Investment Thesis
Vystar Corp is technically insolvent with negative stockholders' equity of -$6.5M and faces an imminent liquidity crisis (current ratio 0.05x). The company is burning cash at an unsustainable rate with only $4.5K remaining, while revenue has collapsed 59.7% YoY to just $54.8K with operating losses of $1.1M. Bankruptcy or severe dilutive restructuring appears highly probable without immediate access to capital.
Strengths
- Gross margin of 58% indicates underlying product economics are sound if operations could be scaled
- Debt burden is limited in absolute terms ($616K long-term debt)
- Small asset base ($452.4K) means minimal liquidation complications
Risks
- Negative stockholders' equity of -$6.5M indicates technical insolvency
- Critical liquidity crisis with current ratio of 0.05x and only $4.5K cash remaining
- Revenue collapse of 59.7% YoY to $54.8K with no meaningful business operations
- Operating losses of $1.1M exceed total revenue by 20x; negative FCF of -$295.8K unsustainable
- Negative interest coverage (-30.8x) indicates inability to service debt
- Going concern risk - company will deplete remaining cash imminently
Key Metrics to Watch
- Stockholders' equity trend and path to positive equity
- Cash balance and runway to sustainability
- Revenue stabilization and return to growth trajectory
- Operating cash flow conversion and path to positive FCF
- Debt restructuring announcements or capital raise activities
Financial Metrics
Revenue
54.8K
Net Income
-1.5M
EPS (Diluted)
$-0.08
Free Cash Flow
-295.8K
Total Assets
452.5K
Cash
4.5K
Profitability Ratios
Gross Margin
58.0%
Operating Margin
-1,934.6%
Net Margin
-2,793.9%
ROE
N/A
ROA
-338.5%
FCF Margin
-539.6%
Balance Sheet & Liquidity
Current Ratio
0.05x
Quick Ratio
0.05x
Debt/Equity
N/A
Debt/Assets
1,290.8%
Interest Coverage
-30.80x
Long-term Debt
616.0K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-18T23:45:23.045281 |
Data as of: 2025-12-31 |
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