CirTran Corporation Reports $1.3 Million Revenue Decline and $2.5 Million Net Loss for Fiscal Year 2024

CirTran Corporation reported a revenue of $1.3 million for the fiscal year ending December 31, 2024, a decrease of 19.8% from $1.6 million in 2023. The company experienced a gross profit of $838,638, down from $1 million the previous year. The decline in revenue was attributed to reduced income from licensing novelties in international territories. Operating expenses rose significantly, with selling, general, and administrative expenses increasing by 71.3% to $873,570, primarily due to heightened marketing efforts for product launches.

The company’s net loss from continuing operations for 2024 was $2.5 million, compared to a loss of $551,699 in 2023. This substantial increase in losses was influenced by total other expenses of nearly $2 million, which included $790,589 in interest expenses and a loss of $1.2 million on derivative valuation. CirTran's accumulated deficit reached approximately $61.6 million by the end of 2024, raising concerns about its ability to continue as a going concern, as noted by the auditors.

CirTran has been focusing on its HUSTLER®-branded product line, which includes condoms, electronic tobacco products, and energy drinks, under a five-year manufacturing and distribution agreement with GloBrands. The company has established a presence in over 50 international markets and is actively working to expand its product offerings. As of December 31, 2024, CirTran employed four full-time staff and utilized 23 part-time contract workers, reflecting a lean operational structure aimed at minimizing fixed overhead costs.

The company’s operational strategy includes enhancing its manufacturing capabilities and exploring new product commercialization opportunities. CirTran has also been working on establishing partnerships with major original equipment manufacturers (OEMs) to leverage outsourcing trends in the manufacturing sector. However, the company faces significant challenges, including the need for additional capital to support its operations and growth initiatives, as well as the ongoing risks associated with its product lines and market conditions.

Looking ahead, CirTran's management plans to seek additional capital through private placements or public offerings to support its business operations. The company acknowledges the uncertainties surrounding its future performance, particularly in light of geopolitical factors and the competitive landscape in the consumer products market. The management's ability to navigate these challenges will be critical to achieving its strategic goals and improving financial stability in the coming years.