CIRX CirTran Corporation (PK)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2024

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _______________ to _______________

 

Commission File No. 000-49654

 

CirTran Corporation

(Exact name of registrant as specified in its charter)

 

Nevada		68-0121636
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

 

6360 S Pecos Road, Suite 8, Las Vegas, NV 89120

(Address of principal executive offices and zip code)

 

(801) 963-5112

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

 

Indicate 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 Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

	Large accelerated filer ☐	Accelerated filer ☐
	Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of May 9, 2024, there were 4,945,417 shares of common stock, $0.001 par value, outstanding.

 

 

 

TABLE OF CONTENTS

 

Item		Page
	Part I—Financial Information
1	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 (Audited)	3
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Deficit for the Three Months Ended March 31, 2024 and 2023 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
3	Quantitative and Qualitative Disclosures about Market Risk	15
4	Controls and Procedures	15
	Part II—Other Information
6	Exhibits	17
	Signatures	18

 

 

PART I—FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

CIRTRAN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

		March 31, 2024				December 31, 2023
		(Unaudited)				(Audited)
ASSETS
Current assets:
Cash		$	2,996			$	—
Inventory			858,350				815,612
Deposits on inventory			22,508				26,983
Deposits on inventory - related party			216,113				224,411
Deposits on inventory			216,113				224,411
Accounts receivable			30,179				21,536
Other current assets			431,348				441,095
Total current assets			1,561,494				1,529,637
Investment in securities at cost			300,000				300,000
Property and equipment, net of accumulated depreciation			17,697				18,925
Total assets		$	1,879,191			$	1,848,562
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable		$	640,725			$	625,848
Liabilities for product returns and credits			8,701				8,701
Short-term advances payable			162,966				172,966
Short-term advances payable - related parties			21,882				21,882
Short-term advances payable			21,882				21,882
Accrued liabilities			2,955,068				2,889,389
Accrued payroll and compensation expense			5,092,261				5,067,213
Accrued interest, current portion			5,902,897				5,758,603
Convertible debenture, current portion, net of discounts			264,284				264,284
Note payable, current portion			90,000				90,000
Note payable to stockholders			151,833				151,833
Note payable			151,833				151,833
Derivative liability			1,545,391				1,296,937
Liabilities from discontinued operations			4,549,336				4,511,075
Total current liabilities:			21,385,344				20,858,731
Deferred tax liability			55,946				55,946
Note payable, net of current portion			632,545				634,636
Convertible debenture, net of current portion, net of discount			2,102,129				2,077,934
Total liabilities			24,175,964				23,627,247
Commitments and contingencies			—				—
Stockholders’ deficit:
Common stock, par value $0.001; 100,000,000 shares authorized; 4,945,417 shares issued and outstanding			4,945				4,945
Additional paid-in capital			37,233,561				37,233,561
Accumulated deficit			(59,535,279	)			(59,017,191	)
Total stockholders’ deficit			(22,296,773	)			(21,778,685	)
Total liabilities and stockholders’ deficit		$	1,879,191			$	1,848,562

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

CIRTRAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

		For the Three Months Ended March 31,
		2024				2023
Net sales		$	429,391			$	213,409
Cost of sales			157,897				85,707
Gross profit			271,494				127,702
Operating expenses
Employee costs			125,229				136,695
Selling, general and administrative expenses			192,686				138,678
Total operating expenses			317,915				275,373
Loss from operations			(46,421	)			(147,671	)
Other income (expense)
Interest expense			(184,952	)			(183,288	)
Gain on forgiveness of debt			—				13,000
Loss on derivative valuation			(248,454	)			(124,545	)
Total other expense			(433,406	)			(294,833	)
Net loss from continuing operations			(479,827	)			(442,504	)
Loss from discontinued operations			(38,261	)			(37,841	)
Net loss before income tax			(518,088	)			(480,345	)
Income tax benefit (expense)			—				—
Net loss		$	(518,088	)		$	(480,345	)
Net loss from continuing operations per common share, basic and diluted		$	(0.10	)		$	(0.09	)
Net loss from discontinued operations per common share, basic and diluted		$	(0.01	)		$	(0.01	)
Net loss per common share, basic and diluted		$	(0.10	)		$	(0.10	)
Basic and diluted weighted average common shares outstanding			4,945,417				4,945,417

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

CIRTRAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(Unaudited)

 

		Common Stock								Additional Paid-in				Accumulated				Total stockholders’
		Shares				Amount				Capital				Deficit				deficit
Balance, December 31, 2023			4,945,417			$	4,945			$	37,233,561			$	(59,017,191	)		$	(21,778,685	)
Net income			—				—				—				(518,088	)			(518,088	)
Balance, March 31, 2024			4,945,417			$	4,945			$	37,233,561			$	(59,535,279	)		$	(22,296,773	)

 

		Common Stock								Additional Paid-in				Accumulated				Total stockholders’
		Shares				Amount				Capital				Deficit				deficit
Balance, December 31, 2022			4,945,417			$	4,945			$	37,233,561			$	(79,305,551	)		$	(42,067,045	)
Balance			4,945,417			$	4,945			$	37,233,561			$	(79,305,551	)		$	(42,067,045	)
Net loss			—				—				—				(480,345	)			(480,345	)
Net income (loss)			—				—				—				(480,345	)			(480,345	)
Balance, March 31, 2023			4,945,417			$	4,945			$	37,233,561			$	(79,785,896	)		$	(42,547,390	)
Balance			4,945,417			$	4,945			$	37,233,561			$	(79,785,896	)		$	(42,547,390	)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

CIRTRAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		For the Three Months Ended March 31,
		2024				2023
Cash flows from operating activities
Net loss		$	(518,088	)		$	(480,345	)
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Loss from discontinued operations			38,261				37,841
Depreciation expense			1,228				922
Loss on derivative valuation			248,454				124,545
Debt discount amortization			24,195				23,302
Gain on settlement of debt			—				(13,000	)
Changes in operating assets and liabilities:
Inventory			(42,738	)			44,378
Deposits on inventory			4,475				—
Deposits on inventory - related party			8,298				274,479
Accounts receivable			(8,643	)			20,942
Other current assets			9,747				(11,835	)
Accounts payable			14,877				(264,166	)
Liabilities for product returns and credits			—				214,868
Accrued liabilities			65,679				72,293
Accrued payroll and compensation			25,048				66,558
Accrued interest			144,294				85,816
Net cash provided by operating activities			15,087				196,598
Cash flows from investing activities:			—				—
Cash flows from financing activities:
Repayments of loans payable			(12,091	)			—
Repayments of related-party loans			—				(15,788	)
Net Cash used by financing activities			(12,091	)			(15,788	)
Net change in cash			2,996				180,810
Cash, beginning of period			—				18,081
Cash, end of period		$	2,996			$	198,891
Supplemental disclosure of cash flow information:
Cash paid for interest		$	—			$	—
Cash paid for income taxes		$	—			$	—

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

CIRTRAN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2024

 

NOTE 1 — ORGANIZATION AND NATURE OF OPERATIONS

 

In 1987, CirTran Corporation was incorporated in Nevada under the name Vermillion Ventures, Inc., for the purpose of acquiring other operating corporate entities. We were largely inactive until July 1, 2000, when our wholly owned subsidiary, CirTran Corporation (Utah), acquired substantially all the assets and certain liabilities of Circuit Technology, Inc., founded by our president, Iehab Hawatmeh.

 

We, together with our majority-owned subsidiaries, manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name. Since entering our 2019 five-year manufacturing and distribution agreement with an unrelated party, our efforts have been devoted to phase one of our development of all HUSTLER®-branded products, which led us to generating revenue during 2020 for the first time in several years.

 

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

Our unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in our Form 10-K for the fiscal year ended December 31, 2023. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of March 31, 2024, and the results of our operations and cash flows for the three months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2024.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management 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 revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the company and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran Asia, Inc. Intercompany accounts and transactions have been eliminated in consolidation.

 

Use of Estimates

 

In preparing the financial statements in accordance with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.

 

Concentrations of Credit Risk

 

We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may exceed the Federal Deposit Insurance Corporation insurable limit.

 

Cash Equivalents

 

We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2024 and December 31, 2023.

 

7

 

Revenue Recognition

 

We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for revenue recognition. Adoption of ASC 606 did not have a significant impact on our financial statements. We generate revenue by providing product design services and through the sales of tangible product. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. We determine the transaction price associated with each deliverable based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

 

During the three months ended March 31, 2024 and 2023, we recognized revenue of $19,515 and $52,570, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptance of work product related to those milestones: namely, product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified, and therefore, no asset has been recorded for customer acquisition costs. We have not recognized impairment losses related to the receivables from these contracts during the three months ended March 31, 2024 and 2023.

 

Additionally, we recognized revenues of $409,876 and $160,839 during the three months ended March 31, 2024 and 2023, respectively, related to the delivery of products to our customers. Each delivery is based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product.

 

The Company also recognizes revenue from advanced royalty payments per the terms in its Manufacturing and Distribution Agreement with one of its distributors. The royalty to be received is calculated based on 8% of gross sales, with an annual minimum royalty paid upfront per calendar year for the term of the contract. There is a non-refundable $350,000 Minimum Royalty for FY 2023. The Company recognizes the minimum royalty and corresponding expense at the time of receipt.

 

Accounts Receivable

 

Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount receivable to its net realizable value when needed. As March 31, 2024 and December 31, 2023, the Company has not recorded an allowance for doubtful accounts.

 

Investment in Securities

 

Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at March 31, 2024 and December 31, 2023. Because we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. Pursuant to ASC 321, the Company also searched for observable transactions in the investee’s stock.

