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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/20/20 Crown Equity Holdings, Inc. 10-Q 3/31/19 57:2.7M Discount Edgar/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 346K 2: EX-31.1 Certification -- §302 - SOA'02 HTML 25K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 25K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 19K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 19K 24: R1 Document and Entity Information HTML 58K 51: R2 Condensed Consolidated Balance Sheets HTML 82K 37: R3 Condensed Consolidated Balance Sheets HTML 40K (Parenthetical) 17: R4 Condensed Consolidated Statements of Operations HTML 55K (Unaudited) 25: R5 Condensed Consolidated Statements of Changes in HTML 55K Stockholders Deficit (Unaudited) 52: R6 Condensed Consolidated Statements of Cash Flows HTML 86K 38: R7 Nature of Business and Summary of Accounting HTML 82K Policies 16: R8 Going Concern HTML 21K 26: R9 Property and Equipment HTML 25K 53: R10 Finance Leases HTML 38K 40: R11 Notes Payable and Convertible Note Payables HTML 43K 22: R12 Commitments and Contingencies HTML 20K 30: R13 Related Party Transactions HTML 22K 54: R14 Stock Holders Deficit HTML 23K 41: R15 Income Taxes HTML 26K 23: R16 Subsequent Events HTML 25K 31: R17 Nature of Business and Summary of Accounting HTML 140K Policies (Policies) 55: R18 Nature of Business and Summary of Accounting HTML 57K Policies (Tables) 39: R19 Property and Equipment (Tables) HTML 24K 13: R20 Finance Leases (Tables) HTML 39K 32: R21 Notes Payable and Convertible Note Payables HTML 38K (Tables) 48: R22 Income Taxes (Tables) HTML 23K 45: R23 Nature of Business and Summary of Accounting HTML 31K Policies (Details) 14: R24 Nature of Business and Summary of Accounting HTML 19K Policies (Details 1) 33: R25 Nature of Business and Summary of Accounting HTML 41K Policies (Details 2) 49: R26 Nature of Business and Summary of Accounting HTML 27K Policies (Details 3) 46: R27 Nature of Business and Summary of Accounting HTML 29K Policies (Details Narrative) 12: R28 Going Concern (Details Narrative) HTML 22K 34: R29 Property and Equipment (Details) HTML 24K 29: R30 Property and Equipment (Details Narrative) HTML 26K 20: R31 Finance Leases (Details) HTML 33K 43: R32 Finance Leases (Details 1) HTML 27K 57: R33 Finance Leases (Details 2) HTML 34K 28: R34 Finance Leases (Details 3) HTML 21K 19: R35 Finance Leases (Details Narrative) HTML 38K 42: R36 Notes Payable and Convertible Note Payables HTML 60K (Details) 56: R37 Notes Payable and Convertible Note Payables HTML 66K (Details Narrative) 27: R38 Commitments and Contingencies (Details Narrative) HTML 22K 21: R39 Related Party Transactions (Details Narrative) HTML 35K 36: R40 Stockholders Equity (Details Narrative) HTML 45K 15: R41 Income Taxes (Details) HTML 25K 47: R42 Income Taxes (Details Narrative) HTML 21K 50: R43 Subsequent Events (Details Narrative) HTML 71K 18: XML IDEA XML File -- Filing Summary XML 98K 44: EXCEL IDEA Workbook of Financial Reports XLSX 49K 6: EX-101.INS XBRL Instance -- crwe-20190331 XML 729K 9: EX-101.CAL XBRL Calculations -- crwe-20190331_cal XML 54K 11: EX-101.DEF XBRL Definitions -- crwe-20190331_def XML 327K 8: EX-101.LAB XBRL Labels -- crwe-20190331_lab XML 603K 10: EX-101.PRE XBRL Presentations -- crwe-20190331_pre XML 516K 7: EX-101.SCH XBRL Schema -- crwe-20190331 XSD 131K 35: ZIP XBRL Zipped Folder -- 0001477932-20-000860-xbrl Zip 95K
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION
REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934 |
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.) |
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 x 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 | x |
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 x No ¨ As of February 19, 2020,
