CirTran Corporation (CIRX)

[MFlores]

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.