Vystar Corporation Reports 74.1% Revenue Decline, Achieves Net Income from Discontinued Operations

Vystar Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues of $135,969, a decrease of 74.1% from $525,883 in 2023. The company's gross profit also fell sharply, down 81.9% to $69,641 from $384,583 the previous year. This decline in revenue and profitability was attributed to modifications in inventory and sales allowances made in 2023, which had temporarily inflated the previous year's figures. Operating expenses decreased by 17.5% to $1,587,220, primarily due to reduced operational activities.

In terms of operational changes, Vystar's discontinued operations, particularly related to its former majority ownership in Rotmans Furniture, showed a notable turnaround. The company reported a net income from discontinued operations of $4,192,379 in 2024, compared to a loss of $7,322,678 in 2023. This shift contributed to an overall net income of $2,520,312 for 2024, a stark contrast to the net loss of $8,319,395 reported in the previous year. The improvement was largely due to the derecognition of the Rotmans facility lease, which had previously burdened the company's financials.

Vystar has been actively pursuing strategic developments, including the expansion of its Vytex Natural Rubber Latex (NRL) product line into consumer markets, particularly in bedding products such as mattresses and pillows. The company has partnered with key foam manufacturers to enhance product offerings. Additionally, Vystar's RxAir division continues to focus on air purification technology, with products that have been independently tested to destroy over 99% of airborne pathogens. The company is also exploring new markets for its Vytex NRL, including collaborations with CMC Global for broader distribution.

Despite these strategic initiatives, Vystar faces challenges in maintaining operational stability. As of December 31, 2024, the company reported a cash position of only $7,712 and an accumulated deficit of $59,853,225. The management indicated that future operations would rely on increased sales from RxAir products and Vytex licensing fees, alongside potential capital raises. However, there is substantial doubt about the company's ability to continue as a going concern without achieving projected revenue levels and securing additional financing.

Looking ahead, Vystar's management remains cautious, acknowledging the risks associated with market conditions and operational execution. The company plans to focus on enhancing its product offerings and expanding its market presence while navigating the financial challenges that have historically impacted its performance. The outlook for 2025 and beyond will depend on the successful implementation of these strategies and the ability to generate sustainable revenue growth.