Mon, Aug 26, 8:41 PM (19 days ago)
CirTran Corporation's Q2 2024 report reveals significant financial challenges and operational uncertainties. For the three months ending June 30, 2024, net sales decreased by 14.8% to $390,491, while gross profit rose slightly to $221,927 due to reduced cost of sales. However, operating expenses surged, leading to a net loss from continuing operations of $357,847, up from $204,726 in Q2 2023. For the six-month period, net sales increased by 22% to $819,882, attributed to licensing income, but net loss rose to $837,674 from $647,230 year-over-year. The company reported a working capital deficit of approximately $20 million, reflecting current liabilities of $22 million against current assets of $2 million. Cash flow from operations was marginally positive at $11,682, contrasting sharply with a cash usage of $20,815 in the prior year. The report raises substantial doubt about the company's ability to continue as a going concern, necessitating potential capital raises and operational adjustments. As of June 30, 2024, accumulated deficits totaled $59.9 million, highlighting ongoing financial distress.