Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Good Heart? For Himself!
Year 2012
Salary $465,000
Bonus 66,376
Option 5,852
All Other 26,078
Total ($) $563,306
His own Employment Agreement which the Board Approved. Who was the Board at that time (Fadi and himself). So he approved his own employment agreement to protect himself.
Employment Agreements — Change in Control
On August 1, 2009, we entered into an Employment Agreement with Iehab Hawatmeh, our President, which amends and restates in their entirety the Employment Agreement between us and Mr. Hawatmeh dated July 1, 2004, and the Amendment to Employment Agreement dated January 4, 2007. The term of the employment agreement continues until August 31, 2014, and automatically extends for successive one-year periods, with an annual base salary of $345,000. The Employment Agreement also grants to Mr. Hawatmeh options to purchase a minimum of 6,000,000 shares of our stock each year, with the exercise price of the options being the market price of our common stock as of the grant date. The Employment Agreement also 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. The Employment Agreement includes additional incentive compensation as follows: a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation and amortization for the applicable quarter; bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and an annual bonus (payable quarterly) equal to 1% of the gross sales, net of returns, and allowances of all beverage products of our Company and our affiliates for the most recent fiscal year.
Pursuant to the Employment Agreement, Mr. Hawatmeh’s employment may be terminated for cause, or upon death or disability, in which event we are required to pay him any unpaid base salary and unpaid earned bonuses. In the event that Mr. Hawatmeh is terminated without cause, we are required to pay to him: (i) within 30 days following such termination, any benefit, incentive, or equity plan, program, or practice (the “Accrued Obligations”) paid when such would have been paid to him if employed; (ii) within 30 days following such termination (or on the earliest later date as may be required by Internal Revenue Code Section 409A to the extent applicable), a lump sum equal to 30 months’ annual base salary; (iii) bonuses owing under the Employment Agreement for the two-year period after the date of termination (net of any bonus amounts paid as Accrued Obligations) based on actual results for the applicable quarters and fiscal years; and (iv) within 12 months following such termination (or on the earliest later date as may be required by Internal Revenue Code Section 409A to the extent applicable), a lump sum equal to 30 months’ annual base salary; provided that if Mr. Hawatmeh is terminated without cause in contemplation of, or within one year, after a change in control, then two times such annual base salary and bonus payment amounts.
How many vendors and creditors are owed money that he refuses to pay? He takes other peoples money for his own purposes.
Good heart my a$$
That's Laughable
"A wise businessman"? No way!
Year Losses Cash Used
2007 $(4,801,900) $(4,260,618)
2008 (4,205,916) (4,594,742)
2009 (4,342,761) (485,406)
2010 (2,972,488) (688,240)
2011 (7,043,410) (320,115)
2012 (1,787,643) (165,897)
2013YTD $(186,147) 15,948
We are a party to the following MATERIAL legal proceedings.
Advanced Beauty Solutions, LLC v. CirTran Corporation, Case No. 1:08-ap-01363-GM.
YA Global Investments, LP v. CirTran Corporation, Third Judicial District Court of Salt Lake County, State of Utah, case no. 100911400.
In re Play Beverages, LLC, United States Bankruptcy Court for the District of Utah, Case No. 11-26046, and related matters.
Play Beverages, LLC, and CirTran Beverage Corp. v. Playboy Enterprises, Inc., et al., Cook County, Illinois, Case No. 2012L012181.
General Distributors, Inc. v. Iehab Hawatmeh and CirTran Beverage Corp. d/b/a Play Beverages LLC d/b/a Playboy Beverages, in the Circuit Court of the State of Oregon, for the County of Clackamas, Case No. CV 10110087.
Playtime Distributing of Oklahoma LLC v. CirTran Corporation, CirTran Beverage Corporation, and Play Beverages LLC, in the District Court of Oklahoma County, State of Oklahoma, Case No. CJ-2010-1058.
Various Creditor Claims
USS Cal Builders, Inc. v. CirTran Beverage Corp., Iehab Hawatmeh, and Fadi Nora, in the Superior Court of the State of California, County of Orange, Case No. 00425093.
RDS Touring and Promotions, Inc. v. CirTran Beverage Corp., CirTran Corp., and CirTran Media Corp., in the Superior Court of the State of California, County of Los Angeles, Case No. BC454112
American Express Travel Related Services Company, Inc. v. CirTran Corporation d/b/a Diverse Media Group and Iehab Hawatmeh, in the Third District Court, State of Utah, Salt Lake County
Ayad Jaber, Ramzy Fakhoury, Haya Enterprises, LLC v. CirTran Beverage Corporation, Play Beverages LLC, Iehab Hawatmeh, and Fadi Nora, in the Superior Court of the State of California, County of Orange, Case No. 0443807.
