Vystar Corp (VYST)

[I ll be back]

So, let this sink in!

Vystar is assembling the distribution network to relaunch sales of RX400 and RX3000 units to the healthcare and medical markets, which UV Flu had ceased due to a lack of sales force, distribution and cash flow constraints. Once sales are firmly re-established, Vystar expects that the air purification products will produce margins of approximately 70%.

Yet the company somehow finds funds to pay who?

Blue Oar Consulting, Inc. (?Blue Oar?) provides business consulting services to the Company. This entity is owned by Gregory Rotman, who is the son of the Company?s CEO, Steven Rotman. Blue Oar Consulting, Inc. (?Blue Oar?) provides business consulting services to the Company. 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. During the year ended December 31, 2021, the Company expensed approximately $461,000 related to the consulting agreement and issued 30,038,513 shares of common stock for past services. In addition, the Company issued 11,364,791 shares of common stock to settle its accounts payable balance of $180,000 in February 2021. In connection with the settlement, a loss of $155,265 was incurred. As of December 31, 2021, the Company had a stock subscription payable balance of approximately $281,000 or approximately 15,603,000 shares and a balance of $180,000 in accounts payable related to this related party.

Have to also wonder how many employees could have REALLY been hired to create a sales force to sell the RX air handlers. Or was the real issue tied to the technology and competitors as the filing talks about?


July should get really interesting around here, better find that popcorn.