Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | CIRTRAN CORP | ||
Entity Central Index Key | 0000813716 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 4,499,918,984 | ||
Trading Symbol | CIRT | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash | $ 214 | $ 5,824 |
Other current assets | 347 | |
Assets from discontinued operations | 122 | 62 |
Total current assets | 336 | 6,233 |
Investment in securities at cost | 300,000 | 300,000 |
Property and equipment, net of accumulated depreciation | 12,065 | 14,357 |
Total assets | 312,401 | 320,590 |
Current liabilities | ||
Accounts payable | 2,115,177 | 2,217,329 |
Related party payable | 3,000 | 8,548 |
Short-term advances payable | 44,506 | 44,506 |
Short-term advances payable - related parties | 873,721 | 520,608 |
Accrued liabilities | 804,465 | 729,384 |
Accrued payroll and compensation expense | 4,189,919 | 4,153,237 |
Accrued interest, current portion | 2,024,728 | 1,644,719 |
Deferred revenue | 638 | |
Convertible debenture, current portion | 200,000 | 200,000 |
Note payable, current portion | 90,000 | 90,000 |
Note payable to stockholders and members | 151,833 | 151,833 |
Liabilities from discontinued operations | 26,156,359 | 25,996,119 |
Total current liabilities | 36,653,708 | 35,756,921 |
Accrued interest, net of current portion | 1,251,570 | 1,137,325 |
Note payable, net of current portion | 500,000 | 500,000 |
Convertible debenture, net of current portion | 2,390,528 | 2,390,528 |
Total liabilities | 40,795,806 | 39,784,774 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, par value $0.001; 4,500,000,000 shares authorized; 4,499,918,984 and 4,498,891,910 shares issued and outstanding at December 31, 2018 and 2017, respectively | 4,499,919 | 4,498,892 |
Additional paid in capital | 32,727,196 | 32,636,223 |
Accumulated deficit | (77,710,520) | (76,599,299) |
Total stockholders' deficit | (40,483,405) | (39,464,184) |
Total liabilities and stockholders' deficit | $ 312,401 | $ 320,590 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 4,500,000,000 | 4,500,000,000 |
Common stock, shares issued | 4,499,918,984 | 4,498,891,910 |
Common stock, shares outstanding | 4,499,918,984 | 4,498,891,910 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 12,500 | |
Cost of sales | ||
Gross profit | 12,500 | |
Operating expenses | ||
Selling, general and administrative expenses | 447,389 | 805,694 |
Total operating expenses | 447,389 | 805,694 |
Loss from operations | (447,389) | (793,194) |
Other income (expense) | ||
Interest expense | (498,777) | (489,058) |
Loss on derivative valuation | (8,456) | |
Loss on settlement of debt | (500,000) | |
Total other income (expense) | (498,777) | (997,514) |
Net loss from continuing operations | (946,166) | (1,790,708) |
Loss from discontinued operations | (165,055) | (259,154) |
Net loss | $ (1,111,221) | $ (2,049,862) |
Net loss from discontinued operations per common share, basic and diluted | $ 0 | $ 0 |
Loss per common share, basic and diluted | $ 0 | $ 0 |
Basic and diluted weighted average common shares outstanding | 4,499,918,984 | 4,489,891,910 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2016 | $ 4,498,892 | $ 29,229,170 | $ (74,549,437) | $ (40,821,375) |
Balance, shares at Dec. 31, 2016 | 4,498,891,910 | |||
Write off of derivative liability | 3,407,053 | 3,407,053 | ||
Forgiveness of related party payable | ||||
Net loss | (2,049,862) | (2,049,862) | ||
Balance at Dec. 31, 2017 | $ 4,498,892 | 32,636,223 | (76,599,299) | (39,464,184) |
Balance, shares at Dec. 31, 2017 | 4,498,891,910 | |||
Write off of derivative liability | ||||
Correction of common shares outstanding | $ 1,027 | (1,027) | ||
Correction of common shares outstanding, shares | 1,027,074 | 1,027,074 | ||
Forgiveness of related party payable | 92,000 | $ 92,000 | ||
Net loss | (1,111,221) | (1,111,221) | ||
Balance at Dec. 31, 2018 | $ 4,499,919 | $ 32,727,196 | $ (77,710,520) | $ (40,483,405) |
Balance, shares at Dec. 31, 2018 | 4,499,918,984 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net (loss) income from continuing operations | $ (946,166) | $ (1,790,708) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 2,292 | 1,719 |
Expenses paid on behalf of Company by a related party | 241,734 | 184,880 |
(Gain) loss on derivative fair value adjustment | 8,456 | |
Loss on settlement of debt | 500,000 | |
Changes in operating assets and liabilities: | ||
Other current assets | 347 | (347) |
Accounts payable | (102,153) | 361,042 |
Related party payable | (5,548) | 7,600 |
Accrued liabilities | 75,081 | 24,536 |
Accrued payroll and compensation | 36,682 | 39,937 |
Accrued interest | 494,254 | 489,057 |
Deferred revenue | (638) | |
Net cash used in continuing operating activities | (204,115) | (173,828) |
Net cash used in discontinued operations | (4,875) | (33,066) |
Net cash used in operating activities | (208,990) | (206,894) |
Cash flows from financing activities | ||
Bank overdraft | (2,620) | |
Proceeds from related party loans | 203,380 | 457,758 |
Repayments of related party loans | (442,693) | |
Proceeds from loans payable | 200,000 | |
Net cash provided by financing activities | 203,380 | 212,445 |
Net change in cash | (5,610) | 5,551 |
Cash, beginning of period | 5,824 | 273 |
Cash, end of period | 214 | 5,824 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing activities | ||
Forgiveness of related party loan | 92,000 | |
Correction of common shares outstanding | 1,027 | |
Write off of derivative liability to additional paid in capital | $ 3,407,053 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS CirTran Corporation (“Cirtran,” “the Company” or “we”) now without significant operations due to shortages of working capital, through our different subsidiaries, has provided a mix of high- and medium-volume turnkey manufacturing services and products using various high-tech applications for leading electronics original equipment manufacturers in the communications, networking, peripherals, gaming, law enforcement, consumer products, telecommunications, automotive, medical, semiconductor and beverage industries. Our service capabilities include pre-manufacturing, manufacturing, and post-manufacturing services. Our goal is to offer customers the significant competitive advantages that can be obtained from manufacture outsourcing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation We consolidate all of our majority-owned subsidiaries, companies over which we exercise control through majority voting rights, and companies in which we have a variable interest and we are the primary beneficiary. We account for our investments in common stock of other companies that we do not control, but over which we can exert significant influence using the cost method. The consolidated financial statements include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Beverage Corp., CirTran Products Corp., CirTran Online Corp., CirTran Media Corp., CirTran Corporation (Utah), CirTran - Asia, Inc., and Racore Network, Inc. All intercompany balances and transactions have been eliminated. Use of Estimates In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, 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. Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Cash and Cash Equivalents We consider all highly liquid, short-term investments with an original maturity of three months or less to be cash equivalents. We did not hold any cash equivalents as of December 31, 2018 or 2017. Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at December 31, 2018 and 2017. As 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. We evaluated the investment for impairment and determined there was none during the periods presented. 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. The capitalized cost, net of accumulated depreciation, associated with molds and dies included in property and equipment at December 31, 2018 and 2017, was$12,065 and $14,357, respectively. Depreciation expense is recognized in amounts equal to the cost of depreciable assets over estimated service lives. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. The straight-line method of depreciation and amortization is followed for financial reporting purposes. Maintenance, repairs, and renewals, which neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in operating results. Impairment of Long-Lived Assets We review our long-lived assets, including intangibles, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. At each balance sheet date, we evaluate whether events and circumstances have occurred that indicate possible impairment. We use an estimate of future undiscounted net cash flows from the related asset or group of assets over their remaining life in measuring whether the assets are recoverable. We did not record expenses for the impairment of long-lived assets during the year ended December 31, 2018 or 2017. Financial Instruments with Derivative Features We do not hold or issue derivative instruments for trading purposes. However, we have financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. 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 using a Multi-NomialLattis model. The fair values of the derivative instruments are measured each reporting period. During the year ended December 31, 2017, our common stock was suspended from trading. Because of this, the convertible note no longer met the criteria to bifurcate the instrument under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 815, Derivatives and Hedging Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 13 Stock Options and Warrants Stock-based employee compensation was $480 and $1,340 for the years ended December 31, 2018 and 2017, respectively. Income Taxes We use the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets, liabilities, the carry forward of operating losses and tax credits, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Research tax credits are recognized as used. Concentrations of Risk During the year ended December 31, 2017, we generated revenues totaling $12,500 which were from one customer. There were no revenues during the year ended December 31, 2018. Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for cash, notes payable, and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value. ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions 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. Loss Per Share Basic loss per share (EPS) is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted EPS 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. We did not have any potentially issuable common shares at December 31, 2018 and 2017. Short-term Advances We have short-term advances with various individuals. These advances are due upon demand, carry no interest, and are not collateralized. These advances are classified as short-term liabilities. Recently Issued Accounting Pronouncements Recently issued accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that require adoption and that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Going Concern and Realization o
Going Concern and Realization of Assets | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern and Realization of Assets | NOTE 3—GOING CONCERN AND REALIZATION OF ASSETS In October 2016, we lost our ability to continue energy drink distribution, our principal source of revenue, after receiving an unfavorable ruling in our suit against Playboy Enterprises, Inc. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate our continuation as a going concern. We had a working capital deficiency of $36,653,372 and $35,750,688 as of December 31, 2018 and 2017, respectively, and a net loss of $1,111,221 and $2,049,862 during the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, we had an accumulated deficit of $77,710,520 and $76,599,299, respectively. 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 described in the following paragraphs and eventually attain profitable operations. The accompanying 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 mostly 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 us and our shareholders. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment and estimated service lives consist of the following: December 31, Useful Life 2018 2017 (years) Furniture and office equipment $ 177,900 $ 177,900 5 - 10 Leasehold improvements 997,714 997,714 7 - 10 Production equipment 2,886,267 2,886,267 5 - 10 Vehicles 53,209 53,209 3 - 7 Total 4,115,090 4,115,090 Less: accumulated depreciation (4,103,025 ) (4,100,733 ) Property and equipment, net $ 12,065 $ 14,357 There was $2,292 and $1,719 of depreciation expense recorded during the years ended December 31, 2018 and 2017. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 5 – RELATED-PARTY TRANSACTIONS Transactions involving Officers, Directors, and Stockholders 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 December 31, 2018 and 2017, the principal amount owing on the note was $151,833 and $151,833, respectively. 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 December 31, 2018 and 2017, totaled $72,466 and $72,466, respectively, and are presented in liabilities from discontinued operations. During the year ended December 31, 2018, we received cash advances from related parties of $203,380. Additionally, a related party forgave outstanding payables of $92,000 and related parties paid expenses totaling $241,734 directly to vendors on our behalf. There was $873,721 and $520,608 of short-term advances due to related parties as of December 31, 2018 and 2017, respectively. The advances are due on demand and as such included in current liabilities. We have agreed to issue options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of this employment agreement require us to grant options to purchase 6,000,000 shares of our stock each year, with an exercise price equal to the fair market price of our common stock as of the grant date. During the year ended December 31, 2018, we accrued for 6,000,000 stock options relating to this employee agreement, resulting in 66.0 million and 60.0 million accrued stock options as of December 31, 2018 and 2017, respectively. See Note 6 – Other Accrued Liabilities Note 13 – Stock Options and Warrants As of December 31, 2018 and 2017, we owe our president a total of $893,000 and $898,215 in unsecured advances, of which $890,000 and $890,000 were included in liabilities from discontinued operations. Additionally, 66.0 million and 60.0 million accrued stock options, with an aggregate value at time of grant of $169,496 and $168,896, respectively, were owed as of December 31, 2018 and 2017. 