Cirtran Corp. Files Q3 2024 10-Q

TL;DR

Cirtran Corp. 10-Q filed. Q3 2024 financials out.

AI Summary

Cirtran Corp. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Vermillion Ventures Inc., is incorporated in Nevada and operates in the beverages sector, though its SIC code suggests manufacturing. The filing covers financial data for the nine months ended September 30, 2024, and compares it to the same period in 2023.

Why It Matters

This filing provides investors with the latest financial performance and position of Cirtran Corp., crucial for understanding its operational health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly filing with no immediate red flags or significant new disclosures that would indicate elevated risk.

Key Numbers

• 2024-09-30 — Reporting Period End (Latest quarterly financial data)
• 2023-09-30 — Prior Year Period End (Comparison for year-over-year performance)

Key Players & Entities

• CIRTRAN CORP (company) — Filer
• VERMILLION VENTURES INC (company) — Former company name
• 20240930 (date) — Reporting period end date
• 20241114 (date) — Filing date

FAQ

Filing Documents

• form10-q.htm (10-Q) — 582KB
• ex31-01.htm (EX-31.01) — 12KB
• ex31-02.htm (EX-32.01) — 8KB
• 0001493152-24-046003.txt ( ) — 3891KB
• cirx-20240930.xsd (EX-101.SCH) — 37KB
• cirx-20240930_cal.xml (EX-101.CAL) — 63KB
• cirx-20240930_def.xml (EX-101.DEF) — 126KB
• cirx-20240930_lab.xml (EX-101.LAB) — 288KB
• cirx-20240930_pre.xml (EX-101.PRE) — 224KB
• form10-q_htm.xml (XML) — 490KB

—Financial Information

Part I—Financial Information 1

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 (Audited) 3 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 18 4

Controls and Procedures

Controls and Procedures 19

—Other Information

Part II—Other Information 6 Exhibits 19

Signatures

Signatures 20 2 PART I—FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CIRTRAN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 (Unaudited) (Audited) ASSETS Current assets: Cash $ — $ — Inventory 691,923 815,612 Deposits on inventory 26,373 26,983 Deposits on inventory - related party 596,253 224,411 Deposits on inventory 596,253 224,411 Accounts receivable 135,095 21,536 Other current assets 449,063 441,095 Total current assets 1,898,707 1,529,637 Investment in securities at cost 300,000 300,000 Property and equipment, net of accumulated depreciation 15,248 18,925 Total assets $ 2,213,955 $ 1,848,562 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 661,641 $ 625,848 Liabilities for product returns and credits 59,521 8,701 Short-term advances payable 162,966 172,966 Short-term advances payable - related parties 31,952 21,882 Short-term advances payable 31,952 21,882 Accrued liabilities 3,139,734 2,889,389 Accrued payroll and compensation expense 5,283,765 5,067,213 Accrued interest, current portion 6,440,492 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 2,072,094 1,296,937 Liabilities from discontinued operations 4,626,279 4,511,075 Total current liabilities: 22,984,561 20,858,731 Deferred tax liability 27,443 55,946 Note payable, net of current portion 643,000 634,636 Convertible debenture, net of current portion, net of discount 2,151,786 2,077,934 Total liabilities 25,806,790 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

Financial Statements properly reflect the change

Financial Statements properly reflect the change. NOTE 3 — GOING CONCERN The accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which considers our continuation as a going concern. We had a working capital deficiency of $ 21,085,854 as of September 30, 2024, and a net loss from continuing operations of $ 1,698,946 for the nine months ended September 30, 2024. As of September 30, 2024, we had an accumulated deficit of $ 60,831,341 . 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. 10 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 mo

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