Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Apr. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
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 | ||
Title of 12(g) Security | Common Stock, Par Value $0.001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
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 Public Float | $ 136,527 | ||
Entity Common Stock, Shares Outstanding | 4,945,417 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 5525 | ||
Auditor Name | Fruci & Associates II, PLLC | ||
Auditor Location | Spokane, Washington |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 18,081 | |
Inventory | 815,612 | 816,014 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $39,438, respectively | 21,536 | 62,873 |
Other current assets | 441,095 | 328,468 |
Total current assets | 1,529,637 | 1,683,509 |
Investment in securities at cost | 300,000 | 300,000 |
Right-of-use asset | ||
Property and equipment, net of accumulated depreciation | 18,925 | 15,018 |
Total assets | 1,848,562 | 1,998,527 |
Current liabilities: | ||
Liabilities for product returns and credits | 8,701 | |
Accrued liabilities | 2,889,389 | 2,079,252 |
Accrued payroll and compensation expense | 5,067,213 | 4,794,836 |
Accrued interest, current portion | 5,758,603 | 5,214,530 |
Convertible debenture, current portion, net of discounts | 264,284 | 264,284 |
Derivative liability | 1,296,937 | 1,004,837 |
Liabilities from discontinued operations | 4,511,075 | 25,342,601 |
Total current liabilities: | 20,858,731 | 41,390,374 |
Deferred tax liability | 55,946 | 50,888 |
Note payable, net of current portion | 634,636 | 656,000 |
Convertible debenture, net of current portion, net of discount | 2,077,934 | 1,968,310 |
Total liabilities | 23,627,247 | 44,065,572 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Common stock, par value $0.001; 100,000,000 shares authorized; 4,945,417 shares issued and outstanding | 4,945 | 4,945 |
Additional paid-in capital | 37,233,561 | 37,233,561 |
Accumulated deficit | (59,017,191) | (79,305,551) |
Total stockholders’ deficit | (21,778,685) | (42,067,045) |
Total liabilities and stockholders’ deficit | 1,848,562 | 1,998,527 |
Nonrelated Party [Member] | ||
Current assets: | ||
Deposits on inventory | 26,983 | 40,440 |
Current liabilities: | ||
Accounts payable Related party | 625,848 | 2,323,917 |
Short-term advances payable | 172,966 | 58,366 |
Note payable | 90,000 | 90,000 |
Related Party [Member] | ||
Current assets: | ||
Deposits on inventory | 224,411 | 417,633 |
Current liabilities: | ||
Accounts payable Related party | 13,740 | |
Short-term advances payable | 21,882 | 21,882 |
Note payable | $ 151,833 | $ 182,129 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 39,438 |
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 | 4,945,417 |
Common stock, shares outstanding | 4,945,417 | 4,945,417 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 1,616,148 | $ 1,719,358 |
Cost of sales | 609,651 | 696,548 |
Gross profit | 1,006,497 | 1,022,810 |
Operating expenses | ||
Employee costs | 511,519 | 541,090 |
Selling, general and administrative expenses | 509,895 | 1,004,003 |
Total operating expenses | 1,021,414 | 1,545,093 |
Income (loss) from operations | (14,917) | (522,283) |
Other income (expense) | ||
Interest expense | (768,899) | (709,414) |
Gain on settlement of debt | 194,709 | |
Gain on forgiveness of debt | 328,384 | |
Loss on derivative valuation | (292,100) | (66,040) |
Other income | 1,124 | |
Total other expense | (536,782) | (775,454) |
Net loss from continuing operations | (551,699) | (1,297,737) |
Gain (loss) from discontinued operations | 20,831,526 | (153,466) |
Net (loss) income before income tax | 20,279,827 | (1,451,203) |
Income tax benefit (expense) | 8,533 | (50,888) |
Net (loss) income | $ 20,288,360 | $ (1,502,091) |
Net loss from continuing operations per common share, basic | $ (0.11) | $ (0.27) |
Net loss from continuing operations per common share, diluted | (0.11) | (0.27) |
Net loss from discontinued operations per common share, basic | 4.21 | (0.03) |
Net loss from discontinued operations per common share, diluted | 4.21 | (0.03) |
Net loss per common share, basic | 4.10 | (0.30) |
Net loss per common share, diluted | $ 4.10 | $ (0.30) |
Basic weighted average common shares outstanding | 4,945,417 | 4,945,417 |
Diluted weighted average common shares outstanding | 4,945,417 | 4,945,417 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2021 | $ 4,945 | $ 37,233,561 | $ (77,803,460) | $ (40,564,954) |
Balance, shares at Dec. 31, 2021 | 4,945,417 | |||
Net income (loss) | (1,502,091) | (1,502,091) | ||
Balance at Dec. 31, 2022 | $ 4,945 | 37,233,561 | (79,305,551) | (42,067,045) |
