10-Q - CIRX - Equibles

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

FORM

10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Forthe quarterly period ended ### June 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Forthe transition period from _______________ to _______________

Commission

File No. 000-49654

CirTranCorporation

(Exact name of registrant as specified in its charter)

Nevada	68-0121636
(State<br> or other jurisdiction<br><br> <br>of<br> incorporation or organization)	(IRS<br> Employer<br><br> <br>Identification<br> No.)

6360S Pecos Road, Suite 8, Las Vegas, NV 89120

(Address of principal executive offices and zip code)

(801)963-5112

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title<br> of each class	Trading<br> Symbol(s)	Name<br> of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large<br> accelerated filer ☐	Accelerated<br> filer ☐
Non-accelerated<br> filer ☒	Smaller<br> reporting company ☒
Emerging<br> growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of August

17, 2023, there were 4,945,417 shares of common stock, $0.001 par value, outstanding.

TABLE

OF CONTENTS

Item		Page
	Part I—Financial Information
1	Financial Statements (Unaudited)	3
	Consolidated<br> Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022 (Audited)	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Deficit for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023, and 2022 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
3	Quantitative and Qualitative Disclosures about Market Risk	18
4	Controls and Procedures	18
	Part II—Other Information
6	Exhibits	18
	Signatures	19

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PART

I—FINANCIAL INFORMATION

ITEM

FINANCIAL STATEMENTS

CIRTRAN

CORPORATION

CONSOLIDATED

BALANCE SHEETS

			December 31, 2022
				(Audited)
ASSETS
Current assets:
Cash	35,665		$	18,081
Inventory	902,544			816,014
Deposits on inventory	50,440			40,440
Deposits on inventory - related party	—			417,633
Deposits on inventory
Accounts receivable, net of allowance for doubtful accounts of 39,438 and 39,438, respectively	143,809			62,873
Other current assets	403,897			328,468
Total current assets	1,536,355			1,683,509
Investment in securities at cost	300,000			300,000
Right-of-use asset	—			—
Property and equipment, net of accumulated depreciation	21,540			15,018
Total assets	1,857,895		$	1,998,527
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	2,123,261		$	2,323,917
Liabilities for product returns and credits	82,091			—
Related-party payable	—			13,740
Accounts payable Related party
Short-term advances payable	58,366			58,366
Short-term advances payable - related parties	85,877			21,882
Short-term advances payable
Accrued liabilities	2,219,039			2,079,252
Accrued payroll and compensation expense	4,946,544			4,794,836
Accrued interest, current portion	5,423,474			5,214,530
Convertible debenture, current portion, net of discounts	264,284			264,284
Note payable, current portion	90,000			90,000
Note payable to stockholders	182,129			182,129
Note payable
Derivative liability	1,049,340			1,004,837
Liabilities from discontinued operations	25,418,703			25,342,601
Total current liabilities:	41,943,108			41,390,374
Deferred tax liability	50,888			50,888
Note payable, net of current portion	638,818			656,000
Convertible debenture, net of current portion, net of discount	2,015,458			1,968,310
Total liabilities	44,648,272			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	(80,028,883	)		(79,305,551	)
Total stockholders’ deficit	(42,790,377	)		(42,067,045	)
Total liabilities and stockholders’ deficit	1,857,895		$	1,998,527

All values are in US Dollars.

