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In what public press release has he discussed alternative plans for beverage and new projects in other divisions? Nowhere.
The last I checked the public filings the other divisions have in essence been dormant for years. He does not even have facilities or equipment to do anything else. All lies.
Is Mr. Iehab's contingency plan of public record? If not, you now have insider information, which is a problem. Mr. Iehab cannot tell you something that he has not put out for public record.
It is not. CTCC is not equal to CTC.
YA Global wants to convert the outstanding convertible notes while the stock price is $.0001 (which means more shares to them) prior to any potential run-up, if that ends up happening.
Cirtran has 5 employees. They already contract out the production. No way they have bottling production facilities of their own with 5 employees.
Distribution channels they have to "buy" into.
Farky, really - .."stayed the course with one law firm .."
The most recent 10K says:
Disputed Account Payable - The Company is in disagreement with its former legal counsel over the amount due to this provider for billed services, charges, and interest expense. The Company is vigorously working with this provider to settle the outstanding balance. Management assesses the likelihood to be remote that it will not be able to settle the balance at or below the currently accrued balance.
Mr. Iehab did not want to pay former legal counsel so he found new legal counsel. That is apparently how he operates - he does not pay for services rendered.
Mr. Iehab enriching himself ($500K annual compensation) using other peoples' money and mismanaging/squandering corporate funds is evil and narcissistic. And not paying bills he owes is despicable.
Farky, actually Cirtran has been negligent (mismanagement and misuse of trademark) and as a result, Playboy has lost out on years of royalty payments.
Farky, new money with new shares simply means new dilution, and that is after the r/s. So additional dilution after the big dilution. Yep, that is "more good news" from Mr. Iehab.
New products and new business? Not likely. Cirtran has not had any new products since 2006.
Iehab will squander any new funds just like he did with the beverage - and there is nothing to show for it. He does not know how to manage - period. Look at the history of Cirtran!
The only good news is when Mr. Iehab goes away.
Protective order = a court order intended to protect a party from annoyance, undue burden or expense due to an abuse of the legal system.
As for accruals if you claim that you are authorized to sell product via the trademark, and you record revenues based on the right to use the trademark, then generally accepted accounting principles require that an associated accrual be made for the costs associated with generating those revenues. If accruals are not recorded, then the financial numbers are not complete and are misrepresented. If you do not have the right to sell the product - hence no requirement to pay Playboy - then you have no revenue that you should be recording. You cannot have it both ways!
Accruals are a separate matter from the actual payment of the liability, which obligations Playboy claims, and Playbev acknowledges, have not been paid for two years. Typical Mr. Iehab - do not pay bills that you owe.
Sparky - don't think so.
Playboy is demonstrating that:
1) Playbev never met the trademark license agreement requirement for minimum sales. Playbev has lost the trademark license.
2) Playbev is using the trademark license without authorization and has not paid appropriate royalties.
As I have posted previously, Cirtran has not even accrued the royalties, so the 10K filings are misrepresented and will need to be restated.
3) Damages should be awarded to Playboy for lost royalties.
No way Mr. Iehab will take care of shareholders. He has not in the past. He will not in the future.
How does a r/s wipe out your investment? It doesn't.
The r/s is simply a symptom of bad underlying fundamentals - no real business (trademark is going away) and poor management. Get out of the stock based on no trademark and horrible management, but not because of a r/s.
"...alternate plans for the beverage..." because Playboy is going to prove that Playbev lost the right to use the trademark and does not have a legal right to use the trademark. Playbev will have to pay for trademark infringement.
From the corporate filings it is clear that they have not paid any royalties to Playboy in a couple of years. They will have to pay up on past due royalties plus interest.
The same = $.001.
If you read the most recent 2014 filing, the stated par value is $.001. The notice for a recommended reverse split states the par value to be at $.001. The per unit par-value is not impacted or changed with the reverse-split since Cirtran has determined to keep the $.001 the same.
Par value is an arbitrarily determined number that means the stock will not be issued lower than that price. It is not the same as the market price or the actual issue price. The par value is only a portion of the total share price.
The total market price of shares is impacted by the reverse-split.
A good CPA can confirm this for you.
You are confused. You are mixing up numbers.
Here are the numbers based on the 2014 Qtr. 3 filing and after a r/s:
Current compared to R/S
Authorized Shares 4,500,000,000 vs 100,000,000
Par Value $0.001 vs $0.001
Shares Outstanding 4,498,891,910 vs 4,498,892
Current Share Price $0.0002 vs $0.20
Authorized shares simply means the total shares that can be issued overall. The total outstanding shares have to be less than the total authorized shares.
The current outstanding shares of 4,498,891,910 would be divided by 1,000 (reverse split), so that there would be 4,498,892 outstanding after the r/s. After the r/s the amount of shares that could still be issued would be the total authorized (100,000,000) less the shares outstanding after the r/s (4,498,892), or 95,501,108.
