Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-49654 | |
Entity Registrant Name | CirTran Corporation | |
Entity Central Index Key | 0000813716 | |
Entity Tax Identification Number | 68-0121636 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 6360 S Pecos Road | |
Entity Address, Address Line Two | Suite 8 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89120 | |
City Area Code | (801) | |
Local Phone Number | 963-5112 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,945,417 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 16,653 | $ 108,147 |
Inventory | 597,456 | 325,252 |
Deposits on inventory | 11,639 | 53,900 |
Deposits on inventory - related party | 81,821 | 319,333 |
Accounts receivable | 143,395 | 16,966 |
Other current assets | 309,847 | 118,844 |
Assets from discontinued operations | ||
Total current assets | 1,160,811 | 942,442 |
Investment in securities at cost | 300,000 | 300,000 |
Right-of-use asset | 36,263 | 50,409 |
Property and equipment, net of accumulated depreciation | 18,343 | 18,299 |
Total assets | 1,515,417 | 1,311,150 |
Current liabilities | ||
Accounts payable | 1,567,440 | 1,347,870 |
Lease liability, current | 28,828 | 28,118 |
Related-party payable | 13,740 | 13,740 |
Short-term advances payable | 79,904 | 109,904 |
Short-term advances payable - related parties | 87,867 | 287,776 |
Accrued liabilities | 1,442,429 | 1,354,539 |
Accrued payroll and compensation expense | 4,325,773 | 4,133,346 |
Accrued interest, current portion | 3,084,093 | 2,824,948 |
Convertible debenture, current portion, net of discounts | 264,284 | 264,284 |
Note payable, current portion | 90,000 | 90,000 |
Note payable to stockholders and members | 521,194 | 521,194 |
Derivative liability | 1,037,314 | 922,654 |
Liabilities from discontinued operations | 26,229,922 | 26,153,820 |
Total current liabilities | 38,772,788 | 38,052,193 |
Lease liability, long term | 7,435 | 22,291 |
Accrued interest, net of current portion | 1,516,023 | 1,490,951 |
Note payable, net of current portion | 656,000 | 656,000 |
Convertible debenture, net of current portion, net of discount | 1,832,062 | 1,787,816 |
Total liabilities | 42,784,308 | 42,009,251 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Common stock, par value $0.001; 100,000,000 shares authorized; 4,945,417 and 4,720,417 shares issued and outstanding at June 30, 2021, and December 31, 2020, respectively | 4,945 | 4,720 |
Additional paid-in capital | 37,233,376 | 37,226,851 |
Accumulated deficit | (78,507,212) | (77,929,672) |
Total stockholders’ deficit | (41,268,891) | (40,698,101) |
Total liabilities and stockholders’ deficit | $ 1,515,417 | $ 1,311,150 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 4,945,417 | 4,720,417 |
Common stock, shares outstanding | 4,945,417 | 4,720,417 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 700,656 | $ 528,232 | $ 1,320,055 | $ 530,314 |
Cost of sales | 262,411 | 195,838 | 464,059 | 197,319 |
Gross profit | 438,245 | 332,394 | 855,996 | 332,995 |
Operating expenses | ||||
Employee costs | 135,077 | 268,965 | ||
Selling, general and administrative expenses | 359,297 | 78,884 | 638,595 | 161,544 |
Total operating expenses | 494,374 | 78,884 | 907,560 | 161,544 |
Income (loss) from operations | (56,129) | 253,510 | (51,564) | 171,451 |
Other income (expense) | ||||
Interest expense | (168,726) | (156,568) | (335,214) | (312,635) |
Loss on disposal of equipment | (9,771) | |||
Gain (loss) on derivative valuation | 13,131 | (289,050) | (114,660) | (358,264) |
Other income | 2,000 | 42,000 | ||
Total other expense | (155,595) | (443,618) | (449,874) | (638,670) |
Net loss from continuing operations | (211,724) | (190,108) | (501,438) | (467,219) |
Loss from discontinued operations | (38,261) | (38,262) | (76,102) | (76,523) |
Net loss | $ (249,985) | $ (228,370) | $ (577,540) | $ (543,742) |
Net loss from continuing operations per common share, basic and diluted | $ (0.04) | $ (0.04) | $ (0.10) | $ (0.10) |
Net loss from discontinued operations per common share, basic and diluted | (0.01) | (0.01) | (0.02) | (0.02) |
Net loss per common share, basic and diluted | $ (0.05) | $ (0.05) | $ (0.12) | $ (0.12) |
Basic and diluted weighted average common shares outstanding | 4,945,417 | 4,500,417 | 4,928,584 | 4,500,417 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 4,500 | $ 37,222,615 | $ (78,461,806) | $ (41,234,691) |
Beginning balance, shares at Dec. 31, 2019 | 4,500,417 | |||
Stock option expense | 56 | 56 | ||
Net loss | (315,372) | (315,372) | ||
Ending balance, value at Mar. 31, 2020 | $ 4,500 | 37,222,671 | (78,777,178) | (41,550,007) |
Ending balance, shares at Mar. 31, 2020 | 4,500,417 | |||
Beginning balance, value at Dec. 31, 2019 | $ 4,500 | 37,222,615 | (78,461,806) | (41,234,691) |
Beginning balance, shares at Dec. 31, 2019 | 4,500,417 | |||
Net loss | (543,742) | |||
Ending balance, value at Jun. 30, 2020 | $ 4,500 | 37,222,671 | (79,005,548) | (41,778,377) |
