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CirTran Finalizes New Forbearance Agreements and Loan Repayment Schedules

Posted on March 28, 2012June 1, 2020 by admin

SALT LAKE CITY, March 28, 2012 -- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of consumer products including energy beverages, said today it has entered into two new Forbearance Agreements, which are included as exhibits to its Current Report on Form 8-K filed with the Securities and Exchange Commission.

CirTran said that an amended Forbearance Agreement with YA Global Investments, L.P. of Jersey City, N.J., includes a loan repayment schedule that started this month and extends through March 2014. The agreement relates to debentures issued by CirTran to YA Global, formerly Cornell Capital Partners, LP, with an aggregate current outstanding balance of approximately $4.0 million.

CirTran also announced a new Forbearance Agreement with Advanced Beauty Solutions, LLC (ABS) of Los Angeles, continuing a business relationship that began in 2005 and which includes the purchase of certain ABS assets in mid-2006 including True Ceramic Pro flat iron and hair dryer kits marketed and sold via TV infomercials. The restructured agreement calls for payment from CirTran to ABS through 2016.

“These agreements bode well for CirTran, now and in the coming years,” said Iehab J. Hawatmeh, the company’s chairman and president. “We particularly value the backing we have had for years from YA Global and its management team, and appreciate the confidence in our evolving business plan and growth.”

Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, Utah, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites; and CirTran Beverage, which has partnered with Play Beverages, LLC, to introduce and distribute the Playboy Energy Drink.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. CirTran disclaims any obligation or intention to update any forward-looking statement.

Gain on Derivative Valuation Boosts CirTran in Second Quarter

Posted on August 19, 2011June 1, 2020 by admin

SALT LAKE CITY, August 19, 2010 – CirTran Corporation (OTCBB: CIRC), a diversified international contract manufacturer of consumer products, has filed Form 10-Q for the quarter ended June 30, 2011, reporting net income for the quarter attributed to a gain in the value of derivatives held by the company.

For the quarter, CirTran reported net sales of $685,625 as compared with $2,313,843 (adjusted) for the same period in 2010. For the six months ended June 30, 2011, CirTran had net sales of $2,080,825 as compared with $4,096,702 (adjusted) for the first six months of fiscal 2010.

CirTran reported a gain of $6,005,885 in the value of derivatives it held during the quarter, as compared with a gain in derivative value of $120,652 in the same period in fiscal 2010. That substantial increase boosted the net income attributable to CirTran to $5,263,106 for the quarter as compared with a loss of $118,174 in the second quarter of fiscal 2010.

CirTran Chairman and President Iehab J. Hawatmeh said his company “continues to battle day-to-day in a tumultuous world marketplace and economy. Like small and large companies around the globe, we are fighting for sales while trimming costs wherever we can.” Mr. Hawatmeh said that for the quarter ended June 30, 2011 CirTran’s cost of sales were $133,130 or 19% of sales, a 67% reduction from the $1,011,742, or 48% of sales, reported for the same quarter in fiscal 2010.

Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as a premier international, full-service contract manufacturer. From its headquarters in Salt Lake City, where it operates along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites, and CirTran Beverage, which has partnered with Play Beverages, LLC to introduce and distribute the Playboy Energy Drink.

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Beverage Sales, Margins and Gross Profit Grow at CirTran

Posted on May 25, 2011June 1, 2020 by admin

SALT LAKE CITY, May 25, 2011 – CirTran Corporation (OTC BB: CIRC), a diversified international manufacturer and distributor of consumer products, has filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, reporting increases in beverage sales and in gross profit while a significant loss in the value of company-held derivatives resulted in a substantial net loss.

CirTran’s sales for the quarter were $1,395,200 as compared with the adjusted sales total of $1,782,859 reported for the first quarter of 2010. The company also reported a cost of sales of $195,287, a five times-plus improvement as compared with $1,147,433 for the same period in 2010. The resulting gain in sales margin generated a gross profit of $655,848 for the quarter, nearly a six-times gain over a gross profit reported by CirTran of $110,043 for the first quarter of 2010.

Revenue from CirTran’s Beverage Distribution segment also grew in the period to $1,341,259 as compared with $1,120,934 in the first quarter of 2010. The Beverage Distribution segment manufactures, markets and distributes Playboy-licensed energy drinks domestically and internationally through CirTran Beverage Corp. on behalf of Play Beverages, LLC, a licensee of Playboy Enterprises International, Inc.

“CirTran experienced continued progress in improving our beverage sales, margins and gross profit during the first quarter,” said Iehab J. Hawatmeh, CirTran’s chairman, president and CEO. “Unfortunately,” he said, “a loss of $7,871,711 in derivatives held by the company was far more than could be overcome in our effort to have a positive bottom line.”

Please note: CirTran is in the process of filing an amendment to its quarterly report to correct certain typographical errors included in the original filing. This press release includes the corrected figures.

Founded in 1993, CirTran Corporation (www.CirTran.com) has evolved from its roots as an international, full-service contract manufacturer. Today, CirTran’s operations include: CirTran Beverage, which has partnered with Play Beverages, LLC (www.playboyenergy.com) to introduce and distribute the Playboy Energy Drink; CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry, and CirTran Online, which offers products directly to consumers through major retail web sites.

