Vystar Corp (VYST)

[stervc]

VYST 5 Significant Key Points to Summarize NASDAQ Objectives

Huge VYST News*250 Million Share Buyback/Pays Off Debt
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146108243

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Key Point #1**No Reverse Split

I reached out to the company and confirmed that there is no reverse split. I was informed by the company that the only way that VYST would do a reverse split would be if they needed to do a small one to meet NASDAQ requirements which was why such was given an honorable mention within their last 10-Q:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

I was also informed that if such is the case, VYST would announce a no higher than a 1-10 reverse split at the same time of announcing their application submission to trade on the NASDAQ. If such was to happen, it would be after their upcoming closing of their acquisition of Rotmans that was listed within their last 10-Q under Note 12 Subsequent Events which would immediately make them a NASDAQ company because of the Revenues and Profits that they are generating:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

The company totally understands that a reverse split is not good for the market and would never do such unless VYST needed to meet the NASDAQ requirement of having a minimum $4.00 Bid. Based on the logic from my conversation and the ratio of no higher than a 1-10, they plan to see VYST trading at .50+ per share before such is needed to graduate the company to the NASDAQ or a reverse split would never happen. The company also told me that there will be a share buyback in the near future.

To reiterate… The company informed me that they are going to qualify for NASDAQ with their Revenue and that if they ever did a reverse split, they would be filing for the NASDAQ and a small 1-10 reverse split on the same day.

v/r
Sterling

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Key Point #2**The Immediate .67+ & .26+ Valuations

I have seen where some had posted where Rotmans generates between $50 to $100 Million in Revenues. I was told by the company that such was not true. The company told me that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The company informed me that all the conversions have been completed and that the Outstanding Shares (OS) should be somewhere below 500 million shares. From my conversation, the company believes that the Price to Earnings (PE) Ratio is higher than 20 for its growth rate, but I will use 20 to remain conservative. From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:

Gross Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .48 Net Profit Margin = $16,800,000 Net Income

$16,800,000 Gross Income ÷ 500,000,000 (OS) = .0336 EPS

.0336 EPS x 20 PE Ratio = .672 Per Share Gross Value


Net Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income

$6,650,000 Net Income ÷ 500,000,000 (OS) = .0133 EPS

.0133 EPS x 20 PE Ratio = .266 Per Share Net Value

The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for the VYST.

v/r
Sterling

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Key Point #3**VYST $1.5M Debt Paid & Acquisition Payment

This is huge in my opinion and shows that the company is serious about moving forward with their goals. Also, important to note, I was informed that the Rotmans Furniture store acquisition price is $4 million that will be bought with cash and stock that only converts post reverse split price. The stock component just can’t convert unless it’s post-reverse. This means that the acquisition will be a lot less dilutive. They wanted to be overly fair, especially since the Insiders own over 75% of the Outstanding Shares (OS).

Within the PR below, pay close attention to where it says... CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.

This is a huge show of confidence that leads me to think that they believe that such 15 Million shares are considered at a discount to where they still would make money off of their shares for knowing what is coming. Think about it...

$1,500,000 Debt ÷ 15,000,000 Restricted Shares = .10 Per Share

This means that they were willing to accept 15,000,000 of VYST Restricted Shares at .10 per share to pay off $1.5 Million in Debt. Maybe it's me, but this leads me to believe that whatever they learned to accept such a payoff in VYST Restricted Shares, is going to take the price far higher than .10 per share. Read the PR below:

https://seekingalpha.com/news/3370252-vystar-pays-long-term-debt-1_5m
Vystar pays off long-term debt of $1.5M

Jul. 16, 2018 9:02 AM ET|About: Vystar Corp. (VYST)|By: Niloofer Shaikh, SA News Editor
Vystar Corporation (OTCPK:VYST) has paid off $1.5 M in long-term debt, for a total reduction in long-term debt of $2.6M this year.

CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.

