UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM S-1

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

 

Commission File Number 000-29935

 

CROWN EQUITY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

(Exact name of registrant as specified in its charter)

 

2741

(Primary Standard Industrial

Classification Code Number)

 

Nevada

 

33-0677140

(State or other jurisdiction of

incorporation or organization)

 

(IRSI.R.S. Employer Identification No.)

Identification No.)

 

11226 Pentland Downs Street, Las Vegas, NV 89141

(702) 683-8946

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

Copies to:

Arnold F. Sock, Esquire

Box 25847

Los Angeles, CA 90025-0847

(310) 714-0747

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.

(Approximate date of commencement of proposed sale to the public)

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box:   ☐

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.   ☐

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.    ☐

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.   ☐

 

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-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)7(a)(2)(B) of the ExchangeSecurities Act.

CALCULATION OF REGISTRATION FEE


Title of Each Class

 

Amount

 

 

Proposed Maximum

 

 

Proposed Maximum

 

 

Amount of

 

of Securities to

 

to be

 

 

Offering Price

 

 

Aggregate

 

 

Registration

 

be Registered

 

Registered

 

 

Per Unit

 

 

Offering Price (1)

 

 

Fees (2)

 

Common Stock Outstanding par value $0.001 

 

 

2,585,717

 

 

 

N/A

 

 

 

12,928,585

 

 

$1,410.51

 

Common Stock, par value $0.001

 

 

10,000,000(3)

 

$5.00

 

 

$50,000,000

 

 

$5,455.00

 

Warrants

 

 

40,000,000(3)

 

 

-

 

 

 

-

 

 

 

-

 

_________

(1)

Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(o), based on the Proposed Maximum Aggregate Offering Price of the Securities Act.

(2)

Estimated solely for the purpose of computing the amount of the registration fee pursuant to Rule 457(a) under the Securities Act.

(3)

Includes 10,000,000 shares of common stock to be sold and the following warrants to be issued as part of the common stock units at a price of $5.00 per unit:

10,000,000 warrants exercisable at $7.50, expiring December 31, 2021.

10,000,000 warrants exercisable at $10.00, expiring December 31, 2022.

10,000,000 warrants exercisable at $12.50, expiring December 31, 2023.

10,000,000 warrants exercisable at $15.00, expiring December 31, 2024. 

All warrants are exercisable an expiring on the dates specified, unless the shares selling price is above the exercisable price before the original expiring date by 20% for 10 days, which will initiate warrants to be exercised within 30 days thereafter. ☐

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

 

 
2


The information in this prospectus is not complete and may be changed. Neither Crown Equity Holdings, Inc. nor the selling stockholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and neither we nor the selling stockholders areor soliciting offers to buy these securities in any state where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS

SUBJECT TO COMPLETION

DATED: SEPTEMBER 25, 2023

 

PROSPECTUS$50,000,000 (10,000,000 Units)

Each Unit Comprises One Share of Common Stockand Four Warrants to Purchase

One Share of Common Stock with each Warrant Having a Specified Exercisable Price

 

Sharescrwe_s1img4.jpg

 

CROWN EQUITY HOLDINGS, INC.

 

COMMON STOCK

This is a public offering. This prospectusoffering of Units of Crown Equity Holdings, Inc. (the Company), which relates to the offering of up to 10,000,000 Units, each Unit comprising one share of Common Stock having a price of $5.00 per share and four warrants per Unit that shall entitle the holder of each Unit to purchase four shares of common stock unitsat an exercise price of Crown Equity Holdings, Inc. with warrants exercisable$7.50 for the first share, $10.00 for the second share, $12.50 for the third share, and $15.00 for the fourth share as follows: 10,000,000 warrants exercisable at $7.50, 10,000,000 warrants exercisable at $10.00, 10,000,000 warrants exercisable at $12.50, and 10,000,000 warrants exercisable at $15.00applicable to each warrant.

1.

The first of four warrants are exercisable at $ 7.50 and will expire on December 31, 2024.

2.

The second of four warrants are exercisable at $10.00 and will expire on December 31, 2025.

3.

The third of the four warrants are exercisable at $12.50 and will expire on December 31, 2026.

4.

The fourth warrant is exercisable at $15.00 and will expire on December 31, 2027.

 

Our Independent Registered Public Accounting Firm has raised substantial doubts about our ability to continue as a going concern.

 

This offering is a best efforts self-underwritten offering where the officers and directors will be selling the securities and relying on the safe harbor provisions under Rule 3a-1 of the Exchange Act of 1934.

 

OurCrown Equity Holdings, Inc. common stock is listed on the Pink Open Market under the symbol “CRWE.CRWE.

 

The securities offered in this prospectus involve a high degree of risk. You should consider the risk factor in the section entitled “Risk Factors” beginning on page 8 before purchasingwhich should be considered in connection with an investment in our common stock units.securities.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

 

The date of this prospectus is February 12, 2021is__________, 2023

 

 
32

 

TABLE OF CONTENTS

 

About This Prospectus

 4

Prospectus Summary

 

4

6

 

Terms ofThe Offering

 

6

6

 

Selected Financial Data (Operations)

 

6

7

 

Risk Factors

 

7

8

 

Special Note Regarding Forward-Looking Statements

 

12

11

 

Use of Proceeds

 

13

13

 

Determination of Offering Price

 

14

13

 

Market Price of Common Stock

 

 1314

 

Dividend Policy

 

15

14

 

Capitalization

 

15

14

 

Dilution

 

16

Selling Stockholders

17

Selected Financial Data

21

 

Management’s Discussion and Analysis of Financial Condition and Results of Operation

 

18

22

 

Description of Business

 

19

24

 

Management

 

24

30

 

Executive Compensation

 

26

31

 

Related Party Transactions

 

27

33

 

Security Ownership of Certain Beneficial Owners and Management and Related Stock Matters

 

28

34

 

Description of Securities to be Registered

 

29

35

 

Plan of Distribution

 

30

35

 

Legal Proceedings

 

31

38

 

Interests of Named Experts and Counsel

 

 3832

 

Transfer Agent

 

32

38

 

Controls and Procedures

 

32

38

 

Where You Can Find Additional Information

 

33

39

 

Index to Financial Statement

 

F-1

F-1

 

Part II

 

34

40

 

Information Not Required in Prospectus

 

34

40

 

 
43

Table of Contents

ABOUT THIS PROSPECTUS

 

No dealer, salesperson or other person is authorizedWhen used herein, unless the context requires otherwise, references to “Crown Equity Holdings” the “Company,” “we,” “our” and “us” refer to Crown Equity Holdings, Inc., a Nevada corporation.

The registration statement on Form S-1 of which this prospectus forms a part and that we have filed with the U.S. Securities and Exchange Commission (the “SEC”), includes exhibits that provide anymore details of the matters discussed in this prospectus. You should read this prospectus and the related exhibits filed with the SEC, together with the additional information or to make any representations other than thosedescribed under the heading “Where You Can Find More Information.”

You should rely only on the information contained in this prospectus and the related exhibits, any prospectus supplement or in any free writing prospectusesamendment thereto, or to which we have prepared. We take no responsibility for and canreferred you, before making your investment decision. Neither we, nor the placement agent or any financial advisor engaged by us in connection with this offering, have authorized anyone to provide no assuranceyou with additional information or information different from that contained in this prospectus. Neither the delivery of this prospectus nor the sale of our securities means that the information contained in this prospectus is correct after the date of this prospectus.

You should not assume that the information contained in this prospectus, any prospectus supplement, or amendments thereto, as towell as information we have previously filed with the reliabilitySEC, is accurate as of any date other information that othersthan the date on the front cover of the applicable document. Our business, financial condition, results of operations and prospects may give you.have changed since those dates. This prospectus is an offer to sell only the sharessecurities offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date. We caution you not to give undue weight to such projections, assumptions and estimates.

 

For investors outside the United States: Neither we, nor any placement agent or financial advisor engaged by us in connection with this offering, have taken any action that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the securities covered hereby and the distribution of this prospectus outside of the United States.

No person is authorized in connection with this prospectus to give any information or to make any representations about us, the securities offered hereby, or any matter discussed in this prospectus, other than the information and representations contained in this prospectus. If any other information or representation is given or made, such information or representation may not be relied upon as having been authorized by us. To the extent, there is a conflict between the information contained in this prospectus and any prospectus supplement having a later date, the statement in the prospectus supplement having the later date modifies or supersedes the earlier statement.

Neither we, nor the placement agent have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required. Persons outsiderequired, other than the United States who come into possession of this prospectus and any free writing prospectus related to this offeringStates. You are required to inform themselvesyourself about, and to observe any restrictions asrelating to, this offering and the distribution of this prospectus and any such free writing prospectus applicable to that jurisdiction.

5

Table of Contents

prospectus.

 

PROSPECTUS SUMMARY

 

The following summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision in our common stock. You should read this entire prospectus carefully, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis” and our consolidated financial statements and the related notes included elsewhere in this prospectus, before making an investment decision. Unless the context otherwise requires, the terms “Crown Equity Holdings, Inc.,” “Crown Equity,” “Crown Equity Holdings,” “CRWE”, “the company,” “we,” “us” and “our” in this prospectus refer to Crown Equity Holdings, Inc. All currency amounts in this prospectus are expressed in United States (“U.S.”) dollars, unless otherwise indicated.

 

The Company

 

Crown Equity Holdings, Inc. (the Company) was formerly known as Micro Bio-Medical Waste Systems, Inc. and was incorporated on August 31, 1995 as “Visioneering Corporation” under the laws of the State of Nevada.

 

Company’s History

Crown Equity Holdings, Inc. (CRWE or the Company) was formerly known as "Visioneering Corporation", which was incorporated on August 31, 1995 under the laws of the State of Nevada.

4

Table of Contents

The Company changed its name from “Visioneering Corporation” to "Asiamerica Energy Group, Inc." on January 12, 1996, when it entered into an agreement to acquire an oil and gas company. No stock was issued, and no assets were acquired as this acquisition was not consummated. On April 29, 1996, the Company then changed its name to "Care Financial Group, Inc."

On May 15, 1997, the Company changed its name to "Trump Oil Corporation." Trump proposed to merge with Fenway Resources Ltd., a Canadian company involved in natural resource development which wanted to develop and construct a cement manufacturing facility in the Philippines. This proposed merger was also never consummated, and no shares were issued pursuant to this agreement.

On March 10, 1999, the Company entered a letter of intent with 20/20 Web Design, Inc., a Colorado corporation, a wholly owned subsidiary of Multi-Source Capital, Ltd. ("MSC"), also a Colorado corporation. The Company entered into an Agreement and Plan of Reorganization and completed its acquisition of 20/20 Web Design, Inc., with the Company changing its name as a result.

On April 10, 2001 the Company changed its name to "BentleyTel", since the Company entered a letter of intent with BentleyTel.com, Inc., a Nevada corporation, to acquire BentleyTel in a statutory merger. The transaction was not completed, and the Company changed its name back to 20/20 Web Design, Inc. on June 8, 2001

On February 10, 2003, the Company changed its name to "20/20 Networks, Inc.”

Thereafter, on December 10, 2003, the Company changed its name to " Micro Bio-Medical Waste Systems, Inc.”

On September 28, 2006, the Company changed to its current name of “Crown Equity Holdings, Inc.”

The Company maintains its executive office at 11226 Pentland Downs Street, Las Vegas, NV 89141

Overview

 

The Company operates aCRWEWorld website www.CRWEWorld.com(crweworld.com), (hereafter “CRWE World”) and is in the business of aggregating pertinent general and financial news and publishes it on its website for visitors to the site. The Company believes the aggregating and categorizing of business content from news organizations such as GlobeNewswire, PR Newswire, Business Wire, Accesswire, and many others, will allow CRWE World the opportunity to become a one stop online site location for business related news and information overall.

 

The site also provides advertisers an opportunity to use online banners designed for digital advertising for sponsored hyperlinks, pay-per-click, pop ups or impressions ads, to reach and persuade the publication’s audience to buy, drive traffic to their website, increase their brand, or create product awareness for a fee.

 

In addition to Crown Equity Holdings, Inc. doing business as CRWE WORLD, (http://crweworld.com), the Company is conducting businessbusinesses as CRWE Press Release (http://crwepressrelease.com)(crwepressrelease.com), which engages in the dissemination of news and press releases for publicly and privately held companies, as well as other online businesses with its own distinct products and services. CRWE Tube (http://crwetube.com)(crwetube.com), a Videovideo sharing platform.platform, CRWE Tech (http://crwetech.com)(crwetech.com), aan IT/technology services provider of web design, development and hosting services, and iB2B Global (http://ib2bglobal.com)(ib2bglobal.com), a business to business (B2B) international e-commerce platform. The Company charges fees for its services offered on these sites.

 

5

Table of Contents

THE OFFERING

 

Securities Being Offered

UpThe offering of up to 10,000,000 sharescommon stock units are to be sold with each unit consisting of one share of common stock to be sold and one warrant for each of the following four warrants to be issued as part of the common stock units at a price of $5.00 per unit:unit for an aggregate amount of up to $50,000,000. The first of the four warrants per unit shall entitle the holder to purchase a share of common stock at an exercise price of $7.50, expiring December 31, 2024 with the second share warrant price at $10.00, expiring December 31, 2025, $12.50 for the third share warrant expiring December 31, 2026, and $15.00 for the fourth share warrant expiring December 31, 2027.

 

10,000,000 warrants exercisable at $7.50,$ 7.50, expiring December 31, 20212024

10,000,000 warrants exercisable at $10.00, expiring MarchDecember 31, 20222025

10,000,000 warrants exercisable at $12.50, expiring June 30, 2022December 31, 2026

10,000,000 warrants exercisable at $15.00, expiring September 30, 2022.December 31, 2027.

 

 

Initial Offering Price

The Company will sell up to a maximum of 10,000,000 SharesUnits at a price of $5.00 per unit.Unit.

 

 

Terms of the Offering

The offeringThis offer will conclude when the companyCompany has sold all the 10,000,000 unitsUnits offered, or at the termination of common stock offered.the offering period.

 

 

Termination of the Offering

The companyCompany may, in its sole discretion, decide to terminate the registration of the sharesUnits offered by the company.Company.

 

 

Determination of Offering Price

An investment in our common stock and warrants is highly speculative and involves a high degree of risk. See Risk Factors beginning on page 7.

6

8.

Table of Contents

 

The Board of Directors arbitrarily determined offering 10,000,000 shares of common stock to be sold and the following warrants to be issued as partoffering of the common stock units10,000,000 Units, at athe offering price of $5.00 per unit:Unit, as well as the warrants, and the exercise prices of the warrants offered with each Unit.