 

We evaluated the investment for impairment and determined there was none during the periods presented.

 

Inventories

 

Inventories are stated at the lower of average cost or net realizable value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process.

 

When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us.

 

From time to time, we will place deposits on inventory to be delivered in the future. These deposits are carried as a separate balance sheet component and total $22,508 (non-related-party) and $216,113 (related-party) as of March 31, 2024 and $26,983 (non-related-party) and $224,411 (related-party) as of December 31, 2023.

 

On most of tobacco related products, the Company pays in advance for Federal Excise Taxes and State Excise Taxes prior to receiving product. The Company accrues those taxes on its balance sheet and expenses them per-unit basis as sold.

 

8

 

Inventory balances consisted of the following:

SCHEDULE OF INVENTORY

		March 31, 2024				December 31, 2023
Finished goods		$	817,121			$	772,589
Raw materials			41,229				43,023
Total		$	858,350			$	815,612

 

Fair Value of Financial Instruments

 

ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions, defines fair value, thereby eliminating inconsistencies in guidance found in various prior accounting pronouncements, and increases disclosures surrounding fair value calculations. ASC 820-10-15 establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:

 

Level 1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities are measured using level 3 inputs.

SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS 

		Total Fair Value at March 31, 2024				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs(Level 3)
Derivative liabilities		$	1,545,391			$	—			$	—			$	1,545,391

 

		Total Fair Value at December 31, 2023				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
Derivative liabilities		$	1,296,937			$	—			$	—			$	1,296,937

 

Loss per Share

 

Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted loss per share is similarly calculated, except that the weighted-average number of common shares outstanding would include common shares that may be issued subject to existing rights with dilutive potential when applicable. There were approximately 462,334,000 and 179,468,200 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the three months ended March 31, 2024 and 2023, respectively, due to the anti-dilutive effect these would have on net loss per share. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future.

 

Recently Issued Accounting Pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements properly reflect the change.

 

9

 

NOTE 3 — GOING CONCERN

 

The accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which contemplates our continuation as a going concern. We had a working capital deficiency of $19,823,850 as of March 31, 2024, and a net loss from continuing operations of $479,827 for the three months ended March 31, 2024. As of March 31, 2024, we had an accumulated deficit of $59,535,279. These conditions raise substantial doubt about our ability to continue as a going concern.

 

Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that may be necessary if we are unable to continue as a going concern.

 

In the coming year, our foreseeable cash requirements will relate to development of business operations and associated expenses. We may experience a cash shortfall and be required to raise additional capital.

 

Historically, we have mainly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon our shareholders and us.

 

NOTE 4 — PROPERTY AND EQUIPMENT

 

We incur certain costs associated with the design and development of molds and dies for our contract-manufacturing segment. These costs are held as deposits on the balance sheet until the molds or dies are finished and ready for use. At that point, the costs are included as part of production equipment in property and equipment and are amortized over their useful lives. We hold title to all molds and dies used in the manufacture of products.

 

Property and equipment and estimated service lives consist of the following:

 SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES

		March 31, 2024				December 31, 2023				Useful Life (years)
Furniture and office equipment		$	12,212			$	12,212			5-10
Vehicles			18,672				18,672			3-7
Total			30,884				30,884
Less: accumulated depreciation			(13,187	)			(11,959	)
Property and equipment, net		$	17,697			$	18,925

 

We recorded $1,228 and $922 of depreciation expense during the three months ended March 31, 2024 and 2023.

 

NOTE 5 — RELATED PARTY TRANSACTIONS

 

In 2007, we issued a 10% promissory note to a family member of our president in exchange for $300,000. The note was due on demand after May 2008. There were no repayments made during the periods presented. At March 31, 2024 and December 31, 2023, the principal amount owing on the note was $151,833 and $151,833, respectively. No demand for payment has been made.

 

On March 31, 2008, we issued to this same family member, along with two other company shareholders, promissory notes totaling $315,000 ($105,000 each). Under the terms of these three $105,000 notes, we received total proceeds of $300,000 and agreed to repay the amount received plus a 5% borrowing fee. The notes were due April 30, 2008, after which they were due on demand, with interest accruing at 12% per annum. We made no payments towards the outstanding notes during the periods presented. The principal balance owing on the notes as of March 31, 2024 and December 31, 2023, was $72,466 and $72,466, respectively. No demand for payment has been made.

 

There were $21,882 and $21,882 of short-term advances due to related parties as of March 31, 2024 and December 31, 2023, respectively.

 

We have agreed to issue stock options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of his employment agreement require us to grant options to purchase 6,000 shares of our stock each year, with an exercise price of $0.10. Mr. Hawatmeh held outstanding options to purchase 30,000 shares of common stock as of March 31, 2024. See Note 11–Stock Options and Warrants.

 

As of March 31, 2024 and December 31, 2023, we owed our president a total of $433,379 and $433,379, respectively, in unsecured advances. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans. These amounts are included in our liabilities from discontinued operations.

 

During the three months ended March 31, 2024, we had a net decrease in deposits with a related-party inventory supplier totaling $8,298. The related party is an entity controlled by our chief executive officer. All transactions were at a 2% markup over the related-party’s cost paid for inventory in arm’s-length transactions. Total inventory purchases from the related party were $251,788 and $837,618 during the periods ended March 31, 2024 and December 31, 2023, respectively.

 

10

 

NOTE 6 — OTHER ACCRUED LIABILITIES

 

Accrued tax liabilities consist of delinquent payroll taxes, interest, and penalties owed by us to the Internal Revenue Service (“IRS”) and other tax entities.

 

Accrued liabilities consist of the following:

 SCHEDULE OF ACCRUED LIABILITIES

		March 31, 2024				December 31, 2023
Tax liabilities		$	38,335			$	37,228
Accrued Royalty - Globrands LLC			970,581				1,092,915
Other			1,946,152				1,759,246
Total		$	2,955,068			$	2,889,389

 

Other accrued liabilities as of March 31, 2024 and December 31, 2023, include a non-interest-bearing payable totaling $45,000 and $45,000, respectively, that is due on demand and customer deposits totaling $1,924,814 and $1,735,109, respectively.

 

Accrued payroll and compensation liabilities consist of the following:

 SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES

		March 31, 2024				December 31, 2023
Director fees		$	135,000			$	135,000
Bonus expenses			121,858				121,858
Commissions			2,148				2,148
Consulting			409,822				438,822
Administrative payroll			4,423,433				4,369,385
Total		$	5,092,261			$	5,067,213

 

NOTE 7 — COMMITMENTS AND CONTINGENCIES

 

Litigation and Claims

 

Various vendors, service providers, and others have asserted legal claims in previous years. These creditors generally are not actively seeking collection of amounts due to them, and we have determined that the probability of realizing any loss on these claims is remote and will seek to compromise and settle at a deep discount any of such claims that are asserted for collection. These amounts are included in our current liabilities, except where we believe collection or enforcement of the judgments is barred by the applicable statute of limitations, in which case the liabilities have been eliminated. We have not accrued any liability for claims or judgments that we have determined to be barred by the applicable statute of limitations, which generally is eight years for judgments in Utah.

 

Playboy Enterprises, Inc.

 

Our affiliate, Play Beverages, LLC, filed suit against Playboy Enterprises, Inc., in Cook County, Illinois, Circuit Court in October 2012 asserting numerous claims, including breach of contract and tortious interference. Playboy responded with a counterclaim of breach of contract and trademark infringement. After proceedings in October 2016, the court awarded a judgment of $6.6 million to Playboy against Play Beverages and CirTran Beverage Corp., our subsidiary. The court denied our motion for a new trial and awarded Playboy treble patent infringement damages and attorney’s fees. We filed a notice of appeal in July 2017 and again in March 2018. Playboy has initiated collection efforts but has recovered no funds. In September 2018, the appellate court affirmed the judgment of the circuit court. The balance due related to this judgment, has been included in liabilities in discontinued operations. As of December 31, 2023, the Company received legal representation that the judgement can no longer be enforced after seven years, as a result, the Company has recognized a gain from discontinued operations of $18,878,359 of time barred debt previously included in liabilities from discontinued operations.

 

Delinquent Payroll Taxes, Interest, and Penalties

 

In November 2004, the IRS accepted our amended offer in compromise (the “Offer”) to settle delinquent payroll taxes, interest, and penalties, which required us to pay $500,000, remain current in our payment of taxes for five years, and forego claiming any net operating losses for the years 2001 through 2015 or until we paid taxes on future profits in an amount equal to the taxes of $1,455,767 waived by the Offer. In June 2013, we entered into a partial installment agreement to pay $768,526 in unpaid 2009 payroll taxes, which required us to pay the IRS 5% of cash deposits. The monthly payments were to continue until the account balances were paid in full or until the collection statute of limitation expired on October 6, 2020. We are currently in communication with the IRS regarding the statute of limitations on this settlement and appropriate next steps. During the year ended December 31, 2023, the Company wrote off $512,520 as time barred debt. The amounts of $5,164 and $5,164 were due as March 31, 2024 and December 31, 2023, respectively.