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. Additionally, we owed $0 and $333 as of December 31, 2018 and 2017, to our Controller for services rendered. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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 as of December 31, 2018 and 2017: December 31, 2018 2017 Tax liabilities 758,827 685,004 Other 45,638 44,380 Total $ 804,465 $ 729,384 Other accrued liabilities as of December 31, 2018 and 2017, include a non-interest bearing payable totaling $45,000 and $44,380 that is due on demand. Accrued payroll and compensation liabilities consist of the following: December 31, 2018 December 31, 2017 Stock option expenses $ 480,253 $ 479,973 Director fees 135,000 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Administrative payroll 3,450,660 3,414,258 Total $ 4,189,919 $ 4,153,237 Stock option expenses consist of accrued employee stock option expenses. These stock options have been granted but were not issued due to the limited number of authorized and available shares (see Note 13 – Stock Options and Warrants The fair market value of the options issued during the year ended December 31, 2018 was $480, using the following assumptions: estimated seven-year term, estimated volatility of 567%, and a risk-free rate between 2.38%. During the year ended December 31, 2018, we accrued for 6,000,000 stock options relating to the employee agreement with Mr. Hawatmeh. The fair market value of the options was $600, using the following assumptions: estimated seven-year term, estimated volatility of 567%, and a risk-free rate of 2.38%. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 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. 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. Noble Gate In September 2015, we obtained a judgment in the amount of $287,000 against Noble Gate Industrial, a former authorized distributor of the Playboy-branded energy drink. We believe the judgment is uncollectible and have not undertaken collection efforts in view of our analysis of the costs of collection as compared to any likely recovery. No gain has been recorded for the periods presented. 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 to Playboy of $6.6 million against Play Beverages and us. 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. We have accrued $17,205,599 as of December 31, 2018 and 2017, related to this judgment, which is included in liabilities from discontinued operations (see Note 14 – Discontinued Operations Redi FZE During the year ended December 31, 2011, Redi FZE sued us claiming alleged breach of contract, and we counterclaimed against it. On November 2, 2011, the court issued an injunction against Redi FZE prohibiting it from selling and distributing Playboy-branded products in conjunction with its distribution agreement with us. On August 16, 2012, Redi FZE withdrew the suit, and on October 30, 2012, we were awarded a default judgment against Redi in the amount of $1,225,155. We have not collected on this judgment and are weighing the cost of collection against the likelihood of success. No gain or receivable has been recorded in the financial statements for the periods presented in connection with this case. Old Dominion Freight Line In December 2009, Old Dominion Freight Line filed suit against us for unpaid freight services in the amount of $30,464 and was awarded a default judgment of $33,187 in March 2010. The amount due is included in accounts payable as of December 31, 2018 and 2017, respectively. RDS Touring In September 2011, RDS Touring and Promotions, Inc. was awarded a default judgment of $118,426 against us. In September 2012, RDS domesticated the default judgment in the state of Utah and sought to enforce the judgment against us. We have and will continue to resist the collection efforts by RDS. We had recorded a loss equal to the judgment of $118,426, of which $18,491 was previously paid leaving $99,935 included in liabilities from discontinued operations as of December 31, 2018 and 2017. Esebag In July 2010, Jimmy Esebag was awarded a judgment against us for breach of contract. A judgment debtor examination of an affiliate took place in October 2013, and there have been no further recovery efforts to date. We will continue to resist the collection efforts from this judgment. We had recorded a loss equal to the judgment of $100,000, of which $40,881 was previously paid leaving $59,119 included in liabilities from discontinued operations as of December 31, 2018 and 2017, respectively. General Distributors, Inc. In February 2012, General Distributors, Inc. (“General”) and was awarded a default judgment of $93,856 against us. In January 2013, General domesticated the default judgment in the state of Utah and sought to enforce the judgment against us. We have and will continue to resist the collection efforts by General. We had recorded a loss equal to the judgment of $93,856, which is included in liabilities from discontinued operations as of December 31, 2018 and 2017. Advanced Beauty Solutions In connection with prior litigation with Advanced Beauty Solutions (“ABS”), it claimed nonperformance by us and filed an adversary proceeding in its bankruptcy case in the United States Bankruptcy Court. On March 17, 2009, the bankruptcy court entered judgment in favor of ABS and against us in the amount of $1,811,667, plus interest. On September 11, 2009, the bankruptcy court denied our motion to set aside the judgment. On September 8, 2010, we executed an Assignment of Copyrights, thereby assigning our Copyright Registration No. TX-6-064-955, Copyright Registration No. TX-6-064-956, and Copyright to the True Ceramic Pro-Live Ops (TCPS) infomercial and related master tapes (collectively the “Copyrights”) to ABS, without reservation or exclusion, making ABS the owner of the Copyrights. Despite motions, hearings, appeals, and mediation in 2011, both parties were unable to resolve their outstanding issues. On March 22, 2012, we entered into a formal forbearance agreement with ABS, dated as of March 1, 2012 (the “ABS Forbearance Agreement”), whereby ABS agreed to take no further judgment enforcement actions in consideration of our payment of $25,000 upon execution, satisfaction of applicable conditions precedent, return of the trademarks and intellectual property previously conveyed by ABS to us, and our obligation to pay $1,835,000 secured by an encumbrance on all of our assets, subject and subordinate to the prior lien and encumbrance in favor of YA Global. In addition, we stipulated to an additional judgment for attorney’s fees