 

10,000,000 warrants exercisable at $7.50, expiring December 31, 2021
10,000,000 warrants exercisable at $10.00, expiring March 31, 2022
10,000,000 warrants exercisable at $12.50, expiring June 30, 2022
10,000,000 warrants exercisable at $15.00, expiring September 30, 2022.


As the offering price is not based on a specific calculation or metric the price has inherent risks – See “Risk Factors”Risk Factors.

 

SELECTED FINANCIAL DATA

 

The following table presentstables present the company’sCompany’s selected financial data for the periods presented and should be read together with the sections of this prospectus titled “Risk Factors” and our financial statements and related notes thereto appearingincluded elsewhere in this prospectus.

The following selecteddata below for the period ended June 30, 2023 and 2022 has been derived from the unaudited condensed consolidated financial statements of operations datathe Company, and for the nine months ended September 30, 2020 and September 30, 2019 are derived from our unaudited financial statements included elsewhere in this prospectus and the years ended December 31, 20192022 and December 31, 2018 have2021 that has been derived from ourthe audited consolidated financial statements and footnotesof the Company for such years, which are included elsewhere in this prospectus. The Company’s consolidated financial statements are prepared and presented in accordance with U.S. GAAP.

The Company’s historical results for any interim periodincluded below are not necessarily indicative of the results that mayto be expected for any future period. The information is only a full year. Also, our historical results are not necessarily indicativesummary and should be read in conjunction with the Company’s consolidated financial statements and related notes, and the section entitled “Management’s Discussion and Analysis of our future results orFinancial Condition and Results of the results we expect in the future.

Operations of Crown Equity Holdings, Inc.

STATEMENTS OF OPERATIONS DATA

Unaudited

 

 

Nine Months Ended

 

 

Year Ended

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$1,287

 

 

$3,464

 

 

$3,793

 

 

$3,352

 

Revenue – related party

 

 

1,667

 

 

 

50,000

 

 

 

50,000

 

 

 

7,100

 

Total Revenue

 

 

2,954

 

 

 

53,464

 

 

 

53,793

 

 

 

10,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

24,102

 

 

 

23,612

 

 

 

31,668

 

 

 

28,895

 

General and Administrative

 

 

493,438

 

 

 

108,701

 

 

 

115,695

 

 

 

313,477

 

Total Operating Expenses

 

 

517,540

 

 

 

132,313

 

 

 

147,363

 

 

 

342,372

 

Net Operating Income (Loss)

 

 

(514,586)

 

 

(78,849)

 

 

(93,570)

 

 

(331,920)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(11,871)

 

 

(12,291)

 

 

(21,885)

 

 

(17,996)

Investment expense

 

 

(17,000)

 

 

-

 

 

 

-

 

 

 

-

 

Gain on extinguishment of debt

 

 

-

 

 

 

-

 

 

 

1,349

 

 

 

-

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

(38,920)

 

 

-

 

 

 

-

 

Debt Discount Amortization

 

 

-

 

 

 

-

 

 

 

(38,920)

 

 

(24,.904)

Loss on Stock Held

 

 

(2,611)

 

 

-

 

 

 

-

 

 

 

-

 

Loss on AP Settlement – related party

 

 

(542,334)

 

 

-

 

 

 

-

 

 

 

-

 

Total other expense

 

 

(573,816)

 

 

(51,211)

 

 

(59,456)

 

 

(42,900)

Net (loss)

 

$(1,088,402)

 

$(130,060)

 

$(153,026)

 

$(374,820)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.09)

 

$(0.01)

 

$(0.01)

 

$(0.03)

Weighted average number of common shares outstanding - basic and diluted

 

 

12,269,852

 

 

 

11,909,339

 

 

 

11,936,422

 

 

 

11,583,371

 

” contained elsewhere herein.

 

The following table represents the Company’s selected consolidated balance sheet data as of June 30, 2023, and December 31, 2022 and 2021, respectively:

Selected consolidated balance sheet data:

 

 

June 30, 2023

 

 

December 31, 2022

 

 

December 31, 2021

 

Current assets

 

$3,165

 

 

$2,390

 

 

$593,265

 

Total assets

 

$3,680

 

 

$5,437

 

 

$603,285

 

Current liabilities

 

$1,421,789

 

 

$1,385,768

 

 

$1,274,429

 

Total liabilities

 

$1,421,789

 

 

$1,385,768

 

 

$1,276,843

 

Total liabilities and stockholder’s deficit

 

$3,680

 

 

$5,437

 

 

$603,285

 

 
76

Table of Contents
Table of Contents

The following table represents the Company’s selected consolidated statements of operations and comprehensive (loss) income for the six months ended June 30, 2023 and 2022, and for the years ended December 31, 2022 and 2021:

 

Selected consolidated statements of operations data:

 

 

For the Six Months Ended

June 30,

 

 

For the Years Ended

December 31,

 

 

 

2023

 

 

2022

 

 

2022

 

 

2021

 

Revenue

 

-

 

 

$557

 

 

$785

 

 

$4,177

 

Revenue – related party

 

 

-

 

 

 

2,150

 

 

 

2,150

 

 

 

11,483

 

Total Revenue

 

 

-

 

 

 

2,707

 

 

 

2,935

 

 

 

15,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,992

 

 

 

4,043

 

 

 

7,513

 

 

 

5,485

 

General and Administrative

 

 

34,314

 

 

 

250,464

 

 

 

473,999

 

 

 

507,958

 

Total Operating Expenses

 

 

36,306

 

 

 

254,507

 

 

 

481,512

 

 

 

513,443

 

Net Operating Income (Loss)

 

 

(36,206)

 

 

(251,800)

 

 

(478,577)

 

 

(497,783)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,472)

 

 

(1,438)

 

 

(4,213)

 

 

(5,466)

Gain on Forgiveness of Debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,101

 

Debt Discount Amortization

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(14,805)

Gain (Loss) on Stocks Held or Sold

 

 

-

 

 

 

(252,568)

 

 

(252,568)

 

 

65,168

 

Other Income (Expense)

 

 

-

 

 

 

(4,616)

 

 

(4,617)

 

 

(2,008)

Total other expense

 

 

(1,472)

 

 

(258,622)

 

 

(261,398)

 

 

46,990

 

Net (loss)

 

$(37,778)

 

$(510,422)

 

$(739,975)

 

$(450,793)

The Company had total revenues of $0 for the six months ended June 30, 2023, and total revenues of $2,707 for the six months ended June 30, 2022. We had net loss of $37,778 for the six months ended June 30, 2023, and $510,422 for the six months ended June 30, 2022, respectively. We had total assets of $3,680 and $5,437 as of June 30, 2023 and December 31, 2022, respectively.

RISK FACTORS

 

These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Investing in our securities involves a high degree of risk.

You should carefully consider the risks described below, as well as the other information in this prospectus, including our financial statements and the related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” before deciding whether to invest in our securities. The occurrence of any of the events or developments described below could harm our financial condition, results of operations, business, and prospects. In such an event, the market price of our securities could decline, and you could lose all or part of your investment. In addition to the additional risks and uncertainties not presently known to us or that we currently deem immaterial also may have similar adverse effects on us, this plan contains forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors set forth below. Any of the following risks could adversely affect our business, financial condition, and results of operations.

 

7

Table of Contents

We compete with other on-line news publications.

 

Our future success will depend on our ability to increase and enhance our market position by: (1) delivering news and information globally; (2) transform our readership into possible consumers of the Company’s other productproducts and services and (3) increasing our online visibility.

 

Investing in our securities involves a high degree of risk.

 

You should carefully consider and evaluate all the information contained in this prospectus, the accompanying prospectus, and in the documents that we incorporateincorporated by reference into this prospectus and accompanying prospectus before you decide to purchase our securities. You should carefully consider and evaluate the risks and uncertainties described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019.2022. Any of the risks and uncertainties set forth in that report, as updated by annual, quarterly, and other reports and documents that we file with the SEC and incorporate by reference into this prospectus or any prospectus, could materially and adversely affect our business, results of operations and financial condition, which in turn could materially and adversely affect the value of any securities offered by this prospectus. As a result, you could lose all or part of your investment.

 

We have experienced net losses and negative cash flows from operating activities and can expect such losses and negative cash flows to continue in the foreseeable future.

 

In Note 2 of our financial statements, our Independent Registered Public Accounting Firm has raised substantial doubt as our ability to continue as a going concern is dependent upon raising capital from financing transactions and future sales. The financial statements in this registration statement have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

If we are unable to adapt to changing market conditions, client requirements or emerging industry standards, our business could be adversely affected.

 

Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions.

 

These broad market fluctuations may adversely affect the market price of our common stock. In addition, if our operating results differ from our announced guidanceexpectations, or the expectations of equity research analysts or investors, the price of our common stock could decrease significantly.

 

8

Table of Contents

Our audit reportThe Note 2 of our financial statements from our auditorsauditor discloses in Note 2 to the financial statements that there is substantial doubt as to our ability to continue as a going concern, which, if we ceased to be able to continue operations, could result in your investment becoming worth significantly less than the offering price, or possibly even causing it to become worthless.

 

Note 2 toof our financial statements discussdiscloses a substantial doubt that we can continue as a going concern. If we are unable to continue as a going concern, we will have to close our doors or recapitalize, both of which would cause a loss of value, either through dilution or becoming worthless.

 

8

Table of Contents

We have a limited operating history, with cumulative losses since inception, which, iflosses. If losses continue, it could cause us to run out of money and close our business.

 

We have an accumulated deficit from operations. There is not a sufficient amount of gross revenue and profit to finance our planned growth and, without additional financing as outlined in this prospectus; we could continue to experience losses in the future. Our accumulated deficit through SeptemberDecember 31, 2022 was $14,156,842. The accumulated deficit period ending June 30, 20202023 was $12,880,461.$14,194,620. We may incur significant expenses in promoting our business, and as a result, will need to generate significant revenues over and above our current revenue to achieve consistent profitability. If we are unable to achieve that profitability, your investment in our common stock may decline or become worthless.

 

The nature of our business is dependentdepends on several factorsfactors.

 

Our quarterly and annual sales could vary significantly depending on a number of factors, including, but not limited to a significant downturn in the media industry, fluctuating customer demand, delay or timing of disseminating, information and selling product mix and price competition. The failure of achievingto achieve quarterly or annual revenue and profits expectations would likely adversely affect the price of our common stock.

 

Although we believe the funds that we raise in this offering will allow us to generate sufficient funds from operations, if that is not the case, we may have to raise additional capital which may not be available or may be too costly, which, if we cannot obtain, could cause us to have to cease our operations.

 

We expect that the funds we raise in this offering will take us to the point of a positive cash flow. However, if that does not turn out to be the case, our capital requirements could be more than our operating income. As of September 30, 2020,December 31, 2022, our cash balance was $186,753.$2,930. As for the period ended June 30, 2023, our cash balance was $3,165. We do not have sufficient cash to indefinitely sustain operating losses but believe we can generate positive cash flow within twelve months from the funds raised in this offering. Our potential profitability depends on our ability to generate and sustain substantially higher net sales with reasonable expense levels. We may not operate on a profitable basis or that cash flow from operations will be enough to pay our operating costs. We anticipate that the funds raised in this offering will be sufficient to fund our planned growth for the year after we close on the offering assuming we raise the minimum amount in this offering. Thereafter, if we do not achieve profitability, we will need to raise additional capital to finance our operations. We have no current or proposed financing plans or arrangements other than this offering. We could seek additional financing through debt or equity offerings. Additional financing may not be available to us, or, if available, may be on terms unacceptable or unfavorable to us. If we need and cannot raise additional funds, further development of our business, upgrades in our technology, additions to our product lines may be delayed or postponed indefinitely; if this happens, the value of your investment could decline or become worthless.

 

The public market for our common stock currently exists but it is thinly traded, and a broad active trading market may never materialize, and an investor may not be able to sell their stock.

 

Prior to this offering, there has been thin trading in the public market for our common stock. A broad active trading market still may not develop and, even so, the market value could decline to a value below the offering price in this prospectus. Additionally, if the market is not active or illiquid, investors may not be able to sell their securities.

 

If a public trading market for our common stock materializes, we may be classified as a ‘penny stock’ which has additional requirements in trading the stock, which could cause you not to be able to sell your stock.

 

The U.S. Securities and Exchange Commission treats stocks of certain companies as a ‘penny stock’. If we are classified as a ‘penny stock’, that classification makes it harder to trade even if it is traded on an electronic exchange like the over-the-counter bulletin board. These requirements include (i) broker-dealers who sell to customers must have the buyer fill out a questionnaire, and (ii) broker-dealers may decide upon the information given by a prospective buyer whether or not the broker-dealer determines the stock is suitable for their financial position. These rules may adversely affect the ability of both the selling broker-dealer and the buying broker-dealer to trade your securities as well as the purchasers of your securities to sell them in the secondary market.

 

 
9
9

Table of Contents
Table of Contents

 

Investing in a penny stock has inherent risks, affecting both brokers, buyers, and sellers, which could cause the marketability of your stock to be lesserless than if there were not those requirements.

 

When a seller of a ‘penny stock’ desires to sell, they must execute that trade through a broker. Many brokers do not deal in penny stocks, so a seller’s ability to market/sell their stock is reduced because of the number of brokers who engage in trading such stocks. Additionally, if a broker does engage in trading penny stocks, and the broker has a client who wishes to buy the stock, they must have the client fill out a number of pages of paperwork before they can execute the trade. These requirements cause a burden to some who may decide not to buy because of the additional paperwork. Thus, the marketability of your stock is less as a penny stock than as a stock listed on an exchange. This could cause your investment to be worth less, liquid, and investors may not be able to market their shares effectively.

 

Shareholders purchasing shares in this offering will experience immediate and substantial dilution, causing their investment to immediately be worth less than their purchase price.

If you purchase common stock in this offering, you will experience an immediate and substantial dilution in the projected book value of the common stock from the price you pay in this initial offering. As an example, this means that if you buy units in this offering for $5.00 per unit, you will pay substantially more than our current shareholders. The following represents your dilution: (a) if the low point of 2,000,000 units are sold, an immediate decrease in book value to our new shareholders from $5.00 to $0.63 per share and an immediate dilution to the new shareholders of $4.37 per common share; (b) if the midpoint of 5,000,000 units are sold, an immediate decrease in book value to our new shareholders from $5.00 to $1.36 per share and an immediate dilution to the new shareholders of $3.64 per common share. and (c) if the maximum of 10,000,000 units are sold, an immediate decrease in book value to our new shareholders from $5.00 to $2.15 per share and an immediate dilution to the new shareholders of $2.85 per common share.

Investors are not able to cancel theirthe subscription agreements they sign,signed, therefore losing any chance to change their minds.

