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Form 10-Q Crown Equity Holdings, For: Jun 30

August 15, 2022 6:42 AM EDT

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2022

 

OR

 

TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ____________

 

Commission File Number 000-29935

 

CROWN EQUITY HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

33-0677140

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

11226 Pentland Downs Street, Las Vegas, NV 89141

(Address of principal executive offices)

 

(702) 683-8946

(Issuer's telephone number)

 

Indicate by check mark whether the Company (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

 

As of August 15, 2022, the number of shares outstanding of the registrant's class of common stock was 13,346,642.

 

 

 

 

TABLE OF CONTENTS

 

 

Page

 

PART I: FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements (Unaudited)

 

Condensed Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021 (Audited)

4

 

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

5

 

Condensed Consolidated Statements of Changes in Stockholders' Deficit for the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

 

6

 

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited)

7

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

 

 

Item 2.

Management's Discussion and Analysis and Plan of Operation

22

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

 

 

Item 4T.

Controls and Procedures

 

 

 

PART II: OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

24

 

 

Item 1A.

Risk Factors

24

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

24

 

 

Item 3.

Defaults upon Senior Securities

24

 

 

Item 4.

Mine Safety Information

24

 

 

Item 5.

Other Information

24

 

 

Item 6.

Exhibits

25

 

 

Signatures

26

 

 
2

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

DEFINITIONS

 

In this Quarterly Report on Form 10-Q, the words "Crown Equity", the "Company", the "Registrant", "we", "our", "ours" and "us" refer to Crown Equity Holdings, Inc.

 

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q includes certain statements that may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "seek," "estimate," "predict," "potential," "pursue," "target," "continue," the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company's actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to:

 

 

·

the possibility that certain tax benefits of our net operating losses may be restricted or reduced in a change in ownership or a further change in the federal tax rate;

 

 

 

 

·

the inability to carry out plans and strategies as expected

 

 

 

 

·

limitations on the availability of sufficient credit or cash flow to fund our working capital needs and capital expenditures and debt service;

 

 

 

 

·

difficulty in fulfilling the terms of our convertible note payables, which could result in a default and acceleration of our indebtedness under our convertible note payables;

 

 

 

 

·

the possibility that we issue additional shares of common stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the book value per share of our common stock;

 

 

 

 

·

the relatively low trading volume of our common stock, which could depress our stock price;

 

 

 

 

·

competition in the industries in which we operate, both from third parties and former employees, which could result in the loss of one or more customers or lead to lower margins on new projects;

 

 

 

 

·

a general reduction in the demand for our services;

 

 

 

 

·

our ability to enter into, and the terms of, future contracts;

 

 

 

 

·

uncertainties inherent in estimating future operating results, including revenues, operating income or cash flow;

 

 

 

 

·

complications associated with the incorporation of new accounting, control and operating procedures;

 

 

 

 

·

the recognition of tax benefits related to uncertain tax positions;

 

You should understand that the foregoing, as well as other risk factors discussed in this document and in Part I, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. We undertake no obligation to publicly update or revise any information, including information concerning our controlling shareholder, net operating losses, borrowing availability or cash position, or any forward-looking statements to reflect events or circumstances that may arise after the date of this report. Forward-looking statements are provided in this Quarterly Report on Form 10-Q pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties, and risks described herein.

 

 
3

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

  

 

 

June 30,

2022

 

 

December 31,

2021

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$6,618

 

 

$4,320

 

Investments in trading securities

 

 

31,778

 

 

 

588,945

 

Total Current Assets

 

 

38,396

 

 

 

593,265

 

Property and Equipment, net

 

 

5,977

 

 

 

10,020

 

Total Assets

 

$44,373

 

 

$603,285

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$139,663

 

 

$139,979

 

Accounts payable and accrued expenses to related party

 

 

1,029,690

 

 

 

830,790

 

Margin loan – Brokerage account

 

 

-

 

 

 

263,151

 

Notes payable to related parties

 

 

15,300

 

 

 

3,912

 

Convertible notes payable to related parties, net of debt discount

 

 

16,728

 

 

 

18,428

 

Current portion of long-term debt

 

 

11,264

 

 

 

18,169

 

Total Current Liabilities

 

 

1,212,645

 

 

 

1,274,429

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Long-term debt

 

 

1,708

 

 

 

2,414

 

Total Liabilities

 

 

1,214,353

 

 

 

1,276,843

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Preferred Stock, 20,000,000 shares authorized, authorized at $0.001 par value, none issued or outstanding

 

 

-

 

 

 

-

 

Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding at June 30, 2022 and December 31, 2021

 

 

1

 

 

 

1

 

Common Stock, 450,000,000 authorized at $0.001 par value; and 13,346,642 and 13,318,642 shares issued and outstanding at June 30, 2022 and December 31, 2021

 

 

13,346

 

 

 

13,318

 

Stock Payable

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

12,743,962

 

 

 

12,729,990

 

Accumulated deficit

 

 

(13,927,289)

 

 

(13,416,867)

Total stockholders' deficit

 

 

(1,169,980)

 

 

(673,558)

Total liabilities and stockholders' deficit

 

$44,373

 

 

$603,285

 

 

The accompanying notes are an integral part of these financial statements.

