Vystar's Losses Widen as Revenue Plummets 65% Amid Soaring Interest Costs

TL;DR

**VYST is bleeding cash and revenue, making it a high-risk bet with no clear path to profitability.**

AI Summary

Vystar Corp (VYST) reported a net loss of $1,236,401 for the nine months ended September 30, 2025, a significant increase from the $997,449 net loss in the prior-year period, representing a 23.96% deterioration. Revenue plummeted by 65.33% to $44,657 for the nine months ended September 30, 2025, compared to $128,770 in the same period of 2024. Gross profit also declined sharply by 63.49% to $26,054 from $71,326. Operating expenses decreased slightly by 4.14% to $878,402, primarily due to a reduction in professional fees and consulting expenses, but share-based compensation increased by 30.09% to $559,287. Interest expense surged by 119.49% to $303,943, contributing to the expanded net loss. The company's total current liabilities increased to $6,725,826 at September 30, 2025, from $5,840,162 at December 31, 2024, while cash on hand rose to $16,584 from $7,712. Vystar continues to operate with a substantial accumulated deficit of $61,089,626.

Why It Matters

Vystar's continued and accelerating losses, coupled with a dramatic revenue decline, signal severe operational challenges and raise significant going concern doubts for investors. The substantial increase in interest expense and share-based compensation, alongside a growing accumulated deficit, indicates a precarious financial position. For employees, this trend could mean job insecurity or limited growth opportunities. Customers might face uncertainty regarding product availability or future support. In the broader market, Vystar's struggles highlight the difficulties faced by small-cap companies in niche markets, especially when competing against larger, more established players with greater financial resources and market reach.

Risk Assessment

Risk Level: high — Vystar's net loss increased by 23.96% to $1,236,401 for the nine months ended September 30, 2025, while revenue decreased by 65.33% to $44,657. The company also has a significant accumulated deficit of $61,089,626 and current liabilities of $6,725,826 far exceeding current assets of $390,602, indicating severe liquidity issues and a high risk of financial distress.

Analyst Insight

Investors should avoid Vystar Corp (VYST) given its rapidly deteriorating financial performance, including massive revenue declines and widening losses. The company's substantial accumulated deficit and negative working capital position suggest a high probability of further dilution or potential bankruptcy.

Financial Highlights

debt To Equity

N/A

revenue

$44,657

operating Margin

-1908.3%

total Assets

$483,732

total Debt

N/A

net Income

-$1,236,401

eps

-$0.07

gross Margin

58.35%

cash Position

$16,584

revenue Growth

-65.33%

Key Numbers

• $1,236,401 — Net Loss (Increased by 23.96% for the nine months ended September 30, 2025, compared to $997,449 in 2024.)
• $44,657 — Revenue (Decreased by 65.33% for the nine months ended September 30, 2025, from $128,770 in 2024.)
• $61,089,626 — Accumulated Deficit (Increased from $59,853,225 at December 31, 2024, indicating persistent losses.)
• $6,725,826 — Total Current Liabilities (Increased from $5,840,162 at December 31, 2024, worsening liquidity.)
• $303,943 — Interest Expense (Increased by 119.49% for the nine months ended September 30, 2025, from $138,472 in 2024.)
• $559,287 — Share-based Compensation (Increased by 30.09% for the nine months ended September 30, 2025, from $429,915 in 2024.)
• $16,584 — Cash (Increased from $7,712 at December 31, 2024, but remains critically low.)
• 22,485,017 — Common Shares Outstanding (Increased from 17,400,614 at December 31, 2024, indicating dilution.)

Key Players & Entities

• Vystar Corporation (company) — registrant
• Jamie Rotman (person) — chief operating decision maker
• Murida Furniture Co., Inc. dba Rotmans Furniture (company) — majority-owned subsidiary, discontinued operations
• SEC (regulator) — filing recipient
• Bloomberg (company) — publisher

FAQ

Risk Factors

• Deteriorating Financial Performance [high — financial]: Vystar reported a net loss of $1,236,401 for the nine months ended September 30, 2025, a 23.96% increase from the prior year. Revenue declined by 65.33% to $44,657, and gross profit fell by 63.49%. The company's accumulated deficit stands at $61,089,626, indicating persistent unprofitability.
• Increasing Debt and Interest Expense [high — financial]: Interest expense surged by 119.49% to $303,943 for the nine months ended September 30, 2025. Total current liabilities increased to $6,725,826 from $5,840,162 at year-end 2024, while cash on hand remains critically low at $16,584.
• Share Dilution [medium — financial]: Common shares outstanding increased significantly from 17,400,614 at December 31, 2024, to 22,485,017 at September 30, 2025. This substantial increase suggests potential dilution for existing shareholders.
• Declining Revenue and Gross Profit [high — operational]: Revenue for the nine months ended September 30, 2025, was $44,657, a sharp decrease of 65.33% compared to $128,770 in the same period of 2024. Gross profit also saw a significant drop of 63.49% to $26,054.
• Rising Share-Based Compensation [medium — operational]: Share-based compensation increased by 30.09% to $559,287 for the nine months ended September 30, 2025. This rise, despite overall cost reductions in other operating expenses, adds to the company's expenses.
• Low Cash Reserves [high — financial]: Despite an increase from $7,712 to $16,584, the company's cash position remains extremely low, posing a significant liquidity risk and raising concerns about its ability to meet short-term obligations.