Stated Steve Rotman, CEO of Vystar, “Vystar is now totally free of long-term debt and liens. This helps clean up our balance sheet and enables a fresh start as we execute our strategic plan that includes further acquisitions, expanding the Vytex distribution network, development of new Vytex formulations, and development and launch of new product lines.”

v/r
Sterling

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Key Point #4**VYST Key Ownership Confirmation via Form 4s

After speaking to the company, I learned that Insiders own over 75% of the company. I was told that in the ten years since the Inside ownership has been owning their shares, there has been not one sell. I was told that this can be confirmed via the hundreds of Form 4s filed with the SEC as some of them are very prominent people of which are on the Board for the company. I counted over 280 ownership forms filed, but I won’t go through them all as I will try to only highlight a few key prominent VYST personnel and Board Members. Even though some might not be Board Members anymore, they still are shareholders and provide major input for their investment into VYST and still have a vested interest in their success:

(Sort by the “100 Entries” tab)
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001308027&type=&dateb=&owner=only&start=100&count=100

Doug Craft

CEO of and owns Medicraft, Inc. who is the largest supplier to Medtronic in the world. Medtronic is a $113.9 Billion company that trades on the NYSE at $84.00+ per share:
https://finance.yahoo.com/quote/MDT/key-statistics?p=MDT

https://www.medtronic.com/us-en/index.html


http://www.medicraft.com/



Mitsy Y. Mangum

Owns Lakeview Capital Partners LLC which an over $3 billion in assets under management and she is also a Managing Director:
https://www.bloomberg.com/profiles/people/16697549-mitsy-y-mangum
https://www.bloomberg.com/profiles/companies/1299368D:US-lakeview-capital-partners-llc

This link shows that Lakeview Capital Partners has $2.6 Billion in Assets:
https://money.usnews.com/financial-advisors/firm/lakeview-capital-partners-llc-165931


Michael Ianacone

** Previously the old VP of Xerox Global and has his own value company now.

https://filexch.host/?q=Mike+ianacone+xerox+drivers

Joseph C. Allegra

** Owns Lincoln Lee Investment, Zurich Investment (a $25 Billion Hedge Fund), Diamond Investments I and II, Italian Air I and II.

** He owns the patent on the titanium surgical screw that many people use in many surgeries.

** On the Board Of Directors for MET-test:

https://www.mymettest.com/

http://www.mettest.net/about_us.html
Since inception in 2003, MET-TEST has been providing pulmonary function testing (PFT) and cardiopulmonary exercise testing (CPET) as a standard and centralized service to community based clinics. We have performed well over 65,000 tests and studies in the last 7 years and in the process have accumulated study results and expertise that we routinely share with partners. We work very closely with Dr. Wasserman at Harbor-UCLA, which is nationally recognized as the number one exercise physiology lab in the world. We currently provide services to 53 clinics in nine states as well as participating in Clinical Trials with a Pharma partner. Our expansion plans not only include additional sites in the United States but International as well. We are a privately held corporation headquartered in Atlanta, Georgia.

http://www.mettest.net/board_of_diretors.html

J C Allegra, MD Age 62 Atlanta Georgia Married ( Marilyn ) 3 children / BA from Temple University ( Chemistry ) 1970 / MD from Penn State University//Hershey Medical Center 1974 / Internship and Residency Internal Medicine 1974-1976 Hershey Medical Center / Fellowship Medical Oncology NIH/NCI Bethesda MD 1976-1978 /Senior Investigator NIH/NCI 1978-1980 /Military USPHS 1976-1980 Lt Cmdr / Professor and Chairman of Department of Medicine at University of Louisville 1982-1989 / Ended academic career in 1989 and moved to Atlanta Georgia to become President of T-2 Medical a physician centric Home Health Company Responsible for revenue growth between 1989 and 1993 from 50M to 300M and for listing T-2 on NYSE. Post T-2 functioned as President of OTI a Division of PhyMatrix which was a physician management company in Florida. Left PhyMatrix in 1997 to form NMCR a physician oriented education company and from 1997--2006 led the growth of NMCR to the largest oncology oriented education company in the USA prior to its purchase by Amerisource Bergen. Since 2006, I have functioned as the owner of Lincoln Lee Investments, LLC a family owned investment organization oriented to Health Care Investments Serve on numerous Public and Private Boards and am the author of over 100 publications in peer reviewed medical publication.

