months ended September 30, 2026.
• The company experienced a net loss of $872,564 for the three months ended September 30, 2026, an increase from $482,096 in the same period of 2025.
• For the nine months ended September 30, 2026, the net loss was $2,613,382, up from $1,581,894 in the prior year period.
• The company generated no revenue in either period.
• Operating expenses increased across selling and marketing, general and administrative, and research and development categories.
• Cash used in operating activities was $1,963,639 for the nine months ended September 30, 2026, compared to $1,413,695 for the same period in 2025.
• As of September 30, 2026, the company had $301,508 in cash and cash equivalents, a decrease from $1,436,928 at December 31, 2025.
• The company has an accumulated deficit of $183,402,872 and a stockholders deficit of $3,254,818, raising substantial doubt about its ability to continue as a going concern.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant increase in net loss, continued lack of revenue, and substantial doubt about the company's ability to continue as a going concern, despite ongoing financing efforts.

Positives

• The company secured $828,827 in cash from financing activities during the nine months ended September 30, 2026, primarily through its equity financing agreement.
• Deferred offering costs were $16,476 as of September 30, 2026, indicating progress in utilizing financing facilities.
• The company entered into a Securities Purchase Agreement on October 23, 2026, closing on October 26, 2026, to issue and sell shares and warrants for approximately $3 million, intended for general corporate purposes including working capital.

Negatives

• The company reported no revenue for the three and nine months ended September 30, 2026.
• Net loss increased significantly to $872,564 for Q3 2026 from $482,096 in Q3 2025, and to $2,613,382 for the nine months ended September 30, 2026, from $1,581,894 in the prior year.
• Operating expenses increased across all categories, with R&D expenses more than tripling year-over-year for the nine-month period.
• Cash and cash equivalents decreased substantially from $1,436,928 at the end of 2025 to $301,508 at September 30, 2026.
• The company has an accumulated deficit of $183,402,872 and a stockholders deficit of $3,254,818.
• Substantial doubt exists regarding the company's ability to continue as a going concern within one year.
• The company's working capital decreased from $1,433,163 at December 31, 2025, to $177,028 at September 30, 2026.

Risks

• Substantial doubt exists about the Company's ability to continue as a going concern within one year after the date these financial statements are issued, due to accumulated deficit, net losses, and cash used in operations.
• The Company is significantly dependent on its ability to secure additional equity and/or debt financing, with no assurances of success.
• Future financing may contain undue restrictions on operations or cause substantial dilution to stockholders.
• The company's technology development is ongoing, and commercialization efforts are not expected to ramp up until Q4 2027.
• The company's reliance on research agreements and consultant costs for R&D activities carries inherent risks related to project success and cost management.
• The company's stock price volatility and variable conversion prices in financing agreements can lead to material fluctuations in stock compensation expense.
• The company has not generated significant revenue to date, and its ability to achieve profitable operations is uncertain.

Future Outlook

Management estimates that it will require additional cash resources during Q4 2027 to ramp up commercialization efforts related to its thermochemical water splitting technology. The company believes its current cash and investment balances will be sufficient to support development activity and general and administrative expenses for the next twelve months.

Management Comments

• "We are a developer of clean energy technologies. Our current focus is on developing a clean hydrogen production technology that uses water and heat rather than electricity to potentially produce the worlds cheapest clean hydrogen."
• "By using heat directly, we can skip the expensive process of making electricity, and fundamentally lower the cost of clean hydrogen."
• "Management believes that we will be able to continue to raise funds through the sale of our securities to existing and new investors, including through the use of its equity financing agreement entered into with GHS."
• "Management believes that funding from existing and prospective new investors and future revenue will provide the additional cash needed to meet our obligations as they become due and will allow the development of our core business operations."

Industry Context

StockSavvy.ai notes that NewHydrogen's focus on clean hydrogen production using thermochemical water splitting aligns with the growing global demand for sustainable energy solutions. The company's strategy to bypass electricity-intensive electrolysis, which is a significant cost driver, is a potentially disruptive approach. However, the industry is highly competitive, with significant investment in various hydrogen production technologies, and success hinges on technological breakthroughs and cost-effectiveness.

Comparison to Industry Standards

• The company's goal to produce the world's cheapest clean hydrogen is ambitious, especially considering the current market where electrolyzer-based green hydrogen production costs are heavily influenced by electricity prices (cited as 73% of cost).
• Goldman Sachs estimated the future market value of the clean hydrogen economy at $12 trillion in 2022, indicating significant market potential if technological hurdles are overcome.
• The company's R&D expenses for the nine months ended September 30, 2026, were $1,033,604, which is substantial for a company with no revenue but reflects the capital-intensive nature of developing novel energy technologies.
• The lack of revenue and significant net losses are common in early-stage technology development companies, but the company's ability to secure ongoing financing is critical for survival and progress, unlike more established players in the energy sector.

Legal Proceedings

• As of September 30, 2026, there were no legal proceedings against the Company.

Stakeholder Impact

• Shareholders may experience significant dilution if further equity financing is pursued.
• The company's ability to continue operations impacts employees and potential future revenue streams for suppliers and creditors.
• The ongoing need for capital raises and the associated dilution risk are key concerns for shareholders.

Next Steps

• Utilize cash balances and additional cash investment received during Q4 2026 to maintain the existing ThermoLoop technology development program at UCSB.
• Continue to seek additional equity and/or debt financing.
• Ramp up commercialization efforts related to its thermochemical water splitting technology in Q4 2027.
• The company intends to use the net proceeds from the October 2026 purchase agreement for general corporate purposes, including working capital.

Key Dates

Recommendation

The company continues to operate without revenue, with a widening net loss and significant cash burn. The substantial doubt about its going concern status, coupled with the increasing operating expenses and reliance on continuous, dilutive financing, presents a high-risk investment profile. While the technology is promising, the path to profitability and sustainable operations remains highly uncertain.

Keywords

clean hydrogen, thermochemical water splitting, energy technology, research and development, equity financing, going concern, net loss, operating expenses