Author: admin

SALT LAKE CITY, July 30, 2013 – Play Beverages LLC, CirTran Beverage Corporation and CirTran Corporation (“CirTran Companies,” OTC BB: CIRC) have won in court over Playboy Enterprises International, Inc. (“Playboy”) for the fifth time since December.

Last week, in the Circuit Court of Cook County, Illinois, the Hon. Kathleen M. Pantle again denied Playboy's attempt to dismiss various claims brought by the CirTran Companies against Playboy. Judge Pantle ruled that the CirTran Companies’ claims for breach of the implied covenant of good faith dealing, promissory estoppel and injunctive relief can go forward, effectively barring Playboy from terminating PlayBev’s licensing agreement during the pendency of this lawsuit without further order of the court.

The CirTran Companies were represented by Bryon J. Benevento (pro hac vice) of Dorsey & Whitney LLP of Salt Lake City, and Playboy was represented by Peter Ross (pro hac vice) of Browne George Ross LLP of Los Angeles.

“The CirTran Companies remain free and within our rights to pursue all of our claims, including unlawful conduct, against Playboy,” said Iehab J. Hawatmeh, chairman and president of CirTran.

“Once again, and five times over the last seven months, the courts have been unanimous in dismissing motions and lawsuits brought by Playboy to enjoin our companies from manufacturing and selling Playboy Energy Drink,” he said.

Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation under a product license from Playboy Enterprises to Play Beverages, and is currently available in more than 20 countries around the world.

SALT LAKE CITY, May 21, 2013 – CirTran Corporation (OTC BB: CIRC) announced today that Playboy’s motion to prevent Play Beverages and CirTran Beverage from selling Playboy Energy Drink was denied by Judge Robert W. Gettleman without prejudice, and that Play Beverages’ motion to stay the federal action in favor of its state lawsuit in Chicago against Playboy was granted

In the United States District Court for the Northern District of Illinois’ Eastern Division, Judge Gettleman granted a motion by Play Beverages, LLC, CirTran Beverage Corporation and CirTran Corporation, denying a motion by Playboy Enterprises International, Inc., without prejudice. Playboy had filed on February 1, 2013, seeking to enjoin PlayBev and the CirTran companies from using the trademark, with the defendants counter filing on March 5.

Following Judge Gettleman’s ruling, a report for status and review has been set for October 17, 2013.
In 2012, CirTran’s beverage distribution revenues were up 39% from 2011, and accounted for 98% of its sales. CirTran has operations in Asia, including China, the Middle East, and Africa, as well as in the U.S., South America, Europe and Canada. To date, CirTran has operations in over 20 countries.

“The win last week in U.S. District Court continued CirTran’s very successful litigation on behalf of our beverage business,” said Iehab J. Hawatmeh, the company’s founder, chairman and president.

“Since December 2012, it has been win after win for our beverage business, with CirTran and our partners successful in all settled-to-date and court proceedings involving the Playboy Energy Drink-centric beverage business,” Mr. Hawatmeh said. “A settlement last month, he said, relieved CirTran of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages’ partners.

“Despite time-consuming and costly litigation, CirTran continues to move forward with our Playboy Energy Drink business in North America and around the world,” he said.

SALT LAKE CITY, May 20, 2013 -- CirTran Corporation (OTCBB: CIRC) has filed its Quarterly Report on Form 10-Q for the period ended March 31, 2013, showing a jump in sales and a marked improvement in profits.

CirTran reported that the manufacture and global distribution of its Playboy Energy Drink line continued to drive the company in the quarter, representing 96% of sales.

For the quarter, CirTran reported sales of $868,152, a 40% jump over $618,700 reported for the same period a year ago. That increase, along with a reduction in cost of sales and better overall margins in distribution, resulted in a gross profit of $596,143 for the company as compared with a loss of $140,454 in the first quarter of 2012.

CirTran also showed a significant improvement in operating results, reporting a net loss of $432,480, an improvement of 66% over the loss of $1,288,096 reported for the first quarter of fiscal 2012.