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CIRTRAN

CORPORATION

CONSOLIDATED

STATEMENTS OF OPERATIONS

(Unaudited)

	2023			2022			2023			2022
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net sales	$	458,511		$	526,921		$	671,920		$	1,218,689
Cost of sales		270,010			178,474			355,717			410,853
Gross profit		188,501			348,447			316,203			807,836
Operating expenses
Employee costs		137,107			134,494			273,802			267,000
Selling, general and administrative expenses		150,515			317,594			289,193			693,771
Total operating expenses		287,622			452,088			562,995			960,771
Loss from operations		(99,121	)		(103,641	)		(246,792	)		(152,935	)
Other income (expense)
Interest expense		(186,771	)		(175,081	)		(370,059	)		(348,432	)
Gain on forgiveness of debt								13,000
Gain (loss) on derivative valuation		80,042			2,104			(44,503	)		(33,949	)
Other income		1,124						1,124
Total other expense		(105,605	)		(172,977	)		(400,438	)		(382,381	)
Net loss from continuing operations		(204,726	)		(276,618	)		(647,230	)		(535,316	)
Loss from discontinued operations		(38,261	)		(38,297	)		(76,102	)		(76,102	)
Net loss	$	(242,987	)	$	(314,915	)	$	(723,332	)	$	(611,418	)
Net loss from continuing operations per common share, basic and diluted	$	(0.04	)	$	(0.04	)	$	(0.13	)	$	(0.10	)
Net loss from continuing operations per common share, basic	$	(0.04	)	$	(0.04	)	$	(0.13	)	$	(0.10	)
Net loss from discontinued operations per common share, basic and diluted	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Net loss from discontinued operations per common share, basic	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Net loss per common share, basic and diluted	$	(0.05	)	$	(0.05	)	$	(0.15	)	$	(0.12	)
Basic and diluted weighted average common shares outstanding		4,945,417			4,945,417			4,945,417			4,945,417

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CIRTRAN

CORPORATION

CONSOLIDATED

STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	Shares		Amount		Capital		Deficit			deficit
	Common Stock				Additional Paid-in		Accumulated			Total stockholders’
	Shares		Amount		Capital		Deficit			deficit
Balance, December 31, 2022		4,945,417	$	4,945	$	37,233,561	$	(79,305,551	)	$	(42,067,045	)
Net loss		—		—		—		(480,345	)		(480,345	)
Balance, March 31, 2023		4,945,417		4,945		37,233,561		(79,785,896	)		(42,547,390	)
Net loss		—		—		—		(242,987	)		(242,987	)
Balance, June 30, 2023		4,945,417	$	4,945	$	37,233,561	$	(80,028,883	)	$	(42,790,377	)
	Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
---	---	---	---	---	---	---	---	---	---	---	---	---
	Shares		Amount		Capital		Deficit			Deficit
Balance, December 31, 2021		4,945,417	$	4,945	$	37,233,561	$	(77,803,460	)	$	(40,564,954	)
Net loss		—		—		—		(296,503	)		(296,503	)
Balance, March 31, 2022		4,945,417		4,945		37,233,561		(78,099,963	)		(40,861,457	)
Net loss		—		—		—		(314,915	)		(314,915	)
Balance, June 30, 2022		4,945,417	$	4,945	$	37,233,561	$	(78,414,878	)	$	(41,176,372	)

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CIRTRAN

CORPORATION

CONSOLIDATED

STATEMENTS OF CASH FLOWS

(Unaudited)

	2023			2022
	For the Six Months Ended June 30,
	2023			2022
Cash flows from operating activities
Net loss	$	(723,332	)	$	(611,418	)
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Loss from discontinued operations		76,102			76,102
Depreciation expense		1,893			1,874
Loss on derivative valuation		44,503			33,949
Debt discount amortization		47,148			44,912
Gain on forgiveness of debt		(13,000	)		—
Amortization of right-of-use asset to rent expense		—			14,594
Changes in operating assets and liabilities:
Inventory		(86,530	)		(201,748	)
Deposits on inventory		(10,000	)		(28,771	)
Deposits on inventory - related party		417,633			(157,965	)
Accounts receivable		(80,936	)		58,623
Other current assets		(75,429	)		(18,346
Accounts payable		(201,395	)		189,696
Liabilities for product returns and credits		82,091			—
Accrued liabilities		139,786			404,753
Payments for lease liability		—			(14,594	)
Accrued payroll and compensation		151,708			96,062
Accrued interest		208,943			214,203
Net cash (used) provided by operating activities		(20,815	)		101,926
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:
Proceeds from loans payable		65,925			—
Proceeds from related-party loans		13,858			6,930
Repayments of related-party loans		(32,970	)		(107,482	)
Net Cash provided by (used in) financing activities		46,813			(100,552	)
Net change in cash		17,584			1,374
Cash, beginning of period		18,081			5,472
Cash, end of period	$	35,665		$	6,846
Supplemental disclosure of cash flow information:
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—

The

accompanying notes are an integral part of these unaudited condensed financial statements.