Dr. Keith D. Osborn

** Keith is a surgeon by trade, but has vast real estate holdings who is also a big investor with Joe Allegra, the other VYST Board Member.

https://www.resurgens.com/physicians/keith-d-osborn-md

https://www.bloomberg.com/research/stocks/people/person.asp?personId=183937861&privcapId=12739579
Mr. Keith D. Osborn, M.D., serves as Orthopedic Spine Surgeon at Resurgens Orthopaedics, Atlanta, GA. Mr. Osborn serves as a Member of Technical Advisory Board at Vystar Corporation. He has been Director of Vystar Corporation since May 18, 2016. He is a board-certified Orthopaedic Spine Surgeon with 30 years of experience after completing his Spine Fellowship at Harvard University. He received his medical degree from the University of Maryland School of Medicine and performed his residency at Harvard University and Johns Hopkins Hospital. Dr. Osborn currently specializes in Spinal Surgery at Resurgens Orthopaedics in Atlanta with a focus on adult spinal disorders and total disc arthroplasty.

Paul R. Oristaglio

https://www.bloomberg.com/research/stocks/people/person.asp?personId=571959708&privcapId=12739579
Mr. Paul R. Oristaglio, CPA has been a Director of Vystar Corp. since June 20, 2018. Mr. Oristaglio is the Chief Executive Officer and Founder of CFO2higher, which provides financial solutions to business owners and managers, which Mr. Oristaglio started in May 2018. Prior to his position with CFO2higher, Mr. Oristaglio served as President and Sole Proprietor of RIPRO, a financial and operational services company, and prior to that, MR. Oristaglio was CFO, COO, CIO and Co-Founder of MassPRO, Inc., a financial/operation resources company. Mr. Oristaglio is a licensed CPA. Mr. Oristaglio was chosen to serve as a director due to his business acumen and financial background.


https://www.cfo2higher.com/

Steven Rotman

Vystar Names Furniture Industry Leader Steve Rotman as CEO; Appoints 3 Board Members

https://www.cnbc.com/2017/12/20/globe-newswire-vystar-names-furniture-industry-leader-steve-rotman-as-ceo-appoints-3-board-members.html
Mr. Rotman brings extensive management experience to Vystar. He has been President and CEO of Rotmans, one of the oldest and largest furniture and carpet retailers in New England, for more than 40 years. …

“I’m looking forward to working with the Vystar team and its partners in this new role to unleash Vystar’s sales and profitability potential,” stated Steve Rotman. “Vystar’s management, largest creditors, partners, NHS Holdings and major shareholders have worked together over the past six months to formulate a three-pronged strategic plan that would create a sustainable model to bring greater value to all Vystar shareholders. The three strategies are 1) revise Vystar’s business model to enhance revenues beyond Vytex as a pure commodity, 2) augment product offerings, profit margins, and revenues through acquisition, and 3) add depth to senior management.”

Lam Ngoc Minh

https://globenewswire.com/news-release/2017/06/01/1005429/0/en/Major-Latex-Foam-Producer-Lien-A-Partners-with-Vystar-CEO-Invests-in-Vystar.html
VYST has formed a strategic partnership with Lien ‘A, pairing Vystar’s multi-patented, all-natural, virtually allergen free Vytex® latex with one of the top eco-friendly latex foam producers in Vietnam who provides natural rubber latex (NRL) products to 31 countries worldwide. Over the past year, Lien ‘A’s CEO Lam Ngoc Minh took significant equity positions in Vystar and NHS Holdings, LLC (NHS)…

Minh joins a core group of Vystar investors who have invested $20 million in Vystar since inception to launch Vytex in multiple vertical markets and spur the latex and plastics industries to change to sustainably sourced, more durable and biodegradable materials.

Dr. Bryan L. Stone

https://www.bloomberg.com/research/stocks/people/person.asp?personId=547878243&privcapId=12739579
Dr. Bryan Lawrence Stone , M.D. serves as Interim CEO of Fluid Energy Conversion, Inc. Dr. Stone is the Chairman of Medicine at Desert Regional Medical Center in Palm Springs, Calif., and is the Medical Director at multiple DaVita Dialysis Centers. He is also an entrepreneur. He 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 has been Director of Vystar Corporation since December 20, 2017.