Balance, shares at Dec. 31, 2022 | 4,945,417 | |||
Net income (loss) | 20,288,360 | 20,288,360 | ||
Balance at Dec. 31, 2023 | $ 4,945 | $ 37,233,561 | $ (59,017,191) | $ (21,778,685) |
Balance, shares at Dec. 31, 2023 | 4,945,417 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ 20,288,360 | $ (1,502,091) |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||
(Gain) loss from discontinued operations | (20,831,526) | 153,466 |
Depreciation expense | 4,507 | 3,881 |
Loss on derivative valuation | 292,100 | 66,040 |
Debt discount amortization | 109,624 | 91,689 |
Gain on settlement of debt | (194,709) | |
Gain on forgiveness of debt | (328,384) | |
Amortization of right-of-use asset to rent expense | 22,291 | |
Changes in operating assets and liabilities: | ||
Inventory | 402 | (278,053) |
Deposits on inventory | 13,457 | (28,801) |
Deposits on inventory - related party | 193,222 | (330,591) |
Accounts receivable | 41,337 | 149,371 |
Other current assets | (112,627) | (60,648) |
Accounts payable | (1,188,715) | 399,949 |
Liabilities for product returns and credits | 8,701 | |
Accrued liabilities | 810,136 | 644,758 |
Payments for lease liability | (22,291) | |
Accrued payroll and compensation | 272,377 | 465,133 |
Accrued interest | 544,073 | 334,313 |
Accrued tax liability | 5,058 | 50,888 |
Net cash (used) provided by operating activities | (72,607) | 159,304 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8,414) | |
Net Cash used in investing activities | (8,414) | |
Cash flows from financing activities: | ||
Repayments of loans payable | (4,182) | |
Proceeds from related-party loans | 114,600 | 8,137 |
Repayments of related-party loans | (47,478) | (154,832) |
Net Cash provided by (used in) financing activities | 62,940 | (146,695) |
Net change in cash | (18,081) | 12,609 |
Cash, beginning of year | 18,081 | 5,472 |
Cash, end of year | 18,081 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | ||
Cash paid for income taxes |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
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 | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include the accounts of the company and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran Asia, Inc. Intercompany accounts and transactions have been eliminated in consolidation. 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. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may exceed the Federal Deposit Insurance Corporation insurable limit. Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers During the years ended December 31, 2023 and 2022, we recognized revenue of $ 410,000 60,067 Additionally, we recognized revenues of $ 1,206,148 1,659,291 The Company also recognizes revenue from advanced royalty payments per the terms in its Manufacturing and Distribution Agreement with one of its distributors. The royalty to be received is calculated based on 8 % of gross sales, with an annual minimum royalty paid upfront per calendar year for the term of the contract. There is a non-refundable $ 350,000 Minimum Royalty for FY 2023. The Company recognizes the minimum royalty and corresponding expense at the time of receipt. Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount receivable to its net realizable value when needed. As December 31, 2023 and 2022, the Company has recorded an allowance for doubtful accounts of $ 0 39,438 Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $ 300,000 20 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. 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 total $ 26,983 224,411 40,440 417,633 On most of tobacco related products, the Company pays in advance for Federal Excise Taxes and State Excise Taxes prior to receiving product. The Company accrues those taxes on its balance sheet and expenses them per-unit basis as sold. Inventory balances consisted of the following: SCHEDULE OF INVENTORY December 31, 2023 December 31, 2022 Finished goods $ 772,589 $ 787,671 Raw materials 43,023 28,343 Total $ 815,612 $ 816,014 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 prices Significant Significant inputs(Level 3) Derivative liabilities $ 1,296,937 $ — $ — $ 1,296,937 Total Fair Quoted prices Significant Significant Derivative liabilities $ 1,004,837 $ — $ — $ 1,004,837 Loss per Share Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted loss per share 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 approximately 216,834,000 106,623,280 Income Taxes Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards. The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond our control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was required to be reported. Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements properly reflect the change. In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 — GOING CONCERN The accompanying consolidated financial statements have been prepared in conformity with US GAAP, which contemplates our continuation as a going concern. We had a working capital deficiency of $ 19,329,094 543,166 59,017,191 Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that may be necessary if we are unable to continue as a going concern. In the coming year, our foreseeable cash requirements will relate to development of business operations and associated expenses. We may experience a cash shortfall and be required to raise additional capital. Historically, we have mainly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon our shareholders and us. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
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. Property and equipment and estimated service lives consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES December 31, 2023 December 31, 2022 Useful Life (years) Furniture and office equipment $ 12,212 $ 3,798 5 10 Vehicles 18,672 18,672 3 7 Total 30,884 22,470 Less: accumulated depreciation (11,959 ) (7,452 ) Property and equipment, net $ 18,925 $ 15,018 We recorded $ 4,508 3,881 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5 — RELATED PARTY TRANSACTIONS In 2007, we issued a 10 300,000 151,833 151,833 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 12 72,466 72,466 There were $ 21,882 21,882 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 0.10 30,000 As of December 31, 2023 and 2022, we owed our president a total of $ 433,379 433,379 5 As of December 31, 2023 and 2022, we owed a total of $ 0 13,740 During the year ended December 31, 2023, we had a net decrease in deposits with a related-party inventory supplier totaling $ 193,222 2 837,618 341,734 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, December 31, Tax liabilities $ 37,228 $ 548,811 Accrued Royalty - Globrands LLC 1,092,915 — Other 1,759,246 1,530,441 Total $ 2,889,389 $ 2,079,252 Other accrued liabilities as of December 31, 2023 and 2022, include a non-interest-bearing payable totaling $ 45,000 45,000 1,735,109 1,437,361 Accrued payroll and compensation liabilities consist of the following: SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES December 31, December 31, Director fees $ 135,000 $ 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Consulting 438,822 500,322 Administrative payroll 4,369,385 4,035,508 Total $ 5,067,213 $ 4,794,836 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
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, except where we believe collection or enforcement of the judgments is barred by the applicable statute of limitations, in which case the liabilities have been eliminated. 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 18,878,359 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 five years 1,455,767 768,526 5 512,520 5,164 517,684 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 1 345,000 345,000 We also have an oral agreement with our other director that requires us to issue options to purchase 2,000 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 | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable | |
NOTES PAYABLE | NOTE 8 — NOTES PAYABLE Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE December 31, 2023 December 31, 2022 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 134,636 143,000 Total $ 724,636 $ 733,000 There is $ 366,626 313,764 |
CONVERTIBLE DEBENTURES
CONVERTIBLE DEBENTURES | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBENTURES | NOTE 9 — CONVERTIBLE DEBENTURES Convertible debentures consisted of the following: SCHEDULE OF CONVERTIBLE DEBENTURES December 31, 2023 December 31, 2022 Convertible debenture, 5 May 30, 2022 $ 200,000 $ 200,000 Convertible debenture, 5 February 8, 2022 25,000 25,000 Convertible debenture, 5 May 30, 2022 25,000 25,000 Convertible debenture, 5 December 8, 2022 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 (323,310 ) (432,934 ) Total $ 2,342,218 $ 2,232,594 Less: current portion (264,284 ) (264,284 ) Long-term portion $ 2,077,934 $ 1,968,310 The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $ 100 20 As of December 31, 2023 and 2022, we had accrued interest on the convertible debentures totaling $ 1,921,590 1,788,318 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