Globe Express Services, v. CirTran Beverage Corp., Third District Court, Salt Lake County, Case No. 110914239.
Alix Technologies v. CirTran d/b/a CirTran Beverage Corp, Third District Court, West Jordan, Case No. 110407015.
Other Matters
Redi FZE v. CirTran Beverage Corp, in the Third District Court, Salt Lake County, State of Utah, Civil No. 110915101.
United Medical Devices, LLC, v. PlaySafe, LLC, Iehab Hawatmeh, and Fadi Nora, Superior Court of the State of California, in and for the County of Los Angeles, West District, Case No. SC113081 (“UMD #1”), and PlaySafe, LLC and Play Beverages, LLC, v. United Medical Devices, LLC, United Licensing Group, Jimmy Esebag, Patrick Bertranou, and Does 1 through 50, inclusive, Superior Court of the State of California, in and for the County of Los Angeles, West District, Case No. SC113149 (“UMD #2”). UMD #2 has been consolidated into UMD #1 for further proceedings.
Seems unreasonable to me, but only time will tell how it plays out.
One key clarification from your comments – the Playbev bankrupty was related to Playbev creditors and had nothing to do with alleged “interference” by Playboy, so the bankrupty does not play a role in any of this.
From the Cirtran 2011 10K:
On April 26, 2011, three alleged creditors, LIB-MP Beverage, LLC, George Denney, and Warner K. Depuy, filed an involuntary Chapter 7 petition against Play Beverages, LLC, a consolidated entity of our subsidiary (“PlayBev”), seeking its liquidation. Thereafter, management decided that reorganizing PlayBev as a debtor-in-possession under Chapter 11, of Title 11, of the United States Bankruptcy Code, was in the best interests of PlayBev and its creditors and equity holders. Accordingly, on August 12, 2011, PlayBev consented to the entry of an order for relief in the pending involuntary bankruptcy case and immediately exercised its right under Section 706(a) of the Bankruptcy Code to convert the case to a voluntary Chapter 11 reorganization case. That same day, the court entered an Order for Relief under Chapter 11 based on PlayBev’s elections.
A buyback uses cash and Cirtran needs the cash to pay off the $23 million in current liabilities that it has, as well as the Company needs the cash for working capital needs to invest in inventory and distribution expansion.
Same goes for a cash dividend. Cirtran needs cash to operate.
A reverse split does not impact the $ value of an investors investment. One positive of both a stock split and a stock dividend is that shareholders end up owning the same proportionate amount of the company after the split.
An issue with Cirtran issuing a stock dividend is that Cirtran likely would not have enough authorized shares to do so.
On the other hand, with a reverse split the total number of outstanding shares decreases but the total number of authorized shares doesn't change.
Not likely.
In 2010 the Company sold $7.7 million of PBED. Why would damages been $100 million 3 years later? Not reasonable to assume that the Company would have sold half that amount during the past three years.
Everything is dependent on the resolution of the license status so until that it resolved no one knows.
You are not correct, that is the problem. Your misinformation is the problem because a stock split does NOT change the total $ value of the investment. It does not. Just another figment of your imagination.
People wanting their money back and making a mad dash for the door after a split has nothing to do with how a split works and the fact that their $ investment does NOT change.
It's all irrelevant if the license is deemed terminated.
I don't believe your b.s. - just another figment of your imagination.
In the multiple situations that I have either followed, or been involved with, I have never seen the math not work out that way. I have seen it. I have experienced it. There is / was no $ impact.
As I mentioned in a previous post, the only rare downside is that some reverse stock splits cause small shareholders to be "cashed out" so that they no longer own the company's shares.
Wrong. No impact on an investment. Simple math.
Example:
1 for 10 reverse split:
# of shares Stock Price $ Stock Value
Before 10,000,000 $0.0004 $4,000
After 1,000,000 $0.004 $4,000
No Public Filing to the SEC to the contrary, so until it is officially reported by the Company to the SEC there is no change.
4,500,000,000 authorized shares - same since 2011.
A reverse split does not matter - it has no impact on one's investment!
A reverse stock split reduces the number of shares and increases the share price proportionately. For example, if you own 10,000 shares of a company and it declares a one for ten reverse split, you will own a total of 1,000 shares after the split. A reverse stock split has no affect on the value of what shareholders own. Companies often split their stock when they believe the price of their stock is too low to attract investors to buy their stock.
The only rare downside is that some reverse stock splits cause small shareholders to be "cashed out" so that they no longer own the company’s shares.
Making more money than other companies in penny land? Wrong!
Cirtran is not making money. Check the 10K reports for the past 6 years.