 

Once the Company receives an investor’s subscription, they will not be able to cancel their subscription. The investor will therefore lose any right or opportunity to change their mind after receipt by the Company.

 

Our offering price of $5.00 per unit was determined arbitrarily by our Board of Directors. Your investment may not be worth as much as the offering price because of the method of its determination.

 

The Board of Directors arbitrarily determined the offering price for the offering ofoffer at $5.00 per unit. As the offering price is not based on a specific calculation or metric, the price has inherent risks andrisks; therefore, your investment could be worth less than the offering price.

 

There are inherent risks of being a public company, such as regulatory filings, costs associated with regulatory matters which include audits and legal. These deadlines and the costs of regulatory requirements could cause diversion from the business itself, which causes the value of your investment to decline.

 

There are inherent risks in being a public company including regulatory filings which have deadlines, costs associated with these regulatory requirements which include audit, legal and significant time of management. The failure of management to deal with these requirements on a timely basis or the inability of the company to be able to afford to pay for them could cause the value of the business, and therefore your investment, to lose value or even become worthless.

 

10

Table of Contents

There are industry risks such as a low barrier of entry, no licensing requirements, and competition from various aspects of the publishing industry, all of which could affect our sales and if they negatively affect our sales, your investment could go down in value or even disappear altogether.

 

There are risks in our industry including a low barrier of entry meaning that it does not take a lot of capital to get started, there are no regulatory requirements. If any of these risks flow to our companyCompany in reduced sales and/or higher costs, your investment could go down in value or even become worthless.

 

The Company relies on the services provided by the key officers and the loss of officers could adversely affect the Company and therefore could adversely affect the value of your investment.

 

The services provided by the Company’s CEO/President and certain officers are currently a key factor to maintain the strength of its administrative and technology capabilities. The loss of any of them could have a material adverse effect on the Company, while a replacement is being appointed by the board of directors. We do not maintain any key man life insurance on any officer.

 

Additional Crown Equity’s risk factors are disclosed within the following Special Note Regarding Forward-Looking StatementsStatements.

10

Table of Contents

 

Impact of coronavirus pandemic

 

This negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel, and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets during 2020, 2021 and into 2022. In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in Wuhan, China, and has since spread globally. On March 11, 2020,May 2023 the World Health Organization characterizeddeclared that COVID-19 asno longer represents a global public health emergency of international concern, but the effects of the pandemic and, on March 13, 2020,are still being felt in the United States declared a national emergency with respect to COVID-19.form of COVID-19 infections.

 

The coronavirus pandemic outbreak caused major disruptions to businesses and markets worldwide. Though the companyCompany cannot predict what the long-term effects of thisthe pandemic and the resulting economic disruptions may have on ourthe results of operations. The extent of the effect of the pandemic on our liquidity and results of operations will depend on future developments, including the duration, spread and intensity of thea future pandemic, and governmental, regulatory, and private sector responses, all of which are uncertain and difficult to predict.

 

We are selling shares offered in this prospectus without an underwriter and may not be able to sell any of the shares offered herein.

No broker-dealer has been retained as an underwriter and no broker-dealer is under any obligation to purchase any common shares. There are no firm commitments to purchase any of the shares in this offering. Consequently, there is no guarantee that we are capable of selling all, or any, of our Ordinary Shares offered hereby.

11

Table of Contents

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

 

This prospectus, including the sections entitled “Prospectus Summary,” “Risk Factors,” “Use of Proceeds,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business,” contains 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;

 

 

 

 

·

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 percentage ownership interestbook value per share of existing stockholders and may dilute the book value per share of our common stock;

 

11

Table of Contents

 

·

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;

 

 

 

 

·

our ability to timely and effectively scale and adapt our existing technology and network infrastructure;

 

 

 

 

·

our ability to maintain an adequate rate of revenue growth;

 

 

 

 

·

the effects of increased competition in our market;

 

 

 

 

·

our ability to effectively manage our growth;

 

 

 

 

·

to maintain, protect and enhance our brand and intellectual property;

 

 

 

 

·

the attraction and retention of qualified key personnel; and

 

 

 

 

·

other risk factors included under “Risk Factors” in this prospectus.

12

Table of Contents

 

These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations.

 

You should read this prospectus and the documents that we reference in this prospectus and have filed with the Securities and Exchange Commission as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

 

12

Table of Contents

USE OF PROCEEDS

We estimate that the net proceeds to us from the sale of the shares of our common stock offered by us will be approximately $9,883,510 based on selling a low point of 2,000,000 units, $24,783,510 based upon selling the midpoint of 5,000,000 units and $49,733,510 based on selling the maximum 10,000,000 units, assuming an offering price of $5.00 per unit.as set forth on the cover page of this prospectus.

 

We currently intend to use the net proceeds to us from this offering primarily for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters, auditor, legal, administrative employees, contractors, news feeds, continued website development and maintenance to enhance our infrastructure, and capital expenditures. We estimate the following uses but reserve the right to reallocate the category uses or to use them in the way the Officers and Directors deem the best use.

 

Category

 

Low Point

 

 

Mid-Point

 

 

Maximum

 

 

 

 

 

 

 

 

 

 

 

Web design and maximization

 

$500,000

 

 

$1,500,000

 

 

$2,500,000

 

Internet traffic marketing and optimization

 

$1,500,000

 

 

$3,500,000

 

 

$6,000,000

 

Wages – New Hires

 

$400,000

 

 

$900,000

 

 

$1,500,000

 

Add on Services to Enhance our Platform

 

$250,000

 

 

$350,000

 

 

$500,000

 

Alliances and Sponsorships to enhance Traffic generation

 

$1,000,000

 

 

$4,000,000

 

 

$9,000,000

 

General Operating Expenditures for our Platform

 

$1,500,000

 

 

$3,000,000

 

 

$6,000,000

 

General Corporate Overhead

 

$4,733,510

 

 

$11,533,510

 

 

$24,233,510

 

TOTAL

 

$9,883,510

 

 

$24,783,510

 

 

$49,733,510

 

We expect the net proceeds from this offering to be approximately $49.7 million assuming the offering price of $5.00 per unit, minus offering expenses payable by us. The directors and officers will not receive any proceeds from their efforts in units sold.

We intend to use the net proceeds of the initial public offering as follows:

·

approximately 23% of the proceeds will be allocated to research and development, with a particular focus on developing and optimizing devices and software needed for a network for various online applications for platform development. This includes gaining a deep understanding of the workflows and processes of different industries in order to improve and upgrade traditional methods through the integration of devices and software. Our efforts will also include the development of cloud platforms, the integration and advancement of artificial intelligence, and the exploration of more efficient ways to scale up platforms and the people to maintain it; and

·

approximately 22% of the proceeds will be dedicated to marketing and promotion. We also plan to expand with Search Engine Optimization, Pay-per-click advertising, Email marketing, Social media, and Video marketing, Content writers as well as Alliances and Sponsorship; and

·

approximately 20% of the proceeds will be used to hire news and information articles writers, as well as editors and sales representatives, to accelerate growth of business sites visitors and revenues.

·

approximately 35% of the proceeds will be used for corporate overhead incurred cost for administrative side of the corporation.

We estimate that the net proceeds to the Company from the sale of the units offered are as follows:

·

an estimated offering expenses payable by us of approximately 1% being deducted, the low point will be approximately $9,883,510 received from the 2,000,000 units sold;

·

an estimated offering expenses payable by us of approximately 0.8% being deducted, the mid-point will be approximately $24,783,510 received, based upon the selling of 5,000,000 units;

·

an estimated offering expenses payable by us of approximately 0.5% being deducted, the maximum will be approximately $49,733,510 received, based upon the selling of 10,000,000 units;

13

Table of Contents

assuming an offering price of $5.00 per unit, as set forth on the cover page of this prospectus.

Category

 

Low Point (1)

2,000,000 Units

 

 

Mid-Point (2)

5,000,000 Units

 

 

Maximum (3)10,000,000 Units

 

 

 

 

 

 

 

 

 

 

 

Devices, Software Programs and Network and Platform Development

 

$2,250,000

 

 

$5,700,208

 

 

$11,438,708

 

Marketing, Advertisement, Promotion and Search Engine Optimization

 

$2,234,000

 

 

$5,452,372

 

 

$10,941,372

 

Wages – New Hires

 

$1,940,282

 

 

$4,956,702

 

 

$9,946,702

 

General Corporate Overhead

 

$3,459,228

 

 

$8,674,228

 

 

$17,406,728

 

TOTAL

 

$9,883,510

 

 

$24,783,510

 

 

$49,733,510

 

(1)

Assumes that we only raise 20% in this offering. This offering is conducted on a best-efforts basis with no minimum; therefore, we could raise significantly less than $50,000,000.

(2)

Assumes that we only raise 50% in this offering. This offering is conducted on a best-efforts basis with no minimum; therefore, we could raise significantly less than $50,000,000.

(3)

Assumes that we raise the full amount of our Maximum Offering hereunder, or $50,000,000. This offering is conducted on a best-efforts basis with no minimum; therefore, we could raise significantly less than $50,000,000.

The Offering is being sold by our officers and directors, who will not receive any compensation for their efforts. No sales fees or commissions will be paid to such officers or directors.

 

We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business, although we have no present commitments or agreements toentertoenter into any acquisitions or investments. None the less, we do have four additional “doing business as” endeavors that can stand on its own merits, as well as with CRWE WORLD that may be considered. We will have broad discretion over the uses of the net proceeds in this offering.

 

DETERMINATION OF OFFERING PRICE

 

The Company arbitrarily determined the offering price for the offering of $5.00 per unit. As the offering price is not based on a specific calculation or metric, the price has inherent risks and therefore your investment could be worth less than the offering price.

 

MARKET PRICE OF COMMON STOCK

 

Our common stock is quoted for trading on the Pink Open Market as “OTC PINK:” with the symbol “CRWE”. The following table sets forth the high and low bid prices for our common stock for the periods indicated. Such quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions and may not necessarily represent actual transactions.

 

Period

 

 High

 

 

Low

 

1st Qtr. 2020

 

 

1.55

 

 

 

0.75

 

2nd Qtr. 2020

 

 

1.25

 

 

 

0.54

 

3rd Qtr. 2020

 

 

5.25

 

 

 

1.00

 

1st Qtr. 2019

 

 

2.10

 

 

 

2.06

 

2nd Qtr. 2019

 

 

2.10

 

 

 

2.10

 

3rd. Qtr. 2019

 

 

2.10

 

 

 

1.92

 

4th Qtr. 2019

 

 

1.55

 

 

 

1.55

 

1st Qtr. 2018

 

 

1.00

 

 

 

1.00

 

2nd Qtr. 2018

 

 

2.00

 

 

 

1.00

 

3rd. Qtr. 2018

 

 

3.00

 

 

 

1.85

 

4th Qtr. 2018

 

 

3.00

 

 

 

1.85

 

Period

 

High

Low

 

 Year 2023

 

 

 

1st  Qtr. 2023

 

 

 

1.55

 

0.75

 

2nd Qtr. 2023

 

 

 

0.88

 

0.37

 

 

 

 Year 2022

 

 

 

 

 

1st  Qtr. 2022

 

 

 

1.55

 

0.75

 

2nd Qtr. 2022

 

 

 

1.25

 

0.54

 

3rd  Qtr. 2022

 

 

 

5.25

 

1.00

 

4th  Qtr. 2022

 

 

 

4.50

 

1.00

 

 

 

 Year 2021

 

 

 

 

 

1st  Qtr. 2021

 

 

 

3.96

 

1.00

 

2nd Qtr. 2021

 

 

 

3.25

 

1.00

 

3rd Qtr. 2021

 

 

 

2.49

 

1.00

 

4th  Qtr. 2021

 

 

 

2.39

 

1.50

 

 

 
1314

Table of Contents
Table of Contents

 

DIVIDEND POLICY

 

The Company havehas never declared or paid dividends on our capital stock. We currently intend to retain all available funds and any future earnings to fund the development and growth of our business. We do not anticipate paying any dividends on our capital stock in the foreseeable future. Investors should not purchase our securities with the expectation of receiving cash dividends. Any future determination related to our dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors that our board of directors may deem relevant.

 

CAPITALIZATION

The following summary describes our capital stock as in our amended and restated articles of incorporation

 

Authorized Capital. The total number of shares of all classes of capital stock which the corporation shall have the authority to issue is 490,002,000470,001,000 shares, consisting of (i) four hundred fifty million (470,001,000)(450,000,000) shares of Common Stock, par value $.001 per share (“Common Stock”), and (ii) 20,001,000twenty million, one thousand (20,001,000) shares of Preferred Stock, par value $.001 per share (“Preferred Stock”), of which one thousand (1,000) shares shall be designated as Series A Preferred Stock, par value $.001 per share.

 

The following summary describes our capital stock as in our Amended and Restated Articles of Incorporation.

1.

Common Stock.

 

 

 

a. Dividends. Subject to the rights, if any, of the holders of Preferred Stock with respect to the payment of dividends and the requirements, if any, with respect to the setting aside of sums as sinking funds or redemption or purchase accounts for the benefit of such holders and subject to any other conditions that may be fixed in or pursuant to the provisions of this Article IV, the holders of Common Stock shall be entitled to receive such dividends, if any, as may be declared from time to time by the Board of Directors on the Common Stock out of assets which are legally available therefore. Any such dividends shall be divided among the holders of the Common Stock on a pro rata basis.

 

b. Liquidation. In the event of any liquidation of the corporation, after payment or provision for payment of the debts and liabilities of the corporation and after distribution to the holders of Preferred Stock of the amounts fixed in or pursuant to the provisions of the company’s Restated Article IV, the holders of the Common Stock shall be entitled to receive all the remaining assets of the corporation, tangible and intangible, of whatever kind available for distribution to stockholders. Any such assets shall be divided among the holders of Common Stock on a pro rata basis.

c. Voting. Except as may otherwise be required by law and subject to the rights of the holders of Preferred Stock fixed in or pursuant to this Article IV, the holderseach holder of the Common Stock shall be entitled to receive all the remaining assets of the corporation, tangible and intangible, of whatever kind availablehave one vote for distribution to stockholders. Any such assets shall be divided among the holderseach share of Common Stock held by such holder on each matter submitted to a pro rata basis.

c. Voting. Except as may otherwise be required by law and subject to the rightsvote of the holders of Preferred Stock fixed in or pursuant to this Article IV, each holder of Common Stock shall have one vote for each share of Common Stock held by such holder on each matter submitted to a vote of the stockholders. 

 

14

2.

Preferred Stock.

Table of Contents

 

2.

Preferred Stock.

 

a.

