VYST 10-K
Vystar Corp (VYST)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the Fiscal Year Ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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or other jurisdiction of incorporation or organization) |
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Registrants
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Securities registered pursuant to Section 12(b) of the Act:
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Securities registered pursuant to Section 12(g) of the Act:
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by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐
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by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company, “and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer ☐ | Accelerated Filer ☐ | Smaller
Reporting Company | ||||
| Emerging
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As
of June 30, 2025, the aggregate market value of shares held by non-affiliates of the registrant (based upon the closing sale price of
such shares on the OTC Market on June 30, 2025) was $
As of April 14, 2026, there were shares of the registrant’s common stock outstanding.
Vystar Corporation
Annual Report on Form 10-K
For the Year Ended December 31, 2025
Table of Contents
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CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain oral and written statements made by Vystar Corporation about future events and expectations, including statements in this Annual Report on Form 10-K (the “Report”) contain forward-looking statements, within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Securities Act of 1933, as amended (the “Securities Act”), that involve risks and uncertainties. For those statements, we claim the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Act of 1995. In some cases, forward-looking statements are identified by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and similar expressions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this Report or the statement. All of these forward-looking statements are based on information available to us at this time, and we assume no obligation to update any of these statements. Actual results could differ from those projected in these forward-looking statements as a result of many factors, including those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere. We urge you to review and consider the various disclosures made by us in this Report, and those detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), that attempt to advise you of the risks and factors that may affect our future results. We qualify any forward-looking statements entirely by these cautionary factors.
The above-mentioned risk factors are not all-inclusive. Given these uncertainties and that such statements, speak only as of the date made; you should not place undue reliance on forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PART I
| ITEM 1. | BUSINESS |
Overview
Vystar Corporation (“Vystar”, the “Company”, “we,” “us,” or “our”) is based in Worcester, Massachusetts. Vystar is the owner and manufacturer of multiple brands of eco-friendly products for the home, office and medical sectors. The Company is focused on three main brands Vytex, RXAIR, and Fluid Energy Conversion (FEC). Vystar had a majority ownership in Murida Furniture Co., Inc. dba Rotmans Furniture (“Rotmans”), formerly one of the largest independent furniture retailers in the U.S.
All activities of Rotmans have been included in discontinued operations.
VYTEX
Vystar is the creator and exclusive owner of the innovative technology to produce Vytex® Natural Rubber Latex (“NRL”). Our global multi-patented technology reduces antigenic and total protein in natural rubber latex products to virtually undetectable levels. Vytex NRL, our “ultra-low protein” natural rubber latex has been introduced throughout the worldwide marketplace that uses NRL or latex substitutes as a raw material for end products. Natural rubber latex or latex substitutes are used in an extensive range of products including balloons, foams, textiles, adhesives, carpet, paints, coatings, protective equipment, sporting equipment, and especially health care products like surgical and exam gloves and condoms.
Vystar has expanded Vytex into the consumer arena with an introduction into the bedding category, aligning with key foam manufacturers to create mattresses, mattress toppers and pillows. Through this effort, Vystar can bring the benefits of great sleep and a more natural product to the public.
RXAIR
Vystar is also bringing peace of mind to consumers in the clean-air space. RxAir is the manufacturer of the finest air purification system in the world and an innovative developer, manufacturer and distributor of bio technology products targeting the rapidly growing Indoor Air Quality (“IAQ”) industry sector. RxAir’s products include the RxAir purification system for the home as well as one of the world’s finest lines of hospital-grade HEPA filtration products. All of our products are FDA certified as Class II medical devices and kill germs viruses and bacteria.
FEC
FEC has taken a position as a global green energy company with a multitude of new technologies including an array of patented, and soon-to-be patented, technology destined to change energy production and energy usage in many arenas. Our independent research and development has focused on product solutions that harness stable vortex effects, cavitation and other unique fluid flow phenomena to move energy application into new chapters. Our main thrust is currently in water but other applications such as those in combustion are already being positioned as key concepts in those fields. For over 50 years, FEC’s chief scientist has developed and patented many successful inventions, both nationally and internationally, involving fluid mechanics, fluidics, thermodynamics and related physics. His experience has created a revolutionary extension of fluidic science that has led to patented products that are cost effective to manufacture, simple to understand, and they deliver an outstanding performance. Most of our technology does not require complicated processes or sophisticated electronics, making us truly unique.
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Company Background
In May of 2018, Vystar acquired substantially all of the assets of UV Flu Technologies, Inc. (formerly traded on the OTC under the ticker UVFT), whose patented ViraTech™ UV light air purification technology destroys greater than 99% of airborne bacteria, viruses and other microorganisms and virtually eliminates concentrations of odors and volatile organic compounds (“VOCs”) and created the RxAir division.
The RxAir product line includes:
| ● | RXair™ Residential Filterless Air Purifier | |
| ● | RX400 ™ U.S. Food and Drug Administration (“FDA”) cleared Class II Filterless Air Purifier | |
| ● | RX3000™ Commercial FDA cleared Class II Air Purifier (not currently in production) |
RxAir promotes a healthy lifestyle improving the quality of life of each and every customer. Independently tested by the U.S. Environmental Protection Agency (“EPA”) and FDA-certified laboratories, the RxAir has been proven to destroy greater than 99% of bacteria and viruses and reduce concentrations of odors and VOCs. The RxAir uses high-intensity germicidal UV lamps that destroy bacteria and viruses instead of just trapping them, setting it apart from ordinary air filtration units. RxAir units are sold online at www.RxAir.com and are available through multiple third-party distributors. RxAir® and ViraTech ® are registered trademarks of Vystar Corporation.
Vystar is the exclusive creator of Vytex Natural Rubber Latex (“NRL”), a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products. Vytex NRL is a 100% renewable resource, environmentally safe, “green” and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows.
In April of 2018, Vystar acquired the assets of NHS Holdings, LLC (“NHS”) to move into direct product offerings made from Vytex® latex. NHS was the exclusive U.S. distributor of Vystar’s Vytex® natural rubber latex foam to manufacturers for use in over 200 home furnishings products, including mattresses, toppers, pillows and upholstery, sold through multiple channels.
In May of 2019, Vystar acquired the assets of Fluid Energy Conversion Inc. (“FEC”), primarily consisting of its patent on the Hughes Reactor, which has the ability to control, enhance, and focus energy in flowing liquids and gases. Vystar intends to use this technology to enhance the effectiveness of Vystar’s RxAir purification system to destroy airborne pathogens while decreasing the cost and size of Vystar’s RxAir units.
In July of 2019, Vystar acquired 58% of the outstanding shares of common stock of Murida Furniture Co., Inc. dba Rotmans Furniture (“Rotmans”), formerly one of the largest independent furniture retailers in the U.S. Rotmans sold a broad line of residential furniture and decorative accessories and served customers throughout the New England region. The acquisition enabled Vystar to capitalize on the infrastructure already in place at Rotmans for accounting, retail sales facilities and staff, customer service, warehousing, and delivery. Rotmans closed its showroom and discontinued its operations at the end of 2022.
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In December of 2020, Vystar selected Corrie MacColl Limited, a subsidiary of global natural rubber supply chain manager Halcyon Agri, as its exclusive global partner for all aspects of product market development and distribution of patented Vytex deproteinized latex.
Competition
RxAir
The residential air purification market is a highly fragmented competitive business. Vystar competes with a large number of companies on many factors including price, quality, innovation, reputation, distribution and promotion.
Natural Rubber Latex
Synthetic raw materials such as ethylene, propylene, styrene and butadiene compete with NRL. Currently, it is estimated that NRL processors have lost one-half of the overall latex market to synthetic latex. Despite the switch to non-latex alternatives, it is estimated that almost 70% of exam gloves and nearly 80% of surgical gloves used in U.S. hospitals are still made with NRL.
Intellectual Property
Vystar currently holds a portfolio of patents and trademarks in the U.S. and other various foreign countries. No assurance can be given that such patent and trademark protection will provide substantial protection from competition. We are committed to aggressively challenging any infringements of our patents and/or trademarks.
Government Regulation
We are not subject to direct governmental regulation other than the laws and regulations generally applicable to businesses in the domestic and foreign jurisdictions in which we operate.
Our RxAir400 product was cleared by the FDA as a Class II medical device in November 2008. FDA clearance to sell our product as a Class II medical device provides invaluable credibility in the marketplace. By granting a listing, the FDA indicates it has reviewed all aspects of a product, including efficacy of the technology, independent test results and product safety to ensure that the product complies with our claims. Few air purification products are listed by the FDA, and it is extremely important that we expend the resources necessary to maintain this listing as a Class II medical device with the FDA.
Seasonality
Our business is affected by traditional retail seasonality, advertising and promotion programs and general economic trends.
Employees
As of December 31, 2025, Vystar had one employee.
Corporate Information
Vystar Corporation is a Georgia corporation that was incorporated in 2003. Our predecessor company, Vystar LLC, was formed by our founder, Travis Honeycutt, in February 2000 as a Georgia limited liability company. Our corporate office is located at 365 Shrewsbury Street, Worcester, Massachusetts 01604. Our website address is www.vystarcorp.com, www.rxair.com and www.vytex.com.
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The information contained on, or that can be accessed through, our website is not a part of this Report. We have links on our website to reports, information statements, and other information that we file electronically with the Securities and Exchange Commission, or SEC, at the Internet website maintained by the SEC, www.sec.gov. In addition to visiting our website and the SEC’s website, you may read and copy public reports we file with or furnish to the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
| ITEM 1A. | RISK FACTORS |
Our business is subject to a number of risks and uncertainties — many of which are beyond our control — that may cause our actual operating results or financial performance to be materially different from our expectations. If one or more of the events discussed below were to occur, actual outcomes could differ materially from those expressed in or implied by any forward-looking statements we make in this report or our other filings with the SEC, and our business, financial condition, results of operations or liquidity could be materially adversely affected; furthermore, the trading price of our common stock could decline and our shareholders could lose all or part of their investment.
Vystar presently does not generate the cash needed to finance its current and anticipated operations.
The Company is still in the early stage of establishing our business including attracting new customers and increasing sales. Our financial success will be dependent upon the soundness of our business concept, our management’s ability to successfully and profitably execute our plan, and our ability to raise additional capital.
Our limited operating history makes it difficult to evaluate our business. We expect to make significant future operating expenditures to develop and expand our business into areas such as OEM product lines and offerings in the mattress and furniture arenas. We may incur significant losses in the future for a number of reasons, including due to the other risks described in this Report, and we may encounter unforeseen expenses, difficulties, complications and delays and other unknown events. Accordingly, we may not be able to achieve or maintain profitability, and we may incur significant losses for the foreseeable future. See additional discussion under Liquidity and Capital Resources.
At December 31, 2025 our cash position was $4,454 and we had an accumulated deficit of $61,384,883. We plan to finance our operations for the next twelve (12) months through the use of cash on hand, raising capital through private placement and increased sales from RxAir products by exploring sales partnerships with third-party wholesalers and retailers. You should consider, among other factors, our prospects for success in light of the risks and uncertainties encountered by companies that, like us, have not generated net earnings on an annual basis. Various factors, such as economic conditions, regulatory and legislative considerations, and competition, may also impede our ability to expand our market presence. We may not successfully address these risks and uncertainties or successfully implement our operating strategies. If we fail to do so, it could materially harm our business and impair the value of our common stock. Even if we accomplish these objectives, we may not generate positive cash flows or profits we anticipate in the future.
The following risk factors apply to our RxAir business:
We face significant competition from multinational and regional manufacturers.
The growing air purification market is highly competitive with companies offering wide range of air purifiers sold through e-commerce websites, company-owned websites, retailer and their websites and distributors. Market participants compete on product performance, quality, price and reputation.
We are dependent upon the ability of our third-party producers to meet our requirements.
We source our products from non-exclusive, third-party producers, many of which are located in foreign countries. We depend upon the ability of third-party producers to secure a sufficient supply of raw materials, a skilled workforce, adequately finance the production of goods ordered and maintain sufficient manufacturing and shipping capacity. Tariffs by the U.S. government have impacted future production. We cannot be certain that we will not experience operational difficulties with our manufacturers, such as insufficient quality control, failures to meet production deadlines or increases in manufacturing costs.
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The following risk factors apply to our Vytex business:
Our Vytex operating results could fluctuate and differ considerably from our financial forecasts.
Our business model is based on experience derived from the marketplace. There are no assurances that this experience will prove to be valid for our future operations or plans.
Our operating results may fluctuate significantly as a result of a variety of factors, including:
| ● | Acceptance by manufacturers of the Vytex Natural Rubber Latex technology; | |
| ● | Our ability to achieve and sustain profitability; | |
| ● | Consumer confidence in products manufactured using our Vytex Natural Rubber Latex technology; | |
| ● | Our ability to raise additional capital. |
Our Vytex NRL business is totally dependent on market demand for, and acceptance of, the Vytex Natural Rubber Latex process.
We expect to derive most of our Vytex NRL business revenue from the sales of our Vytex Natural Rubber Latex raw material to various manufacturers of rubber and rubber end products using NRL through our distribution agreement with CMC Global. We pay natural rubber latex processors a fee for the service of manufacturing and creating Vytex NRL for us under our manufacturing and distribution agreements. Conversely, Vystar collects a fee under the CMC Global licensing model. Our Vytex NRL product operates within broad, diverse and rapidly changing markets. As a result, widespread acceptance and use of product is critical to our future growth and success. If the market for our product fails to grow or grows more slowly than we currently anticipate, demand for our product could be negatively affected.
Our ability to generate significant revenue in the Vytex business is substantially dependent upon the willingness of consumers to make discretionary purchases and the willingness of manufacturers to utilize capital for research and development and the retooling of their manufacturing process, both of which are impacted by the state of the economy.
The current state of the world economy has and likely will in the future impact upon our ability to increase revenue. Certain products that we anticipate will be manufactured with our Vystar NRL process, such as mattresses and sponge products, are considered discretionary consumer purchases which decline during economic downturns. Additionally, certain manufacturers who might otherwise utilize the Vytex NRL process in the manufacturing of products with NRL have determined not to expend capital to complete the research of the Vytex NRL process or to retool their manufacturing process because of the general downturn in the economy. As part of a strategy to increase awareness of the Vytex NRL brand, the Company has been aggressively seeking to have end products produced and labeled “made with Vytex NRL” such as mattresses, toppers and pillows. As these products enter the market, the Company plans to create consumer awareness of these end products and in so doing begin to develop consumer demand pull through as part of the Company’s efforts to complete the push-pull cycle using an ingredient branding strategy.
The latex market in which we will participate is competitive and if we do not compete effectively, our operating results may be harmed.
The markets for our product are competitive and rapidly changing. With the introduction of new technologies, increasing scrutiny of alternative lattices such as Russian dandelion, and new market entrants, we expect competition to intensify in the future. In addition, pricing pressures and increased competition generally could result in reduced sales, reduced license fees or the failure of our products to achieve or maintain widespread market acceptance.
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While continued interest is strong in a new innovative product in the natural rubber latex industry, pricing and regulatory approvals remain a key selling factor.
Our Vytex revenue will vary based on fluctuations in commodity prices for NRL.
NRL is a commodity and, as such, its price fluctuates daily. Our raw material revenue including licensing fees and cost of goods will also fluctuate upward or downward based upon changing market prices for the raw material used to produce Vytex NRL. Prolonged periods of lowered market prices can also cause manufacturers to review synthetic price drops as they look for even lower cost alternatives to NRL.
While Vytex NRL has received 510(k) clearance from the FDA for condoms and exam gloves, there is no assurance that future applications will be cleared.
In order for Vytex to be used in medical device applications, the manufacturer of the end product must submit an application to the FDA. If the device is classified by the FDA as Class II (e.g., condoms, surgical gloves, and most non-cardiac and non-renal/dialysis catheters) and in some cases Class I (e.g., exam gloves), a 510(k) application must be filed with the FDA seeking clearance to market the device based on the fact that there is at least one other predicate or similar device already marketed. If the product is classified as a Class III product (e.g., most cardiac and renal/dialysis catheters, certain adhesives and other in vivo devices), or is otherwise a new device with no predicate on the market already, then the manufacturer of the end product must submit a Pre-Market Approval (“PMA”) application seeking approval by the FDA to market the device. The PMA approval process is much more in depth and lengthy and requires a greater degree of clinical data and FDA review than does a 510(k) clearance process.