“CirTran and our lawyers have won every court and out-of-court battle over the past six months . . . all involving our Playboy Energy Drink,” said Iehab J. Hawatmeh, CirTran’s founder, chairman and president. “Now, as we continue to resolve other disputes regarding distribution of Playboy Energy Drink in litigation we brought late last year against Playboy, CirTran is also working to normalize business operations by focusing on expanding distribution and sales of Playboy Energy Drink line in the U.S. and more than 20 countries around the world.”

SALT LAKE CITY, April 17, 2013 – CirTran Corporation (OTC BB: CIRC) has filed its Form 10-K for the fiscal year ended December 31, 2012, reporting a significant upturn in sales and an even more dramatic improvement in bottom line results driven by its Playboy Energy Drink line of products.

Revenues from beverage distribution, which accounted for 98% of sales during the year, grew to $4,260,417, a 39% gain over the $3,064,438 reported for fiscal 2011. During 2012, CirTran established operations and gained new revenue in Asia including China, the Middle East, and Africa, among other areas, while operations continued in the U.S., South America, Europe and Canada. Entering 2013, CirTran had beverage distribution operations in over 20 countries.

For fiscal 2012, CirTran reported a loss from operations of $375,813, an improvement of more than 94% from a loss of $6,575,219 reported a year ago.

Overall, for fiscal 2012, CirTran reported a net loss of $1,787,643, a 75% improvement from a loss of $7,043,410 reported a year ago. A major contributor was a decrease in operating expenses from $6,378,374 in 2011 to $3,606,672 in 2012, an improvement of $2,732,622 or 43%.

Iehab J. Hawatmeh, CirTran’s founder, chairman and president, said that in 2012 CirTran gained in its beverage business even as it dealt with costly and time consuming legalities.

“As we have reported in filings starting in December and continuing through the first four months of 2013,” Mr. Hawatmeh said, “CirTran has been victorious in all settled-to-date court proceedings involving our Playboy Energy Drink-centric beverage business.” He said that in a settlement reached earlier this month, CirTran beverage business was relieved of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages’ partners, which will accrue to CirTran’s bottom line in 2013 quarterly and annual filings.

“The courts have ruled for CirTran, and we have benefitted from out-of-court settlements,” Mr. Hawatmeh. “Now we plan to work around the world for the rest of the year to further expand our beverage sales and be back to business full-time rather than to have to deal with law suits and litigation.”

SALT LAKE CITY, April 9, 2013 -- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of energy beverages and consumer products, said today that it has been relieved of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages’ partners involving Playboy Energy Drink line after a settlement. This settlement will improve CirTran’s bottom line by that amount.

CirTran President Iehab J. Hawatmeh said “the Play Beverages Parties,” including Bev Group, LLC, CirTran Beverage Corporation, CirTran Corporation, Fadi Nora and himself, settled with “the LIB-MP parties,” including LIB-MP Beverage, LLC, American Sales and Merchandising, LLC, and individuals Warner K. Depuy, Michael Liberty and Jeffrey Pollack.
Under the agreement, the parties exchanged mutual general releases without payment by any party of any amounts to any other. Accordingly, Play Beverages Parties was relieved of the $1,375,618 payment obligation to the LIB-MP parties. .
Mr. Hawatmeh said that “the LIB-MP parties” had filed the petition that forced PlayBev into involuntary bankruptcy, but in December, 2012, the U.S. Bankruptcy Court (District of Utah) vacated the bankruptcy, freeing PlayBev to take legal actions to protect the product license granted for its Playboy Energy Drink.

That was the first “three consecutive major legal victories for ‘the Play Beverages Parties’,” he said, setting the stage for this settlement. “Now we can go back to work to regain the momentum we had in establishing Playboy Energy Drink a ‘player’ in the international marketplace.”

Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation under a product license from Playboy Enterprises to Play Beverages. It is currently available in more than 20 countries.

SALT LAKE CITY, March 28, 2013 -- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of energy beverages and other consumer products, announced it has entered into a new agreement that converts debt to equity, which included as an exhibit to its Current Report on Form 8-K filed yesterday with the Securities and Exchange Commission.

Iehab J. Hawatmeh, president of CirTran, said the agreement “continues to stabilize the company and better position it to move forward.