incurred in negotiating the ABS Forbearance Agreement and related post-judgment collection efforts. The ABS Forbearance Agreement also provided that our obligation would be reduced by the greater of the amount of credit granted in the bankruptcy proceedings for the value of the intellectual property we previously conveyed to ABS and the amount received by ABS from the sale of such intellectual property to a third party during the term of the ABS Forbearance Agreement, plus the amount of any distribution to which we are entitled as a creditor of ABS, subject to other limitations. In May 2013, ABS sent us a notice of default under the ABS Forbearance Agreement. Although there were some negotiations between us and ABS following the notice of default, this matter has not been resolved. Our appeal of the approximately $1.8 million judgment that had been remanded in the ABS bankruptcy proceedings to conclusively determine the amount of credit due us for the conveyance of the intellectual property has been dismissed. All litigation and disputes between ABS and its affiliates, on the one hand, and us and our affiliates, on the other hand, have been dismissed. We have assigned to ABS our creditor claim against the estate of ABS, to the extent of the balance due under the ABS Forbearance Agreement. Any distribution from the ABS estate in excess of the adjusted amounts due under the ABS Forbearance Agreement will be paid to us. Because ABS’s lien is subordinate to liens on all of our assets in favor of Y.A. Global and/or Tekfine, LLC, ABS is unable to presently take any steps to enforce its judgment. If that changes, we would potentially face collection actions on the judgment, subject to our offset claims for the intellectual property and creditor claim. We had accrued the minimum liability of $90,000, of which $45,000 has been paid leaving $45,000 due, which is included in accrued liabilities as of December 31, 2018 and 2017. Because the remaining liability is unknown and cannot be reasonably estimated, no additional amounts have been accrued. 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 requires 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 pay 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 requires us to pay the IRS 5% of cash deposits. The monthly payments are to continue until the account balances are paid in full or until the collection statute of limitation expires on October 6, 2020. There was $424,158 and $367,617 due as of December 31, 2018 and 2017, of which $122,222 and $108,754 is included in liabilities from discontinued operations. 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, with a salary in an amount and commencement date to be determined. In July 2017, Mr. Hawatmeh resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, in September 2017, we reinstated Mr. Hawatmeh to his previous positions and reinstated his employment agreement. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000,000 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. In addition to the employment agreement above, we have verbal contracts with our employees that require payment of noncash compensation in a fixed number of shares. During the years ended December 31, 2018 and 2017, we did not grant options to purchase shares of common stock to employees due to the insufficient common shares available. We recorded expenses totaling $480 and $1,340 during the years ended December 31, 2018 and 2017, respectively, for employee options relating to the employment contracts of these employees. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 8 - NOTES PAYABLE Notes payable consisted of the following at December 31, 2018 and 2017: December 31, 2018 2017 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 Total $ 590,000 $ 590,000 There was $110,035 and $62,534 of accrued interest due on these note as of December 31, 2018 and 2017. |
Convertible Debentures
Convertible Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Debentures | NOTE 9 - CONVERTIBLE DEBENTURES Convertible Debentures consisted of the following as of December 31, 2018 and 2017: December 31, 2018 2017 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on October 20, 2018 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Total $ 2,590,528 $ 2,590,528 The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $0.10 or the lowest bid price for the 20 trading days prior to conversion $nil as of December 31, 2018 and 2017. As of December 31, 2018 and 2017, we had accrued interest on the convertible debentures totaling $1,268,557 and $1,144,311, of which $16,987 and $6,986 was current and $1,251,570 and $1,137,325 was long term, respectively. As of December 31, 2018 and 2017, the debentures were convertible into nil shares of our common stock. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | NOTE 10 – LEASES In an effort to operate more efficiently and focus resources on higher margin areas of our business, on March 5, 2010, we entered into certain agreements (collectively, the “Agreements”) to reduce our costs with Katana Electronics, LLC, a Utah limited liability company (“Katana”). The Agreements include an Assignment and Assumption Agreement, an Equipment Lease, and a Sublease Agreement relating to our property. Pursuant to the terms of the Sublease, we agreed to sublease a certain portion of our premises to Katana, consisting of the warehouse and office space used as of the close of business on March 4, 2010. The term of the Sublease was for two months with automatic renewal periods of one month each. The base rent under the Sublease is $8,500 per month. The Sublease contains normal and customary use restrictions, indemnification rights and obligations, default provisions, and termination rights. Under the Agreements signed, we continue to have rights to operate as a contract manufacturer in the future in the U.S. and offshore. On July 1, 2011, Katana had assumed the full lease payment, and we agreed to pay Katana $5,000 per month on a month to month basis for the use of office space and utilities. We had no sublease income for the years ended December 31, 2018 or 2017. We recorded rent expense of $42,000 and $57,000 for the years ended December 31, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11- INCOME TAXES We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income the company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward period. We have not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended December 31, 2018 and 2017 applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet. All of our tax returns remain open. As of December 31, 2018 and 2017, we had net operating loss carryforwards for tax reporting purposes of approximately $41.5 and $41.2 million. These net operating loss carryforwards, if unused, begin to expire in 2020. Utilization of approximately $1.2 million of the total net operating loss is dependent on the future profitable operation of Racore Network, Inc., a wholly owned subsidiary, under the separate return limitation rules and restrictions on utilizing net