Since Vytex is a raw material and not an end-product, Vystar is not the entity that files with the FDA for any clearance or approval to market a device. Instead, the end-product manufacturers who will be selling and marketing the device(s) must submit applications and seek FDA clearance or approval depending upon the device classification. Vystar’s role in this process is only as background support to the manufacturers to supply information and any technical or test data regarding the Vytex raw material.
An American manufacturer of condoms and exam gloves had been engaged in production work and had completed required testing and received FDA clearance for using Vytex NRL in their condom and exam glove lines. However, this manufacturer is not currently producing products made with Vytex NRL or any other type of raw material. Notwithstanding such approvals, we have no assurance that future products will provide acceptable test results and even if they do, there is no certainty that the FDA will approve the applications.
Each of the above mentioned 510(k)s have been sold to other manufacturers hence the need to pursue 510(k)s for the newer manufacturing facilities.
Vytex may seek to have lower protein claims than what is currently on the market today for exam gloves and may ultimately seek to have latex warnings removed from or modified on all FDA-regulated products, but it cannot guarantee that either of such actions will be approved by the FDA.
The FDA heavily scrutinizes any and all claims categorizing the protein levels and other claims of an NRL product. Currently, the FDA has allowed claims only stating the level of less than 50 micrograms/gram of total extractable proteins pursuant to only one of two FDA-recognized standards on exam or surgical gloves. Vystar intends to claim protein levels pursuant to both of the two FDA-recognized standards, which will result in claiming the lowest level of antigenic proteins for a Hevea NRL product currently on the market. Although the FDA has cleared such claims on the condom using Vytex NRL, the FDA rejected those claims for the exam glove. There is no guarantee that the FDA will ultimately or ever allow these claims on an exam glove.
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Additionally, for many years, the FDA has required warnings on products containing latex due to the latex allergy issue that exists. Vystar plans on petitioning the FDA to have that label removed from or modified on products manufactured with Vytex NRL, by filing a Citizen’s Petition. The Petition will be filed when we see that the benefits of filing will far outweigh the costs since such Petition is likely to require clinical test results indicating acceptable allergic reactions associated with Vytex NRL. There are no assurances that the FDA will grant that request.
Manufacturers are implementing trials of Vytex NRL in their facilities but final data is not yet available from all these manufacturers on its viability for their particular environments.
Over the past several years, samples of Vytex NRL have been made available to over 50 natural rubber latex and latex substitute end product manufacturers, 30 of which have been in place since early 2009. Since the completion of the Vytex NRL Standard Operation Procedures (SOPs), Vytex has been produced at Revertex (Malaysia), Occidente (Guatemala), KAPVL (India) and most recently Mardec-Yala (Thailand) and MMG (Thailand). Under the 2020 agreement with CMC Global, that entity is responsible for manufacturing, marketing and selling Vytex exclusively including sampling. Manufacturers that have signed a ‘sampling’ agreement with us have been provided with samples of Vytex NRL for validating its use in their manufacturing processes.
Another risk is the validity of the customer as testing completes. Recently Vystar has completed more than three years of a specialized version of Vytex NRL only to have the end product manufacturer fail to upgrade their production line and fulfill their own contract. As part of the Company’s learnings, we have found that in listening closely to customer challenges and needs, our technical team has been able to develop solutions. The Company has come to realize that what we offer is not just a raw material but often a technology solution to a production or product development challenge.
While many of these new formulations look promising, there is no guarantee that these technological innovations will be successfully scaled up or successfully implemented by the customer.
The following risk factors apply to our company as a whole:
Our use of foreign sources of production for a portion of our products exposes us to certain additional risks associated with international operations.
Our use of foreign sources for the supply of certain of our products exposes us to risks associated with overseas sourcing. These risks are related to government regulation, volatile ocean freight costs, delays in shipments, and extended lead time in ordering. Governments in the foreign countries where we source our products may change their laws, regulations and policies, including those related to tariffs and trade barriers, investments, taxation and exchange controls which could make it more difficult to service our customers resulting in an adverse effect on our earnings. We could also experience increases in the cost of ocean freight shipping which could have an adverse effect on our earnings. Shipping delays and extended order lead times may adversely affect our ability to respond to sudden changes in demand, resulting in the purchase of excess inventory in the face of declining demand, or lost sales due to insufficient inventory in the face of increasing demand, either of which would also have an adverse effect on our earnings or liquidity.
Significant fluctuations in the cost of raw materials could adversely affect our profits.
On a global and regional basis, the raw materials used in our products are susceptible to significant price fluctuations due to supply/demand trends, transportation costs, government regulations and tariffs, changes in currency rates, the economic and political climate and other circumstances. Significant increases in the future could materially affect our costs and profits.
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Cybersecurity risks could adversely affect the Company’s operating effectiveness and operating results.
The Company uses computers in substantially all aspects of its business operations. Such use exposes the Company to potential cyber incidents resulting from deliberate attacks or unintentional events. While we have not experienced cybersecurity incidents that materially impacted our operating results and financial condition, it is not uncommon for a company to be subjected to cyber-attacks or other malicious efforts to cause a cyber incident. The possible consequences of such an attack include but are not limited to loss of data, damage to the Company’s reputation, interruptions to our operations, and/or the need to pay ransom. The results of these incidents could include, but are not limited to, business interruption, disclosure of nonpublic information, misstated financial data, liability for stolen assets or information, increased cybersecurity protection costs, litigation and reputational damage adversely affecting customer or investor confidence.
Because our stock price may be volatile due to factors beyond our control, you could lose all or part of your investment.
Price and volume of stock, including additional stock issuances may cause price decline and dilution.
If we do not attract and retain highly qualified employees, we may not be able to grow effectively.
Our ability to compete and grow depends in large part on the efforts and talents of our executive officer and our ability to attract highly qualified employees. We require the key employee to enter into employment agreements, but in the U.S., employees are free to leave an employer at any time without penalties. The loss of our key employee or the inability to hire additional skilled employees as necessary could result in significant disruptions of our business, and the integration of replacement personnel could be time-consuming and expensive and cause us additional disruptions.
We do not expect to declare any dividends in the foreseeable future.
We do not anticipate declaring any cash dividends to holders of our common stock in the foreseeable future. Consequently, shareholders must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.
There is no assurance that any significant public market for our shares of common stock will develop.
While our shares of common stock trade on the OTC Bulletin Board under the symbol “VYST”, there is currently no significant public market for our common stock and there is no assurance that there will be any such significant public market for our common stock in the future.
The utilization of our tax losses could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.
Because of net operating losses we have experienced for federal income tax purposes at December 31, 2025, we had federal net operating loss (“NOL”) carry-forwards of approximately $39 million available to offset future taxable income. Our ability to utilize NOL carry-forwards to reduce future taxable income may be limited under Section 382 of the Internal Revenue Code if certain ownership changes in our Company occur during a rolling three-year period. These ownership changes include purchases of common stock under share repurchase programs, the offering of stock by us, the purchase or sale of our stock by 5% shareholders, as defined in the Treasury regulations, or the issuance or exercise of rights to acquire our stock. If such ownership changes by 5% shareholders result in aggregate increases that exceed 50 percentage points during the three-year period, then Section 382 imposes an annual limitation on the amount of our taxable income that may be offset by our NOL carry-forwards or tax credit carry-forwards at the time of ownership change. The limitation may affect the amount of our deferred income tax asset and, depending on the limitation, a significant portion of our NOL carry-forwards or tax credit carry-forwards could expire before we are able to use them. In such an event, our business, financial condition, results of operations or cash flows could be adversely affected. We believe we have not experienced an ownership change under Section 382 of the Internal Revenue Code as of December 31, 2025; however, the amount by which our ownership may change in the future could be affected by purchases and sales of stock by 5% shareholders and new issuances of stock by us, should we choose to do so.
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| ITEM 1B. | UNRESOLVED STAFF COMMENTS |
None.
| ITEM 1C. | CYBERSECURITY |
To
manage our cyber risk, we have
| ITEM 2. | PROPERTIES |
Although we believe that our current space is adequate for the foreseeable future, if additional office space is required, we believe that suitable space will be available at market rates.
| ITEM 3. | LEGAL PROCEEDINGS |
EMA Financial
On February 19, 2019, EMA Financial, Inc. filed a lawsuit in the Southern District of New York against the Company. The lawsuit alleged various breaches of an underlying convertible promissory note and stock purchase agreement and sought four claims for relief: (i) specific performance to enforce a stock conversion and contractual obligations; (ii) breach of contract; (iii) permanent injunction to enforce the stock conversion and contractual obligations; and (iv) legal fees and costs of the litigation. The complaint was filed with a motion seeking: (i) a preliminary injunction seeking an immediate resolution of the case through the stock conversion; (ii) a consolidation of the trial with the preliminary injunctive hearing; and (iii) summary judgment on the first and third claims for relief.
The Company filed an opposition to the motion and upon oral argument the motion for injunctive relief was denied. The Court issued a decision permitting a motion for summary judgment to proceed and permitted the Company the opportunity to supplement its opposition papers together with the plaintiff who was also provided opportunity to submit reply papers. On April 5, 2019, the Company filed the opposition papers as well as a motion to dismiss the first and third causes of action in the complaint. On March 13, 2020, the Court granted the Company’s motion dismissing the first and third claims for relief and denied the motion for summary judgment as moot.
The Company subsequently filed an amended answer with counterclaims. The affirmative defenses if granted collectively preclude the relief sought. In addition, Vystar filed counterclaims asserting: (a) violation of 10(b)(5) of the Securities and Exchange Act; (b) violation of Section 15(a)(1) of the Exchange Act (failure to register as a broker-dealer); (c) pursuant to the Uniform Declaratory Judgment Act, 28 U.S.C. §§ 2201, the Company requests the Court to declare: (i) pursuant to Delaware law, the underlying agreements are unconscionable; (ii) the underlying agreements are unenforceable and/or portions are unenforceable, such as the liquidated damages sections; (iii) to the extent the agreement is enforceable, Vystar in good faith requests the Court to declare the legal fee provisions of the agreements be mutual (d) unjust enrichment; (e) breach of contract (in the alternative); and (f) attorneys’ fees.
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On June 10, 2020, EMA filed a motion for summary judgment as to its remaining claims for relief and a motion to dismiss the Company’s affirmative defenses and counterclaims. The Company opposed the motion on July 10, 2020, and the same was fully submitted to the Court on July 28, 2020. On March 29, 2021, the Court issued a decision granting in part and denying in part the motion. Specifically, the Court granted that part of the motion seeking summary judgment and dismissal on the Company’s affirmative defense and counterclaim regarding Sections 15(a)/29(b) of the Exchange Act. Two weeks later the Company filed a motion for reconsideration as to the dismissal portion of the order, or, for the alternative, a motion for certification for the right to file a petition to the Second Circuit Court of Appeals on the issue. The Court denied the motion for reconsideration and certification. Subsequently, fact discovery has been completed and on June 24, 2022 both parties submitted competing motions for summary judgment.
EMA seeks summary judgment on its breach of contract and attorneys’ fees claims, specifically seeking damages in the amount of $1,820,000 with 24% interest premised on the argument it was entitled to effectuate a January 15 and February 5, 2019, notices of conversions. EMA further seeks to dismiss Vystar’s affirmative defenses and counterclaims. Conversely, Vystar filed its motion for summary judgment seeking an order to dismiss the EMA complaint on the grounds: (i) the underlying note was satisfied on December 11, 2018; and (ii) EMA, through multiple breaches of the note, over-converted the note by 36,575,555 shares equating to a request of damages against EMA and in favor of Vystar for $4,802,000, with interest accruing at 24%, and attorneys’ fees. The briefing by the parties was fully submitted on July 29, 2022.
On January 6, 2023, the Court issued a series of preliminary rulings based upon the parties’ respective summary judgment motions. Those rulings narrowed the outstanding issues (and claims) to only the parties’ breach of contract claim and counterclaim (and affirmative defenses) regarding the conversion process. Of particular importance, the Court found EMA breached the note by failing to effectuate the conversions in the manner outlined by the controlling note. The Court further found the principal balance at issue was $80,000, interest accrued from the date set in the note and default interest, to the extent applicable, was to accrue at the default rate from September 2018, forward. The Court left undecided whether EMA’s breach of the note was material, whether affirmative defenses as previously raised by the parties were applicable to each parties’ contractual claim, and a damages analysis associated with the same. The Court then requested a supplemental briefing as to the issues of materiality, liability and damages. The issues were fully briefed and submitted on February 24 and March 15, 2023.
On October 27, 2023, the Court held oral argument on the issues addressed in the supplemental briefing. On November 27, 2023, the Court issued its order resolving the case in Vystar’s favor. The Court held while EMA breached the terms of the underlying promissory note by virtue of the manner of its conversions, such breach was not material. The Court thereafter held the balance of the note was paid in full by Vystar. Based upon the decision in favor of Vystar, the Court granted Vystar’s request for legal fees, and requested a briefing on the same. Vystar subsequently submitted a motion for legal and expert fees in the amount of approximately $638,000 supported by the relevant paperwork. The parties await the Court’s decision.
On December 24, 2023, EMA filed a motion for reconsideration, arguing the Court failed to properly read the underlying note that, in EMA’s belief, allowed it to effectuate the two post default conversions at issue in the case. After the matter was fully briefed by the parties, on May 16, 2024, the Court held oral argument. On the same date after argument the Court granted EMA the procedural right for reconsideration, and thereafter denied the substantive portion of its motion. The November 27, 2023, decision stands.
On December 27, 2023, EMA filed a notice of appeal with the United States Court of Appeals for the Second Circuit. The appeal targets each section of the prior decisions that fell against EMA. Vystar has until June 14, 2024, to file its notice of appeal with the same appellate court. The appeal, if filed, will target the relevant and material decisions issued by the Court against Vystar.
On June 13, 2024, Vystar has timely filed its notice of cross-appeal. EMA is required to file its submissions on September 20, 2024, and Vystar thereafter has sixty days to file its opposition and cross-appeal. Thereafter the parties will submit final submissions for the appellate court to consider.
On August 5, 2024, the District Court denied, without prejudice to renew, the motion for attorneys’ fees, ruling that such is premature based upon the pending appeal and cross-appeal.
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Both parties filed their final briefs in March 2025 with the Second Circuit Court of Appeals.
On July 17, 2025 the Second Court issued its decision, affirming the District Court’s decision. The result of this decision sends the case back to the District Court for a determination of legal fees to be awarded to Vystar.
On December 22, 2025, the District Court granted Vystar’s motion for attorneys’ fees and costs awarding Vystar $497,439.58. On January 21, 2026, EMA filed a Notice of Appeal to the Second Circuit seeking to reverse the District Court’s attorneys’ fee order. Vystar believes the District Court’s decision is based upon sound legal positions that support the factual conclusions
| ITEM 4. | MINE SAFETY DISCLOSURES |
Not applicable.
PART II.
| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND PURCHASES OF EQUITY SECURITIES |
Market Price Information
Our common stock is traded in the United States on the Over the Counter Bulletin Board (OTCQB) under the symbol “VYST.” The following table shows the range of high and low closing prices for our common stock.
| High | Low | |||||||
| December 31, 2024 | ||||||||
| First Quarter | $ | 0.09 | $ | 0.02 | ||||
| Second Quarter | $ | 0.06 | $ | 0.00 | ||||
| Third Quarter | $ | 0.08 | $ | 0.00 | ||||
| Fourth Quarter | $ | 0.08 | $ | 0.00 | ||||
| December 31, 2025 | ||||||||
| First Quarter | $ | 0.25 | $ | 0.01 | ||||
| Second Quarter | $ | 0.25 | $ | 0.07 | ||||
| Third Quarter | $ | 0.20 | $ | 0.07 | ||||
| Fourth Quarter | $ | 0.15 | $ | 0.02 | ||||
These quotations do not reflect retail markup, markdown or commission and may not necessarily represent the prices of actual transactions during these quarterly periods.
Holders of Record
As of December 31, 2025, there were 215 holders of record of our common stock. Because some of our shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of stockholders represented by these record holders.
Dividend Policy
We have never paid or declared any cash dividends on our common stock and we do not intend to pay or declare dividends on our common stock in the near future. We presently expect to retain any future earnings to fund continuing development and growth of our business. Our payment of dividends is subject to the discretion of our board of directors and will depend on earnings, financial condition, capital requirements and other relevant factors.
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Issuer Purchases of Equity Securities
None.
Securities Authorized for Issuance Under Equity Compensation Plans
Information concerning our equity compensation plans is set forth in Item 12 of Part III of this Annual Report on Form 10-K.