All trademarks are properties of their respective owners.

CirTran Reports 332% Growth in Energy Beverage Sales in 10-K Filing

Posted on April 18, 2011June 1, 2020 by admin

SALT LAKE CITY, April 18, 2011 – CirTran Corporation (OTC BB: CIRC) continued to focus on and highlight the international growth and sales of its Playboy Energy Drink product line in its filing of Form 10-K for the year ended December 31, 2010.

CirTran, which consolidated certain entities in its financial statements for the first time as a result of the nature of its business arrangements, reported that sales to external customers by its Beverage Distribution segment, including sales of Playboy Energy Drink, grew worldwide by 332 per cent during the year, totaling $7,712,492, well more than three times sales of $1,784,028 of the previous year. Also during 2010, new agreements were signed to distribute Playboy Energy Drink in Michigan, Illinois, Arizona, Pennsylvania, New Jersey and Texas. New agreements were also signed to add distribution of Playboy Energy Drink in Russia, Ukraine, Spain, Andorra, the United Kingdom, France, the Netherlands, Jordan, the United Arab Emirates, Brazil, Uruguay, Paraguay, Argentina, Poland, Latvia, Lithuania and Canada.
As of the start of the second quarter of fiscal 2011, Playboy Energy Drink was available in more than 40 countries worldwide.

For fiscal 2010, CirTran reported a net loss of $4,954,638, a reduction of $860,015 or 14.8 per cent from a loss of $5,814,653 for fiscal 2009. Consolidated net sales were $9,044,902, down 7 per cent from $9,732,855 in fiscal 2009, while the net loss from operations was $2,972,488, an improvement of more than 31.6 per cent compared with a net loss from operations of $4,342,761 in fiscal 2009.
Iehab J. Hawatmeh, CirTran’s founder, president and CEO, said that the 2010 bottom line was impacted by a non-cash loss of $889,297 on derivative valuation, where a gain of $100,295 was reported the previous year, and a net loss of $2,336,985 attributable to non-controlling interest due to consolidating Play Beverages, LLC effective January 1, 2010.

Mr. Hawatmeh said that CirTran “remains steadfast in our focus on the global beverage market and in improving consumer/online sales of other products. As we explore, enter and grow in new markets,” he said, “CirTran is continuing operations in our previous core businesses of direct domestic manufacturing and assembly of electronics products.

“While the worldwide global energy drink market has grown seemingly overnight to become a multi-billion dollar industry,” he said, “it is still very young and dynamic, allowing exciting new products such as Playboy Energy Drink to make successful debuts.”

Playboy Energy Drink is produced in 8.4- and 16-ounce sizes and a new 2-ounce size in both regular and sugar-free, and is available at bars, restaurants and retail stores.

All trademarks are properties of their respective owners.

CirTran Finalizes New Forbearance Agreement and New Loan Repayment Schedule

Posted on January 28, 2011June 1, 2020 by admin

SALT LAKE CITY, Jan. 28 2011 -- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of consumer, consumer electronic, and IT products and energy beverages, announced today that it has entered into an amended Forbearance Agreement with YA Global Investments, L.P. of Jersey City, N.J., which includes a new loan repayment schedule. The amended agreement will be included as an exhibit to the company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

Iehab J. Hawatmeh, CirTran’s chairman and president, said his company “made significant progress in 2010 and early in 2011, primarily in continued increases in cash flow and worldwide sales of the Playboy-branded energy drinks manufactured and distributed by CirTran.

“This growth,” he said, “has enabled CirTran to be more pro-active in management of our debt. We have agreed to a debt payment schedule with Y.A. Global with which we are confident we can comply.” CirTran made the first scheduled payment of $225,000 to YA Global last week on the effective date of the new agreement, he said, noting that the repayment schedule includes monthly payment commitments by CirTran through December 31, 2011.

The amended Forbearance Agreement relates to three debentures issued by CirTran to YA Global, formerly Cornell Capital Partners, LP: on May 26, 2005 for $3,750,000; on December 30, 2005 for $1,500,000 and on August 23, 2006 for $1,500,000. A previous Forbearance Agreement involving the three debentures was announced in August 2009.

“CirTran is grateful for the continued support and confidence of Y.A. Global, as demonstrated by this agreement,” he said. “With more financial stability, the company is better positioned to move forward and continue to build our Playboy-branded beverage business and other operations worldwide.”

About CirTran Corporation

Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, Utah, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites; and CirTran Beverage, which has partnered with Play Beverages, LLC, to introduce and distribute the Playboy Energy Drink.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included on this website and in such reports regarding the prospects of our industry and our prospects, plans, financial position and business strategy, may constitute forward-looking statements. These statements are based on the beliefs and assumptions of our management and on the information currently available to our management at the time of such statements. Forward-looking statements generally can be identified by the words "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions that indicate future events and trends. Additionally, statements relating to reduction of debt, payments to be made pursuant to the Forbearance Agreement and future business development may include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the risks and uncertainties listed under "Forward-looking Information" in CirTran’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. CirTran disclaims any obligation or intention to update any forward-looking statement.

All trademarks are properties of their respective owners.