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CIRTRAN

CORPORATION

NOTES

TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE

30, 2023

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.

NOTE

2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basisof Presentation

Our unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “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, 2022. In the opinion of our management, all adjustments, including normal recurring adjustments necessary to present fairly our financial position, as of June 30, 2023, 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, 2023.

Useof 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.

Principlesof 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.

Useof 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.

Concentrationsof 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.

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CashEquivalents

We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of June 30, 2023 and December 31, 2022.

RevenueRecognition

We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenuefrom Contracts with Customers, for revenue recognition. Adoption of ASC 606 did not have a significant impact on our financial statements. We generate revenue by providing product design services and through the sales of tangible product. We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. We determine the transaction price associated with each deliverable based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

During

the six months ended June 30, 2023 and 2022, we recognized revenue of $23,228 and $227,404, respectively, related to the performance obligations under product development service agreements with customers. These contracts are long term in nature and revenue is recognized at certain milestone intervals upon our delivery and customer acceptance of work product related to those milestones: namely, product design, packaging, branding display, and prototypes. There were no costs to obtain the contracts identified, and therefore, no asset has been recorded for customer acquisition costs. We have not recognized impairment losses related to the receivables from these contracts during the six months ended June 30, 2023 and 2022.

Additionally,

we recognized revenues of $648,692 and $991,285 during the six months ended June 30, 2023 and 2022, respectively, related to the delivery of product to our customers. Each delivery is based on the unique contract with the customer, which is a stand-alone contract that we retain the right to accept or reject. Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time, and price. We recognize revenue under the unique contract upon fulfillment of our performance obligations therein, typically limited to the delivery of product.

AccountsReceivable

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 of June 30, 2023, the Company has recorded an allowance for doubtful accounts of $39,438.

Investmentin Securities

Our

cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at June 30, 2023 and December 31, 2022. Because we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. We evaluated the investment for impairment and determined there was none during the periods presented.

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.

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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 $50,440 (non-related-party) and $0 (related-party) as of June 30, 2023 and $40,440 (non-related-party) and $417,633 (related-party) as of December 31, 2022.

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

	June 30, 2023		December 31, 2022
Finished goods	$	844,816	$	787,671
Raw materials		57,728		28,343
Total	$	902,544	$	816,014

FairValue of Financial Instruments

ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions, defines fair value, thereby eliminating inconsistencies in guidance found in various prior accounting pronouncements, and increases disclosures surrounding fair value calculations. ASC 820-10-15 establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:

Level1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities are measured using level 3 inputs.

SCHEDULE

OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUED MEASURED ON RECURRING BASIS

	Total Fair Value at<br><br> <br>June 30, 2023		Quoted prices in active<br><br> <br>markets (Level 1)		Significant other observable<br><br> <br>inputs (Level 2)		Significant unobservable <br> inputs (Level 3)
Derivative liabilities	$	1,049,340	$	—	$	—	$	1,049,340
	Total Fair Value at<br><br> <br>December 31, 2022		Quoted prices in active<br><br> <br>markets (Level 1)		Significant other observable<br><br> <br>inputs (Level 2)		Significant unobservable<br><br> <br>inputs (Level 3)
---	---	---	---	---	---	---	---	---
Derivative liabilities	$	1,004,837	$	—	$	—	$	1,004,837

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Lossper 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 151,982,800 and 79,146,472 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded in dilutive outstanding shares for the six months ended June 30, 2023 and 2022, respectively, due to the anti-dilutive effect these would have on net loss per share. We do not currently have adequate authorized but unissued shares to satisfy our obligations should all instruments eligible to convert to common stock be exercised. We are not currently contemplating an increase in our authorized shares but may do so in the future.