Recent Sales of Unregistered Securities
During the year ended December 31, 2025, the Company received stock subscription agreements totaling $225,000 for 9,128,571 shares of common stock. Of the subscriptions, the Company issued 700,000 shares of common stock in 2025. The remaining shares will be issued in 2026.
Common Stock and Warrant Grants
There were no common stock and warrant grants issued from January 1, 2025 through December 31, 2025.
Stock Option Grants
There were no stock option grants issued from January 1, 2025 through December 31, 2025.
Proceeds from loans and shareholder, convertible and contingently convertible notes payable
During the year ended December 31, 2025, the Company received proceeds of $127,431 from related party debt. There were no proceeds from shareholder, convertible and contingently convertible notes payable.
Application of Securities Laws and Other Matters
No underwriters were involved in the foregoing sales of securities. The securities described above were issued to investors in reliance upon the exemption from the registration requirements of the Securities Act, as set forth in Section 4 (2) under the Securities Act and Regulation D promulgated thereunder, as applicable, relative to sales by an issuer not involving any public offering, to the extent an exemption from such registration was required.
The issuance of stock options as described above were issued pursuant to written compensatory plans or arrangements with our employees, directors and consultants, in reliance on the exemption provided by Rule 701 promulgated under the Securities Act. All recipients either received adequate information about us or had access, through employment or other relationships, to such information.
All of the foregoing securities are deemed restricted securities for purposes of the Securities Act. All certificates representing the issued shares of common stock, warrants and options described above included appropriate legends setting forth that the securities had not been registered and the applicable restrictions on transfer.
| ITEM 6. | SELECTED FINANCIAL DATA |
As a smaller reporting company, we are not required to provide the information required by this Item pursuant to 301(c) of Regulation S-K.
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| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
This analysis of our results of operations should be read in conjunction with the accompanying financial statements, including notes thereto, contained in Item 8 of this Report. This Report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Statements that are predictive in nature and that depend upon or refer to future events or conditions are forward-looking statements. Although we believe that these statements are based upon reasonable expectations, we can give no assurance that projections will be achieved. Please refer to the discussion of forward-looking statements included in Part I of this Report.
Overview
About RxAir
RxAir promotes a healthy lifestyle through the use of its innovative, patented ViraTech air purification technology, thereby improving the quality of life of each and every customer. Independently tested by EPA- and FDA-certified laboratories, the RxAir has been proven to destroy greater than 99% of bacteria and viruses and reduce concentrations of odors and VOCs. The RxAir uses high-intensity germicidal UV lamps that destroy bacteria and viruses instead of just trapping them, setting it apart from ordinary air filtration units. RxAir® and ViraTech® are registered trademarks of Vystar Corp. For more information, visit http://www.RxAir.com.
The Company’s RxAir product line use 48 inches of high-intensity germicidal UV lamps that destroy bacteria, viruses and other germs instead of just trapping them, setting it apart from ordinary air filtration units. RxAir is one of the few UV air purifiers that have been proven in independent EPA- and FDA- certified testing laboratories to destroy on the first pass 99.6% of harmful airborne viruses and bacteria. In addition to inactivating airborne viruses that cause influenza (flu) and colds, RxAir’s device disarms the airborne pathogens that cause MRSA (staph), strep (whooping cough), tuberculosis (TB), measles, pneumonia and a myriad of other antibiotic-resistant and viral infections.
Vystar produces the RxAir product line with a world-class manufacturer and an expert U.S. engineer with a full understanding of the RxAir technology. Vystar sells RxAir residential and commercial units via distributors, online and through retail channels. Vystar has assembled a distribution network for sales of the RX400™ FDA cleared Class II Filterless Air Purifier. Vystar also sells the ViraTech replacement cartridge for approximately 25,000 units that have been previously sold. The RX3000™ Commercial FDA cleared Class II Air Purifier, our largest unit, is currently not in production. We have produced a sample size of the RX800™ FDA cleared Class II Filterless Air Purifier and they are currently in the testing stage. We have a prototype for the RX300, which will be renamed RX600, and are exploring production options. The Company also hopes to have an even smaller unit designed during 2026 for automobiles and refrigerators with USB charging. Tariffs by the U.S. government may impact future production.
About Vytex
Vytex is a multi-patented latex raw material in which the allergy causing proteins are reduced to a level that falls at or below detection based on ASTM approved test methods. Vytex has been available as a raw material commercially for fourteen years and through that time has a group of manufacturers who use it in end products such as electrical gloves, condoms, adhesives, etc. Ironically, most use Vytex as it’s better for their manufacturing process as an easier to use raw material and not for protein properties. As of mid-2020 Vystar and the Indian Rubber Manufacturers Research Association’s (“IRMRA”) had been actively collaborating to develop viscoelastic deproteinized natural rubber (DPNR) variants having properties for expanding applications in specific new arenas such as green tires, biodegradable and other unique bioelastoplast product lines that desire a new approach. Additionally, this research, while slowed by the COVID-19 pandemic, showed attributes with extra low ammonia offerings that are desired.
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Towards the end of 2020, Vystar entered into a Market Development and Distribution Agreement with Corrie MacColl, Ltd. (“CMC Global”) to produce, develop and manage the Vytex product and supply lines. This agreement allows Vystar to expand the market for its Natural Rubber Latex products and has garnered much attention across a broad range of industries including liquid Vytex as well as the newly developed dry rubber Vytex. As of the date of this report, CMC Global has provided numerous opportunities that are in a trial basis or moving towards manufacturing trials in industries that use a significant amount of natural rubber latex, hence Vytex that now includes production size trial runs in a large dipped product consumer line starting late 2022. Vystar now has a testing supply of Vytex dry rubber for larger trials through CMC Global. The success of early trials and the shipping crisis has led to broader spectrum of manufacturers combining the potential of Cameroon production with strategically placed contract manufacturers based on geographical needs including the North American market. Also, Vystar research has shown great strides in specializing liquid Vytex (ultra-low protein latex, ULPL) to meet the immediate needs of customers such as low or no nitrosamine and others (discussed in the presentation below available in the pdf) and additional patents have been proposed to cover these findings. Research into dry rubber continues at a moderate pace as tire companies seek out alternatives to synthetics.
In Halcyon Agri (owner of CMC Global), 2020 Corporate Report: “Our group-wide innovation capabilities have enabled us to engage in innovative commercial partnerships. CMC Global is collaborating with Vystar to transform our Cameroon plantation output into ultra-pure latex with stronger molecular bond that offers enhanced strength, durability, and flexibility in the end products. This is achieved by removing non-rubber components and 99.85% of the proteins.” CMC Global continues to work with the facility at Cameroon to produce Vytex at their owned processing plant.
Vytex researcher Dr. Ranjit Matthan and CMC Global Director John Heath presented at The International Latex Conference which was held virtually July 20 to 22, 2021 and offered a plenary session entitled “Innovations and Sustainability in Natural Rubber Latex - The New Paradigm.” The presentation discussed the dramatic effect the COVID-19 pandemic has had on the natural rubber supply chain, and how the industry is reacting to new economic circumstances; including strategy and policy shifts in supply chain management and restoring greater geographic diversification of latex processing and product manufacturing. The R&D association with IRMRA promises quicker laboratory and field-based testing and evaluations downstream. At Vystar, the recalibrated sustainability programme (FSC, nitrosamines & ammonia free, ultralow proteins, no SVHC and green carbon neutrality) emphasize certifications with Corrie MacColl market reach facilitating faster rollouts. Nontraditional/non Hevea brasiliensis based production efforts are likely to continue to face new penetration and high cost-benefit acceptance challenges in this decade. A PDF of the full presentation is available on vytex.com.
Additionally, in August 2021, Dr. Matthan presented new data to the Automotive Tyre Manufacturers’ Association including Vytex dry rubber.
In July 2025, the Company unveiled a newly redesigned website, www.vytex.com, as part of a comprehensive brand refresh aimed at improving customer interaction and enhancing digital presence. This initiative aligns with our strategy to provide a more engaging and user-friendly experience for our customers.
About FEC
Vystar is looking to Fluid Energy as it moves forward in its quest for a cleaner and safer environment. The Company is planning to improve its air purifying by using the ultrasonic technology of Fluid Energy and combining it with its leading UV-C technology. The designs and prototypes are in development. This ultrasonic technology is applied into water products with the same goal. We have a prototype and are evaluating our ability to eradicate hard water pollution that fouls pools, fountains, and pumps. By the end of the year, we expect to run a trial on FEC/Hughes devices for hard water abatement and dialysis membrane efficiency. These products will move us toward living more safely and cleanly in our environment.
In May 2025, Vystar announced final testing for the RxAir prototype, integrating the cutting-edge Fluid Energy conversion technology with the Hughes Reactor. This advancement, developed by Dr. Bryan Stone, who serves on Vystar’s board, represents a significant leap in innovation for the Company. We expect testing to be completed by the end of 2026. Due to the fluctuations of tariffs by the U.S. government and cash flows, we expect production in late 2027.
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Other Matters
We are monitoring current developments in trade policy and tariff actions by the U.S. government, including imports from China and baseline tariffs on most imports from most other countries. These tariffs could adversely impact our growth and cost of products sold.
Management Objectives
The COVID-19 pandemic has raised awareness of airborne disease transmission and consumers’ desire to reduce their risk of infection through the use of air purifiers. The Company has pivoted its resources to meeting the demand for air purifiers by adding additional distributors to the RxAir sales network and contracting the development of the next generation RxAir Ultraviolet-C light air purifiers.
Vystar and the Indian Rubber Manufacturers Research Association’s (“IRMRA”) are actively collaborating to develop viscoelastic deproteinized natural rubber (“DPNR”) variants having properties for expanding applications in specific new arenas such as green tires, biodegradable and other unique bioelastoplast product lines that desire a new approach.
Vystar entered into a Market Development and Distribution Agreement with Corrie MacColl to produce, develop and manage the Vytex product and supply lines. This agreement allows Vystar to expand the market for its Natural Rubber Latex products.
Vystar has expanded Vytex into the consumer arena with an introduction into the bedding category, aligning with key foam manufacturers to create mattresses, mattress toppers and pillows. Through this effort, Vystar can bring the benefits of great sleep and a more natural product to the public.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. As such, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty. Our management reviews its estimates on an on-going basis. We base our estimates and assumptions on historical experience, knowledge of current conditions and our understanding of what we believe to be reasonable that might occur in the future considering available information. Actual results may differ from these estimates, and material effects on our operating results and financial position may result.
We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.
Fair Value Inputs Related to Share-based and Other Equity Compensation
Generally accepted accounting principles require all share-based payments, including grants of employee stock options, stock grants and warrants, to be recognized in the financial statements based on their fair values. We compute the value of option awards granted by utilizing the Black-Scholes valuation model based upon their expected lives, expected volatility, expected dividend yield, and the risk-free interest rate. The value of the awards is then straight-line expensed over the service period of the awards. Issuance in shares of common stock is valued using the closing market price on the measurement date.
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Inventories
Inventories include those costs directly attributable to the product before sale. Inventories consist primarily of RxAir purifiers, foam toppers and pillows and are carried at net realizable value, which is defined as selling price less cost of completion, disposal and transportation. The Company evaluates the need to record write-downs for inventories on a regular basis. Approximate consideration is given to obsolescence, slow-moving and other factors in evaluating net realizable values. Inventories not expected to be sold within 12 months are classified as long-term.
Revenue
We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when product is shipped based on fulfillment by the Company. The Company considers fulfillment when it passes all liability at the point of shipping through third party carriers. Consideration is typically paid prior to shipment via credit card or check when our products are sold direct to consumers, which is typically within a 1 to 2 days or approximately 30 days from the time control is transferred when sold to wholesalers, distributors and retailers. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenue. We assess our estimates of expected returns at each financial reporting date.
Valuation and Impairment of Intangible and Long-Lived Assets
We perform an impairment assessment of intangible assets including goodwill annually or more frequently as warranted by events or changes in circumstances. We review long-lived assets such as property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the total of the estimated undiscounted future cash flows is less than the carrying value of the assets, an impairment loss is recognized for the excess of the carrying value over the fair value of the long-lived assets.
Accounting for Derivative Financial Instruments
The Company evaluates stock options, stock warrants, notes payable or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of ASC 815-40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative instrument and is marked-to-market at each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Financial instruments that are initially classified as equity that become subject to reclassification under ASC 815-40 are reclassified to a liability account at the fair value of the instrument on the reclassification date.
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RESULTS OF OPERATIONS
Year ended December 31, 2025 compared to year ended December 31, 2024
| Year Ended December 31, | ||||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||||
| CONSOLIDATED | ||||||||||||||||
| Revenue | $ | 54,821 | $ | 135,969 | $ | (81,148 | ) | -59.7 | % | |||||||
| Cost of revenue | 23,006 | 66,328 | (43,322 | ) | -65.3 | % | ||||||||||
| Gross profit | 31,815 | 69,641 | (37,826 | ) | -54.3 | % | ||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and commissions | 451 | 8,770 | (8,319 | ) | -94.9 | % | ||||||||||
| Share-based compensation | 687,188 | 893,138 | (205,950 | ) | -23.1 | % | ||||||||||
| Professional fees | 232,978 | 342,527 | (109,549 | ) | -32.0 | % | ||||||||||
| Advertising | 4,442 | 1,163 | 3,279 | 281.9 | % | |||||||||||
| Consulting | - | 180,000 | (180,000 | ) | -100.0 | % | ||||||||||
| Rent | 42,330 | 51,308 | (8,978 | ) | -17.5 | % | ||||||||||
| Service charges | 1,166 | 1,121 | 45 | 4.0 | % | |||||||||||
| Depreciation and amortization | 67,442 | 74,506 | (7,064 | ) | -9.5 | % | ||||||||||
| Other operating | 56,358 | 34,687 | 21,671 | 62.5 | % | |||||||||||
| Total operating expenses | 1,092,355 | 1,587,220 | (494,865 | ) | -31.2 | % | ||||||||||
| Loss from operations | (1,060,540 | ) | (1,517,579 | ) | 457,039 | -30.1 | % | |||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (404,406 | ) | (247,588 | ) | (156,818 | ) | 63.3 | % | ||||||||
| Gain (loss) on settlement of liabilities, net | (66,448 | ) | 77,560 | (144,008 | ) | -185.7 | % | |||||||||
| Other income | - | 15,540 | (15,540 | ) | -100.0 | % | ||||||||||
| Total other income (expense), net | (470,854 | ) | (154,488 | ) | (316,366 | ) | 204.8 | % | ||||||||
| Net loss from continuing operations | (1,531,394 | ) | (1,672,067 | ) | 140,673 | -8.4 | % | |||||||||
| Discontinued operations: | ||||||||||||||||
| Income (loss) from operations | (456 | ) | 4,192,379 | (4,192,835 | ) | -100.0 | % | |||||||||
| Net income (loss) | (1,531,850 | ) | 2,520,312 | (4,052,162 | ) | -160.8 | % | |||||||||
| Net (income) loss attributable to noncontrolling interest | 192 | (1,760,799 | ) | 1,760,991 | -100.0 | % | ||||||||||
| Net income (loss) attributable to Vystar | $ | (1,531,658 | ) | $ | 759,513 | $ | (2,291,171 | ) | -301.7 | % | ||||||
Revenues
Consolidated revenues for the year ended December 31, 2025 and 2024 were $54,821 and $135,969, respectively, for a decrease of $81,148 or 59.7%. The decrease in revenues was due in part to reduced sales to a former major customer and a special bulk sale of Vytex products in 2024. The Company will aggressively review its pricing and sales strategies in 2026.
Consolidated gross profit for the year ended December 31, 2025 and 2024 was $31,815 and $69,641, respectively, for a decrease of $37,826 or 54.3%. Consolidated cost of revenue for year ended December 31, 2025 and 2024 was $23,006 and $66,328, respectively, a decrease of $43,322 or 65.3%. The decrease in gross profit and decrease in cost of revenue was due to decreased sales and increased channel costs.
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Operating Expenses
The Company’s operating expenses consist primarily of share-based compensation and other general and administrative costs, including professional fees related to accounting, finance, and legal services as well as other operating expenses such as rent and consulting. The Company’s consolidated operating expenses was $1,092,355 and $1,587,220 for the year ended December 31, 2025 and 2024, respectively, for a decrease of $494,865 or 31.2%. The decrease in operating expenses was due to a temporary suspension of consulting fees to Blue Oar Consulting, Inc. (“Blue Oar”), decrease in professional fees consistent with the winding down of litigation matters, and share-based compensation consistent with higher common stock prices.