operating loss carryforwards after a change in ownership. In addition, the realization of tax benefits relating to net operating loss carryforwards is limited due to the settlement related to amounts previously due to the IRS, as discussed in Note 6 – Other Accrued Liabilities The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows: Income tax provision at the federal statutory rate 20 % Effect on operating losses (20 )% - Net deferred tax assets consisted of the following: December 31, 2018 December 31, 2017 Net operating loss carry forward $ 24,810,657 $ 24,596,263 Valuation allowance (24,810,657 ) (24,596,263 ) Net deferred tax asset $ — $ — A reconciliation of income taxes computed at the statutory rate is as follows: December 31, 2018 December 31, 2017 Computed federal income tax benefit (expense) at statutory rate of 20% and 35% $ (222,244 ) $ (717,452 ) Depreciation and amortization 458 602 Change in payroll accruals 7,336 13,978 Stock option expense 56 469 Change in derivative liability - 2,960 Change in valuation allowance 214,394 699,443 Income tax expense $ - $ - |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 12 - STOCKHOLDERS’ DEFICIT We are authorized to issue up to 4,500,000,000 shares of $0.001 par value common stock. During the year ended December 31, 2018, we found 1,027,074 shares of common stock previously marked for cancellation had not been returned to the transfer agent for processing. As a result, these common shares were recorded at par value against additional paid in capital during the year ended December 31, 2018. There can be no assurance these shares will be returned by the holder for cancellation. There were no shares issued during the years ended December 31, 2017. There were 4,499,918,984 and 4,498,891,910 common shares issued and outstanding at December 31, 2018 and 2017, respectively. |
Stock Options and Warrants
Stock Options and Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stock Options and Warrants | NOTE 13 - STOCK OPTIONS AND WARRANTS Stock Incentive Plans During the years ended December 31, 2018 and 2017, we did not grant options to purchase shares of common stock to employees or consultants. However, we have committed to issue stock options and have recorded a corresponding liability (as described in Note 6 – Other Accrued Liabilities During the year ended December 31, 2018, we accrued for a net of 6,800,000 stock options (13,400,000 new grants, less rescission of 6,600,000) relating to the employment of our president and consultants. The fair market value of the accrued stock options aggregated $480, using the following assumptions: seven-year term, volatility of 567%, a risk free rate of 2.38%, and exercise price of $0.0001. During the year ended December 31, 2017, we accrued for 13,400,000 stock options relating to the employment of our president and consultants. The fair market value of the accrued stock options aggregated $1,375, using the following assumptions: seven-year term, volatility of 567%, a risk free rate of 2.26% and exercise price of $0.0001. As of December 31, 2018, we had no unrecognized compensation costs related to outstanding options that have not yet vested at year-end that would be recognized in subsequent periods. See Note 6 – Other Accrued Liabilities |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 14 – 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 December 31, 2018 and 2017 as a result. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations for the years ended December 31, 2018 and 2017. Total assets and liabilities included in discontinued operations were as follows: December 31, 2018 2017 Assets From Discontinued Operations: Cash $ 122 62 Total assets from discontinued operations $ 122 $ 62 Liabilities From Discontinued Operations: Checks written in excess of bank balance $ - $ - Accounts payable 19,869,559 19,641,248 Accrued liabilities 704,917 732,548 Accrued interest 868,874 715,409 Accrued payroll and compensation expense 117,901 311,806 Current maturities of long-term debt 239,085 239,085 Related party payable 1,776,250 1,776,250 Short-term advances payable 2,579,773 2,579,773 Total liabilities from discontinued operations $ 26,156,359 $ 25,996,119 Net losses from discontinued operations for the years ended December 31, 2018 and 2017 were comprised of the following components: Year Ended December 31, 2018 2017 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses 11,590 164,335 Total operating expenses 11,590 164,335 Other income (expense) Interest expense 153,465 162,464 Settlements - (67,645 ) Total other income (expense) 153,465 94,819 Net loss from discontinued operations $ (165,055 ) $ (259,154 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 - SUBSEQUENT EVENTS During the first calendar quarter of 2019, we dissolved four of our subsidiaries: CirTran Beverage Corp, Racore Network, CirTran Media Corp and CirTran Online Corp. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We consolidate all of our majority-owned subsidiaries, companies over which we exercise control through majority voting rights, and companies in which we have a variable interest and we are the primary beneficiary. We account for our investments in common stock of other companies that we do not control, but over which we can exert significant influence using the cost method. The consolidated financial statements include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Beverage Corp., CirTran Products Corp., CirTran Online Corp., CirTran Media Corp., CirTran Corporation (Utah), CirTran - Asia, Inc., and Racore Network, Inc. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, 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. |
Revenue Recognition | Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid, short-term investments with an original maturity of three months or less to be cash equivalents. We did not hold any cash equivalents as of December 31, 2018 or 2017. |
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 December 31, 2018 and 2017. As 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. We evaluated the investment for impairment and determined there was none during the periods presented. |
Property and Equipment | 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. The capitalized cost, net of accumulated depreciation, associated with molds and dies included in property and equipment at December 31, 2018 and 2017, was$12,065 and $14,357, respectively. Depreciation expense is recognized in amounts equal to the cost of depreciable assets over estimated service lives. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. The straight-line method of depreciation and amortization is followed for financial reporting purposes. Maintenance, repairs, and renewals, which neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in operating results. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets, including intangibles, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. At each balance sheet date, we evaluate whether events and circumstances have occurred that indicate possible impairment. We use an estimate of future undiscounted net cash flows from the related asset or group of assets over their remaining life in measuring whether the assets are recoverable. We did not record expenses for the impairment of long-lived assets during the year ended December 31, 2018 or 2017. |