RecentlyIssued 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.

NOTE

3 — GOING CONCERN

The

accompanying unaudited 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 $40,406,753 as of June 30, 2023, and a net loss from continuing operations of $647,230 for the six months ended June 30, 2023. As of June 30, 2023, we had an accumulated deficit of $80,028,883. These conditions raise substantial doubt about our ability to continue as a going concern.

Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that may be necessary if we are unable to continue as a going concern.

In the coming year, our foreseeable cash requirements will relate to development of business operations and associated expenses. We may experience a cash shortfall and be required to raise additional capital.

Historically, we have mainly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon our shareholders and us.

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

	June 30, 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		(9,344	)		(7,452	)
Property and equipment, net	$	21,540		$	15,018

We

recorded $1,893 and $1,874 of depreciation expense during the six months ended June 30, 2023 and 2022.

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NOTE

5 — RELATED-PARTY TRANSACTIONS

In 2007, we issued a 10% promissory note to a family member of our president in exchange for $300,000. The note was due on demand after May 2008. There were no repayments made during the periods presented. At June 30, 2023 and December 31, 2022, the principal amount owing on the note was $151,833 and $151,833, respectively. No demand for payment has been made.

On

March 31, 2008, we issued to this same family member, along with two other company shareholders, promissory notes totaling $315,000 ($105,000 each). Under the terms of these three $105,000 notes, we received total proceeds of $300,000 and agreed to repay the amount received plus a 5% borrowing fee. The notes were due April 30, 2008, after which they were due on demand, with interest accruing at 12% per annum. We made no payments towards the outstanding notes during the periods presented. The principal balance owing on the notes as of June 30, 2023 and December 31, 2022, was $72,466 and $72,466, respectively. No demand for payment has been made.

There

were $58,366 and $21,882 of short-term advances due to related parties as of June 30, 2023 and December 31, 2022, respectively.

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 shares of our stock each year, with an exercise price of $0.10. Mr. Hawatmeh held outstanding options to purchase 30,000 shares of common stock as of June 30, 2023 and December 31, 2022. See Note 13–Stock Options and Warrants.

As

of June 30, 2023 and December 31, 2022, we owed our president a total of $433,379 and $433,379, respectively, in unsecured advances. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans. These amounts are included in our liabilities from discontinued operations.

As

of June 30, 2023 and December 31, 2022, we owed a total of $0 and $13,740, respectively, to a related party through trade payables incurred in the normal course of business. These amounts are shown as a separate related-party payable on the balance sheet as of each reporting date.

During

the six months ended June 30, 2023, we had a net decrease in deposits with a related-party inventory supplier totaling $417,633. The related party is an entity controlled by our chief executive officer. All transactions were at a 2% markup over the related-party’s cost paid for inventory in arm’s-length transactions. Total inventory purchases from the related party were $509,114 and $341,734 during the periods ended June 30, 2023 and December 31, 2022, respectively.

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, 2023		December 31, 2022
Tax liabilities	$	547,178	$	548,811
Other		1,671,861		1,530,441
Total	$	2,219,039	$	2,079,252

Other

accrued liabilities as of June 30, 2023 and December 31, 2022, include a non-interest-bearing payable totaling $45,000 and $45,000, respectively, that is due on demand and customer deposits totaling $1,626,861and $1,437,361, respectively.