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 SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE Volatility 119.8 127.6 % Risk-free rates 4.60 4.79 % Stock price $ 0.023 Remaining life 0.25 3.33 The fair values of the derivative instruments are measured each quarter, which resulted in a loss of $ 292,100 66,040 1,296,937 1,004,837 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11 — INCOME TAXES We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income, the company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period. The U.S. federal income tax rate of 21 We have not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended December 31, 2023 and 2022, applicable under FASB ASC 740, Income Taxes As of December 31, 2023 and 2022, we had net operating loss carryforwards for tax reporting purposes of approximately $ 3.8 21.4 8.9 1.9 As of December 31, 2022, we recognized an accrual for tax liability expense of $ 50,888 As of December 31, 2023, we recognized a tax benefit of $ 8,533 SCHEDULE OF NET DEFERRED TAX ASSETS 2023 2022 Deferred Tax Assets: NOL Carryover $ 1,177,300 $ 5,461,800 Less valuation allowance (1,177,300 ) (5,461,800 ) Net deferred tax assets $ — $ — The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2023 and 2022 due to the following: SCHEDULE OF RECONCILIATION OF INCOME TAXES COMPUTED AT STATUTORY RATE 2023 2022 Book income (loss) $ 4,260,600 $ (315,400 ) Change in payroll accruals 57,200 74,200 Allowance for doubtful accounts (8,300 ) 8,300 Amortization of debt discount 23,000 19,255 Change in derivative liability 61,300 13,868 Valuation allowance (4,393,800 ) 199,777 Income tax expense $ — $ — |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCK OPTIONS AND WARRANTS | NOTE 12 — STOCK OPTIONS AND WARRANTS Stock Incentive Plans During the year ended December 31, 2023, 8,000 8,000 As of December 31, 2023 and 2022, we had no As of December 31, 2023 and 2022, there were 40,000 0.03 1.68 SCHEDULE OF STOCK OPTIONS OUTSTANDING Exercise Price Count Average Exercise Remaining Life Exercisable $ 0.01 32,000 0.01 2.48 32,000 $ 0.10 8,000 0.10 4.75 8,000 Total 40,000 0.03 2.94 40,000 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and 2022. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations. As of December 31, 2023, the Company received legal representation that the judgement related to Play Beverages, LLC, (Note 7) can no longer be enforced after seven years, as a result, the Company has recognized a gain from discontinued operations of $ 18,873,932 Total assets and liabilities included in discontinued operations were as follows: SCHEDULE OF DISCONTINUED OPERATIONS December 31, 2023 December 31, 2022 Assets from Discontinued Operations: Cash $ — $ — Total assets from discontinued operations $ — $ — Liabilities from Discontinued Operations: Accounts payable $ 283,818 $ 18,338,848 Accrued liabilities 58,184 589,380 Accrued interest 1,636,624 1,483,157 Accrued payroll and compensation expense 122,864 131,108 Current maturities of long-term debt 239,085 239,085 Related-party payable — 1,776,250 Short-term advances payable 2,170,500 2,784,773 Total liabilities from discontinued operations $ 4,511,075 $ 25,342,601 Net gain (loss) from discontinued operations for the years ended December 31, 2023 and 2022, were comprised of the following components: 2023 2022 Years ended December 31, 2023 2022 Other income (expense): Gain on settlement 18,878,359 — Gain on Forgiveness of Debt 2,106,633 — Interest expense (153,466 ) (153,466 ) Net gain (loss) from discontinued operations $ 20,831,526 $ (153,466 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10), management has performed an evaluation of subsequent events through the date that the unaudited consolidated financial statements were issued and has determined that it does not have any material subsequent events to disclose in these unaudited consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the company and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran Asia, Inc. Intercompany accounts and transactions have been eliminated in consolidation. |
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. |
Concentrations of Credit Risk | Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may exceed the Federal Deposit Insurance Corporation insurable limit. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no |
Revenue Recognition | Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers During the years ended December 31, 2023 and 2022, we recognized revenue of $ 410,000 60,067 Additionally, we recognized revenues of $ 1,206,148 1,659,291 The Company also recognizes revenue from advanced royalty payments per the terms in its Manufacturing and Distribution Agreement with one of its distributors. The royalty to be received is calculated based on 8 % of gross sales, with an annual minimum royalty paid upfront per calendar year for the term of the contract. There is a non-refundable $ 350,000 Minimum Royalty for FY 2023. The Company recognizes the minimum royalty and corresponding expense at the time of receipt. |