 

 
4

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CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$413

 

 

$1,345

 

 

$557

 

 

$4,250

 

Revenue – related party

 

 

2,150

 

 

 

4,250

 

 

 

2,150

 

 

 

8,075

 

Total Revenue

 

 

2,563

 

 

 

5,595

 

 

 

2,707

 

 

 

12,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

2,216

 

 

 

1,828

 

 

 

4,043

 

 

 

3,656

 

General and Administrative

 

 

122,547

 

 

 

123,523

 

 

 

250,464

 

 

 

260,759

 

Total Operating Expenses

 

 

124,763

 

 

 

125,351

 

 

 

254,507

 

 

 

264,415

 

Net Operating Income (Loss)

 

 

(122,200 )

 

 

(119,756

 

 

(251,800 )

 

 

(252,090 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(872 )

 

 

(2,308 )

 

 

(1,438 )

 

 

(3,250 )

Gain on Forgiveness of Debt

 

 

-

 

 

 

4,101

 

 

 

-

 

 

 

4,101

 

Debt Discount Amortization

 

 

-

 

 

 

(3,572 )

 

 

-

 

 

 

(10,924 )

Gain (Loss) on Stocks Held or Sold

 

 

(80,717 )

 

 

37,601

 

 

 

(252,568 )

 

 

25,548

 

Other Income (Expense)

 

 

(1,095 )

 

 

(1 )

 

 

(4,616 )

 

 

(752 )

Total other expense

 

 

(82,684 )

 

 

35,821

 

 

 

(258,622 )

 

 

14,723

 

Net (loss)

 

$(204,884 )

 

$(83,935 )

 

$(510,422 )

 

$(237,367 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.02 )

 

$(0.01 )

 

$(0.04 )

 

$(0.02 )

Weighted average number of common shares outstanding - basic and diluted

 

 

13,343,741

 

 

 

12,918,229

 

 

 

13,333,692

 

 

 

12,914,206

 

 

The accompanying notes are an integral part of these financial statements 

 

 
5

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

 

For the Three Months Ended June 30, 2022

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2022

 

 

1,000

 

 

$1

 

 

 

13,338,642

 

 

$13,318

 

 

 

-

 

 

$12,739,970

 

 

$(13,722,405 )

 

$(969,096 )

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

8,000

 

 

 

8

 

 

 

-

 

 

 

3,992

 

 

 

-

 

 

 

4,000

 

Rounding

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(204,884 )

 

 

(204,884 )

Balances at June 30, 2022

 

 

1,000

 

 

$1

 

 

 

13,346,642

 

 

$13,346

 

 

 

-

 

 

$12,743,962

 

 

$(13,927,289 )

 

$(1,169,980 )

 

For the Three Months Ended June 30, 2021

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2021

 

 

1,000

 

 

$1

 

 

 

12,914,543

 

 

$12,914

 

 

$3,750

 

 

$12,525,894

 

 

$(13,119,506 )

 

$(576,947 )

Common Stock Issued for services

 

 

-

 

 

 

-

 

 

 

4,099

 

 

$4

 

 

$(3,750 )

 

$4,496

 

 

$-

 

 

$750

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(236,367 )

 

 

(236,367 )

Balances at June 30, 2021

 

 

1,000

 

 

$1

 

 

 

12,918,642

 

 

$12,918

 

 

$-

 

 

$12,530,390

 

 

$(13,203,441 )

 

$(660,132 )

 

For the Six Months Ended June 30, 2022

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

1,000

 

 

$1

 

 

 

13,318,642

 

 

$13,318

 

 

 

-

 

 

$12,729,990

 

 

$(13,416,867)

 

$(673,558)

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

28,000

 

 

 

28

 

 

 

-

 

 

 

13,972

 

 

 

-

 

 

 

14,000

 

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(510,422)

 

 

(510,422)

Balances at June 30, 2022

 

 

1,000

 

 

$1

 

 

 

13,346,642

 

 

$13,346

 

 

 

-

 

 

$12,743,962

 

 

$(13,927,289)

 

$(1,169,980)

 

For the Six Months Ended June 30, 2021

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

1,000

 

 

$1

 

 

 

12,901,753

 

 

$12,902

 

 

$3,000

 

 

$12,506,375

 

 

$(12,966,074 )

 

$(443,796 )

Common Stock Issued for Common Stock Payable

 

 

-

 

 

 

-

 

 

 

1,286

 

 

$1

 

 

$750

 

 

$2,249

 

 

$-

 

 

$3,000

 

Settlement of AP for Common Stock

 

 

-

 

 

 

-

 

 

 

11,504

 

 

$11

 

 

$-

 

 

$17,245

 

 

$-

 

 

$17,256

 

Common Stock Issued for services

 

 

-

 

 

 

-

 

 

 

4,099

 

 

$4

 

 

$(3,750 )

 

$4,496

 

 

$-

 

 

$750

 

Warrant Subscription

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$25

 

 

$-

 

 

$25

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(236,367 )

 

 

(237,367 )

Balances at June 30, 2021

 

 

1,000

 

 

$1

 

 

 

12,918,642

 

 

$12,918

 

 

$-

 

 

$12,530,390

 

 

$(13,203,441 )

 

$(660,132 )

 

The accompanying notes are an integral part of these financial statements.

 

 
6

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss)

 

$(510,422 )

 

$(237,367 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

-

 

Depreciation

 

 

4,043

 

 

 

3,656

 

Loss (gain) on brokerage account

 

 

252,568

 

 

 

(25,548 )

Loss on investment

 

 

4,616

 

 

 

752

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

10,924

 

Gain on forgiveness of debt

 

 

-

 

 

 

(4,101 )

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Brokerage account or margin loan

 

 

-

 

 

 

34,551

 

Deferred revenue – related party

 

 

-

 

 

 

(8,500 )

Accounts payable and accrued expenses – related party

 

 

198,900

 

 

 

192,344

 

Accounts payable and accrued expenses

 

 

(484 )

 

 

17,732

 

Net cash(used in) operating activities

 

 

(50,779 )

 

 

(15,557 )

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Cash (transfer to) withdrawn from brokerage account

 

 

37,000

 