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Accrued payroll and compensation liabilities consist of the following:

SCHEDULE

OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES

	June 30, 2023		December 31, 2022
Director fees	$	135,000	$	135,000
Bonus expenses		126,858		121,858
Commissions		2,148		2,148
Consulting		280,077		500,322
Administrative payroll		4,402,461		4,035,508
Total	$	4,946,544	$	4,794,836

NOTE

7 — COMMITMENTS AND CONTINGENCIES

Litigationand 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.

PlayboyEnterprises, 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 million to Playboy against Play Beverages and CirTran Beverage Corp., our subsidiary. The court denied our motion for a new trial and awarded Playboy treble patent infringement damages and attorney’s fees. We filed a notice of appeal in July 2017 and again in March 2018. Playboy has initiated collection efforts but has recovered no funds. In September 2018, the appellate court affirmed the judgment of the circuit court. We have accrued $17,205,599 as of June 30, 2023 and December 31, 2022, related to this judgment, which is included in liabilities in discontinued operations.

DelinquentPayroll 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, and forego claiming any net operating losses for the years 2001 through 2015 or until we paid taxes on future profits in an amount equal to the taxes of $1,455,767 waived by the Offer. In June 2013, we entered into a partial installment agreement to pay $768,526 in unpaid 2009 payroll taxes, which 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. The amounts of $517,684 and $517,684 were due as June 30, 2023 and December 31, 2022, respectively.

EmploymentAgreements

We

engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended in September 2017. In July 2017, Mr. Hawatmeh had resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, the amendment to his employment agreement in September 2017 reinstated Mr. Hawatmeh to his previous positions, with a salary in an amount to be determined. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000 shares of our stock each year, with an exercise price equal to the market price of our common stock as of the grant date, for the maximum term allowed under our stock option plan; (b) provides for health insurance coverage, cell phone, car allowance, life insurance, and director and officer liability insurance, as well as any other bonus approved by our board; and (c) includes additional incentive compensation as follows: (i) a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation, and amortization for the applicable quarter; (ii) bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and (iii) an annual bonus (payable quarterly) equal to 1% of our gross sales of all products, net of returns and allowances. On January 1, 2020, we resumed accruing wages for our chief executive officer. A total of $172,500 and $345,000 was accrued during the period ended June 30, 2023 and December 31, 2022, respectively.

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We

also have an oral agreement with our other director that requires us to issue options to purchase 2,000 shares of our common stock each year.

LicenseAgreements

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.

NOTE

8 — NOTES PAYABLE

Notes payable consisted of the following:

SCHEDULE

OF NOTES PAYABLE

	June 30, 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		130,000		143,000
Total	$	720,000	$	733,000

There

is $339,978 and $300,165 of accrued interest due on these notes as of June 30, 2023 and December 31, 2022, respectively.

NOTE

9 — CONVERTIBLE DEBENTURES

Convertible debentures consisted of the following:

SCHEDULE

OF CONVERTIBLE DEBENTURES

	June 30, 2023			December 31, 2022
Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022	$	200,000		$	200,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on February 8, 2022		25,000			25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on May 30, 2022		25,000			25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on December 8, 2022		25,000			25,000
Convertible debenture, 5% stated interest rate, secured by all our assets, due on April 30, 2027		2,390,528			2,390,528
Subtotal	$	2,665,528		$	2,665,528
Less: discounts		(385,786	)		(432,934	)
Total	$	2,279,742		$	2,232,594
Less: current portion		(264,284	)		(264,284	)
Long-term portion	$	2,015,458		$	1,968,310

The

convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or the lowest bid price for the 20 trading days prior to conversion.

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As

of June 30, 2023 and December 31, 2022, we had accrued interest on the convertible debentures totaling $1,854,405 and $1,788,318, respectively.

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 with the outstanding principal and interest being

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. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our balance sheet. We measure these instruments at their estimated fair value and recognize changes in their estimated fair value in results of operations during the period of change. We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo simulation as of June 30, 2023, using the following assumptions:

SCHEDULE

OF DERIVATIVE LIABILITIES AT FAIR VALUE

Volatility		96.7% - 125.4	%
Risk-free rates		4.77% - 5.06	%
Stock price	$	0.029
Remaining life		0.25- 3.83 years

The

fair values of the derivative instruments are measured each quarter, which resulted in a loss of $44,503 and $33,949 during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, the fair market value of the derivatives aggregated $1,049,340 and $1,004,837, respectively.