Other Income (Expense)
Other income (expense), net for the year ended December 31, 2025 and 2024 was $(470,854) and $(154,488), respectively, for an increase of $316,366 or 204.8%. The increase in other expenses is primarily due to increases in interest expense of $156,818 and a change in net loss on settlement of liabilities of $144,008.
Discontinued Operations
Income (loss) from discontinued operations for the year ended December 31, 2025 and 2024 was $(456) and $4,192,379, respectively, for a decrease of $4,192,835 or 100%. The decrease was attributable to the derecognition of Rotmans facility lease and the winding down of operations in 2024.
Net Income (Loss)
Net income (loss) for the year ended December 31, 2025 and 2024 was $(1,531,850) and $2,520,312, respectively. Net income in 2024 includes income from discontinued operations of $4,192,379.
LIQUIDITY AND CAPITAL RESOURCES
The Company’s financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. However, we have incurred significant losses and experienced negative cash flow since inception. At December 31, 2025, the Company had cash of $4,454 and a deficit in working capital of $6,614,169. For the year ended December 31, 2025, the Company had a net loss of $1,531,850 and an accumulated deficit of $61,384,883. For the year ended December 31, 2024, the Company had a net income of $2,520,312 and the accumulated deficit amounted to $59,853,225. We use working capital to finance our ongoing operations, and since those operations do not currently cover all of our operating costs, managing working capital is essential to our Company’s future success. Because of this history of losses and financial condition, there is substantial doubt about the Company’s ability to continue as a going concern.
Net cash used in operating activities was $180,393 for the year ended December 31, 2025 as compared to $99,962 for the year ended December 31, 2024. During the year ended December 31, 2025, cash used in operations was primarily due to an operating loss from operations, which was offset by expenses paid directly by related parties of approximately $106,000 and non-cash expenses of share-based compensation, depreciation and amortization.
The Company had no cash flows provided by investing activities during the year ended December 31, 2025. The Company had cash flows provided by investing activities from discontinued operations of $1,000 during the year ended December 31, 2024 for sales of property and equipment.
Net cash provided by financing activities was $176,679 and $61,986 during the year ended December 31, 2025 and 2024, respectively. During 2025, cash was provided from advances from stock subscriptions of $208,636, proceeds of related party advances of $2,000 and proceeds from common stock issuances of $16,364. Cash was used in financing activities during the year for repayments of related party debt of $41,527 and related party advances of $8,794. During 2024, cash of $61,986 was provided by discontinued operations.
| 20 |
A successful transition to profitable operations is dependent upon obtaining sufficient financing to fund the Company’s planned expenses and achieving a level of revenue adequate to support the Company’s cost structure. Management plans to finance future operations using cash on hand, as well as increased revenue from RxAir air purifier sales and Vytex license fees, that now also include the Company’s association with foam cores made from Vytex used in mattresses, mattress toppers and pillows.
There can be no assurances that we will be able to achieve projected levels of revenue in 2026 and beyond. If we are not able to achieve projected revenue and obtain alternate additional financing of equity or debt, we would need to significantly curtail or reorient operations during 2026, which could have a material adverse effect on our ability to achieve our business objectives and as a result, may require the Company to file for bankruptcy or cease operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts classified as liabilities that might be necessary should the Company be forced to take any such actions.
Our future expenditures will depend on numerous factors, including: the rate at which we can introduce RxAir products and license Vytex NRL raw material and the foam cores made from Vytex to manufacturers and subsequently retailers; the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights, along with market acceptance of our products, and services and competing technological developments. As we expand our activities and operations, our cash requirements are expected to increase at a rate consistent with revenue growth after we achieve sustained revenue generation.
Off-Balance Sheet Arrangements
We do not have any material off-balance sheet arrangements.
Certain Relationships and Related Transactions
Jamie Rotman was appointed as President of the Company effective December 21, 2023. She is the daughter of the Company’s former CEO, Steven Rotman. On July 22, 2024, the Company entered into an Employment Agreement (the “Employment Agreement”) with Ms. Jamie Rotman, under which Ms. Rotman receives annual compensation equal to $180,000 payable in Series C Preferred Stock or common stock, either at Ms. Rotman’s discretion, discounted 50% over the then market price (and payable in cash at Ms. Rotman’s discretion), plus a signing bonus of $25,000 payable in shares of Series C Preferred Stock, vesting over 2024. The Employment Agreement was made retroactive to January 1, 2024. The Employment Agreement also provides for a 24-month severance payment upon termination without cause (as defined) and a 24 month change in control severance.
During the year ended December 31, 2025, the Company expensed approximately $375,000 related to this employment agreement. As of December 31, 2025, the Company had a stock subscription payable balance of $738,684 or approximately 28,072,000 shares of common stock to Ms. Rotman.
Blue Oar provides business consulting services to the Company. This entity is owned by Gregory Rotman, who is the brother of the Company’s CEO, Jamie Rotman. In exchange for such services, the Company has entered into a consulting agreement with the related party entity. Per the consulting agreement, Blue Oar is to be paid $15,000 per month in cash for expenses, and $12,500 per month to be paid in shares based on a 20-day average at a 50% discount to market. The Company and Blue Oar mutually agreed to temporarily suspend the monthly payment for expenses beginning in January 2025. During the year ended December 31, 2025, the Company expensed approximately $312,000 related to the consulting agreement. Vystar issued 4,036,812 shares of common stock during 2025 for prior accrued share-based compensation totaling $63,806. As of December 31, 2025, the Company had a stock subscription payable balance of $1,099,573, or approximately 109,368,000 shares to be issued in the future and $405,000 of consulting expenses in accounts payable to this entity.
Dr. Bryan Stone receives a $25 per unit commission for RxAir units sold to a specific customer. During the year ended December 31, 2025, commissions of $124 were due to Dr. Stone and included in accrued expenses.
| 21 |
| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
As a smaller reporting company, we are not required to provide the information required by this Item pursuant to 301(c) of Regulation S-K.
| ITEM 8. | INDEX TO FINANCIAL STATEMENTS |
| 22 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Vystar Corporation:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Vystar Corporation. (the “Company”) as of December 31, 2025 and 2024, and the related financial statements of operations, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has incurred significant losses and experienced negative cash flow since inception. At December 31, 2025, the Company had cash of $4,454 and a deficit in working capital of approximately $6.6 million. Further, at December 31, 2025 the accumulated deficit amounted to approximately $61.4 million. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
/s/
We have served as the Company’s auditor since 2020
April 15, 2026
| F-1 |
VYSTAR CORPORATION
CONSOLIDATED BALANCE SHEETS
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Inventories | ||||||||
| Prepaid expenses and other | ||||||||
| Assets of discontinued operations | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Other assets: | ||||||||
| Intangible assets, net | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses | ||||||||
| Related party stock subscription payable | ||||||||
| Stock subscription payable, net of related party | ||||||||
| Shareholder, convertible and contingently convertible notes payable and accrued interest - current maturities | ||||||||
| Related party debt - current maturities, net of debt discount | ||||||||
| Derivative liabilities | ||||||||
| Unearned revenue | ||||||||
| Related party advances | ||||||||
| Liabilities of discontinued operations | ||||||||
| Total current liabilities | ||||||||
| Stockholders’ deficit: | ||||||||
| Convertible preferred stock series class A, $ par value shares authorized; shares issued and outstanding at December 31, 2025 and 2024 (liquidation preference of $ | ||||||||
| Convertible preferred stock series class B, $ par value shares authorized; and shares issued and outstanding at December 31, 2025 and 2024, respectively (liquidation preference of $ | ||||||||
| Convertible preferred stock series class C, $ par value shares authorized; shares issued and outstanding at December 31, 2025 and 2024, respectively (liquidation preference of $ | ||||||||
| Common stock, $ par value, shares authorized; and shares issued at December 31, 2025 and December 31, 2024, respectively, and and shares outstanding at December 31, 2025 and 2024, respectively | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Common stock in treasury, at cost; shares | ( | ) | ( | ) | ||||
| Total Vystar stockholders’ deficit | ( | ) | ( | ) | ||||
| Noncontrolling interest | ( | ) | ( | ) | ||||
| Total stockholders’ deficit | ( | ) | ( | ) | ||||
| Total liabilities and stockholders’ deficit | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-2 |
VYSTAR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | $ | ||||||
| Cost of revenue | ||||||||
| Gross profit | ||||||||
| Operating expenses: | ||||||||
| Salaries and commissions | ||||||||
| Share-based compensation | ||||||||
| Professional fees | ||||||||
| Advertising | ||||||||
| Consulting | ||||||||
| Rent | ||||||||
| Service charges | ||||||||
| Depreciation and amortization | ||||||||
| Other operating | ||||||||
| Total operating expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| Gain (loss) on settlement of liabilities, net | ( | ) | ||||||
| Other income | ||||||||
| Total other income (expense), net | ( | ) | ( | ) | ||||
| Net loss from continuing operations | ( | ) | ( | ) | ||||
| Discontinued operations: | ||||||||
| Income (loss) from operations | ( | ) | ||||||
| Net income (loss) | ( | ) | ||||||
| Net (income) loss attributable to noncontrolling interest | ( | ) | ||||||
| Net income (loss) attributable to Vystar | $ | ( | ) | $ | ||||
| Basic and diluted loss per share: | ||||||||
| Net loss from continuing operations | $ | ) | $ | ) | ||||
| Net income (loss) from discontinued operations | $ | ) | $ | |||||
| Net income (loss) attributable to noncontrolling interest | $ | ( | ) | $ | ||||
| Net income (loss) attributable to common shareholders | $ | ( | ) | $ | ||||
| Basic and diluted weighted average number of common shares outstanding | ||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-3 |
VYSTAR CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
| Attributable to Vystar | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number | Number | Number | Number | Number | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | of | of | of | Additional | of | Vystar | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred | Preferred | Preferred | Preferred | Preferred | Preferred | Common | Common | Paid-in | Accumulated | Treasury | Treasury | Stockholders’ | Noncontrolling | Stockholders’ | ||||||||||||||||||||||||||||||||||||||||||||||
| Shares A | Stock A | Shares B | Stock B | Shares C | Stock C | Shares | Stock | Capital | Deficit | Shares | Stock | Deficit | Interest | Deficit | ||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance December 31, 2023 | $ | $ | $ | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||||||||||||||
| Preferred stock conversion to common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued for share-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance December 31, 2024 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock conversion to common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued for share-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance December 31, 2025 | $ | $ | $ | $ | $ | $ | ( | ) | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-4 |
VYSTAR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | ( | ) | $ | ||||
| Adjustments to reconcile net income (loss) to net cash used in continuing operations: | ||||||||
| Share-based compensation | ||||||||
| Depreciation | ||||||||
| Amortization of intangible assets | ||||||||
| Amortization of debt discount | ||||||||
| Unamortized term debt issuance costs | ||||||||
| (Gain) loss on settlement of liabilities, net | ( | ) | ||||||
| Gain on sale of property and equipment | ( | ) | ||||||
| Expenses paid directly by related party debt | ||||||||
| Expenses paid directly by related party advances | ||||||||
| (Increase) decrease in assets: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Inventories | ( | ) | ||||||
| Prepaid expenses and other | ( | ) | ||||||
| Assets of discontinued operations | ||||||||
| Increase (decrease) in liabilities: | ||||||||
| Accounts payable | ||||||||
| Accrued expenses and interest payable | ||||||||
| Unearned revenue | ( | ) | ||||||
| Liabilities of discontinued operations | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash flows from discontinued operations | ||||||||
| Cash flows from financing activities: | ||||||||
| Repayment of related party term debt | ( | ) | ||||||
| Proceeds from related party advances | ||||||||
| Repayment of related party advances | ( | ) | ||||||
| Advances from stock subscription payable | ||||||||
| Proceeds from issuance of common stock | ||||||||
| Cash flows from discontinued operations, net | ||||||||
| Net cash provided by financing activities | ||||||||
| Net decrease in cash | ( | ) | ( | ) | ||||
| Cash - beginning of year | ||||||||
| Cash - end of year | ||||||||
| Less: cash of discontinued operations | ||||||||
| Cash of continuing operations - end of year | $ | $ | ||||||
| Cash paid during the year for: | ||||||||
| Interest | $ | $ | ||||||
| Taxes | $ | $ | ||||||
| Non-cash transactions: | ||||||||
| Related party advances converted to term debt | $ | $ | ||||||
| Related party term debt issuance costs | ||||||||
| Derivatives issued as a debt discount | ||||||||
| Stock subscription payable issued for settlement of debt and accrued interest | ||||||||
| Common stock issued for accrued share-based compensation | ||||||||
| Common stock issued for settlement of debt and accrued interest | ||||||||
| Rotmans lease liabilities reduction from lease derecognition | ||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-5 |
VYSTAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025 and 2024
| NOTE 1 - | DESCRIPTION OF BUSINESS |
Nature of Business
Vystar Corporation (“Vystar”, the “Company”, “we,” “us,” or “our”) is based in Worcester, Massachusetts and produces a line of innovative air purifiers, which destroy viruses and bacteria through the use of ultraviolet light. Vystar is also the creator and exclusive owner of the innovative technology to produce Vytex® Natural Rubber Latex (“NRL”). Vystar manufactures and sells NRL used primarily in various bedding products. In addition, Vystar previously had a majority ownership in Murida Furniture Co., Inc. dba Rotmans Furniture (“Rotmans”), formerly one of the largest independent furniture retailers in the U.S.
Additional disclosure can be found in Note 16. All activities of Rotmans have been included in discontinued operations. Other references to Rotmans in the accompanying notes, excluding Note 16, are for informational purposes only.
| NOTE 2 - | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation
The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as codified in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification.
The Company has evaluated subsequent events through the date of the filing of its Form 10-K with the Securities and Exchange Commission. Other than those events disclosed in Note 18, the Company is not aware of any other significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the Company’s financial statements.
Basis of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Discontinued Operations
In accordance with ASC No. 205-20, Discontinued Operations, for all periods presented, the results of operations and related balance sheet items associated with Rotmans are reported in discontinued operations in the accompanying consolidated financial statements. See Note 16 for further details.
Segment Reporting
Vystar
Corporation has
| F-6 |
Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Significant estimates made by management include, among others, allowance for obsolete inventory, the recoverability of long-lived assets, valuation and impairment of intangible assets, fair values of right of use assets and lease liabilities, valuation of derivative liabilities, share-based compensation and other equity issuances. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results could differ from these estimates.
Fair Value of Financial Instruments
The Company’s financial instruments consist principally of cash, accounts receivable, investments - equity securities, accounts payable, accrued expenses and interest payable, shareholder notes payable, long-term debt and unearned revenue. The carrying values of all the Company’s financial instruments approximate or equal fair value because of their short maturities and market interest rates or, in the case of equity securities, being stated at fair value.
In specific circumstances, certain assets and liabilities are reported or disclosed at fair value. Fair value is the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the Company’s principal market for such transactions. If there is not an established principal market, fair value is derived from the most advantageous market.
Valuation inputs are classified in the following hierarchy:
| ● | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | |
| ● | Level 2 inputs are directly or indirectly observable valuation inputs for the asset or liability, excluding Level 1 inputs. | |
| ● | Level 3 inputs are unobservable inputs for the asset or liability. |
Highest priority is given to Level 1 inputs and the lowest priority to Level 3 inputs. Acceptable valuation techniques include the market approach, income approach, and cost approach. In some cases, more than one valuation technique is used. The derivative liabilities were recognized at fair value on a recurring basis through the date of the settlement and December 31, 2025 and are level 3 measurements. There have been no transfers between levels during the year ended December 31, 2025.
Cash and Cash Equivalents
Cash and cash equivalents include all liquid investments with a maturity date of less than three months when purchased. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions which typically settle within five days.
Accounts Receivable
Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company grants credit to Vystar customers without requiring collateral. The amount of accounting loss for which Vystar is at risk in these unsecured accounts receivable is limited to their carrying value. Management provides for uncollectible amounts through a charge to earnings and a credit to an allowance for credit losses based upon its assessment of the current status of individual accounts. Balances that are still outstanding after management has performed reasonable collection efforts are written off through a charge to the allowance and a credit to accounts receivable. An allowance for credit losses was not needed at December 31, 2025 and 2024.