 

 

-

 

Net cash provided by investing activities

 

 

37,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payments on convertible notes payable, related party

 

 

(4,812 )

 

 

(6,794 )

Borrowings from convertible notes payable, related party

 

 

-

 

 

 

9,333

 

Borrowings from notes payable, related party

 

 

14,500

 

 

 

18,616

 

Proceeds from Sale of Stock

 

 

14,000

 

 

 

-

 

Principal payments on debt

 

 

(7,611 )

 

 

(9,558 )

Warrant Subscriptions

 

 

-

 

 

 

25

 

Shares subscribed for cash

 

 

-

 

 

 

3,750

 

Net cash provided by financing activities

 

 

16,077

 

 

 

15,372

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

2,298

 

 

 

(185)

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

4,320

 

 

 

3,047

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$6,618

 

 

$2,862

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$6,707

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

RP-AP Converted into common stock

 

$-

 

 

 

17,256

 

Shares issued for stock payable

 

$-

 

 

$6,750

 

Repayments on Margin loan Brokerage account

 

$263,151

 

 

$-

 

  

The accompanying notes are an integral part of these financial statements.

 

 
7

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

 

Nature of Business

 

Crown Equity Holdings Inc. ("Crown Equity" or the "Company") was incorporated in August 1995 in Nevada. The Company offers through its digital network of websites, advertising branding, marketing solutions and other services to boost customer awareness, as well as merchant visibility as a worldwide online multi-media publisher. The Company focuses on the distribution of information for the purpose of bringing together its audience with the advertisers that want to reach them. Its advertising services cover and connect a range of marketing specialties, as well as provide search engine optimization for clients interested in online media awareness. Crown Equity Holdings' objective is making its endeavor known as CRWE WORLD into a online news and information source, as well as a one stop shop for various distinct products and services. The Company also offers services to companies seeking to become public entities in the United States, as well as providing various consulting services to companies and individuals dealing with corporate structure and operations globally.

 

On January 27, 2020, the Company re-acquired from American Video Teleconferencing Corp. (AVOT) the online business iB2BGlobal.com, since it had not received the shares promised during the original sale.

 

Basis of Preparation

 

The accompanying financial statements include the financial information of Crown Equity Holdings Inc. ("Crown Equity", the "Company") have been prepared in accordance with the instructions to financial reporting as prescribed by the Securities and Exchange Commission (the "SEC"). The preparation of these financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles ("GAAP"). In the opinion of management, the financial statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein.

 

Reclassifications

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Adoption of New Accounting Standard

 

In February 2016, the FASB issued ASU 2016-02 "Leases", which is codified in ASC 842 "Leases" and supersedes current lease guidance in ASC 840. These provisions require lessees to put a right-of-use asset and lease liability on their balance sheet for operating and financing leases that have a term of more than one year. Expense will be recognized in the income statement similar to current accounting guidance. For lessors, the ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the provisions on January 1, 2019, including interim periods subsequent to the date of adoption. Entities are required to use a modified retrospective approach upon adoption to recognize and measure leases at the beginning of the earliest comparative period presented in the financial statements. Since all the leases were finance leases, there was no effect on the financial statements when ASC 842 was adopted.

 

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation, to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments for employees, with certain exceptions. Under the new guidance, the cost for nonemployee awards may be lower and less volatile than under current US GAAP because the measurement generally will occur earlier and will be fixed at the grant date. This update is effective for annual financial reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, although early adoption is permitted. The Company adopted the standard effective January 1, 2019 and found the adoption did not have a material effect on our financial statements.

 

 
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Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows.

 

Accounting Standards not yet Adopted

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us in our first quarter of fiscal 2023, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our financial statements.

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition, long-lived asset impairments and adjustments, deferred tax, stock-based compensation, and reserves for legal matters.

 

Cash and Cash Equivalents

 

Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be cash and cash equivalents.

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances.

 

Revenue Recognition

 

The core principles of revenue recognition under ASC 606 include the following five criteria:

 

1.

Identify the contract with the customer

 

 

 

 

 

Contract with our customers may be oral, written, or implied. A written and signed invoice stating the terms and conditions is the Company' preferred method. The terms of a written contract may be contained within the body of an invoice or in an email. No work is commenced without an understanding between the Company and our client that a valid contract exists.

 

2.

Identify the performance obligations in the contract

 

 

 

 

 

Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.

Determine the transaction price

 

 

 

 

 

Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer.

 

4.

Allocate the transaction price to the performance obligations in the contract

 

 

 

 

 

If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase.

 

 
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5.

Recognize revenue when (or as) we satisfy a performance obligation

 

 

 

 

 

The Company uses digital marketing that includes digital advertising, SEO management and digital ad support. We provide whether presenting a vibrant but simple message about our clients that will enlighten their audience or deploying an influential digital marketing campaign on our online site or across one or multiple social media platforms. Revenue is recognized when ads are run on Company's advertising platform.

 

The company generates analytical reports monthly or as required to show how the ad dollars were spent and how the targeting resulted in click-through. The report satisfies the performance obligation, regardless of the outcome or effectiveness of the campaign.

 

Sales are recognized when promised services are started in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Sales for service contracts generally are recognized as the services are being provided.

 

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

 

 

Third Party

 

 

Related Party

 

 

Total

 

 

Third Party

 

 

Related Party

 

 

Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$7,650

 

 

$7,650

 

Accounting

 

 

 

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Click Based and Impressions Ads

 

 

247

 

 

 

-

 

 

 

247

 

 

 

115

 

 

 

-

 

 

 

115

 

Publishing and Distribution

 

 

310

 

 

 

150

 

 

 

460

 

 

 

4,560

 

 

 

-

 

 

 

4,560

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$557

 

 

$2,150

 

 

$2,707

 

 

$4,675

 

 

$7,650

 

 

$12,325

 

 

Revenues was received through provided accounting services, click based and impression ads located on the Company’s websites, as well as from publishing and disseminating press releases.