the number of shares outstanding of the registrant’s class of common stock was 11,806,766. |
Page | ||||
Item
1. | Financial Statements (Unaudited) | 3 | ||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 | ||||
18 | ||||
19 | ||||
19 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
21 | ||||
22 |
2 |
· | 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; |
3 |
Dec
31, 2018 | ||||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current
assets | ||||||||
Cash | $ | 1,580 | $ | 13,294 | ||||
Total
Current Assets | 1,580 | 13,294 | ||||||
Property
and Equipment, net | 53,050 | 50,565 | ||||||
Total Assets | $ | 54,630 | $ | 63,859 | ||||
Liabilities
and Stockholders’ Deficit | ||||||||
Current liabilities | ||||||||
Accounts payable
and accrued expenses | $ | 202,105 | $ | 207,125 | ||||
Accounts payable to related party | 66,408 | 61,156 | ||||||
Deferred
revenue – Related Party | 50,000 | 50,000 | ||||||
Convertible notes payable to related parties, net of discount | 20,869 | 13,040 | ||||||
Convertible
notes payable, net of discount | - | 8,498 | ||||||
Finance lease obligation, current | 22,880 | 10,403 | ||||||
Total
Current Liabilities | 362,262 | 350,222 | ||||||
Non-Current
liabilities | ||||||||
Finance lease obligation, long term | 37,608 | 42,879 | ||||||
Total
Liabilities | 399,870 | 393,101 | ||||||
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 | 1 | 1 | ||||||
Common Stock, 450,000,000 authorized at $0.001 par value; 11,856,766 and 11,823,389 shares issued and outstanding as of March 31, 2019 and December
31, 2018, respectively | 11,856 | 11,823 | ||||||
Stock Payable | 25,008 | 18,756 | ||||||
Additional
paid-in capital | 11,314,357 | 11,279,211 | ||||||
Accumulated deficit | (11,696,462 | ) | (11,639,033 | ) | ||||
Total
stockholders’ deficit | (345,240 | ) | (329,242 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 54,630 | $ | 63,859 |
Three Months Ended | ||||||||
2019 | 2018 | |||||||
Revenues | $ | 682 | $ | 1,696 | ||||
Revenues
– Related Party | - | 4,100 | ||||||
Total Revenues | 682 | 5,796 | ||||||
Operating
expenses | ||||||||
Depreciation | 7,501 | 7,223 | ||||||
General
and Administrative | 33,453 | 28,007 | ||||||
Total Operating Expenses | 40,954 | 35,230 | ||||||
Net
Operating Loss | (40,272 | ) | (29,434 | ) | ||||
Other
(expense) income | ||||||||
Interest expense | (4,839 | ) | (2,623 | ) | ||||
Amortization
of beneficial conversion feature | (12,318 | ) | (3,200 | ) | ||||
Total other expense | (17,157 | ) | (5,823 | ) | ||||
Net
loss | $ | (57,429 | ) | $ | (35,257 | ) | ||
Net
loss per common share – basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted
average number of common shares outstanding - basic and diluted | 11,830,192 | 11,461,206 |
5 |
Preferred
Stock | Common Stock | Common Stock | Additional Paid-In | Accumulated | Total Stockholders' | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Payable | Capital | Deficit | (Deficit) | |||||||||||||||||||||||||
Balances
at December 31, 2018 | 1,000 | $ | 1 | 11,823,389 | $ | 11,823 | $ | 18,756 | $ | 11,279,211 | $ | (11,639,033 | ) | $ | (329,242 | ) | ||||||||||||||||
Notes
Payable Converted to Common Stock | - | - | 23,377 | 23 | 13,176 | - | 13,199 | |||||||||||||||||||||||||
Common
stock issued for cash | - | - | 10,000 | 10 | 4,990 | - | 5,000 | |||||||||||||||||||||||||
Common
Stock Subscribed for services | - | - | - | - | 6,252 | - | - | 6,252 | ||||||||||||||||||||||||
Forgiveness
of Interest – Related Party | - | - | - | - | - | 9,282 | - | 9,282 | ||||||||||||||||||||||||
Compensation
Expense | - | - | - | - | - | 7,698 | - | 7,698 | ||||||||||||||||||||||||
Net
loss | - | - | - | - | - | (57,429 | ) | (57,429 | ) | |||||||||||||||||||||||
Balances