The Par value remains the same - $.001
The actual stock price goes from $.0002 to $0.20 due to the reverse split.
Wrong. Mr. Iehab's cash salary is capped by YA Global. The balance of his salary is being accrued. Read the filings.
We know he is not selling them directly - duh. If he was he would have to file, even his wife's or a trust. He still needs to report them.
He is not selling any shares to anyone. He is using the shares to pay legal fees and other miscellaneous expenses.
Read the filings. Then maybe your head will not hurt as much.
Shares are not being sold to pay for salaries. If so, Mr. Iehab would have to report that he has sold shares, which he hasn't. Shares are being sold to pay bills.
The price of the RS will not matter because Playboy will demonstrate that Playbev failed to meet the terms of the trademark contract and Playbev will be left with ZERO business operations. At that time the stock price will go to zero. So the R/S really does not matter.
Insiders have to report shares they are selling. There is no evidence the insiders are selling. The company is simply using the shares to pay bills.
When was the vote? Where are the results of the vote?
Mr. Iehab is as evil as they come - squandering company resources to feed is larger-than-life lifestyle. So if evil loses in the end, Mr. Iehab is eventually bound to lose.
On 10/17/14 Cirtran filed a notice of special meeting to approve the 1000-to-one reverse split. The Company has yet to set that date, which was initially announced to be on a weekday in December.
Filed with SEC on 10/17/14
CIRTRAN CORPORATION
4125 South 6000 West
West Valley City, Utah 84128
(801) 963-5112
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON [WEEKDAY], DECEMBER [__], 2014
The Special Meeting of Stockholders (the “Special Meeting”) of CirTran Corporation (the “Company”) will be held on [weekday], December [__], 2014, at 10:00 a.m., MST, at 4125 South 6000 West, West Valley City, Utah. The purposes of the Special Meeting are to:
(1) consider and act upon a proposed amendment to the Company’s articles of incorporation to recapitalize the Company, by reverse-splitting the outstanding common stock 1,000-to-one and reducing the authorized common stock to 100,000,000 shares, par value $0.001;
(2) consider and act upon a proposed amendment to the Company’s articles of incorporation to authorize a class of 5,000,000 shares of preferred stock and to authorize the Board to fix the number of shares and rights, preferences, and limitations of each series;
(3) consider and act upon a proposal to recess the Special Meeting on one or more occasions, if necessary or appropriate, to solicit additional proxies; and
(4) transact such other business as may properly come before the Special Meeting or at any postponement or recess thereof.
Only Company stockholders of record at the close of business on November [__], 2014, have the right to receive notice of, and to vote at, the Special Meeting and any recess thereof.
The items of business are more fully described in the Proxy Statement accompanying this Notice of Special Meeting.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDER MEETING TO BE HELD ON DECEMBER [__], 2014:
The Proxy Statement, the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, for stockholders are included with this Proxy Statement.
YOUR VOTE IS IMPORTANT. WHETHER OR NOT YOU EXPECT TO ATTEND THE SPECIAL MEETING, YOU ARE REQUESTED TO SIGN, DATE, AND RETURN THE ENCLOSED PROXY CARD AS PROMPTLY AS POSSIBLE IN THE ENCLOSED STAMPED ENVELOPE.
By Order of the Board of Directors,
Iehab Hawatmeh, Chief Executive Officer
and Chairman of the Board of Directors
LOL. Minimal chance Cirtran will keep the trademark licensing agreement. No chance competing with the big boys for distribution.
(1) Cirtran failed to meet minimum licensing agreement requirements and did not meet settlement agreement arrangements.
“"Despite its best efforts," Play Beverages acknowledges it failed to meet the minimum net sales required by its licensing agreement.’
Play Beverages, LLC, et al. v. Playboy Enterprices, Inc. et al.
As discussed in detail in Item 3. Legal Proceedings, on December 6, 2012, the bankruptcy court dismissed the PlayBev bankruptcy case that had been initiated by creditors that filed an involuntary bankruptcy petition against PlayBev in April 2011. Shortly after filing, the bankruptcy proceeding was converted into a Chapter 11 reorganization proceeding, with PlayBev acting as debtor-in-possession. Playboy initially sought to terminate its product license agreement with PlayBev, but thereafter stipulated to suspend further proceedings pending the exploration of settlement. PlayBev reached a settlement with Playboy that would have provided for a new license, conditioned on bankruptcy court approval of PlayBev’s reorganization plan, PlayBev’s payment of $2.0 million to Playboy, and other provisions, but PlayBev was unable to obtain the funding needed to pay Playboy the initial amount or otherwise implement the reorganization plan, so the plan was abandoned and the settlement agreement and the new Playboy license did not become effective. Cirtran 2012 10K
(2) Cirtran will squander all funds trying to remarket its energy drinks vs the giants. No wise investor will want to sink the funds needed to try to compete for shelf space with the likes of Red Bull ($3.4 Billion), Monster ($3.1 Billion), Rockstar ($1 Billion).
