Vystar Corporation, based in Worcester, Massachusetts, reported its financial results for the six months ended June 30, 2024, revealing significant challenges and strategic developments. The company generated revenue of $75.7 million, a substantial decline of 83% compared to $446.0 million in the same period of 2023. This drop was primarily attributed to decreased sales from its air purification units, which accounted for 77% of total revenue, down from 95% in the previous year.

For the three months ended June 30, 2024, Vystar's revenue increased slightly to $38.1 million, up 5.4% from $36.1 million in the same quarter of 2023. However, gross profit for the same quarter fell sharply by 49.9% to $15.1 million, reflecting a significant rise in the cost of revenue, which increased by 287.8% to $22.9 million. Operating expenses for the quarter decreased to $265.1 million from $319.2 million, indicating cost-cutting measures.

The company reported a net loss attributable to Vystar of $649.7 million for the six months ended June 30, 2024, a 45.6% improvement from a net loss of $1.2 million in the same period of 2023. The loss from discontinued operations also decreased significantly, from $1.8 million to $662.9 million, reflecting the winding down of operations related to Rotmans Furniture, which has been classified as discontinued.

As of June 30, 2024, Vystar's total assets were $630.3 million, down from $712.4 million at the end of 2023. The company reported a working capital deficit of approximately $6.3 million and an accumulated deficit of $61.3 million. Cash reserves decreased to $23.3 million from $35.4 million at the end of 2023.

Strategically, Vystar has focused on its air purification product line, particularly the RxAir units, which utilize patented technology to eliminate viruses and bacteria. The company plans to finance future operations through increased sales of these units, Vytex license fees, and stock issuances. However, there is substantial doubt regarding Vystar's ability to continue as a going concern due to its history of losses and negative cash flow.

In terms of management changes, Jamie Rotman was appointed as President in December 2023, with an annual compensation package that includes stock options. The company is also addressing material weaknesses in its internal controls, which were identified during the reporting period, and plans to enhance its financial processes moving forward.