Key Risks to Hyperion DeFi (HYPD)

1. Exposure to Cryptocurrency Market Volatility and HYPE Token Performance: Hyperion DeFi's core business strategy involves building a strategic treasury of HYPE, the native token of the Hyperliquid blockchain, and deriving revenue from its deployment in the Hyperliquid ecosystem. The company's financial performance and shareholder value are significantly tied to the volatile cryptocurrency market and the specific performance and adoption of the HYPE token and the Hyperliquid network. Cryptocurrency prices are highly susceptible to external factors, including financial, regulatory, or political events, and trading in such instruments involves inherent high risks, including the potential loss of the entire investment. The company faces concentration risk due to its significant HYPE treasury position and its revenue exposure being linked directly to the health and adoption of the Hyperliquid ecosystem.
2. Weak Financial Health and Negative Profitability: Hyperion DeFi exhibits signs of financial distress, as indicated by a Z-Score in the distress zone and a Beneish M-Score suggesting potential financial manipulation. The company has experienced negative revenue growth, with a three-year decline of 88.3%, and its profitability metrics are concerning, showing a net margin of -7371.1% and an operating margin of -6442.78%. While the company reported record net income in Q3 2025, these broader financial health indicators point to significant underlying challenges that could impact its long-term viability.
3. Regulatory Uncertainty in the Decentralized Finance (DeFi) Sector: Operating within the decentralized finance space, Hyperion DeFi is exposed to an evolving and often uncertain regulatory landscape. The company positions itself as a bridge between traditional finance and emerging DeFi platforms, which necessitates navigating complex and potentially changing regulations for digital assets and blockchain-based financial services. Regulatory changes or increased scrutiny could significantly impact the company's business model, operations, and the overall Hyperliquid ecosystem on which its strategy is based.

For Eyenovia, Inc., a clinical stage ophthalmic company, the addressable markets for its main products are as follows:

MicroLine (Presbyopia)

• The global myopia and presbyopia treatment market was valued at approximately $21.8 billion in 2025 and is projected to reach $45.4 billion by 2033.
• The addressable market in the U.S. for topical ophthalmic medications for presbyopia is estimated at nearly $1 billion.
• The presbyopia therapeutics market size across the 7 Major Markets (7MM), which includes the United States, EU4 countries (Germany, France, Italy, and Spain), the United Kingdom, and Japan, was approximately $17 billion in 2023.

MicroPine (Pediatric Myopia Progression)

• The U.S. pediatric progressive myopia market has been estimated by third-party experts to be $1.8 billion annually.
• The global myopia treatment market was valued at approximately $18 billion in 2023 and is projected to reach $41 billion by 2032.

MydCombi (Pharmaceutical Mydriasis)

• The market for MydCombi in the United States alone is believed to exceed $250 million.
• The 7 Major Markets (7MM) for mydriasis, which include the United States, EU5 (Germany, France, Italy, Spain, and the United Kingdom), and Japan, reached a value of $641.5 million in 2024 and are expected to reach $1,230.5 million by 2035.
• The total mydriasis market size in the U.S. was approximately $378.6 million in 2023.

1. Yield Generation from HYPE Token Staking: Hyperion DeFi is building a strategic treasury of HYPE, the native token of the Hyperliquid protocol, and has begun staking these holdings to generate yield. This direct revenue stream from its cryptocurrency assets is a key driver following the company's pivot to a DeFi-focused entity.
2. Expansion of Hyperliquid Protocol Participation and Validator Operations: Beyond basic staking, Hyperion DeFi aims to expand its involvement in the Hyperliquid ecosystem, including launching co-branded validators like 'Kinetiq x Hyperion'. These operations can generate additional revenue through fees or rewards for participating in the protocol's infrastructure.
3. Commercialization and Market Adoption of the Optejet User Filled Device (UFD): Hyperion DeFi continues to develop its proprietary Optejet User Filled Device for ophthalmic applications. The successful achievement of regulatory approvals (with submission targeted for Q4 2025) and subsequent market launch and adoption of the UFD for topical ophthalmic liquids are expected to contribute significantly to future revenue through product sales or licensing.

Share Repurchases

No information available regarding share repurchases made or authorized by Hyperion DeFi (HYPD) or its predecessor Eyenovia, Inc. within the last 3-5 years.

Share Issuance

• In June 2025, prior to rebranding, Eyenovia completed a $50 million private placement, issuing non-voting convertible preferred stock convertible into approximately 15.4 million common shares and warrants to purchase approximately 30.8 million common shares, with potential aggregate gross proceeds of up to $150 million if all warrants are fully exercised.
• In January 2025, Eyenovia generated approximately $1.0 million in gross proceeds from the exercise of 15,769,445 previously issued warrants by an institutional investor.
• Hyperion DeFi established an at-the-market (ATM) equity program in November 2025, allowing for the issuance and sale of up to $500 million in common stock, with proceeds used in part for its digital asset treasury strategy.

Inbound Investments

• Eyenovia secured a $50 million private placement from institutional accredited investors in June 2025 to fund its HYPE token cryptocurrency treasury reserve strategy.
• Avanza Pension disclosed significant passive investments in Hyperion DeFi, holding stakes of approximately 10.19% in March 2026, 9.94% in February 2026, and 10.11% in February 2026.
• In December 2025, Director Ellen R. Strahlman acquired 38,444 shares of Hyperion DeFi common stock for a total value of $120,663.

Outbound Investments

• Hyperion DeFi significantly expanded its HYPE token holdings, including a $10 million acquisition of 176,422 HYPE tokens in September 2025, bringing its cumulative investment in HYPE to over $65 million.
• The company strategically allocated 500,000 HYPE tokens in October 2025 to a partnership with Felix to support a perpetual futures market on Hyperliquid's HIP-3 framework.
• Hyperion DeFi allocated 300,000 HYPE tokens to Native Markets in December 2025 to support the Hyperliquid-aligned USDH stablecoin, generating additional yield, and deployed 28,888 HYPE into Markets by Kinetiq in December 2025 to earn proportional fee revenue.

Capital Expenditures

• Hyperion DeFi reported capital expenditures of -$65.64 million over the last 12 months, contributing to a free cash flow of -$82.46 million.
• A primary focus of capital expenditures includes the continued development of its proprietary Optejet User Filled Device (UFD) for ophthalmic applications.
• The company allocates capital to accumulate and stake HYPE tokens through its proprietary and co-branded validators to generate on-chain yield and facilitate blockchain infrastructure for the Hyperliquid ecosystem.