CirTran (CIRX) 10-Q 23 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 20, 2020
Cover [Abstract]
Entity Registrant Name	CIRTRAN CORP
Entity Central Index Key	0000813716
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,500,417
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash	$ 9,354
Inventory	215,629	18,814
Deposits on inventory	44,559
Deposits on inventory - related party	318,624
Other current assets	56,254	1,210
Total current assets	644,420	20,024
Investment in securities at cost	300,000	300,000
Property and equipment, net of accumulated depreciation		9,772
Total assets	944,420	329,796
Current liabilities
Bank overdraft		1,611
Accounts payable	2,158,031	2,121,401
Related-party payable	13,740	13,740
Short-term advances payable	124,904	163,994
Short-term advances payable - related parties	484,235	738,655
Accrued liabilities	1,370,038	1,077,999
Accrued payroll and compensation expense	4,043,089	3,757,636
Accrued interest, current portion	2,695,365	2,405,946
Convertible debenture, current portion, net of discounts	264,284	248,874
Note payable, current portion	90,000	90,000
Note payable to stockholders and members	151,833	151,833
Derivative liability	1,218,396	894,079
Liabilities from discontinued operations	26,464,057	26,348,853
Total current liabilities	39,077,972	38,014,621
Accrued interest, net of current portion	1,460,824	1,371,098
Note payable, net of current portion	656,000	500,000
Convertible debenture, net of current portion, net of discount	1,760,359	1,678,768
Total liabilities	42,955,155	41,564,487
Commitments and contingencies
Stockholders' deficit
Common stock, par value $0.001; 100,000,000 shares authorized; 4,500,417 and 4,500,417 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	4,500	4,500
Additional paid-in capital	37,222,671	37,222,615
Accumulated deficit	(79,237,906)	(78,461,806)
Total stockholders' deficit	(42,010,735)	(41,234,691)
Total liabilities and stockholders' deficit	$ 944,420	$ 329,796

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	4,500,417	4,500,417
Common stock, shares outstanding	4,500,417	4,500,417

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 405,005		$ 935,319
Cost of sales	228,380		425,699
Gross profit	176,625		509,620
Operating expenses
Employee costs	126,559	36,222	169,169	121,926
Selling, general and administrative expenses	129,125	47,700	248,059	143,121
Total operating expenses	255,684	83,922	417,228	265,047
Income (loss) from operations	(79,059)	(83,922)	92,392	(265,047)
Other income (expense)
Interest expense	(154,318)	(187,546)	(466,953)	(437,909)
Loss on disposal of equipment			(9,771)
Loss on derivative valuation	39,700	(7,431)	(318,564)	(7,431)
Other income		204	42,000	934
Total other expense	(114,618)	(194,773)	(753,288)	(444,406)
Net loss from continuing operations	(193,677)	(278,695)	(660,896)	(709,453)
Loss from discontinued operations	(38,681)	(38,682)	(115,204)	(105,002)
Net loss	$ (232,358)	$ (317,377)	$ (776,100)	$ (814,455)
Net loss from continuing operations per common share, basic and diluted	$ (0.04)	$ (0.06)	$ (0.15)	$ (0.16)
Net loss from discontinued operations per common share, basic and diluted	(0.01)	(0.01)	(0.03)	(0.02)
Net loss per common share, basic and diluted	$ (0.05)	$ (0.07)	$ (0.18)	$ (0.18)
Basic and diluted weighted average common shares outstanding	4,500,417	4,500,417	4,500,417	4,500,417

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 4,500	$ 37,222,615	$ (77,234,267)	$ (40,007,152)
Balance, shares at Dec. 31, 2018	4,500,417
Net loss			(211,120)	(211,120)
Balance at Mar. 31, 2019	$ 4,500	37,222,615	(77,445,387)	(40,218,272)
Balance, shares at Mar. 31, 2019	4,500,417
Balance at Dec. 31, 2018	$ 4,500	37,222,615	(77,234,267)	(40,007,152)
Balance, shares at Dec. 31, 2018	4,500,417
Net loss				(814,455)
Balance at Sep. 30, 2019	$ 4,500	37,222,615	(78,048,722)	(40,821,607)
Balance, shares at Sep. 30, 2019	4,500,417
Balance at Mar. 31, 2019	$ 4,500	37,222,615	(77,445,387)	(40,218,272)
Balance, shares at Mar. 31, 2019	4,500,417
Net loss			(285,958)	(285,958)
Balance at Jun. 30, 2019	$ 4,500	37,222,615	(77,731,345)	(40,504,230)
Balance, shares at Jun. 30, 2019	4,500,417
Net loss			(317,377)	(317,377)
Balance at Sep. 30, 2019	$ 4,500	37,222,615	(78,048,722)	(40,821,607)
Balance, shares at Sep. 30, 2019	4,500,417
Balance at Dec. 31, 2019	$ 4,500	37,222,615	(78,461,806)	(41,234,691)
Balance, shares at Dec. 31, 2019	4,500,417
Stock option expense		56		56
Net loss			(315,372)	(315,372)
Balance at Mar. 31, 2020	$ 4,500	37,222,671	(78,777,178)	(41,550,007)
Balance, shares at Mar. 31, 2020	4,500,417
Balance at Dec. 31, 2019	$ 4,500	37,222,615	(78,461,806)	(41,234,691)
Balance, shares at Dec. 31, 2019	4,500,417
Net loss				(776,100)
Balance at Sep. 30, 2020	$ 4,500	37,222,671	(79,237,906)	(42,010,735)
Balance, shares at Sep. 30, 2020	4,500,417
Balance at Mar. 31, 2020	$ 4,500	37,222,671	(78,777,178)	(41,550,007)
Balance, shares at Mar. 31, 2020	4,500,417
Net loss			(228,370)	(228,370)
Balance at Jun. 30, 2020	$ 4,500	37,222,671	(79,005,548)	(41,778,377)
Balance, shares at Jun. 30, 2020	4,500,417
Net loss			(232,358)	(232,358)
Balance at Sep. 30, 2020	$ 4,500	$ 37,222,671	$ (79,237,906)	$ (42,010,735)
Balance, shares at Sep. 30, 2020	4,500,417