Ending balance, shares at Jun. 30, 2020 | 4,500,417 | |||
Beginning balance, value at Mar. 31, 2020 | $ 4,500 | 37,222,671 | (78,777,178) | (41,550,007) |
Beginning balance, shares at Mar. 31, 2020 | 4,500,417 | |||
Net loss | (228,370) | (228,370) | ||
Ending balance, value at Jun. 30, 2020 | $ 4,500 | 37,222,671 | (79,005,548) | (41,778,377) |
Ending balance, shares at Jun. 30, 2020 | 4,500,417 | |||
Beginning balance, value at Dec. 31, 2020 | $ 4,720 | 37,226,851 | (77,929,672) | (40,698,101) |
Beginning balance, shares at Dec. 31, 2020 | 4,720,417 | |||
Common stock issued for conversion of accrued interest | $ 225 | 6,525 | 6,750 | |
Common stock issued for conversion of accrued interest, shares | 225,000 | |||
Net loss | (327,555) | (327,555) | ||
Ending balance, value at Mar. 31, 2021 | $ 4,945 | 37,233,376 | (78,257,227) | (41,018,906) |
Ending balance, shares at Mar. 31, 2021 | 4,945,417 | |||
Beginning balance, value at Dec. 31, 2020 | $ 4,720 | 37,226,851 | (77,929,672) | (40,698,101) |
Beginning balance, shares at Dec. 31, 2020 | 4,720,417 | |||
Common stock issued for conversion of accrued interest | 6,750 | |||
Common stock issued for conversion of accrued interest, shares | 225,000 | |||
Net loss | (577,540) | |||
Ending balance, value at Jun. 30, 2021 | $ 4,945 | 37,233,376 | (78,507,212) | (41,268,891) |
Ending balance, shares at Jun. 30, 2021 | 4,945,417 | |||
Beginning balance, value at Mar. 31, 2021 | $ 4,945 | 37,233,376 | (78,257,227) | (41,018,906) |
Beginning balance, shares at Mar. 31, 2021 | 4,945,417 | |||
Net loss | (249,985) | (249,985) | ||
Ending balance, value at Jun. 30, 2021 | $ 4,945 | $ 37,233,376 | $ (78,507,212) | $ (41,268,891) |
Ending balance, shares at Jun. 30, 2021 | 4,945,417 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss from continuing operations | $ (501,438) | $ (467,219) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 1,953 | |
Loss on derivative valuation | 114,660 | 358,264 |
Debt discount amortization | 22,608 | 61,018 |
Loss on disposal of equipment | 9,771 | |
Stock option expense | 56 | |
Amortization of right-of-use asset to rent expense | 14,146 | |
Expenses paid on our behalf by a related party | (199,909) | 1,940 |
Changes in operating assets and liabilities: | ||
Inventory | (272,204) | (171,356) |
Deposits on inventory | 42,261 | (40,845) |
Deposits on inventory - related party | 237,512 | (185,375) |
Accounts receivable | (126,429) | |
Other current assets | (191,003) | (7,496) |
Accounts payable | 219,570 | 5,706 |
Accrued liabilities | 87,890 | 207,295 |
Payments for lease liability | (14,146) | |
Accrued payroll and compensation | 192,427 | 182,270 |
Accrued interest | 290,895 | 251,263 |
Net cash (used in) provided by continuing operating activities | (81,207) | 205,592 |
Cash flows from investing activities | ||
Purchase of equipment | (1,624) | |
Net cash used in investing activities | (1,624) | |
Cash flows from financing activities | ||
Proceeds from bank overdraft | (1,611) | |
Proceeds from convertible loans payable | 21,337 | 15,000 |
Proceeds from related-party loans | 10,700 | |
Repayments of related-party loans | (30,000) | (262,350) |
Proceeds from loan payable | 156,000 | |
Repayments of loans payable | (21,000) | |
Net Cash used in financing activities | (8,663) | (103,261) |
Net change in cash | (91,494) | 102,331 |
Cash, beginning of period | 108,147 | |
Cash, end of period | 16,653 | 102,331 |
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 | |
Common stock issued for conversion of accrued interest | $ 6,750 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1— ORGANIZATION AND NATURE OF OPERATIONS In 1987, CirTran Corporation was incorporated in Nevada under the name Vermillion Ventures, Inc., for the purpose of acquiring other operating corporate entities. We were largely inactive until July 1, 2000, when our wholly owned subsidiary, CirTran Corporation (Utah), acquired substantially all the assets and certain liabilities of Circuit Technology, Inc., founded by our president, Iehab Hawatmeh. We, together with our majority-owned subsidiaries, manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name. Since entering our 2019 five-year manufacturing and distribution agreement with an unrelated party, our efforts have been devoted to phase one of our development of all HUSTLER®-branded products, which led us to generating revenue during 2020 for the first time in several years. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in our Form 10-K for the fiscal year ended December 31, 2020. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of June 30, 2021, and the results of our operations and cash flows for the six months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2021. Principles of Consolidation We consolidate 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 unaudited consolidated financial statements as of and for the periods ended June 30, 2021 and 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. Use of Estimates In preparing the financial statements in accordance with US GAAP, 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 six months ended June 30, 2021, we recognized revenue of $ 15,000 30,000 Additionally, we recognized revenues of $ 55,656 1,290,055 Leases In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases Leases The adoption of the standard resulted in recording right-of-use (“ROU”) assets and operating lease liabilities of $ 36,263 We have one lease in effect requiring minimum monthly payments of $ 2,500 5 SUMMARY OF FUTURE MINIMUM LEASE PAYMENTS DUE Total future payments $ 37,500 Implied interest (2,500 ) Operating lease liability as of December 31, 2021 $ 40,000 Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $ 300,000 20 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 June 30, 2021 or 2020. 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 $ 11,639 81,821 53,900 319,333 Inventory balances consisted of the following: SCHEDULE OF INVENTORY June 30, 2021 December 31, 2020 Finished goods $ 794,139 $ 526,372 Raw materials 45,240 40,803 Reserves for obsolescence (241,923 ) (241,923 ) Total $ 597,456 $ 325,252 Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 12–Stock Options and Warrants. We account for our stock options in accordance with ASC 718-10, Accounting for Stock Issued to Employees Improvements to Nonemployee Share-Based Payment Accounting Stock-based employee compensation was $ 0 56 Fair Value of Financial Instruments ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions Level 1 Level 2 Level 3 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. SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS Total Fair Quoted Significant Significant Derivative liabilities $ 1,037,314 $ - $ - $ 1,037,314 Total Fair Quoted Significant Significant Derivative liabilities $ 922,654 $ - $ - $ 922,654 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 141,554,300 254,654,532 Recently Issued Accounting Pronouncements We have implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on our financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3— GOING CONCERN The accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which contemplate our continuation as a going concern. We had a working capital deficiency of $ 36,611,977 501,438 78,507,212 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 mainly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon our shareholders and us. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4— PROPERTY AND EQUIPMENT We incur certain costs associated with the design and development of molds and dies for our contract-manufacturing segment. These costs are held as deposits on the balance sheet until the molds or dies are finished and ready for use. At that point, the costs are included as part of production equipment in property and equipment and are amortized over their useful lives. We hold title to all molds and dies used in the manufacture of products. 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. Property and equipment and estimated service lives consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES June 30, 2021 December 31, 2020 Useful Life (years) Furniture and office equipment $ 1,624 $ - 5 10 Vehicles 18,672 18,672 3 7 Total 20,296 18,672 Less: accumulated depreciation (1,953 ) (373 ) Property and equipment, net $ 18,343 $ 18,299 We recorded $ 1,580 0 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | NOTE 5— RELATED-PARTY TRANSACTIONS In 2007, we issued a 10 300,000 The note was due on demand after May 2008. 151,833 151,833 On March 31, 2008, we issued to this same family member, along with two other company shareholders, promissory notes totaling $ 315,000 105,000 105,000 300,000 5 April 30, 2008 12 72,466 72,466 During the six months ended June 30, 2021, we made repayments to related parties of $ 30,000 199,909 87,868 287,776 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 his employment agreement require us to grant options to purchase 6,000 no 6,000 32,000 30,000 As of June 30, 2021, and December 31, 2020, we owed our president a total of $ 687,484 868,528 5 As of June 30, 2021, and December 31, 2020, we owed a total of $ 13,740 During the six months ended June 30, 2021, we had a net decrease in deposits with a related-party inventory supplier totaling $ 234,512 2 819,882 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
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: SCHEDULE OF ACCRUED LIABILITIES June 30, 2021 December 31, 2020 Tax liabilities $ 521,797 $ 557,894 Other 920,632 796,645 Total $ 1,442,429 $ 1,354,539 Other accrued liabilities as of June 30, 2021, and December 31, 2020, include a non-interest-bearing payable totaling $ 45,000 832,678 751,645 Accrued payroll and compensation liabilities consist of the following: SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES June 30, 2021 December 31, 2020 Director fees $ 135,000 $ 135,000 Bonus expenses 126,858 121,858 Commissions 2,148 2,148 Consulting 608,784 - Administrative payroll 3,452,983 3,874,340 Total $ 4,325,773 $ 4,133,346 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
