UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended

June 30, ~~2019~~

2020

¨ ☐	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 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~~“large accelerated ~~filer"~~filer”, ~~"accelerated filer"~~“accelerated filer”, ~~"smaller~~“smaller reporting ~~company"~~company”, and ~~"emerging~~“emerging growth ~~company"~~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

☒ No

☐

As of ~~March 5,~~August 11, 2020, the number of shares outstanding of the registrant’s class of common stock was ~~11,806,766.~~

12,498,854.

TABLE OF CONTENTS

		Page
PART I: FINANCIAL INFORMATION		3

Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets as of June 30, ~~2019~~2020 (Unaudited) and December 31, ~~2018 (Unaudited)~~2019 (Audited)	4
	Condensed Consolidated Statements of Operations for the Three and Six ~~months~~Months Ended June 30, 2020 and 2019 ~~and 2018~~ (Unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three and Six ~~months~~Months Ended June 30, 2020 and 2019 ~~and 2018~~ (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Six ~~months~~Months Ended June 30, 2020 and 2019 ~~and 2018~~ (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9

Item 2.	Management’s Discussion and Analysis and Plan of Operation	20 24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22 26

Item 4.4T.	Controls and Procedures	22 26

PART II: OTHER INFORMATION		23 27

Item 1.	Legal Proceedings	23 27

Item 1A.	Risk Factors	23 27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23 27

Item 3.	Defaults upon Senior Securities	23 27

Item 4.	Mine Safety Information	23 27

Item 5.	Other Information	23 27

Item 6.	Exhibits	24 28

Signatures		25 29

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, ~~2018,~~2019, 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 ourcontrolling 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.

Table of Contents

Crown Equity Holdings Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,
2019

Dec 31,
2018

(Unaudited)
Assets
Current assets

Cash $ 3,499 $ 13,294
Total Current Assets
3,499 13,294

Property and Equipment, net 44,994 50,565
Total Assets
$ 48,493 $ 63,859

Liabilities and Stockholders Deficit
Current liabilities

Accounts payable and accrued expenses $ 211,402 $ 207,125
Accounts payable to related party 70,660 61,156
Deferred revenue Related Party - 50,000
Convertible notes payable to related parties, net of discount 1,521 13,040
Convertible notes payable, net of discount - 8,498
Finance lease obligation, current 23,714 10,403
Total Current Liabilities
307,297 350,222

Non-Current liabilities

Finance lease obligation, long term 32,905 42,879
Total Liabilities
340,202 393,101

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; 11,952,766 and 11,823,389 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively 11,952 11,823
Stock Payable 51,260 18,756
Additional paid-in capital 11,360,917 11,279,211
Accumulated deficit (11,715,839 ) (11,639,033 )
Total stockholders deficit
(291,709 ) (329,242 )
Total liabilities and stockholders deficit
$ 48,493 $ 63,859

	Jun 30, 2020			Dec 31, 2019
	(Unaudited)
Assets
Current assets
Cash	$	5,035		$	997
Total Current Assets		5,035			997
Property and Equipment, net		12,815			28,882
Total Assets	$	17,850		$	29,879

Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses	$	159,398		$	210,223
Accounts payable and accrued expenses to related party		239,144			80,664
Convertible notes payable to related parties, net of discount		9,800			760
Convertible notes payable, net of discount		17,633			-
Finance lease obligation, current		29,778			30,681
Total Current Liabilities	$	455,753		$	322,328

Non-Current liabilities
Finance lease obligation, non-current		17,408			25,976
EIDL Loan		4,000			-
Total Liabilities	$	477,161		$	348,304

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; 12,424,870 and 11,766,766 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively		12,423			11,766
Stock Payable		-			43,764
Additional paid-in capital		12,240,785			11,418,103
Accumulated deficit		(12,712,520	)		(11,792,059	)
Total stockholders’ deficit		(459,311	)		(318,425	)
Total liabilities and stockholders’ deficit	$	17,850		$	29,879

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Table of Contents

Crown Equity Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2019

2018

2019

2018

Revenue $ 2,363 $ 990 $ 3,045 $ 2,686
Revenue – related party 50,000 2,000 50,000 6,100
Total Revenue
52,363 2,990 53,045 8,786

Operating expenses

Depreciation 8,055 7,224 15,556 14,447
General and Administrative 33,275 46,373 66,728 74,380
Total Operating Expenses 41,330 53,597 82,284 88,827

Net Operating Income (Loss)
11,033 (50,607 ) (29,239 ) (80,041 )

Other expense

Interest expense (3,808 ) (3,136 ) (8,647 ) (5,759 )
Amortization of beneficial conversion feature (26,602 ) (3,745 ) (38,920 ) (6,945
Total other expense
(30,410 ) (6,881 ) (47,567 ) (12,704 )

Net (loss)
$ (19,377 ) $ (57,488 ) $ (76,806 ) $ (92,745 )

Net (loss) per common share – basic and diluted
$ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 )

Weighted average number of common shares outstanding - basic and diluted
11,889,981 11,478,993 11,845,939 11,468,497

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019

Revenue	$	500		$	2,363		$	1,077		$	3,045
Revenue – related party		-			50,000			-			50,000
Total Revenue		500			52,363			1,077			53,045

Operating expenses
Depreciation		8,034			8,055			16,067			15,556
General and Administrative		313,035			33,275			356,430			66,728
Total Operating Expenses		321,069			41,330			372,497			82,284
Net Operating Income (Loss)		(320,569	)		11,033			(371,420	)		(29,239	)

Other (expense)
Interest expense		(3,007	)		(3,808	)		(6,707	)		(8,647	)
Amortization of beneficial conversion feature		-			(26,602	)					(38,920	)
Loss on AP Settlement – related party		(115,347	)		-			(542,334	)		-
Total other expense		(118,354	)		(30,410	)		(549,041	)		(47,567	)
Net (loss)	$	(438,923	)	$	(19,377	)	$	(920,461	)	$	(76,806	)

Net (loss) per common share – basic and diluted	$	(0.04	)	$	(0.00	)	$	(0.08	)	$	(0.01	)
Weighted average number of common shares outstanding - basic and diluted		12,192,294			11,889,981			12,099,562			11,845,939

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(Unaudited)