 

11

 

Employment Agreements

 

We engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended in September 2017. In July 2017, Mr. Hawatmeh had resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, the amendment to his employment agreement in September 2017 reinstated Mr. Hawatmeh to his previous positions, with a salary in an amount to be determined. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000 shares of our stock each year, with an exercise price equal to the market price of our common stock as of the grant date, for the maximum term allowed under our stock option plan; (b) provides for health insurance coverage, cell phone, car allowance, life insurance, and director and officer liability insurance, as well as any other bonus approved by our board; and (c) includes additional incentive compensation as follows: (i) a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation, and amortization for the applicable quarter; (ii) bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and (iii) an annual bonus (payable quarterly) equal to 1% of our gross sales of all products, net of returns and allowances. On January 1, 2020, we resumed accruing wages for our chief executive officer. A total of $74,124 and $345,000 was accrued during the periods ended March 31, 2024 and December 31, 2023, respectively.

 

We also have an oral agreement with our other director that requires us to issue options to purchase 2,000 shares of our common stock each year.

 

License Agreements

 

We have entered into agreements requiring us to pay certain royalties for the manufacture and distribution of licensed products. Fees are based on a percentage of sales and remitted quarterly and are included in cost of sales for financial reporting purposes.

 

NOTE 8 — NOTES PAYABLE

 

Notes payable consisted of the following:

SCHEDULE OF NOTES PAYABLE 

		March 31, 2024				December 31, 2023
Note payable to former service provider for past due account payable (current)		$	90,000			$	90,000
Note payable for settlement of debt (long-term)			500,000				500,000
Small Business Administration loan			132,545				134,636
Total		$	722,545			$	724,636

 

There is $379,806 and $366,626 of accrued interest due on these notes as of March 31, 2024 and December 31, 2023, respectively.

 

NOTE 9 — CONVERTIBLE DEBENTURES

 

Convertible debentures consisted of the following:

 SCHEDULE OF CONVERTIBLE DEBENTURES

		March 31, 2024				December 31, 2023
Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022		$	200,000			$	200,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on February 8, 2022			25,000				25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022			25,000				25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on December 8, 2022			25,000				25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on April 30, 2027			2,390,528				2,390,528
Subtotal		$	2,665,528			$	2,665,528
Less: discounts			(299,115	)			(323,310	)
Total		$	2,366,413			$	2,342,218
Less: current portion			(264,284	)			(264,284	)
Long-term portion		$	2,102,129			$	2,077,934

 

The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or the lowest bid price for the 20 trading days prior to conversion.

 

As of March 31, 2024 and December 31, 2023, we had accrued interest on the convertible debentures totaling $1,954,819 and $1,921,590, respectively.

 

12

 

NOTE 10 — DERIVATIVE LIABILITIES

 

As discussed in Note 9—Convertible Debentures, we have entered into five separate agreements to borrow a total of $2,665,528 with the outstanding principal and interest being convertible at the holder’s option into common stock of the company at the lesser of $100 (notes one through four) or $0.10 (note five) or the lowest closing bid price in the prior 20 trading days. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our balance sheet. We measure these instruments at their estimated fair value and recognize changes in their estimated fair value in results of operations during the period of change. We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo simulation as of March 31, 2024, using the following assumptions:

SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE 

Volatility		114.8% - 127.5		%
Risk-free rates			4.83% - 4.98	%
Stock price		$	0.025
Remaining life			0.25- 3.08 years

 

The fair values of the derivative instruments are measured each quarter, which resulted in a loss of $248,454 and $124,545 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the fair market value of the derivatives aggregated $1,545,391 and $1,296,937, respectively.

 

NOTE 11 — STOCK OPTIONS AND WARRANTS

 

Stock Incentive Plans

 

As of March 31, 2024 and December 31, 2023, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end that would be recognized in subsequent periods.

 

As of March 31, 2024 and December 31, 2023, there were 40,000 options issued and vested with a weighted average exercise price of $0.03 and a weighted average remaining life of 1.68 years. Outstanding options as of March 31, 2024, consisted of:

SCHEDULE OF STOCK OPTIONS OUTSTANDING 

Exercise Price				Count				Average Exercise				Remaining Life				Exercisable
$	0.01				32,000				0.01				2.48				32,000
$	0.10				8,000				0.10				4.75				8,000
	Total				40,000				0.03				2.94				40,000

 

NOTE 12—DISCONTINUED OPERATIONS

 

At October 21, 2016, we exited the beverage licensing and distribution business. The assets and liabilities associated with this business are displayed as assets and liabilities from discontinued operations as of March 31, 2024 and December 31, 2023. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations.

 

During the year ended December 31, 2023, the Company received legal representation that the judgement related to Play Beverages, LLC, (Note 7) can no longer be enforced after seven years, as a result, the Company has recognized a gain from discontinued operations of $18,873,932 of time barred debt previously included in liabilities from discontinued operations.

SCHEDULE OF DISCONTINUED OPERATIONS 

Total assets and liabilities included in discontinued operations were as follows:

 

		March 31, 2024				December 31, 2023
Assets from Discontinued Operations:
Cash		$	—			$	—
Total assets from discontinued operations		$	—			$	—
Liabilities from Discontinued Operations:
Accounts payable		$	283,818			$	283,818
Accrued liabilities			58,184				58,184
Accrued interest			1,674,885				1,636,624
Accrued payroll and compensation expense			122,864				122,864
Current maturities of long-term debt			239,085				239,085
Related-party payable			—				—
Short-term advances payable			2,170,500				2,170,500
Total liabilities from discontinued operations		$	4,549,336			$	4,511,075

 

Net loss from discontinued operations for the three months ended March 31, 2024 and 2023, were comprised of the following components:

 

		2024				2023
		Three Months ended March 31,
		2024				2023
Other expense:
Interest expense			(38,261	)			(37,841	)
Net loss from discontinued operations		$	(38,261	)		$	(37,841	)

 

NOTE 13 — SUBSEQUENT EVENTS

 

In accordance with SFAS 165 (ASC 855-10), management has performed an evaluation of subsequent events through the date that the unaudited consolidated financial statements were issued and has determined that it does not have any material subsequent events to disclose in these unaudited consolidated financial statements.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion should be read in conjunction with our condensed consolidated unaudited financial statements and notes to our unaudited financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.

 

Overview

 

Based on our diversified expertise in manufacturing, marketing, distribution, and technology services in a wide variety of consumer products, including tobacco products, medical devices, and beverages, around the world, we have an innovative and consumer-focused approach to brand portfolio management, resting on a strong understanding of consumers domestically, and we have established a footprint in more than 50 key, international markets.

 

Since 2021, we continue under our 2019 five-year manufacturing and distribution agreement with an unrelated party to manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name.

 

Results of Operations for the Three Months Ended March 31, 2024, Compared to the Three Months Ended March 31, 2023

 

Sales and Cost of Sales

 

During the three months ended March 31, 2024 and 2023, we had net sales of $429,391 and $213,409, respectively, an increase of $215,982 or 101.2%. We had cost of sales of $157,897 and $85,707, respectively, for gross profit of $271,494 and $127,702, respectively. Revenues are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution agreement. The increase in revenue in the current period is due to additional income from the licensing of novelties in an international territory.

 

Operating Expenses

 

During the three months ended March 31, 2024 and 2023, employee costs were $125,229 and $136,695 respectively, a decrease of $11,466 or 8.4%. Employee costs decreased in the current period due to efficiencies based on the current business level.

 

Selling, general, and administrative expenses (“S,G&A”)were $192,686 and $138,678, respectively, an increase of $54,008 or 38.9%. The increase in S,G&A expenses period over period was the result of additional marketing spending to support the brand.

 

Other Expense

 

Total other expense during the three months ended March 31, 2024 was $433,406 compared to $294,833 for the prior period. In the current period we had $184,952 of interest expense and a loss of $248,454 on derivative valuation. In the prior period we had $183,288 of interest expense, a loss of $124,545 on derivative valuation and a gain on forgiveness of debt of $13,000.

 

Net Loss

 

Our net loss from continuing operations for the three months ended March 31, 2024, was $479,827 compared to $442,504 for the three months ended March 31, 2023, an increase of $37,323. Our net loss increased in the current period mainly due to the increase of our other expense.

 

Liquidity and Capital Resources

 

We have had a history of losses from operations, as our expenses have been greater than our revenue. Our accumulated deficit was approximately $59.5 million at March 31, 2024. As of March 31, 2024, we had current assets of $1.6 million and current liabilities of approximately $21 million, resulting in a working capital deficit of approximately $19.4 million at March 31, 2024.

 

Operating Activities

 

During the three months ended March 31, 2024, operations provided $15,087 of net cash, comprised of a loss of $518,088, noncash items totaling $312,138 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $221,037. During the three months ended March 31, 2023, operations generated $196,598 of net cash, comprised of a loss of $480,345, noncash items totaling $173,610 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $503,333.

 

Investing Activities

 

There were no investing activities during the three months ended March 31, 2024 and 2023.

 

 

Financing Activities

 

During the three months ended March 31, 2024, financing activities used $12,091 of cash, compared to using $15,788 of cash during the three months ended March 31, 2023. Cash used in financing consisted of repayments of loans.

 

Our Capital Resources and Anticipated Requirements

 

Our monthly operating costs are approximately $35,000 per month, excluding approximately $50,000 of accruing interest expense and capital expenditures. We continue to focus on generating revenue and reducing our monthly business expenses through cost reductions and operational streamlining. We have only recently begun to generate enough cash to sustain our day-to-day operations, and we expect to access external capital resources in the future to fund any new projects we may undertake. We cannot assure that we will be successful in obtaining such capital.

 

If we seek infusions of capital from investors, it is unlikely that we will be able to obtain additional debt financing. If we did incur additional debt, we would be required to devote additional cash flow to servicing the debt and securing the debt with assets.

 

Our issuance of additional shares for equity or for conversion of debt could dilute the value of our common stock and existing stockholders’ positions.