General. Shares of the Preferred Stock may be issued from time to time in one or more series, the shares of each series to have any designations and powers, preferences and rights, and qualifications, limitations, and restrictions thereof, as are stated and expressed in this Article IV and in any resolution or resolutions providing for the issue of such series adopted by the Board of Directors as hereinafter prescribed (a “Preferred Stock Designation”).

b.

Authority of Board of Directors; Preferred Stock Designation. In addition to the series of Preferred Stock authorized pursuant to paragraph 4 of this Article IV, authority is hereby expressly granted to and vested in the Board of Directors to authorize the issuance of the Preferred Stock from time to time in one or more series, the shares ofand with respect to each series to have any designations and powers, preferences and rights, and qualifications, limitations and restrictions thereof, as are stated and expressed in this Article IV and in any resolution or resolutions providing for the issue of such series adopted by the Board of Directors as hereinafter prescribed (a “Preferred Stock Designation”).

b.

Authority of Board of Directors; Preferred Stock Designation. In addition to the series of Preferred Stock authorized pursuant to paragraph 4 of this Article IV, authority is hereby expressly granted to and vested in the Board of Directors to authorize the issuance of the Preferred Stock, to fix and state by the resolution or resolutions from time to time in one or more series, and with respect to each series ofadopted providing for the Preferred Stock, to fix and state byissuance thereof the resolution or resolutions from time to time adopted providing for the issuance thereof the following:

 

15

Table of Contents

 

(1)

whether or not the series is to have voting rights, full, special, or limited, or is to be without voting rights, and whether or not such series is to be entitled to vote as a separate class either alone or together with the holders of one or more other classes or series of stock;

 

 

 

 

(2)

the number of shares to constitute the series and the designations thereof;

(3)

the preferences and relative, participating, optional, or other special rights, if any, and the qualifications, limitations, or restrictions thereof, if any, with respect to any series;

(4)

whether or not the shares of any series shall be redeemable at the option of the corporation or the holders thereof or upon the happening of any specified event, and, if redeemable, the redemption price or prices (which may be payable in the form of cash, notes, securities or other property), and the time or times at which and the terms and conditions upon which such shares shall be redeemable and the manner of redemption;

(5)

whether or not the shares of a series shall be subject to the operation of retirement or sinking funds to be applied to the purchase or redemption of such shares for retirement, and, if such retirement or sinking fund or funds are to be established, the periodic amount thereof, and the terms and provisions relative to the operation thereof;

 

 

 

 

(3)

the preferences and relative, participating, optional, or other special rights, if any, and the qualifications, limitations or restrictions thereof, if any, with respect to any series;

(4)

whether or not the shares of any series shall be redeemable at the option of the corporation or the holders thereof or upon the happening of any specified event, and, if redeemable, the redemption price or prices (which may be payable in the form of cash, notes, securities or other property), and the time or times at which and the terms and conditions upon which such shares shall be redeemable and the manner of redemption;

(5)

whether or not the shares of a series shall be subject to the operation of retirement or sinking funds to be applied to the purchase or redemption of such shares for retirement, and, if such retirement or sinking fund or funds are to be established, the periodic amount thereof, and the terms and provisions relative to the operation thereof;

(6)

the dividend rate, whether dividends are payable in cash, stock of the corporation or other property, the conditions upon which and the times when such dividends are payable, the preference to or the relation to the payment of dividends payable on any other class or classes or series of stock, whether or not such dividends shall be cumulative or noncumulative, and if cumulative, the date or dates from which such dividends shall accumulate;

 

 

 

 

(7)

the preferences, if any, and the amounts thereof which the holders of any series thereof shall be entitled to receive upon the voluntary or involuntary dissolution of, or upon any distribution of the assets of, the corporation;

 

 

 

 

(8)

whether or not the shares of any series, at the option of the corporation or the holder thereof or upon the happening of any specified event, shall be convertible into or exchangeable for the shares of any other class or classes or of any other series of the same or any other class or classes of stock, securities or other property of the corporation and the conversion price or prices or ratio or ratios or the rate or rates at which such conversion or exchange may be made, with such adjustments, if any, as shall be stated and expressed or provided for in such resolution or resolutions; and

 

 

 

 

(9)

any other special rights and protective provisions with respect to any series that the Board of Directors may deem advisable.

 

 

 

 

c.

Separate Series; Increase or Decrease in Authorized Shares. The shares of each series of Preferred Stock may vary from the shares of any other series thereof in any or all of the foregoing respects and in any other manner. The Board of Directors may increase the number of shares of Preferred Stock designated for any existing series by a resolution adding to such series authorized and unissued shares of Preferred Stock not designated for any other series. Unless otherwise provided in the Preferred Stock Designation, the Board of Directors may decrease the number of shares of Preferred Stock designated for any existing series by a resolution adding tosubtracting from such series authorized and unissued shares of Preferred Stock not designated for any other series. Unless otherwise provided insuch existing series, and the Preferred Stock Designation, the Board of Directors may decrease the number ofshares so subtracted shall become authorized, unissued, and undesignated shares of Preferred Stock designated for any existing series by a resolution subtracting from such series authorized and unissued shares of Preferred Stock designated for such existing series, and the shares so subtracted shall become authorized, unissued and undesignated shares of Preferred Stock.

 

15

Table of Contents

3.

Series A Preferred Stock.

 

There shall be authorized a series of Preferred Stock which shall have the designation and powers, preferences and rights, and qualifications, limitations, and restrictions thereof, set forth in this Article IV. The designation of this series of Preferred Stock (“Series A Preferred Stock”) shall be “Series A Preferred Stock”, and the total number of authorized shares of such series shall be 1,000. Subject to the provisions of the Certificate of Incorporation, such number of shares may be increased or decreased from time to time by resolution of the Board of Directors; provided, however, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares of such series then issued and outstanding, plus the number of shares of such series reserved for issuance upon the exercise of outstanding options, warrants or rights or the conversion or exchange of outstanding indebtedness or other securities issued by the corporation. Shares of Series A Preferred Stock shall have no dividend, voting or other rights except for the right to elect Class I Directors as set forth in below.

 

The Board of Directors shall be divided into two classes of directors, Class I Directors and Class II Directors, all of whom shall be eligible for election at each annual meeting of the stockholders. The Board of Directors shall have the right to fix the number of directors from time to time;time, provided that the number of Class I Directors shall always be equal to the number of Class II Directors plus one. The Class I Directors shall be elected by the vote of the holders of the issued and outstanding shares of Series A Preferred Stock voting together as a single class and the Class II Directors shall be elected by the vote of the holders of the issued and outstanding shares of Common Stock voting together as a single class. To the extent that no shares of Series A Preferred Stock are issued and outstanding, then all directors shall be elected by the vote of the holders of the issued and outstanding shares of Common Stock voting together as a single class.

 

Our common stock is listed (OTC PINK: CRWE)

 

16

Table of Contents

DILUTION

 

If you purchase common stockunits in this offering, you will experience an immediate and substantial dilution in the projected book value of the common stock from the price you pay in this initial offering.

 

The book value of our common stock as of the nine monthsyear ended SeptemberJune 30, 20202023 was $(0.09)$(0.10) per share. ProjectedThe projected book value per share is equal to our total assets, less total liabilities, divided by the number of shares of common stock outstanding.

 

After giving effect to the sale of common stock offered by us in this offering, and the receipt and application of the estimated net proceeds (at an initial public offering price of $5.00 per share, after deducting estimated offering expenses), our projected book value as of SeptemberJune 30, 20202023 would be:

 

Low Point Sold:

$9,833,5109,986,396 or $0.63$0.55 per share, if athe lower amount is sold, $24,783,510

$24,978,896, or $1.36$1.28 per share if the midpoint amount is sold, and $49,733,510

$49,969,396 or $2.15$2.07 per share, if the maximum is sold.

 

This means that if you buy stock in this offering at $5.00 per unit, the common shares you receive you will pay substantially more for the common shares that you received than ourthe current shareholders.market price of the stock. The following represents your dilution:

 

 

·

if a lower amount of 2,000,000 shares areis sold, an immediatea decrease in book value to our new shareholders will take effect immediately from $5.00 to $0.63$0.55 per share, and an immediateresulting in a dilution to the new shareholders of $4.37$4.45 per common share.

 

 

 

 

·

if a midpointlower amount of 5,000,000 shares areis sold, an immediatea decrease in book value to our new shareholders will take effect immediately from $5.00 to $1.36$1.28 per share, and an immediateresulting in a dilution to the new shareholders of $3.64$3.72 per common share.

 

 

 

 

·

if the maximuma lower amount of 5,000,00010,000,000 shares areis sold, an immediatea decrease in book value to our new shareholders will take effect immediately from $5.00 to $2.15$2.07 per share, and an immediateresulting in a dilution to the new shareholders of $2.85$2.93 per common share.

16

Table of Contents

 

The following table illustrates this per share dilution:

 

 

Lower Amount

 

 

Midpoint

 

 

Maximum

 

Assumed public offering price per share

 

$5.00

 

 

$5.00

 

 

$5.00

 

Book value as of September 30, 2020 per share

 

$0.03

 

 

$0.03

 

 

$0.03

 

Projected book value after this offering per share

 

$0.63

 

 

$1.36

 

 

$2.15

 

Increase attributable to new shareholders per share

 

$0.60

 

 

$1.33

 

 

$2.12

 

Projected book value as of September 30, 2020 after this offering per share

 

$0.63

 

 

$1.36

 

 

$2.15

 

Decrease to new shareholders per share

 

$4.37

 

 

$3.64

 

 

$2.85

 

Percentage dilution to new shareholders per share

 

 

87%

 

 

73%

 

 

57%

SELLING STOCKHOLDERS

Selling stockholders may sell common stock from time to time at the prevailing market prices or privately negotiated prices. The selling stockholders do not have any agreement or understanding, directly or indirectly, with any person to distribute the common stock being offered hereby. We will pay the expenses of registering these shares.

We will not receive any of the proceeds from the sale of shares sold by the selling stockholders. The offering by us is being made on a self-underwritten “best efforts” basis. The shares offered by us will be sold principally by our officers and directors.

Our common stock is not registered under Section 12 of the Securities Exchange Act of 1934. However, we are voluntarily reporting under the Exchange Act and our shares are currently trading on the Pink Sheets operated by the OTC Markets.

Selling Stockholders

On behalf of the selling stockholders, we have agreed to file a registration statement with the Securities and Exchange Commission covering the resale of their common stock as described in this prospectus.

We will use our reasonable efforts to keep the registration statement effective and update the prospectus until the securities owned by the selling stockholders have been sold or may be sold without registration or prospectus delivery requirements under the Securities Act of 1933. We will pay the costs and fees of registering the shares, but the selling security holders will pay any brokerage commissions, discounts or other expenses relating to the sale of the shares.

The registration statement that we have filed with the Securities and Exchange Commission, of which this prospectus forms a part, covers in part the resale of our common stock by the selling stockholders from time to time under Rule 415 under the Securities Act of 1933. The filing of this registration statement was for the intention of providing those stockholders with additional liquidity with respect to their ownership of shares of common stock.

The selling stockholders may offer our common stock covered under this prospectus for resale from time to time. The selling stockholders may also sell, transfer or otherwise dispose of all or a portion of the common stock in transactions exempt from the registration requirements of the Securities Act of 1933.

The table below presents information as of February 1, 2021 regarding the selling stockholders and the shares of common stock that the selling stockholders may offer and sell from time to time under this prospectus. The table is prepared based on information we were able to secure from company records maintained by Signature Stock Transfer, Inc.. Although we have assumed, for purposes of the table below, that the selling stockholders will sell all of the securities offered by this prospectus, because they may offer all or some of the securities in transactions covered by this prospectus or in another manner, no assurance can be given as to the actual number of shares that will be resold by the selling stockholders. Information covering the selling stockholders may change from time to time and changed information will be presented in a supplement to this prospectus or an amendment to the registration statement if and when required. There are no agreements, arrangements or understandings with respect to resale of any of the securities covered by this prospectus.

 

 

 

Low Point (2,000,000

Units Sold

in Offering)

 

 

 

Mid-Point

(5,000,000

Units Sold

in Offering)

 

 

 

Maximum

(10 000 000

Units Sold

in Offering)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed public offering price per share

 

$5.00

 

 

$5.00

 

 

$5.00

 

Book value as of June 30, 2023 per share

 

$(0.10)

 

$(0.10)

 

$(0.10)

Projected book value after this offering per share

 

$0.55

 

 

$1.28

 

 

$2.07

 

Increase attributable to new shareholders per share

 

$0.73

 

 

$1.38

 

 

$2.17

 

Projected book value as of June 30, 2023 after this offering per share

 

$0.55

 

 

$1.28

 

 

$2.07

 

Decrease to new shareholders per share

 

$4.45

 

 

$3.72

 

 

$2.93

 

Percentage dilution to new shareholders per share

 

 

89%

 

 

74%

 

 

58%

 

17

Table of Contents

Beneficial Ownership of Common Shares Prior to this Offering Shares

 

 

 

 

 

Number of

Shares to be

 

 

Beneficial Ownership of 

Common Share after this Offering

 

Selling Stockholder (1)

 

Number of

Shares

 

 

Percent of

Class (2)

 

 

Sold Under this Prospectus

 

 

Number of

Shares

 

 

Percent of

Class (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VINOTH SAMBANDAM

 

 

422,244

 

 

 

0.03

 

 

 

422,244

 

 

 

0

 

 

 

0.00

 

CEDE & CO ( FAST )

 

 

272,840

 

 

 

0.02

 

 

 

272,840

 

 

 

0

 

 

 

0.00

 

HONGSING PHOU & ANHKIM PHOU J/T

 

 

250,000

 

 

 

0.02

 

 

 

250,000

 

 

 

0

 

 

 

0.00

 

JONATHAN C JIMENEZ

 

 

200,000

 

 

 

0.02

 

 

 

200,000

 

 

 

0

 

 

 

0.00

 

MUNTI CONSULTING LLC

 

 

190,000

 

 

 

0.01

 

 

 

190,000

 

 

 

0

 

 

 

0.00

 

STEVEN CANTOR

 

 

160,000

 

 

 

0.01

 

 

 

160,000

 

 

 

0

 

 

 

0.00

 

WILLY ARIEL SAINT-HILAIRE

 

 

110,159

 

 

 

0.01

 

 

 

110,159

 

 

 

0

 

 

 

0.00

 

MATCO STATEWIDE SERVICES INC

 

 

100,000

 

 

 

0.01

 

 

 

100,000

 

 

 

0

 

 

 

0.00

 

RUDY CHACON

 

 

80,000

 

 

 

0.01

 

 

 

80,000

 

 

 

0

 

 

 

0.00

 

ROY S WORBETS

 