“Since December,” he said, “CirTran has benefitted from three favorable court rulings involving Playboy Energy Drink, manufactured and distributed exclusively by CirTran Beverage Corporation under a product license from Playboy Enterprises to Play Beverages. Now, with this agreement, we have even more positive news exemplified by a display of confidence in the company from a leading venture capital firm.”
Mr. Hawatmeh said the agreement with YA Global Investments, L.P. of Jersey City, N.J., includes a loan repayment schedule of $100,000 per month, commencing immediately and extending through March, 2015. CirTran owes YA Global an aggregate of approximately $4.0 million of principal and accrued interest on outstanding convertible debentures issued to YA Global's predecessor-in-interest in 2005 and 2006, and subsequently amended, restated and consolidated.
Between December 27, 2012, and March 15, 2013, YA Global converted an aggregate of $254,036 in amounts due under such convertible debentures to 297,459,076 shares of common stock, with the conversion price set forth in the debentures. Between December 20, 2012, and March 22, 2013, CirTran issued an aggregate of 504,000,000 shares for conversion of debt and services, aggregating $227,500. These issuances included Mr. Hawatmeh ($45,000 converted to 150,000,000 restricted shares) and directors Fadi Nora and Kathryn Hollinger ($45,000 and $7,500 converted to 150,000,000 and 25,000,000 restricted shares, respectively). And between December 20, 2012, and February 28, 2013, CirTran also issued (under a registration statement on Form S-8) an aggregate of 159,000,000 shares to unaffiliated employees and contractors in consideration for services rendered.

SALT LAKE CITY, March 18, 2013 – For the third time in four months, Play Beverages LLC, CirTran Beverage Corporation and CirTran Corporation (OTC BB: CIRC) have won in court in what has proven to be a one-sided legal battle with Playboy Enterprises International, Inc. (“Playboy”).

On March 15, 2013, in the Circuit Court of Cook County, Illinois, the Hon. Kathleen M. Pantle denied Playboy's motion to dismiss Play Beverages’ and CirTran Beverage Corporation's lawsuit against Playboy. Playboy claimed the lawsuit should be dismissed “with prejudice” based upon a stipulation Playboy had reached with Play Beverages in action in Utah (see, “U.S. Judge Takes Play Beverages LLC, Debtor to CirTran Beverage Corporation, Out of Bankruptcy, Free to Take Action to Protect Playboy Energy Drink Licenses,” BusinessWire, December 7, 2012). Judge Pantle disagreed with Playboy's strained interpretation of the stipulation, opting instead to accept Play Beverages’ contention that the stipulation was merely “a standstill agreement.”

Judge Pantle’s ruling allows Play Beverages and CirTran Beverage to pursue their claims, including unlawful conduct against Playboy.

Earlier this year (see “Play Beverages/CirTran Beverage/CirTran Corporation Win over Playboy Corporation in California District Court, BusinessWire, January 31, 2013,) they won yet again.

 “The courts have been unanimous in dismissing suits brought by Playboy in futile attempts to enjoin our companies from manufacturing and selling Playboy Energy Drink,” said Iehab J. Hawatmeh, CirTran’s chairman and president.

“We believed from the outset that Playboy’s claims were frivolous and without merit, and once again are very happy the courts agree,” he said.

“Further,” said Mr. Hawatmeh,” we understand that in all lawsuits there are highs and lows. However, it is comforting to see the courts recognize our rights -- and those of our distributors – so that we may continue our business of selling an amazing energy drink throughout the world.” Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation under a product license from Playboy Enterprises to Play Beverages, and is currently available in more than 20 countries around the world.

SALT LAKE CITY, Jan. 31, 2013 – Play Beverages LLC, CirTran Beverage Corporation and CirTran Corporation (OTC BB: CIRC) announced today the U.S. District Court, Central District of California has ruled in their favor.  The Court denied Playboy Enterprises International, Inc.’s (“Playboy”) motion for injunction and dismissed Playboy’s trademark lawsuit.

In an order issued January 30, 2013, U.S. District Judge S. James Otero ruled in favor of Play Beverages and CirTran in declining to enjoin Play Beverages from selling the Playboy Energy Drink. Judge Otero granted Play Beverages’ motion to dismiss the case without prejudice, finding that Playboy’s lawsuit was inappropriate under the forum selection clause of the License Agreement between Play Beverages and Playboy.  Judge Otero ruled that Playboy could not bring its claims in California.