Industry Context

Vystar Corporation operates in a highly competitive and rapidly evolving market. The company's financial struggles, including plummeting revenues and increasing losses, suggest significant challenges in gaining market share or effectively monetizing its products or services. The broader industry may be characterized by innovation, consolidation, and intense pricing pressures, making it difficult for smaller or financially constrained players to thrive.

Regulatory Implications

As a publicly traded company, Vystar is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Failure to meet financial obligations or maintain compliance could lead to delisting or further regulatory scrutiny. The company's financial condition may also impact its ability to secure future financing or partnerships, which could have regulatory implications.

What Investors Should Do

1. Monitor cash burn rate closely given the critically low cash position of $16,584 and increasing current liabilities.
2. Evaluate the sustainability of the business model given the drastic revenue decline of 65.33% and persistent operating losses.
3. Assess the impact of share dilution, with common shares outstanding increasing by over 29%, on existing shareholder value.
4. Investigate the reasons behind the significant surge in interest expense (119.49%) and its implications for future debt servicing capabilities.
5. Seek clarity on management's strategy to reverse the negative financial trends and achieve profitability.

Glossary

Accumulated Deficit

The total cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (Vystar's substantial accumulated deficit of $61,089,626 highlights its history of unprofitability and the significant losses it has sustained over time.)

Share-based Compensation

Compensation provided to employees in the form of stock options, restricted stock units, or other equity awards, rather than cash. (The increase in share-based compensation to $559,287, despite declining revenues, is a notable expense that impacts the company's net loss.)

Current Liabilities

Obligations that a company expects to pay off within one year or its operating cycle, whichever is longer. (The increase in Vystar's total current liabilities to $6,725,826 indicates a growing short-term debt burden, which, coupled with low cash, raises liquidity concerns.)

Discontinued Operations

A component of a company's business that has been disposed of or is classified as held for sale, and whose results are reported separately from continuing operations. (Vystar reports a net loss from discontinued operations, contributing to the overall net loss, though the impact is less significant than from continuing operations.)

Loss from operations

The difference between a company's revenues and its operating expenses, excluding interest and taxes. (Vystar's loss from operations of $852,348 for the nine months ended September 30, 2025, shows that its core business activities are not generating profit.)

Year-Over-Year Comparison

Compared to the prior-year period, Vystar Corp has experienced a significant deterioration in its financial performance. Revenue has plummeted by 65.33%, and net loss has widened by 23.96%. While operating expenses saw a slight decrease, this was offset by a substantial increase in interest expense and share-based compensation. The company's liquidity position remains precarious, with a sharp increase in current liabilities and critically low cash reserves, despite a rise in cash on hand. The accumulated deficit continues to grow, underscoring ongoing financial challenges.

Key Financial Figures

• $300,000 — RxAir division. These services totaled $300,000 and will be expensed upon their perform

Filing Documents

• form10-q.htm (10-Q) — 2268KB
• ex31-1.htm (EX-31.1) — 20KB
• ex32-1.htm (EX-32.1) — 11KB
• 0001493152-25-021826.txt ( ) — 9462KB
• vyst-20250930.xsd (EX-101.SCH) — 51KB
• vyst-20250930_cal.xml (EX-101.CAL) — 67KB
• vyst-20250930_def.xml (EX-101.DEF) — 271KB
• vyst-20250930_lab.xml (EX-101.LAB) — 430KB
• vyst-20250930_pre.xml (EX-101.PRE) — 374KB
• form10-q_htm.xml (XML) — 1799KB

SIGNATURES

SIGNATURES 37 3 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VYSTAR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash $ 16,584 $ 7,712 Accounts receivable 5,842 20,892 Inventories 62,575 72,171 Prepaid expenses and other 300,000 300,604 Assets of discontinued operations 5,601 6,057 Total current assets 390,602 407,436 Property and equipment, net 22,835 54,929 Other assets: Intangible assets, net 70,295 90,939 Total assets $ 483,732 $ 553,304 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 1,279,245 $ 1,302,248 Accrued expenses 469,050 453,105 Stock subscription payable 2,998,391 2,049,029 Shareholder, convertible and contingently convertible notes payable and accrued interest - current maturities 31,044 381,232 Related party debt - current maturities, net of debt discount 939,294 691,285 Derivative liabilities 356,142 301,809 Unearned revenue 44,337 44,337 Related party advances 77,460 86,254 Liabilities of discontinued operations 530,863 530,863 Total current liabilities 6,725,826 5,840,162 Stockholders' deficit: Convertible preferred stock series class A, $ 0.0001 par value 15,000,000 shares authorized; 8,698 shares issued and outstanding at September 30, 2025 and December 31, 2024 (liquidation preference of $ 194,000 and $ 188,000 at September 30, 2025 and December 31, 2024, respectively) 1 1 Convertible preferred stock series B, $ 0.0001 par value 2,500,000 shares authorized; 321,083 and 336,131 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively, (liquidation preference of $ 2,964,000 and $ 2,927,000 at September 30, 2025 and December 31, 2024, respectively) 32 34 Convertible preferred stock series C, $ 0.0001 par value 2,500,000 shares authorized; 1,917,973 shares issued and outstanding at S

View Full Filing

View this 10-Q filing on SEC EDGAR