NOTE

11 — STOCK OPTIONS AND WARRANTS

StockIncentive Plans

During

the six months ended June 30, 2023, 8,000 options previously granted to employees expired. During the same period we granted those same employees 8,000 new options to purchase shares of common stock. The value of the options is nominal; therefore there is no current impact to the financial statements.

As of June 30, 2023 and December 31, 2022, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end that would be recognized in subsequent periods.

As

of June 30, 2023 and December 31, 2022, there were 40,000 options issued and vested with a weighted average exercise price of $0.03 and a weighted average remaining life of 2.18 years. Outstanding options as of June 30, 2023, consisted of:

SCHEDULE

OF STOCK OPTIONS OUTSTANDING

Exercise Price
$	0.01	32,000	0.01	1.73	30,000
$	0.10	8,000	0.10	4.00	8,000
	Total	40,000	0.03	1.93	40,000

NOTE

12—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, 2023 and December 31, 2022. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations.

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Total assets and liabilities included in discontinued operations were as follows:

SCHEDULE

OF DISCONTINUED OPERATIONS

	June 30, 2023		December 31, 2022
Assets from Discontinued Operations:
Cash	$	—	$	—
Total assets from discontinued operations	$	—	$	—
Liabilities from Discontinued Operations:
Accounts payable	$	18,338,848	$	18,338,848
Accrued liabilities		589,380		589,380
Accrued interest		1,559,259		1,483,157
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	$	25,418,703	$	25,342,601

Net loss from discontinued operations for the six months ended June 30, 2023 and 2022, were comprised of the following components:

	2023			2022
	Six Months ended June 30,
	2023			2022
Other expense:
Interest expense		(76,102	)		(76,102	)
Net loss from discontinued operations	$	(76,102	)	$	(76,102	)

NOTE

13 — 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.

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ITEM

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our condensed consolidated unaudited financial statements and notes to our unaudited financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.

Overview

Based on our diversified expertise in manufacturing, marketing, distribution, and technology services in a wide variety of consumer products, including tobacco products, medical devices, and beverages, around the world, we have an innovative and consumer-focused approach to brand portfolio management, resting on a strong understanding of consumers domestically, and we have established a footprint in more than 50 key, international markets.

Since 2021, we continue under our 2019 five-year manufacturing and distribution agreement with an unrelated party to manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name.

Resultsof Operations for the Three Months Ended June 30, 2023, Compared to the Three Months Ended June 30, 2022

Sales and Cost of Sales

During the three months ended June 30, 2023 and 2022, we had net sales of $458,511 and $526,921, respectively, a decrease of $68,410 or 13%. We had cost of sales of $270,010 and $178,474, respectively, for gross profit of $188,501 and $348,447, respectively. Revenues are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution agreement. The decrease in revenue in the current period is due to a decrease in the sale of Vape products in California due to their ban on flavored tobacco.

Operating Expenses

During the three months ended June 30, 2023 and 2022, employee costs were $137,107 and $134,494, respectively, an increase of $2,613 or 1.9%. Selling, general, and administrative expenses were $150,515 and $317,594, respectively, a decrease of $167,079 or 52.6%. The decrease in operating expenses period over period was the result of selling certain tobacco products in states with lower or no excise tax.

Other Expense

Other expenses during the three months ended June 30, 2023 and 2022, consisted of $186,771 and $175,081 of interest expense and a gain of $80,042 and $2,104 on derivative valuation, respectively. We also recognized other revenue of $1,124 in the current period.

