CirTran Corporation

What they do

CirTran operates through three subsidiaries, LBC Products, CirTran Products Corp. and CirTran-Asia, Inc., making and distributing condoms, electronic cigarettes and cigars, cigars, hookahs, hookah tobacco, energy drinks, and water under the HUSTLER trademark. The business runs under a December 2019 exclusive manufacturing and distribution agreement with GloBrands, an unaffiliated licensee of the HUSTLER brand, with products reaching HUSTLER and Deja Vu clubs and retail stores in the U.S. and several foreign countries. The company reports a footprint in more than 50 international markets.

Revenue drivers

• HUSTLER-branded vapor and tobacco products — Revenues come from designing, manufacturing, and delivering licensed products under the GloBrands-HUSTLER agreement; management attributed recent sales growth to increased demand for vapor products.
• HUSTLER-branded beverages — Energy drinks and water beverages are part of the licensed HUSTLER line; the 10-K describes developing regular and sugar-free energy drink and water flavorings, but no separate beverage revenue figure is disclosed.
• HUSTLER-branded condoms and related merchandise — Condoms and related merchandise are covered by the GloBrands agreement, which lets CirTran retain 120% of cost of goods sold plus 10% of gross sales and reimburses 105% of certain media placement expenses; no standalone segment revenue is given.

Recent performance

For the three months ended June 30, 2026, net sales were $1,171,666 versus $168,435 a year earlier, an increase of 595.6%, with gross profit of $619,024 versus $84,942. The quarter produced income from operations of $160,628 compared with a loss from operations of $193,258, and net loss from continuing operations narrowed to $95,517 from $524,489. For the six months ended June 30, 2026, net sales were $2,333,019 versus $629,251, gross profit was $1,082,406, and net loss from continuing operations was $161,254 versus $632,761. The six-month period also included a $2,274,031 gain from discontinued operations from extinguishment of time-barred debt of $2,324,279. Full-year 2025 revenue was $3.1M with a net loss of $701,634.

Strategy

Management continues to build the HUSTLER-branded product line under the 2019 GloBrands manufacturing and distribution agreement, adding suppliers, tobacco import licenses, FDA 510(k) approval for condoms, and product formulations. The company is spending on samples, displays, catalogs, media, and digital support, and it leases Las Vegas facilities for offices, a showroom, and a warehouse. It plans to assemble contract consultants and support staff and to build data and reporting systems to refine products as demand changes. Funding needs are expected to require substantial additional external capital.

Risks

• Going concern and accumulated deficit — The auditors' report for the most recent fiscal years contains going-concern explanatory paragraphs, and accumulated deficit was approximately $60.2 million at June 30, 2026.
• Negative shareholder equity and heavy liabilities — At June 30, 2026 total liabilities were $25.6 million against total assets of $2.6 million, producing shareholder equity of negative $23.0 million.
• Dependence on GloBrands and the HUSTLER license — The business depends on keeping the GloBrands manufacturing and distribution agreement in good standing and on GloBrands' license to use the HUSTLER brand from the Flynt/HUSTLER organization.
• Encumbered assets and dilution risk — All assets are pledged to secure convertible indebtedness, and if that debt is not converted before April 2027 a default could result in loss of all assets; the company also states it will need substantial additional capital from external sources.

Outlook

Management points to higher vapor product demand as the reason for the current-period revenue and gross profit increase, and it expects to keep supporting sales with promotional spending. It states that continued growth, including any sizable product expansion, will require skilled management of growth and substantial external capital. The filings give no specific revenue or earnings guidance.