William R. Doyle

https://www.bloomberg.com/research/stocks/people/person.asp?personId=49551313&privcapId=12739579
Mr. William R. Doyle, also known as Bill, has been Product Development Consultant at Vystar Corporation since December 20, 2017. Mr. Doyle served as Chief Executive Officer of Vystar Corporation since March 2008 until December 20, 2017 and served as its President since December 2005 and served as its Chief Financial Officer since May 1, 2015. Mr. Doyle served as the Interim Chief Financial Officer of Vystar Corporation from July 29, 2014 to February 1, 2015 and served as its Chief Operating Officer since December 2005. Mr. Doyle served as Vice President of Marketing at Women's Health for Matria Healthcare, Inc. He spearheaded the initial branding efforts at Matria as well as held responsibility for sales development, training, public relations and marketing. He has worked in many aspects of healthcare industry for over twenty years encompassing manufacturing, sales, marketing and advertising. In addition to Matria, he has experience with such companies as Isolyser Company, Inc., McGaw, Inc., Wyeth (Formerly, Lederle Laboratories), and in an advertising capacity for Novartis Ophthalmics. He served as Chairman of the Board at Vystar Corporation since March 2008 until December 20, 2017. He served as a Director of Vystar Corporation since 2005 until December 20, 2017. He serves as a Member of the Board of Directors of the Georgia Chapter of the March of Dimes. Mr. Doyle holds a Bachelor of Science in Biochemistry from Penn State University and Master of Business Administration from Pepperdine University.

Ranjit K Mattha

https://www.bloomberg.com/research/stocks/people/person.asp?personId=288343347&privcapId=12739579
Dr. Ranjit K. Matthan, Ph.D. serves as Director of R&D at Vystar Corporation. Dr. Matthan served as a Consultant to Vystar since 2008. Dr. Matthan has played a significant role in the manufacturing scale up of reduced-protein Vytex® natural rubber latex (NRL) in Malaysia and refining the research and development of manufacturing processes for applications using Vytex NRL, such as latex foam, condoms, adhesives, medical devices, etc. Dr. Matthan is an internationally renowned latex and rubber expert. Dr. Matthan has been associated with the development of natural rubber and rubber based industries manufacturing in South Asia since the 1970s and introduced technically specified natural rubber into India. He has advised national and international companies and research bodies including the Government of India, the Malaysian Rubber Research and Development Board, Asian Development Bank, Industrial Development Bank of India, Revertex (Malaysia) as well as many private companies engaged in latex production and manufacturing. A founding Director of the Bangkok-based Asia Pacific Elastomer Science and Technology (APEST), he has played a key role in sustainability initiatives for natural rubber. He has also been associated with the development and commercial introduction of several eco-friendly natural rubber grades, including Vytex NRL. Dr. Matthan has been a Director of Vystar Corporation since March 12, 2015. Dr. Matthan has received numerous industry awards, including: the prestigious 2014 Institute of Materials, Minerals and Mining, U.K.'s Hancock Medal for his contributions to the development of the environmentally friendly sustainable growth of the global natural rubber industry and the 2006 KMPhilip Award from the All India Rubber Industries Association for significant contributions toward the development of the Indian Rubber Industry. Dr. Matthan has published over 50 scientific and technical papers on natural rubber and lattices and is an invited speaker at several international conferences including the International Latex Conference.

v/r
Sterling

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Key Point #5**Significant VYST $31,319,398 Tax NOL Benefit

VYST has $31,319,398 listed on their Balance Sheet as an Accumulated Deficit within their last Quarterly filing below:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

To first understand what this is and the importance of what it means, I think it is important for one to understand that "Liabilities" and "Expenses" are two different things. "Liabilities" apply to the Balance Sheet and "Expenses" apply to the Income Statement. The $31,319,398 listed on their Balance Sheet as an Accumulated Deficit is nowhere near as bad as I believe it is being perceived by some. An Accumulated Deficit is used as a Tax Shelter for tax write-offs. It's a non-issue and basically a psychological paper entry because it will only affect the Balance Sheet and not the Income Statement for valuation purposes to derive an Earning Per Share (EPS). This will have no negative effect on the outcome for what the company's EPS will be now or in the future, but instead, on the contrary.