 

Convertible Debentures and Note Payable

 

We currently have an outstanding amended, restated, and consolidated secured convertible debenture with Tekfine, LLC, an unrelated entity, with a maturity date of April 30, 2027, to the extent not previously converted. The amended debenture had a total outstanding principal balance of $2.4 million, with accrued interest of $1.9 million as of March 31, 2024. We also have four additional convertible debentures with Tekfine with maturity dates ranging from December 8, 2022, until December 30, 2022, totaling $275,000, unless earlier converted. The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or $0.10 (depending on the instrument) or the lowest bid price for the 20 trading days prior to conversion.

 

As of March 31, 2024, there is $21,882 of short-term advances due to related parties. The advances are due on demand and included in current liabilities. No demand for payment has been made.

 

Going Concern

 

These interim unaudited financial statements have been prepared on the going concern basis, which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. Accordingly, the interim unaudited financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we not be unable to continue as a going concern.

 

Critical Accounting Policies

 

We have identified the policies outlined below as critical to our business operations and an understanding of our results of operations. Refer to Note 2 – Summary of Significant Accounting Policies for discussion.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company, we are not required to provide the information required by this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

As of March 31, 2024, we carried out an evaluation, under the supervision and with the participation of management, including our chief executive and financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, management concluded that our disclosure controls and procedures were not effective as of March 31, 2024, to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the periods prescribed by U.S. Securities and Exchange Commission and that such information is accumulated and communicated to management, including our chief executive and financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

 

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls is based, in part, upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Changes in Internal Control over Financial Reporting

 

There has been no change in our internal control over financial reporting during the quarter ended March 31, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II—OTHER INFORMATION

 

ITEM 6. EXHIBITS

 

The following exhibits are filed as a part of this report:

 

Exhibit Number*		Title of Document		Location
Item 31		Rule 13a-14(a)/15d-14(a) Certifications
31.01		Certification of Principal Executive and Principal Financial Officer Pursuant to Rule 13a-14		This filing.
Item 32		Section 1350 Certifications
32.01		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		This filing.
Item 101		Interactive Data File
101.INS		Inline XBRL Instance Document		This filing.
101.SCH		Inline XBRL Taxonomy Extension Schema		This filing.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase		This filing.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase		This filing.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase		This filing.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase		This filing.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

*

All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the document’s sequence.

**

The XBRL related information in Exhibit 101 will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and will not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as is expressly set forth by specific reference in such filing or document.

 

 

SIGNATURE PAGE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	CIRTRAN CORPORATION
Dated: May 15, 2024	By:	/s/ Iehab Hawatmeh
		Iehab Hawatmeh, President
		Principal Executive and Financial Officer

 

 

 

Exhibit 31.01

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14

 

I, Iehab Hawatmeh, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of CirTran Corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: May 15, 2024

 

/s/ Iehab Hawatmeh
Iehab Hawatmeh
Principal Executive Officer and Principal Financial Officer

 

 

 

 

Exhibit 32.01

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of CirTran Corporation (the “Company”) on Form 10-Q for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Iehab Hawatmeh, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

	(1)	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

/s/ Iehab Hawatmeh
Iehab Hawatmeh
Chief Executive Officer
Chief Financial Officer
May 15, 2024

 

 

 

v3.24.1.1.u2

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-49654
Entity Registrant Name	CirTran Corporation
Entity Central Index Key	0000813716
Entity Tax Identification Number	68-0121636
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	6360 S Pecos Road
Entity Address, Address Line Two	Suite 8
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89120
City Area Code	(801)
Local Phone Number	963-5112
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,945,417

v3.24.1.1.u2

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash	$ 2,996
Inventory	858,350	815,612
Accounts receivable	30,179	21,536
Other current assets	431,348	441,095
Total current assets	1,561,494	1,529,637
Investment in securities at cost	300,000	300,000
Property and equipment, net of accumulated depreciation	17,697	18,925
Total assets	1,879,191	1,848,562
Current liabilities:
Accounts payable	640,725	625,848
Liabilities for product returns and credits	8,701	8,701
Accrued liabilities	2,955,068	2,889,389
Accrued payroll and compensation expense	5,092,261	5,067,213
Accrued interest, current portion	5,902,897	5,758,603
Convertible debenture, current portion, net of discounts	264,284	264,284
Derivative liability	1,545,391	1,296,937
Liabilities from discontinued operations	4,549,336	4,511,075
Total current liabilities:	21,385,344	20,858,731
Deferred tax liability	55,946	55,946
Note payable, net of current portion	632,545	634,636
Convertible debenture, net of current portion, net of discount	2,102,129	2,077,934
Total liabilities	24,175,964	23,627,247
Commitments and contingencies
Stockholders’ deficit:
Common stock, par value $0.001; 100,000,000 shares authorized; 4,945,417 shares issued and outstanding	4,945	4,945
Additional paid-in capital	37,233,561	37,233,561
Accumulated deficit	(59,535,279)	(59,017,191)
Total stockholders’ deficit	(22,296,773)	(21,778,685)
Total liabilities and stockholders’ deficit	1,879,191	1,848,562
Nonrelated Party [Member]
Current assets:
Deposits on inventory	22,508	26,983
Current liabilities:
Short-term advances payable	162,966	172,966
Note payable	90,000	90,000
Related Party [Member]
Current assets:
Deposits on inventory	216,113	224,411
Current liabilities:
Short-term advances payable	21,882	21,882
Note payable	$ 151,833	$ 151,833

v3.24.1.1.u2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	4,945,417	4,945,417
Common stock, shares outstanding	4,945,417	4,945,417

v3.24.1.1.u2

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 429,391	$ 213,409
Cost of sales	157,897	85,707
Gross profit	271,494	127,702
Operating expenses
Employee costs	125,229	136,695
Selling, general and administrative expenses	192,686	138,678
Total operating expenses	317,915	275,373
Loss from operations	(46,421)	(147,671)
Other income (expense)
Interest expense	(184,952)	(183,288)
Gain on forgiveness of debt		13,000
Loss on derivative valuation	(248,454)	(124,545)
Total other expense	(433,406)	(294,833)
Net loss from continuing operations	(479,827)	(442,504)
Loss from discontinued operations	(38,261)	(37,841)
Net loss before income tax	(518,088)	(480,345)
Income tax benefit (expense)
Net loss	$ (518,088)	$ (480,345)

v3.24.1.1.u2

Consolidated Statements of Operations - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net loss from continuing operations per common share, basic	$ (0.10)	$ (0.09)
Net loss from continuing operations per common share, diluted	(0.10)	(0.09)
Net loss from discontinued operations per common share, basic	(0.01)	(0.01)
Net loss from discontinued operations per common share, diluted	(0.01)	(0.01)
Net loss per common share, basic	(0.10)	(0.10)
Net loss per common share, diluted	$ (0.10)	$ (0.10)
Basic weighted average common shares outstanding	4,945,417	4,945,417
Diluted weighted average common shares outstanding	4,945,417	4,945,417

v3.24.1.1.u2

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 4,945	$ 37,233,561	$ (79,305,551)	$ (42,067,045)
Balance, shares at Dec. 31, 2022	4,945,417
Net income (loss)			(480,345)	(480,345)
Balance at Mar. 31, 2023	$ 4,945	37,233,561	(79,785,896)	(42,547,390)
Balance, shares at Mar. 31, 2023	4,945,417
Balance at Dec. 31, 2023	$ 4,945	37,233,561	(59,017,191)	(21,778,685)
Balance, shares at Dec. 31, 2023	4,945,417
Net income (loss)			(518,088)	(518,088)
Balance at Mar. 31, 2024	$ 4,945	$ 37,233,561	$ (59,535,279)	$ (22,296,773)
Balance, shares at Mar. 31, 2024	4,945,417

v3.24.1.1.u2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (518,088)	$ (480,345)
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Loss from discontinued operations	38,261	37,841
Depreciation expense	1,228	922
Loss on derivative valuation	248,454	124,545
Debt discount amortization	24,195	23,302
Gain on settlement of debt		(13,000)
Changes in operating assets and liabilities:
Inventory	(42,738)	44,378
Deposits on inventory	4,475
Deposits on inventory - related party	8,298	274,479
Accounts receivable	(8,643)	20,942
Other current assets	9,747	(11,835)
Accounts payable	14,877	(264,166)
Liabilities for product returns and credits		214,868
Accrued liabilities	65,679	72,293
Accrued payroll and compensation	25,048	66,558
Accrued interest	144,294	85,816
Net cash provided by operating activities	15,087	196,598
Cash flows from investing activities:
Cash flows from financing activities:
Repayments of loans payable	(12,091)
Repayments of related-party loans		(15,788)
Net Cash used by financing activities	(12,091)	(15,788)
Net change in cash	2,996	180,810
Cash, beginning of period		18,081
Cash, end of period	2,996	198,891
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for income taxes

v3.24.1.1.u2

ORGANIZATION AND NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND NATURE OF OPERATIONS	NOTE 1 — ORGANIZATION AND NATURE OF OPERATIONS   In 1987, CirTran Corporation was incorporated in Nevada under the name Vermillion Ventures, Inc., for the purpose of acquiring other operating corporate entities. We were largely inactive until July 1, 2000, when our wholly owned subsidiary, CirTran Corporation (Utah), acquired substantially all the assets and certain liabilities of Circuit Technology, Inc., founded by our president, Iehab Hawatmeh.   We, together with our majority-owned subsidiaries, manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name. Since entering our 2019 five-year manufacturing and distribution agreement with an unrelated party, our efforts have been devoted to phase one of our development of all HUSTLER®-branded products, which led us to generating revenue during 2020 for the first time in several years.

