CirTran Corporation reported significant declines in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net sales for the third quarter fell to $256,070, a decrease of 66.6% from $766,512 in the prior year. For the nine-month period, net sales were $1,075,952, down 25.2% from $1,438,432. The company attributed this decline to reduced revenue from product development service agreements, which dropped from $538,228 in 2023 to $68,709 in 2024, while revenue from product deliveries increased from $900,204 to $1,007,243.

Gross profit also saw a substantial decline, with the third quarter gross profit falling to $125,998 from $654,418 in 2023. For the nine months, gross profit decreased to $619,419 from $970,621. Despite a reduction in total operating expenses from $654,269 to $348,223 in the third quarter, the company reported a loss from operations of $(222,225), compared to a slight profit of $149 in the same quarter of 2023. The nine-month loss from operations increased to $(362,940) from $(246,643).

Net loss from continuing operations for the third quarter was $(861,272), a significant increase from $(167,073) in 2023. For the nine months, the net loss from continuing operations rose to $(1,698,946) from $(814,303). The overall net loss for the third quarter was $(899,953), compared to $(396,109) in the previous year, while the nine-month net loss increased to $(1,814,150) from $(929,087).

CirTran's cash flow situation also deteriorated, with net cash used by operating activities for the nine months ending September 30, 2024, at $(8,434), a stark contrast to the $33,008 provided in the same period of 2023. The company reported a working capital deficiency of approximately $21 million as of September 30, 2024, with total current assets of $2 million against current liabilities of approximately $23 million.

In terms of strategic developments, CirTran continues to manage its operations under challenging market conditions, with a focus on reducing costs. The company has not engaged in any investing activities during the nine months ended September 30, 2024, and has indicated a need for additional capital to support ongoing operations. Management has acknowledged that the company's disclosure controls and procedures were not effective in providing reasonable assurance for timely reporting as required by the U.S. Securities and Exchange Commission.