at March 31, 2019 | 1,000 | $ | 1 | 11,856,766 | $ | 11,856 | $ | 25,008 | $ | 11,314,357 | $ | (11,696,462 | ) | $ | (345,240 | ) | ||||||||||||||||
For
the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||
Common | Additional | Total | ||||||||||||||||||||||||||||||
Preferred
Stock | Common Stock | Stock | Paid-In | Accumulated | Stockholders' | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Payable | Capital | Deficit | (Deficit) | |||||||||||||||||||||||||
Balance,
December 31, 2017 | 1,000 | $ | 1 | 11,461,137 | $ | 11,461 | $ | - | $ | 11,029,958 | $ | (11,264,213 | ) | $ | (222,793 | ) | ||||||||||||||||
Common
stock issued for services | - | - | 6,252 | 6 | 6,246 | -- | 6,252 | |||||||||||||||||||||||||
Debt
Discount | 5,235 | 5,235 | ||||||||||||||||||||||||||||||
Net
loss | - | - | -- | -- | -- | (35,257 | ) | (35,257 | ) | |||||||||||||||||||||||
Balance,
March 31, 2018 | 1,000 | $ | 1 | 11,467,389 | $ | 11,467 | $ | - | $ | 11,036,204 | $ | (11,299,470 | ) | $ | (246,563 | ) |
6 |
Three Months Ended | ||||||||
2019 | 2018 | |||||||
Cash
flows from operating activities | ||||||||
Net loss | $ | (57,429 | ) | $ | (35,257 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating activities: | ||||||||
Non-cash Compensation Expense | 13,950 | 6,252 | ||||||
Depreciation | 7,501 | 7,223 | ||||||
Amortization
of beneficial conversion feature | 12,318 | 3,200 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts
payable and accrued expenses – related party | 5,252 | 10,309 | ||||||
Accounts payable and accrued expenses | 5,708 | 2,809 | ||||||
Net
cash (used in) operating activities | (12,700 | ) | (5,464 | ) | ||||
Cash
used in financing activities | ||||||||
Cash
flows from financing activities | ||||||||
Payments on convertible notes payable, related party | (1,300 | ) | (392 | ) | ||||
Borrowings
from convertible notes payable, related party | - | 2,235 | ||||||
Borrowings from convertible notes payable | - | 3,000 | ||||||
Proceeds
from Sale of Stock | 5,000 | - | ||||||
Payments on notes payable | (2,714 | ) | - | |||||
Net
cash provided by financing activities | 986 | 4,843 | ||||||
Net
increase (decrease) in cash | (11,714 | ) | (641 | ) | ||||
Cash, beginning of period | 13,294 | 1,862 | ||||||
Cash,
end of period | $ | 1,580 | $ | 1,241 | ||||
Supplemental
disclosure of cash flow information | ||||||||
Interest paid | $ | 2,022 | $ | 2,022 | ||||
Income
taxes paid | - | - | ||||||
Non-Cash
Transactions | ||||||||
Beneficial conversion feature discount on convertible notes | $ | - | $ | 5,235 | ||||
Forgiveness
of Interest – Related Party | 9,282 | - | ||||||
Purchase of fixed assets through finance lease | 9,985 | - | ||||||
Debt
converted to common stock | 13,199 | - |
7 |
8 |
9 |
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. |
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. |
Third Party | Related
Party | Total | Third Party | Related
Party | Total | |||||||||||||||||||
IT
Services on Company Server | $ | - | $ | - | $ | - | $ | - | $ | 4,000 | $ | 4,000 | ||||||||||||
Click
Based and Impressions Ads | $ | 122 | - | 122 | $ | 805 | - | 805 | ||||||||||||||||
Domain
Registrations | 10 | - | 10 | 5 | - | 5 | ||||||||||||||||||
Publishing
and Distribution | 550 | - | 550 | 100 | 100 | |||||||||||||||||||
Server | $ | - | $ | - | $ | - | $ | 886 | $ | - | $ | 886 | ||||||||||||
$ | 682 | $ | - | $ | 682 | $ | 1,696 | $ | 4,100 | $ | 5,796 |
March
31, | Dec 31, | |||||||
2019 | 2018 | |||||||
Deferred
Revenue | $ | 50,000 | $ | 50,000 |
10 |
Three
Months | Three Months | |||||||
Numerator: | ||||||||
Net
(Loss) attributable to common shareholders of Crown Equity Holdings, Inc. | $ | (57,429 | ) | $ | (35,257 | ) | ||
Net (Loss) attributable to Crown Equity Holdings, Inc. | $ | (57,429 | ) | $ | (35,257 | ) | ||
Denominator: | ||||||||
Weighted