Inventories
Inventories include those costs directly attributable to the product before sale. Inventories consist primarily of finished goods of mattresses, RxAir purifier units and cartridges, foam toppers, pillows and bed in a box products and are carried at net realizable value, which is defined as selling price less cost of completion, disposal and transportation. Vystar evaluates the need to record write-downs for inventory on a regular basis. Appropriate consideration is given to obsolescence, slow-moving and other factors in evaluating net realizable values. Inventories not expected to be sold within 12 months are classified as long-term.
| F-7 |
Inventories consist of the following:
| 2025 | 2024 | |||||||
| Finished goods | $ | $ | ||||||
| Obsolescence reserve | ( | ) | ( | ) | ||||
| Total inventories | $ | $ | ||||||
The
Company increased its obsolescence reserve by $
Prepaid Expenses and Other
Prepaid
expenses and other generally include restricted cash, amounts related to prepaid expenses, which are expensed on a straight-line basis
over the life of the underlying expenditure, and other expenses. As of December 31, 2025 and 2024, prepaid expenses and other primarily
consisted of consulting services related to future research and development for its RxAir division. These services totaled $
Property and Equipment
Property
and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets,
generally
Expenditures
for major renewals and betterments are capitalized, while routine repairs and maintenance are expensed as incurred. When property items
are retired or otherwise disposed of, the asset and related reserve accounts are relieved of the cost and accumulated depreciation, respectively,
and the resultant gain or loss is reflected in earnings. As of December 31, 2025 and 2024, the net balance of property and equipment
for Vystar is $
Intangible Assets
Patents
represent legal and other fees associated with the registration of patents. Vystar has five issued patents with the United States Patent
and Trade Office (“USPTO”), as well as five issued international Patent Cooperation Treaty (“PCT”) patents. Patents
are carried at cost and are being amortized on a straight-line basis over their estimated useful lives, typically ranging from
Vystar has trademark protection for “Vystar”, “Vytex”, and “RxAir” among others. Trademarks are carried at cost and since their estimated life is indeterminable, no amortization is recognized. Instead, they are evaluated annually for impairment.
Tradename
and marketing related intangibles are carried at cost and are being amortized on a straight-line basis over their estimated useful lives,
typically ranging from
Our intangible assets are reviewed for impairment annually or more frequently as warranted by events of changes in circumstances. There were no impairment losses in 2025 or 2024.
| F-8 |
Long-Lived Assets
We review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. We evaluate assets for potential impairment by comparing estimated future undiscounted net cash flows to the carrying amount of the assets. If the carrying amount of the assets exceeds the estimated future undiscounted cash flows, impairment is measured based on the difference between the carrying amount of the assets and fair value. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet, if material.
Convertible Notes Payable
Borrowings are recognized initially at the principal amount received. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as interest expense in the statements of operations over the period of the borrowings using the effective interest method.
Derivatives
The Company evaluates its debt instruments or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of Accounting Standards Codification (“ASC”) Topic 815-40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative instrument and is marked-to-market at each balance sheet date and recorded as a liability. In the event the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Financial instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815-40 are reclassified to a liability account at the fair value of the instrument on the reclassification date.
The Company applies the accounting standard that provides guidance for determining whether an equity-linked financial instrument, or embedded feature, is indexed to an entity’s own stock. The standard applies to any freestanding financial instrument or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own common stock. From time to time, the Company has issued notes with embedded conversion features. Certain of the embedded conversion features contain price protection or anti-dilution features that result in these instruments being treated as derivatives for accounting purposes.
Unearned Revenue
Unearned revenue consists of customer advance payments, deposits on sales of undelivered merchandise and deferred warranty revenue on self-insured stain protection warranty coverage.
| F-9 |
Changes to unearned revenue during the years ended December 31, 2025 and 2024 are summarized as follows:
| 2025 | 2024 | |||||||
| Balance, beginning of the year | $ | $ | ||||||
| Customer deposits received | ||||||||
| Revenue earned | ( | ) | ||||||
| Balance, end of the year | $ | $ | ||||||
The Company presents basic and diluted income (loss) per share and is reported separately for continuing operations and discontinued operations. Due to exercise prices and market values at December 31, 2025 and 2024, common stock equivalents, including stock options and warrants, were anti-dilutive; therefore, the amounts reported for basic and dilutive loss per share were the same. Excluded from the computation of diluted loss per share were options to purchase and shares of common stock for 2025 and 2024, respectively, as their effect would be anti-dilutive. Warrants to purchase and shares of common stock for 2025 and 2024, respectively, were also excluded from the computation of diluted loss per share as their effect would be anti-dilutive. In addition, preferred stock convertible to and shares of common stock for 2025 and 2024, respectively, were excluded from the computation of diluted loss per share as their effect would be anti-dilutive. Both shareholder and Rotman Family contingently convertible notes payable convertible to and shares of common stock for 2025 and 2024, respectively, were also excluded from the computation of diluted loss per share as their effect would be anti-dilutive.
Revenue
Our principal activities from which we generate our revenue are product sales. Revenue is measured based on considerations specified in a contract with a customer. A contract exists when it becomes a legally enforceable agreement with a customer. The contract is based on either the acceptance of standard terms and conditions at the retail store and on the websites for e-commerce customers, or the execution of terms and conditions contracts with retailers and wholesalers. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale.
Consideration is typically paid prior to shipment via credit card or check when our products are sold direct to consumers, which is typically within 1 to 2 days or approximately 30 days from the time control is transferred when sold to wholesalers, distributors and retailers. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer.
A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for us is transfer of finished goods to our customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. We have concluded the sale of finished goods and related shipping and handling are accounted for as the single performance obligation.
| F-10 |
The
transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer
receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which we will be
entitled to receive in exchange for transferring goods to the customer. We issue refunds to retail, e-commerce and print media customers,
upon request, within 30 days of delivery. We estimate the amount of potential refunds at each reporting period using a portfolio approach
of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. For
retailers, distributors and wholesalers, we do not offer a right of return or refund and revenue is recognized at the time products are
shipped to customers. In all cases, judgment is required in estimating these reserves. Actual claims for returns could be materially
different from the estimates. As of December 31, 2025 and 2024, reserves for Vystar estimated sales returns totaled $
We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when product is shipped based on fulfillment by the Company. The Company considers fulfillment when it passes all liability at the point of shipping through third-party carriers. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenue in the accompanying consolidated statements of operations.
Cost of Revenue
Cost of revenue consists primarily of product and freight costs and fees paid to online retailers.
Research and Development
Research and development costs are expensed when incurred. Research and development costs include all costs incurred related to the research, development and testing. These costs were not significant in 2025 and 2024.
Advertising Costs
Advertising
costs, which include digital and other media advertising, are expensed upon first showing. Vystar costs included in general and administrative
expenses in the accompanying consolidated statements of operations were approximately $
Share-Based Compensation
The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model, based on weighted average assumptions. Expected volatility is based on historical volatility of our common stock. Vystar has elected to use the simplified method described in the Securities and Exchange Commission Staff Accounting Bulletin Topic 14C to estimate the expected term of employee stock options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The value of restricted stock awards is determined using the fair value of the Vystar’s common stock on the date of grant. Vystar accounts for forfeitures as they occur. Compensation expense is recognized on a straight-line basis over the requisite service period of the award.
Income Taxes
Vystar
recognizes income taxes on an accrual basis based on a tax position taken or expected to be taken in its tax returns. A tax position
is defined as a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected
in measuring current or deferred income tax assets or liabilities. Tax positions are recognized only when it is more likely than not
(i.e., likelihood of
| F-11 |
The Company remains subject to income tax examinations from Federal and state taxing jurisdictions for 2022 through 2025.
Concentration of Credit Risk
Certain financial instruments potentially subject the Company to concentrations of credit risk. These financial instruments consist primarily of cash and accounts receivable. Cash held in operating accounts may exceed the Federal Deposit Insurance Corporation, or FDIC, insurance limits. While the Company monitors cash balances in our operating accounts on a regular basis and adjust the balances as appropriate, these balances could be impacted if the underlying financial institutions fail. To date, the Company has experienced no loss or lack of access to our cash; however, the Company can provide no assurances that access to our cash will not be impacted by adverse conditions in the financial markets. Credit concentration risk related to accounts receivable is mitigated as customer credit is checked prior to the sales.
Other Risks and Uncertainties
Vystar is exposed to risks pertinent to the operations of a retailer, including, but not limited to, the ability to acquire new customers and maintain a strong brand as well as broader economic factors such as interest rates and changes in customer spending patterns.
Recent Accounting Pronouncements
On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU standardizes categories for the effective tax rate reconciliation, requires disaggregation of income taxes paid and additional income tax related disclosures, and is effective for the Company for annual fiscal periods beginning after December 31, 2024. The Company has adopted ASU 2023-09 for the 2025 calendar year retrospectively. Because the ASU affects disclosures only, the adoption did not affect the Company’s Consolidated Statements of Operations or Consolidated Balance Sheets.
| NOTE 3 - | LIQUIDITY AND GOING CONCERN |
The
Company’s financial statements are prepared using the accrual method of accounting in accordance with U.S. GAAP and have been prepared
on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business.
However, Vystar has incurred significant losses and experienced negative cash flow since inception. At December 31, 2025, the Company
had cash of $
A successful transition to attaining profitable operations is dependent upon obtaining sufficient financing to fund the Vystar’s planned expenses and achieving a level of revenue adequate to support the Vystar’s cost structure. Management plans to finance future operations using cash on hand, increased revenue from RxAir air purification units, Vytex license fees and stock issuances to new and existing shareholders.
There can be no assurances Vystar will be able to achieve projected levels of revenue in 2026 and beyond. If Vystar is not able to achieve projected revenue and obtain alternate additional financing of equity or debt, Vystar would need to significantly curtail or reorient operations during 2026, which could have a material adverse effect on the ability to achieve the business objectives, and as a result, may require Vystar to file for bankruptcy or cease operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts classified as liabilities that might be necessary should Vystar be forced to take any such actions.
| F-12 |
Vystar’s future expenditures will depend on numerous factors, including: the rate at which the Company can introduce RxAir air purification units and license Vytex NRL raw materials to manufacturers, and subsequently retailers; the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; market acceptance of Vystar’s products, services and competing technological developments; acquire new customers and maintain a strong brand; and broader economic factors such as interest rates and changes in customer spending patterns. As Vystar expands its activities and operations, cash requirements are expected to increase at a rate consistent with revenue growth after Vystar has achieved sustained revenue generation.
NOTE 4 - PROPERTY AND EQUIPMENT
Property and equipment, net consists of the following:
| 2025 | 2024 | |||||||
| Tooling and testing equipment | $ | $ | ||||||
| Furniture and fixtures | ||||||||
| Accumulated depreciation | ( | ) | ( | ) | ||||
| Property and equipment, net | $ | $ | ||||||
Depreciation
expense for the years ended December 31, 2025 and 2024 was $
| NOTE 5 - | INTANGIBLE ASSETS |
Intangible assets consist of the following:
| Amortization | ||||||||||||
| Period | ||||||||||||
| 2025 | 2024 | (in Years) | ||||||||||
| Amortized intangible assets: | ||||||||||||
| Patents | $ | $ | ||||||||||
| Proprietary technology | ||||||||||||
| Tradename and brand | ||||||||||||
| Total | ||||||||||||
| Accumulated amortization | ( | ) | ( | ) | ||||||||
| Intangible assets, net | ||||||||||||
| Indefinite-lived intangible assets: | ||||||||||||
| Trademarks | ||||||||||||
| Total intangible assets | $ | $ | ||||||||||
| F-13 |
Amortization
expense for the years ended December 31, 2025 and 2024 was $
Estimated future amortization expense for finite-lived intangible assets is as follows:
| Amount | ||||
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total | $ | |||
| NOTE 6 - | LEASES (DISCONTINUED OPERATIONS) |
With
the winding up of operations in 2023, Rotmans terminated its delivery leases and returned the right-of-use assets to the lessor. A settlement
liability of $
There
is one operating lease obligation remaining as of December 31, 2025 which is in arrears totaling $
As of December 31, 2025, Vystar and Rotmans does not have any operating and finance leases that have not yet commenced.
| NOTE 7 - | NOTES PAYABLE AND LOAN FACILITY |
Shareholder, Convertible and Contingently Convertible Notes Payable
The following table summarizes shareholder, convertible and contingently convertible notes payable:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Shareholder, convertible and contingently convertible notes | $ | $ | ||||||
| Accrued interest | ||||||||
| Less: current maturities | ( | ) | ( | ) | ||||
| $ | $ | |||||||
| F-14 |
Shareholder Convertible Notes Payable
During the year ended December 31, 2018, the Vystar issued shareholder contingently convertible notes payable, some of which were for contract work performed by other entities in lieu of compensation and expense reimbursement, totaling approximately $. The notes are (i) unsecured, (ii) bear interest at an annual rate of five percent (%) from date of issuance, and (iii) are convertible at Vystar’s option post April 19, 2018. All of these notes except one were settled in April 2022. The remaining note of $ is in default at December 31, 2025 and 2024. The balance of the note payable including accrued interest is approximately $ and $ at December 31, 2025 and 2024, respectively.
During
the year ended December 31, 2021, Vystar issued certain contingently convertible promissory notes in varying amounts to existing shareholders
which totaled $
In
January 2025, the Company offered two conversion options to the holders of the 2021 contingently convertible promissory notes. Shareholders
were given an opportunity to purchase additional shares of the Company’s common stock at a reduced cost of $ per share. For
those shareholders, their promissory notes would be converted for common stock at a price of $. For those shareholders who did not
purchase additional shares of the Company’s common stock, the conversion price would be $
In
summary, the notes were recast to stock subscription payable for shares of the Company’s common stock to be issued and
a loss on the settlement of debt of $
Prior
to conversion in January 2025, the Company recorded accrued interest of $
Related Party Debt
The following table summarizes related party debt:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Rotman Family convertible note | $ | $ | ||||||
| Rotman Family nonconvertible notes | ||||||||
| Accrued interest | ||||||||
| Debt discount | ( | ) | ( | ) | ||||
| Less: current maturities | ( | ) | ( | ) | ||||
| $ | $ | |||||||
| F-15 |
Rotman Family Convertible Notes
On
August 17, 2021, Vystar issued a contingently convertible promissory note totaling $
On
June 1, 2024, the Company entered into a term convertible promissory note with Blue Oar. The Company may borrow amounts up to $
On
December 31, 2025, the Company entered into a term convertible promissory note with Blue Oar. The Company may borrow amounts up to $
The following table summarizes the Rotman Family Convertible Notes:
| Carrying Amount | ||||||||||||||
| December 31, | ||||||||||||||
| Issue Date | Principal Amount | 2025 | 2024 | |||||||||||
| Jamie Rotman | $ | $ | $ | |||||||||||
| Blue Oar | ||||||||||||||
| Blue Oar | ||||||||||||||
| Less: debt discount | ( | ) | ( | ) | ||||||||||
| Less: current maturities | ( | ) | ( | ) | ||||||||||
| $ | $ | |||||||||||||
Rotman Family Nonconvertible Note
In
connection with the acquisition of
| F-16 |
The following table summarizes the Rotman Family Nonconvertible Note:
| Carrying Amount | ||||||||||||||||
| December 31, | ||||||||||||||||
| Issue Date | Principal Amount | 2025 | 2024 | |||||||||||||
| Bernard Rotman | $ | $ | $ | |||||||||||||
| NOTE 8 - | DERIVATIVE LIABILITIES |
With the issuance of a related party convertible note on June 1, 2024, the Company recorded a derivative liability for the redemption feature in the loan agreement. The Company analyzed the conversion features of the various note agreements for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to a variable conversion rate. The Company has determined that the conversion feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has bifurcated the conversion feature of the notes and recorded a derivative liability.
The embedded derivatives for the notes are carried on the Company’s consolidated balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the consolidated statement of operations and the associated fair value carrying amount on the consolidated balance sheet is adjusted by the change. The Company fair values the embedded derivative based on the discounted conversion rate of 50% of market rate.