For the Three ~~months~~Months Ended June 30, ~~2019~~

Preferred Stock

Common Stock

Common
Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balances at March 31, 2019 1,000 $ 1 11,856,766 $ 11,856 $ 25,008 $ 11,314,357 $ (11,696,462 ) $ (345,240 )
Notes Payable and Accrued Interest Converted to Common Stock - - 90,000 90 - 43,566 - 43,656
Common stock issued for cash - - 6,000 6 20,000 2,994 - 23,000
Common Stock Subscribed for services - - - - 6,252 - - 6,252
Net loss - - - - - - (19,377 ) (19,377 )
Balances at June 30, 2019 1,000 $ 1 11,952,766 $ 11,952 $ 51,260 $ 11,360,917 $ (11,715,839 ) $ (291,709 )

2020

	Preferred Stock				Common Stock				Common Stock			Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Payable			Capital		Deficit			(Deficit)

Balances at March 31, 2020		1,000	$	1		12,160,118	$	12,159	$	1,500		$	11,986,012	$	(12,273,597	)	$	(273,925	)
Common Stock issued for cash		-		-		20,000	$	20	$	-		$	9,980	$	-		$	10,000
Common Stock for services – Third Party		-		-		4,500	$	4	$	(1,500	)	$	4,496		-		$	3,000
Common Stock for services – Related Party		-		-		6,252	$	6	$	-		$	6,246	$	-		$	6,252
Settlement of board member compensation		-		-		160,000	$	160	$	-		$	79,840	$	-		$	80,000
Settlement of AP – Third Party		-		-		74,000	$	74	$	-		$	36,926	$	-		$	37,000
Warrant Subscriptions		-		-		-	$	-	$	-		$	285	$	-		$	285
Loss on AP Settlement – Third Party		-		-		-	$	-	$	-		$	117,000	$	-		$	117,000
Net loss		-		-		-		-		-			-		(438,923	)		(438,923	)
Balances at June 30, 2020		1,000	$	1		12,424,870	$	12,423	$	-		$	12,240,785	$	(12,712,520	)	$	(459,311	)

For the Six ~~months~~Months Ended June 30, ~~2019~~

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 and Accrued Interest Converted to Common Stock - - 113,377 113 - 56,782 - 56,895
Common stock issued for cash - - 16,000 16 20,000 7,944 - 27,960
Common Stock Subscribed for services - - - - 12,504 - - 12,504
Forgiveness of Interest – Related Party - - - - - 9,282 - 9,282
Compensation Expense - - - - - 7,698 - 7,698
Net loss - - - - - - (76,806 ) (76,806 )
Balances at June 30, 2019 1,000 $ 1 11,952,766 $ 11,952 $ 51,260 $ 11,360,917 $ (11,715,839 ) $ (291,709 )
2020

	Preferred Stock				Common Stock				Common Stock			Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Payable			Capital		Deficit			(Deficit)

Balances at December 31, 2019		1,000	$	1		11,766,766	$	11,766	$	43,764		$	11,418,103	$	(11,792,059	)	$	(318,425	)
Common Stock issued for cash		-		-		60,000	$	60	$	-		$	29,940	$	-		$	30,000
Common Stock for services – Third Party		-		-		4,500		4	$	(1,500	)	$	4,496		-		$	3,000
Common Stock for services – related party		-		-		154,671	$	154	$	(42,264	)	$	56,114	$	-		$	14,004
Officer Compensation		-		-		160,000	$	160	$	-		$	79,840	$	-		$	80,000
Settlement of AP – Third Party		-		-		74,000	$	74	$	-		$	36,926	$	-		$	37,000
Settlement of AP – Related Party		-		-		204,933	$	205	$	-		$	63,819	$	-		$	64,024
Warrant Subscriptions		-		-		-	$	-	$	-		$	360	$	-		$	360
Loss on AP Settlement – Third Party		-		-		-	$	-	$	-		$	117,000	$	-		$	117,000
Loss on AP Settlement – Related Party		-		-		-	$	-	$	-		$	426,987	$	-		$	426,987
Forgiveness of AP by CEO		-		-		-	$	-	$	-		$	7,200	$	-		$	7,200
Net loss		-		-		-		-		-			-		(920,461	)		(920,461	)
Balances at June 30, 2020		1,000	$	1		12,424,870	$	12,423	$	-		$	12,240,785	$	(12,712,520	)	$	(459,311	)

Table of Contents

For the Three ~~months~~Months Ended June 30, ~~2018~~

Preferred Stock

Common Stock

Common
Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balance, March 31, 2018 1,000 $ 1 11,467,389 $ 11,467 $ - $ 11,041,439 $ (11,299,470 ) $ (246,563 )
Common stock issued for cash - - 22,000 22 - 10,978 - 11,000
Debt Discount - - - - - 1,460 - 1,460
Common Stock Payable - - - - 20,362 - - 20,362
Net loss - - - - - - (57,488 ) (57,488 )
Balance, June 30, 2018 1,000 $ 1 11,489,389 $ 11,489 $ 20,362 $ 11,053,877 $ (11,356,958 ) $ (271,229 )

2019

	Preferred Stock				Common Stock				Common Stock		Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Payable		Capital		Deficit			(Deficit)

Balances at March 31, 2019		1,000	$	1		11,856,766	$	11,856	$	25,008	$	11,314,357	$	(11,696,462	)	$	(345,240	)
Notes Payable and Accrued Interest Converted to Common Stock		-		-		90,000	$	90	$	-	$	43,566	$	-		$	43,656
Common stock issued for cash		-		-		6,000	$	6	$	20,000	$	2,994	$	-		$	23,000
Common Stock Subscribed for services		-		-		-	$	-	$	6,252	$	-	$	-		$	6,252
Net loss		-		-		-		-		-		-		(19,377	)		(19,377	)
Balances at June 30, 2019		1,000	$	1		11,952,766	$	11,952	$	51,260	$	11,360,917	$	(11,715,839	)	$	(291,709	)

For the Six ~~months~~Months Ended June 30, ~~2018~~

Preferred Stock

Common Stock

Common
Stock

Additional
Paid-In

Accumulated

Total
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
Common stock issued for cash - - 22,000 22 - 10,978 - 11,000
Debt Discount - - - - - 6,695 - 6,695
Common stock payable - - - - 20,362 - - 20,362
Net loss - - - - - - (92,745 ) (92,745 )
Balance, June 30, 2018 1,000 $ 1 11,489,389 $ 11,489 $ 20,362 $ 11,053,877 $ (11,356,958 ) $ (271,229 )
~~The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements~~
7
~~Table of Contents~~
~~Crown Equity Holdings, Inc.~~
~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS~~
~~(Unaudited)~~