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Deferred Revenue

 

$-

 

 

$2,833

 

 

Deferred revenue is based on cash received or billings in excess of revenue recognized until revenue recognition criteria are met. Client prepayments are deferred and recognized over future periods as services are delivered or performed.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of June 30, 2022 and December 31, 2021.

 

Risk Concentrations

 

The Company does not hold cash in excess of federally insured limits.

 

During the six-month period ending June 30, 2022, 74% of the Company's revenues were from accounting services, of which 100% of the accounting revenue earned were through a related party of the Company, with 17% of the Company's revenues being received through the publishing and distribution of press releases, of which 6% of the publishing and distribution revenue received were also received through a Company related party, and the remaining 9% of the revenue earned was received from the display of click-based and impressions ads on the company's online site. 

 

 

 
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General and Administrative Expenses

 

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2022 and 2021: Compensation expense, auto, travel and entertainment, legal and accounting, utilities, websites, office expenses, depreciation and other administrative related expenses.

 

Property and Equipment

 

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

 

Impairment of Long-Lived Assets

 

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is determined based on either expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2022 or 2021.

 

Basic and Diluted Net (Loss) per Share

 

 

 

Six Months

June 30, 2022

 

 

Six Months

June 30, 2021

 

Numerator:

 

 

 

 

 

 

Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc.

 

$(510,422 )

 

$(237,367 )

Net (Loss) attributable to Crown Equity Holdings, Inc.

 

$(510,422)

 

$(237,367 )

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

Weighted average common and common equivalent shares outstanding – basic and diluted

 

 

13,333,692

 

 

 

12,914,206

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.:

 

 

 

 

 

 

 

 

Basic

 

$(0.04 )

 

$(0.02 )

Diluted

 

$(0.04 )

 

$(0.02 )

 

When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the periods ended June 30, 2022, and 2021. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended June 30, 2022, is 21,401,000.

 

Income Taxes

 

In December 2017, the Tax Cuts and Jobs Act (the "Act") was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company's statutory tax rate for fiscal 2019 and 2020 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of June 30, 2021, and December 31, 2020, the Company has not reflected any amounts as a deferred tax asset due to the uncertainty of future profits to offset any net operating loss.

 

 
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The Company's deferred tax assets consisted of the following as of June 30, 2021 and December 31, 2020:

 

 

 

June 30,

2022

 

 

Dec 31,

2021

 

Net operating loss

 

$860,447

 

 

$753,258

 

Valuation allowance

 

 

(860,447 )

 

 

(753,258 )

Net deferred tax asset

 

 

-

 

 

 

-

 

 

Uncertain tax position

 

The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of June 30, 2022 and December 31, 2021.

 

Fair Value of Financial Instruments

 

The Company's financial instruments consist of cash and cash equivalents, accounts payable and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Research and Development

 

The Company spent no money for research and development cost for the periods ended June 30, 2022 and December 31, 2021.

 

Advertising Cost

 

The Company spent $0 for advertisement for the periods ended June 30, 2022 and 2021.

 

NOTE 2 – GOING CONCERN

 

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $13,927,290 since its inception and had a working capital deficit of $1,174,250, negative cash flows from operations and limited business operations as of June 30, 2022. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

 

Crown Equity continues to review its expense structure reviewing costs and their reduction to move towards profitability. Management plans to continue raising funds through debt and equity financing to grow the business to profitability. This financing may be insufficient to fund expenditures or other cash requirements. There can be no assurance that additional financing will be available to the Company on acceptable terms or at all. These financial statements do not give effect to adjustments to assets would be necessary for the Company be unable to continue as going concern.

 

NOTE 3 – PROPERTY AND EQUIPMENT

 

The Company's policy is to capitalize all property purchases over $1,000 and depreciates the assets over their useful lives of 3 to 7 years.

 

Property consists of the following on June 30, 2022 and December 31, 2021:

 

 

 

June 30,

2022

 

 

Dec 31,

2021

 

Computers – 3 year estimated useful life

 

$108,622

 

 

 

108,622

 

Less – Accumulated Depreciation

 

 

(102,645 )

 

 

(998,602 )

Property and Equipment, net

 

$5,977

 

 

 

10,020

 

 

Depreciation has been provided over each asset's estimated useful life. Depreciation expense was $4,043, and $3,656 for the six months ended June 30, 2022 and 2021 respectively.

 

 
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NOTE 4 – BROKERAGE ACCOUNT

 

As of June 30, 2022, the market value of the Company's account portfolio was $30,646. During the period ending June 30, 2022, $37,000 was transferred from the brokerage account to operating account. The opening value of the account was $325,794, resulting in losses in portfolio investment as follows:

 

Net loss on investment in securities account for the six months ended June 30, 2022

 

$252,568

 

Less – Net gain and losses recognized during 2022 on equity securities sold during the period

 

$252,568

 

Unrealized losses recognized during 2022 on equities securities still held at June 30, 2022

 

$-

 

 

NOTE 5 – FINANCE LEASES

 

During 2019 and 2020, the Company borrowed an aggregate $9,985 and $7,357 under the following third-party and related party finance lease transactions:

 

A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a payment of $498 in additional to a $22 management fee for a total monthly payment of $520. The lease has a bargain purchase option of $1 at the end of the lease term.

 

The following is a schedule of the net book value of the finance lease.