 

61,000

 

 

 

0.00

 

 

 

61,000

 

 

 

0

 

 

 

0.00

 

BBC TRUST KEVIN WILTZ TRUSTEE

 

 

60,000

 

 

 

0.00

 

 

 

60,000

 

 

 

0

 

 

 

0.00

 

OCHC LLC

 

 

58,315

 

 

 

0.00

 

 

 

58,315

 

 

 

0

 

 

 

0.00

 

WYSH INVESTMENTS LLC

 

 

40,000

 

 

 

0.00

 

 

 

40,000

 

 

 

0

 

 

 

0.00

 

CHRIS KNUDSEN

 

 

36,634

 

 

 

0.00

 

 

 

36,634

 

 

 

0

 

 

 

0.00

 

KIM SMITH

 

 

36,000

 

 

 

0.00

 

 

 

36,000

 

 

 

0

 

 

 

0.00

 

CLAUDIA JANE MCDOWELL

 

 

33,858

 

 

 

0.00

 

 

 

33,858

 

 

 

0

 

 

 

0.00

 

PROGRESSIVE CAPITAL MARKETS LLC

 

 

32,000

 

 

 

0.00

 

 

 

32,000

 

 

 

0

 

 

 

0.00

 

EDVIN TSATURYAN

 

 

29,000

 

 

 

0.00

 

 

 

29,000

 

 

 

0

 

 

 

0.00

 

MCDOWELL ODOM LLP

 

 

28,822

 

 

 

0.00

 

 

 

28,822

 

 

 

0

 

 

 

0.00

 

 
18

Table of Contents

PHOENIX CONSULTING SERVICES INC

 

 

28,556

 

 

 

0.00

 

 

 

28,556

 

 

 

0

 

 

 

0.00

 

FLAG INVESTMENT GROUP LLC

 

 

28,008

 

 

 

0.00

 

 

 

28,008

 

 

 

0

 

 

 

0.00

 

RICHARD W LEANDRO

 

 

26,000

 

 

 

0.00

 

 

 

26,000

 

 

 

0

 

 

 

0.00

 

JAMES BOBRIK

 

 

20,000

 

 

 

0.00

 

 

 

20,000

 

 

 

0

 

 

 

0.00

 

NANCIE RINEER

 

 

20,000

 

 

 

0.00

 

 

 

20,000

 

 

 

0

 

 

 

0.00

 

JALEH SAMANI

 

 

20,000

 

 

 

0.00

 

 

 

20,000

 

 

 

0

 

 

 

0.00

 

SHAKEH SUZIE GASSABIAN

 

 

15,000

 

 

 

0.00

 

 

 

15,000

 

 

 

0

 

 

 

0.00

 

GLEN J RINEER

 

 

14,000

 

 

 

0.00

 

 

 

14,000

 

 

 

0

 

 

 

0.00

 

CRAIG RINEER & TERESA RINEER J/T

 

 

14,000

 

 

 

0.00

 

 

 

14,000

 

 

 

0

 

 

 

0.00

 

DIVERSIFIED UNLIMITED

 

 

10,834

 

 

 

0.00

 

 

 

10,834

 

 

 

0

 

 

 

0.00

 

LUIS R DANIELSON

 

 

10,200

 

 

 

0.00

 

 

 

10,200

 

 

 

0

 

 

 

0.00

 

IVAN ROBINSON

 

 

10,000

 

 

 

0.00

 

 

 

10,000

 

 

 

0

 

 

 

0.00

 

VICTOR PERAZA

 

 

10,000

 

 

 

0.00

 

 

 

10,000

 

 

 

0

 

 

 

0.00

 

LLOYD CHEEK III

 

 

10,000

 

 

 

0.00

 

 

 

10,000

 

 

 

0

 

 

 

0.00

 

HOWFARR PANOUSSI

 

 

10,000

 

 

 

0.00

 

 

 

10,000

 

 

 

0

 

 

 

0.00

 

HOUMEHR PANOUSSI

 

 

10,000

 

 

 

0.00

 

 

 

10,000

 

 

 

0

 

 

 

0.00

 

NASRIN MONTAZER

 

 

8,004

 

 

 

0.00

 

 

 

8,004

 

 

 

0

 

 

 

0.00

 

WADE BODIE

 

 

8,000

 

 

 

0.00

 

 

 

8,000

 

 

 

0

 

 

 

0.00

 

BUSY BEE HOLDINGS INC

 

 

7,000

 

 

 

0.00

 

 

 

7,000

 

 

 

0

 

 

 

0.00

 

CLAUDIA JANE MCDOWELL IRREV TRUST

 

 

6,132

 

 

 

0.00

 

 

 

6,132

 

 

 

0

 

 

 

0.00

 

MARJAN TINA SUWARNO IRREV TRUST

 

 

6,132

 

 

 

0.00

 

 

 

6,132

 

 

 

0

 

 

 

0.00

 

MARYAM LISA ODOM IRREV TRUST

 

 

6,132

 

 

 

0.00

 

 

 

6,132

 

 

 

0

 

 

 

0.00

 

REZA RYAN ZAMAN IRREV TRUST

 

 

6,132

 

 

 

0.00

 

 

 

6,132

 

 

 

0

 

 

 

0.00

 

LEYLA VICTORIA ZAMAN IRREV TRUST

 

 

6,132

 

 

 

0.00

 

 

 

6,132

 

 

 

0

 

 

 

0.00

 

RICHARD LEANDRO

 

 

6,000

 

 

 

0.00

 

 

 

6,000

 

 

 

0

 

 

 

0.00

 

KEVIN WILTZ TTEE BBC TRUST

 

 

5,555

 

 

 

0.00

 

 

 

5,555

 

 

 

0

 

 

 

0.00

 

WALTER A BONNETT JR

 

 

5,000

 

 

 

0.00

 

 

 

5,000

 

 

 

0

 

 

 

0.00

 

DONALD KITT

 

 

4,081

 

 

 

0.00

 

 

 

4,081

 

 

 

0

 

 

 

0.00

 

JACQUELINE KNUDSEN

 

 

4,000

 

 

 

0.00

 

 

 

4,000

 

 

 

0

 

 

 

0.00

 

GIANFRANCESCO ROSSI

 

 

3,767

 

 

 

0.00

 

 

 

3,767

 

 

 

0

 

 

 

0.00

 

MERV FISSEL

 

 

3,425

 

 

 

0.00

 

 

 

3,425

 

 

 

0

 

 

 

0.00

 

WAYNE BRIDGES LLC

 

 

3,335

 

 

 

0.00

 

 

 

3,335

 

 

 

0

 

 

 

0.00

 

JONATHAN DAWSON

 

 

3,000

 

 

 

0.00

 

 

 

3,000

 

 

 

0

 

 

 

0.00

 

SAMEH SHENOUDA

 

 

3,000

 

 

 

0.00

 

 

 

3,000

 

 

 

0

 

 

 

0.00

 

SHAHRAM KIHAL

 

 

2,768

 

 

 

0.00

 

 

 

2,768

 

 

 

0

 

 

 

0.00

 

HAROLD GEWERTER

 

 

2,500

 

 

 

0.00

 

 

 

2,500

 

 

 

0

 

 

 

0.00

 

DOUGLAS HANSON

 

 

2,500

 

 

 

0.00

 

 

 

2,500

 

 

 

0

 

 

 

0.00

 

19

Table of Contents

SADEGH SALMASSI

 

 

2,000

 

 

 

0.00

 

 

 

2,000

 

 

 

0

 

 

 

0.00

 

BRIAN COLVIN

 

 

2,000

 

 

 

0.00

 

 

 

2,000

 

 

 

0

 

 

 

0.00

 

PETER A POZNIKOFF

 

 

2,000

 

 

 

0.00

 

 

 

2,000

 

 

 

0

 

 

 

0.00

 

JACOB COLVIN

 

 

2,000

 

 

 

0.00

 

 

 

2,000

 

 

 

0

 

 

 

0.00

 

HAYDEN DAWSON

 

 

2,000

 

 

 

0.00

 

 

 

2,000

 

 

 

0

 

 

 

0.00

 

LS ENTERPRISES INC

 

 

1,761

 

 

 

0.00

 

 

 

1,761

 

 

 

0

 

 

 

0.00

 

SIERRA GROWTH INC

 

 

1,750

 

 

 

0.00

 

 

 

1,750

 

 

 

0

 

 

 

0.00

 

TISA CAPITAL CORP

 

 

1,373

 

 

 

0.00

 

 

 

1,373

 

 

 

0

 

 

 

0.00

 

STEVEN T ONOUE

 

 

1,318

 

 

 

0.00

 

 

 

1,318

 

 

 

0

 

 

 

0.00

 

REZA AKHAVAN

 

 

1,000

 

 

 

0.00

��

 

 

1,000

 

 

 

0

 

 

 

0.00

 

CHRISTINA COLLINS

 

 

885

 

 

 

0.00

 

 

 

885

 

 

 

0

 

 

 

0.00

 

HAROLD GEWERTER ESQ LTD

 

 

749

 

 

 

0.00

 

 

 

749

 

 

 

0

 

 

 

0.00

 

MICHAEL LAMAS

 

 

737

 

 

 

0.00

 

 

 

737

 

 

 

0

 

 

 

0.00

 

ZEESHAN SHABBIR

 

 

608

 

 

 

0.00

 

 

 

608

 

 

 

0

 

 

 

0.00

 

DERRICK BOSKET

 

 

530

 

 

 

0.00

 

 

 

530

 

 

 

0

 

 

 

0.00

 

JOHN SCRUDATO

 

 

500

 

 

 

0.00

 

 

 

500

 

 

 

0

 

 

 

0.00

 

LYNN LUMPKIN

 

 

457

 

 

 

0.00

 

 

 

457

 

 

 

0

 

 

 

0.00

 

LOWELL HOLDEN

 

 

450

 

 

 

0.00

 

 

 

450

 

 

 

0

 

 

 

0.00

 

SHALIKA CHATHURANGI JAYASEKERA

 

 

443

 

 

 

0.00

 

 

 

443

 

 

 

0

 

 

 

0.00

 

IRFAN SHABBIR

 

 

405

 

 

 

0.00

 

 

 

405

 

 

 

0

 

 

 

0.00

 

HASSAN DIVANBEIGI

 

 

275

 

 

 

0.00

 

 

 

275

 

 

 

0

 

 

 

0.00

 

ZZ FRACTIONAL SHARE ACCT

 

 

264

 

 

 

0.00

 

 

 

264

 

 

 

0

 

 

 

0.00

 

 LEYLA VICTORIA ZAMAN IRR TR 12-2

 

 

250

 

 

 

0.00

 

 

 

250

 

 

 

0

 

 

 

0.00

 

STEPHEN GRAY

 

 

209

 

 

 

0.00

 

 

 

209

 

 

 

0

 

 

 

0.00

 

HELEN DAMASUIS

 

 

200

 

 

 

0.00

 

 

 

200

 

 

 

0

 

 

 

0.00

 

BOBBIE KATZ

 

 

192

 

 

 

0.00

 

 

 

192

 

 

 

0

 

 

 

0.00

 

LYNNETTE KINSMAN

 

 

188

 

 

 

0.00

 

 

 

188

 

 

 

0

 

 

 

0.00

 

THERESA WILIAMS

 

 

185

 

 

 

0.00

 

 

 

185

 

 

 

0

 

 

 

0.00

 

ANDREW KWICZOLA

 

 

135

 

 

 

0.00

 

 

 

135

 

 

 

0

 

 

 

0.00

 

JENSEN HANDY

 

 

127

 

 

 

0.00

 

 

 

127

 

 

 

0

 

 

 

0.00

 

DANIEL VASQUEZ-PARRAZ

 

 

104

 

 

 

0.00

 

 

 

104

 

 

 

0

 

 

 

0.00

 

LYNNAI NASH

 

 

101

 

 

 

0.00

 

 

 

101

 

 

 

0

 

 

 

0.00

 

STATE CONTROLLER STATE OF CALIFORNIA

 

 

100

 

 

 

0.00

 

 

 

100

 

 

 

0

 

 

 

0.00

 

JOHN PETERSON

 

 

76

 

 

 

0.00

 

 

 

76

 

 

 

0

 

 

 

0.00

 

PANKAJ SHARMA

 

 

63

 

 

 

0.00

 

 

 

63

 

 

 

0

 

 

 

0.00

 

ANDRICH INCORPORATED

 

 

59

 

 

 

0.00

 

 

 

59

 

 

 

0

 

 

 

0.00

 

DAMIUS FATEMI

 

 

48

 

 

 

0.00

 

 

 

48

 

 

 

0

 

 

 

0.00

 

JUSTIN HANDY

 

 

38

 

 

 

0.00

 

 

 

38

 

 

 

0

 

 

 

0.00

 

BLAYNE SHEFFIELD

 

 

36

 

 

 

0.00

 

 

 

36

 

 

 

0

 

 

 

0.00

 

AVERIA

 

 

17

 

 

 

0.00

 

 

 

17

 

 

 

0

 

 

 

0.00

 

THE WHITESTONE GROUP

 

 

10

 

 

 

0.00

 

 

 

10

 

 

 

0

 

 

 

0.00

 

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

 

 

5

 

 

 

0.00

 

 

 

5

 

 

 

0

 

 

 

0.00

 

GEORGIA REVENUE COMMISSIONER

 

 

3

 

 

 

0.00

 

 

 

3

 

 

 

0

 

 

 

0.00

 

GLORY OF THE WEST & CO

 

 

1

 

 

 

0.00

 

 

 

1

 

 

 

0

 

 

 

0.00

 

 

 

Total

 

 

 

 

 

 

 

2,585,717

 

 

 

 

 

 

 

______________ 

(1)

None of the selling stockholders are broker/dealers or affiliates of the company.17

(2)

The number and percentageTable of shares beneficially owned is determined in accordance with Rule 13d-3 of the Securities Exchange Act of 1934, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rule, beneficial ownership includes any shares as to which the selling stockholder has sole or shared voting power or investment power and also any shares, which the selling stockholder has the right to acquire within 60 days. The total issued and outstanding common stock as of February 1, 2021 is 12,903,039.Contents

(3)

We have assumed the sale of all of the common shares will be sold. As the selling stockholders can offer all, some or none of their common stock, no definitive estimate can be given as to the number of shares that the selling stockholders will offer or sell.

20

Table of Contents

SELECTED FINANCIAL DATA

The following table presents the company’s selected financial data for the periods presented and should be read together with the sections of this prospectus titled “Risk Factors” and our financial statements and related notes thereto appearing elsewhere in this prospectus. The following selected statements of operations data for the nine months ended September 30, 2020 and December 31, 2019 are derived from our unaudited and audited financial statements included elsewhere in this prospectus. The summary of our financial data set forth below should be read together with our financial statements and the related information, as well as in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included elsewhere in this prospectus.