Six months Ended

June 30,

2019

2018

Cash flows from operating activities

Net loss $ (76,806 ) $ (92,745 )
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash Compensation Expense 20,202 26,617
Depreciation 15,556 14,447
Amortization of beneficial conversion feature 38,920 6,945
Changes in operating assets and liabilities:
Deferred revenue (50,000 ) -
Accounts payable and accrued expenses – related party 9,504 16,061
Accounts payable and accrued expenses 13,728 10,763
Net cash (used in) operating activities (28,896 ) (17,912 )

Cash used in financing activities

Purchase of property and equipment - -
Net cash (used in) operating activities - -

Cash flows from financing activities

Payments on convertible notes payable, related party (2,250 ) (360 )
Borrowings from convertible notes payable, related party - 3,695
Borrowings from convertible notes payable - 3,000
Proceeds from Sale of Stock 28,000 11,000
Payments on notes payable (6,649 ) (970 )
Net cash provided by financing activities 19,087 16,365

Net increase (decrease) in cash
(9,795 ) (1,547 )
Cash, beginning of period
13,294 1,862
Cash, end of period
$ 3,499 $ 315

Supplemental disclosure of cash flow information

Interest paid $ 5,147 $ 4,585
Income taxes paid - -

Non-Cash Transactions

Beneficial conversion feature discount on convertible notes $ - $ 6,695
Forgiveness of Interest – Related Party 9,282 -
Purchase of fixed assets through finance lease 9,985 -
Debt converted to common stock 56,895 -

2019

	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 and Accrued Interest Converted to Common Stock		-		-		113,377	$	113	$	-	$	56,782	$	-		$	56,895
Common stock issued for cash		-		-		16,000	$	16	$	20,000	$	7,944	$	-		$	27,960
Common Stock Subscribed for services		-		-		-	$	-	$	12,504	$	-	$	-		$	12,504
Forgiveness of Interest – Related Party		-		-		-	$	-	$	-	$	9,282	$	-		$	9,282
Compensation Expense		-		-		-	$	-	$	-	$	7,698	$	-		$	7,698
Net loss		-		-		-		-		-		-		(76,806	)		(76,806	)
Balances at June 30, 2019		1,000	$	1		11,952,766	$	11,952	$	51,260	$	11,360,917	$	(11,715,839	)	$	(291,709	)

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months Ended
	June 30,
	2020			2019
Cash flows from operating activities
Net loss	$	(920,461	)	$	(76,806	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services		17,003			20,202
Common stock issued for Settlement of Board Member Compensation		80,000			-
Depreciation		16,067			15,556
Loss on AP Settlement		543,987			-
Amortization of beneficial conversion feature		-			38,920
Changes in operating assets and liabilities:
Deferred revenue		-			(50,000	)
Accounts payable and accrued expenses – related party		75,033			9,504
Accounts payable and accrued expenses		158,480			13,728
Net cash (used in) operating activities		(29,891	)		(28,896	)

Cash used in investing activities		-			-

Cash flows from financing activities
Payments on convertible notes payable, related party		(1,460	)		(2,250	)
Borrowings from convertible notes payable, related party		10,500			-
Proceeds from Sale of Stock		30,000			28,000
Proceeds from EIDL loan		4,000			-
Principal payments on debt		(9,471	)		(6,649	)
Warrant Subscriptions		360			-
Net cash provided by financing activities		33,929			19,087

Net increase (decrease) in cash		4,038			(9,795	)
Cash, beginning of period		997			13,294
Cash, end of period	$	5,035		$	3,499

Supplemental disclosure of cash flow information
Interest paid	$	6,707		$	5,147
Income taxes paid		-			-

Non-Cash Transactions
Forgiveness of AP by CEO	$	7,200		$	-
Forgiveness of Interest – Related Party		-			9,282
Purchase of fixed assets through finance lease		-			9,985
Debt converted to common stock		-			56,895
Convertible debt for payment of AP		17,633			-
RP-AP Converted into common stock		64,024			-
AP Converted into common stock – Third Party		37,000			-
Shares issued for stock payable		43,764			-

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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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"~~Equity” or the ~~"Company"~~“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'~~Holdings’ objective is making its endeavor known as CRWE WORLD into a global online news and information source, as well as a global 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 AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale.

Basis of Preparation

The accompanying ~~consolidated~~ 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 ~~consolidated~~ financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, the ~~consolidated~~ 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.

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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~~ (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 ~~consolidated~~ 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 ~~six~~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~~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.

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	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.

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,
2019
Six Months Ended June 30, 2018

Third
Party

Related
Party

Total

Third
Party

Related
Party

Total

Advertising $ 2,000 $ 50,000 $ 52,000 $ - $ - $ -
IT Services on Company Server $ - $ - $ - $ - $ 6,000 $ 6,000
Click Based and Impressions Ads $ 294 - 294 $ 1,488 - 1,488
Domain Registrations 11 - 11 12 - 12
Publishing and Distribution 740 - 740 300 100 400
Server $ - $ - $ - $ 886 $ - $ 886
$ 3,045 $ 50,000 $ 53,045 $ 2,686 $ 6,100 $ 8,786

	Six Months Ended Jun 30, 2020						Six Months Ended Jun 30, 2019
	Third Party		Related Party		Total		Third Party		Related Party		Total

Advertising	$	-	$	-	$	-	$	2,000	$	50,000	$	52,000
Click Based and Impressions Ads		222		-		222		294		-		294
Domain Registrations		-		-		-		11		-		11
Publishing and Distribution		855		-		855		740		-		740
Server		-		-		-		-		-		-
	$	1,077	$	-	$	1,077	$	3,045	$	50,000	$	53,045

Revenue is based on providing through the Company’s server services, Managed Information Technology, 24/7 support, which includes designing, developing, testing, maintaining functionality, infrastructure monitoring, managing and hosting, combined with revenue received from the display of click based and impressions ads located on the Company’s websites, domain name registration, publishing and distribution of news and press ~~releases.v~~

June 30,

Dec 31,

2019

2018

Deferred Revenue $ - $ 50,000

releases.

	Jun 30,		Jun 30,
	2020		2019

Deferred Revenue	$	-	$	-

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.

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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, ~~2019~~2020 and December 31, ~~2018.~~

2019.

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Risk Concentrations

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

During the period ending June 30, 2020, 100% of the Company’s revenues were from third parties for the displaying of click based and impressions ads located on the company’s websites, as well as for press releases and article publishing and distribution by the Company. During the period ending June 30, 2019, 98% of the Company’s revenues were received through advertisements, which 96% of the advertisement revenue was received through a related party. The remaining 2% of the remaining total revenues were from third parties for the displaying of click based and impressions ads located on the company’s websites as well as for press releases and article publishing and distribution by the Company.