Accounts Receivable | Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount receivable to its net realizable value when needed. As December 31, 2023 and 2022, the Company has recorded an allowance for doubtful accounts of $ 0 39,438 |
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 |
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. 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 total $ 26,983 224,411 40,440 417,633 On most of tobacco related products, the Company pays in advance for Federal Excise Taxes and State Excise Taxes prior to receiving product. The Company accrues those taxes on its balance sheet and expenses them per-unit basis as sold. Inventory balances consisted of the following: SCHEDULE OF INVENTORY December 31, 2023 December 31, 2022 Finished goods $ 772,589 $ 787,671 Raw materials 43,023 28,343 Total $ 815,612 $ 816,014 |
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 prices Significant Significant inputs(Level 3) Derivative liabilities $ 1,296,937 $ — $ — $ 1,296,937 Total Fair Quoted prices Significant Significant Derivative liabilities $ 1,004,837 $ — $ — $ 1,004,837 |
Loss per Share | Loss per Share Basic loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted loss per share 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 approximately 216,834,000 106,623,280 |
Income Taxes | Income Taxes Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards. The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond our control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was required to be reported. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements properly reflect the change. In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF INVENTORY | Inventory balances consisted of the following: SCHEDULE OF INVENTORY December 31, 2023 December 31, 2022 Finished goods $ 772,589 $ 787,671 Raw materials 43,023 28,343 Total $ 815,612 $ 816,014 |
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS | SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS Total Fair Quoted prices Significant Significant inputs(Level 3) Derivative liabilities $ 1,296,937 $ — $ — $ 1,296,937 Total Fair Quoted prices Significant Significant Derivative liabilities $ 1,004,837 $ — $ — $ 1,004,837 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 December 31, 2022 Useful Life (years) Furniture and office equipment $ 12,212 $ 3,798 5 10 Vehicles 18,672 18,672 3 7 Total 30,884 22,470 Less: accumulated depreciation (11,959 ) (7,452 ) Property and equipment, net $ 18,925 $ 15,018 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED LIABILITIES | Accrued liabilities consist of the following: SCHEDULE OF ACCRUED LIABILITIES December 31, December 31, Tax liabilities $ 37,228 $ 548,811 Accrued Royalty - Globrands LLC 1,092,915 — Other 1,759,246 1,530,441 Total $ 2,889,389 $ 2,079,252 |
SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES | Accrued payroll and compensation liabilities consist of the following: SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES December 31, December 31, Director fees $ 135,000 $ 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Consulting 438,822 500,322 Administrative payroll 4,369,385 4,035,508 Total $ 5,067,213 $ 4,794,836 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable | |
SCHEDULE OF NOTES PAYABLE | Notes payable consisted of the following: SCHEDULE OF NOTES PAYABLE December 31, 2023 December 31, 2022 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 134,636 143,000 Total $ 724,636 $ 733,000 |
CONVERTIBLE DEBENTURES (Tables)
CONVERTIBLE DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF CONVERTIBLE DEBENTURES | Convertible debentures consisted of the following: SCHEDULE OF CONVERTIBLE DEBENTURES December 31, 2023 December 31, 2022 Convertible debenture, 5 May 30, 2022 $ 200,000 $ 200,000 Convertible debenture, 5 February 8, 2022 25,000 25,000 Convertible debenture, 5 May 30, 2022 25,000 25,000 Convertible debenture, 5 December 8, 2022 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 (323,310 ) (432,934 ) Total $ 2,342,218 $ 2,232,594 Less: current portion (264,284 ) (264,284 ) Long-term portion $ 2,077,934 $ 1,968,310 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE | SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE Volatility 119.8 127.6 % Risk-free rates 4.60 4.79 % Stock price $ 0.023 Remaining life 0.25 3.33 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF NET DEFERRED TAX ASSETS | SCHEDULE OF NET DEFERRED TAX ASSETS 2023 2022 Deferred Tax Assets: NOL Carryover $ 1,177,300 $ 5,461,800 Less valuation allowance (1,177,300 ) (5,461,800 ) Net deferred tax assets $ — $ — |