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss from continuing operations	$ (660,896)	$ (709,453)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		1,719
Loss on derivative valuation	318,564	7,431
Debt discount amortization	87,754	61,666
Loss on disposal of equipment	9,771
Stock option expense	56
Expenses paid on behalf of Company by a related party	1,940
Changes in operating assets and liabilities:
Inventory	(196,815)
Deposits on inventory	(44,559)
Deposits on inventory - related party	(318,624)
Other current assets	(55,044)	(1,210)
Accounts payable	36,631	9,914
Accrued liabilities	292,039	79,199
Accrued payroll and compensation	285,453	37,566
Accrued interest	379,145	374,820
Deferred revenue		27,500
Net cash provided by (used in) continuing operating activities	135,415	(110,848)
Net cash used in discontinued operations		(4,292)
Net cash provided by (used in) operating activities	135,415	(115,140)
Cash flows from financing activities
Proceeds from bank overdraft	(1,611)
Proceeds from convertible loans payable	15,000	50,000
Proceeds from related-party loans	10,700	74,477
Repayments of related-party loans	(270,150)	(18,270)
Proceeds from loans payable	156,000	15,400
Repayments of loans payable	(36,000)	(5,000)
Cash (used in) provided by financing activities	(126,061)	116,607
Cash (used in) provided by discontinued financing activities
Net cash (used in) provided by financing activities	(126,061)	116,607
Net change in cash	9,354	1,467
Cash, beginning of period		214
Cash, end of period	9,354	1,681
Supplemental disclosure of cash flow information
Cash paid for interest
Cash paid for income taxes
Supplemental disclosure of noncash investing activities
Initial measurement of derivative liability	$ 5,753	$ 811,020

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	NOTE 1—BASIS OF PRESENTATION The consolidated financial statements of CirTran Corporation for the three- and nine-month periods ended September 30, 2020 and 2019, are not audited. Our consolidated financial statements are prepared in accordance with the requirements for unaudited interim periods and, consequently, do not include all disclosures required to be made in conformity with accounting principles generally accepted in the United States of America. In the opinion of our management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of September 30, 2020, and December 31, 2019, and our results of operations and cash flows for the periods ended September 30, 2020 and 2019. The results of operations for the three and nine months ended September 30, 2020 and 2019, are not necessarily indicative of the results for a full-year period. These interim consolidated financial statements should be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2019.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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 as of and for the periods ended September 30, 2020, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. The consolidated financial statements as of and for the periods ended September 30, 2019, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., CirTran Corporation (Utah), CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., Racore Network, and CirTran - Asia, 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 During the three and nine months ended September 30, 2020, we recognized revenues of $15,000 and $515,000, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptances of work product related to those milestones, namely product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified and, as such, no asset has been recorded for customer acquisition costs. Additionally, we have not recognized impairment losses related to the receivables from these contracts during the three and nine months ended September 30, 2020. Additionally, we recognized revenues of $390,005 and $420,319 during the three and nine months ended September 30, 2020, respectively, related to the delivery of product to our customers. Each delivery is based on a unique customer purchase order which is considered to be a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique purchase order contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product. 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 September 30, 2020, or December 31, 2019. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Leases, Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at September 30, 2020, and December 31, 2019. 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 September 30, 2020, and December 31, 2019, was $0 and $9,772, respectively. All property and equipment that was in service during the year ended December 31, 2019, was disposed of during the current period. 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 that 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 periods ended September 30, 2020 or 2019. 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 Monte Carlo simulation. The fair values of the derivative instruments are measured each reporting period. Inventories Inventories are stated at the lower of average cost or net realizable value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process. Inventories consist of finished goods as we do not carry raw materials for manufacturing products. When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us. From time to time, we will place deposits on inventory to be delivered in the future. These deposits are carried as a separate balance sheet component and totaled $44,559 (non-related-party) and $318,624 (related-party) as of September 30, 2020. There were no deposits on inventory as of December 31, 2019. Inventory balances consisted of the following: September 30, 2020 December 31, 2019 Finished goods $ 123,661 18,814 Raw materials 91,968 - Total $ 215,629 $ 18,814 Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 12 Stock Options and Warrants Accounting for Stock Issued to Employees Improvements to Nonemployee Share-Based Payment Accounting Stock-based employee compensation was $56 and $600 for the nine months ended September 30, 2020 and 2019, respectively. Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for cash, notes payable, and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments. 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. Derivative liabilities are measured using level 3 inputs. Total Fair Value Quoted Significant Significant Derivative liabilities $ 1,218,396 $ - $ - $ 1,218,396 Total Fair Value at December 31, 2019 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivative liabilities $ 894,079 $ - $ - $ 894,079 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. There were 160,186,365 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the three and nine months ended September 30, 2020, due to the anti-dilutive effect these would have on net loss per share. There were 133,107,973 such shares issuable as of September 30, 2019. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future. 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 In August 2020, the FASB issued ASU 2020-06 “Debt with Conversion and Other Options,”