The following tables summarizes the derivative liabilities:
Fair Value of Embedded Derivative Liabilities:
| 2025 | ||||
| Balance, beginning of the year | $ | |||
| Initial measurement of liabilities | ||||
| Change in fair value | ||||
| Balance, end of the year | $ | |||
| NOTE 9 - | STOCKHOLDERS’ DEFICIT |
Cumulative Convertible Preferred Stock
Series A Preferred Stock
On
May 2, 2013, the Company began a private placement offering to sell up to shares of the Company’s
| F-17 |
As
of December 31, 2025, the shares of outstanding preferred stock had undeclared dividends of approximately $
As
of December 31, 2024, the shares of outstanding preferred stock had undeclared dividends of approximately $
Series B Preferred Stock
On
April 11, 2022, the Company amended its Articles of Incorporation to add the terms of a
During the year ended December 31, 2025, shares of outstanding preferred stock were converted to shares of common stock.
As
of December 31, 2025, the shares of outstanding preferred stock had undeclared dividends of approximately $
During the year ended December 31, 2024, shares of outstanding preferred stock were converted to shares of common stock.
As
of December 31, 2024, the shares of outstanding preferred stock had undeclared dividends of approximately $
Series C Preferred Stock
On
July 8, 2022, the Company amended its Articles of Incorporation to add the terms of a
As
of December 31, 2025, the shares of outstanding preferred stock had undeclared dividends of approximately $
| F-18 |
As
of December 31, 2024, the shares of outstanding preferred stock had undeclared dividends of approximately $
Common Stock and Warrants
During the year ended December 31, 2025 and 2024, the Company issued and shares, respectively, of common stock under share-based compensation agreements with related parties.
Included in stock subscription payable at December 31, 2025 and 2024, is $ received under common stock subscription agreements for shares during the year ended December 31, 2020.
The Company received $ under common stock subscription agreements, related to the 2021 shareholder convertible notes conversion, for shares during the year ended December 31, 2025. The Company issued shares of common stock during the year ended December 31, 2025 pertaining to one of the subscription agreements. The remaining shares will be issued at a later date.
The Company also received $ under a separate common stock subscription agreement offered to prior note holders converted in April 2022 to preferred shares. Approximately shares of common stock will be issued under this stock subscription agreement. The Company waived its current restriction on preferred stock conversions for the participating shareholder. The Series B preferred stock conversion was completed in September 2025 and shares of common stock issued. In addition, the Company issued shares of common stock under the stock subscription agreement in September 2025. The remaining shares of common stock will be issued at a later date.
In 2025, the Company received $ and $ under separate common stock subscription agreements for shares and shares, respectively. These shares will be issued at a later date.
The Company issued shares in June 2025 and shares in August 2025 of common stock related to the conversion of the 2021 contingently convertible promissory notes. As of December 31, 2025, shares of common stock are included in stock subscription payable related to the 2021 contingently convertible promissory notes conversions. Refer to Note 7 for more information.
Stock Subscription Payable
At
December 31, 2025 and 2024, Vystar recorded $
| Related Party | Other | Total | ||||||||||||||||||||||
| Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||
| Balance, January 1, 2024 | $ | $ | $ | |||||||||||||||||||||
| Additions, net | ||||||||||||||||||||||||
| Issuances, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
| Balance, December 31, 2024 | ||||||||||||||||||||||||
| Additions, net | ||||||||||||||||||||||||
| Issuances, net | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| Balance, December 31, 2025 | $ | $ | $ | |||||||||||||||||||||
NOTE 10 - REVENUES
The following table presents our revenues disaggregated by each major product category and service for the last two years:
| 2025 | 2024 | |||||||||||||||
| % of | % of | |||||||||||||||
| Net Sales | Net Sales | Net Sales | Net Sales | |||||||||||||
| Air Purification Units | $ | $ | ||||||||||||||
| Mattresses and Toppers | ||||||||||||||||
| Royalties and other | ||||||||||||||||
| $ | $ | |||||||||||||||
| NOTE 11 - | SHARE-BASED COMPENSATION |
Generally accepted accounting principles require share-based payments to employees, including grants of employee stock options, warrants, and common stock to be recognized in the income statement based on their fair values at the date of grant, net of estimated forfeitures.
In total, Vystar recorded $ and $ of share-based compensation for the years ended December 31, 2025 and 2024, respectively, including shares to be issued related to consultants and board member stock options and common stock and warrants issued to non-employees. Included in stock subscription payable is accrued share-based compensation of $ and $ at December 31, 2025 and 2024, respectively.
Vystar used the Black-Scholes option pricing model to estimate the grant-date fair value of option and warrant awards:
| ● | Expected Dividend Yield - because Vystar does not currently pay dividends, the expected dividend yield is ; | |
| ● | Expected Volatility in Stock Price - volatility based on Vystar’s trading activity was used to determine expected volatility; | |
| ● | Risk-free Interest Rate - reflects the average rate on a United States Treasury Bond with a maturity equal to the expected term of the option; and | |
| ● | Expected Life of Award - because we have minimal experience with the exercise of options or warrants for use in determining the expected life of each award, we used the option or warrant’s contractual term as the expected life. |
| F-19 |
For the year ended December 31, 2025 and 2024, there were share-based compensation expense related to employee and board members’ stock options. There is unrecognized compensation expense as of December 31, 2025 and 2024.
Options
During 2004, the Board of Directors of Vystar adopted a stock option plan (the “Plan”) and authorized up to shares to be issued under the Plan. In April 2009, Vystar’s Board of Directors authorized an increase in the number of shares to be issued under the Plan to shares and to include the independent Board Members in the Plan in lieu of continuing the previous practice of granting warrants each quarter to independent Board Members for services. At December 31, 2025, there are shares of common stock available for issuance under the Plan. In 2014, the Board of Directors adopted an additional stock option plan which provides for an additional shares, which are all available as of December 31, 2025. In 2019, the Board of Directors adopted an additional stock option plan which provides for an additional shares, which are all available as of December 31, 2025. The Plan is intended to permit stock options granted to employees to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the Plan that are not intended to qualify as Incentive Stock Options are deemed to be non-qualified options. Stock options are granted at an exercise price equal to the fair market value of Vystar’s common stock on the date of grant, typically vest over periods up to years and are typically exercisable up to years.
There were options granted during the years ended December 31, 2025 and 2024, respectively. Forfeitures are recognized as they occur.
| Weighted | ||||||||||||
| Weighted | Average | |||||||||||
| Average | Remaining | |||||||||||
| Number | Exercise | Contractual | ||||||||||
| of Shares | Price | Life (Years) | ||||||||||
| Outstanding, December 31, 2023 | $ | |||||||||||
| Granted | - | |||||||||||
| Exercised | - | |||||||||||
| Cancelled | - | |||||||||||
| Expired | ( | ) | $ | - | ||||||||
| Outstanding, December 31, 2024 | $ | |||||||||||
| Granted | - | |||||||||||
| Exercised | - | |||||||||||
| Cancelled | - | |||||||||||
| Expired | ( | ) | $ | - | ||||||||
| Outstanding, December 31, 2025 | $ | |||||||||||
| Exercisable, December 31, 2025 | $ | |||||||||||
| Exercisable, December 31, 2024 | $ | |||||||||||
| F-20 |
As of December 31, 2025 and 2024, there was aggregate intrinsic value on the outstanding options. The aggregate intrinsic value will change based on the fair market value of Vystar’s common stock.
Warrants
Warrants are issued to third parties as payment for services, debt financing compensation and conversion, and in conjunction with the issuance of common stock. The fair value of each common stock warrant issued for services is estimated on the date of grant using the Black-Scholes option pricing model.
The following table represents Vystar’s warrant activity for the years ended December 31, 2025 and 2024:
| Weighted | ||||||||||||||||
| Average | ||||||||||||||||
| Weighted | Weighted | Remaining | ||||||||||||||
| Number | Average | Average | Contractual | |||||||||||||
| of Shares | Fair Value | Exercise Price | Life (Years) | |||||||||||||
| Outstanding, December 31, 2023 | $ | |||||||||||||||
| Granted | - | |||||||||||||||
| Exercised | - | |||||||||||||||
| Expired | ( | ) | $ | - | ||||||||||||
| Outstanding, December 31, 2024 | $ | |||||||||||||||
| Granted | - | |||||||||||||||
| Exercised | - | |||||||||||||||
| Expired | ( | ) | $ | - | ||||||||||||
| Outstanding, December 31, 2025 | $ | |||||||||||||||
| Exercisable, December 31, 2025 | $ | |||||||||||||||
| Exercisable, December 31, 2024 | $ | |||||||||||||||
| NOTE 12 - | RELATED PARTY TRANSACTIONS |
Officers and Directors
Jamie Rotman
Jamie
Rotman was appointed as President of the Company effective December 21, 2023. She is the daughter of the Company’s former CEO,
Steven Rotman. On July 22, 2024, the Company entered into an Employment Agreement (the “Employment Agreement”) with Ms. Jamie
Rotman, under which Ms. Rotman receives annual compensation equal to $
During
the year ended December 31, 2025 and 2024, the Company expensed approximately $
Previously,
Ms. Rotman provided bookkeeping and management services to the Company through July 2019 through her entity, Designcenters.com (“Design”).
In exchange for such services, the Company had entered into a consulting agreement with the related party entity. As of December 31,
2025, the Company had a stock subscription payable balance of $
| F-21 |
Related Party Advances
During
the year ended December 31, 2025, Ms. Rotman advanced the Company $
Blue Oar Consulting, Inc.
This entity is owned by Gregory Rotman, who is the brother of the Company’s CEO, Jamie Rotman. Blue Oar provides business consulting services to Vystar. In exchange for such services, Vystar has entered into a consulting agreement with the related party entity.
Per
the consulting agreement, Blue Oar is to be paid $
Bryan Stone
In May of 2019, the Company acquired the assets of Fluid Energy Conversion Inc. (“FEC”). FEC is owned by Dr. Bryan Stone, one of the Company’s directors. The assets consist of a patent on the Hughes Reactor, which has the ability to control, enhance and focus energy in flowing liquids and gases.
In
addition, Dr. Stone receives a $ per unit commission for RxAir units sold to a specific customer. During the year ended December 31,
2024, commissions of $
Former Officer and Director
Steven Rotman
Per
Steven Rotman’s Employment agreement dated July 22, 2019, as amended, he was paid $
The Board of Directors authorized their board fees for 2021 be paid in common stock of Vystar. Included in stock subscription payable at December 31, 2025 and 2024 is shares valued at $, of which shares valued at $ is included in Steven Rotman’s balance above.
Related Party Advances
As
of December 31, 2025 and 2024, Steven Rotman advanced Vystar funds totaling $
| F-22 |
| NOTE 13 - | COMMITMENTS |
Employment and Consulting Agreements
The Company has entered into employment and consulting agreements with certain of our officers, employees, and affiliates. For employees, payment and benefits would become payable in the event of termination by us for any reason other than cause, or upon change in control of our Company, or by the employee for good reason.
There was one employment agreement in place with the CEO’s, Jamie Rotman in 2025 and 2024. See compensation terms in Note 12.
During the year ended December 31, 2025 and 2024, the Company entered into various service agreements with consultants for financial reporting, advisory, and compliance services.
Litigation
From time to time, the Company is party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Future events or circumstances, currently unknown to management, will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting periods.
EMA Financial
On February 19, 2019, EMA Financial, Inc. filed a lawsuit in the Southern District of New York against the Company. The lawsuit alleged various breaches of an underlying convertible promissory note and stock purchase agreement and sought four claims for relief: (i) specific performance to enforce a stock conversion and contractual obligations; (ii) breach of contract; (iii) permanent injunction to enforce the stock conversion and contractual obligations; and (iv) legal fees and costs of the litigation. The complaint was filed with a motion seeking: (i) a preliminary injunction seeking an immediate resolution of the case through the stock conversion; (ii) a consolidation of the trial with the preliminary injunctive hearing; and (iii) summary judgment on the first and third claims for relief.
The Company filed an opposition to the motion and upon oral argument the motion for injunctive relief was denied. The Court issued a decision permitting a motion for summary judgment to proceed and permitted the Company the opportunity to supplement its opposition papers together with the plaintiff who was also provided opportunity to submit reply papers. On April 5, 2019, the Company filed the opposition papers as well as a motion to dismiss the first and third causes of action in the complaint. On March 13, 2020, the Court granted the Company’s motion dismissing the first and third claims for relief and denied the motion for summary judgment as moot.
The Company subsequently filed an amended answer with counterclaims. The affirmative defenses if granted collectively preclude the relief sought. In addition, Vystar filed counterclaims asserting: (a) violation of 10(b)(5) of the Securities and Exchange Act; (b) violation of Section 15(a)(1) of the Exchange Act (failure to register as a broker-dealer); (c) pursuant to the Uniform Declaratory Judgment Act, 28 U.S.C. §§ 2201, the Company requests the Court to declare: (i) pursuant to Delaware law, the underlying agreements are unconscionable; (ii) the underlying agreements are unenforceable and/or portions are unenforceable, such as the liquidated damages sections; (iii) to the extent the agreement is enforceable, Vystar in good faith requests the Court to declare the legal fee provisions of the agreements be mutual (d) unjust enrichment; (e) breach of contract (in the alternative); and (f) attorneys’ fees.
| F-23 |
On June 10, 2020, EMA filed a motion for summary judgment as to its remaining claims for relief and a motion to dismiss the Company’s affirmative defenses and counterclaims. The Company opposed the motion on July 10, 2020, and the same was fully submitted to the Court on July 28, 2020. On March 29, 2021, the Court issued a decision granting in part and denying in part the motion. Specifically, the Court granted that part of the motion seeking summary judgment and dismissal on the Company’s affirmative defense and counterclaim regarding Sections 15(a)/29(b) of the Exchange Act. Two weeks later the Company filed a motion for reconsideration as to the dismissal portion of the order, or, for the alternative, a motion for certification for the right to file a petition to the Second Circuit Court of Appeals on the issue. The Court denied the motion for reconsideration and certification. Subsequently, fact discovery has been completed and on June 24, 2022 both parties submitted competing motions for summary judgment.
EMA
seeks summary judgment on its breach of contract and attorneys’ fees claims, specifically seeking damages in the amount of $
On
January 6, 2023, the Court issued a series of preliminary rulings based upon the parties’ respective summary judgment motions.
Those rulings narrowed the outstanding issues (and claims) to only the parties’ breach of contract claim and counterclaim (and
affirmative defenses) regarding the conversion process. Of particular importance, the Court found EMA breached the note by failing to
effectuate the conversions in the manner outlined by the controlling note. The Court further found the principal balance at issue was
$
On
October 27, 2023, the Court held oral argument on the issues addressed in the supplemental briefing. On November 27, 2023, the Court
issued its order resolving the case in Vystar’s favor. The Court held while EMA breached the terms of the underlying promissory
note by virtue of the manner of its conversions, such breach was not material. The Court thereafter held the balance of the note was
paid in full by Vystar. Based upon the decision in favor of Vystar, the Court granted Vystar’s request for legal fees, and requested
a briefing on the same. Vystar subsequently submitted a motion for legal and expert fees in the amount of approximately $
On December 24, 2023, EMA filed a motion for reconsideration, arguing the Court failed to properly read the underlying note that, in EMA’s belief, allowed it to effectuate the two post default conversions at issue in the case. After the matter was fully briefed by the parties, on May 16, 2024, the Court held oral argument. On the same date after argument the Court granted EMA the procedural right for reconsideration, and thereafter denied the substantive portion of its motion. The November 27, 2023, decision stands.
On December 27, 2023, EMA filed a notice of appeal with the United States Court of Appeals for the Second Circuit. The appeal targets each section of the prior decisions that fell against EMA. Vystar has until June 14, 2024, to file its notice of appeal with the same appellate court. The appeal, if filed, will target the relevant and material decisions issued by the Court against Vystar.
On June 13, 2024, Vystar has timely filed its notice of cross-appeal. EMA is required to file its submissions on September 20, 2024, and Vystar thereafter has sixty days to file its opposition and cross-appeal. Thereafter the parties will submit final submissions for the appellate court to consider.
On August 5, 2024, the District Court denied, without prejudice to renew, the motion for attorneys’ fees, ruling that such is premature based upon the pending appeal and cross-appeal.
Both parties filed their final briefs in March 2025 with the Second Circuit Court of Appeals.
Subsequent
to the appellate decision affirmance of the District Court decision, on December 22, 2025, the District Court granted Vystar’s
motion for attorneys’ fees and costs awarding Vystar $
| F-24 |
| NOTE 14 - | MAJOR CUSTOMERS AND VENDORS |
Major customers and vendors are defined as a customer or vendor from which Vystar and Rotmans derive at least 10% of its revenue and cost of revenue, respectively.