General and Administrative Expenses

Crown ~~Equity's~~Equity’s general and administrative expenses consisted of the following types of expenses during ~~2019~~2020 and ~~2018:~~2019: Compensation expense, ~~payroll expense, rent,~~auto, travel and entertainment, legal and accounting, utilities, web sites, 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 ~~2019~~2020 or ~~2018.~~

2019.

Basic and Diluted Net (Loss) per Share

Six months
June 30, 2019

Six months
June 30, 2018

Numerator:

Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (76,806 ) $ (92,745 )
Net (Loss) attributable to Crown Equity Holdings, Inc. $ (76,806 ) $ (92,745 )

Denominator:

Weighted average common and common equivalent shares outstanding – basic and diluted 11,845,939 11,468,497

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

Basic $ (0.01 ) $ (0.01 )
Diluted $ (0.01 ) $ (0.01 )

	Six Months Jun 30, 2020			Six Months Jun 30, 2019
Numerator:
Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc.	$	(920,461	)	$	(76,806	)
Net (Loss) attributable to Crown Equity Holdings, Inc.	$	(920,461	)	$	(76,806	)

Denominator:
Weighted average common and common equivalent shares outstanding – basic and diluted		12,099,562			11,845,939

Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.:
Basic	$	(0.08	)	$	(0.01	)
Diluted	$	(0.08	)	$	(0.01	)

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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, ~~2019~~2020 and ~~2018.~~2019. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended June 30, ~~2019~~2020 is ~~113,377.~~

14,401,520.

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 ~~2018~~2019 and ~~2019~~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 ~~30,2019,~~30, 2020, and December 31, ~~2018,~~2019, 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.

The Company’s deferred tax assets consisted of the following as of June 30, ~~2019~~2020 and December 31, ~~2018:~~

June 30,
2019

Dec 31,
2018

Net operating loss $ 407,778 $ 399,821
Valuation allowance (407,778 ) (369,821 )
Net deferred tax asset - -

2019:

	Jun 30, 2020			Dec 31, 2019
Net operating loss	$	495,975		$	416,916
Valuation allowance		(495,975	)		(416,916	)
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, ~~2019~~2020 and December 31, ~~2018.~~

2019.

Fair Value of Financial Instruments

The ~~Company's~~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 ~~consolidated~~ financial statements.

Research and Development

The Company spent no money for research and development cost for the periods ended June 30, ~~2019~~2020 and December 31, ~~2018.~~

2019.

Advertising Cost

The Company spent $0 for advertisement for the periods ended June 30, ~~2019~~2020 and ~~2018.~~

2019.

NOTE 2 – GOING CONCERN

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of ~~$11,715,839~~$12,712,520 since its inception and had a working capital deficit of ~~$258,804,~~$450,718, negative cash flows from operations and limited business operations as of June 30, ~~2019.~~2020. These conditions raise substantial doubt as to Crown ~~Equity's~~Equity’s ability to continue as a going concern. The ~~consolidated~~ financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

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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.

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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 at June 30, ~~2019~~2020 and December 31, ~~2018:~~

June 30,
2019

Dec 31,
2018

Computers – 3 year estimated useful life $ 107,669 $ 97,684
Less – Accumulated Depreciation (62,675 ) (47,119 )
Property and Equipment, net $ 44,994 $ 50,565

2019:

	Jun 30, 2020			Dec 31, 2019
Computers – 3 year estimated useful life	$	96,669		$	96,669
Less – Accumulated Depreciation		(83,854	)		(67,787	)
Property and Equipment, net	$	12,815		$	28,882

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was ~~$15,556,~~$16,067, and ~~$14,447~~$15,556 for the six months ended June 30, 2020 and 2019, ~~and 2018,~~ respectively.

NOTE 4

– FINANCE LEASES

During 2019, ~~and 2018,~~ the Company borrowed an aggregate $9,985 ~~and $58,047~~ under the following third-party and related party finance lease transactions:

	¨ ☐	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 a payments 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,
2019

Leased equipment under finance lease, $ 96,669
less accumulated amortization (51,675 )
Net $ 44,944

Liabilities

June 30,
2019

Obligations under finance lease (current) $ 23,714
Obligations under finance lease (noncurrent) 32,905
Total $ 56,619

Assets	Jun 30, 2020
Leased equipment under finance lease,	$	96,669
less accumulated amortization		(83,854	)
Net	$	12,815

Liabilities	Jun 30, 2020
Obligations under finance lease (current)	$	29,778
Obligations under finance lease (noncurrent)		17,408
Total	$	47,186

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Below is a reconciliation of leases to the financial statements.

Finance
Leases

Leased asset balance $ 44,944
Liability balance 56,619
Cash flow (operating) —
Cash flow (financing) 6,649
Interest expense $ 1,144

	Finance Leases
Leased asset balance	$	12,815
Liability balance		47,186
Cash flow (operating)		-
Cash flow (financing)		-
Interest expense	$	2,101

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

Years ended December 31

Finance Leases

2019 *
10,433
2020
27,974
2021
15,938
2022
11,860
Thereafter
-
Total
66,205
Less: Imputed Interest
(9,586 )

Total Liability

56,619

*Excludes six months ended June 30, 2019

Years ended December 31	Finance Leases
2020		28,585
2021		15,726
2022		11,860
Thereafter		-
Total		56,171
Less: Imputed Interest		(4,825	)
Total Liability		51,346

Other information related to leases is as follows:

Lease Type		Weighted Average Remaining Term		Weighted Average Discount Rate (1)
Finance Leases		~~2.25~~ 1.76 years			16	%

Based on average interest rate of 16%, average term ~~remain~~remaining (months) ~~27.33~~21.19 Average term remain (years) ~~2.28~~

1.76.

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

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NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

During fiscal year ended 2018, third party convertible note payables of $8,531 were not settled for cash or through the issuance of common stock shares. During the six-month period of June 30, 2019, third party convertible note payables of $8,531 and related party notes of $48,155 and accrued interest of $209 were converted at $0.50 per share.

As of June 30, ~~2019,~~2020, and December 31, ~~2018,~~2019, the Company had unamortized discount of $0 and ~~$38,920~~$0 respectively.