Going Concern and Realization o

Going Concern and Realization of Assets	9 Months Ended
	Sep. 30, 2020
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 unaudited 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 $38,433,552 and $37,994,597 as of September 30, 2020, and December 31, 2019, respectively, and a net loss from continuing operations of $660,896 and $709,453 during the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, and December 31, 2019, we had an accumulated deficit of $79,237,906 and $78,461,806, 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	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4—PROPERTY AND EQUIPMENT Property and equipment and estimated service lives consist of the following: September 30, 2020 December 31, 2019 Useful Life (years) Furniture and office equipment $ - $ 177,900 5-10 Leasehold improvements - 997,714 7-10 Production equipment - 2,886,267 5-10 Vehicles - 53,209 3-7 Total - 4,115,090 Less: accumulated depreciation - (4,105,318 ) Property and equipment, net $ - $ 9,772 During the nine months ended September 30, 2020, we disposed of all of our remaining assets as part of our adoption of our new agreement to develop and distribute certain products. There was no consideration received upon disposal resulting in a net loss equal to the net book value of $9,771 during the nine months ended September 30, 2020. We recorded $0 and $573 of depreciation expense during the three months ended September 30, 2020 and 2019, respectively. We recorded $0 and $1,719 of depreciation expense during the nine months ended September 30, 2020 and 2019, respectively.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2020
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 September 30, 2020, and December 31, 2019, 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 September 30, 2020, and December 31, 2019, totaled $72,466 and $72,466, respectively. During the nine months ended September 30, 2020, we made repayments to related parties of $270,150 and advances of $10,700 were received from related parties. Additionally, related parties paid expenses totaling $1,940 directly to vendors on our behalf. There were $484,235 and $738,655 of short-term advances due to related parties as of September 30, 2020, and December 31, 2019, respectively. The advances are due on demand and as such included in current liabilities. We have agreed to issue stock options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of this employment agreement require us to grant options to purchase 6,000 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 nine months ended September 30, 2020, we granted options to purchase 6,000 shares of common stock relating to this employee agreement. There were also options to purchase 6,000 shares of common stock that expired during the nine months ended September 30, 2020. There was 30,000 and 30,000 outstanding stock options held by Iehab Hawatmeh as of September 30, 2020, and December 31, 2019, respectively. See Note 6 – Other Accrued Liabilities Note 12 – Stock Options and Warrants As of September 30, 2020, and December 31, 2019, we owed our president a total of $900,339 and $903,740 in unsecured advances. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans. These amounts are included in our liabilities from discontinued operations. As of September 30, 2020 and December 31, 2019, we owed a total of $13,740 to a related party through trade payables incurred in the normal course of business. These amounts are shown as a separate related-party payable on the balance sheet as of each reporting date. During the nine months ended September 30, 2020, we made deposits with a related-party inventory supplier totaling $318,624. The related party is an entity controlled by our CEO. All transactions were at a 2% markup over the related-party’s cost paid for inventory in arm’s-length transactions. Total inventory purchases from the related party were $240,803 during the nine months ended September 30, 2020.

