CirTran Corporation Reports Significant Revenue Decline and Increased Net Losses in Q2 2025

CirTran Corporation reported its financial results for the second quarter of 2025, revealing a significant decline in revenue and an increase in net losses compared to the same period in 2024. For the three months ended June 30, 2025, the company generated net sales of $168,435, a decrease of 56.9% from $390,491 in the prior year. The cost of sales also fell to $83,493 from $168,564, resulting in a gross profit of $84,942, down from $221,927. For the six months ending June 30, 2025, net sales totaled $629,251, a 23.3% decline from $819,882 in the same period last year, with a gross profit of $355,236 compared to $493,421.

The company's operating expenses for the second quarter were $278,200, down from $316,221 in the previous year, primarily due to reduced selling, general, and administrative expenses. However, total other expenses increased to $331,231 from $263,553, driven by higher interest expenses and losses on derivative valuations. Consequently, CirTran reported a net loss from continuing operations of $524,489 for the quarter, compared to a loss of $357,847 in the same quarter of 2024. For the six-month period, the net loss from continuing operations was $632,761, an improvement from a loss of $837,674 in the prior year.

In terms of operational metrics, CirTran's total current assets increased to $1,388,419 as of June 30, 2025, from $1,277,925 at the end of 2024, largely due to higher inventory levels, which rose to $836,465 from $737,223. However, the company continues to face a substantial working capital deficit of approximately $22.6 million, with current liabilities amounting to $24 million. The accumulated deficit also increased to $62.4 million, raising concerns about the company's ability to continue as a going concern.

CirTran's strategic focus remains on its manufacturing and distribution agreement for HUSTLER®-branded products, which has been in place since 2019. Despite the challenges in revenue generation, the company is actively working to streamline operations and reduce costs. Management indicated that future cash requirements will be directed towards business development and operational expenses, with potential reliance on external capital to support growth initiatives. The company has historically depended on shareholder loans and advances for financing, and it may seek additional capital through public or private offerings.

Looking ahead, CirTran's management acknowledges the need for improved financial performance and operational efficiency. The company is committed to enhancing its market presence and product offerings while navigating the challenges posed by its current financial situation. The outlook remains cautious, with the potential for further adjustments based on market conditions and operational developments.