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

Original

Due

Interest

Conversion

Dec 31,

Name

Note Date

Date

Rate

Rate

2018

Related Party:

Mike Zaman 11/30/2017 11/30/2018 12 % $ 0.50 778
Mike Zaman 01/19/2018 01/19/2019 12 % $ 0.50 450
Montse Zaman 06/07/2018 06/07/2019 12 % $ 0.50 293
Total Convertible Related Party Notes Payable 1,521
Less: Debt Discount -
Convertible Notes Payable, net of Discount - Related Party 1,521

~~OCHC, LLC~~

	Original	Due	Interest			Conversion		Jun 30,
Name	Note Date	Date	Rate			Rate		2020

Related Party Convertible Notes Payable:
Mike Zaman	01/19/2018	01/19/2019		12	%	$	0.50		-
Montse Zaman	03/25/2020	03/25/2021		12	%	$	-		4,300
Montse Zaman	04/28/2020	04/28/2021		12	%	$	-		4,000
Montse Zaman	05/22/2020	05/22/2021		12	%	$	-		1,500
Total Convertible Related Party Notes Payable									9,800
Less: Debt Discount									-
Convertible Notes Payable, net of Discount - Related Party									9,800

Third Party Convertible Notes Payable:
Willy A. Saint-Hilaire	02/27/2020	02/27/2021		12	%	$	-		14,500
Willy A. Saint-Hilaire	03/08/2020	03/08/2021		12	%	$	-		1,581
Willy A. Saint-Hilaire	03/24/2020	03/24/2021		12	%	$	-		500
Willy A. Saint-Hilaire	03/24/2020	03/24/2021		12	%	$	-		400
Willy A. Saint-Hilaire	03/24/2020	03/24/2021		12	%	$	-		652
Total Convertible Third Party Notes Payable									17,633
Less: Debt Discount									-
Convertible Notes Payable, net of Discount - Third Party									17,633

Third Party Non-Convertible Notes Payable:
Small Business Administration – EIDL	04/30/2020	04/30/2050		3.75	%	$	-		4,000
Total Third Party Non-Convertible Notes Payable									4,000

Mike Zaman

As of December 31, 2019, the Company owed Mike Zaman a total of $760 and remaining accrued interest of $3,503. The balance of $760 was paid on January 13, 2020 and the remaining accrued interest of $3,503 were not converted as of June 30, 2020.

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Montse Zaman

On ~~August 11, 2018, October 2, 2018, October 24, 2018, November 16, 2018 and December 4, 2018,~~March 27, 2020, the Company entered into a convertible promissory ~~notes for~~note with OCHC, LLC for loans in the amounts of $631 each of the mentioned dates. The notes carry interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. The total amount of these notes and the accrued interest were converted as of the six-month period ending June 30, 2019 with the balance of $0 owed.

~~Munti Consulting, LLC~~

On October 3, 2018 and December 19, 2018, the Company entered into convertible promissory notes for with Munti Consulting, LLC for loans in the amounts of $35,000 and 10,000. The notes carry interest at 10% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. The total amount of these notes and the accrued interest were converted as of the six-month period ending June 30, 2019 with the balance of $0 owed.

~~Mike~~Montse Zaman

~~On November 30, 2017 and January 19, 2018 the Company entered into convertible promissory notes with Mike Zaman for loans~~ in the amount of ~~$1,000 and $450, respectively.~~$5,000. The ~~balance on the $1,000~~ note ~~was $778 on June 30, 2019. The notes carry~~carries interest at 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common ~~shares at~~shares. On June 24, 2020, the Company made a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. $2,250 of the notes were paid and none of the remaining notes were converted as$700 principal reduction payment. As of June 30, ~~2019 and had a~~2020, the balance ~~of $1,228 at June 30, 2019.~~

~~Montse Zaman~~

on this note was $4,300.

On ~~June 7, 2018,~~April 28, 2020, the Company entered into a convertible promissory note with Montse Zaman ~~for loan~~ in the amount of ~~$760.~~$4,000. The ~~balance on the~~ note ~~is $293.The notes carry~~carries interest at 12% per annum. The holder has the right to convert principal of the ~~notes~~note and accrued interest into Common ~~shares~~shares.

On May 22, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $1,500. The note carries interest at ~~a rate of $0.50~~12% per ~~share or receive cash. At~~annum. The holder has the ~~time~~right to convert principal of the ~~issuance~~note and accrued interest into Common shares.

Willy Ariel Saint-Hilaire

On February 27, 2020, the Company entered into a promissory note with Willy Ariel Saint-Hilaire in the amount of ~~these notes,~~$14,500. The note carries interest at 12% per annum.

On March 8, 2020, the ~~conversion price was less than~~Company entered into a promissory note with Willy Ariel Saint--Hilaire in the ~~trading price~~amounts of ~~the stock.~~$1,581. The notes ~~mature on June 7, 2019~~carry interest at 12% per annum.

On March 24, 2020, the Company entered into promissory notes with Willy Ariel Saint-Hilaire in the amounts of $500, $400, and ~~have not been fully paid or converted as of June 30, 2019 and had a balance of $293~~$652. The notes carry interest at ~~June 30, 2019.~~

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12% per annum.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

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

The ~~company~~Company agreed to pay the automobile lease of $395 a month, on a month to month basis and can be cancelled at any ~~time.~~ time but expects to continue lease payments for the full 2020 year.

The Company ~~reevaluates their obligation~~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 ~~end~~exercise price of ~~each quarter~~$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 ~~determines if they will continue paying~~Exchange Commission after the ~~lease on a month to month basis. The payment~~issuance of this ~~lease~~Warrant.

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On March 13, 2020, BBCKQK Trust Kevin Wiltz was ~~terminated in February 2020.~~

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.

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, Malcom 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 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.

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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.

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.

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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		1,000,000	$	.060	$	0.000025	$	25.00
03/13/2020	BBCKQK Trust Kevin Wiltz		1,000,000	$	0.60	$	0.000025	$	25.00
03/13/2020	Willy Ariel Saint-Hilaire		1,000,000	$	0.60	$	0.000025	$	25.00
04/01/2020	Addicted 2 Marketing LLC		100,000	$	0.60	$	0.000025	$	2.50
04/28/2020	Shahram Khial		500,000	$	0.60	$	0.000025	$	12.50
05/04/2020	Arnulfo Saucedo-Bardan		1,000,000	$	0.60	$	0.000025	$	25.00
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	Sadeh Salmassi		200,000	$	0.60	$	0.000025	$	5.00
05/08/2020	Glen Rineer		200,000	$	0.60	$	0.000025	$	5.00
05/08/2020	Barry Cohen		200,000	$	0.60	$	0.000025	$	5.00
05/08/2020	Malcom Ziman		200,000	$	0.60	$	0.000025	$	5.00
05/08/2020	Brett Matus		200,000	$	0.60	$	0.000025	$	5.00
05/08/2020	Brian Colvin		1,000,000	$	0.60	$	0.000025	$	25.00
05/08/2020	Jacob Colvin		200,000	$	0.60	$	0.000025	$	5.00
05/11/2020	Mohammad Sadrolashrafi		500,000	$	0.60	$	0.000025	$	12.50
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
05/19/2020	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
05/27/2020	James Bobrik		200,000	$	0.60	$	0.000025	$	5.00
05/28/2020	Richard R Shehane		200,000	$	0.60	$	0.000025	$	5.00
05/29/2020	Ybelka Saint-Hilaire		200,000	$	0.60	$	0.000025	$	5.00
06/03/2020	Jeffrey 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 Gewerter		200,000	$	0.60	$	0.000025	$	5.00
06/19/2020	Elvis E Saint-Hilaire		200,000	$	0.60	$	0.000025	$	5.00
06/30/2020	Chris Knudsen		200,000	$	0.60	$	0.000025	$	5.00
	Total:		11,400,000					$	285.00
Related Party:
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
06/09/2020	Kenneth Cornell Boskett		1,000,000	$	0.60	$	0.000025	$	25.00
	Total Related Party:		3,000,000					$	75.00