Other Accrued Liabilities

Other Accrued Liabilities	9 Months Ended
	Sep. 30, 2020
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: September 30, 2020 December 31, 2019 Tax liabilities $ 800,970 $ 806,331 Other 569,068 271,668 Total $ 1,370,038 $ 1,077,999 Other accrued liabilities as of September 30, 2020, and December 31, 2019, include a non-interest-bearing payable totaling $45,000 that is due on demand. Accrued payroll and compensation liabilities consist of the following: September 30, 2020 December 31, 2019 Stock option expenses $ - $ 4,000 Director fees 140,000 135,000 Bonus expenses 129,358 121,858 Commissions 2,148 2,148 Administrative payroll 3,771,583 3,494,630 Total $ 4,043,089 $ 3,757,636 Stock option expenses consist of employee stock option expenses. During the nine months ended September 30, 2020, we resumed accruing wages for our CEO, which are included in administrative payroll. A total of $258,750 was accrued during the nine months ended September 30, 2020 of which $172,500 are included in cost of sales as a direct labor cost of fulfilling performance obligations related to our revenue recognized and $86,250 are included in operating expenses. The allocation of wages to cost of sales and operating expenses is based on the percentage of time spent by our CEO to directly deliver on certain performance obligations under our contracts with our customers. Our CEP spent 100% of his time as such during the six months ended June 30, 2020 with 0% of his time spent as such during the three months ended September 30, 2020.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
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. 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 CirTran Beverage Corp., our subsidiary. The court denied our motion for a new trial and awarded Playboy treble patent infringement damages and attorney’s fees. We filed a notice of appeal in July 2017 and again in March 2018. Playboy has initiated collection efforts but has recovered no funds. In September 2018, the appellate court affirmed the judgment of the circuit court. We have accrued $17,205,599 as of September 30, 2020, and December 31, 2019, related to this judgment, which is included in liabilities in discontinued operations. Delinquent Payroll Taxes, Interest, and Penalties In November 2004, the IRS accepted our amended offer in compromise (the “Offer”) to settle delinquent payroll taxes, interest, and penalties, which 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 $1,048,756 and $1,048,756 due as of September 30, 2020, and December 31, 2019, respectively. Employment Agreements We engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended in September 2017. In July 2017, Mr. Hawatmeh had resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, the amendment to his employment agreement in September 2017 reinstated Mr. Hawatmeh to his previous positions, with a salary in an amount to be determined. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000 shares of our stock each year, with an exercise price equal to the market price of our common stock as of the grant date, for the maximum term allowed under our stock option plan; (b) provides for health insurance coverage, cell phone, car allowance, life insurance, and director and officer liability insurance, as well as any other bonus approved by our board; and (c) includes additional incentive compensation as follows: (i) a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation and amortization for the applicable quarter; (ii) bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and (iii) an annual bonus (payable quarterly) equal to 1% of our gross sales of all products, net of returns and allowances. On January 1, 2020, we resumed accruing wages for our CEO. A total of $258,750 was accrued during the nine months ended September 30, 2020. We also have an oral agreement with our other director that requires us to issue options to purchase 2,000 shares of our common stock each year. During the nine months ended September 30, 2020 and 2019, we granted options to purchase 8,000 and 6,000 shares of common stock to Mr. Hawatmeh and Ms. Hollinger, respectively. We recorded expenses totaling $56 and $600 during the nine months ended September 30, 2020 and 2019, respectively, for these options. We have no other agreements requiring the grant of options.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2020
Notes Payable [Abstract]
Notes Payable	NOTE 8—NOTES PAYABLE Notes payable consisted of the following: September 30, 2020 December 31, 2019 Note payable to former service provider for past due account payable (current) $ 90,000 $ 90,000 Note payable for settlement of debt (long term) 500,000 500,000 Small Business Administration loan 156,000 - Total $ 746,000 $ 590,000 There was $193,192 and $157,535 of accrued interest due on these note as of September 30, 2020, and December 31, 2019, respectively.

Convertible Debentures

Convertible Debentures	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Convertible Debentures	NOTE 9—CONVERTIBLE DEBENTURES Convertible debentures consisted of the following: September 30, 2020 December 31, 2019 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on May 30, 2021 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on November 30, 2020 25,000 25,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on February 8, 2021 25,000 25,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on December 23, 2020 25,000 10,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,665,528 $ 2,650,528 Less: discounts (640,885 ) (722,886 ) Total $ 2,024,643 $ 1,927,642 Less: current portion (264,284 ) (248,874 ) Long term portion $ 1,760,359 $ 1,678,768 The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or the lowest bid price for the 20 trading days prior to conversion. As of September 30, 2020, and December 31, 2019, we had accrued interest on the convertible debentures totaling $1,499,317 and $1,399,295, respectively, of which $38,494 and $28,199 was current and $1,460,824 and $1,371,098 was long term, respectively. As of September 30, 2020, and December 31, 2019, the debentures, including accrued but unpaid interest, were convertible into 160,186,365 and 568,989,796 shares of our common stock.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	NOTE 10—DERIVATIVE LIABILITIES As discussed in Note 9 - Convertible Debentures Volatility 95.2% - 135.2 % Risk-free rates 0.06% - 0.44 % Stock price $ 0.0345 Remaining life 0.25- 6.58 years The fair values of the derivative instruments are measured each quarter, which resulted in a gain of $39,700 and loss of $318,564 during the three and nine months ended September 30, 2020. As of September 30, 2020, and December 31, 2019, the fair market value of the derivatives aggregated $1,218,396 and $894,079, respectively.

Stockholders' Deficit

Stockholders' Deficit	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders' Deficit	NOTE 11—STOCKHOLDERS’ DEFICIT We are authorized to issue up to 100,000,000 shares of $0.001 par value common stock. No shares were issued during the periods presented. We had a total of 4,500,417 common shares issued and outstanding as of September 30, 2020, and December 31, 2019. During the year ended December 31, 2019, we effected a 1:1000 reverse stock split of our outstanding stock. The impacts of the reverse stock split have been retroactively stated which resulted in a reclassification between common stock and additional paid in capital of $4,494,392 at September 30, 2019.

