Replies to post #21165 on CirTran Corporation (CIRX)

[MFlores]

Playbev is not related to Playboy enterprises.

Playbev is a “consolidated variable interest entity”, which really means it is a related party to Cirtran and as a result is consolidated with Cirtran. "PlayBev still has no operations of its own and Cirtran is providing all or a majority of the operating activity of PlayBev."

“We have entered into a Manufacturing, Marketing and Distribution Agreement with PlayBev, a consolidated entity, whereby we are the vendor of record in providing initial development, promotional, marketing, and distribution services. Amounts billed to PlayBev in connection with the development and marketing of its new energy drink have eliminated in consolidation.”

Cirtran’s CEO is a managing director of Playbev and has “secured one-half of his interest in Playbev to guaranty the Cirtran debt owed to YA Global.” Playbev and Cirtran are managed by Mr. Hawatmeh. For all intents and purposes they are one and the same.

[MFlores]

On May 1, 2009, PlayBev, a consolidated variable interest entity, entered into compensation agreements with its managers, Mr. Hawatmeh and Mr. Nora. The agreed compensation consists of a monthly fee of $10,000 for each manager, reimbursement of reasonable expenses on its behalf, a car allowance for Mr. Nora of $1,000 per month to cover the cost of use, fuel and repairs. The Company has accrued $924,000 and $672,000 in compensation, which is included in related-party payables as of December 31, 2012 and 2011, respectively.

And Playbev has no operations.

From Note 4 of the recent 10K filing:

"PlayBev still has no operations of its own and the Company is providing all or a majority of the operating activity of PlayBev. These costs are being pushed through the credit facility."