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of Presentation   Our unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in our Form 10-K for the fiscal year ended December 31, 2023. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of March 31, 2024, and the results of our operations and cash flows for the three months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2024.   Use of Estimates   The preparation of financial statements in conformity with U.S. GAAP requires management 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 revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates.   Principles of Consolidation   The consolidated financial statements include the accounts of the company and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran Asia, Inc. Intercompany accounts and transactions have been eliminated in consolidation.   Use of Estimates   In preparing the financial statements in accordance with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.   Concentrations of Credit Risk   We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may exceed the Federal Deposit Insurance Corporation insurable limit.   Cash Equivalents   We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2024 and December 31, 2023.     Revenue Recognition   We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for revenue recognition. Adoption of ASC 606 did not have a significant impact on our financial statements. We generate revenue by providing product design services and through the sales of tangible product. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. We determine the transaction price associated with each deliverable based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.   During the three months ended March 31, 2024 and 2023, we recognized revenue of $19,515 and $52,570, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptance of work product related to those milestones: namely, product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified, and therefore, no asset has been recorded for customer acquisition costs. We have not recognized impairment losses related to the receivables from these contracts during the three months ended March 31, 2024 and 2023.   Additionally, we recognized revenues of $409,876 and $160,839 during the three months ended March 31, 2024 and 2023, respectively, related to the delivery of products to our customers. Each delivery is based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product.   The Company also recognizes revenue from advanced royalty payments per the terms in its Manufacturing and Distribution Agreement with one of its distributors. The royalty to be received is calculated based on 8% of gross sales, with an annual minimum royalty paid upfront per calendar year for the term of the contract. There is a non-refundable $350,000 Minimum Royalty for FY 2023. The Company recognizes the minimum royalty and corresponding expense at the time of receipt.   Accounts Receivable   Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount receivable to its net realizable value when needed. As March 31, 2024 and December 31, 2023, the Company has not recorded an allowance for doubtful accounts.   Investment in Securities   Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at March 31, 2024 and December 31, 2023. Because we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. Pursuant to ASC 321, the Company also searched for observable transactions in the investee’s stock.   We evaluated the investment for impairment and determined there was none during the periods presented.   Inventories   Inventories are stated at the lower of average cost or net realizable value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process.   When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us.   From time to time, we will place deposits on inventory to be delivered in the future. These deposits are carried as a separate balance sheet component and total $22,508 (non-related-party) and $216,113 (related-party) as of March 31, 2024 and $26,983 (non-related-party) and $224,411 (related-party) as of December 31, 2023.   On most of tobacco related products, the Company pays in advance for Federal Excise Taxes and State Excise Taxes prior to receiving product. The Company accrues those taxes on its balance sheet and expenses them per-unit basis as sold.     Inventory balances consisted of the following: SCHEDULE OF INVENTORY     March 31, 2024     December 31, 2023   Finished goods   $ 817,121     $ 772,589   Raw materials     41,229       43,023   Total   $ 858,350     $ 815,612     Fair Value of Financial Instruments   ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions, defines fair value, thereby eliminating inconsistencies in guidance found in various prior accounting pronouncements, and increases disclosures surrounding fair value calculations. ASC 820-10-15 establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:   Level 1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.   Level 2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.   Level 3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities are measured using level 3 inputs. SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS      Total Fair Value at March 31, 2024     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs(Level 3)   Derivative liabilities   $ 1,545,391     $ —     $ —     $ 1,545,391         Total Fair Value at December 31, 2023     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs (Level 3)   Derivative liabilities   $ 1,296,937     $ —     $ —     $ 1,296,937     Loss per Share   Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted loss per share is similarly calculated, except that the weighted-average number of common shares outstanding would include common shares that may be issued subject to existing rights with dilutive potential when applicable. There were approximately 462,334,000 and 179,468,200 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the three months ended March 31, 2024 and 2023, respectively, due to the anti-dilutive effect these would have on net loss per share. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future.   Recently Issued Accounting Pronouncements   The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements properly reflect the change.

v3.24.1.1.u2

GOING CONCERN	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 — GOING CONCERN   The accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which contemplates our continuation as a going concern. We had a working capital deficiency of $19,823,850 as of March 31, 2024, and a net loss from continuing operations of $479,827 for the three months ended March 31, 2024. As of March 31, 2024, we had an accumulated deficit of $59,535,279. These conditions raise substantial doubt about our ability to continue as a going concern.   Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that may be necessary if we are unable to continue as a going concern.   In the coming year, our foreseeable cash requirements will relate to development of business operations and associated expenses. We may experience a cash shortfall and be required to raise additional capital.   Historically, we have mainly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon our shareholders and us.

v3.24.1.1.u2

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 — PROPERTY AND EQUIPMENT   We incur certain costs associated with the design and development of molds and dies for our contract-manufacturing segment. These costs are held as deposits on the balance sheet until the molds or dies are finished and ready for use. At that point, the costs are included as part of production equipment in property and equipment and are amortized over their useful lives. We hold title to all molds and dies used in the manufacture of products.   Property and equipment and estimated service lives consist of the following:  SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES     March 31, 2024     December 31, 2023     Useful Life (years) Furniture and office equipment   $ 12,212     $ 12,212     5-10 Vehicles     18,672       18,672     3-7 Total     30,884       30,884       Less: accumulated depreciation     (13,187 )     (11,959 )     Property and equipment, net   $ 17,697     $ 18,925         We recorded $1,228 and $922 of depreciation expense during the three months ended March 31, 2024 and 2023.

v3.24.1.1.u2

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 — RELATED PARTY TRANSACTIONS   In 2007, we issued a 10% promissory note to a family member of our president in exchange for $300,000. The note was due on demand after May 2008. There were no repayments made during the periods presented. At March 31, 2024 and December 31, 2023, the principal amount owing on the note was $151,833 and $151,833, respectively. No demand for payment has been made.   On March 31, 2008, we issued to this same family member, along with two other company shareholders, promissory notes totaling $315,000 ($105,000 each). Under the terms of these three $105,000 notes, we received total proceeds of $300,000 and agreed to repay the amount received plus a 5% borrowing fee. The notes were due April 30, 2008, after which they were due on demand, with interest accruing at 12% per annum. We made no payments towards the outstanding notes during the periods presented. The principal balance owing on the notes as of March 31, 2024 and December 31, 2023, was $72,466 and $72,466, respectively. No demand for payment has been made.   There were $21,882 and $21,882 of short-term advances due to related parties as of March 31, 2024 and December 31, 2023, respectively.   We have agreed to issue stock options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of his employment agreement require us to grant options to purchase 6,000 shares of our stock each year, with an exercise price of $0.10. Mr. Hawatmeh held outstanding options to purchase 30,000 shares of common stock as of March 31, 2024. See Note 11–Stock Options and Warrants.   As of March 31, 2024 and December 31, 2023, we owed our president a total of $433,379 and $433,379, respectively, in unsecured advances. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans. These amounts are included in our liabilities from discontinued operations.   During the three months ended March 31, 2024, we had a net decrease in deposits with a related-party inventory supplier totaling $8,298. The related party is an entity controlled by our chief executive officer. All transactions were at a 2% markup over the related-party’s cost paid for inventory in arm’s-length transactions. Total inventory purchases from the related party were $251,788 and $837,618 during the periods ended March 31, 2024 and December 31, 2023, respectively.

v3.24.1.1.u2

OTHER ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
OTHER ACCRUED LIABILITIES	NOTE 6 — OTHER ACCRUED LIABILITIES   Accrued tax liabilities consist of delinquent payroll taxes, interest, and penalties owed by us to the Internal Revenue Service (“IRS”) and other tax entities.   Accrued liabilities consist of the following:  SCHEDULE OF ACCRUED LIABILITIES     March 31, 2024     December 31, 2023                 Tax liabilities   $ 38,335     $ 37,228   Accrued Royalty - Globrands LLC     970,581       1,092,915   Other     1,946,152       1,759,246   Total   $ 2,955,068     $ 2,889,389     Other accrued liabilities as of March 31, 2024 and December 31, 2023, include a non-interest-bearing payable totaling $45,000 and $45,000, respectively, that is due on demand and customer deposits totaling $1,924,814 and $1,735,109, respectively.   Accrued payroll and compensation liabilities consist of the following:  SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES     March 31, 2024     December 31, 2023                 Director fees   $ 135,000     $ 135,000   Bonus expenses     121,858       121,858   Commissions     2,148       2,148   Consulting     409,822       438,822   Administrative payroll     4,423,433       4,369,385   Total   $ 5,092,261     $ 5,067,213

