SunHydrogen Inc (HYSR)

[Consiglieri]

Shareholders Deficit--No Problem in U.S. Securities

Valuations vary widely from shareholder equities.

I'm not aware of any state's corporate law that considers it a problem. You need to be measuring the "surplus" which is to be drawn from HyperSolar's market value -- Not the book value.

Nevada Corporations can pay dividends and borrow -- Even while they maintain negative s/h equity. If there is adequate "surplus" in valuation to meet minimum capital and other legal requirements -- No problem whatsoever.

SHAREHOLDERS' EQUITY is seen more as an accounting function that MAY, but DOES NOT ALWAYS track the actual value of a company.

For this reason HYPERSOLAR, INC. does not have many employees on record, and utilizes consultancy as their preferred option. EMPLOYEES require insurance, which can add to shareholders' negative equity.

Even companies with hundreds of millions in market capitalization have negative shareholder equity.

The fed established requirements that state's regulations use s/h equity as its measure of a corporations value -- and thus, satisfy ability to pay workers comp claims.