From Cirtran's 10k
As a result of these factors, our overall net loss decreased to $1,787,643 for the year ended December 31, 2012, as compared to a net loss of $7,043,410 for the year ended December 31, 2011, of which $1,539,619 and $746,147 was attributable to our non-controlling equity interest in PlayBev, during the years ended December 31, 2012 and 2011, respectively.
The 2nd half of the story …
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.
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drinks and has fought vigorously to obtain a judicial determination that the current license has been breached and is no longer in effect.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. If the Playboy licensing dispute is not resolved satisfactorily through a negotiated settlement or litigation in such proceeding, we would be required to terminate its beverage distribution activities, which are currently the source of our only revenue. Such termination may require us to cease our activities and seek protection from creditors.
It appears that the Company is trying to shift its losses to PlayBev, which has no operations. Hmm. Interesting.
Consider yourself warned.