During
the year ended December 31, 2025, there were no major customers. During the year ended December 31, 2024, Vystar made approximately
During
the year ended December 31, 2025, there were no major vendors. During the year ended December 31, 2024, Vystar made
During
the year ended December 31, 2025 and 2024, Vystar recognized a gain on settlement of debt totaling $
| NOTE 15 - | INCOME TAXES |
During the year ended December 31, 2025, the Company adopted ASU 2023-09 to enhance the income taxes disclosures. A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:
| Year Ended December 31, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| $ | % | $ | % | |||||||||||||
| Loss before income taxes | $ | ( | ) | $ | ( | ) | ||||||||||
| U.S. Federal Statutory Tax Rate | ( | ) | - | % | ( | ) | - | % | ||||||||
| Current State Income Taxes, Net of Federal Income Tax Effect | ( | ) | - | % | ( | ) | - | % | ||||||||
| Nontaxable or nondeductible Items | ||||||||||||||||
| Derivative debt discount | % | % | ||||||||||||||
| Other | % | % | ||||||||||||||
| Other Adjustments | ||||||||||||||||
| Share-based compensation | % | ( | ) | - | % | |||||||||||
| Interest accrued to cash basis taxpayers | % | % | ||||||||||||||
| Amortization and depreciation | ( | ) | - | % | ( | ) | - | % | ||||||||
| Change in reserves | % | ( | ) | - | % | |||||||||||
| Change in Valuation Allowance | % | % | ||||||||||||||
| Total Income Tax Provision | % | % | ||||||||||||||
| F-25 |
The Company’s deferred tax assets as of December 31, 2025 and 2024 are as follows:
| 2025 | 2024 | |||||||
| Net operating loss carryforwards (Federal) | $ | $ | ||||||
| Less valuation allowance | ( | ) | ( | ) | ||||
| Deferred tax assets | $ | $ | ||||||
Deferred
taxes are caused by net operating loss carryforwards. U.S. Tax Legislation enacted in 2017 (the “TCJA”) has significantly
changed certain aspects of U.S. federal income taxation. Net Operating Losses (“NOLs”) generated in 2017 and prior years
can be carried forward for 20 years. NOLs generated in 2018 – 2020, as enacted by the CARES Act, can be carried forward indefinitely.
However,
For
federal income tax purposes, Vystar has a net operating loss carryforward of approximately $
Pursuant to Internal Revenue Code Section 382, the future realization of our net operating loss carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that may have occurred previously or that could occur in the future.
The change in the valuation allowance is as follows:
| 2025 | 2024 | |||||||
| Valuation allowance - beginning of year | $ | $ | ||||||
| Additions charged to income tax benefit | ||||||||
| Valuation allowance - end of year | $ | $ | ||||||
| NOTE 16 - | DISCONTINUED OPERATIONS |
Rotmans closed its showroom on December 14, 2022. All activities related to the winding down of operations are reported as discontinued operations in 2025 and 2024. The assets and liabilities have been reported in the consolidated balance sheets as assets and liabilities of discontinued operations.
| F-26 |
The income (loss) from discontinued operations for 2025 and 2024 is as follows:
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | $ | ||||||
| Cost of revenue | ||||||||
| Gross profit | ||||||||
| Operating expenses: | ||||||||
| Professional fees | ||||||||
| Service charges | ||||||||
| Other operating | ||||||||
| Total operating expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | ( | ) | ||||||
| Gain on settlement of liabilities | ||||||||
| Gain on sale of property and equipment | ||||||||
| Other income, net | ||||||||
| Total other income, net | ||||||||
| Net income (loss) from discontinued operations | $ | ( | ) | $ | ||||
| F-27 |
Details of the balance sheet items for discontinued operations are as follows:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Current assets: | ||||||||
| Cash | $ | $ | ||||||
| Prepaid expenses and other | ||||||||
| Total current assets | $ | $ | ||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Related party advances | ||||||||
| Operating lease liabilities - current maturities | ||||||||
| Total current liabilities | $ | $ | ||||||
The consolidated statements of cash flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Included in adjustments to reconcile net loss to net cash used in operating activities are the following discontinued operations items:
| 2025 | 2024 | |||||||
| Gain on settlement of liabilities | $ | $ | ( | ) | ||||
| Gain on sale of property and equipment | ( | ) | ||||||
| NOTE 17 - | SUBSEQUENT EVENTS |
The
Company received two payments totaling $
In April 2026, the Company received payments from two individual shareholders from a private stock subscription raise. Under the agreements, the Company will issue and shares of its preferred stock series class B stock for $ and $, respectively.
During
2026, Jamie Rotman advanced the Company $
On
April 14, 2026, Vystar entered into a binding letter of intent (“LOI”) to acquire
Capital R3alm, Inc. is developing a compliance-oriented Web3 financial ecosystem designed to bridge traditional finance and decentralized technologies. The R3alm platform is intended to span capital formation, tokenized assets, governance, trading infrastructure, treasury systems, investor access, identity, analytics, crowd funding platform and AI-powered financial intelligence layer, with R3EQ Token planned as the ecosystem’s equity-linked ownership-layer token.
R3alm is being developed as a unified ecosystem spanning capital formation, tokenized real-world assets, digital securities infrastructure, governance systems, trading and liquidity tools, treasury capabilities, identity and wallet functions, collectibles infrastructure, analytics, and AI-powered financial intelligence. The company’s vision is to create secure, transparent, and scalable financial products that expand investor access while supporting long-term market innovation.
The R3alm platform is designed to support multiple interconnected business lines and product layers, including digital capital formation, tokenized asset infrastructure, ecosystem governance, investor tools, treasury systems, and a broader network of applications intended to serve investors, issuers, developers, and enterprises operating in emerging digital financial markets. A key pillar of the ecosystem is R3EQ, the planned equity-linked digital share token for R3alm.
| F-28 |
| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
None.
| ITEM 9A. | CONTROLS AND PROCEDURES |
The Company’s Chief Executive Officer and Chief Financial Officer (the Certifying Officer) is responsible for establishing and maintaining disclosure controls and procedures for the Company. Although the Certifying Officer has designed such disclosure controls and procedures to ensure that material information is made known to them, particularly during the period in which this report was prepared, certain material weaknesses occurred during the year ended December 31, 2025 and subsequent to year end. The Certifying Officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e) (the Rules) under the Securities Exchange Act of 1934 (or Exchange Act) as of the end of the period covered by this Annual Report and is working on improving controls with an outside CPA firm and internal resources.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d - 15(f) under the Securities Exchange Act of 1934). Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes those policies and procedures that: (i) in reasonable detail accurately and fairly reflect our transactions; (ii) provide reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; (iii) provide reasonable assurance that our receipts and expenditures are made in accordance with management authorization; and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting, however well designed and operated, can provide only reasonable, and not absolute, assurance that the controls will prevent or detect misstatements. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there is only the reasonable assurance that our controls will succeed in achieving their goals under all potential future conditions.
Management, under the supervision and with the participation of our Chief Executive Officer and our acting Chief Financial Officer, conducted an evaluation of our internal control over financial reporting as of December 31, 2025 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013. Based on our evaluation under the COSO framework, management concluded that our internal control over financial reporting was not effective as of December 31, 2025. Such conclusion was reached based on the following material weaknesses noted by management:
a) The Company does not have sufficient segregation of duties within the accounting department due to the small size of the Company.
b) The Company did not maintain reasonable control over records underlying transactions necessary to permit preparation of the Company’s financial statements.
c) Lack of controls that provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposal of the Company’s assets that could have a material effect on the financial statements.
d) Lack of a formal CFO position who can devote significant attention to financial reporting resulted in audit adjustments.
| 23 |
e) Lack of a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.
f) Lack of controls over identification, valuation and bifurcation of embedded features in debt instruments.
Management expects to strengthen internal control during 2026 by developing stronger business and financial processes for accounting for transactions such as stock issuances, which will enhance internal control for the Company.
| ITEM 9B. | OTHER INFORMATION |
PART III
| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Board of Directors
The following tables set forth the name and information of each director of Vystar as of December 31, 2025. Each director is elected to serve until the next Annual Meeting of Stockholders.
| Name | Principal Occupation During Last Five Years | Age | Director Since | |||
| Joseph C. Allegra, Jr., PhD | Joseph Allegra, PhD was elected Chairman of the Board on February 14, 2018 and has followed Vystar’s progress for numerous years and has assisted as an investment advisor and investor, providing insight into positioning the company to attract investors, particularly in the healthcare sector. He currently is an Instructor of Epidemiology and Biostatistics at the University of Georgia and an Investment Advisor at Lincoln Lee Investments in Atlanta. Previously he was a Senior Drug Safety Associate at Genentech. Dr. Allegra received his BA in Psychology from Boston University, and his Master of Public Health and Doctor of Philosophy degrees from the University of Georgia. | 46 | 2017 | |||
| Jamie Rotman | Jamie Rotman was elected Chief Executive Officer and a Director of Vystar Corporation on December 21, 2023. She previously served as Vystar’s consulting controller from 2018 to 2019 and was actively involved in implementing its online sales program, along with bringing in distributors for RxAir. She actively ran her own business, Designcenters.com, from 2006 to 2014. She recently worked at M. Pope & Co. as a Sales Associate and E-commerce Manager. She worked at Rotmans Furniture as their Efficiency Expert for many years. Ms. Rotman received her BA in Psychology from Northeastern University, and her Master of Business Administration degree from Clark University. | 58 | 2023 |
| 24 |
| Bryan Stone, MD | Bryan Stone, M.D, has advised Vystar over the past years relating to product development for the healthcare industry and brings to the Board an understanding of the challenges of new product development for start-up companies. He is the Chairman of Medicine at Desert Regional Medical Center in Palm Springs, California, and is the Medical Director at multiple DaVita Dialysis Centers. He is also an entrepreneur, serving as the Interim CEO of Fluid Energy Conversion, Inc., a firm specializing in molecular fluid mechanics, specifically high efficiency mass producible energy conversion technologies. | 58 | 2017 | |||
| Byron L. Novosad, DDS | Byron L. Novosad, DDS was appointed to the Board on January 25, 2021. Dr Novosad received a BA in Chemistry from Baylor University and graduated from the University of Texas Dental School in Houston and later received his Certificate in Periodontics in 1982. Dr. Novosad brings experience to the Board in the medical and health care field, and served previously as a consultant to UV Flu Technologies from 2011 to 2015 and a consultant to Vystar Corporation from 2013 to 2015. He has operated a private periodontal practice in the Houston, Texas area for 30 years and has been a Clinical Assistant Professor of Periodontics at the Periodontic Graduate Clinic for the University of Texas Dental branch in Houston since 2007. He was on the Advisory Board of Wharton County Jr. College School of Dental Hygiene for 37 years. | 70 | 2021 |
Director Independence
Under Rule 5605(b)(1) of the Nasdaq Marketplace Rules, independent directors must comprise a majority of a listed company’s board of directors within one year of listing. In addition, Nasdaq Marketplace Rules require that, subject to specified exceptions, each member of a listed company’s audit, compensation and nominating and governance committees be independent. While Vystar does not currently qualify for listing on Nasdaq and will likely not qualify for some time after the date of this proxy statement, it does intend to seek such listing as soon as possible and complies with its Marketplace Rules. Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended. Under Nasdaq Marketplace Rule 5605(a)(2), a director will only qualify as an “independent director” if, in the opinion of that company’s board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered to be independent for purposes of Rule 10A-3, a member of an audit committee of a public company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the public company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.
In March of 2013, our Board undertook a review of its composition, the composition of its committees and the independence of each director. Based upon information requested from and provided by each director concerning his or her background, employment and affiliations, including family relationships, our Board has determined none of the directors has a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is “independent” as that term is defined under Nasdaq Marketplace Rule 5605(a)(2).
Audit Committee
The Board member serving on our Audit Committee was Dr. Stone. Our Board has determined that Dr. Stone satisfies the requirements for financial literacy under the current requirements of the Nasdaq Marketplace Rules. He is an “audit committee financial expert,” as defined by SEC rules and satisfy the financial sophistication requirements of The NASDAQ Global Market. Our Audit Committee assists our Board in its oversight of our accounting and financial reporting process and the audits of our financial statements. The Audit Committee’s responsibilities include:
| ● | appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm; |
| 25 |
| ● | overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from such firm; | |
| ● | reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures; | |
| ● | monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics; | |
| ● | discussing our risk management policies; | |
| ● | establishing policies regarding hiring employees from the independent registered public accounting firm and procedures for the receipt and resolution of accounting related complaints and concerns; | |
| ● | meeting independently with our independent registered public accounting firm and management; | |
| ● | reviewing and approving or ratifying any related person transactions; and | |
| ● | preparing the audit committee report required by SEC rules. |
All audit and non-audit services, other than de minimus non-audit services, to be provided to us by our independent registered public accounting firm must be approved in advance by our Audit Committee.
Audit Committee Charter
We have adopted an Audit Committee Charter which sets out the duties and responsibilities of our Audit Committee. The Audit Committee Charter is available on our website at www.vystarcorp.com. Any amendments to the Charter, or any waivers of its requirements, will be disclosed on our website.
Meetings of the Board and Committees
During fiscal year 2025, our Board held six meetings, and its Audit Committee held one meeting. Each director attended the meetings in fiscal year 2025. Members of our Board are encouraged to attend our annual meetings of shareholders.
CORPORATE GOVERNANCE
Corporate Governance Guidelines
We believe in sound corporate governance practices and have adopted formal Corporate Governance Guidelines to enhance our effectiveness. Our Board adopted these Corporate Governance Guidelines in order to ensure that it has the necessary practices in place to review and evaluate our business operations as needed and to make decisions that are independent of our management. The Corporate Governance Guidelines are also intended to align the interests of directors and management with those of our shareholders. The Corporate Governance Guidelines set forth the practices our Board follows with respect to Board and committee composition and selection, Board meetings, chief executive officer performance evaluation and management development and succession planning for senior management, including the chief executive officer position. A copy of our Corporate Governance Guidelines is available on our website at www.vystarcorp.com.
| 26 |
Code of Business Conduct and Ethics
We adopted a Code of Business Conduct and Ethics applicable to all officers, directors and employees of Vystar that comply with NASDAQ listing standards. The Code of Business Conduct and Ethics includes an enforcement mechanism, and any waivers for directors or executive officers must be approved by our Board and disclosed in a current report on Form 8-K with the SEC. This Code of Business Conduct is publicly available on our website at www.vystarcorp.com. There were no waivers of the Code of Business Conduct and Ethics for any of our directors or executive officers during fiscal year 2025.
| ITEM 11. | EXECUTIVE COMPENSATION |
Overview
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth information regarding compensation earned by our, Chief Executive Officer and President for 2025 and 2024.
| Name and Principal Position | Salary | Option Awards(1) | Total | |||||||||
| Jamie Rotman - 2025 | $ | 375,000 | $ | - | $ | 375,000 | ||||||
| Chief Executive Officer, Chief Financial Officer and President | ||||||||||||
| Jamie Rotman - 2024 | $ | 440,000 | $ | - | $ | 440,000 | ||||||
| Chief Executive Officer, Chief Financial Officer and President | ||||||||||||
| (1) | These amounts do not reflect the actual economic value realized by the executive officers. In accordance with SEC rules, the amounts in this column for 2025 and 2024 represent the dollar amount recognized as compensation expense by Vystar for financial statement reporting purposes for fiscal years 2025 and 2024 for stock and options granted to each of the executive officers in each such fiscal year in accordance with applicable accounting guidance related to stock-based compensation. Pursuant to SEC rules, the amounts shown disregard the impact of estimated forfeitures related to service-based vesting conditions. |
DIRECTOR COMPENSATION
There was no compensation awarded to, paid to or earned by each of Vystar’s non-employee directors during fiscal year 2025.
Compensation Philosophy
The current policy of our Board is that compensation for non-employee directors should be equity-based compensation to reward directors for quarterly periods of service in fulfilling their oversight responsibilities.