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 to 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 of $ 6.6 17,205,599 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 required us to pay $ 500,000 , remain current in our payment of taxes for five years 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 required us to pay the IRS 5 % of cash deposits. The monthly payments were to continue until the account balances were paid in full or until the collection statute of limitation expired on October 6, 2020. We are currently in communication with the IRS regarding the statute of limitations on this settlement and appropriate next steps. Amounts of $ 673,645 and $ 673,645 were due as of June 30, 2021, and December 31, 2020, 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 5 1 1 172,500 We also have an oral agreement with our other director that requires us to issue options to purchase 2,000 During the six months ended June 30, 2021 and 2020, we granted options to purchase 0 8,000 0 56 We have no other agreements requiring the grant of options. License Agreements We have entered into agreements requiring us to pay certain royalties for the manufacture and distribution of licensed products. Fees are based on a percentage of sales and remitted quarterly and are included in cost of sales for financial reporting purposes. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
NOTES PAYABLE | NOTE 8— NOTES PAYABLE Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE June 30, 2021 December 31, 2020 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 156,000 156,000 Total $ 746,000 $ 746,000 There was $ 234,293 208,078 |
CONVERTIBLE DEBENTURES
CONVERTIBLE DEBENTURES | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBENTURES | NOTE 9— CONVERTIBLE DEBENTURES Convertible debentures consisted of the following: SCHEDULE OF CONVERTIBLE DEBENTURES June 30, 2021 December 31, 2020 Convertible debenture, 5 May 30, 2021 $ 200,000 $ 200,000 Convertible debenture, 5 December 8, 2021 25,000 25,000 Convertible debenture, 5 February 8, 2021 25,000 25,000 Convertible debenture, 5 December 8, 2021 25,000 25,000 Convertible debenture, 5 April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,665,528 $ 2,665,528 Less: discounts (569,182 ) (613,428 ) Total $ 2,096,346 $ 2,052,100 Less: current portion (264,284 ) (264,284 ) Long term portion $ 1,832,062 $ 1,787,816 The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $ 100 20 6,750 225,000 As of June 30, 2021, and December 31, 2020, we had accrued interest on the convertible debentures totaling $ 1,587,851 1,528,511 59,341 41,960 1,516,023 1,486,551 141,554,300 167,761,552 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITIES | NOTE 10— DERIVATIVE LIABILITIES As discussed in Note 9—Convertible Debentures, we have entered into five separate agreements to borrow a total of $ 2,665,528 convertible at the holder’s option into common stock of the company at the lesser of $ 100 20 SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE Volatility 96.8 08.6 Risk-free rates 0.15 0.75 Stock price $ 0.0610 Remaining life 0.00 5.83 The fair values of the derivative instruments are measured each quarter, which resulted in a loss of $ 114,660 358,264 13,131 289,050 1,037,314 922,654 |
COMMON STOCK TRANSACTIONS
COMMON STOCK TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Common Stock Transactions | |
COMMON STOCK TRANSACTIONS | NOTE 11 – COMMON STOCK TRANSACTIONS We are authorized to issue up to 100,000,000 0.001 225,000 6,750 |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCK OPTIONS AND WARRANTS | NOTE 12— STOCK OPTIONS AND WARRANTS Stock Incentive Plans During the six months ended June 30, 2021 and 2020, we granted to employees 0 8,000 The 8,000 five-year 91 1.61 As of June 30, 2021, and December 31, 2020, we had no As of June 30, 2021, there were 32,000 0.08 2.35 SCHEDULE OF STOCK OPTIONS OUTSTANDING Exercise Price Count Average Exercise Remaining Life Exercisable $ 0.01 8,000 $ 0.01 3.77 8,000 $ 0.10 24,000 $ 0.10 1.87 24,000 Total 32,000 $ 0.08 2.35 32,000 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, and December 31, 2020, as a result. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations for the six months ended June 30, 2021 and 2020. Total assets and liabilities included in discontinued operations were as follows: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 2021 December 31, 2020 Assets from Discontinued Operations: Cash $ - $ - Total assets from discontinued operations $ - $ - Liabilities from Discontinued Operations: Accounts payable $ 19,456,998 $ 19,456,998 Accrued liabilities 589,380 589,380 Accrued interest 1,252,328 1,176,226 Accrued payroll and compensation expense 131,108 131,108 Current maturities of long-term debt 239,085 239,085 Related-party payable 1,776,250 1,776,250 Short-term advances payable 2,784,773 2,784,773 Total liabilities from discontinued operations $ 26,229,922 $ 26,153,820 Net loss from discontinued operations for the six months ended June 30, 2021 and 2020, were comprised of the following components: 2021 2020 Six months ended June 30, 2021 2020 Other expense: Interest expense $ (76,102 ) $ (76,523 ) Total other expense (76,102 ) (76,523 ) Net loss from discontinued operations $ (76,102 ) $ (76,523 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