 

 

Unaudited

 

 

Audited

 

 

 

September 30,

2020

 

 

December 31,

2019

 

Balance Sheet:

 

 

 

 

 

 

Working Capital

 

 

(349,746)

 

 

(321,331)

Total Assets

 

 

191,533

 

 

 

29,879

 

Total Liabilities

 

 

555,004

 

 

 

348,304

 

 

 

 

 

 

 

 

 

 

Statement of Operations:

 

 

 

 

 

 

 

 

Revenue

 

 

2,954

 

 

 

53,793

 

Depreciation

 

 

24,102

 

 

 

31,668

 

General & Administrative

 

 

493,438

 

 

 

115,695

 

Other Income (Expense)

 

 

(573,816)

 

 

(59,456)

Net Loss

 

 

(1,088,402)

 

 

(153,026)

 

 

 

 

 

 

 

 

 

Loss per Share (Basic & Diluted)

 

 

(0.09)

 

 

(0.01)

Weighted Average. Shares Outstanding

 

 

12,269,852

 

 

 

11,936,422

 

21

Table of Contents

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

TheYou should read the following discussion and analysis should be read in conjunction with our Financial Statements and the notes thereto, set forth in the “Financial Statements”, as well as what is set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, and the Condensed Consolidated Financial Statements and notes included in Part I of our 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 the Quarterly Report on Form 10-Q as well.

Overview

Crown Equity Holding, Inc. and or (the Company) office is located at 11226 Pentland Downs Street, Las Vegas, NV 89141.

As of June 30, 2020 Crown, Equity has zero employees and is utilizing the services of three independent contractors and the following four officers, Mike Zaman, Kenneth Bosket, Montse Zaman and Vinoth Sambandam.

The following discussion of the financial condition, changes in financial condition and results of operations with our unaudited consolidated financial statements as of the Companyand for the fiscalsix months ended June 30, 2023 and 2022 (the “Interim Financial Statements”) and our audited consolidated financial statements as of and for the years ended December 31, 20192022 and 20182021 (the “Annual Financial Statements”), together with the related notes thereto included elsewhere in this prospectus. The discussion and the analysis should also be read in conjunctiontogether with the financialinformation set forth in the section entitled “Business.” The following discussion contains forward-looking statements based upon current expectations that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” or in other parts of this prospectus. Our historical results are not necessarily indicative of the Company and related notes included therein.results that may be expected for any period in the future.

 

Overview

The Company will continue to search for additional areas in which it can generate revenue to reap the benefits and rewards of being profitable, but there can be no guarantee that profitability will be achieved in the near or long-term future. 

The Company will attempt to carry out its business plan, which is to continue building its network of online publishing sites, as well as continuing to provide consulting and services to its clients on an as-needed basis. These services include general and financial management to private and public companies with an emphasis on their financial reporting and filing requirements. Such services are subject to the needs of its clients and may vary by company. The Company cannot predict to what extent its lack of liquidity and capital resources will hinder its business plan.

Liquidity and Capital Resources

 

Since inception, the Company’sCompany's most significant change in liquidity or capital resources or stockholders’stockholders' equity has been receipts of proceeds from offerings of its capital stock. The revenue transaction does not reflect the ability of the Company to fund itself without outside sources in the future. Further, there exist no agreements or understandings regarding loan agreements by or with the Officers, Directors, principals, affiliates or shareholders of the Company. In the past, officers and directors of the Company have lent or advanced monies to the Company to fund operations, there are no formal agreements or arrangements for them to continue to do so. As of December 31, 2019,2022, the Company has $997had $2,930 in cash, which includes $649.71 held in brokerage accounts and $25,976$0.00 of long-term debt. As of the period ending June 30, 2023, the company had $3,165 in cash, which includes $649.71 held in brokerage accounts and $0 of long-term debt.

 

At December 31, 2019, the CompanyAs of June 30, 2023, Crown Equity had negative working capital of $321,331 which consisted of current assets of $997$3,165 and current liabilities of $322,328. The current liabilities$1,421,789 resulting in a working capital deficit of the Company at December 31, 2019 are composed of accounts payable and accrued expenses of $210,223, accounts payable and accrued expenses and notes payable to related party of $80,664 and $760, respectively, and current portion of long-term debt of $30,681.

Cash flows use in$1,418,624. Net cash used by operating activities duringfor the yearsix months ended December 31, 2019June 30, 2023, was $67,675$39,372 compared to net cash flow used of $52,870$50,779 for the same period in 2018.2022.

 

Cash flowsNet cash provided by investing activities werewas $0 and $37,000 for the yearssix months ended December 31, 2019June 30, 2023, and 2018.2022, respectively.

 

Cash flowsNet cash provided by financing activities during the six months ended June 30, 2023, was $55,378 for the year ended December 31, 2019$39,607 compared to $64,302net cash provided of $16,077 for the same period in 2018. The financing activities in 2018 consisted of proceeds from sales of stock and proceeds from convertible notes payable2022. For the six months ended June 30, 2023, we borrowed $43,900 from related parties. The financing activitiesparties compared to $14,500 for the same period in 2019 consisted mostly of proceeds from sale of stock.2022.

 

As of December 31, 2019, the Company had total assets of $29,879 and total liabilities of $348,304. Stockholders’ deficit as of December 31, 2019 was $318,425 compared to a deficit of $329,242 at December 31, 2018. The Company will attempt to carry out its plan of business as discussed above. The Company cannot predict to what extent its lack of liquidity and capital resources will hinder its business plan. The Company will need additional capital to fund that proposed operation.

22

Table of Contents

Need for Additional Financing

The Company’sOur existing capital may not be enoughsufficient 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.

18

Table of Contents

NEED FOR ADDITIONAL FINANCING

The Company's existing capital may not be sufficient to meet the Company’sCompany's cash needs, including the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934, as amended.

 

No commitments to provide additional funds have been made by management or other stockholders. Accordingly, there can be no assurance that any funds will be available to the Company to allow it to cover its expenses.

 

The Company might seek to compensate providers of services by issuances of stock in lieu of cash.

 

Results of Operations


Comparison of the Year Ended December 31, 2019 to the Year Ended December 31, 2018RESULTS OF OPERATIONS

 

Revenues

Sales for the year ended December 31, 2019 were $53,793 compared to $10,452 for the year ended December 31, 2018, an increase of $43,341. Of the $53,793 revenue in 2019, $50,000 was from related parties.

Operating Expenses

During the year ended December 31, 2019, we incurred $147,363 in operating expenses, compared to $342,372 in the same period ended December 31, 2018, a decrease of $195,009 mainly due to decrease in consulting and professional fees expense incurred.

Other Income and Expenses

During the year ended December 31, 2019, we incurred other expenses of $59,456, consisting of interest expense of $21,885 and amortization of the beneficial conversion feature of our convertible notes of $38,920 and gain on extinguishment of debt of $1,349. In the year ended December 31, 2018 we had other expenses of $42,900 consisting of interest expense of $17,996 and amortization of the beneficial conversion feature of our convertible notes of $24,904.

Net Loss

The Company had a net loss for the year ended December 31, 2019 of $153,026 compared to a net loss of $374,820 for the year ended December 31, 2018, a decrease of $221,794 mainly due to decrease in consulting and professional fees.

ThreeSix months ended SeptemberJune 30, 20202023, Compared to the ThreeSix months ended SeptemberJune 30, 20192022

 

For the threesix months ended SeptemberJune 30, 2020,2023, revenues were $1,877$0 and $419$2,707 for the same period in 2019.2022.

 

Revenues for the threesix months ended September 30, 2020 was higher primarily due to advertising revenue not earned for the same period in 2019.

Operating expenses were $145,043 for the three months ended September 30,2020 and $50,029 for the same period in 2019.  Increase in operating expenses was primarily due to increase of $105,000 in quarterly officer compensation.

Other expenses for the three-month period ended SeptemberJune 30, 20202023 were $24,775 and $3,644 for the same quarter in 2019. The increase in other expenses was due investment expense of $17,000 and $5,164 and loss on stock held $2,611.

Interest expense for the three months ended September 30, 2020 and 2019 was $5,164 and $3,644, respectively.

Nine months ended September 30, 2020 Compared to the Nine months ended September 30, 2019

For the nine months ended September 30, 2020, revenues were $2,954 and $53,464 for the same period in 2019.  Revenues for the nine months ended September 30, 2020 was significantly lower compared to the same period in 2019 primarily due2022, which was cause to there being no revenue earned through any of the services offered by the Company, such as advertising, income from related parties earned inclick based and impressions ads on its web sites, as well as the same period in 2019.publishing, and distribution of press releases, or the use of the company’s server services. Since the discovery of some software server functioning errors, the Company has focused its attention on performing assessments and correcting its findings, being that its web the primary source for its services.

 

Operating expenses were $517,540$36,306 for the ninesix months ended September 30,2020 and $132,313June 30,2023 which was lower than $254,507 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.

23

Table of Contents

2022.

 

Other expensesincome(expenses) for the nine-monthsix-month period ended SeptemberJune 30, 20202023 were $573,816($1,472) and $51,211$258,622 for the same period in 2019.2022. The increasedecrease in other expenses was primarily due to the recording of lossa decrease in Gain (loss) on shares issued to settle accounts payable, loss on shares issued for inducement of NP, investment expense, and expenses for inducement of Note Payable.Stocks Held or Sold.

 

Interest expenseexpenses for ninethe six months ended SeptemberJune 30, 20202023 and 2019 was $11,8712022 were $1,472 and $12,291,$1,438, respectively.

 

LIQUIDITY AND CAPITAL RESOURCESOPERATING EXPENSES

 

As of September 30, 2020, Crown Equity had current assets of $186,753 and current liabilities of $536,499 resulting in working capital deficit of $349,746. Net cash used byThe total operating activitiesexpenses were $36,306 for the ninesix months ended SeptemberJune 30, 2020 was $75,0112023 compared to net cash used of $50,315$254,507 for the same period in 2019.2022, which was primarily caused by the Company having a much lower general and administrative expenses.

 

Net cash used in investing activities was $170,000 and $0.00 for the nine months ended September 30, 2020 and 2019 respectively

Net cash provided by financing activities during the nine months ended September 30, 2020 was $263,378 compared to net cash provided of $44,345 for the same period in 2019.  For the nine months ended September 30, 2020, we borrowed $33,675from related parties, and received a loan from the Small Business Administration for $4,000.  We also sold 472,000 shares of common stock for $243,500.

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.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

 

We have retained M&K CPAS, PLLC as our registered independent public accounting firm. We have had no disagreements with them on accounting and disclosure issues.

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company”Company” as defined by Item 12b-2 of the securities exchange actSecurities Exchange Act of 1934 (the “exchange act”), and we are not required to provide information required under this Item.

 

DESCRIPTION OF BUSINESS

Crown Equity Holdings, Inc. (CRWE or the Company) was formerly known as Micro Bio-Medical Waste Systems, Inc. and was incorporated on August 31, 1995 as "Visioneering Corporation" under the laws of the State of Nevada.

The Company maintains its executive office at 11226 Pentland Downs Street, Las Vegas, NV 89141

Overview

 

CRWE WORLD is a Crown Equity Holdings, Inc. online business that engages local, state, national, and global consumers everydaydaily with its worldwide business-focused digital publishing company platform, thatplatform. It is designed to disseminate news and press releases received from various sources and presentspresent them in one location for easy viewing, making the company’s site an efficient way of keeping its worldwide business relatedbusiness-related and general public market readership informed with news from one site.

 

 
2419

Table of Contents
Table of Contents

crwe_s1img13.jpg

                                                       

CRWEWORLD (a Crown Equity Holdings, Inc. Company

featured on NASDAQ billboard in Times Square. (Year:2017)

 

People use the CRWE WORLD digital online media site on their electronic devices, including smart phones,smartphones, laptops, and pads to stay connected and keep up to date as much as possible with the relevant information in their respective industries, which is not always easy to do. CRWE WORLD news goal is to give people the ability to read through the latest news stories that have an impact on the individuals or their businesses, all from one convenient location, so there’sthere is no need to comb throughsearch dozens of websites hoping to find the news that they want.

 

People can use CRWE WORLD, Newsa news aggregator platform to take care ofhandle the busy workbusywork and putplaces the information desired at their fingertips to discover what is happening in the business world around them. As the saying goes, “knowledge is power,” and news aggregators are an excellent way to obtain the knowledgeinformation in one location.

 

As digital publishing continues to expand and grow, a person only has to get to the site and select the news that he or shethe indivisual is interested in reading. With CRWE WorldWORLD is finding success by casting a business relatedbusiness-related news site to the financial market segments.

 

CRWE WORLD also creates engagements by providing readershipsreaders with the ability to create and share their news, stories, and events from or within their communities.

 

crwe_s1img14.jpg

 

CRWE WORLD is built on the assumption that while there are still plenty of print and online publications around,available, its primary focus is publishing news and various types of business-related news in one place, unlike most aggregated publishers. CRWE WORLD is using its niche of being primarily business-related news. ThoughAlthough the companyCompany does not generate revenue directly from its users, the company revenue’sCompany revenue sources will come from the advertisers desiring to engage the company’sCompany’s monthly active users for a fee. Starting withfee, through the placement of online banners designed for digital advertising, through the use of sponsored hyperlinks, pay-per-click, or impressions to drive traffic to their websitewebsites for the purpose of increasing their brand orand product awareness.

 

 
2520

Table of Contents
Table of Contents

 

crwe_s1img15.jpg

 

To build a successful digital media company, it’sit is important weto continue to diversifydiversifying our product portfolio. With more content, employees, and a sales team, Crown Equity Holdings, Inc., believes that there is a significant opportunity to expand the CRWE World’s user and business bases. Industry sources estimate that almost 4.57 billion people were active internet users as of July 2020, encompassing 59 percent of the global population.

Cybersecurity Ventures predicts that there will be more than 7.5 billion internet users by 2030.

 

Company’s Values:

 

 

·

Integrity in all we do.

 

·

Increase shareholders value, build financial strength of our companyCompany, and therefore, prosper as business.

 

Growth Strategy

 

Crown Equity Holdings, Inc. has aligned its CRWE World business growth strategy around the two primary constituents of its platform: “users” and “advertisers”.

 

Advertiser:Crown Equity Holdings, Inc. can increase the value of its platform for advertisers by enhancing the advertising services and making our platform more accessible.