Cirtran Corporation (CIRC)
(loss) from Operations
2007 $(4,801,900)
2008 (4,205,916)
2009 (4,342,761)
2010 (2,972,488)
2011 (7,043,410)
2012 (1,787,643)
2013 (6 mos) $(186,147)
Cirtran loses money.
As long as Mr. Iehab continues to manage the company it will continue to lose money.
If Playboy succeeds in terminating the license agreement then there will be no operations.
Does not do any good to advertise if you can't find the product anywhere. Need a solid distribution channel.
BTW, Monday Night Football rates are between $300k - $400k per 30 second spot while Sunday Night MNF rates are upwards of $500k per 30 second spot. Not going to happen.
Wrong MM. You do not know what you are talking about. You need to read the historical 10ks.
The large losses generated in 2007, 2008, 2009 & 2010 were prior to legal actions. Cirtran (Mr. Iheab) was on his "original" bus tours.
Prior to that Mr. Iehab lost money in contract manufacturing. So, no, it had nothing to do with the current Playboy litigation. Just bad management.
Net Cash Used
12 months ending 12/31/12 ($165,897)
12 months ending 12/31/11 ($320,115)
12 months ending 12/31/10 ($688,240)
12 months ending 12/31/09 ($485,406)
12 months ending 12/31/08 ($4,594,742)
12 months ending 12/31/07 ($4,260,618)
12 months ending 12/31/06 ($1,729,901)
12 months ending 12/31/05 ($1,751,744)
12 months ending 12/31/04 ($1,680,054)
12 months ending 12/31/03 ($1,123,818)
Do not underestimate Mr. Iehab's recklessness.
Cirtran Corporation (CIRC)
Income (Loss) Net Cash (Used)
2007 $- : $(4,260,618)
2008 430,320 : (4,594,742)
2009 (420,633) : (485,406)
2010 (1,252,085) : (688,240)
2011 (5,175,930) : (320,115)
2012 ( 1,076,503) : (165,897)
2013 ytd $(186,147) : 15,948
Correct. It takes years of good management (Cirtran has already pissed away 7 years) and the right distribution channels. Look at the distribution channels for the top energy drinks:
Distribution channel
Red Bull: Red Bull
Monster : Coca Cola / Anhesuer-Busch
Rockstar: Pepsi
AMP: Pepsi
NOS: Coca Cola
Full Throttle: Coca Cola
PBED: ?
Like I said before, not a chance.
Not a Chance!
2012 Sales
Red Bull $2.9 Billion
Monster $2.6 Billion
Rockstar $780 Million
AMP $300 Million
NOS $250 Million
PBED $4.2 million
The 2013 Plan incorporates 200,000,000 new options, plus the 11,800,000 still available under the 2012 plan.
The June 30, 2013 10Q stated that:
"As of June 30, 2013, a total of 446,200,000 shares of common stock had been issued from the 2012 Stock Incentive Plan, out of which a maximum of 458,000,000 can be issued."
So, using basic subtraction:
458,000,000 - 446,200,000 = 11,800,000.
Since the 2012 Stock option plan only had 11,800,000 options available for grant, a new 2013 plan was established that authorized 200,000,000 new options and incorporated the 11,800,000 balance still available under the 2012 plan.
As a result, the total options now available for issuance is 211,800,000.
my posts are primarily in response to complete inaccuracies, misleading half-truths, wrong conclusions, or outrageous expectations.
Duh!
Double the ytd sales (reported in the recent 10Q )and that becomes roughly $4 million, similar to 2012 full year numbers.
Simple math... unbelievable that basic math is so hard for you.
Increase revenue? - 2013 revenue on track to be the same as 2012, around $4 million.
Continuance of the exclusive license - not a sure thing at all.
Recent 10K:
"Playboy has sought to terminate PlayBev’s license to market Playboy-licensed energy drinks and has fought vigorously to obtain a judicial determination that the current license has been breached and is no longer in effect. We cannot assure that Playboy’s current aggressive pursuit of such a judicial determination in our pending Illinois litigation will not continue."
Need to know that the license agreement is going to continue past any possible settlement. A settlement without the license only pays off the current liabilities.
Maybe the two parties can kiss and make up. Not sure what the likelihood of that is.
To get quoted as a OTCQX, OTCQB and OTC Pink security, a company must find one broker-dealer willing to quote their stock on OTC Link® ATS. Only SEC-registered broker-dealers that are members of the Financial Industry Regulatory Authority (FINRA) can quote securities.
The OTCQB® marketplace offers informed trading for securities of smaller or developing companies that are reporting to a U.S. regulator (SEC, Bank, or Insurance). OTCQB has no minimum financial standards, therefore, it includes shells and penny stocks that are current in their disclosure to regulators.