Net Loss

Our net loss from continuing operations for the three months ended June 30, 2023, was $204,726 compared to $276,618 for the three months ended June 30, 2022, a decrease of $71,892. Our net loss decreased in the current period mainly due to the decrease of our SG&A expenses.

Resultsof Operations for the Six Months Ended June 30, 2023, Compared to the Six Months Ended June 30, 2022

Sales and Cost of Sales

During the six months ended June 30, 2023 and 2022, we had net sales of $671,920 and $1,218,689, respectively, a decrease of $546,769 or 44.9%. We had cost of sales of $355,717 and $410,853, respectively, for gross profit of $316,203 and $807,836, respectively. Revenues are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution agreement. The decrease in revenue in the current period is due to a decrease in the sale of Vape products in California due to their ban on flavored tobacco.

Operating Expenses

During the six months ended June 30, 2023 and 2022, employee costs were $273,802 and $267,000, respectively, an increase of $6,802 or 2.5%. Selling, general, and administrative expenses were $289,193 and $693,771, respectively, a decrease of $404,578 or 58.3%. The decrease in operating expenses period over period was the result of selling certain tobacco products in states with lower or no excise tax.

Other Expense

Other expenses during the six months ended June 30, 2023 and 2022, consisted of $370,059 and $348,432 of interest expense and a loss of $44,503 and $33,949 on derivative valuation, respectively. We also recognized a gain on the forgiveness of debt of $13,000 and other income of $1,124, in the current period. The increase in other expenses period over period is the result of an increase to our loss on derivative valuation.

Net Loss

Our net loss from continuing operations for the six months ended June 30, 2023, was $647,230 compared to $535,316 for the six months ended June 30, 2022, an increase of $111,914 or 20.9%. Our net loss increased in the current period mainly due the decrease in our gross profit.

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Liquidityand Capital Resources

We have had a history of losses from operations, as our expenses have been greater than our revenue. Our accumulated deficit was approximately $80 million at June 30, 2023. As of June 30, 2023, we had current assets of $1.5 million and current liabilities of approximately $42 million, resulting in a working capital deficit of approximately $40 million at June 30, 2023.

Operating Activities

During the six months ended June 30, 2023, operations used $20,815 of net cash, comprised of a loss of $723,332, noncash items totaling $156,646 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $545,871. During the six months ended June 30, 2022, operations generated $101,926 of net cash, comprised of a loss from continuing operations of $535,316, noncash items totaling $95,332 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount amortization, and changes in working capital totaling $541,910.

Investing Activities

During the six months ended June 30, 2023, we used $8,414 for investing activities for the purchase of equipment. We had no investing activity in the prior period.

Financing Activities

During the six months ended June 30, 2023, financing activities provided $46,813 of cash, compared to using $100,552 of cash during the six months ended June 30, 2022. Cash used in financing consisted of repayments of related-party loans.

OurCapital Resources and Anticipated Requirements

Our monthly operating costs are approximately $35,000 per month, excluding approximately $50,000 of accruing interest expense and capital expenditures. We continue to focus on generating revenue and reducing our monthly business expenses through cost reductions and operational streamlining. We have only recently begun to generate enough cash to sustain our day-to-day operations, and we expect to access external capital resources in the future to fund any new projects we may undertake. We cannot assure that we will be successful in obtaining such capital.

If we seek infusions of capital from investors, it is unlikely that we will be able to obtain additional debt financing. If we did incur additional debt, we would be required to devote additional cash flow to servicing the debt and securing the debt with assets.

Our issuance of additional shares for equity or for conversion of debt could dilute the value of our common stock and existing stockholders’ positions.

ConvertibleDebentures and Note Payable

We currently have an outstanding amended, restated, and consolidated secured convertible debenture with Tekfine, LLC, an unrelated entity, with a maturity date of April 30, 2027, to the extent not previously converted. The amended debenture had a total outstanding principal balance of $2.4 million, with accrued interest of $1.8 million as of June 30, 2023. We also have four additional convertible debentures with Tekfine with maturity dates ranging from December 8, 2022, until December 30, 2022, totaling $275,000, unless earlier converted. The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or $0.10 (depending on the instrument) or the lowest bid price for the 20 trading days prior to conversion.