Financial Instruments with Derivative Features | Financial Instruments with Derivative Features We do not hold or issue derivative instruments for trading purposes. However, we have financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. 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 using a Multi-NomialLattis model. The fair values of the derivative instruments are measured each reporting period. During the year ended December 31, 2017, our common stock was suspended from trading. Because of this, the convertible note no longer met the criteria to bifurcate the instrument under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 815, Derivatives and Hedging |
Stock-Based Compensation | Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 13 Stock Options and Warrants Stock-based employee compensation was $480 and $1,340 for the years ended December 31, 2018 and 2017, respectively. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets, liabilities, the carry forward of operating losses and tax credits, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Research tax credits are recognized as used. |
Concentrations of Risk | Concentrations of Risk During the year ended December 31, 2017, we generated revenues totaling $12,500 which were from one customer. There were no revenues during the year ended December 31, 2018. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for cash, notes payable, and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value. ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions 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. |
Loss Per Share | Loss Per Share Basic loss per share (EPS) is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted EPS 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. We did not have any potentially issuable common shares at December 31, 2018 and 2017. |
Short-term Advances | Short-term Advances We have short-term advances with various individuals. These advances are due upon demand, carry no interest, and are not collateralized. These advances are classified as short-term liabilities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently issued accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that require adoption and that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, Useful Life 2018 2017 (years) Furniture and office equipment $ 177,900 $ 177,900 5 - 10 Leasehold improvements 997,714 997,714 7 - 10 Production equipment 2,886,267 2,886,267 5 - 10 Vehicles 53,209 53,209 3 - 7 Total 4,115,090 4,115,090 Less: accumulated depreciation (4,103,025 ) (4,100,733 ) Property and equipment, net $ 12,065 $ 14,357 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following as of December 31, 2018 and 2017: December 31, 2018 2017 Tax liabilities 758,827 685,004 Other 45,638 44,380 Total $ 804,465 $ 729,384 |
Schedule of Accrued Payroll and Compensation Liabilities | Accrued payroll and compensation liabilities consist of the following: December 31, 2018 December 31, 2017 Stock option expenses $ 480,253 $ 479,973 Director fees 135,000 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Administrative payroll 3,450,660 3,414,258 Total $ 4,189,919 $ 4,153,237 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consisted of the following at December 31, 2018 and 2017: December 31, 2018 2017 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 Total $ 590,000 $ 590,000 |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debentures | Convertible Debentures consisted of the following as of December 31, 2018 and 2017: December 31, 2018 2017 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on October 20, 2018 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Total $ 2,590,528 $ 2,590,528 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Statutory Federal Income Tax Rate to Income Before Provision for Income Taxes | The sources and tax effects of the differences for the periods presented are as follows: Income tax provision at the federal statutory rate 20 % Effect on operating losses (20 )% - |
Schedule of Net Deferred Tax Assets | Net deferred tax assets consisted of the following: December 31, 2018 December 31, 2017 Net operating loss carry forward $ 24,810,657 $ 24,596,263 Valuation allowance (24,810,657 ) (24,596,263 ) Net deferred tax asset $ — $ — |
Schedule of Reconciliation of Income Taxes Computed at Statutory Rate | A reconciliation of income taxes computed at the statutory rate is as follows: December 31, 2018 December 31, 2017 Computed federal income tax benefit (expense) at statutory rate of 20% and 35% $ (222,244 ) $ (717,452 ) Depreciation and amortization 458 602 Change in payroll accruals 7,336 13,978 Stock option expense 56 469 Change in derivative liability - 2,960 Change in valuation allowance 214,394 699,443 Income tax expense $ - $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Total assets and liabilities included in discontinued operations were as follows: December 31, 2018 2017 Assets From Discontinued Operations: Cash $ 122 62 Total assets from discontinued operations $ 122 $ 62 Liabilities From Discontinued Operations: Checks written in excess of bank balance $ - $ - Accounts payable 19,869,559 19,641,248 Accrued liabilities 704,917 732,548 Accrued interest 868,874 715,409 Accrued payroll and compensation expense 117,901 311,806 Current maturities of long-term debt 239,085 239,085 Related party payable 1,776,250 1,776,250 Short-term advances payable 2,579,773 2,579,773 Total liabilities from discontinued operations $ 26,156,359 $ 25,996,119 Net losses from discontinued operations for the years ended December 31, 2018 and 2017 were comprised of the following components: Year Ended December 31, 2018 2017 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses 11,590 164,335 Total operating expenses 11,590 164,335 Other income (expense) Interest expense 153,465 162,464 Settlements - (67,645 ) Total other income (expense) 153,465 94,819 Net loss from discontinued operations $ (165,055 ) $ (259,154 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash equivalents | ||
Investment in securities at cost | $ 300,000 | 300,000 |
Equity ownership percentage | Less than 20% | |
Property and equipment, net of accumulated depreciation | $ 12,065 | 14,357 |
Depreciation method | straight-line method | |
Impairment of long-lived assets | ||
Stock-based employee compensation | $ 480 | $ 1,340 |
Potentially issuable common shares | ||
One Customer [Member] | ||
Revenues | $ 12,500 |
Going Concern and Realization_2
Going Concern and Realization of Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Working capital deficiency | $ 36,653,372 | $ 35,750,688 |
Net loss | (1,111,221) | (2,049,862) |