 

Assets

 

June 30,

2022

 

Leased equipment under finance lease,

 

$108,622

 

less accumulated amortization

 

 

(102,645 )

Net

 

$5,977

 

 

Liabilities

 

June 30,

2022

 

Obligations under finance lease (current)

 

$11,264

 

Obligations under finance lease (noncurrent)

 

 

1,708

 

Total

 

$12,972

 

 

Below is a reconciliation of leases to the financial statements.

 

 

 

Finance Leases

 

Leased asset balance

 

$5,977

 

Liability balance

 

 

12,972

 

Cash flow (operating)

 

 

-

 

Cash flow (financing)

 

 

-

 

Interest expense

 

$1,615

 

 

The following is a schedule, by years, of future minimum lease payments required under finance leases.

 

Years ended December 31

 

Finance Leases

 

2022

 

 

9,866

 

2023

 

 

2,868

 

Thereafter

 

 

-

 

Total

 

 

12,734

 

Less: Imputed Interest

 

 

(599

 

Total Liability

 

 

12,135

 

 

 
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Other information related to leases is as follows:

 

Lease Type

 

Weighted Average Remaining Term

 

Weighted Average Discount Rate (1)

 

Finance Leases

 

0.76 years

 

 

16%

 

Based on average interest rate of 16%, average term remaining (months) 13.67 Average term remain (years) 1.13.

 

(1) This discount rate is consistent with our borrowing rates from various lenders.

 

NOTE 6 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

 

As of June 30, 2022, and December 31, 2021, the Company had unamortized discount of $0 and $0, respectively.

 

The Company analyzed the below convertible notes for derivatives noting none.

 

 

 

Original

 

Due

 

Interest

 

 

Conversion

 

 

Jun 30,

 

Name

 

Note Date

 

Date

 

 Rate

 

 

Rate

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamie Hadfield

 

04/07/2022

 

07/07/2022

 

 

12%

 

$-

 

 

 

10,000

 

Willy A Saint-Hilaire

 

03/12/2021

 

03/12/2022

 

 

16%

 

$-

 

 

 

800

 

Willy A. Saint-Hilaire

 

02/28/2022

 

07/28/2022

 

 

12%

 

$-

 

 

 

4,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A Saint-Hilaire

 

04/06/2021

 

04/06/2022

 

 

12%

 

$-

 

 

 

2,500

 

Willy A Saint-Hilaire

 

04/16/2021

 

04/16/2022

 

 

12%

 

$-

 

 

 

1,518

 

Willy A Saint-Hilaire

 

04/21/2021

 

04/21/2022

 

 

12%

 

$-

 

 

 

1,110

 

Shahram Khial

 

04/22/2021

 

04/22/2022

 

 

12%

 

$-

 

 

 

3,500

 

Willy A Saint-Hilaire

 

04/30/2021

 

04/30/2022

 

 

15.15%

 

$-

 

 

 

2,750

 

Willy A Saint-Hilaire

 

05/04/2021

 

05/04/2022

 

 

15.15%

 

$-

 

 

 

750

 

Willy A Saint-Hilaire

 

05/21/2021

 

05/21/2022

 

 

0%

 

$-

 

 

 

4,600

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,728

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Convertible Notes Payable, net of Discount - Related Party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,728

 

 

Willy Ariel Saint-Hilaire

 

On March 12, 2021, the Company entered into a promissory note with Willy A Saint-Hilaire in the amount of $9,332 at 16% interest. The company made principal reduction payments of $5,421, during the year ended period of December 31, 2021. As of March 31, 2022, the balance on this note is $2,012. With the additional payments totaling $1,212, during the second quarter period ending June 30, 2022, the balance on the note is $800

 

On April 6, 2021, the Company entered into a promissory note with Willy A Saint-Hilaire in the amount of $2,500 at an interest rate of 12%. As of June 30, 2022, the principal balance on this note was $2,500.

 

On April 16, 2021, the Company entered into a convertible promissory note with Willy A Saint-Hilaire in the amount of $1,518 at an interest rate of 12%. As of June 30, 2022, the principal balance on this note was $1,518.

 

On April 21, 2021, the Company entered into a convertible promissory note with Willy A Saint-Hilaire in the amount of $1,109.83 at an interest rate of 12%. As of June 30, 2022, the principal balance on this note was $1,110.

 

 
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On April 22, 2021, the Company entered into a convertible promissory note with Shahram Khial in the amount of $3,500 at an interest rate of 12%. As of June 30, 2022, the principal balance on this note was $3,500.

 

On April 30, 2021, the Company entered into a convertible promissory note with Willy A Saint-Hilaire in the amount of $2,750.00 at an interest rate of 15.15%. As of June 30, 2022, the principal balance on this note was $2,750.

 

On May 4, 2021, the Company entered into a convertible promissory note with Willy A Saint-Hilaire in the amount of $750 at an interest rate of 15.15%. As of June 30, 2022, the principal balance on this note was $750.

 

On May 21, 2021, the Company entered into a convertible promissory note with Willy A Saint-Hilaire in the amount of $7,280. As of March 31, 2022, the principal balance on this note was $4,900. With the additional payments totaling $300, during the second quarterly period ending June 30, 2022, the balance on the note is $4,600.

 

On February 28, 2022, the Company entered into a promissory note with Willy A Saint-Hilaire in the amount of $4,500 at an interest rate of 0 %. As of June 30, 2022, the principal balance on this note was $4,500.

 

Shahram Khial

 

On April 27, 2020, the Company entered into a convertible promissory note with Shahram Khial in the amount of $3,500. The note carries interest at 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common shares. As of June 30, 2022, the balance on this note was $3,500.

 

Jamie Hadfield

 

On April 7, 2022, the Company entered into a promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12% . As of June 30, 2022, the principal balance on this note was $10,000.