The top five distributors are Red Bull, Coke and Pepsi. They do not need another formula.
Brand - Distribution channel
Red Bull - Red Bull
Monster - Coca Cola
Rockstar - Pepsi
AMP - Pepsi
NOS - Coca Cola
Full Throttle - Coca Cola
Buyer Beware!
Who keeps the trademark? That has yet to be decided. No trademark, Cirtran left with nothing. Will have to spend millions to try to re-market. There goes all your potential award money. Nothing for investors.
Finding a replacement recipe will not be that difficult. Re-branding and marketing a recipe will cost millions.
I expect Playboy to prove that Playbev failed to meet the conditions for the license agreement and that Playbev no longer has the rights to use the rabbit head trademark.
Trademark license at the heart of the dispute.
Law360, New York (May 17, 2013, 3:16 PM ET) -- An Illinois federal judge Wednesday denied Playboy Enterprises International Inc.'s bid for a preliminary injunction against a beverage company alleged to have infringed Playboy's famous "bunny" mark, and stayed the case pending the resolution of a parallel state-court lawsuit.
U.S. District Judge Robert Gettleman said the complaint between Playboy and Play Beverages LLC was similar to a lawsuit involving the same parties filed last year in Cook County, Illinois. Both lawsuits revolve around the same disputed terms of a licensing agreement that Play Bev said allowed it to use the "bunny" mark, the court said.
Since "substantial overlap" of facts exist in the federal lawsuit and the state court lawsuit, inconsistent rulings potentially could contradict each other, Judge Gettleman said. If both lawsuits proceed at the same time, the dueling courts adjudicating the actions would be pitted in a "destructive race" to see which forum could resolve litigation first," the ruling said.
Playboy sought a court order barring Play Bev from using the rabbit head design or any similar marks on its products, as well as an order halting it from using the domain name PlayboyEnergy.com.
"At the heart of both cases is the status of the license agreement," Judge Gettleman said in the order. "The determination of whether defendants are entitled to continue to use the marks is crucial to the outcome of both actions."
The ruling puts the federal complaint on ice until the state court litigation is resolved. Playboy in February filed the federal lawsuit and moved for injunctive relief against Play Bev. The dispute relates to an underlying licensing deal Playboy and Play Bev struck seven years ago.
The companies in 2006 signed a license agreement granting Play Bev a limited right to manufacture and sell Playboy-branded energy drinks. The agreement was set to expire March 31, 2012, and contained a renewal term of five years.
When the beverage company went into Chapter 11 bankruptcy in August 2011, it agreed with Playboy to extend the existing license agreement while negotiations for a new one were still pending, the complaint said. But Play Bev allegedly failed to meet the conditions for the new license agreement after it didn't obtain investment funds to capitalize the reorganized business and confirm its Chapter 11 reorganization plan.
Subsequently, Play Bev in October 2012 sued Playboy in Illinois state court — months before Playboy filed the parallel federal lawsuit. Play Bev claimed Playboy had refused to renew the license agreement despite its good-faith obligation to do so.
Playboy said Friday that, with the ruling, the company will still be able to pursue its claims against Play Bev and CirTran Beverages Corp., which markets and distributes Playboy Energy Drink.
"Playboy looks forward to pursuing and demonstrating that PlayBev, CirTran and their principals are unauthorized in conducting the Playboy energy drink business and in unlawfully making money from the Playboy brand," the company said in an email.
What is Fadi doing these days? Anyone know?
...and Playboy keeps the right to the Trademark. Then what?
Playboy owns the rights to the trademark. There is no buying back the trademark.
What other roles?
Fadi Nora resigns just before a huge Playbev win? Not likely.
... taking the world by storm? Laughable.
If that is what you really think is happening, what is the end game for longs?
Not likely. $500K is Mr. Iehab's accrued wages and compensation expense. $389K is accrued Interest.
Should have done your due diligence back in 2005.
From the 2005 10K:
"The "going concern" paragraph in the reports of our independent registered public accounting firm for the years ended December 31, 2005 and 2004, raises doubts about our ability to continue as a going concern.
You should have known what you were getting into, so sue yourself for the decision to invest in this POS.
Get-rich-quick, lawsuit-greedy investors should have done some due diligence before investing in this company. Buyer beware.
No R/S has been approved yet as far as I can tell. As of today the number is still 225,476,100.
225,476,100 beneficial ownership of outstanding common shares as of May 22, 2014.
What family members his he paying besides himself? He is only worried about himself.
Narcissistic personality disorder, also known as NPD, is a personality disorder in which the individual has a distorted self image, unstable and intense emotions, is overly preoccupied with vanity, prestige, power and personal adequacy, lacks empathy, and has an exaggerated sense of superiority. NPD is closely associated with egocentrism - a personality characteristic in which people see themselves and their interests and opinions as the only ones that really matter.