Expenses
We reimburse our directors for their travel and related expenses in connection with attending Board and committee meetings, as well as costs and expenses incurred in attending director education programs and other Vystar-related seminars and conferences.
| 27 |
| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
The following table sets forth the beneficial ownership of our common stock as of December 31, 2025 by each entity or person who is known to beneficially own 5% or more of our common stock, each of our directors, each Executive Officer identified in “Executive Compensation—Summary Compensation Table” contained in this proxy statement and all of our directors and current executive officers as a group. This table is based upon information supplied by executive officers, directors and principal shareholders. Unless otherwise indicated in the footnotes to this table and subject to community property laws where applicable, each of the shareholders named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned. None of the shares beneficially owned by our executive officers and directors are pledged as security. Applicable percentages are based on shares outstanding on December 31, 2025, adjusted as required by rules promulgated by the SEC.
| Officers and Directors | ||||||||
| Jamie Rotman | ||||||||
| Shrewsbury, MA | 1,359,813 | 5.523 | % | |||||
| Bryan Stone, M.D. | ||||||||
| Palm Springs, CA | 209,663 | 0.852 | % | |||||
| Joseph Carmen Allegra, Jr., PhD | ||||||||
| Atlanta, GA | 10,000 | 0.041 | % | |||||
| Byron L. Novosad, DDS | ||||||||
| Houston, TX | 131,667 | 0.535 | % | |||||
| All Directors and Executive Officers as a Group | 1,711,143 | 6.950 | % | |||||
| Total Shares Outstanding | 24,621,094 |
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires our executive officers and directors, and any person or entity who owns more than ten percent of a registered class of our common stock or other equity securities, to file with the SEC certain reports of ownership and changes in ownership of our securities. Executive officers, directors and shareholders who hold more than ten percent of our outstanding common stock are required by the SEC to furnish us with copies of all required forms filed under Section 16(a). We prepare Section 16(a) forms on behalf of our executive officers and directors based on the information provided by them.
Based solely on review of this information and written representations by our executive officers and directors that no other reports were required, we believe that, during fiscal year 2025 each director filed the forms required by Section 16(a) of the Exchange Act on a timely basis with respect to the repricing of option and warrants.
| 28 |
EQUITY COMPENSATION PLAN INFORMATION
The following table shows information related to our common stock which may be issued under our compensation plans, as amended, as of December 31, 2025:
| Plan Category | Number
of | Weighted Average Exercise price of outstanding options | Number
of | |||||||||
| 2004 Long-Term Incentive Compensation Plan, as amended, approved by shareholders | 77,483 | $ | 580 | 22,517 | ||||||||
| 2014 Long-Term Incentive Compensation Plan | 0 | 0 | 50,000 | |||||||||
| 2019 Equity Incentive Plan | 0 | 0 | 500,000 | |||||||||
| Total | 77,483 | $ | 580 | 572,517 | ||||||||
Our 2004 Long-Term Incentive Compensation Plan, as amended, which we refer to as the 2004 Plan, was adopted by our Board in 2004, and amended and approved by our shareholders in 2009. A maximum of 100,000 shares of common stock were authorized for issuance under the 2004 Plan.
The 2004 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and other stock-based awards. Our officers, employees, consultants and directors are eligible to receive awards under the 2004 Plan; however, incentive stock options may only be granted to our employees. In accordance with the terms of the 2004 Plan, our Board administers the 2004 Plan and, subject to any limitations in the 2004 Plan, selects the recipients of awards and determines:
| ● | the number of shares of common stock covered by options and the dates upon which those options become exercisable; | |
| ● | the exercise prices of options; | |
| ● | the duration of options; | |
| ● | the methods of payment of the exercise price; and | |
| ● | the number of shares of common stock subject to any restricted stock or other stock-based awards and the terms and conditions of those awards, including the conditions for repurchase, issue price and repurchase price. |
Pursuant to the terms of the 2004 Plan, in the event of a change in control of our company, each outstanding option under the 2004 Plan will vest, but the holders shall have the right, assuming the holder still maintains a continuous service relationship with us, immediately prior to such dissolution or liquidation, to exercise the option to the extent exercisable on the date of such dissolution or liquidation.
In the event of a merger or other reorganization event, our Board shall have the discretion to provide for any or all of the following: (a) the acceleration of vesting or the termination of our repurchase rights of any or all of the outstanding awards, (b) the assumption or substitution of all options by the acquitting or succeeding entity or (c) the termination of all options that remain outstanding at the time of the merger or other reorganization event.
| 29 |
| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
Review, Approval or Ratification of Transactions with Related Persons
Vystar’s Code of Business Conduct requires that all employees and directors avoid conflicts of interests that interfere with the performance of their duties or are not in the best interests of Vystar.
In addition, pursuant to its written charter, the Audit Committee considers and approves or disapproves any related person transaction as defined under Item 404 of Regulation S-K promulgated by the SEC, after examining each such transaction for potential conflicts of interest and other improprieties. The Audit Committee has not adopted any specific written procedures for conducting such reviews and considers each transaction in light of the specific facts and circumstances presented.
Transactions with Related Persons
Jamie Rotman was appointed as President of the Company effective December 21, 2023. She is the daughter of the Company’s former CEO, Steven Rotman. On July 22, 2024, the Company entered into an Employment Agreement (the “Employment Agreement”) with Ms. Jamie Rotman, under which Ms. Rotman receives annual compensation equal to $180,000 payable in Series C Preferred Stock or common stock, either at Ms. Rotman’s discretion, discounted 50% over the then market price (and payable in cash at Ms. Rotman’s discretion), plus a signing bonus of $25,000 payable in shares of Series C Preferred Stock, vesting over 2024. The Employment Agreement was made retroactive to January 1, 2024. The Employment Agreement also provides for a 24-month severance payment upon termination without cause (as defined) and a 24 month change in control severance.
During the year ended December 31, 2025 and 2024, the Company expensed approximately $375,000 and $440,000, respectively, related to this employment agreement. As of December 31, 2025, the Company had a stock subscription payable balance of $738,684 or approximately 28,072,000 shares of common stock to Ms. Rotman. Vystar issued 1,300,000 shares of common stock on December 23, 2024 for share-based compensation totaling $76,112. As of December 31, 2024, the Company had a stock subscription payable balance of $363,853 or approximately 24,475,000 shares of common stock to Ms. Rotman.
Previously, Ms. Rotman provided bookkeeping and management services to the Company through July 2019 through her entity, Designcenters.com (“Design”). In exchange for such services, the Company had entered into a consulting agreement with the related party entity. As of December 31, 2025, the Company had a stock subscription payable balance of $42,047, for approximately 8,500 shares related to this party for services incurred and expensed in 2019.
During the year ended December 31, 2025, Ms. Rotman advanced the Company $2,000 for working capital. The advance is due on demand. During the year ended December 31, 2024, Jamie Rotman paid Vystar expenses totaling $8,794. The advances are due on demand and repaid in March 2025.
Blue Oar Consulting, Inc. (“Blue Oar”) is owned by Gregory Rotman, who is the brother of the Company’s CEO, Jamie Rotman. Blue Oar provides business consulting services to Vystar. In exchange for such services, Vystar has entered into a consulting agreement with the related party entity.
Per the consulting agreement, Blue Oar is to be paid $15,000 per month in cash for expenses, and $12,500 per month to be paid in shares based on a 20-day average at a 50% discount to market. The Company and Blue Oar mutually agreed to temporarily suspend the monthly payment for expenses beginning in January 2025. During the year ended December 31, 2025 and 2024, Vystar expensed approximately $312,000 and $633,000, respectively, related to the consulting agreement. Vystar issued 4,036,812 and 1,509,642 shares of common stock during the year ended December 31, 2025 and 2024, respectively, for prior accrued share-based compensation totaling $63,806 and $632,263 for 2025 and 2024, respectively. As of December 31, 2025 and 2024, Vystar had a stock subscription payable balance of $1,099,573 and $851,022, respectively, or approximately 109,368,000 and 110,407,000 shares, respectively, to be issued in the future to this entity. In addition, included in accounts payable are unpaid consulting expenses of $405,000 at December 31, 2025 and 2024.
| 30 |
Blue Oar has advanced Vystar funds totaling $833,407 through December 31, 2025. The Company formalized the borrowing in a promissory note agreement dated June 1, 2024 and, upon maturity, in a promissory note agreement dated December 31, 2025. As of December 31, 2025 and 2024, the outstanding balance was $847,265 and $507,013, respectively, net of debt discount. See Note 7 for further information.
One of the Company’s directors, Dr. Bryan Stone, receives a $25 per unit commission for RxAir units sold to a specific customer. During the year ended December 31, 2024, commissions of $2,475 were due to Dr. Stone and included in accrued expenses. There were no commissions earned during the year ended December 31, 2025. Included in accrued expenses at December 31, 2025 is $124 due to Dr. Stone for previously earned commissions.
The Company’s former President and CEO, Steven Rotman, was paid $125,000 per year in cash, $10,417 per month in shares based on a 20-day average price at a 50% discount to market, $5,000 per month in cash for expenses. Vystar issued 1,300,000 shares of common stock on December 23, 2024 for prior accrued share-based compensation totaling $524,660. As of December 31, 2025 and 2024, Vystar had a stock subscription payable balance of $427,933 or approximately 59,256,000 shares to be issued in the future and $243,155 of reimbursable expenses payable and $81,482 of unpaid salary. Mr. Rotman’s employment was terminated upon his resignation on December 21, 2023.
The Board of Directors authorized their board fees for 2021 be paid in common stock of Vystar. Included in stock subscription payable at December 31, 2025 and 2024 is 100,000 shares valued at $291,000, of which 20,000 shares valued at $58,200 is included in Steven Rotman’s balance above.
As of December 31, 2025 and 2024, Vystar is indebted to Steven Rotman for advances of $77,460. As of December 31, 2025 and 2024, Rotmans is indebted to Steven Rotman for advances of $61,986. The advances are due on demand as repayment terms have not yet been finalized.
Director Independence
Under Rule 5605(b)(1) of the Nasdaq Marketplace Rules, independent directors must comprise a majority of a listed company’s board of directors within one year of listing. In addition, Nasdaq Marketplace Rules require that, subject to specified exceptions, each member of a listed company’s audit, compensation and nominating and governance committees be independent. While Vystar does not currently qualify for listing on Nasdaq and will likely not qualify for some time after the date of this proxy statement, it does intend to seek such listing as soon as possible and complies with its Marketplace Rules. Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended. Under Nasdaq Marketplace Rule 5605(a)(2), a director will only qualify as an “independent director” if, in the opinion of that company’s board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered to be independent for purposes of Rule 10A-3, a member of an audit committee of a public company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the public company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.
| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
During fiscal year 2025 and 2024, we retained the firm of Macias Gini & O’Connell (“MGO”) to provide audit services. Below is a table of fees incurred in the following categories and amounts:
| Fee Category | 2025 | 2024 | ||||||
| Audit Fees | $ | 108,150 | $ | 123,000 | ||||
| Audit-Related Fees | — | — | ||||||
| Tax Fees | — | — | ||||||
| All Other Fees | — | — | ||||||
| Total | $ | 108,150 | $ | 123,000 | ||||
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Audit fees include the audit of Vystar’s annual financial statements, review of financial statements included in each of our Quarterly Reports on Form 10-Q, and services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years.
Audit-related fees consist of fees for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements.
Tax fees consist of fees for professional services for tax compliance, tax advice and tax planning. This category includes fees primarily related to the preparation and review of federal, state and assistance with tax audits. No tax fees were incurred for the current or previous period.
All other fees include assurance services not related to the audit or review of our financial statements. No other fees were incurred for the current or previous period.
There were no non-audit services provided by MGO for the current or previous period.
AUDIT COMMITTEE PRE-APPROVAL OF SERVICES PERFORMED BY OUR
INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS
It is the policy of our Audit Committee to pre-approve all audit and permissible non-audit services to be performed by MGO. Our Audit Committee pre-approves services by authorizing specific projects within the categories outlined above, subject to a budget for each category. Our Audit Committee’s charter delegates to one or more members of the Audit Committee the authority to address any requests for pre-approval of services between Audit Committee meetings, and the subcommittee or such member or members must report any pre-approval decisions to our Audit Committee at its next scheduled meeting.
All services related to audit fees provided by MGO during fiscal year 2025 and 2024 were pre-approved by the Audit Committee in accordance with the pre-approval policy described above.
REPORT OF THE AUDIT COMMITTEE
The Audit Committee’s role includes the oversight of our financial, accounting and reporting processes; our system of internal accounting and financial controls; our enterprise risk management program; and our compliance with related legal, regulatory and ethical requirements. The Audit Committee oversees the appointment, compensation, engagement, retention, termination and services of our independent registered public accounting firm, including conducting a review of its independence; reviewing and approving the planned scope of our annual audit; overseeing our independent registered public accounting firm’s audit work; reviewing and pre-approving any audit and non-audit services that may be performed by it; reviewing with management and our independent registered public accounting firm the adequacy of our internal financial and disclosure controls; reviewing our critical accounting policies and the application of accounting principles; and monitoring the rotation of partners of our independent registered public accounting firm on our audit engagement team as required by regulation. The Audit Committee establishes procedures, as required under applicable regulation, for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls or auditing matters and the submission by employees of concerns regarding questionable accounting or auditing matters. The Audit Committee’s role also includes meeting to review our annual audited financial statements and quarterly financial statements with management and our independent registered public accounting firm. The Audit Committee held one meeting during fiscal year 2025.
The member of the Audit Committee met the independence criteria prescribed by applicable regulation and the rules of the SEC for audit committee membership and are “independent director” within the meaning of NASDAQ listing standards. The Audit Committee member meets NASDAQ’s financial literacy requirements, and the Board further determined that the member is an “audit committee financial expert” “as such term is defined in Item 407(d) of Regulation S-K promulgated by the SEC also meets NASDAQ’s financial sophistication requirements. The Audit Committee acts pursuant to a written charter, which complies with the applicable provisions of the Sarbanes-Oxley Act of 2002 and related rules of the SEC and NASDAQ, a copy of which can be found on our website at www.vystarcorp.com.
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I have reviewed and discussed with management and MGO Vystar’s audited financial statements. I discussed with MGO and Vystar’s Chief Financial Officer the overall scope and plans of MGO’s audit. I met with MGO, with and without management present, to discuss results of its examinations, its evaluation of Vystar’s internal controls, and the overall quality of Vystar’s financial reporting.
I have reviewed and discussed with MGO matters required to be discussed pursuant to Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1. AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T. I have received from MGO the written disclosures and letter required by the applicable requirements of the Public Company Accounting Oversight Board regarding MGO’s communications with the Audit Committee concerning independence. I have discussed with MGO matters relating to its independence.
Based on the reviews and discussions referred to above and my review of Vystar’s audited financial statements for fiscal year 2025, I recommended to the Board that Vystar’s audited financial statements be included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025, for filing with the SEC.
Respectfully submitted,
AUDIT COMMITTEE
Bryan Stone, M.D., Chair
PART IV
| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
1. FINANCIAL STATEMENTS
The following financial statements and notes thereto of Vystar Corporation, and the related Report of Independent Registered Public Accounting Firm are set forth in Item 8.
2. FINANCIAL STATEMENT SCHEDULES
All schedules for which provision is made in the applicable accounting regulations of the SEC have been omitted because they are not applicable, or the required information is included in the financial statements or notes thereto.
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3. EXHIBITS
Exhibit Index *
* Some Exhibits have certain confidential information redacted pursuant to a request for confidential treatment
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| 101.INS*** | XBRL Instance Document | |
| 101.SCH*** | XBRL Taxonomy Extension Schema Document | |
| 101.CAL*** | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF*** | XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB*** | XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE*** | XBRL Taxonomy Extension Presentation Linkbase Document |
| * | Some Exhibits have certain confidential information redacted pursuant to a request for confidential treatment. |
| ** | Exhibits and schedules to this exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish copies of the omitted exhibits and schedules to the Securities and Exchange Commission upon its request. Confidential treatment has been requested as to a portion of this exhibit, which portion has been omitted and filed separately with the Securities and Exchange Commission. |
| *** | Filed herewith. |
| ITEM 16. | FORM 10-K SUMMARY |
Not applicable.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| VYSTAR CORPORATION | ||
| Date: April 15, 2026 | By: | /s/ Jamie Rotman |
| Jamie Rotman | ||
| Chairman, President, Chief Executive Officer (Principal Executive Officer), Chief Financial Officer (Principal Financial and Accounting Officer) and Director | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, on April 15, 2026.
| Signature | Title | |
| /s/ Jamie Rotman | President, Chief Executive Officer, and Chief Financial Officer | |
| Jamie Rotman | ||
| /s/ Joseph Allegra | Chairman of the Board of Directors | |
| Joseph Allegra, PhD | ||
| /s/ Bryan Stone | Director | |
| Bryan Stone, MD | ||
| /s/ Byron Novosad | Director | |
| Byron Novosad, DDS |
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