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

 

The Company is obligated for payments under related party notes payable and automobile lease payments.

 

The Company agreed to pay the automobile leases of $395 and $278 a month, on a month-to-month basis and can be cancelled at any time but expects to continue lease payments for the full 2022 year.

 

The Company entered into an agreement, effective January 1, 2020, to pay Arnulfo Saucedo-Bardan $5,000 per month for website development, design maintenance and other IT services and solutions.

 

On February 13, 2020, Munti Consulting LLC was issued a warrant at a price of $0.000025 per share ($25 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. Exercisable after the first (1st) anniversary of the date of filing of the first Form S-1 filed with the U.S. Securities and Exchange Commission after the issuance of this Warrant.

 

On March 13, 2020, BBCKQK Trust Kevin Wiltz was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On March 13, 2020, Willy Ariel Saint--Hilaire was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On April 1, 2020, Addicted 2 Marketing LLC was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On April 28, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 4, 2020, Arnulfo Saucedo- Bardan was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 7, 2020, Arnold F. Sock was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

 
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On May 7, 2020 Rudy Chacon was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 7, 2020, Sadegh Salmassi was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020, Glen J. Rineer was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Barry Cohen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020, Malcolm Ziman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Brett Matus was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Brian D Colvin was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Jacob Colvin was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 11, 2020, Mohammad Sadrolashrafi was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 13, 2020 Steven A. Fishman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 13, 2020 Wendell and Sharon Piper was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 19, 2020 Joan R. Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 19, 2020 Marvin A Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 20, 2020 Willy Rafael Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 27, 2020 James Bobrik was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 28, 2020 Richard R Shehane was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 29, 2020 Ybelka Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 3, 2020, Jeffery Connell was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 8, 2020 Hassan M. Oji was issued a warrant at a price of $0.000025 per share ($7.50 total) to purchase 300,000 shares of common stock at the exercise price of $0.60 per share.

 

 
16

Table of Contents

 

On June 9, 2020, Kim Smith was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 12, 2020 Violet Gewerter was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 16, 2020, Roy S Worbets was issued a warrant at a price of $0.000025 per share ($5.00) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 19, 2020, Elvis E. Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 30, 2020, Chris Knudsen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On July 1, 2020, Theresa Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On July 1, 2020, Donald Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On July 10, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On August 13, 2020, Monireh Sepahpour was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On August 18, 2020, Monica Shayestehpour was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On September 2, 2020, Hongsing Phou was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On September 8, 2020, Pejham Khial was issued a warrant at a price of $0.000025 per share $12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On September 15, 2020, Salvatore Marasa was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On September 21, 2020, Richard W LeAndro was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On September 21, 2020, Richard W LeAndro Jr was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000shares of common stock at the exercise price of $0.60 per share.

 

On September 25, 2020, Seyed M Javad was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On October 6, 2020, Nasrin Montazer was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On October 13, 2020, Jagjit Dhaliwal was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On January 3, 2021, Marjan Tina Suwarno & Reno Suwarno were issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

Summary of Warrants Issued:

 

 
17

Table of Contents

 

Summary of Warrants Issued:

 

Issue Date

 

Issued To

 

Shares

 

 

Exercise price

per share

 

 

Warrant price

per share

 

 

Total Paid for

Warrants

 

02/13/2020

 

Munti Consulting LLC

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

03/13/2020

 

BBCKQK Trust Kevin Wiltz

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

04/01/2020

 

Addicted 2 Marketing LLC

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

05/07/2020

 

Arnold F Sock

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

05/07/2020

 

Rudy Chacon

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/07/2020

 

Sadegh Salmassi

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/08/2020

 

Glen J Rineer

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/08/2020

 

Barry Cohen

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/13/2020

 

Steven A Fishman

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/13/2020

 

Wendell & Sharon Piper

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/27/2020

 

James Bobrik

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/28/2020

 

Richard R Shehane

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

06/03/2020

 

Jeffery Connell

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

06/08/2020

 

Hassan M Oji

 

 

300,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

7.50

 

06/09/2020

 

Kim Smith

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

06/12/2020

 

Violet Gewerter

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

06/16/2020

 

Roy S Worbets

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

06/30/2020

 

Chris Knudsen

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

07/01/2020

 

Donald Kitt

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

08/13/2020

 

Monireh Sepahpour

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

08/18/2020

 

Monica Shayestehpour

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

09/02/2020

 

Hongsing Phou

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

09/08/2020

 

Pejham Khial

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

09/15/2020

 

Salvatore Marasa

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

09/21/2020

 

Richard W LeAndro

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

09/21/2020

 

Richard W LeAndro Jr

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

09/25/2020

 

Seyed M Javad

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

10/06/2020

 

Nasrin Montazer

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

10/13/2020

 

Jagit Dhaliwal

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

01/03/2021

 

Marjan Tina Suwarno & Reno Suwarno

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

 

 

Total:

 

 

12,300,000

 

 

 

 

 

 

 

 

 

 

$

307.50

 

Related Party:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

03/13/2020

 

Willy A Saint-Hilaire

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

04/28/2020

 

Shahram Khial

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

05/01/2020

 

Mike Zaman

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/01/2020

 

Montse Zaman

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Malcolm Ziman

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/08/2020

 

Brett Matus

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/11/2020

 

Mohammad Sadrolashrafi

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

05/04/2020

 

Arnulfo Saucedo-Bardan

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Brian D Colvin

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Jacob Colvin

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/19/2020

 

Joan R Saint-Hilaire

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

05/19/2020

 

Marvin A Saint-Hilaire

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

05/20/2020

 

Willy Rafael Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/29/2020

 

Ybelka Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

06/09/2020

 

Kenneth Cornell Bosket

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

06/19/2020

 

Elvis E Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

07/01/2020

 

Theresa Kitt

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

07/10/2020

 

Shahram Khial

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

 

 

Total Related Party:

 

 

9,100,000

 

 

 

 

 

 

 

 

 

 

$

227.50

 

 

 
18

Table of Contents

 

NOTE 8 – RELATED PARTY TRANSACTIONS

 

The Company is provided office space by one of the officers and directors at no charge. The Company believes that this office space is sufficient for its needs for the foreseeable future.