The OTCQB marketplace has effectively replaced the FINRA operated OTC Bulletin Board (OTCBB) as the primary market for SEC and bank reporting securities that trade off the exchanges.
I suggest you check the 2012 10K-A since security ownership is not included in the 10Q.
As of Apr 15, 2013 301,533,877 shares, or 9.74% of the stock.
I say we have the SEC investigate.
The royalty accounting looks .....
Are the increased profits real?
Or is it because the Company is not accruing the playboy royalty expense while they are in litigation? The numbers definitely look funny to me. There must be some minimum royalty license amount per quarter. In 2010 and 2011 it appears that the royatly expense was at least $2,000,000. I think that the license expired in 2012. Is that when the company stopped accruing the royalty expense? That is not GAAP accounting.
Cirtran Corporation (CIRC)
Bev Sales Inc/(loss Bev Ops Royalty Expense
2007 $- $- $ (93,104)
2008 1,500,713 430,320 (827,813)
2009 1,784,028 (420,633) (745,121)
2010 7,712,492 (1,252,085) (2,257,582)
2011 2,943,921 (5,175,930) (2,142,765)
2012 4,177,624 (1,076,503) (614,721)
2013 YTD $1,907,631 ? $(37,494)
SEC - Where is the royalty expense? Someone needs to look into this.
Wrong.
The allowance is for obsolete inventory. Obsolete inventory means it is not worth anything. That is how accounting works. One would think that the beverage inventory would not be obsolete yet. Might be in the future if it does not sell.
If you look back at earlier annual filings you will see that the allowance is associated with the now defunct contract electronics business which was sold off to the CEO's brother.
Only $52,584 of inventory as of 6/30/13. That would be about 17,184 cases of product. Do not think you need a warehouse as big as California for 17,184 cases. Who looks like the fool?
As of the date of the issuance of the financials (Aug 16, 2013) Cirtran had issued 4,020,491,910 shares of common stock.
The company had issued and outstanding 3,686,791,910 and 2,541,502,289 common stock shares as of June 30, 2013 and June 30, 2012, respectively.
The 2,541,502,289 shares were outstanding as of June 30, 2012, a year ago.
As already posted 333,700,000 shares have been issued since June 30, 2013 and August 16, 2013, presumably to YAG, attorneys and others needing to be paid.
One last thing, why is there no royalty expense? Is the company not accruing for the playboy license royalty that it is claiming is still valid?
Why has the Playboy license royalty expense disappeared?
Seems like there would be a minimum royalty expense per GAAP accrual accounting. Is that because there is no official license agreement with Playboy so the Company is not accruing the expense? The company is obviously not paying Playboy for the use of the license.
Net Sales Income / (loss) from Operations Royalty Expense
2007 $ 12,399,793 $ (4,801,900) $ (93,104)
2008 13,675,545 (4,205,916) (827,813)
2009 9,732,855 (4,342,761) (745,121)
2010 9,044,902 (2,972,488) (2,257,582)
2011 3,064,438 (7,043,410) (2,142,765)
2012 4,260,417 (1,787,643) (614,721)
2013 (6 mos) $ 1,964,843 $ (186,147) $ (37,494)
The company did generate a whopping $15,948 in positive cash from operations, which is a first.
The $1,964,843 revenue number you referenced was for six months (not 3 months), so you need to multiply it by 2 to get an annual number, which calculates to just shy of $4 million.
Also, all public companies (large or small) have to report GAAP, which mandates accrual accounting. So Cirtran has to use accrual accounting.
Not sure what kind of accounting estimates Cirtran is using since most companies have more revenue than income.
Let's see on Monday.
Estimating more income than revenues is out of the ordinary.
Basic accounting: revenues - expenses = income / (loss)
Using basic math (think hard!), that would mean that the company had negative expenses in the three months ending June 30.
The company has no cash so the majority of their expenses are accrued. So what previous accrued expenses were reversed? and why?
We are supposed to find out on Monday. Let's see if the receptionist can get the accounting created by then.
Net income of $1,695,346 on revenues of approximately $1,096,691 for the three months ended June 30, 2013?
Can't wait to see how the company earns more income than the sales revenue ($365k per mo. for the last three months)
why not? because Playboy is negatively associated with nudity, sex and exploitation of women.
The lower the stock price the more shares the receive from Cirtran, and they receive payment at 85% of the lowest price during the prior 10 days of when the shares are issued.
What are their primary objectives - high rate of return.
YAG shorting the stock, knowing that they will be given stock at 85% of the lowest closing bid price during the 10 trading days prior to the payment date.