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stock Options and Warrants	NOTE 12—STOCK OPTIONS AND WARRANTS Stock Incentive Plans During the nine months ended September 30, 2020 and 2019, we granted to employees 8,000 and 6,000 options, respectively, to purchase shares of common stock. The 8,000 options granted during the nine months ended September 30, 2020, were valued using the following assumptions: estimated five-year term, estimated volatility of 91%, and a risk-free rate of 1.61%. During the nine months ended September 30, 2019, we granted 6,000 stock options relating to the employment 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%. As of September 30, 2020, and December 31, 2019, we had no unrecognized compensation 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 During the nine months ended September 30, 2020, we issued a total of 8,000 options to purchase common stock, and a total of 8,000 options expired unexercised. As of September 30, 2020, there were 40,000 options issued and vested with a weighted average exercise price of $0.01 and a weighted average remaining life of 2.66 years.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	NOTE 13—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 September 30, 2020, and December 31, 2019, as a result. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations for the nine months ended September 30, 2020 and 2019. Total assets and liabilities included in discontinued operations were as follows: September 30, 2020 December 31, 2019 Assets from Discontinued Operations: Cash $ - - Total assets from discontinued operations $ - $ - Liabilities from Discontinued Operations: Accounts payable $ 19,690,380 $ 19,690,378 Accrued liabilities 704,917 704,917 Accrued interest 1,137,544 1,022,342 Accrued payroll and compensation expense 131,108 131,108 Current maturities of long-term debt 239,085 444,085 Related-party payable 1,776,250 1,776,250 Short-term advances payable 2,784,773 2,579,773 Total liabilities from discontinued operations $ 26,464,057 $ 26,348,853 Net loss from discontinued operations for the nine months ended September 30, 2020 and 2019, were comprised of the following components: Nine months ended September 30, 2020 2019 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses - - Total operating expenses - - Other income (expense) Other income - 9,782 Interest expense (115,204 ) (114,784 ) Total other expense (115,204 ) (105,002 ) Net income (loss) from discontinued operations $ (115,204 ) $ (105,002 )

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	NOTE 14—SUBSEQUENT EVENTS We have evaluated all events occurring subsequent to the financial statements and determined there are no additional items to disclose. On March 11, 2020, the World Health Organization characterized COVID-19 as a global pandemic. This situation is ongoing, and we are monitoring it closely. Although our response to the COVID-19 pandemic continues to evolve, we have taken measures to mitigate the impact on our business operations and overall financial performance. We are also constantly evaluating and responding to the impact of the pandemic on our supply chain as compared to product demand. In addition, we actively monitor COVID-19-related developments and may take further actions that alter our business operations as may be required by federal, state, or local authorities or that we determine are in the best interests of our employees, customers, vendors, and stockholders. The effects of these operational modifications will be reflected in current and future reporting periods.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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 as of and for the periods ended September 30, 2020, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. The consolidated financial statements as of and for the periods ended September 30, 2019, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., CirTran Corporation (Utah), CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., Racore Network, and CirTran - Asia, 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 During the three and nine months ended September 30, 2020, we recognized revenues of $15,000 and $515,000, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptances of work product related to those milestones, namely product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified and, as such, no asset has been recorded for customer acquisition costs. Additionally, we have not recognized impairment losses related to the receivables from these contracts during the three and nine months ended September 30, 2020. Additionally, we recognized revenues of $390,005 and $420,319 during the three and nine months ended September 30, 2020, respectively, related to the delivery of product to our customers. Each delivery is based on a unique customer purchase order which is considered to be a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique purchase order contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product.
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 September 30, 2020, or December 31, 2019.
Leases	Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Leases,
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 September 30, 2020, and December 31, 2019. 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 September 30, 2020, and December 31, 2019, was $0 and $9,772, respectively. All property and equipment that was in service during the year ended December 31, 2019, was disposed of during the current period. 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 that 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 periods ended September 30, 2020 or 2019.
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 Monte Carlo simulation. The fair values of the derivative instruments are measured each reporting period.
Inventories	Inventories Inventories are stated at the lower of average cost or net realizable value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process. Inventories consist of finished goods as we do not carry raw materials for manufacturing products. When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us. From time to time, we will place deposits on inventory to be delivered in the future. These deposits are carried as a separate balance sheet component and totaled $44,559 (non-related-party) and $318,624 (related-party) as of September 30, 2020. There were no deposits on inventory as of December 31, 2019. Inventory balances consisted of the following: September 30, 2020 December 31, 2019 Finished goods $ 123,661 18,814 Raw materials 91,968 - Total $ 215,629 $ 18,814
Stock-Based Compensation	Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 12 Stock Options and Warrants Accounting for Stock Issued to Employees Improvements to Nonemployee Share-Based Payment Accounting Stock-based employee compensation was $56 and $600 for the nine months ended September 30, 2020 and 2019, respectively.
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 value because of the immediate or short-term maturities of these financial instruments. 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. Derivative liabilities are measured using level 3 inputs. Total Fair Value Quoted Significant Significant Derivative liabilities $ 1,218,396 $ - $ - $ 1,218,396 Total Fair Value at December 31, 2019 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivative liabilities $ 894,079 $ - $ - $ 894,079
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. There were 160,186,365 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the three and nine months ended September 30, 2020, due to the anti-dilutive effect these would have on net loss per share. There were 133,107,973 such shares issuable as of September 30, 2019. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future.
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 In August 2020, the FASB issued ASU 2020-06 “Debt with Conversion and Other Options,”

