CIRTRAN CORP (CIRX) presents a deeply negative liquidation posture as of December 31, 2025. Total reported assets are $2.51 million against total liabilities of $27.62 million, yielding a book equity deficit of ($25.11) million. Under liquidation haircuts, the asset recovery deteriorates further: cash of $9,589 recovers at par; AR of $365,661 at 90-95% yields approximately $329-347K; inventory of $1.14 million at 60% yields approximately $682K; PP&E net of $4,607 at 50-70% yields approximately $2-3K; deposits on inventory of $281K and other current assets of $468K are of uncertain recovery given the company's operating status and vendor relationships. Investment in securities at cost of $248,000 is carried at cost with no disclosed fair value and no XBRL tag indicating current FMV — recovery is indeterminate but likely impaired given the 2024 impairment charge noted in prior filings. Intangibles: none separately tagged. Estimated gross liquidation asset recovery is approximately $1.3-1.5 million against face-value liabilities of $27.62 million, yielding an estimated equity recovery of approximately ($26.1) to ($26.3) million, consistent with MFFAIS CLV of ($27.3) million. The liability stack is dominated by: accrued payroll and compensation of $5.67 million (likely includes years of accrued but unpaid executive salary per employment agreement disclosures); accrued interest of $6.74 million on convertible debentures and related party notes; liabilities from discontinued operations of $4.82 million (legacy beverage business exited 2016, carrying $2.32 million in short-term advances, $1.79 million in accrued interest, with zero assets offsetting); derivative liability of $2.39 million (fair-valued convertible note embedded derivatives); related-party short-term advances of $1.40 million (surged from $22K at year-end 2024); and convertible debt of $2.55 million. Year-over-year, total liabilities increased from $25.94 million to $27.62 million (+$1.68 million), driven primarily by accruing interest, growth in related-party advances ($22K to $1.40 million), and expansion of accrued liabilities in the tobacco segment. Total assets grew from $1.53 million to $2.51 million, largely inventory and deposits accumulation supporting tobacco revenue growth. The net deficit widened from ($24.41) million to ($25.11) million. Material weakness in internal controls, going concern conditions, and accrued but unpaid executive compensation ($296K accrued in 2025 alone) compound the recovery deficit. Filing discusses the CEO employment agreement change-in-control severance provisions (30-month salary lump sum) in MD&A but does not separately tag a contingent liability for this in XBRL.
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