CirTran Corporation reported its financial results for the first quarter of 2025, revealing a net sales increase of 7.3% to $460,816, compared to $429,391 in the same period of 2024. The company's cost of sales rose to $190,522 from $157,897, resulting in a gross profit of $270,294, slightly down from $271,494 year-over-year. Despite the increase in sales, CirTran recorded a net loss of $155,436 for the quarter, a significant reduction from the $518,088 loss reported in the first quarter of 2024. This improvement in net loss is attributed to a decrease in total other expenses, which fell to $64,999 from $433,406, primarily due to a gain on derivative valuation and a gain from debt forgiveness.
Operating expenses for the quarter were $313,567, down from $317,915 in the previous year, with employee costs increasing marginally to $128,908 from $125,229. Selling, general, and administrative expenses decreased by 4.2% to $184,659, reflecting a reduction in marketing expenditures. The company continues to face challenges, as evidenced by its accumulated deficit, which reached approximately $61.8 million as of March 31, 2025, and a working capital deficit of about $22 million.
CirTran's operational metrics indicate a focus on its core product lines, including tobacco products and related merchandise under the HUSTLER® brand. The company has maintained a consistent employee headcount of 4,945, with no significant changes reported. The firm has also expanded its geographic reach, establishing a presence in over 50 international markets, which has contributed to its revenue generation.
Looking ahead, CirTran's management has expressed concerns regarding its ability to continue as a going concern, given its history of operational losses and significant working capital deficiencies. The company plans to focus on generating revenue and reducing expenses while exploring options for raising additional capital. Future financing may come from shareholder loans or public offerings, although management acknowledges the uncertainty surrounding these efforts. The company’s ability to execute its business plan and achieve profitability remains contingent on these strategic decisions and market conditions.
About CIRTRAN CORP
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