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NOTE 7 – 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.

~~OCHC LLC total notes payable of $3,155 was converted to restricted shares of common stock during March of 2019 at a rate of $0.50 per share, as stated within the terms of the agreement.~~

On January ~~8, 2019, Mr. Cantor resigned. On December 18, 2019, his 300,000 restricted shares of common stock were returned to the Company.~~

~~As of June 30, 2019, the company recognized $50,000 of related party revenue for nine months of Advertising services for client during July 1, 2018 through April 1, 2019.~~

~~As of June 30, 2019,~~13, 2020, the Company ~~had a~~paid the remaining payable balance due to Mike Zaman of ~~$293 to Montse Zaman, director~~$760 for expenses paid on behalf of the Company. ~~The holder has~~

During the ~~right~~period ended March 31, 2020, the Company recorded the forgiveness of $7,200 accounts payable rent balance due to ~~convert principal of the note and accrued interest into Common shares~~Mike Zaman.

On May 1, 2020, Mike Zaman was issued a warrant at a ~~rate~~price of ~~$0.50~~$0.000025 per share ~~or receive cash. At~~($25.00 total) to purchase 1,000,000 shares of common stock at the ~~time of the issuance of payables, the conversion price was less than the trading~~exercise price of ~~the stock. The Company recorded~~$0.60 per share.

On May 1, 2020, Montse Zaman was issued a ~~discount for the beneficial conversion feature of the notes, which has been amortized over the life of the note using the straight-line method.~~

As of June 30, 2019, the Company had a payable of $1,228 to Mike Zaman, director for expenses paid on behalf of the Company. The holder has the right to convert principal of the note and accrued interest into Common shareswarrant at a ~~rate~~price of ~~$0.50~~$0.000025 per share ~~or receive cash. At~~($25.00 total) to purchase 1,000,000 shares of common stock at the ~~time of the issuance of payables, the conversion price was less than the trading~~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 ~~stock. The Company recorded a discount for the beneficial conversion feature~~exercise price of ~~the notes, which has been amortized over the life of the note using the straight-line method.~~

~~As of June 30, 2019, Mike Zaman has forgiven the Company $9,282 of interest owed in reference to his notes.~~

$0.60 per share.

The Company is periodically advanced operating funds from related parties with convertible notes payable. During the six months ended June 30, ~~2019, there were no~~2020, total convertible notes from related ~~parties.~~parties was $9,800. 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, ~~2019,~~2020, the Company has a balance of ~~$70,660~~$239,144 of accounts and accrued expenses payable with related parties.

NOTE 8 – STOCK HOLDERS’ DEFICIT

Common Stock

The shares for cash proceeds were sold at the price of fifty cents $0.50 per share on the date of grant. Shares issued for notes were converted into shares of Common Stock at a conversion rate of fifty cents ($.50) per share per dollar ($1.00) owed. $12,504 common shares for services were committed to Vinoth Sambandam for issuance, and is reflected in the stockholders’ equity section as Common Stock Payable

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During the six months ending June 30, ~~2019,~~2020, the Company issued the following:

●

~~16,000~~

60,000 common shares for cash proceeds of ~~$7,960.~~$30,000.

	¨ ●	~~common~~ 140,083 shares issued for settlement of stock payable ~~of $20,000~~due to Vinoth Sambandan for balance owed ~~for cash proceeds.~~through December 31, 2019
	●	204,933 shares issued for settlement of accounts payable due to Vinoth Sambandan for balance owed through December 31, 2019
	●	160,000 shares issued to Steven Cantor to settle compensation dispute.
	●	4,500 shares issued to third parties for services rendered.
	●	14,588 shares issued to Vinoth Sambandan for stock payable for 1^st and 2^nd quarter.
	●	74,000 shares issued to third parties for settlement of Accounts Payable.

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.

~~113,377 shares issued for conversion~~Table of ~~$56,895 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.~~Contents

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, ~~2019.~~

2020

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, ~~2019,~~2020, the Company has 1,000 shares of Series A Preferred Stock ~~outstanding~~

outstanding.

NOTE 9 – 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 ~~2019.~~

2020.

The ~~Company's~~Company’s deferred tax assets consisted of the following as of June 30, ~~2019~~2020 and December 31, ~~2018:~~

2019

2018

Net operating loss $ 407,778 $ 399,821
Valuation allowance (407,778 ) (399,821 )
Net deferred tax asset $ - $ -

2019:

	2020			2019
Net operating loss	$	495,975		$	416,916
Valuation allowance		(495,975	)		(416,916	)
Net deferred tax asset	$	-		$	-

As of June 30, ~~2019,~~2020, and December 31, ~~2018,~~2019, the ~~Company's~~Company’s accumulated net operating loss carry forward was approximately ~~$1,941,798~~$2,361,786 and ~~$1,903,911~~$1,985,312 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%.

~~2014 Federal income tax returns have not been examined and reported upon by the Internal Revenue Service; returns of the years since 2014 are still open.~~

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NOTE 10 – SUBSEQUENT EVENTS

~~Subsequent June 30, 2019, the company cancelled 300,000 shares and~~

On July 1, 2020, Theresa Kitt was issued ~~an additional 154,000~~a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock ~~subsequent~~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 ~~June 30, 2019, as follows:~~

~~154,000~~purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On July 3, 2020, Jonathan Dawson purchased 3,000 shares of common stock at $0.50 per share at the purchase price of $1,500.

On July 3, 2020, Lloyd Check III purchased 4,000 shares of common stock at $0.50 per share at the purchase price of $2,000.

