Vystar Corporation Reports 69% Revenue Decline and Increased Net Loss in Latest Financial Filing

Vystar Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenue of $11.6 million for the three months ended June 30, 2025, a decrease of 69% compared to $38.1 million in the same period last year. For the first half of 2025, revenue totaled $24.3 million, down from $75.7 million in the first half of 2024. The gross profit for the second quarter was $6.4 million, compared to $15.1 million in the prior year, reflecting a gross margin decline attributed to reduced sales volume and increased operational costs.

The company's net loss from continuing operations for the second quarter was $426,468, compared to a loss of $286,196 in the same quarter of 2024. For the first half of 2025, the net loss from continuing operations reached $964,750, up from $631,523 in the previous year. The increase in losses was primarily driven by higher interest expenses, which rose to $159,066 in the second quarter from $36,187 a year earlier, and increased operating expenses totaling $273,784 for the quarter.

In terms of operational developments, Vystar has continued to focus on its core product lines, including air purification units and Vytex Natural Rubber Latex. The company reported that air purification units accounted for 97.4% of its total sales in the second quarter, highlighting a shift in product focus. However, the overall customer engagement metrics have declined, with a significant drop in sales to major customers, which previously accounted for a substantial portion of revenue. The company also reported a stock subscription payable of $2.9 million as of June 30, 2025, indicating ongoing efforts to raise capital through equity financing.

Vystar's balance sheet reflects a total asset value of $505.7 million, down from $553.3 million at the end of 2024. The company reported a stockholders' deficit of $6.1 million, an increase from $5.3 million at the end of the previous fiscal year. The decline in cash reserves, which increased to $22.1 million from $7.7 million, was offset by rising liabilities, particularly in accounts payable and accrued expenses. The company continues to face liquidity challenges, with a working capital deficit of approximately $6.2 million.

Looking ahead, Vystar's management has indicated that achieving profitability will depend on securing additional financing and increasing revenue from its air purification units and Vytex licensing. The company has expressed uncertainty about its ability to meet projected revenue levels in 2025 and beyond, emphasizing the need for strategic adjustments to its operations. The ongoing financial difficulties raise concerns about the company's ability to continue as a going concern, necessitating careful management of its resources and operational strategies in the coming months.