Accumulated deficit | $ (77,710,520) | $ (76,599,299) |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,292 | $ 1,719 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Estimated Service Lives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,115,090 | $ 4,115,090 |
Less accumulated depreciation | (4,103,025) | (4,100,733) |
Property and equipment, net | 12,065 | 14,357 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 177,900 | 177,900 |
Furniture and Office Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P5Y | |
Furniture and Office Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P10Y | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 997,714 | 997,714 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P7Y | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P10Y | |
Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,886,267 | 2,886,267 |
Production Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P5Y | |
Production Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P10Y | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 53,209 | $ 53,209 |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P3Y | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives in years | P7Y |
Related-Party Transactions (Det
Related-Party Transactions (Details Narrative) - USD ($) | Mar. 31, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2007 |
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 590,000 | $ 590,000 | ||
Cash advance from related parties | 203,380 | 457,758 | ||
Forgiveness of related party loan | 92,000 | |||
Short-term advances payable - related parties | 873,721 | 520,608 | ||
Liabilities from discontinued operation | $ 26,156,359 | $ 25,996,119 | ||
Employee Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of stock options accrued | 6,000,000 | |||
Option agreed to be issued | 66,000,000 | 60,000,000 | ||
Shareholder One [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 105,000 | |||
Shareholder Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | 105,000 | |||
Shareholders Three [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 105,000 | |||
Iehab Hawatmeh [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of shares purchased to grant options | 6,000,000 | |||
Promissory Notes Payable [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory note percentage | 12.00% | |||
Debt instrument, face amount | $ 72,466 | $ 72,466 | ||
Promissory notes payable | $ 315,000 | |||
Proceeds from issuance of debt | $ 300,000 | |||
Borrowing fee, percentage | 5.00% | |||
Debt instrument, maturity date | Apr. 30, 2008 | |||
President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory note percentage | 10.00% | |||
Debt conversion of amount | $ 300,000 | |||
Debt instrument, due date description | The note was due on demand after May 2008 | |||
Debt instrument, face amount | $ 151,833 | $ 151,833 | ||
Option agreed to be issued | 66,000,000 | 60,000,000 | ||
Unsecured advances payable to related party | $ 893,000 | $ 898,215 | ||
Liabilities from discontinued operation | 890,000 | 890,000 | ||
Fair value of stock options granted | 169,496 | 168,896 | ||
Vendors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | $ 241,734 | |||
Board Of Directors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Borrowing fee, percentage | 5.00% | |||
Controller [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses | $ 0 | $ 333 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-interest bearing payable | $ 45,000 | $ 44,380 |
Fair value of stock options issued | $ 480 | |
Fair value assumptions of estimated terms | 7 years | |
Fair value assumptions of estimated volatility | 567.00% | |
Fair value assumptions of risk-free rate | 2.38% | |
Employee Agreement [Member] | ||
Fair value of stock options issued | $ 600 | |
Fair value assumptions of estimated terms | 7 years | |
Fair value assumptions of estimated volatility | 567.00% | |
Fair value assumptions of risk-free rate | 2.38% | |
Share based compensation accrued for stock options | 66,000,000 | 60,000,000 |
Mr. Hawatmeh [Member] | ||
Share based compensation accrued for stock options | 6,000,000 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Tax liabilities | $ 758,827 | $ 685,004 |
Other | 45,638 | 44,380 |
Totals | $ 804,465 | $ 729,384 |
Other Accrued Liabilities - S_2
Other Accrued Liabilities - Schedule of Accrued Payroll and Compensation Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Stock option expenses | $ 480,253 | $ 479,973 |
Director fees | 135,000 | 135,000 |
Bonus expenses | 121,858 | 121,858 |
Commissions | 2,148 | 2,148 |
Administrative payroll | 3,450,660 | 3,414,258 |
Total | $ 4,189,919 | $ 4,153,237 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Jun. 30, 2013 | Oct. 30, 2012 | Mar. 22, 2012 | Dec. 31, 2009 | Mar. 17, 2009 | Sep. 30, 2017 | Oct. 31, 2016 | Sep. 30, 2015 | May 31, 2013 | Feb. 29, 2012 | Sep. 30, 2011 | Jul. 31, 2010 | Mar. 31, 2010 | Nov. 30, 2004 | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies [Line Items] | ||||||||||||||||
Liabilities from discontinued operations | $ 26,156,359 | $ 25,996,119 | ||||||||||||||
Accrued expense | 804,465 | 729,384 | ||||||||||||||
President [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Accrued expense | 480 | 1,340 | ||||||||||||||
Litigation With Advanced Beauty Solutions Llc [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Payment for consideration | $ 25,000 | |||||||||||||||
Delinquent Payroll Taxes Interest and Penalties [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Payment for acceptance of delinquent payroll taxes, interest and penalties offer | $ 500,000 | |||||||||||||||
Period of required offer to remain current in payment of taxes | 5 years | |||||||||||||||
Amount of taxes waived | $ 1,455,767 | |||||||||||||||
Unpaid 2009 payroll taxes | $ 768,526 | |||||||||||||||
IRS of cash deposits | 5.00% | |||||||||||||||
Due to related party | 424,158 | 367,617 | ||||||||||||||
Liabilities from discontinued operations | 122,222 | 108,754 | ||||||||||||||
Previously Paid [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Accrued interest on notes payable | $ 90,000 | |||||||||||||||
Total litigation liability | $ 18,491 | $ 40,881 | ||||||||||||||
Playboy Enterprises, Inc. [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 6,600,000 | |||||||||||||||
Accrued interest on notes payable | 17,205,599 | 17,205,599 | ||||||||||||||
Redi FZE. [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 1,225,155 | |||||||||||||||
Old Dominion Freight Line [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 33,187 | |||||||||||||||
Unpaid freight services | $ 30,464 | |||||||||||||||
RDS Touring [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 118,426 | |||||||||||||||
Total litigation liability | 99,935 | 99,935 | ||||||||||||||
General Distributors, Inc. [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 93,856 | |||||||||||||||
Total litigation liability | 93,856 | 93,856 | ||||||||||||||
Advanced Beauty Solutions [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 1,800,000 | |||||||||||||||
Accrued interest on notes payable | 45,000 | 45,000 | ||||||||||||||