SCHEDULE OF RECONCILIATION OF INCOME TAXES COMPUTED AT STATUTORY RATE | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2023 and 2022 due to the following: SCHEDULE OF RECONCILIATION OF INCOME TAXES COMPUTED AT STATUTORY RATE 2023 2022 Book income (loss) $ 4,260,600 $ (315,400 ) Change in payroll accruals 57,200 74,200 Allowance for doubtful accounts (8,300 ) 8,300 Amortization of debt discount 23,000 19,255 Change in derivative liability 61,300 13,868 Valuation allowance (4,393,800 ) 199,777 Income tax expense $ — $ — |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | SCHEDULE OF STOCK OPTIONS OUTSTANDING Exercise Price Count Average Exercise Remaining Life Exercisable $ 0.01 32,000 0.01 2.48 32,000 $ 0.10 8,000 0.10 4.75 8,000 Total 40,000 0.03 2.94 40,000 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 December 31, 2022 Assets from Discontinued Operations: Cash $ — $ — Total assets from discontinued operations $ — $ — Liabilities from Discontinued Operations: Accounts payable $ 283,818 $ 18,338,848 Accrued liabilities 58,184 589,380 Accrued interest 1,636,624 1,483,157 Accrued payroll and compensation expense 122,864 131,108 Current maturities of long-term debt 239,085 239,085 Related-party payable — 1,776,250 Short-term advances payable 2,170,500 2,784,773 Total liabilities from discontinued operations $ 4,511,075 $ 25,342,601 Net gain (loss) from discontinued operations for the years ended December 31, 2023 and 2022, were comprised of the following components: 2023 2022 Years ended December 31, 2023 2022 Other income (expense): Gain on settlement 18,878,359 — Gain on Forgiveness of Debt 2,106,633 — Interest expense (153,466 ) (153,466 ) Net gain (loss) from discontinued operations $ 20,831,526 $ (153,466 ) |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Finished goods | $ 772,589 | $ 787,671 |
Raw materials | 43,023 | 28,343 |
Total | $ 815,612 | $ 816,014 |
SCHEDULE OF FINANCIAL ASSETS AN
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Platform Operator, Crypto-Asset [Line Items] | ||
Derivative liabilities | $ 1,296,937 | $ 1,004,837 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Derivative liabilities | $ 1,296,937 | $ 1,004,837 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
[custom:PercentageOfRoyaltyGrossSales] | 8% | |
Royalty Expense | $ 350,000 | |
Allowance for doubtful accounts receivable | 0 | 39,438 |
Investment owned at cost | $ 300,000 | $ 300,000 |
Potentially issuable common shares | 216,834,000 | 106,623,280 |
Nonrelated Party [Member] | ||
Product Information [Line Items] | ||
Deposits on inventory related party | $ 26,983 | $ 40,440 |
Related Party [Member] | ||
Product Information [Line Items] | ||
Deposits on inventory related party | $ 224,411 | 417,633 |
Maximum [Member] | Digital Multi Media Technology [Member] | ||
Product Information [Line Items] | ||
Equity ownership percentage | 20% | |
Product Development Service [Member] | ||
Product Information [Line Items] | ||
Revenue recognized | $ 410,000 | 60,067 |
Product Delivery to Customers [Member] | ||
Product Information [Line Items] | ||
Revenue recognized | $ 1,206,148 | $ 1,659,291 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Working capital deficiency | $ 19,329,094 | |
Net loss from continuing operations | 543,166 | |
Accumulated deficit | $ 59,017,191 | $ 79,305,551 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 30,884 | $ 22,470 |
Less: accumulated depreciation | (11,959) | (7,452) |
Property and equipment, net | 18,925 | 15,018 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 12,212 | 3,798 |
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 | $ 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 ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 4,508 | $ 3,881 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |||
Mar. 31, 2008 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2007 | |
Related Party Transaction [Line Items] | ||||
Proceeds from related party debt | $ 114,600 | $ 8,137 | ||
Notes payable | $ 724,636 | 733,000 | ||
Number of options granted to purchase shares | 2,000 | |||
Inventory related party | $ 193,222 | |||
Iehab Hawatmeh [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, rate | 5% | |||
Iehab Hawatmeh [Member] | Employee Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of options granted to purchase shares | 6,000 | |||
Share issued price per share | $ 0.10 | |||
Number of stock options outstanding | 30,000 | |||
Chief Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Inventory percentage | 2% | |||