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of Inventory	Inventory balances consisted of the following: September 30, 2020 December 31, 2019 Finished goods $ 123,661 18,814 Raw materials 91,968 - Total $ 215,629 $ 18,814
Schedule of Financial Assets and Liabilities Carried at Fair Valued Measured on Recurring Basis	Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities are measured using level 3 inputs. Total Fair Value Quoted Significant Significant Derivative liabilities $ 1,218,396 $ - $ - $ 1,218,396 Total Fair Value at December 31, 2019 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivative liabilities $ 894,079 $ - $ - $ 894,079

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
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: September 30, 2020 December 31, 2019 Useful Life (years) Furniture and office equipment $ - $ 177,900 5-10 Leasehold improvements - 997,714 7-10 Production equipment - 2,886,267 5-10 Vehicles - 53,209 3-7 Total - 4,115,090 Less: accumulated depreciation - (4,105,318 ) Property and equipment, net $ - $ 9,772

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: September 30, 2020 December 31, 2019 Tax liabilities $ 800,970 $ 806,331 Other 569,068 271,668 Total $ 1,370,038 $ 1,077,999
Schedule of Accrued Payroll and Compensation Liabilities	Accrued payroll and compensation liabilities consist of the following: September 30, 2020 December 31, 2019 Stock option expenses $ - $ 4,000 Director fees 140,000 135,000 Bonus expenses 129,358 121,858 Commissions 2,148 2,148 Administrative payroll 3,771,583 3,494,630 Total $ 4,043,089 $ 3,757,636

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable consisted of the following: September 30, 2020 December 31, 2019 Note payable to former service provider for past due account payable (current) $ 90,000 $ 90,000 Note payable for settlement of debt (long term) 500,000 500,000 Small Business Administration loan 156,000 - Total $ 746,000 $ 590,000

Convertible Debentures (Tables)

Convertible Debentures (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Convertible Debentures	Convertible debentures consisted of the following: September 30, 2020 December 31, 2019 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on May 30, 2021 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on November 30, 2020 25,000 25,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on February 8, 2021 25,000 25,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on December 23, 2020 25,000 10,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,665,528 $ 2,650,528 Less: discounts (640,885 ) (722,886 ) Total $ 2,024,643 $ 1,927,642 Less: current portion (264,284 ) (248,874 ) Long term portion $ 1,760,359 $ 1,678,768

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Liabilities at Fair Value	We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo simulation as of September 30, 2020, using the following assumptions: Volatility 95.2% - 135.2 % Risk-free rates 0.06% - 0.44 % Stock price $ 0.0345 Remaining life 0.25- 6.58 years

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	Total assets and liabilities included in discontinued operations were as follows: September 30, 2020 December 31, 2019 Assets from Discontinued Operations: Cash $ - - Total assets from discontinued operations $ - $ - Liabilities from Discontinued Operations: Accounts payable $ 19,690,380 $ 19,690,378 Accrued liabilities 704,917 704,917 Accrued interest 1,137,544 1,022,342 Accrued payroll and compensation expense 131,108 131,108 Current maturities of long-term debt 239,085 444,085 Related-party payable 1,776,250 1,776,250 Short-term advances payable 2,784,773 2,579,773 Total liabilities from discontinued operations $ 26,464,057 $ 26,348,853 Net loss from discontinued operations for the nine months ended September 30, 2020 and 2019, were comprised of the following components: Nine months ended September 30, 2020 2019 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses - - Total operating expenses - - Other income (expense) Other income - 9,782 Interest expense (115,204 ) (114,784 ) Total other expense (115,204 ) (105,002 ) Net income (loss) from discontinued operations $ (115,204 ) $ (105,002 )

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash equivalents
Investment in securities at cost	300,000	300,000		300,000
Property and equipment, net of accumulated depreciation				9,772
Depreciation method		The straight-line method of depreciation and amortization is followed for financial reporting purposes.
Impairment of long-lived assets
Deposits on inventory	44,559	44,559
Deposits on inventory - related party	$ 318,624	318,624
Stock-based employee compensation		$ 56	$ 600
Potentially issuable common shares	160,186,365	160,186,365	133,107,973
Maximum [Member]
Equity ownership percentage	20.00%	20.00%
Product Development Service [Member]
Revenue recognized	$ 15,000	$ 515,000
Product Delivery To Customers [Member]
Revenue recognized	$ 390,005	$ 420,319

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Finished goods	$ 123,661	$ 18,814
Raw materials	91,968
Total	$ 215,629	$ 18,814

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Financial Assets and Liabilities Carried at Fair Valued Measured on Recurring Basis (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Derivative liabilities	$ 1,218,396	$ 894,079
Quoted Prices in Active Markets Level 1 [Member]
Derivative liabilities
Significant Other Observable Inputs Level 2 [Member]
Derivative liabilities
Significant Unobservable Inputs Level 3 [Member]
Derivative liabilities	$ 1,218,396	$ 894,079

Going Concern and Realization_2

Going Concern and Realization of Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficiency	$ 38,433,552		$ 38,433,552		$ 37,994,597
Net loss	(193,677)	$ (278,695)	(660,896)	$ (709,453)
Accumulated deficit	$ (79,237,906)		$ (79,237,906)		$ (78,461,806)

