Published on : 05-24-2021
Worcester, MA, May 24, 2021 (GLOBE NEWSWIRE) — Vystar® Corporation (OTCQB: VYST) reports milestone financial results for the first quarter of 2021 with record high revenue and profit for the first time in the company’s history. Revenue for the three months ended March 31, 2021 and 2020 were $12,868,119 and $5,932,238, respectively, for an increase of $6,935,881 or 117%.
“The increase in revenues was due to three factors: 1) the high impact ‘Closing to Remodel’ sale event at Rotmans Furniture and Flooring that surpassed every quarter in Rotmans 50+ year history, 2) an increase in sales of RxAir® UV light air purification units which destroy a broad array of airborne viruses, bacteria and other pathogens, and 3) the PPP forgivable government loan to help re-opening,” Steve Rotman, Vystar CEO, stated. “The COVID pandemic has increased commercial and consumer demand for RxAir units as they seek solutions to reduce airborne viruses. Vystar’s revenues in the first quarter of 2020 were negatively impacted as COVID caused store traffic to decrease then shut down. We’ve emerged stronger than ever with multiple revenue streams, promising new product developments and a greatly enhanced cash balance sheet.”
The Company reported a significant increase in gross profit to $6,791,279 for the three-month period ended March 31, 2021 compared to gross profit of $2,999,624 for the three-month period ended March 31, 2020, an increase of $3,791,655 or 126%. The increase in gross profit was primarily due to a change in purchasing which started when the store reopened in May 2020 and the reduction of special offers. Merchandise is now being purchased in large quantities from fewer vendors.
The first quarter 2021 results also include the sales margins of a significant number of RxAir units. Deliveries on the backlog of orders for RxAir units restarted in December 2020 and continued in Q1 2021 coupled with current new orders. The backlog was a result of the Company taking advance orders for RxAir units while simultaneously spending the summer and fall of 2020 rebuilding its supply chain and contracting with a new manufacturer amid the pandemic-induced supply shortages and the manufacturing and shipping slowdowns worldwide.
The Company’s operating expenses were $5,820,622 and $3,850,177 for the three months ended March 31, 2021 and 2020, respectively, an increase of $1,970,445 or 51%. The increase was due in part to fees incurred under an agreement with a third-party agent to assist the Company with the high-impact “Closing to Remodel” sale at Rotmans, as well as increased advertising expenses.
Net income (loss) was $918,127 and ($1,367,377) for the three months ended March 31, 2021 and 2020, respectively, an increase of $2,285,504 or 167%. Net income in the quarter ended March 31, 2021 versus net loss in the same period in 2020 was due to increased sales and margins from Rotmans operations, increased sales of RxAir, and the PPP loan forgiveness.
The RxAir product line includes the following items that have achieved FDA clearance as Class II Medical Devices:
Vystar sells RxAir residential and commercial units through multiple distributors and the Company’s website. Once distribution channels are firmly established, Vystar expects the air purification products will produce margins of up to 70%. Vystar has been contracted by numerous school districts and state education departments to supply units on a broad scale and is working on expanding its RxAir offerings including private labeling.
Mr. Rotman noted, “Vystar expects the RxAir unit volume to grow through the rest of 2021 as school districts, government agencies, churches, healthcare facilities, gyms and commercial entities re-open to normal levels. Many schools have indicated they are concerned about improving air quality overall, not just to reduce pandemic risk. With the ongoing emergence of COVID-19 variants and other viruses, and increasing awareness of how air quality affects general health, Vystar will continue to educate consumers about the benefits of RxAir and has robust manufacturing capabilities that can adjust production to meet demand.”
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 ten years and has a dedicated group of manufacturers who use it in end products such as electrical gloves, condoms, adhesives, etc. Ironically, most use Vytex for its many properties that make it a superior performing, more durable and stronger latex raw material rather than its protein properties.
Vystar’s Market Development and Distribution Agreement with Corrie MacColl, Ltd. (CMC Global) to expand the market for Vytex natural rubber liquid latex and the newly developed dry rubber has garnered much attention across a broad range of industries.
“We are excited to have Vytex in front of CMC Global’s broad audience via their well-established sales and distribution network,” Mr. Rotman stated. “As CMC Global’s Cameroon plantations and processing facilities resume production now after the annual winter shut down, Vytex will be produced there on a semi-exclusive basis, providing a reliable supply for customers.”
As of mid-2020, Vystar and the Indian Rubber Manufacturers Research Association’s (IRMRA) have 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.
“Our Vytex R & D test partners in India are extremely enthusiastic about our new developments in the dry rubber and latex areas that are applicable for multiple industries,” stated William Doyle, former Vystar CEO and current Vytex Product Development Advisor. “We are looking forward to sharing these results with a broader audience this this summer. While the pandemic has halted much activity in India, fortunately we are able to share information virtually and continue our progress.”
Twitter: @VystarCompany @RxAir
# # #
About Vystar Corporation:
Based in Worcester, Mass., Vystar® Corp. (OTCQB: VYST) is the majority owner of Rotmans Furniture and Flooring and environmentally friendly technologies and products to improve lives, including RxAir® UV light air purification products that destroy harmful airborne viruses and pathogens, Vytex™ Natural Rubber Latex (NRL), and Fluid Energy Solutions. Vytex is a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex for a stronger, more durable, yet environmentally safe, “green” and fully biodegradable product that can be used in a broad range of consumer and medical products. For more information, visit www.vystarcorp.com.
Media: Julie Shepherd, Accentuate PR, 847_275_3643, Julie@accentuatepr.com
Investors: Lee Howley, firstname.lastname@example.org, 508_791_9114
Forward-looking Statements: Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VYST officials are “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as “believes,” “anticipates,” “intends,” “plans,” “expects,” and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VYST actions, product development and delivery, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VYST has no specific intention to update these statements.