Less than two months ago, the U.S. Bankruptcy Court for the District of Utah ruled in favor of Play Beverages and the CirTran companies, vacating a bankruptcy and freeing the companies to take legal actions to protect the product license granted for its Playboy Energy Drink (see “U.S. Judge Takes Play Beverages LLC, Debtor to CirTran Beverage Corporation, Out of Bankruptcy, Free to Take Action to Protect Playboy Energy Drink Licenses,” BusinessWire, December 7, 2012).

That judge’s ruling took Play Beverages out of bankruptcy, enabling it to continue its action in state courts against Playboy Enterprises and others to protect its license to produce and sell Playboy Energy Drink.

“Today’s ruling marks continued good news for Play Beverages and the CirTran companies,” said Iehab J. Hawatmeh, CirTran’s president.

“We have been through nearly two years of legal actions, but now there are brighter skies on the horizon. Everyone at Play Beverages and CirTran is excited about getting back to business and regaining the momentum we worked so hard to build in expanding our beverage business and Playboy Energy Drink sales worldwide.”

Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation (OTCBB: CIRC) under a product license from Playboy Enterprises to Play Beverages, and is currently available in more than 20 countries around the world.

SALT LAKE CITY, Dec. 7, 2012 – Play Beverages, LLC announced today that the U.S. Bankruptcy Court for the District of Utah has ruled in its favor and vacated its bankruptcy, freeing it to take legal actions to protect the product license granted for its Playboy Energy Drink.

Judge Joel T. Marker rejected a motion by petitioning creditors, led by the same three creditors who first put Play Beverages into involuntary Chapter 7 bankruptcy in April 2011. The judge’s ruling takes Play Beverages out of bankruptcy, enabling it to continue its action in state courts against Playboy Enterprises and others to protect its license to produce and sell Playboy Energy Drink.

The Bankruptcy Court’s ruling also reject the motion of the U.S. Trustee overseeing the bankruptcy case to convert the case to Chapter 7 or to have it dismissed.  If converted, a trustee would have been appointed to liquidate Play Beverage’s business to repay creditors.

The dismissal followed a two-day evidentiary hearing, with Play Beverages stipulating to an order of dismissal, saying it did not need bankruptcy protection.

“The ruling by Judge Marker to take Play Beverages out of bankruptcy, allowing the resumption of normal business activities, is the end of a nightmare,” said Iehab J. Hawatmeh, CirTran’s president. “Now, after 18 months of seeing every aspect of our business impacted negatively, we can move forward to hopefully regain our momentum and resume growing our beverage business.”

Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation (OTCBB: CIRC) under a product license from Playboy Enterprises to Play Beverages, and is currently available in more than 20 countries around the world.

SALT LAKE CITY, Dec. 3, 2012 -- CirTran Corporation (OTCBB: CIRC), a diversified international contract manufacturer of consumer products, has filed its Quarterly Report on Form 10-Q for the period ended September 30, 2012.

While apologizing to shareholders for the late filing, CirTran said its primary business – manufacturing and distributing the non-alcoholic Playboy Energy Drink – continued to be significantly impacted by legal issues during the quarter and the first nine months of the current fiscal year.

Iehab J. Hawatmeh, CirTran’s president, said that despite difficulties, the company’s CirTran Beverage Corporation (CBC) subsidiary continued to add distributors as per its marketing plan. CBC has partnered with Play Beverages, LLC, to distribute Playboy Energy Drink worldwide under a 2006 license from Playboy Enterprises, which is now in dispute.

For the quarter, CirTran reported a loss of $546,879, as compared with a loss of $925,920 for the same period in 2011. For the nine months ended September 30, 2011, CirTran had a loss of $2,540,462 as compared with a loss of $4,831,703 for the same period in 2011.

CirTran’s sales for the three-month period ended September 30, 2012 dropped to $653,127 from the $832,772 for the same period in 2011, while sales for the nine months ended September 30, 2012, were $1,587,582, down from the $2,913,597 reported for the same period in 2011.

Mr. Hawatmeh said that CirTran is currently working to develop new product lines, reenergize its marketing and sales efforts in its core license manufacturing business, and carefully monitor and improve margins in all aspects of the company’s operations.