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Loss on disposal of equipment			$ (9,771)
Depreciation expense		$ 573		$ 1,719

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment and Estimated Service Lives (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment		$ 4,115,090
Less accumulated depreciation		(4,105,318)
Property and equipment, net		9,772
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		177,900
Furniture and Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	5 years
Furniture and Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		997,714
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	7 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	10 years
Production Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		2,886,267
Production Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	5 years
Production Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	10 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		$ 53,209
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	3 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Life (years)	7 years

Related-Party Transactions (Det

Related-Party Transactions (Details Narrative) - USD ($)	Mar. 31, 2008	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2007	Dec. 31, 2019
Related Party Transaction [Line Items]
Promissory notes payable		$ 746,000			$ 590,000
Repayments to related parties		270,150	$ 18,270
Cash advance from related parties		10,700	74,477
Related party, expenses paid		1,940
Short-term advances payable - related parties		484,235			738,655
Related-party payable		13,740			13,740
Deposits on inventory - related party		$ 318,624
Iehab Hawatmeh [Member]
Related Party Transaction [Line Items]
Number of stock options held		30,000			30,000
Unsecured advances payable to related party		$ 900,339			$ 903,740
Iehab Hawatmeh [Member] | Employee Agreement [Member]
Related Party Transaction [Line Items]
Number of shares purchased to grant options		6,000
Number of options expired during period		6,000
Number of stock options held		6,000
CEO [Member]
Related Party Transaction [Line Items]
Inventory percentage		2.00%
Inventory purchase related party		$ 240,803
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 promissory notes	$ 300,000
Borrowing fee, percentage	5.00%
Debt instrument, maturity date	Apr. 30, 2008
Promissory Notes Payable [Member] | Shareholder One [Member]
Related Party Transaction [Line Items]
Promissory notes payable	$ 105,000
Promissory Notes Payable [Member] | Shareholder Two [Member]
Related Party Transaction [Line Items]
Promissory notes payable	105,000
Promissory Notes Payable [Member] | Shareholders Three [Member]
Related Party Transaction [Line Items]
Promissory notes payable	$ 105,000
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
Board Of Directors [Member]
Related Party Transaction [Line Items]
Borrowing fee, percentage					5.00%

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Other accrued liabilities	$ 45,000	$ 45,000
Direct labor cost	258,750
Cost of Sales [Member]
Direct labor cost	172,500
Operating Expenses [Member]
Direct labor cost	$ 86,250

Other Accrued Liabilities - Sch

Other Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Tax liabilities	$ 800,970	$ 806,331
Other	569,068	271,668
Total	$ 1,370,038	$ 1,077,999

Other Accrued Liabilities - S_2

Other Accrued Liabilities - Schedule of Accrued Payroll and Compensation Liabilities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Stock option expenses		$ 4,000
Director fees	140,000	135,000
Bonus expenses	129,358	121,858
Commissions	2,148	2,148
Administrative payroll	3,771,583	3,494,630
Total	$ 4,043,089	$ 3,757,636

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Jun. 30, 2013	Sep. 30, 2017	Nov. 30, 2004	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Commitments and Contingencies [Line Items]
Direct labor cost				$ 258,750
Stock option expense				$ 56		$ 600
Employment Agreement [Member] | President [Member]
Commitments and Contingencies [Line Items]
Options to purchase shares		6,000
Quarterly bonus as stated percentage of earnings before interest, taxes, depreciation and amortization for the applicable quarter		5.00%
Bonus percentage of net purchase price of acquisitions completed		1.00%
Annual bonus percentage of gross sales, net of returns and allowances		1.00%
Number of options to purchase shares of common stock		2,000
Employment Agreement [Member] | Mr. Hawatmeh and Ms. Hollinger [Member]
Commitments and Contingencies [Line Items]
Options to purchase shares				8,000	6,000
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				$ 1,048,756		1,048,756
Playboy Enterprises, Inc. [Member]
Commitments and Contingencies [Line Items]
Ligation settlement amount awarded				6,600,000
Accrued claim amount				$ 17,205,599		$ 17,205,599

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes Payable [Member]
Short-term Debt [Line Items]
Accrued interest on notes payable	$ 193,192	$ 157,535

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
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
Small Business Administration loan	156,000
Total	$ 746,000	$ 590,000

Convertible Debentures (Details

Convertible Debentures (Details Narrative)	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)Integer$ / sharesshares	Dec. 31, 2019USD ($)shares
Short-term Debt [Line Items]
Lowest bid price | $ / shares	$ 100
Debt convertible, threshold trading days | Integer	20
Accrued interest on convertible debentures, current	$ 2,695,365	$ 2,405,946
Convertible Debentures [Member]
Short-term Debt [Line Items]
Accrued interest on convertible debentures	1,499,317	1,399,295
Accrued interest on convertible debentures, current	38,494	28,199
Accrued interest on convertible debentures, noncurrent	$ 1,460,824	$ 1,371,098
Debentures were convertible into common shares | shares	160,186,365	568,989,796