On July 3, 2020, Glen Rineer purchased 8,000 shares of common stock at $0.50 per share at the purchase price of $4,000.

On July 3, 2020, Hayden Dawson purchased 2,000 shares of common stock at $0.50 per share at the purchase of $2,000.

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 July 31, 2020, the Company paid $800 to Montse Zaman to reduce principal balance on Notes payable – related party.

On July 31, 2020, Wysh Investments LLC purchased 20,000 shares of common stock at $0.50 per share at the purchase price of $10,000.

On July 31, 2020, Willy A Saint-Hilaire agreed to the conversion of $17,633 of notes payable plus interest of $859 to common stock. Total shares of common stock issued ~~for cash proceeds of $77,000 at the price of $0.50 per share on the date of grant.~~

~~Sales of Company stock subsequent to June 30, 2019 are as follows:~~

On July 1, 2019, August 1, 2019 and September 3, 2019, Munti Consulting, LLC paid $10,000 respectively for a total purchase price of $30,000 for 60,000 shares of Company stock. During April and May of 2019 Muni Consulting paid $10,000 respectively for 40,000 shares of stock that was payable as of June 30, 2019.The shares have been issued subsequent to June 30, 2019. Therefore, a total amount of 100,000 common shares were issued in September of 2019 for the total amount of cash paid.

~~On December 18, 2019, the company received 300,000 shares for cancelation from Steven Cantor, which was sent to transfer agent for cancellation January 3, 2020.~~

~~On November 26, 2019, Richard LeAndro paid $2,000 for 4,000 shares of the Company and Willy Ariel Saint-Hilaire paid $5,000 for 10,000 shares.~~

~~On January 3, 2020 Willey Ariel Saint-Halaire purchased 40,000 shares of Company stock for $20,000.~~

~~On January 27, 2020, the Company re-acquired from AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale.~~

On February 7, 2020, the Company agreed to issue 345,016 shares to Vinoth Sambandam for settlement of debt owed for services rendered through December 31, 2019. Actual shares have not been issued by Transfer Agent as of filing date.

36,984.

Management has evaluated subsequent events as of the date of the ~~Consolidated~~ Financial Statements and has determined that all events are disclosed herein.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ~~ANALYSISv~~ANALYSIS

The following discussion and analysis should be read in conjunction with our ~~Consolidated~~ 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, ~~2018,~~2019, 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, ~~2019,~~2020 Crown Equity ~~had no paid~~has 4 employees and was utilizing the services of ~~one~~three independent ~~contractor~~contractors and the following ~~three~~four officers, Mike Zaman, Kenneth Bosket, ~~Arnulfo Saucedo-Bardan~~Montse Zaman and ~~Mike Zaman.~~

Vinoth Sambandam.

RESULTS OF OPERATIONS

Three months ~~Ended~~ended June 30, ~~2019~~2020 Compared to the Three months ~~Ended~~ended June 30, ~~2018~~

2019

For the three months ended June 30, ~~2019,~~2020, revenues were ~~$52,363~~$500 and ~~$2,990~~$52,363 for the same period in ~~2018.~~

~~The increase in revenues was due to a related party client that we provided Company’s advertisement services to.~~

2019.

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~~Operating expenses were $41,330~~

Revenues for the three months ended June 30, 2020 was significantly lower compared to the same period in 2019 primarily due to advertising income from related parties earned in the same period in 2019.

Operating expenses were $321,069 for the three months ended June 30,2020 and ~~$53,597~~$41,330 for the same period in ~~2018 for a decrease of $12,267~~2019. Increase in operating expenses was primarily due to ~~decrease in web site development expenses~~ increase officer compensation ($82,100), managerial services ($120,000) and administrative services ($60,000).

Other expenses for the three month period ended June 30, ~~2019~~2020 were ~~$30,410~~$118,354 and ~~$6,881~~$30,410 for the same quarter in ~~2018.~~2019. The increase in other expenses was due to ~~interest expense being $672 higher and~~ the ~~$26,602~~recording of ~~amortization of the beneficial conversion feature related for the convertible notes~~loss on shares issued ~~for which there was $3,745 in 2018.~~

to settle accounts payable.

Interest expense for the three months ended June 30, 2020 and 2019 was $3,007 and ~~2018 was~~ $3,808, ~~and $3,136,~~ respectively.

Six months ~~Ended~~ended June 30, ~~2019~~2020 Compared to the Six months ~~Ended~~ended June 30, ~~2018~~

2019

For the six months ended June 30, ~~2019,~~2020, revenues were ~~$53,045~~$1,077 and ~~$8,786~~$53,045 for the same period in ~~2018.~~

~~The increase in revenues was due to a related party client that we provided advertisement services for over a period of 9 months from July 1, 2018 through April 1,~~ 2019.

~~Operating expenses were $82,284~~ Revenues for the six months ended June 30, ~~2019 and $88,827 for~~2020 was significantly lower compared to the same period in ~~2018 for a decrease of $6,543~~2019 primarily due to ~~less noncash compensation expense. Other expenses for the six months period ended June 30, 2019 were $47,567 and of $12,704 for~~advertising income from related parties earned in the same ~~quarter~~period in 2018. The increase was due to interest expense being $2,888 higher and the $38,920 of amortization of the beneficial conversion feature related for the convertible notes issued for which there was $6,945 in 2018.

~~Interest expense~~2019.

Operating expenses were $371,420 for the six months ended June 30,2020 and $29,239 for the same period in 2019. Increase in operating expenses was primarily due to increase officer compensation, managerial services, accounting services, IT services and administrative services.

Other expenses for the six month period ended June 30, 2020 were $542,334 and $38,920 for the same period in 2019. The increase in other expenses was primarily due to the recording of loss on shares issued to settle accounts payable.

Interest expense for six months ended June 30, 2020 and 2019 was $6,707 and ~~2018 was~~ $8,647, ~~and $5,759,~~ respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, ~~2019,~~2020, Crown Equity had current assets of ~~$3,499~~$5,035 and current liabilities of ~~$307,297~~$455,753 resulting in working capital deficit of ~~$303,798.~~$450,718. Net cash used by operating activities for the six months ended June 30, ~~2019~~2020 was ~~$28,896~~$29,891 compared to net cash used of ~~$17,912~~$28,896 for the same period in 2018. The increase in operating cash used resulted from a net loss of approximately $76,806, offset mainly by non-cash compensation of $20,202, and amortization of a beneficial conversion feature of $38,920 in the current period.

2019.