 

Mobile Applications:The company planGiven the growth of mobile commerce, it’s become increasingly important for businesses to focus their efforts on mobile marketing. Therefore, the Company plans to develop mobile applications to drive user adoption of these applications. According to Statista, the current number of smart phone users in the world today is 3.5 billion, and this means 44.85% of the world's population are smart phone usersadoption.

 

Product Development: The companyCompany is to continue building and acquiring new technologies to develop and improve its products and services and make the platform more valuable and accessible to people around the world. Crown Equity Holdings Inc. also planplans to continue toits focus on making the CRWE WORLD simple and easy to use, particularly for new users.

 

Targeting: The company planCompany plans to continue to improveimproving the targeting capabilities of ourits advertising services.

 

Opening the Company Platform to Additional Advertisers:The companyCompany believes that advertisers outside of the United States represent a substantial opportunity, and we plan to invest to increase ourin increasing advertising revenue from international advertisers, including by launching our self-serve advertising platform in selected markets.

 

New Advertising Formats:The companyCompany intends to develop new and unique adadvertising formats for our advertisers.

 

 
2621

Table of Contents
Table of Contents

  

Competitive Advantage

 

Benefits of specialization include greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors.

 

Knowing that theThe internet contains an unending stream of information and data at all times, combined with so much information available from some of the most popular news aggregators sources, which includeincluding Feedly, Google News, Alltop, and Flipboard, which can get overwhelming when searching for up-to-date information within a selected industry. Therefore, not only does CRWE WORLD aims to specialize in providing business information in a specific field, butso its target marketreadership can limit their search to one source within the aggregated news industry. The Company believes that as it specializes, it will automatically gather a higher perception of authority in the marketplace.

 

Here are a few examples of natural evolutions in specialization:

 

 

·

Real estate agent to buyer’s agent

 

·

General auto mechanic shop to quick oil change shop

 

·

·

Business consultant to marketing consultant to marketing consultant

 

The Company plans to specialize in aggregating business press releasereleases and new, and focusnews, focusing on providing that value for its   readerships and clients.

27

Table of Contents

 

Other Products and Services

 

Crown Equity Holdings, Inc., in addition to CRWE Word,World, it owns the following online sites::

 

crwe_s1img16.jpg

 

iB2B Global (https://ib2bglobal.com)(ib2bglobal.com), an online e-commerce marketplace that is near completion, will offer a trusted platform to enable businesses to transform the way they market, sell, and operate. The companyCompany will provide the technology infrastructure and marketing reach to help merchants, brands, and other businesses, as well as consumers, to leverage the power of the internet to engage with their users and customers and operate in a more efficient way in sellingto sell merchandise. The site is designed for businesses-to-consumerbusiness-to-consumer (B2C) buying and selling fashion accessories, tools, grooming products, electronics, furniture, home goods, and much more over the internet, and for business-to-business (B2B) merchandise through the iB2B Global web portal internationally. In fact, anything that is legally sellable may be sold through iB2B Global.

 

The companyCompany will generate its revenues from memberships, percentages from products and advertisements.

 

22

Table of Contents

 

crwe_s1img17.jpg

 

 

CRWE Press Release (www.crwepressrelease.com)(crwepressrelease.com) is a digital news and press release business that provides publishing and distribution as a solution for online written communication in reference to businesses for the purpose of announcing something that is newsworthy. This site low cost press release dissemination allows small to mid-cap public companies trading on the OTC, NYSE, NASDAQ, and NYSE Market, as well as privately own businesses to takes advantage of our per release price, or for those desiring "unlimited press release", with a flat rate plan to allow businesses to reach their target audiences whenever they want and still stay within a flat rate budget, to distribute an unlimited amount on an annually basis. CRWE Press Release offers increased visibility through its unique distribution model for bothdisseminates full-text press releases from public companies, privately owned businesses, and private companies, which will automatically publish its contentsorganizations through “CRWE WORLD” online network of news and information publications. 

 

28

Table of Contents

As the company gains market share, CRWE Press Release aims to distribute information to other news media outlets, financial markets, disclosure systems, investors, information web sites, databases, bloggers, social networks, and other audiences.

 

crwe_s1img18.jpg

 

CRWETUBE (https://crwetube.com)(crwetube.com) is Crown Equity Holdings’an online video-sharing hosting service that allows users to upload videos to share for exposure, branding, marketing, and advertising purposes. The business will generate its revenue through advertisementadvertisements from all video content being viewed.

 

23

Table of Contents

crwe_s1img19.jpg

 

CRWETECH (https://crwetech.com)(crwetech.com) is an IT/technology business that is offering its dependable IT support, web hosting,  andweb design, server maintenance, and other services to businesses in various professions, as the IT world grows more complex as technology evolves. The business is presently in the process of establishing new services involving cloud computing to its line of services in providing web development and designing, as well as mobile applications, server maintenance, and web hosting.

 

29

Table of Contents

MANAGEMENT

Executive Officers and Directors

 

The following table sets forth the name, agenames and positionages of all directors and executive officers of the Company and all persons nominated or chosen to become a director, indicating all positions and offices with the Company held by each of oursuch person and the period during which they have served as a director:

The principal executive officers, and directors and director nomineesof the Company as of January 29, 2017.June 30, 2023, are as follows:

 

Name

Age

Positions Held and Tenure

Mike Zaman

66

64

DirectorChairman since 11/2013; appointed President/CEO since 07/7/2015

Kenneth Cornell Bosket

70

Director since 06/2008; appointed to CFO since 6/2016

Montse Zaman

48

Director, Secretary and Treasurer since 02/2008

Shahram Khial

72

Director, Vice President of Marketing since 08/2020

Mohammad Sadrolashrafi

 

67

 

Director, Vice President of Operations since 06/2008; appointed to CFO since 06/201608/2020

Montse Zaman

Jamie Hadfield

 

45

 

Director, SecretaryMarketing/Merger and TreasurerAcquisition Officer since 02/200810/2021

Vinoth Sambandam

37

Appointed CTO in 01/2017

Malcolm Ziman

69

Director and appointed Vice President of Finance since 08/2020

Dr. Shahram Khial, Ph.D.

70

Director and appointed Vice President of Marketing since 08/2020

Mohammad Sadrolashrafi

Registered Professional Eng.

65

Director and appointed Vice President of Operations since 08/2020

 

There are no family relationshiprelationships between or among any OfficerOfficers and DirectorDirectors except that Mike Zaman and Montse Zaman are husband and wife.

 

The Directors named above will serve until the next annual meeting of the Company’sCompany's stockholders. Thereafter, Directors will be elected for a one-year termsterm at the annual stockholders’stockholders' meeting. Officers will hold their positions at the pleasure of the Board of Directors, absent any employment agreement, of which none currently existexists or is contemplated. There is no arrangement or understanding between the Directors and Officers of the Company and any other person pursuant to which any Director or Officer was or is to be selected as a Director or Officer of the Company.

24

Table of Contents

 

The Directors and Officers of the Company will devote their time to the Company’sCompany's affairs on an “as needed”"as needed" basis. As a result, the actual amount of time which each will devote to the Company’sCompany's affairs is unknown and is likely to vary substantially from month to month.

 

The Board of Directors acts for the Company as thehas no audit andor compensation committee.

 

Business Experience: The following is a brief account of the business experience for the past five years of the directors and executive officers, indicating their principal occupations and employment during that period, and the names and principal businesses of the organizations in which such occupations and employment were carried out.

 

MIKE ZAMAN - Mike Zaman is the Chairman, President and CEO of the company. He was born in Tehran, Iran and moved to Florida in the 1980’s where he attended Florida International University to study Computer Science. Since becoming a U.S. citizen, he has been a corporate, marketing and sales consultant for many numerous companies and has advised or consulted in the process of mergers, acquisitions, as well as the raising of capital for private and public entities. He was appointed as the Company’s Chief Marketing Officer in October of 2013.

 

KENNETH CORNELL BOSKET - Kenneth Cornell Bosket is a director and CFO of the Company. Mr. Bosket has been a member of the Company’s team since June, 2008. Mr. Bosket retired in 2004 after 30 years with Sprint (Telecommunication Division). Mr. Bosket is a former Board Member and President of Bridge Counseling Associates, a mental health and substance abuse service company. His experience includes implementing appropriate procedures for positioning his organization’sorganization's goals with successful teaming relationships, marketing and over 30 years of extensive customer service, as well as managing various departments, and being a western division facilitator working directly for a President of Sprint. Mr. Bosket earned a MasterMasters of Business Administration from the University of Phoenix and a BachelorBachelor's of Business Administration from National University.

 

MONTSE ZAMAN - Montse Zaman is the corporate secretary of the Company. She worked for Zaman & Company, a private business consulting firm, as an administrative assistant. In 2008, she joined the Company. Ms. Zaman has extensive organizational experience. She has a Bachelor’sBachelor degree in Communications from the Instituto Superior De Ciencia Y Tecnologia A.C. in Mexico.

 

VINOTH SAMBANDAM - Vinoth Sambandam, is the Chief Technology Officer, with several years of technical (IT) experience and has a background in BPO sector. Mr. Sambandam did his B.tech Information Technology in Dhanalakshmi College of Engineering in Chennai, India.

30

Table of Contents

MALCOLM ZIMAN - Malcolm Ziman a businessman who has knowledge in finance, mergers, and acquisitions, and capital markets, combined with his professional experience in diverse operational, managerial, and administrative skills. Mr. Ziman studied Finance at University of Stellenbosch Business School in Bellville, Western Cape, South Africa and studied Marketing at Damelin College in South Africa.

SHAHRAM KHIAL - Shahram Khial, Ph.D. has sound interpersonal communication skills in several languages, effective interfacing with health care institutions, communities, organizations and industries, public and private sectors within all levels of management. Mr. Khial havehas served on the board of directors of several private and publicly held corporations. He earned a Bachelor’s degree in Law and Political Sciences and a MastersMaters of Public Administration Program from the University of Tehran in Tehran, Iran. Mr. Khial received his Ph.D. in Educational Administration from the University of Utah in Salt Lake City, Utah.

 

MOHAMMAD SADROLASHRAFI - Mohammad Sadrolashrafi P.E. has multidisciplinarymulti-disciplinary managerial, administrative and technical experience, as well as having the people skillskills to manage, negotiate, plan, design and to achieve the company’s strategic goals. Mr. Sadrolashrafi received his Civil Engineering, Associate Degree in Science from Northern Virginia Community College in Annandale, VA and a Civil Engineering, Bachelor of Science degree from the University of Nevada at Reno, in Reno, NV.

JAMIE HADFIELD - Jamie Hadfield is a healthcare professional with sound interpersonal communication skills, as well as a well-rounded balanced and effective individual with various managerial skills to achieve the company’s strategic goals. Jamie earned her Master’s degree in business administration from Webster University, Saint Lewis, Missouri and received her Bachelors of Science Nursing from the Regents College, Albany, New York.

 

Code of Ethics

 

The Company previously adopted a Code of Ethics in 2004. The Company has revised the Code of Ethics and is adopting a new Code of Ethics which applies to its directors as well as to its officers including its principal executive officer, principal financial officer, and principal accounting officer. A copy of the Code of Ethics is attached as an Exhibit to this Report and is also available on the Company’s website, www.crownequityholdings.com .crownequityholdings.com. A copy of the Code of Ethics is also available at no charge to anyone who may send a request in writing to the Company, addressed to its CEO, at Las Vegas, NV 89141.CEO.

25

Table of Contents

 

EXECUTIVE COMPENSATION

Summary Compensation Table

 

During the fiscal year 2019period 2022, the Company recorded aggregate compensation of $467,850 due to officers and directors. As of December 31, 2022, the outstanding balance due to officers and directors was $1,052,300.

During the fiscal period 2022, the Company paid its officers and directors an aggregate of $9,150. During fiscal year 2018 the Company paid its officers and directors (Kenneth Bosket, Arnulfo Saucedo-Bardan and Vinoth Sambandam) an aggregate of $5,984. The remaining$16,050. Some directors made the decision to serve as officers and/or directors without compensation upon appointment.

31

Table of Contents

During the period ending June 30, 2023 there were no directors serving with compensation.

 

The following tables sets for the compensation for all officers and directors during the past three years:

 

Annual compensation

 

 

 

 

 

Long-term compensation Awards

 

 

 

Name and Principle Position

 

Year

 

Salary

($)

 

 

Bonus

($)

 

 

Other

annual

compensation

($)

 

 

Restricted

stock

award(s)

($)

 

 

Securities

underlying

options/

SARs

(#)

 

 

Payouts

LTIP

payouts

($)

 

 

All other

compensation

($)

 

 

Total

Compensation

 

Kenneth Bosket

 

2019

 

3,650

 

-

 

-

 

-

 

-

 

-

 

-

 

3,650

 

CFO, Director

 

2018

 

1,000

 

-

 

-

 

-

 

-

 

-

 

-

 

1,000

 

 

2017

 

16,500

 

-

 

-

 

-

 

-

 

-

 

-

 

16,500

 

 

Annual compensation

 

 

Long-term compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Awards

 

 

 

 

 

 

 

Arnulfo Saucedo-Bardan

 

2019

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Former COO, Director

 

2018

 

1,400

 

-

 

-

 

-

 

-

 

-

 

-

 

1,400

 

Name and Principal Position

 

Year

 

Salary

($)

 

 

Bonus

($)

 

 

Other

annual

compensation

($)

 

 

Restricted

stock

award(s)

($)

 

 

Securities

under-

lying

options/

SARs

(#)

 

 

Payouts

LTIP

payouts

($)

 

 

All other

compen-

sation

($)

 

 

Total Compensation

 

Kenneth Cornell Bosket

 

2022

 

60,000

 

-

 

-

 

-

 

-

 

-

 

-

 

60,000

 

CFO, Director

 

2021

 

60,000

 

-

 

-

 

-

 

-

 

-

 

-

 

60,000

 

 

2017

 

6,250

 

-

 

-

 

-

 

-

 

-

 

-

 

6,250

 

 

2020

 

60,000

 

-

 

-

 

-

 

-

 

-

 

-

 

60,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Montse Zaman

 

2019

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2022

 

50,000

 

-

 

-

 

-

 

-

 

-

 

-

 

50,000

 

COO, Director

 

2018

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2021

 

60,000

 

-

 

-

 

-

 

-

 

-

 

-

 

60,000

 

 

2017

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2020

 

60,000

 

-

 

-

 

-

 

-

 

-

 

-

 

60,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman

 

2019

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2022

 

240,000

 

-

 

-

 

-

 

-

 

-

 

-

 

240,000

 

CEO, Director

 

2018

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2020

 

240,000

 

-

 

-

 

-

 

-

 

-

 

-

 

240,000

 

 

2017

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

2019

 

240,000

 

-

 

-

 

-

 

-

 

-

 

-

 

240,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vinoth Sambandam

 

2019

 

5,500

 

-

 

-

 

-

 

-

 

-

 

-

 

5,500

 

 

2022

 

12,000

 

-

 

 -

 

-

 

-

 

-

 

-

 

12,000

 

CTO

 

2018

 

3,584

 

-

 

-

 

-

 

-

 

-

 

-

 

3,584

 

 

2021

 

12,000

 

-

 

 -

 

-

 

-

 

-

 

-

 

12,000

 

 

2017

 

25,008

 

-

 

-

 

-

 

-

 

-

 

-

 

25,008

 

 

2020

 

21,756

 

-

 

21,756

 

-

 

-

 

-

 

-

 

43,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shawn Jones

 

2022

 

500

 

-

 

-

 

-

 

-

 

-

 

-

 

500

 

 

2021

 

 -

 

-

 

-

 

-

 

-

 

-

 

-

 

 -

 

 

2020

 

 -

 

-

 

-

 

-

 

-

 

-

 

-

 

 -

 

The directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at a meeting of the Board of Directors.