v3.24.1.1.u2

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 — COMMITMENTS AND CONTINGENCIES   Litigation and Claims   Various vendors, service providers, and others have asserted legal claims in previous years. These creditors generally are not actively seeking collection of amounts due to them, and we have determined that the probability of realizing any loss on these claims is remote and will seek to compromise and settle at a deep discount any of such claims that are asserted for collection. These amounts are included in our current liabilities, except where we believe collection or enforcement of the judgments is barred by the applicable statute of limitations, in which case the liabilities have been eliminated. We have not accrued any liability for claims or judgments that we have determined to be barred by the applicable statute of limitations, which generally is eight years for judgments in Utah.   Playboy Enterprises, Inc.   Our affiliate, Play Beverages, LLC, filed suit against Playboy Enterprises, Inc., in Cook County, Illinois, Circuit Court in October 2012 asserting numerous claims, including breach of contract and tortious interference. Playboy responded with a counterclaim of breach of contract and trademark infringement. After proceedings in October 2016, the court awarded a judgment of $6.6 million to Playboy against Play Beverages and CirTran Beverage Corp., our subsidiary. The court denied our motion for a new trial and awarded Playboy treble patent infringement damages and attorney’s fees. We filed a notice of appeal in July 2017 and again in March 2018. Playboy has initiated collection efforts but has recovered no funds. In September 2018, the appellate court affirmed the judgment of the circuit court. The balance due related to this judgment, has been included in liabilities in discontinued operations. As of December 31, 2023, the Company received legal representation that the judgement can no longer be enforced after seven years, as a result, the Company has recognized a gain from discontinued operations of $18,878,359 of time barred debt previously included in liabilities from discontinued operations.   Delinquent Payroll Taxes, Interest, and Penalties   In November 2004, the IRS accepted our amended offer in compromise (the “Offer”) to settle delinquent payroll taxes, interest, and penalties, which required us to pay $500,000, remain current in our payment of taxes for five years, and forego claiming any net operating losses for the years 2001 through 2015 or until we paid taxes on future profits in an amount equal to the taxes of $1,455,767 waived by the Offer. In June 2013, we entered into a partial installment agreement to pay $768,526 in unpaid 2009 payroll taxes, which required us to pay the IRS 5% of cash deposits. The monthly payments were to continue until the account balances were paid in full or until the collection statute of limitation expired on October 6, 2020. We are currently in communication with the IRS regarding the statute of limitations on this settlement and appropriate next steps. During the year ended December 31, 2023, the Company wrote off $512,520 as time barred debt. The amounts of $5,164 and $5,164 were due as March 31, 2024 and December 31, 2023, respectively.     Employment Agreements   We engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended in September 2017. In July 2017, Mr. Hawatmeh had resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, the amendment to his employment agreement in September 2017 reinstated Mr. Hawatmeh to his previous positions, with a salary in an amount to be determined. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000 shares of our stock each year, with an exercise price equal to the market price of our common stock as of the grant date, for the maximum term allowed under our stock option plan; (b) provides for health insurance coverage, cell phone, car allowance, life insurance, and director and officer liability insurance, as well as any other bonus approved by our board; and (c) includes additional incentive compensation as follows: (i) a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation, and amortization for the applicable quarter; (ii) bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and (iii) an annual bonus (payable quarterly) equal to 1% of our gross sales of all products, net of returns and allowances. On January 1, 2020, we resumed accruing wages for our chief executive officer. A total of $74,124 and $345,000 was accrued during the periods ended March 31, 2024 and December 31, 2023, respectively.   We also have an oral agreement with our other director that requires us to issue options to purchase 2,000 shares of our common stock each year.   License Agreements   We have entered into agreements requiring us to pay certain royalties for the manufacture and distribution of licensed products. Fees are based on a percentage of sales and remitted quarterly and are included in cost of sales for financial reporting purposes.

v3.24.1.1.u2

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2024
Notes Payable
NOTES PAYABLE	NOTE 8 — NOTES PAYABLE   Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE      March 31, 2024     December 31, 2023                 Note payable to former service provider for past due account payable (current)   $ 90,000     $ 90,000   Note payable for settlement of debt (long-term)     500,000       500,000   Small Business Administration loan     132,545       134,636   Total   $ 722,545     $ 724,636     There is $379,806 and $366,626 of accrued interest due on these notes as of March 31, 2024 and December 31, 2023, respectively.

v3.24.1.1.u2

CONVERTIBLE DEBENTURES	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
CONVERTIBLE DEBENTURES	NOTE 9 — CONVERTIBLE DEBENTURES   Convertible debentures consisted of the following:  SCHEDULE OF CONVERTIBLE DEBENTURES     March 31, 2024     December 31, 2023                 Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022   $ 200,000     $ 200,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on February 8, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on December 8, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on April 30, 2027     2,390,528       2,390,528   Subtotal   $ 2,665,528     $ 2,665,528   Less: discounts     (299,115 )     (323,310 ) Total   $ 2,366,413     $ 2,342,218   Less: current portion     (264,284 )     (264,284 ) Long-term portion   $ 2,102,129     $ 2,077,934     The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or the lowest bid price for the 20 trading days prior to conversion.   As of March 31, 2024 and December 31, 2023, we had accrued interest on the convertible debentures totaling $1,954,819 and $1,921,590, respectively.

v3.24.1.1.u2

DERIVATIVE LIABILITIES	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE LIABILITIES	NOTE 10 — DERIVATIVE LIABILITIES   As discussed in Note 9—Convertible Debentures, we have entered into five separate agreements to borrow a total of $2,665,528 with the outstanding principal and interest being convertible at the holder’s option into common stock of the company at the lesser of $100 (notes one through four) or $0.10 (note five) or the lowest closing bid price in the prior 20 trading days. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our balance sheet. We measure these instruments at their estimated fair value and recognize changes in their estimated fair value in results of operations during the period of change. We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo simulation as of March 31, 2024, using the following assumptions: SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE  Volatility   114.8% - 127.5 % Risk-free rates     4.83% - 4.98 % Stock price   $ 0.025   Remaining life     0.25- 3.08 years     The fair values of the derivative instruments are measured each quarter, which resulted in a loss of $248,454 and $124,545 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the fair market value of the derivatives aggregated $1,545,391 and $1,296,937, respectively.

v3.24.1.1.u2

STOCK OPTIONS AND WARRANTS	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE 11 — STOCK OPTIONS AND WARRANTS   Stock Incentive Plans   As of March 31, 2024 and December 31, 2023, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end that would be recognized in subsequent periods.   As of March 31, 2024 and December 31, 2023, there were 40,000 options issued and vested with a weighted average exercise price of $0.03 and a weighted average remaining life of 1.68 years. Outstanding options as of March 31, 2024, consisted of: SCHEDULE OF STOCK OPTIONS OUTSTANDING  Exercise Price     Count     Average Exercise     Remaining Life     Exercisable   $ 0.01       32,000       0.01       2.48       32,000   $ 0.10       8,000       0.10       4.75       8,000     Total       40,000       0.03       2.94       40,000

v3.24.1.1.u2

DISCONTINUED OPERATIONS	3 Months Ended
	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 12—DISCONTINUED OPERATIONS   At October 21, 2016, we exited the beverage licensing and distribution business. The assets and liabilities associated with this business are displayed as assets and liabilities from discontinued operations as of March 31, 2024 and December 31, 2023. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations.   During the year ended December 31, 2023, the Company received legal representation that the judgement related to Play Beverages, LLC, (Note 7) can no longer be enforced after seven years, as a result, the Company has recognized a gain from discontinued operations of $18,873,932 of time barred debt previously included in liabilities from discontinued operations. SCHEDULE OF DISCONTINUED OPERATIONS  Total assets and liabilities included in discontinued operations were as follows:       March 31, 2024     December 31, 2023   Assets from Discontinued Operations:                 Cash   $ —     $ —   Total assets from discontinued operations   $ —     $ —                     Liabilities from Discontinued Operations:                 Accounts payable   $ 283,818     $ 283,818   Accrued liabilities     58,184       58,184   Accrued interest     1,674,885       1,636,624   Accrued payroll and compensation expense     122,864       122,864   Current maturities of long-term debt     239,085       239,085   Related-party payable     —       —   Short-term advances payable     2,170,500       2,170,500   Total liabilities from discontinued operations   $ 4,549,336     $ 4,511,075     Net loss from discontinued operations for the three months ended March 31, 2024 and 2023, were comprised of the following components:       2024     2023       Three Months ended March 31,       2024     2023   Other expense:                 Interest expense     (38,261 )     (37,841 ) Net loss from discontinued operations   $ (38,261 )   $ (37,841 )

v3.24.1.1.u2

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 — SUBSEQUENT EVENTS   In accordance with SFAS 165 (ASC 855-10), management has performed an evaluation of subsequent events through the date that the unaudited consolidated financial statements were issued and has determined that it does not have any material subsequent events to disclose in these unaudited consolidated financial statements.

