Vystar Corporation reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $12.7 million, a decrease of 66.3% from $37.6 million in the same period of 2024. The company's gross profit also fell sharply, down 78.7% to $4.3 million, compared to $20.2 million a year earlier. The cost of revenue decreased by 52.1% to $8.4 million, reflecting reduced sales and increased channel costs. The net loss attributable to Vystar increased to $538,282, up 48.5% from a loss of $362,374 in the prior year.
The decline in revenue was attributed to reduced sales to a former major customer, prompting Vystar to review its pricing and sales strategies. Operating expenses decreased slightly by 4.2% to $342,277, primarily due to the suspension of consulting fees and a rise in professional fees. Other expenses surged dramatically, increasing by 2376.4% to $200,312, largely due to accrued interest and losses on the settlement of debt.
In terms of operational developments, Vystar continues to focus on its core product lines, including the RxAir air purification units and Vytex Natural Rubber Latex. The company is exploring opportunities for geographic expansion and product adoption, particularly in the healthcare sector. As of March 31, 2025, Vystar had cash reserves of $43,250 and a working capital deficit of approximately $6 million, raising concerns about its ability to continue as a going concern.
Looking ahead, Vystar's management plans to finance future operations through cash on hand, increased revenue from existing product lines, and stock issuances. However, there is substantial uncertainty regarding the company's ability to achieve projected revenue levels in 2025 and beyond. If Vystar fails to secure additional financing or improve its revenue generation, it may need to significantly curtail operations or consider bankruptcy. The company is actively working to strengthen its internal controls and financial processes to enhance its operational stability.
About Vystar Corp
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