 

On March 1, 2020, Willy A Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On April 28, 2020, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 1, 2020, Mike Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 1, 2020, Montse Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 4, 2020 Arnulfo Saucedo-Bardan was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020, Malcolm Ziman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Brian D Colvin was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Jacob Colvin was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 8, 2020 Brett Matus was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 11, 2020, Mohammad Sadrolashrafi was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 19, 2020 Joan R Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 19, 2020 Marvin A Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 20, 2020 Willy Rafael Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On May 29, 2020 Ybelka Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On June 9, 2020 Kenneth Cornell Bosket was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

 

On July 1, 2020 Theresa Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

 

On July 10, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

 

 
19

Table of Contents

 

The Company is periodically advanced operating funds from related parties with convertible notes payable. During the six months ended June 30, 2022, total convertible notes and not convertible notes from related parties was $16,028 and $15,300, respectively. The Company is also periodically advanced funds to cover account payables by direct payment of the account payables from related parties

 

The Company entered into an agreement, effective January 1, 2020, to pay Mike Zaman $20,000 per month for managerial services.

 

The Company entered into an agreement, effective January 1, 2020, to pay Kenneth Bosket $5,000 per month for administrative services.

 

The Company entered into an agreement, effective January 1, 2020, to pay Montse Zaman $5,000 per month for administrative services.

 

As of June 30, 2022, the Company has a balance of $1,029,690 of accounts and accrued expenses payable with related parties.

 

NOTE 9 – STOCK HOLDERS' DEFICIT

 

Common Stock

 

During the six months ending June 30, 2022, the Company issued the following:

 

 

·

On March 9, 2022, the Company issued 20,000 restricted shares of common stock for a total of $10,000 in cash. The shares were sold at the price of $0.50 per share on the purchase date.

 

·

On May 3, 2022, the Company issued 8,000 restricted shares of common stock for a total of $4,000 in cash. The shares were sold at the price of $0.50 per share on the purchase date.

 

 

 

On February 13, 2020, the Company granted non-qualified stock options to purchase up to 1,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company's S1 registration filing of which date is yet to be determined.

 

On March 13, 2020, the Company granted non-qualified stock options to purchase up to 2,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company's S1 registration filing of which date is yet to be determined.

 

Equity Incentive Plan

 

The Company's 2006 Equity Incentive Plan, as amended and restated (the "Equity Incentive Plan"), provides for grants of stock options as well as grants of stock, including restricted stock. Approximately 3.0 million shares of common stock are authorized for issuance under the Equity Incentive Plan, of which 3.0 million shares were available for issuance as of June 30, 2022

 

Preferred Stock

 

The Company has designated 1,000 shares of its preferred stock as Series A Preferred Stock. Each share of Series A Preferred shall have no dividend, voting or other rights except for the right to elect Class I Directors. As of June 30, 2022, the Company has 1,000 shares of Series A Preferred Stock outstanding.

 

 
20

Table of Contents

 

NOTE 10 – INCOME TAXES

 

The Company follows ASC 740, Accounting for Income Taxes. During 2009, there was a change in control of the Company. Under section 382 of the Internal Revenue Code such a change in control negates much of the tax loss carry forward and deferred income tax. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. For federal income tax purposes, the Company uses the accrual basis of accounting, the same that is used for financial reporting purposes.

 

The Company did not have taxable income during 2021.

 

The Company's deferred tax assets consisted of the following as of June 30, 2022, and December 31, 2021:

 

 

 

2022

 

 

2021

 

Net operating loss

 

$860,447

 

 

$753,258

 

Valuation allowance

 

 

(860,447 )

 

 

(753,258 )

Net deferred tax asset

 

$-

 

 

$-

 

 

As of June 30, 2022, and December 31, 2021, the Company's accumulated net operating loss carry forward was approximately $4,097,367 and $3,586,945, respectively and will begin to expire in the year 2032. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%.

 

NOTE 11 – SUBSEQUENT EVENTS

 

The are no subsequent events

 

 
21

Table of Contents

 

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS

 

The following discussion and analysis should be read in conjunction with our Financial Statements and the notes thereto, set forth in Item 8. "Financial Statements" as set forth in our Annual Report on Form 10-K for the year ended December 31, 2021, and the Condensed Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q. The following discussion may contain forward looking statements. For additional information, see "Disclosure Regarding Forward Looking Statements" in Part I of this Quarterly Report on Form 10-Q.

 

OVERVIEW

 

Crown Equity Holdings Inc. ("Crown Equity") was incorporated in August 1995 in Nevada. The Company is offering its services to companies seeking to become public entities in the United States. It has launched a website, www.crownequityholdings.com, which offers its services in a wide range of fields. The Company provides various consulting services to companies and individuals dealing with corporate structure and operations globally. The Company also provides public relations and news dissemination for publicly and privately held companies.

 

In December 2010, the Company formed two wholly owned subsidiaries Crown Tele Services, Inc. and CRWE Direct, Inc. Crown Tele Services, Inc. was formed to provide voice over internet ("VoIP") services to clients at a competitive price and Crown Direct, Inc. was formed to provide direct sales to customers. Both entities had minimum sales during the quarter.