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) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in our Form 10-K for the fiscal year ended December 31, 2020. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of June 30, 2021, and the results of our operations and cash flows for the six months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2021. |
Principles of Consolidation | Principles of Consolidation We consolidate 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 unaudited consolidated financial statements as of and for the periods ended June 30, 2021 and 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. |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with US GAAP, 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 six months ended June 30, 2021, we recognized revenue of $ 15,000 30,000 Additionally, we recognized revenues of $ 55,656 1,290,055 |
Leases | Leases In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases Leases The adoption of the standard resulted in recording right-of-use (“ROU”) assets and operating lease liabilities of $ 36,263 We have one lease in effect requiring minimum monthly payments of $ 2,500 5 SUMMARY OF FUTURE MINIMUM LEASE PAYMENTS DUE Total future payments $ 37,500 Implied interest (2,500 ) Operating lease liability as of December 31, 2021 $ 40,000 |
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 20 |
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 June 30, 2021 or 2020. |
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 $ 11,639 81,821 53,900 319,333 Inventory balances consisted of the following: SCHEDULE OF INVENTORY June 30, 2021 December 31, 2020 Finished goods $ 794,139 $ 526,372 Raw materials 45,240 40,803 Reserves for obsolescence (241,923 ) (241,923 ) Total $ 597,456 $ 325,252 |
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. We account for our stock options in accordance with ASC 718-10, Accounting for Stock Issued to Employees Improvements to Nonemployee Share-Based Payment Accounting Stock-based employee compensation was $ 0 56 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions Level 1 Level 2 Level 3 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. SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS Total Fair Quoted Significant Significant Derivative liabilities $ 1,037,314 $ - $ - $ 1,037,314 Total Fair Quoted Significant Significant Derivative liabilities $ 922,654 $ - $ - $ 922,654 |
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 141,554,300 254,654,532 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements We have implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on our financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF FUTURE MINIMUM LEASE PAYMENTS DUE | SUMMARY OF FUTURE MINIMUM LEASE PAYMENTS DUE Total future payments $ 37,500 Implied interest (2,500 ) Operating lease liability as of December 31, 2021 $ 40,000 |
SCHEDULE OF INVENTORY | Inventory balances consisted of the following: SCHEDULE OF INVENTORY June 30, 2021 December 31, 2020 Finished goods $ 794,139 $ 526,372 Raw materials 45,240 40,803 Reserves for obsolescence (241,923 ) (241,923 ) Total $ 597,456 $ 325,252 |
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. SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS Total Fair Quoted Significant Significant Derivative liabilities $ 1,037,314 $ - $ - $ 1,037,314 Total Fair Quoted Significant Significant Derivative liabilities $ 922,654 $ - $ - $ 922,654 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES June 30, 2021 December 31, 2020 Useful Life (years) Furniture and office equipment $ 1,624 $ - 5 10 Vehicles 18,672 18,672 3 7 Total 20,296 18,672 Less: accumulated depreciation (1,953 ) (373 ) Property and equipment, net $ 18,343 $ 18,299 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED LIABILITIES | Accrued liabilities consist of the following: SCHEDULE OF ACCRUED LIABILITIES June 30, 2021 December 31, 2020 Tax liabilities $ 521,797 $ 557,894 Other 920,632 796,645 Total $ 1,442,429 $ 1,354,539 |
SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES | Accrued payroll and compensation liabilities consist of the following: SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES June 30, 2021 December 31, 2020 Director fees $ 135,000 $ 135,000 Bonus expenses 126,858 121,858 Commissions 2,148 2,148 Consulting 608,784 - Administrative payroll 3,452,983 3,874,340 Total $ 4,325,773 $ 4,133,346 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
SCHEDULE OF NOTES PAYABLE | Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE June 30, 2021 December 31, 2020 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 156,000 156,000 Total $ 746,000 $ 746,000 |
CONVERTIBLE DEBENTURES (Tables)
CONVERTIBLE DEBENTURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF CONVERTIBLE DEBENTURES | Convertible debentures consisted of the following: SCHEDULE OF CONVERTIBLE DEBENTURES June 30, 2021 December 31, 2020 Convertible debenture, 5 May 30, 2021 $ 200,000 $ 200,000 Convertible debenture, 5 December 8, 2021 25,000 25,000 Convertible debenture, 5 February 8, 2021 25,000 25,000 Convertible debenture, 5 December 8, 2021 25,000 25,000 Convertible debenture, 5 April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,665,528 $ 2,665,528 Less: discounts (569,182 ) (613,428 ) Total $ 2,096,346 $ 2,052,100 Less: current portion (264,284 ) (264,284 ) Long term portion $ 1,832,062 $ 1,787,816 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE | SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE Volatility 96.8 08.6 Risk-free rates 0.15 0.75 Stock price $ 0.0610 Remaining life 0.00 5.83 |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | SCHEDULE OF STOCK OPTIONS OUTSTANDING Exercise Price Count Average Exercise Remaining Life Exercisable $ 0.01 8,000 $ 0.01 3.77 8,000 $ 0.10 24,000 $ 0.10 1.87 24,000 Total 32,000 $ 0.08 2.35 32,000 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISCONTINUED OPERATIONS | Total assets and liabilities included in discontinued operations were as follows: SCHEDULE OF DISCONTINUED OPERATIONS June 30, 2021 December 31, 2020 Assets from Discontinued Operations: Cash $ - $ - Total assets from discontinued operations $ - $ - Liabilities from Discontinued Operations: Accounts payable $ 19,456,998 $ 19,456,998 Accrued liabilities 589,380 589,380 Accrued interest 1,252,328 1,176,226 Accrued payroll and compensation expense 131,108 131,108 Current maturities of long-term debt 239,085 239,085 Related-party payable 1,776,250 1,776,250 Short-term advances payable 2,784,773 2,784,773 Total liabilities from discontinued operations $ 26,229,922 $ 26,153,820 Net loss from discontinued operations for the six months ended June 30, 2021 and 2020, were comprised of the following components: 2021 2020 Six months ended June 30, 2021 2020 Other expense: Interest expense $ (76,102 ) $ (76,523 ) Total other expense (76,102 ) (76,523 ) Net loss from discontinued operations $ (76,102 ) $ (76,523 ) |
SUMMARY OF FUTURE MINIMUM LEASE
SUMMARY OF FUTURE MINIMUM LEASE PAYMENTS DUE (Details) | Jun. 30, 2021USD ($) |
Accounting Policies [Abstract] | |
Total future payments | $ 37,500 |
Implied interest | (2,500) |
Operating lease liability | $ 40,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Finished goods | $ 794,139 | $ 526,372 |
Raw materials | 45,240 | 40,803 |
Reserves for obsolescence | (241,923) | (241,923) |
Total | $ 597,456 | $ 325,252 |
SCHEDULE OF FINANCIAL ASSETS AN
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | $ 1,037,314 | $ 922,654 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | $ 1,037,314 | $ 922,654 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Product Information [Line Items] | ||||
Right-of-use asset and operating lease liabilities | $ 36,263 | $ 36,263 | ||
Lease monthly payments | $ 2,500 | |||
Operating lease discount rate | 5.00% | 5.00% | ||
Investment in securities at cost | $ 300,000 | $ 300,000 | $ 300,000 | |
Deposits on inventory | 11,639 | 11,639 | 53,900 | |
Deposits on inventory - related party | $ 81,821 | 81,821 | $ 319,333 | |
Stock-based employee compensation | $ 0 | $ 56 | ||
Potentially issuable common shares | 141,554,300 | 141,554,300 | 254,654,532 | |
Maximum [Member] | ||||
Product Information [Line Items] | ||||
Equity ownership percentage | 20.00% | 20.00% | ||
Product Development Service [Member] | ||||
Product Information [Line Items] | ||||
Revenue recognized | $ 15,000 | $ 30,000 | ||
Product Delivery to Customers [Member] | ||||
Product Information [Line Items] | ||||
Revenue recognized | $ 55,656 | $ 1,290,055 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Working capital deficiency | $ 36,611,977 | $ 36,611,977 | |||
Net loss from continuing operations | 211,724 | $ 190,108 | 501,438 | $ 467,219 | |
Accumulated deficit | $ 78,507,212 | $ 78,507,212 | $ 77,929,672 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 20,296 | $ 18,672 |
Less: accumulated depreciation | (1,953) | (373) |
Property and equipment, net | 18,343 | 18,299 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,624 | |
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 | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 18,672 | $ 18,672 |