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation   Our unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in our Form 10-K for the fiscal year ended December 31, 2023. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of March 31, 2024, and the results of our operations and cash flows for the three months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2024.
Use of Estimates	Use of Estimates   The preparation of financial statements in conformity with U.S. GAAP requires management 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 revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation   The consolidated financial statements include the accounts of the company and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran Asia, Inc. Intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates   In preparing the financial statements in accordance with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.
Concentrations of Credit Risk	Concentrations of Credit Risk   We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may exceed the Federal Deposit Insurance Corporation insurable limit.
Cash Equivalents	Cash Equivalents   We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2024 and December 31, 2023.
Revenue Recognition	Revenue Recognition   We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for revenue recognition. Adoption of ASC 606 did not have a significant impact on our financial statements. We generate revenue by providing product design services and through the sales of tangible product. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. We determine the transaction price associated with each deliverable based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.   During the three months ended March 31, 2024 and 2023, we recognized revenue of $19,515 and $52,570, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptance of work product related to those milestones: namely, product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified, and therefore, no asset has been recorded for customer acquisition costs. We have not recognized impairment losses related to the receivables from these contracts during the three months ended March 31, 2024 and 2023.   Additionally, we recognized revenues of $409,876 and $160,839 during the three months ended March 31, 2024 and 2023, respectively, related to the delivery of products to our customers. Each delivery is based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product.   The Company also recognizes revenue from advanced royalty payments per the terms in its Manufacturing and Distribution Agreement with one of its distributors. The royalty to be received is calculated based on 8% of gross sales, with an annual minimum royalty paid upfront per calendar year for the term of the contract. There is a non-refundable $350,000 Minimum Royalty for FY 2023. The Company recognizes the minimum royalty and corresponding expense at the time of receipt.
Accounts Receivable	Accounts Receivable   Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount receivable to its net realizable value when needed. As March 31, 2024 and December 31, 2023, the Company has not recorded an allowance for doubtful accounts.
Investment in Securities	Investment in Securities   Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at March 31, 2024 and December 31, 2023. Because we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. Pursuant to ASC 321, the Company also searched for observable transactions in the investee’s stock.   We evaluated the investment for impairment and determined there was none during the periods presented.
Inventories	Inventories   Inventories are stated at the lower of average cost or net realizable value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process.   When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us.   From time to time, we will place deposits on inventory to be delivered in the future. These deposits are carried as a separate balance sheet component and total $22,508 (non-related-party) and $216,113 (related-party) as of March 31, 2024 and $26,983 (non-related-party) and $224,411 (related-party) as of December 31, 2023.   On most of tobacco related products, the Company pays in advance for Federal Excise Taxes and State Excise Taxes prior to receiving product. The Company accrues those taxes on its balance sheet and expenses them per-unit basis as sold.     Inventory balances consisted of the following: SCHEDULE OF INVENTORY     March 31, 2024     December 31, 2023   Finished goods   $ 817,121     $ 772,589   Raw materials     41,229       43,023   Total   $ 858,350     $ 815,612
Fair Value of Financial Instruments	Fair Value of Financial Instruments   ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions, defines fair value, thereby eliminating inconsistencies in guidance found in various prior accounting pronouncements, and increases disclosures surrounding fair value calculations. ASC 820-10-15 establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:   Level 1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.   Level 2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.   Level 3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities are measured using level 3 inputs. SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS      Total Fair Value at March 31, 2024     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs(Level 3)   Derivative liabilities   $ 1,545,391     $ —     $ —     $ 1,545,391         Total Fair Value at December 31, 2023     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs (Level 3)   Derivative liabilities   $ 1,296,937     $ —     $ —     $ 1,296,937
Loss per Share	Loss per Share   Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted loss per share is similarly calculated, except that the weighted-average number of common shares outstanding would include common shares that may be issued subject to existing rights with dilutive potential when applicable. There were approximately 462,334,000 and 179,468,200 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the three months ended March 31, 2024 and 2023, respectively, due to the anti-dilutive effect these would have on net loss per share. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements   The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements properly reflect the change.

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SCHEDULE OF INVENTORY	Inventory balances consisted of the following: SCHEDULE OF INVENTORY     March 31, 2024     December 31, 2023   Finished goods   $ 817,121     $ 772,589   Raw materials     41,229       43,023   Total   $ 858,350     $ 815,612
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS	SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS      Total Fair Value at March 31, 2024     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs(Level 3)   Derivative liabilities   $ 1,545,391     $ —     $ —     $ 1,545,391         Total Fair Value at December 31, 2023     Quoted prices in active markets (Level 1)     Significant other observable inputs (Level 2)     Significant unobservable inputs (Level 3)   Derivative liabilities   $ 1,296,937     $ —     $ —     $ 1,296,937

v3.24.1.1.u2

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES	Property and equipment and estimated service lives consist of the following:  SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES     March 31, 2024     December 31, 2023     Useful Life (years) Furniture and office equipment   $ 12,212     $ 12,212     5-10 Vehicles     18,672       18,672     3-7 Total     30,884       30,884       Less: accumulated depreciation     (13,187 )     (11,959 )     Property and equipment, net   $ 17,697     $ 18,925

v3.24.1.1.u2

OTHER ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
SCHEDULE OF ACCRUED LIABILITIES	Accrued liabilities consist of the following:  SCHEDULE OF ACCRUED LIABILITIES     March 31, 2024     December 31, 2023                 Tax liabilities   $ 38,335     $ 37,228   Accrued Royalty - Globrands LLC     970,581       1,092,915   Other     1,946,152       1,759,246   Total   $ 2,955,068     $ 2,889,389
SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES	Accrued payroll and compensation liabilities consist of the following:  SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES     March 31, 2024     December 31, 2023                 Director fees   $ 135,000     $ 135,000   Bonus expenses     121,858       121,858   Commissions     2,148       2,148   Consulting     409,822       438,822   Administrative payroll     4,423,433       4,369,385   Total   $ 5,092,261     $ 5,067,213

v3.24.1.1.u2

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Payable
SCHEDULE OF NOTES PAYABLE	Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE      March 31, 2024     December 31, 2023                 Note payable to former service provider for past due account payable (current)   $ 90,000     $ 90,000   Note payable for settlement of debt (long-term)     500,000       500,000   Small Business Administration loan     132,545       134,636   Total   $ 722,545     $ 724,636

v3.24.1.1.u2

CONVERTIBLE DEBENTURES (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
SCHEDULE OF CONVERTIBLE DEBENTURES	Convertible debentures consisted of the following:  SCHEDULE OF CONVERTIBLE DEBENTURES     March 31, 2024     December 31, 2023                 Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022   $ 200,000     $ 200,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on February 8, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on December 8, 2022     25,000       25,000   Convertible debenture, 5% stated interest rate, secured by all our assets, due on April 30, 2027     2,390,528       2,390,528   Subtotal   $ 2,665,528     $ 2,665,528   Less: discounts     (299,115 )     (323,310 ) Total   $ 2,366,413     $ 2,342,218   Less: current portion     (264,284 )     (264,284 ) Long-term portion   $ 2,102,129     $ 2,077,934

v3.24.1.1.u2

DERIVATIVE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE	SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE  Volatility   114.8% - 127.5 % Risk-free rates     4.83% - 4.98 % Stock price   $ 0.025   Remaining life     0.25- 3.08 years

v3.24.1.1.u2

STOCK OPTIONS AND WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
SCHEDULE OF STOCK OPTIONS OUTSTANDING	SCHEDULE OF STOCK OPTIONS OUTSTANDING  Exercise Price     Count     Average Exercise     Remaining Life     Exercisable   $ 0.01       32,000       0.01       2.48       32,000   $ 0.10       8,000       0.10       4.75       8,000     Total       40,000       0.03       2.94       40,000

v3.24.1.1.u2

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
SCHEDULE OF DISCONTINUED OPERATIONS	SCHEDULE OF DISCONTINUED OPERATIONS  Total assets and liabilities included in discontinued operations were as follows:       March 31, 2024     December 31, 2023   Assets from Discontinued Operations:                 Cash   $ —     $ —   Total assets from discontinued operations   $ —     $ —                     Liabilities from Discontinued Operations:                 Accounts payable   $ 283,818     $ 283,818   Accrued liabilities     58,184       58,184   Accrued interest     1,674,885       1,636,624   Accrued payroll and compensation expense     122,864       122,864   Current maturities of long-term debt     239,085       239,085   Related-party payable     —       —   Short-term advances payable     2,170,500       2,170,500   Total liabilities from discontinued operations   $ 4,549,336     $ 4,511,075     Net loss from discontinued operations for the three months ended March 31, 2024 and 2023, were comprised of the following components:       2024     2023       Three Months ended March 31,       2024     2023   Other expense:                 Interest expense     (38,261 )     (37,841 ) Net loss from discontinued operations   $ (38,261 )   $ (37,841 )

v3.24.1.1.u2

SCHEDULE OF INVENTORY (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Finished goods	$ 817,121	$ 772,589
Raw materials	41,229	43,023
Total	$ 858,350	$ 815,612

v3.24.1.1.u2

SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Platform Operator, Crypto Asset [Line Items]
Derivative liabilities	$ 1,545,391	$ 1,296,937
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liabilities
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liabilities
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liabilities	$ 1,545,391	$ 1,296,937

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Product Information [Line Items]
Cash equivalents	$ 0		$ 0
Revenue recognized	$ 429,391	$ 213,409
Percentage of royalty gross sales	8.00%
Non-refundable minimum royalty			350,000
Allowance for doubtful accounts receivable	$ 0		0
Investment in securities	$ 300,000		300,000
Potentially issuable common shares	462,334,000	179,468,200
Digital Multi Media Technology [Member]
Product Information [Line Items]
Investment in securities	$ 300,000		300,000
Digital Multi Media Technology [Member] | Maximum [Member]
Product Information [Line Items]
Stock percentage	20.00%
Nonrelated Party [Member]
Product Information [Line Items]
Deposits on inventory	$ 22,508		26,983
Related Party [Member]
Product Information [Line Items]
Deposits on inventory	216,113		$ 224,411
Product Delivery to Customers [Member]
Product Information [Line Items]
Revenue recognized	409,876	$ 160,839
Product Development Service [Member]
Product Information [Line Items]
Revenue recognized	$ 19,515	$ 52,570

v3.24.1.1.u2

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficiency	$ 19,823,850
Net loss from continuing operations	479,827
Accumulated deficit	$ 59,535,279	$ 59,017,191

v3.24.1.1.u2

SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 30,884	$ 30,884
Less: accumulated depreciation	(13,187)	(11,959)
Property and equipment, net	17,697	18,925
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	$ 12,212	12,212
Furniture and Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	5 years
Furniture and Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	10 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total	$ 18,672	$ 18,672
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	3 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	7 years