Convertible Debentures - Schedu

Convertible Debentures - Schedule of Convertible Debentures (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Subtotal	$ 2,665,528	$ 2,650,528
Less: discounts	(640,885)	(722,886)
Total	2,024,643	1,927,642
Less: current portion	(264,284)	(248,874)
Long term portion	1,760,359	1,678,768
Convertible Debenture One [Member]
Short-term Debt [Line Items]
Subtotal	200,000	200,000
Convertible Debenture Two [Member]
Short-term Debt [Line Items]
Subtotal	25,000	25,000
Convertible Debenture Three [Member]
Short-term Debt [Line Items]
Subtotal	25,000	25,000
Convertible Debenture Four [Member]
Short-term Debt [Line Items]
Subtotal	25,000	10,000
Convertible Debenture Five [Member]
Short-term Debt [Line Items]
Subtotal	$ 2,390,528	$ 2,390,528

Convertible Debentures - Sche_2

Convertible Debentures - Schedule of Convertible Debentures (Details) (Parenthetical)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Convertible Debenture One [Member]
Convertible debenture, stated interest rate	5.00%	5.00%
Debt instruments maturity date	May 30, 2021	May 30, 2021
Convertible Debenture Two [Member]
Convertible debenture, stated interest rate	5.00%	5.00%
Debt instruments maturity date	Nov. 30, 2020	Nov. 30, 2020
Convertible Debenture Three [Member]
Convertible debenture, stated interest rate	5.00%	5.00%
Debt instruments maturity date	Feb. 8, 2021	Feb. 8, 2021
Convertible Debenture Four [Member]
Convertible debenture, stated interest rate	5.00%	5.00%
Debt instruments maturity date	Dec. 23, 2020	Dec. 23, 2020
Convertible Debenture Five [Member]
Convertible debenture, stated interest rate	5.00%	5.00%
Debt instruments maturity date	Apr. 30, 2027	Apr. 30, 2027

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Integer$ / shares	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Convertible debentures	$ 2,665,528		$ 2,665,528		$ 2,650,528
Terms of conversion feature			Convertible at the holder's option into common stock of the company at the lesser of $100 (notes one through four) or $0.10 (note five) or the lowest closing bid price in the prior 20 trading days.
Lowest bid price | $ / shares			$ 100
Debt convertible, threshold trading days | Integer			20
Gain (loss) on derivative valuation	39,700	$ (7,431)	$ (318,564)	$ (7,431)
Derivative liability	$ 1,218,396		$ 1,218,396		$ 894,079

Derivative Liabilities - Schedu

Derivative Liabilities - Schedule of Derivative Liabilities at Fair Value (Details)	9 Months Ended
	Sep. 30, 2020Integer$ / shares
Derivative liability, stock price per share | $ / shares	$ 0.0345
Volatility [Member] | Minimum [Member]
Derivative liability, measurement input percentage	95.2
Volatility [Member] | Maximum [Member]
Derivative liability, measurement input percentage	135.2
Risk-Free Rates [Member] | Minimum [Member]
Derivative liability, measurement input percentage	0.06
Risk-Free Rates [Member] | Maximum [Member]
Derivative liability, measurement input percentage	0.44
Remaining Life [Member] | Minimum [Member]
Derivative liability, remaining life	2 months 30 days
Remaining Life [Member] | Maximum [Member]
Derivative liability, remaining life	6 years 6 months 29 days

Stockholders' Deficit (Details

Stockholders' Deficit (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Equity [Abstract]
Common stock, shares authorized	100,000,000		100,000,000
Common stock, par value	$ 0.001		$ 0.001
Number of shares issued during period
Common stock, shares issued	4,500,417		4,500,417
Common stock, shares outstanding	4,500,417		4,500,417
Reverse stock split			1:1000 reverse stock split
Reclassification of common stock and additional paid in capital		$ 4,494,392

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase common stock	8,000
Options expired unexercised	8,000
Options issued	40,000
Vested weighted average exercise price	$ 0.01
Weighted average remaining life	2 years 7 months 28 days
Stock Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair market value assumptions estimated term	5 years	7 years
Fair market value assumptions estimated volatility	91.00%	567.00%
Fair market value assumptions risk-free rate	1.61%	2.38%
Stock Incentive Plans [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options, granted during period	8,000	6,000
Stock Incentive Plans [Member] | Mr. Hawatmeh [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options, granted during period		6,000
Fair market value of stock options		$ 600

Discontinued Operations - Sched

Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Cash
Total assets from discontinued operations
Accounts payable	19,690,380		19,690,380		19,690,378
Accrued liabilities	704,917		704,917		704,917
Accrued interest	1,137,544		1,137,544		1,022,342
Accrued payroll and compensation expense	131,108		131,108		131,108
Current maturities of long-term debt	239,085		239,085		444,085
Related-party payable	1,776,250		1,776,250		1,776,250
Short-term advances payable	2,784,773		2,784,773		2,579,773
Total liabilities from discontinued operations	26,464,057		26,464,057		$ 26,348,853
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Total operating expenses
Other income				9,782
Interest expense			(115,204)	(114,784)
Total other expense			(115,204)	(105,002)
Net income (loss) from discontinued operations	$ (38,681)	$ (38,682)	$ (115,204)	$ (105,002)