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 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,580 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details Narrative) - USD ($) | Mar. 31, 2008 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2007 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||
Promissory notes payable | $ 746,000 | $ 746,000 | |||
Proceeds from promissory notes | $ 156,000 | ||||
Repayments to related parties | 30,000 | 262,350 | |||
Related party, expenses paid | 199,909 | $ (1,940) | |||
Short-term advances payable - related parties | (87,868) | (287,776) | |||
Related-party payable | 13,740 | $ 13,740 | |||
Increase in deposits on inventory - related parties | $ 234,512 | ||||
Iehab Hawatmeh [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of stock options held | 32,000 | 30,000 | |||
Unsecured advances payable to related party | $ 687,484 | $ 868,528 | |||
Percentage for borrowing fees | 5.00% | ||||
Iehab Hawatmeh [Member] | Employee Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of shares purchased to grant options | 6,000 | ||||
Number of stock options held | 0 | ||||
Number of options expired during period | 6,000 | ||||
Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Inventory percentage | 2.00% | ||||
Inventory purchase related party | $ 819,882 | ||||
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 |
SCHEDULE OF ACCRUED LIABILITIES
SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Tax liabilities | $ 521,797 | $ 557,894 |
Other | 920,632 | 796,645 |
Total | $ 1,442,429 | $ 1,354,539 |
SCHEDULE OF ACCRUED PAYROLL AND
SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Director fees | $ 135,000 | $ 135,000 |
Bonus expenses | 126,858 | 121,858 |
Commissions | 2,148 | 2,148 |
Consulting | 608,784 | |
Administrative payroll | 3,452,983 | 3,874,340 |
Total | $ 4,325,773 | $ 4,133,346 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Other accrued liabilities | $ 45,000 | $ 45,000 |
Advance customer deposits | $ 832,678 | $ 751,645 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2013 | Nov. 30, 2004 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||||||
Stock option expense | $ 0 | $ 56 | ||||
Chief Executive Officer [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Accrued wages | $ 172,500 | |||||
Employment Agreement [Member] | President [Member] | ||||||
Loss 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% | |||||
Employment Agreement [Member] | Mr. Hawatmeh and Ms. Hollinger [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Options to purchase shares | 0 | 8,000 | ||||
Oral Agreement [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Options to purchase shares | 2,000 | |||||
Delinquent Payroll Taxes Interest and Penalties [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Payment for acceptance of delinquent payroll taxes | $ 500,000 | |||||
Period of required offer to remain current in payment of taxes | 5 years | |||||
Amount of taxes waived | $ 1,455,767 | |||||
Accrued Payroll Taxes | $ 768,526 | |||||
Percentage of internal revenue service rate of cash deposits | 5.00% | |||||
Due to Related Parties, Noncurrent | $ 673,645 | $ 673,645 | ||||
Playboy Enterprises, Inc. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Ligation settlement amount awarded | 6,600,000 | |||||
Accrued claim amount | $ 17,205,599 | $ 17,205,599 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Payable | ||
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 | 156,000 |
Total | $ 746,000 | $ 746,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Payable [Member] | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Accrued interest on notes payable | $ 234,293 | $ 208,078 |
CONVERTIBLE DEBENTURES - SCHEDU
CONVERTIBLE DEBENTURES - SCHEDULE OF CONVERTIBLE DEBENTURES (Details) (Parenthetical) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Convertible Debenture One [Member] | ||
Short-term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Convertible debenture, maturity date | May 30, 2021 | May 30, 2021 |
Convertible Debenture Two [Member] | ||
Short-term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Convertible debenture, maturity date | Dec. 8, 2021 | Dec. 8, 2021 |
Convertible Debenture Three [Member] | ||
Short-term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Convertible debenture, maturity date | Feb. 8, 2021 | Feb. 8, 2021 |
Convertible Debenture Four [Member] | ||
Short-term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Convertible debenture, maturity date | Dec. 8, 2021 | Dec. 8, 2021 |
Convertible Debenture Five [Member] | ||
Short-term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Convertible debenture, maturity date | Apr. 30, 2027 | Apr. 30, 2027 |
SCHEDULE OF CONVERTIBLE DEBENTU
SCHEDULE OF CONVERTIBLE DEBENTURES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Subtotal | $ 2,665,528 | $ 2,665,528 |