Litigation settlement interest | $ 1,811,667 | |||||||||||||||
Obligation to pay under the ABS forbearance agreement | $ 1,835,000 | |||||||||||||||
Noble Gate [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 287,000 | |||||||||||||||
Esebag [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Loss contingency, damages sought, value | $ 100,000 | |||||||||||||||
Total litigation liability | $ 59,119 | $ 59,119 | ||||||||||||||
President [Member] | Employment Agreement [Member] | ||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||
Minimum number of shares purchased for options granted | 6,000,000 | |||||||||||||||
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% |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Notes Payable [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on notes payable | $ 110,035 | $ 62,534 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
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 |
Total | $ 590,000 | $ 590,000 |
Convertible Debentures (Details
Convertible Debentures (Details Narrative) | 12 Months Ended | |
Dec. 31, 2018USD ($)Integer$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Short-term Debt [Line Items] | ||
Lowest bid price | $ / shares | $ 0.10 | |
Debt convertible, threshold trading days | Integer | 20 | |
Conversion price | $ / shares | ||
Accrued interest on the convertible debentures, current | $ 2,024,728 | $ 1,644,719 |
Debentures were convertible into common shares | shares | ||
Convertible Debentures [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on the convertible debentures | $ 1,268,557 | $ 1,144,311 |
Accrued interest on the convertible debentures, current | 16,987 | 6,986 |
Accrued interest on the convertible debentures, noncurrent | $ 1,251,570 | $ 1,137,325 |
Convertible Debentures - Schedu
Convertible Debentures - Schedule of Convertible Debentures (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Convertible Debt | $ 2,590,528 | $ 2,590,528 |
Convertible debenture, 5% stated interest rate, secured by all of our assets, due on October 20, 2018 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Debt | 200,000 | 200,000 |
Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Debt | $ 2,390,528 | $ 2,390,528 |
Convertible Debentures - Sche_2
Convertible Debentures - Schedule of Convertible Debentures (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Convertible Debentures One [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Oct. 20, 2018 | Oct. 20, 2018 |
Convertible Debentures Two [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Apr. 30, 2027 | Apr. 30, 2027 |
Leases (Details Narrative)
Leases (Details Narrative) - Agreements [Member] - Katana Electronics, LLC [Member] - USD ($) | Jul. 01, 2011 | Mar. 05, 2010 | Dec. 31, 2018 | Dec. 31, 2017 |
Term of sublease | The term of the Sublease was for two months with automatic renewal periods of one month each. | |||
Base rent per month under sublease | $ 8,500 | |||
Rent agreed to pay per month | $ 5,000 | |||
Sublease income | ||||
Rent expense | $ 42,000 | $ 57,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 41,500,000 | $ 41,200,000 |
Operating loss carryforwards, limitations on use | These net operating loss carryforwards, if unused, begin to expire in 2020. Utilization of approximately $1.2 million of the total net operating loss is dependent on the future profitable operation of Racore Network, Inc., a wholly owned subsidiary, under the separate return limitation rules and restrictions on utilizing net operating loss carryforwards after a change in ownership. | |
Racore Network, Inc. [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Utilization of operating loss carryforward dependent on future profitable operation of subsidiary | $ 1,200,000 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of Statutory Federal Income Tax Rate to Income Before Provision for Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at the federal statutory rate | 20.00% | 35.00% |
Effect on operating losses | (20.00%) |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 24,810,657 | $ 24,596,263 |
Valuation allowance | (24,810,657) | (24,596,263) |
Net deferred tax asset |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at Statutory Rate (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Computed federal income tax benefit (expense) at statutory rate of 20% and 35% | $ (222,244) | $ (717,452) |
Depreciation and amortization | 458 | 602 |
Change in payroll accruals | 7,336 | 13,978 |
Stock option expense | 56 | 469 |
Change in derivative liability | 2,960 | |
Change in valuation allowance | 214,394 | 699,443 |
Income tax expense |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at Statutory Rate (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax benefit (expense) at statutory rate | 20.00% | 35.00% |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, shares authorized | 4,500,000,000 | 4,500,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Correction of common shares against additional paid in capital | 1,027,074 | |
Common stock, shares issued | 4,499,918,984 | 4,498,891,910 |
Common stock, shares outstanding | 4,499,918,984 | 4,498,891,910 |
Common Stock [Member] | ||
Correction of common shares against additional paid in capital | 1,027,074 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term for options | 7 years | |
Estimated volatility | 567.00% | |
Risk free rate | 2.38% | |
Stock Incentive Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accrued employee stock option expenses | 170,600,000 | 165,800,000 |
Unrecognized compensation costs related to options outstanding | ||
Stock Incentive Plans [Member] | Employment Contract [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of accrued employee options | 6,800,000 | 13,400,000 |
Number of stock option new grants | 13,400,000 | |
Number of stock option rescission shares | 6,600,000 | |
Fair market value of accrued options | $ 480 | $ 1,375 |
Expected term for options | 7 years | 7 years |
Estimated volatility | 567.00% | 567.00% |
Risk free rate | 2.38% | 2.26% |
Exercise price | $ 0.0001 | $ 0.0001 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash | $ 122 | $ 62 |
Total assets from discontinued operations | 122 | 62 |
Checks written in excess of bank balance | ||
Accounts payable | 19,869,559 | 19,641,248 |
Accrued liabilities | 704,917 | 732,548 |
Accrued interest | 868,874 | 715,409 |
Accrued payroll and compensation expense | 117,901 | 311,806 |
Current maturities of long-term debt | 239,085 | 239,085 |
Related party payable | 1,776,250 | 1,776,250 |
Short-term advances payable | 2,579,773 | 2,579,773 |
Total liabilities from discontinued operations | 26,156,359 | 25,996,119 |
Net sales | ||
Cost of sales | ||
Gross profit | ||
Selling, general and administrative expenses | 11,590 | 164,335 |
Total operating expenses | 11,590 | 164,335 |
Interest expense | 153,465 | 162,464 |
Settlements | (67,645) | |
Total other income (expense) | 153,465 | 94,819 |
Net loss from discontinued operations | $ (165,055) | $ (259,154) |