 

In March 2011, the Company formed a wholly owned subsidiary CRWE Real Estate, Inc. as a subsidiary to engage in potential real estate holdings. The entity had minimal activity during the quarter.

 

The Company has focused its primary vision to using its network of websites to provide advertising and marketing services, as a worldwide online media advertising publisher, dedicated to the distribution of quality branding information. The Company offers Internet media-driven advertising services, which cover and connect a wide range of marketing specialties, as well as search engine optimization for clients interested in online media awareness. As part of its operations, the Company has utilized the services of software and hardware technicians in developing its websites and adding additional websites. This allows the Company to disseminate news and press releases for its customers as well as general news and financial information on a much bigger scale than it did previously. The Company markets its services to companies seeking market awareness of them and the services or goods that they offer. The Company then publishes information concerning these companies on its many websites

 

Crown Equity's office is located at 11226 Pentland Downs Street, Las Vegas, NV 89141.

 

As of June 30, 2022, Crown Equity has 4 employees and utilized the services of one independent contractor and the following four officers, Mike Zaman, Kenneth Bosket, Montse Zaman and Vinoth Sambandam.

 

RESULTS OF OPERATIONS

 

Three months ended June 30, 2022, Compared to the Three months ended June 30, 2021

 

For the three months ended June 30, 2022, revenues were $2,563 and $5,595 for the same period in 2021.

 

Revenues for the three months ended June 30, 2022 was lower compared to the same period in 2021 primarily due to less advertising income earned from related parties, as well as less publishing and distributing income earned.

 

Operating expenses were $124,763 for the three months ended June 30,2022 and $125,351 for the same period in 2021.

 

Other income (expenses) for the three-month period ended June 30, 2022 were $82,685 and $35,821 for the same quarter in 2021. The increase in other expenses was primarily due to an increase in Gain (loss) on Stocks Held or Sold of $80,717.

 

Interest expense for the three months ended June 30, 2022 and 2021 was $872 and $2,308, respectively.

 

Six months ended June 30, 2022, Compared to the Six months ended June 30, 2021

 

For the six months ended June 30, 2022, revenues were $2,707 and $12,325 for the same period in 2021.

 

Revenues for the six months ended June 30, 2022 was significantly lower compared to the same period in 2021 primarily due to loss of advertising income from related party earned, as well as for drop in publishing and distributing.

 

 
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Operating expenses were $254,507 for the six months ended June 30,2022 and $264,415 for the same period in 2021.

 

Other income(expenses) for the six-month period ended June 30, 2022 were ($258,622) and $14,723 for the same period in 2021. The increase in other expenses was primarily due to an increase in Gain (loss) on Stocks Held or Sold.

 

Interest expense for the three months ended June 30, 2022 and 2021 was $1,438 and $3,250, respectively.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of June 30, 2022, Crown Equity had current assets of $438,396and current liabilities of $1,212,645 resulting in working capital deficit of $1,174,249. Net cash  used by operating activities for the six months ended June 30, 2022, was $50,779compared to net cash used of $15,557 for the same period in 2021.

 

Net cash provided by investing activities was $37,000 and $0 for the six months ended June 30, 2022, and 2021, respectively.

 

Net cash provided by financing activities during the six months ended June 30, 2022, was $16,077 compared to net cash provided of $15,372 for the same period in 2021. For the six months ended June 30, 2022, we borrowed $14,500 from related parties compared to $18,616 for the same period in 2021.

 

Our existing capital may not be sufficient to meet Crown Equity's cash needs, including the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934, as amended. This condition raises substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

 

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a "smaller reporting company" as defined by Item 12b-2 of the securities exchange act of 1934 (the "exchange act") and are not required to provide information required under this Item.

 

ITEM 4: CONTROLS AND PROCEDURES

 

(a) Evaluation of Disclosure Controls and Procedures

 

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of material weaknesses in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weaknesses relate to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO and CFO also do not possess accounting expertise and our company does not have an audit committee. These material weaknesses are due to the company's lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
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PART II – OTHER INFORMATION

 

ITEM 1: LEGAL PROCEEDINGS.

 

For information regarding legal proceedings, see Note 7, "Commitments and Contingencies – Legal Matters" in the Notes to our Condensed Consolidated Financial Statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

 

ITEM 1A: RISK FACTORS.

 

There have been no material changes to Crown Equity's risk factors as previously disclosed in our most recent 10-K filing for the year ended December 31, 2021.

 

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

During the six months ended June 30, 2022, Crown Equity issued 28,000 shares for cash at $0.50 per share of common stock for operating capital

 

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

 

None

 

ITEM 4: MINE SAFETY INFORMATION.

 

None

 

ITEM 5: OTHER INFORMATION.

 

None

 

 
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ITEM 6: EXHIBITS

 

EXHIBIT 31.1

 

Certification of Principal Executive Officer

 

EXHIBIT 31.2

 

Certification of Principal Financial Officer

 

EXHIBIT 32.1

 

Certification of Compliance to Sarbanes-Oxley

 

EXHIBIT 32.2

 

Certification of Compliance to Sarbanes-Oxley

 

 

 

101.INS **

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

 

101.SCH **

 

Inline XBRL Taxonomy Extension Schema Document

 

101.CAL **

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

 

101.DEF **

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

 

101.LAB **

 

Inline XBRL Taxonomy Extension Label Linkbase Document

 

101.PRE **

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

104 **

 

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

____________

**

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

 
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SIGNATURES

 

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

CROWN EQUITY HOLDINGS INC.

 

Date: August 15, 2022

By:

/s/ Mike Zaman

 

Mike Zaman, CEO

 

By:

/s/ Kenneth Bosket

 

Kenneth Bosket, CFO

 

 
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