As of June 30, 2023, there is $85,877 of short-term advances due to related parties. The advances are due on demand and included in current liabilities. No demand for payment has been made.

GoingConcern

These interim unaudited financial statements have been prepared on the going concern basis, which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. Accordingly, the interim unaudited financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we not be unable to continue as a going concern.

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CriticalAccounting Policies

We have identified the policies outlined below as critical to our business operations and an understanding of our results of operations. Refer to Note 2 – Summary of Significant Accounting Policies for discussion.

ITEM

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide the information required by this item.

ITEM

CONTROLS AND PROCEDURES

Evaluationof Disclosure Controls and Procedures

As of June 30, 2023, we carried out an evaluation, under the supervision and with the participation of management, including our chief executive and financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, management concluded that our disclosure controls and procedures were not effective as of June 30, 2023, to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the periods prescribed by U.S. Securities and Exchange Commission and that such information is accumulated and communicated to management, including our chief executive and financial officer, as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls is based, in part, upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changesin Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the quarter ended June 30, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART

II—OTHER INFORMATION

ITEM

EXHIBITS

The following exhibits are filed as a part of this report:

Exhibit<br><br> <br>Number*	Title of Document	Location
Item 31	Rule 13a-14(a)/15d-14(a) Certifications
31.01	Certification of Principal Executive and Principal Financial Officer Pursuant to Rule 13a-14	This<br> filing.
Item 32	Section 1350 Certifications
32.01	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	This<br> filing.
Item 101	Interactive Data File
101.INS	Inline<br> XBRL Instance Document	This<br> filing.
101.SCH	Inline<br> XBRL Taxonomy Extension Schema	This<br> filing.
101.CAL	Inline<br> XBRL Taxonomy Extension Calculation Linkbase	This<br> filing.
101.DEF	Inline<br> XBRL Taxonomy Extension Definition Linkbase	This<br> filing.
101.LAB	Inline<br> XBRL Taxonomy Extension Label Linkbase	This<br> filing.
101.PRE	Inline<br> XBRL Taxonomy Extension Presentation Linkbase	This<br> filing.
104	Cover<br> Page Interactive Data File (embedded within the Inline XBRL document)
*	All<br> exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number<br> following the decimal indicating the document’s sequence.
---	---
**	The<br> XBRL related information in Exhibit 101 will not be deemed “filed” for purposes of Section 18 of the Securities Exchange<br> Act of 1934, as amended, or otherwise subject to liability of that section and will not be incorporated by reference into any filing<br> or other document pursuant to the Securities Act of 1933, as amended, except as is expressly set forth by specific reference in such<br> filing or document.

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SIGNATURE

PAGE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CIRTRAN CORPORATION
Dated:<br> August 21, 2023	By:	/s/ Iehab Hawatmeh
		Iehab<br> Hawatmeh, President
		Principal<br> Executive and Financial Officer

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Exhibit31.01

CERTIFICATIONOF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPALFINANCIAL OFFICER PURSUANT TO RULE 13a-14

I, Iehab Hawatmeh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CirTran Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 21, 2023

/s/ Iehab Hawatmeh
Iehab<br> Hawatmeh
Principal<br> Executive Officer and Principal Financial Officer

Exhibit32.01

CERTIFICATIONPURSUANT TO

18U.S.C. SECTION 1350,

ASADOPTED PURSUANT TO

SECTION906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CirTran Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Iehab Hawatmeh, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1)	the<br> Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the<br> information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of<br> the Company.
/s/ Iehab Hawatmeh
---
Iehab<br> Hawatmeh
Chief<br> Executive Officer
Chief<br> Financial Officer
August<br> 21, 2023