An Accumulated Deficit greatly enhances the company’s position as a huge acquisition/merger candidate. This is very attractive for a huge positive Revenue generating company with a significant amount of Gross & Net Income to merge into VYST. Therefore Rotmans Furniture, with its over $35 Million in Revenues and while having 48% to 52% Gross Profit Margin and a 19% Net Profit Margin is a great candidate for VYST.

This is huge because the $31,319,398 is available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. That’s an average of $1,565,970 in the reduction of its taxable income per year over a 20 year time frame that’s derived by dividing such below considering VYST has an Outstanding Shares (OS) amount of 500,000,000 shares. If this number or any other variable changes in the future, then use the Substitution Property accordingly:

$31,319,398 ÷ 20 Years Max Tax NOL = $1,565,970 Per Year Reduction

For the purpose of what I believe is more logical and since getting to the NASDAQ is a primary goal, I believe VYST after acquiring/merging into Rotmans Furniture, will use the $31,319,398 Tax NOL to be carry forward to strengthen their Income Statement over the next four years since they are very profitable. This means that an average of $7,829,850 per year would exist for the reduction of its taxable income per year over a 4 year time frame derived by the logic below:

$31,319,398 ÷ 4 Years Logical Tax NOL = $7,829,850 Per Year Reduction

For what I am going to explain next, I will refer to the $7,829,850 that I explained above as Derivative Net Income for the purpose of deriving an understanding of what this $7,829,850 tax benefit would be worth over the next 4 years considering if VYST was to acquire/merge into a company generating significant Revenues and Net Income such as Rotmans Furniture which was indicated within their 10-Q filed with the SEC.

This is basically like adding $7,829,850 back into a merging company’s Net Income that will be derived for any substantial amount of Net Income that would be generated. Merging into VYST would be better versus registering as a new entity or IPO-ing because you won’t have such huge ”tax shelter” otherwise as a huge tax benefit already existing here with VYST. Please, let me further explain.

Considering the Outstanding Shares (OS) of 500,000,000 shares for VYST, we can derive what I will call a Derivative Earnings Per Share (EPS) to determine what the value of this tax benefit is worth to a company coming into VYST generating significant Net Income considering the formula below:

Net Income ÷ Outstanding Shares (OS) = EPS

$7,829,850 ÷ 500,000,000 shares = .0157 Derivative EPS

The current Price to Earnings (PE) Ratio for the Furniture Industry within the link below is 17.41, but since the trailing PE Ratio is 36.53, I will use 20 which I believe is conservative:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

So, conservatively speaking, this makes the Accumulated Deficit of $31,319,398 from being approximately worth $7,829,850 per year over the next 4 years to be worth .314 per share as derived below:

.0157 Derivative EPS x 20 P/E Ratio = .314 Per Share of Added Value

I am simply saying that if Rotmans Furniture merges into or is acquired by VYST, which was indicated to be doing such within their 10-Q filed with the SEC, since it is profitable with having Net Income, then the amount of value ”to be added” for worth from the NOL will be .314 per share as ”added valuation” over the next 4 years to a the VYST EPS. This alone is absolutely huge! This means that the .67+ and the .26+ per share VYST valuations within the post below can be made to be .98+and the .57+ per share VYST valuations;
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146050256

So, in closing, the $31,319,398 that you see on the Balance Sheet is actually an Accumulated Deficit during the development stages and is listed under the Liabilities and is strategically placed to not hurt the company as such is not in the form of any kind of notes to bring about any dilution. It was created Accumulated Deficits from the old management since the inception of the public entity and is being used by the new management as a Net Operating Loss carry forward for federal income tax purposes.

Below are some good videos to listen and understand the logic regarding Net Operating Losses (NOL):

http://www.investopedia.com/video/play/net-operating-loss-nol/?ad=dirN&qo=serpSearchTopBox&qsrc=1&o=40186

http://www.investopedia.com/terms/l/losscarryforward.asp

http://www.investopedia.com/terms/n/netoperatingloss.asp

Net Operating Losses (NOLs) on the 3 Financial Statements
https://www.youtube.com/watch?v=p_53cPDNxCQ

v/r
Sterling