average common and common equivalent shares outstanding – basic and diluted | 11,830,192 | 11,461,206 | ||||||
Earnings
(Loss) per Share attributable to Crown Equity Holdings, Inc.: | ||||||||
Basic | $ | (0.00 | ) | $ | (0.00 | ) | ||
Diluted | $ | (0.00 | ) | $ | (0.00 | ) |
11 |
2019 | Dec
31, 2018 | |||||||
Net operating loss | $ | 409,295 | $ | 399,821 | ||||
Valuation allowance | (409,295 | ) | (369,821 | ) | ||||
Net
deferred tax asset | - | - |
12 |
2019 | Dec
31, 2018 | |||||||
Computers – 3 year estimated useful life | $ | 96,669 | $ | 86,684 | ||||
Less – Accumulated Depreciation | (43,619 | ) | (36,119 | ) | ||||
Property
and Equipment, net | $ | 53,050 | $ | 50,565 |
¨ | A $1,505 note from a third party
for the lease of fixed assets, bearing interest at 17%, amortized over 36 months with monthly payments of $54. The lease has a bargain purchase option of $1 at the end of the lease term. | |
¨ | A $56,542 note from a third party for the lease of fixed assets, bearing interest at 17%, amortized over 60 months with monthly payments of $1,186. The lease has a bargain purchase option of $1 at the end of the lease term. | |
¨ | A
$9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with monthly payments of $518. The lease has a bargain purchase option of $1 at the end of the lease term. |
Assets | 2019 | |||
Leased equipment under finance lease, | $ | 96,669 | ||
less accumulated amortization | (43,619 | ) | ||
Net | $ | 53,050 |
Liabilities | 2019 | |||
Obligations under finance lease (current) | $ | 22,880 | ||
Obligations under finance lease (noncurrent) | 37,608 | |||
Total | $ | 60,488 |
13 |
Finance Leases | ||||
Leased
asset balance | $ | 53,050 | ||
Liability balance | 60,488 | |||
Cash flow (operating) | — | |||
Cash
flow (financing) | 2,714 | |||
Interest expense | $ | 1,144 |
Years
ended December 31 | Finance Leases | |||
2019 * | 15,822 | |||
2020 | 27,974 | |||
2021 | 15,938 | |||
2022 | 11,860 | |||
Thereafter | - | |||
Total | 71,594 | |||
Less:
Imputed Interest | (11,106 | ) | ||
Total Liability | 60,488 |
Lease Type | Weighted Average Remaining Term | Weighted
Average Discount Rate (1) | ||||
Finance Leases | 2.5 years | 16 | % |
14 |
Original | Due | Interest | Conversion | Dec
31, | ||||||||||||
Name | Note Date | Date | Rate | Rate | 2018
| |||||||||||
Related
Party: | ||||||||||||||||
11/15/2017 | 11/15/2018 | 12 | % | $ | 0.50 | 270 | ||||||||||
11/27/2017 | 11/27/2018 | 12 | % | $ | 0.50 | 460 | ||||||||||
11/30/2017 | 11/30/2018 | 12 | % | $ | 0.50 | 1,000 | ||||||||||
01/19/2018 | 01/19/2019 | 12 | % | $ | 0.50 | 450 | ||||||||||
Montse
Zaman | 06/07/2018 | 06/07/2019 | 12 | % | $ | 0.50 | 293 | |||||||||
Munti
Consulting LLC | 10/03/2018 | 10/03/2019 | 10 | % | $ | 0.50 | 35,000 | |||||||||
Munti
Consulting LLC | 12/19/2018 | 12/19/2019 | 10 | % | $ | 0.50 | 10,000 | |||||||||
Total
Convertible Related Party Notes Payable | 47,473 | |||||||||||||||
Less:
Debt Discount | (26,602 | ) | ||||||||||||||
Convertible
Notes Payable, net of Discount - Related Party | 20,869 |
15 |
¨ | 10,000
common shares for cash proceeds of $5,000, | |
¨ | 23,377 shares issued for conversion of $13,199 in notes. The notes were converted in accordance with the terms of the note and the Company recorded no gain or loss on the conversions. |
16 |
2019 | 2018 | |||||||
Net
operating loss | $ | 409,295 | $ | 399,821 | ||||
Valuation allowance | (409,295 | ) | (399,821 | ) | ||||
Net
deferred tax asset | $ | - | $ | - |
17 |
18 |
19 |
20 |
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(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. |
21 |
CROWN EQUITY HOLDINGS INC. | |||
Date:
February 20, 2020 | By: | /s/ Mike Zaman | |
Mike Zaman, CEO | |||
By: | /s/
Kenneth Bosket | ||
Kenneth Bosket, CFO |
This ‘10-Q’ Filing | Date | Other Filings | ||
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