Less: discounts | (569,182) | (613,428) |
Total | 2,096,346 | 2,052,100 |
Less: current portion | (264,284) | (264,284) |
Long term portion | 1,832,062 | 1,787,816 |
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 | 25,000 |
Convertible Debenture Five [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | $ 2,390,528 | $ 2,390,528 |
CONVERTIBLE DEBENTURES (Details
CONVERTIBLE DEBENTURES (Details Narrative) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)Integer$ / sharesshares | Dec. 31, 2020USD ($)shares | |
Short-term Debt [Line Items] | ||
Lowest bid price | $ / shares | $ 100 | |
Debt convertible, threshold trading days | Integer | 20 | |
Accrued interest on convertible debentures, current | $ 3,084,093 | $ 2,824,948 |
Convertible Debentures [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on convertible debentures | $ 1,587,851 | $ 1,528,511 |
Debentures were convertible into common shares | shares | 141,554,300 | 167,761,552 |
Accrued interest on convertible debentures, current | $ 59,341 | $ 41,960 |
Accrued interest on convertible debentures, noncurrent | 1,516,023 | $ 1,486,551 |
Convertible Debenture Holder [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on convertible debentures | $ 6,750 | |
Debentures were convertible into common shares | shares | 225,000 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE (Details) | 6 Months Ended |
Jun. 30, 2021$ / shares | |
Derivative [Line Items] | |
Derivative liability, stock price per share | $ 0.0610 |
Measurement Input, Price Volatility [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input percentage | 96.8 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input percentage | 8.6 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input percentage | 0.15 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input percentage | 0.75 |
Measurement Input, Maturity [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, remaining life | 0 years |
Measurement Input, Maturity [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, remaining life | 5 years 9 months 29 days |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Integer$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Convertible debentures | $ 2,665,528 | $ 2,665,528 | $ 2,665,528 | ||
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 | ||||
Loss on derivative valuation | $ 289,050 | $ 114,660 | $ 358,264 | ||
Gain on derivative valuation | 13,131 | ||||
Derivative liability | $ 1,037,314 | $ 1,037,314 | $ 922,654 |
COMMON STOCK TRANSACTIONS (Deta
COMMON STOCK TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Accrued interest | $ 6,750 | $ 6,750 | |
Common Stock [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Common stock issued for conversion of accrued interest | 225,000 | 225,000 | |
Accrued interest | $ 225 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Shares Outstanding | 32,000 |
Average Exercise Price | $ / shares | $ 0.08 |
Remaining Life | 2 years 4 months 6 days |
Exercisable | 32,000 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price | $ / shares | $ 0.01 |
Number of Shares Outstanding | 8,000 |
Average Exercise Price | $ / shares | $ 0.01 |
Remaining Life | 3 years 9 months 7 days |
Exercisable | 8,000 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price | $ / shares | $ 0.10 |
Number of Shares Outstanding | 24,000 |
Average Exercise Price | $ / shares | $ 0.10 |
Remaining Life | 1 year 10 months 13 days |
Exercisable | 24,000 |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation | $ 0 | $ 0 | |
Options issued | 32,000 | ||
Vested weighted average exercise price | $ 0.08 | ||
Weighted average remaining life | 2 years 4 months 6 days | ||
Stock Incentive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value assumptions estimated term description | five-year | ||
Fair market value assumptions estimated volatility | 91.00% | ||
Fair market value assumptions risk-free rate | 1.61% | ||
Stock Incentive Plans [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options, granted during period | 0 | 8,000 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |||||
Cash | |||||
Total assets from discontinued operations | |||||
Accounts payable | 19,456,998 | 19,456,998 | 19,456,998 | ||
Accrued liabilities | 589,380 | 589,380 | 589,380 | ||
Accrued interest | 1,252,328 | 1,252,328 | 1,176,226 | ||
Accrued payroll and compensation expense | 131,108 | 131,108 | 131,108 | ||
Current maturities of long-term debt | 239,085 | 239,085 | 239,085 | ||
Related-party payable | 1,776,250 | 1,776,250 | 1,776,250 | ||
Short-term advances payable | 2,784,773 | 2,784,773 | 2,784,773 | ||
Total liabilities from discontinued operations | 26,229,922 | 26,229,922 | $ 26,153,820 | ||
Interest expense | (76,102) | $ (76,523) | |||
Total other expense | (76,102) | (76,523) | |||
Net loss from discontinued operations | $ (38,261) | $ (38,262) | $ (76,102) | $ (76,523) |