Inventory purchase related party | $ 837,618 | 341,734 | ||
Promissory Notes Payable [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument interest rate | 12% | |||
Principal amount | 72,466 | 72,466 | ||
Notes payable | $ 315,000 | |||
proceeds from notes payable | $ 300,000 | |||
Related party transaction, rate | 5% | |||
Promissory Notes Payable [Member] | Shareholder Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes payable | $ 105,000 | |||
Promissory Notes Payable [Member] | Shareholders Three [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes payable | $ 105,000 | |||
President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument interest rate | 10% | |||
Proceeds from related party debt | $ 300,000 | |||
Principal amount | 151,833 | 151,833 | ||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 21,882 | 21,882 | ||
Accounts payable related party | 13,740 | |||
Related Party [Member] | Iehab Hawatmeh [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 433,379 | $ 433,379 |
SCHEDULE OF ACCRUED LIABILITIES
SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Tax liabilities | $ 37,228 | $ 548,811 |
Accrued Royalty - Globrands LLC | 1,092,915 | |
Other | 1,759,246 | 1,530,441 |
Total | $ 2,889,389 | $ 2,079,252 |
SCHEDULE OF ACCRUED PAYROLL AND
SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Director fees | $ 135,000 | $ 135,000 |
Bonus expenses | 121,858 | 121,858 |
Commissions | 2,148 | 2,148 |
Consulting | 438,822 | 500,322 |
Administrative payroll | 4,369,385 | 4,035,508 |
Total | $ 5,067,213 | $ 4,794,836 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Other accrued liabilities | $ 45,000 | $ 45,000 |
Advance customer deposits | $ 1,735,109 | $ 1,437,361 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Oct. 31, 2016 | Jun. 30, 2013 | Nov. 30, 2004 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||||||
Gain from discontinued operations | $ 18,878,359 | |||||
Number of options granted to purchase shares | 2,000 | |||||
Employment Agreements [Member] | President and Chief Executive Officer [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of options granted to purchase shares | 6,000 | |||||
Quarterly bonus as stated percentage of earnings before interest, taxes, depreciation and amortization for the applicable quarter | 5% | |||||
Bonus percentage of net purchase price of acquisitions completed | 1% | |||||
Annual bonus percentage of gross sales, net of returns and allowances | 1% | |||||
Accrued wages | $ 345,000 | 345,000 | ||||
Delinquent Payroll Taxes Interest and Penalties [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Payment for acceptance | $ 500,000 | |||||
Payment of tax term | 5 years | |||||
Amount of taxes waived | $ 1,455,767 | |||||
Accrued payroll taxes | $ 768,526 | |||||
Internal revenue service rate of cash deposit | 5% | |||||
Loss contingency accrual | 512,520 | |||||
Delinquent Payroll Taxes Interest and Penalties [Member] | Related Party [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Due to related party | 5,164 | $ 517,684 | ||||
Playboy Enterprises, Inc. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | $ 6,600,000 | |||||
Gain from discontinued operations | $ 18,878,359 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 134,636 | 143,000 |
Total | $ 724,636 | $ 733,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Accrued interest | $ 366,626 | $ 313,764 |
SCHEDULE OF CONVERTIBLE DEBENTU
SCHEDULE OF CONVERTIBLE DEBENTURES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Subtotal | $ 2,665,528 | $ 2,665,528 |
Less: discounts | (323,310) | (432,934) |
Total | 2,342,218 | 2,232,594 |
Less: current portion | (264,284) | (264,284) |
Long-term portion | 2,077,934 | 1,968,310 |
Convertible Debt 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 |
SCHEDULE OF CONVERTIBLE DEBEN_2
SCHEDULE OF CONVERTIBLE DEBENTURES (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Convertible Debt One [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5% | 5% |
Convertible debenture, maturity date | May 30, 2022 | May 30, 2022 |
Convertible Debenture Two [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5% | 5% |
Convertible debenture, maturity date | Feb. 08, 2022 | Feb. 08, 2022 |
Convertible Debenture Three [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5% | 5% |
Convertible debenture, maturity date | May 30, 2022 | May 30, 2022 |
Convertible Debenture Four [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5% | 5% |
Convertible debenture, maturity date | Dec. 08, 2022 | Dec. 08, 2022 |
Convertible Debenture Five [Member] | ||
Short-Term Debt [Line Items] | ||
Convertible debenture, stated interest rate | 5% | 5% |
