Vystar Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months amounting to $53,094, down 12% from $60,350 in the same period of 2023. For the nine months ended September 30, 2024, revenue plummeted to $128,770, a staggering 74.6% decrease from $506,383 in the prior year. This decline was primarily attributed to reduced sales in its air purification units, which generated $14,483 in the latest quarter, compared to $35,972 in 2023.

Gross profit also fell sharply, totaling $36,002 for the three months ended September 30, 2024, down 34.3% from $54,765 in the same quarter of 2023. The nine-month gross profit decreased to $71,326, an 82.9% drop from $418,187 in the previous year. Despite a reduction in total operating expenses, which decreased to $293,766 for the three months ended September 30, 2024, from $373,464 in 2023, the company still reported a loss from operations of $(257,764), an improvement from $(318,699) in the prior year.

The net loss from continuing operations for the three months ended September 30, 2024, was $(351,960), slightly higher than the $(331,617) reported in the same period of 2023. However, the net loss attributable to Vystar decreased significantly to $(347,751) from $(678,465) year-over-year, indicating some operational improvements.

Vystar's financial position showed a total stockholders' deficit of $(10,047,768) as of September 30, 2024, compared to $(9,040,205) at the end of 2023. The accumulated deficit increased to $(61,610,187) from $(60,612,738) over the same period. The company reported total current liabilities of $7,719,220, up from $5,914,882 at the end of 2023, reflecting increased financial strain.

Management indicated plans to finance future operations through cash on hand, increased revenue from RxAir air purification units, Vytex license fees, and stock issuances. However, there is substantial doubt regarding the company's ability to continue as a going concern due to its history of losses and negative cash flow. The company may need to significantly curtail or reorient operations if it cannot achieve projected revenue and secure additional financing.

In terms of strategic developments, Vystar continues to focus on its patented air purification technology and the Vytex® Natural Rubber Latex product line, while also managing discontinued operations related to Murida Furniture Co., Inc. The company is actively working to strengthen its internal controls following the identification of material weaknesses in its financial reporting processes.