Net cash used in investing activities was zero for the six months ended June 30, ~~2019~~2020 and ~~2018.~~

2019.

Net cash provided by financing activities during the six months ended June 30, ~~2019~~2020 was ~~$19,087~~$33,929 compared to net cash provided of ~~$16,365~~$19,087 for the same period in ~~2018.~~2019. For the six months ended June 30, ~~2019,~~2020, we ~~paid $2,250 on~~borrowed $10,500 from related ~~party notes payable~~parties, and ~~$0 on third party notes payable.~~received a loan from the Small Business Administration for $4,000. We also sold ~~$28,000~~60,000 shares of common stock for ~~cash.~~

$30,000.

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.

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ITEM 3: ~~QUANTITATIVE~~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 requires 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, ~~2018.~~

2019.

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

During the six months ended June 30, ~~2019,~~2020, Crown Equity ~~129,377~~658,104 issued shares for cash, services, settlement of AP and ~~notes.~~

board member’s compensation, and common stock subscribed for services.

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 **		XBRL Instance Document

101.SCH **		XBRL Taxonomy Extension Schema Document

101.CAL **		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF **		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB **		XBRL Taxonomy Extension Label Linkbase Document

101.PRE **		XBRL Taxonomy Extension Presentation Linkbase Document

____________

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: ~~March 5,~~August 11, 2020	By:	/s/ Mike Zaman
		Mike Zaman, CEO

	By:	/s/ Kenneth Bosket
		Kenneth Bosket, CFO

2529

	June 30, 2019			Dec 31, 2018
	(Unaudited)
Assets
Current assets
Cash	$	3,499		$	13,294
Total Current Assets		3,499			13,294

Property and Equipment, net		44,994			50,565
Total Assets	$	48,493		$	63,859

Liabilities and Stockholders Deficit
Current liabilities
Accounts payable and accrued expenses	$	211,402		$	207,125
Accounts payable to related party		70,660			61,156
Deferred revenue Related Party		-			50,000
Convertible notes payable to related parties, net of discount		1,521			13,040
Convertible notes payable, net of discount		-			8,498
Finance lease obligation, current		23,714			10,403
Total Current Liabilities		307,297			350,222

Non-Current liabilities
Finance lease obligation, long term		32,905			42,879
Total Liabilities		340,202			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; 11,952,766 and 11,823,389 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively		11,952			11,823
Stock Payable		51,260			18,756
Additional paid-in capital		11,360,917			11,279,211
Accumulated deficit		(11,715,839	)		(11,639,033	)
Total stockholders deficit		(291,709	)		(329,242	)
Total liabilities and stockholders deficit	$	48,493		$	63,859

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018

Revenue	$	2,363		$	990		$	3,045		$	2,686
Revenue – related party		50,000			2,000			50,000			6,100
Total Revenue		52,363			2,990			53,045			8,786

Operating expenses
Depreciation		8,055			7,224			15,556			14,447
General and Administrative		33,275			46,373			66,728			74,380
Total Operating Expenses		41,330			53,597			82,284			88,827

Net Operating Income (Loss)		11,033			(50,607	)		(29,239	)		(80,041	)

Other expense
Interest expense		(3,808	)		(3,136	)		(8,647	)		(5,759	)
Amortization of beneficial conversion feature		(26,602	)		(3,745	)		(38,920	)		(6,945
Total other expense		(30,410	)		(6,881	)		(47,567	)		(12,704	)

Net (loss)	$	(19,377	)	$	(57,488	)	$	(76,806	)	$	(92,745	)

Net (loss) per common share – basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)

Weighted average number of common shares outstanding - basic and diluted		11,889,981			11,478,993			11,845,939			11,468,497

	Preferred Stock				Common Stock				Common Stock		Additional Paid-In		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Payable		Capital		Deficit			(Deficit)

Balances at March 31, 2019		1,000	$	1		11,856,766	$	11,856	$	25,008	$	11,314,357	$	(11,696,462	)	$	(345,240	)
Notes Payable and Accrued Interest Converted to Common Stock		-		-		90,000		90		-		43,566		-			43,656
Common stock issued for cash		-		-		6,000		6		20,000		2,994		-			23,000
Common Stock Subscribed for services		-		-		-		-		6,252		-		-			6,252
Net loss		-		-		-		-		-		-		(19,377	)		(19,377	)
Balances at June 30, 2019		1,000	$	1		11,952,766	$	11,952	$	51,260	$	11,360,917	$	(11,715,839	)	$	(291,709	)

	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
	Third Party		Related Party		Total		Third Party		Related Party		Total

Advertising	$	2,000	$	50,000	$	52,000	$	-	$	-	$	-
IT Services on Company Server	$	-	$	-	$	-	$	-	$	6,000	$	6,000
Click Based and Impressions Ads	$	294		-		294	$	1,488		-		1,488
Domain Registrations		11		-		11		12		-		12
Publishing and Distribution		740		-		740		300		100		400
Server	$	-	$	-	$	-	$	886	$	-	$	886
	$	3,045	$	50,000	$	53,045	$	2,686	$	6,100	$	8,786

	Six months June 30, 2019			Six months June 30, 2018
Numerator:
Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc.	$	(76,806	)	$	(92,745	)
Net (Loss) attributable to Crown Equity Holdings, Inc.	$	(76,806	)	$	(92,745	)

Denominator:
Weighted average common and common equivalent shares outstanding – basic and diluted		11,845,939			11,468,497

Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.:
Basic	$	(0.01	)	$	(0.01	)
Diluted	$	(0.01	)	$	(0.01	)

Liabilities	June 30, 2019
Obligations under finance lease (current)	$	23,714
Obligations under finance lease (noncurrent)		32,905
Total	$	56,619

	Finance Leases
Leased asset balance	$	44,944
Liability balance		56,619
Cash flow (operating)		—
Cash flow (financing)		6,649
Interest expense	$	1,144

Years ended December 31	Finance Leases

2019 *		10,433
2020		27,974
2021		15,938
2022		11,860
Thereafter		-
Total		66,205
Less: Imputed Interest		(9,586	)
Total Liability		56,619

	Original	Due	Interest			Conversion		Dec 31,
Name	Note Date	Date	Rate			Rate		2018

Related Party:
Mike Zaman	11/30/2017	11/30/2018		12	%	$	0.50		778
Mike Zaman	01/19/2018	01/19/2019		12	%	$	0.50		450
Montse Zaman	06/07/2018	06/07/2019		12	%	$	0.50		293
Total Convertible Related Party Notes Payable									1,521
Less: Debt Discount									-
Convertible Notes Payable, net of Discount - Related Party									1,521