Convertible debenture, maturity date | Apr. 30, 2027 | Apr. 30, 2027 |
CONVERTIBLE DEBENTURES (Details
CONVERTIBLE DEBENTURES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Integer $ / shares | Dec. 31, 2022 USD ($) | |
Short-Term Debt [Line Items] | ||
Convertible stock price trigger | $ / shares | $ 100 | |
Debt convertible, threshold trading days | Integer | 20 | |
Convertible Debentures [Member] | ||
Short-Term Debt [Line Items] | ||
Accrued interest | $ | $ 1,921,590 | $ 1,788,318 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Measurement Input, Price Volatility [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input | 119.8 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input | 127.6 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input | 4.60 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input | 4.79 |
Measurement Input, Share Price [Member] | |
Derivative [Line Items] | |
Derivative liability, measurement input | 0.023 |
Measurement Input, Maturity [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative liability, remaining life | 3 months |
Measurement Input, Maturity [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative liability, remaining life | 3 years 3 months 29 days |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Convertible debentures | $ 2,665,528 | $ 2,665,528 |
Terms of conversion feature description | 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 | $ 100 | |
Loss on derivative valuation | $ (292,100) | (66,040) |
Derivative liabilities current | $ 1,296,937 | $ 1,004,837 |
SCHEDULE OF NET DEFERRED TAX AS
SCHEDULE OF NET DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets: | ||
NOL Carryover | $ 1,177,300 | $ 5,461,800 |
Less valuation allowance | (1,177,300) | (5,461,800) |
Net deferred tax assets |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAXES COMPUTED AT STATUTORY RATE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Book income (loss) | $ 4,260,600 | $ (315,400) |
Change in payroll accruals | 57,200 | 74,200 |
Allowance for doubtful accounts | (8,300) | 8,300 |
Amortization of debt discount | 23,000 | 19,255 |
Change in derivative liability | 61,300 | 13,868 |
Valuation allowance | (4,393,800) | 199,777 |
Income tax expense |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2019 | |
Federal income tax rate | 21% | ||
Operating loss carryforwards | $ 3,800,000 | $ 21,400,000 | |
Accrual for tax liability expense | 50,888 | ||
Income tax expense benefit | $ 8,533 | $ (50,888) | |
Four Subsidiaries [Member] | |||
Operating loss carryforwards | $ 8,900,000 | ||
Change in deferred tax asset | $ 1,900,000 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Count | 40,000 |
Average Exercise | $ / shares | $ 0.03 |
Remaining Life | 2 years 11 months 8 days |
Exercisable | 40,000 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price | $ / shares | $ 0.01 |
Count | 32,000 |
Average Exercise | $ / shares | $ 0.01 |
Remaining Life | 2 years 5 months 23 days |
Exercisable | 32,000 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price | $ / shares | $ 0.10 |
Count | 8,000 |
Average Exercise | $ / shares | $ 0.10 |
Remaining Life | 4 years 9 months |
Exercisable | 8,000 |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Option to purchase shares | 2,000 | |
Unrecognized compensation | $ 0 | $ 0 |
Options issued and vested | 40,000 | 40,000 |
Weighted average exercise price | $ 0.03 | $ 0.03 |
Weighted average remaining life | 1 year 8 months 4 days | 1 year 8 months 4 days |
Stock Incentive Plans [Member] | Employees [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options Expired | 8,000 | |
Option to purchase shares | 8,000 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets from Discontinued Operations: | ||
Cash | ||
Total assets from discontinued operations | ||
Liabilities from Discontinued Operations: | ||
Accounts payable | 283,818 | 18,338,848 |
Accrued liabilities | 58,184 | 589,380 |
Accrued interest | 1,636,624 | 1,483,157 |
Accrued payroll and compensation expense | 122,864 | 131,108 |
Current maturities of long-term debt | 239,085 | 239,085 |
Related-party payable | 1,776,250 | |
Short-term advances payable | 2,170,500 | 2,784,773 |
Total liabilities from discontinued operations | 4,511,075 | 25,342,601 |
Other income (expense): | ||
Gain on settlement | 18,878,359 | |
Gain on Forgiveness of Debt | 2,106,633 | |
Interest expense | (153,466) | (153,466) |
Net gain (loss) from discontinued operations | $ 20,831,526 | $ (153,466) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Gain (loss) on discontinued operations | $ 18,878,359 | |
Play Beverages LLC [Member] | ||
Gain (loss) on discontinued operations | $ 18,873,932 |