v3.24.1.1.u2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,228	$ 922

v3.24.1.1.u2

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		3 Months Ended	12 Months Ended
	Mar. 31, 2008	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2007
Related Party Transaction [Line Items]
Notes payable		$ 722,545	$ 724,636
Number of options granted to purchase shares		2,000
Iehab Hawatmeh [Member]
Related Party Transaction [Line Items]
Borrowing fee percentage		5.00%
Due to related parties		$ 433,379	433,379
Iehab Hawatmeh [Member] | Employee Agreement [Member]
Related Party Transaction [Line Items]
Number of options granted to purchase shares		6,000
Options granted, exercise price		$ 0.10
Number of stock options outstanding		30,000
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Decrease in deposits with a related-party inventory supplier		$ 8,298
Inventory percentage		2.00%
Inventory purchase from related party		$ 251,788	837,618
Related Party [Member]
Related Party Transaction [Line Items]
Due to related parties		21,882	21,882
Promissory Notes [Member]
Related Party Transaction [Line Items]
Debt instrument interest rate	12.00%
Notes payable		72,466	72,466
Notes payable, face amount	$ 315,000
proceeds from notes payable	$ 300,000
Borrowing fee percentage	5.00%
Promissory Notes [Member] | Family Member of President [Member]
Related Party Transaction [Line Items]
Notes payable, face amount	$ 105,000
Promissory Notes [Member] | Shareholder One [Member]
Related Party Transaction [Line Items]
Notes payable, face amount	105,000
Promissory Notes [Member] | Shareholder Two [Member]
Related Party Transaction [Line Items]
Notes payable, face amount	$ 105,000
Promissory Notes [Member] | Family Member of President [Member]
Related Party Transaction [Line Items]
Debt instrument interest rate				10.00%
Proceeds from related party debt				$ 300,000
Notes payable		$ 151,833	$ 151,833

v3.24.1.1.u2

SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Tax liabilities	$ 38,335	$ 37,228
Accrued Royalty - Globrands LLC	970,581	1,092,915
Other	1,946,152	1,759,246
Total	$ 2,955,068	$ 2,889,389

v3.24.1.1.u2

SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Director fees	$ 135,000	$ 135,000
Bonus expenses	121,858	121,858
Commissions	2,148	2,148
Consulting	409,822	438,822
Administrative payroll	4,423,433	4,369,385
Total	$ 5,092,261	$ 5,067,213

v3.24.1.1.u2

OTHER ACCRUED LIABILITIES (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Other accrued liabilities	$ 45,000	$ 45,000
Customer deposits liabilities	$ 1,924,814	$ 1,735,109

v3.24.1.1.u2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended	12 Months Ended
	Sep. 30, 2017	Oct. 31, 2016	Jun. 30, 2013	Nov. 30, 2004	Mar. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Number of options granted to purchase shares					2,000
Employment Agreements [Member] | Iehab Hawatmeh [Member]
Loss Contingencies [Line Items]
Number of options granted to purchase shares	6,000
Quarterly bonus as stated percentage of earnings before interest, taxes, depreciation and amortization for the applicable quarter	5.00%
Bonus percentage of net purchase price of acquisitions completed	1.00%
Annual bonus percentage of gross sales, net of returns and allowances	1.00%
Accrued wages					$ 74,124	$ 345,000
Delinquent Payroll Taxes Interest and Penalties [Member]
Loss Contingencies [Line Items]
Payment for acceptance				$ 500,000
Payment of tax term				5 years
Amount of taxes waived				$ 1,455,767
Accrued payroll taxes			$ 768,526
Internal revenue service rate of cash deposit			5.00%
Loss contingency accrual						512,520
Delinquent Payroll Taxes Interest and Penalties [Member] | Related Party [Member]
Loss Contingencies [Line Items]
Due to related party					$ 5,164	5,164
Playboy Enterprises, Inc. [Member]
Loss Contingencies [Line Items]
Litigation settlement amount		$ 6,600,000
Gain from discontinued operations						$ 18,878,359

v3.24.1.1.u2

SCHEDULE OF NOTES PAYABLE (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Notes Payable
Note payable to former service provider for past due account payable (current)	$ 90,000	$ 90,000
Note payable for settlement of debt (long-term)	500,000	500,000
Small Business Administration loan	132,545	134,636
Total	$ 722,545	$ 724,636

v3.24.1.1.u2

NOTES PAYABLE (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Notes Payable [Member]
Short-Term Debt [Line Items]
Accrued interest	$ 379,806	$ 366,626

v3.24.1.1.u2

SCHEDULE OF CONVERTIBLE DEBENTURES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Subtotal	$ 2,665,528	$ 2,665,528
Less: discounts	(299,115)	(323,310)
Total	2,366,413	2,342,218
Less: current portion	(264,284)	(264,284)
Long-term portion	2,102,129	2,077,934
Convertible Debt One [Member]
Short-Term Debt [Line Items]
Subtotal	200,000	200,000
Convertible Debenture Two [Member]
Short-Term Debt [Line Items]
Subtotal	25,000	25,000
Convertible Debenture Three [Member]
Short-Term Debt [Line Items]
Subtotal	25,000	25,000
Convertible Debenture Four [Member]
Short-Term Debt [Line Items]
Subtotal	25,000	25,000
Convertible Debenture Five [Member]
Short-Term Debt [Line Items]
Subtotal	$ 2,390,528	$ 2,390,528

v3.24.1.1.u2

SCHEDULE OF CONVERTIBLE DEBENTURES (Details) (Parenthetical)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Convertible Debt One [Member]
Short-Term Debt [Line Items]
Convertible debenture, stated interest rate	5.00%	5.00%
Convertible debenture, maturity date	May 30, 2022	May 30, 2022
Convertible Debenture Two [Member]
Short-Term Debt [Line Items]
Convertible debenture, stated interest rate	5.00%	5.00%
Convertible debenture, maturity date	Feb. 08, 2022	Feb. 08, 2022
Convertible Debenture Three [Member]
Short-Term Debt [Line Items]
Convertible debenture, stated interest rate	5.00%	5.00%
Convertible debenture, maturity date	May 30, 2022	May 30, 2022
Convertible Debenture Four [Member]
Short-Term Debt [Line Items]
Convertible debenture, stated interest rate	5.00%	5.00%
Convertible debenture, maturity date	Dec. 08, 2022	Dec. 08, 2022
Convertible Debenture Five [Member]
Short-Term Debt [Line Items]
Convertible debenture, stated interest rate	5.00%	5.00%
Convertible debenture, maturity date	Apr. 30, 2027	Apr. 30, 2027

v3.24.1.1.u2

CONVERTIBLE DEBENTURES (Details Narrative)	3 Months Ended
	Mar. 31, 2024 USD ($) Integer $ / shares	Dec. 31, 2023 USD ($)
Short-Term Debt [Line Items]
Convertible stock price trigger | $ / shares	$ 100
Debt convertible, threshold trading days | Integer	20
Convertible Debentures [Member]
Short-Term Debt [Line Items]
Accrued interest | $	$ 1,954,819	$ 1,921,590

v3.24.1.1.u2

SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE (Details)	3 Months Ended
	Mar. 31, 2024
Measurement Input, Price Volatility [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input	114.8
Measurement Input, Price Volatility [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input	127.5
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input	4.83
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input	4.98
Measurement Input, Share Price [Member]
Derivative [Line Items]
Derivative liability, measurement input	0.025
Measurement Input, Maturity [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, remaining life	3 months
Measurement Input, Maturity [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, remaining life	3 years 29 days

v3.24.1.1.u2

DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Convertible debentures	$ 2,665,528		$ 2,665,528
Terms of conversion feature description	convertible at the holder’s option into common stock of the company at the lesser of $100 (notes one through four) or $0.10 (note five) or the lowest closing bid price in the prior 20 trading days.
Lowest bid price	$ 100
Loss on derivative valuation	$ (248,454)	$ (124,545)
Derivative liabilities current	$ 1,545,391		$ 1,296,937

v3.24.1.1.u2

SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Count	40,000
Average Exercise | $ / shares	$ 0.03
Remaining Life	2 years 11 months 8 days
Exercisable	40,000
Exercise Price Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price | $ / shares	$ 0.01
Count	32,000
Average Exercise | $ / shares	$ 0.01
Remaining Life	2 years 5 months 23 days
Exercisable	32,000
Exercise Price Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price | $ / shares	$ 0.10
Count	8,000
Average Exercise | $ / shares	$ 0.10
Remaining Life	4 years 9 months
Exercisable	8,000

v3.24.1.1.u2

STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Equity [Abstract]
Unrecognized compensation	$ 0	$ 0
Options issued and vested	40,000	40,000
Weighted average exercise price	$ 0.03	$ 0.03
Weighted average remaining life	1 year 8 months 4 days	1 year 8 months 4 days

v3.24.1.1.u2

SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Assets from Discontinued Operations:
Cash
Total assets from discontinued operations
Liabilities from Discontinued Operations:
Accounts payable	283,818		283,818
Accrued liabilities	58,184		58,184
Accrued interest	1,674,885		1,636,624
Accrued payroll and compensation expense	122,864		122,864
Current maturities of long-term debt	239,085		239,085
Related-party payable
Short-term advances payable	2,170,500		2,170,500
Total liabilities from discontinued operations	4,549,336		$ 4,511,075
Other expense:
Interest expense	(38,261)	$ (37,841)
Net loss from discontinued operations	$ (38,261)	$ (37,841)

v3.24.1.1.u2

DISCONTINUED OPERATIONS (Details Narrative)	12 Months Ended
	Dec. 31, 2023 USD ($)
Play Beverages LLC [Member]
Gain (loss) on discontinued operations	$ 18,873,932

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