 

The Company has no material bonus or profit-sharing plans pursuant to which cash or non-cash compensation is or may be paid to the Company’sCompany's directors or executive officers.

 

The Company has no compensatory plan or arrangements, including payments to be received from the Company, with respect to any executive officer or director, where such plan or arrangement would result in any compensation or remuneration being paid resulting from the resignation, retirement or any other termination of such executive officer’sofficer's employment, or from a change-in-control of the Company, or a change in such executive officer’sofficer's responsibilities following a change-in-control and the amount, including all periodic payments or installments where the value of such compensation or remuneration exceeds $100,000 per executive officer.

26

Table of Contents

 

During the last completed fiscal year, no funds were set aside or accrued by the Company to provide pension, retirement or similar benefits for Directors or Executive Officers.

 

The Company has no written employment agreements.

 

In December 2007, the Company adopted the Crown Equity Holdings, Inc. Consultants and Employees Stock Plan for 2007. Under the Plan, 50,000 shares are reserved for issuance to employees, officers, directors, advisors, and consultants. As of December 31, 2013, 28,855 shares had been issued under the Plan. During 2014, an additional 20,500 shares were issued under the Consultants and Employees Stock Plan.

 

In October 2014, the Company adopted a new Crown Equity Holdings, Inc. Consultants and Employees Stock Plan for 2014. As of December 31, 2014 through March 31, 2023 no shares were issued from this plan.

 

Termination of Employment and Change of Control Arrangement. Except as noted herein, the Company has no compensatory plan or arrangements, including payments to be received from the Company, with respect to any individual named above from the latest or next preceding fiscal year, if such plan or arrangement results or will result from the resignation, retirement or any other termination of such individual’sindividual's employment with the Company, or from a change in control of the Company or a change in the individual’sindividual's responsibilities following a change in control.

 

32

Table of Contents

Section 16(a) Beneficial Ownership Reporting Compliance. During the year ended December 31, 2019, the following persons were officers, directors and more than ten-percent shareholders of the Company’s common stock:

Name

Position

Filed Reports

Montse Zaman

Officer, Director

Yes

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.

 

During the period ending December 31, 2019,On January 11, 2023, the Company issued 96,315 shares Common stock forentered into a convertible promissory note with Mike Zaman in the settlementamount of $48,324 debt from related parties.

OCHC LLC total notes payable of $3,155 was converted to restricted shares of common stock during March of 2019$1,100 at aan interest rate of $0.50 per share, as stated within12%. As of June 30, 2023, the terms of the agreement.principal balance on this note was $1,100.

 

On January 8, 2019, Mr. Cantor resigned. On December 18, 2019, his 300,000 restricted shares23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of common stock were returned to$2,500 at an interest rate of 12%. As of June 30, 2023, the Company.principal balance on this note was $2,500.

 

On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of December 31, 2019,June 30, 2023, the company recognized $50,000 of related party revenue for nine months of Advertising services for client during July 1, 2018 through April 1, 2019principal balance on this note was $1,000.

 

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of December 31, 2019,June 30, 2023, the Company had a payable of $760 to Mike Zaman, director for expenses paidprincipal balance on behalf of the Company. The holder has the right to convert principal of thethis note and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of payables, the conversion price was less than the trading price of the stock. The Company recorded 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.$10,000.

 

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of December 31, 2019,June 30, 2023, the principal balance on this note was $18,000.

On May 08, 2023, the Company entered into a promissory note with Mike Zaman has forgivenIrrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $5,800.

On June 02, 2023, the Company $9,282entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest owedrate of 12%. As of June 30, 2023, the principal balance on this note was $2,500.

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in reference to his notes.the amount of $3,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $3,000.

 

The Company is periodically advanced operating funds from related parties with convertible notes payable. During the nine months ended December 31, 2019, there were noAs of June 30, 2023, total convertible notes and non-convertible notes from related parties.parties were $38,800 and $30,900 respectively. The Company is also periodically advanced funds to cover account payables by direct payment of the account payables from related parties.

 

27

As of December 31, 2019, the Company had a payable of $18,756 to Vinoth Sambandam, an officer of the Company for services performed.

As of December 31, 2019, and 2018, the outstanding balance of accounts payable to related parties was $80,664 and $61,156 respectively.

As of December 31, 2019, the outstanding balance of convertible notes payable to related parties was $760.

As of December 31, 2019, and 2018, the company had an expense of $4,343 and $8,160 respectively to Mike Zaman, a director and CEO of the Company for automobile lease agreements.

Table of Contents

 

Incorporation of Certain Information by Reference.INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

 

The registrant electsSEC allows us to “incorporate by reference” into this prospectus the information we file with the SEC, which means that we can disclose important information to you by referring you to those documents. Any information referenced this way is considered to be part of this prospectus, and any information that we file later with the SEC will automatically update and, where applicable, supersede this information. We incorporate information by reference pursuant as follows:the following documents that we have filed with the SEC (other than, in each case, documents or information deemed to have been furnished and not required to be filed with the SEC):

 

·

a)

The registrant’sour Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities &and Exchange Commission on May 29, 2020;March 31, 2023; and

 

 

·

b)

The registrant’sour Quarterly Reports on Form 8-K10-Q for the period ended March 31, 2023 and the period ended June 30, 2023, filed with the U.S. Securities &and Exchange Commission on May 15, 2023, and August 18, 2020; and

14, 2023 respectively.

c)

The registrant’s Form 10-Q filed with the U.S. Securities & Exchange Commission on June 1, 2020; and

d)

The registrant’s Form 10-Q filed with the U.S. Securities & Exchange Commission on August 11, 2020; and

e)

The registrant’s Form 8-K filed with the U.S. Securities & Exchange Commission on August 18, 2020; and

f)

The registrant’s Form 10-Q filed with the U.S. Securities & Exchange Commission on November 20, 2020.

33

Table of Contents

 

All the reports referenced above may be found onAdditionally, all documents filed by us with the SEC website at www.sec.gov. The registrant hereby commits: (i) That it will provideafter the date of the initial filing of the registration statement to each person, including any beneficial owner,which this prospectus relates and prior to whom aeffectiveness of such registration statement, and the date of this prospectus is delivered, a copyand before the termination or completion of any or all of the reports or documents that have beenoffering hereunder, shall be deemed to be incorporated by reference ininto this prospectus from the prospectus contained inrespective dates of filing of such documents, except that we do not incorporate any document or portion of a document that is “furnished” to the registration statementSEC, but not delivereddeemed “filed.” We will not, however, incorporate by reference in this prospectus any documents or portions thereof that are not deemed “filed” with the prospectus; (ii) That it will provide these reports or documents upon written or oral request; (iii) That it will provide these reports or documents at no cost to the requester.SEC.

 

Such a request may be madesent to Kenneth Bosket,the CFO, at 11226 Pentland Downs Street, Las Vegas, NV 89141 or at his email address ken@crownequityholdings.com. The Registrant’s web page id www.crownequityholdings.comis crownequityholdings.com and the reports may also be found on the SEC website at www.sec.gov.

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCK MATTERS

 

There were 11,766,76613,385,047 shares of the Company’Company' common stock issued and outstanding on December 31, 2019.June 30, 2023. There are 20,000,10020,001,000 shares of preferred stock, par value $.001, of which 1,000 are designated as Series A. The 1,000 Series A preferred shares are outstanding at December 31, 2019.on June 30, 2023. No other Preferred Shares are outstanding at December 31, 2019.authorized with none outstanding.on June 30, 2023. The following tabulates holdings of shares of the Company by each person who, subject to the above, at the date of this Report, holds or record or is known by Management to own beneficially more than five percent (5%) of the Common Shares of the Company and, in addition, by all directors and officers of the Company individually and as a group.

 

Preferred Stock

 

Names and Addresses

 

Number of Preferred Shares Owned Beneficially

 

 

Percent of Preferred Beneficially Owned Shares

 

 

 

 

 

 

 

 

Mike Zaman (1)

 

 

1,000

 

 

 

100%

11226 Pentland Downs Street

 

 

 

 

 

 

 

 

Las Vegas, NV 89141

 

 

 

 

 

 

 

 

_______________

(1)

Denotes Officer and/or Director

28

Table of Contents

 

Common Stock

Names and Addresses

 

Number of Shares Owned Beneficially

 

 

Percent of Beneficially Owned Shares

 

 

 

 

 

 

 

 

Montse Zaman (1)

 

 

10,012,057

 

 

 

85.08%

11226 Pentland Downs Street

 

 

 

 

 

 

 

 

Las Vegas, NV 89141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ken Bosket (1)

 

 

21,022

 

 

 

0%

1453 Flintrock Road

 

 

 

 

 

 

 

 

Henderson, Nevada 89014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman (1)

 

 

7,476

 

 

 

0%

11226 Pentland Downs Street

 

 

 

 

 

 

 

 

Las Vegas, NV 89141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vinoth Sambandam (1)

 

 

394,762

 

 

 

0%

L41A Bharathy Thasan Colony

 

 

 

 

 

 

 

 

KK Nagar, Chennai, 600 078 India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All directors and officers as a group

 

 

10,435,317

 

 

 

88.6%

Names and Addresses

 

Number of Shares Owned Beneficially

 

 

Percent of Beneficially Owned Shares

 

 

 

 

 

 

 

 

Montse Zaman (1)

 

 

16,532

 

 

 

0.12%

11226 Pentland Downs Street

 

 

 

 

 

 

 

 

Las Vegas, Nevada 89141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamie Hadfield (1)

 

 

400,000

 

 

 

2.99%

1610 W 100 N 82

 

 

 

 

 

 

 

 

St. George, Utah 84770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mohammad Sadrolashrafi (1)

 

 

60,124

 

 

 

0.45%

1160 S Nevada Street

 

 

 

 

 

 

 

 

Carson City, Nevada 89703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shahram Khial (1)

 

 

22,719

 

 

 

0.14%

15030 Ventura Blvd Ste. 771

 

 

 

 

 

 

 

 

Sherman Oaks, California 91403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kenneth Cornell Bosket (1)

 

 

21,022

 

 

 

0.16%

1453 Flintrock Road

 

 

 

 

 

 

 

 

Henderson, Nevada 89014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman (1)

 

 

10,020,557

 

 

 

74.85%

11226 Pentland Downs Street

 

 

 

 

 

 

 

 

Las Vegas, Nevada 89141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All directors and officers as a group

 

 

10,535,99,

 

 

 

78.7%

_______________

(1)

Denotes officer or director.

34

(1)

Denotes officer or director.

Table of Contents

 

Change in Control. There are no arrangements known to the Company, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change of control of the Company.

 

DESCRIPTION OF SECURITIES TO BE REGISTERED

 

Common stock

 

We areThe Company is offering for sale common stock with four common stock warrants for each common share purchased in our companya maximum of 10,000,000 Units at a price of $5.00 per share.Unit.  Each unit comprises of one share of common stock and four warrants to purchase one share of common stock with each warrant having a specified exercisable price. The total amountnumber of shares registered will be 50,000,000 common shares being comprised of 10,000,000 common shares and 40,000,000 common shares underlying the warrants. We are offering a minimum of 1,000 units and a maximum of 10,000,000 units with 40,000,000 warrants. units.

Authorized Capital.Capital: The total number of shares of all classes of capital stock which the corporation shall have the authority to issue is 470,001,000470,000,000 shares, consisting of (i) four hundred fifty million (450,000,000) shares of Common Stock, par value $.001 per share (“Common Stock”), and (ii) 20,000,00020,001,000 shares of Preferred Stock, par value $.001 per share (“Preferred Stock”), of which one thousand (1,000) shares shall be designated as Series A Preferred Stock, par value $.001 per share. At SeptemberAs of June 30, 2020,2023, the Company had 12,898,75313,385,407 shares of Common Stock outstanding and 1,000 shares of Series A Preferred Stock outstanding. See the section titled “CAPITALIZATION” for a more detailed description of the common and preferred shares.

 

29

Table of Contents

PLAN OF DISTRIBUTION

 

The offering will be sold by the Company’s Officers and Directors.

 

This is a self-underwritten offering. This Prospectus permits our officers and directors to sell the Sharesshares directly to the public, with no commission or other remuneration payable to them for any Sharesshares they sell. There are no plans or arrangements to enter into any contracts or agreements to sell the Sharesshares with a broker or dealer. After the effective date of this prospectus, the officers and directors, intend to advertise through personal contacts, telephone, and hold investment meetings. We do not intend to use any mass-advertisingmass advertising methods such as the Internetinternet or print media. Our officers and directors will also distribute the prospectus to potential investors, at meetings, to their business associates and to their friends and relatives who are interested in the Company as a possible investment. In offering the securities on our behalf, our officers and directors will rely on the safe harbor from broker dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934.

 

35

Table of Contents

Our officers and directors will not register as a broker-dealer pursuant to Section 15 of the Securities Exchange Act of 1934, in reliance upon Rule 3a4-1, which sets forth the conditions under which a person associated with an Issuer,issuer, may participate in the offering of the Issuer'sissuer's securities and not be deemed to be a broker-dealer. Furthermore:

 

a. None of our officers and directors are subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Act, at the time of their participation;

 

b. None of our officers and directors will be compensated in connection with their participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities;

 

c. None of our officers and directors are, nor will he be at the time of his participation in the offering, an associated person of a broker-dealer; and,

 

d. All of our officers and directors meet the conditions of paragraph (a)(4)(ii) of Rule 3a4-1 of the Exchange Act, in that they (A) primarily performs, or is intended primarily to perform at the end of the offering, substantial duties for or on behalf of our company,Company, other than in connection with transactions in securities; and (B) are not a broker or dealer, or been associated person of a broker or dealer, within the preceding twelve months; and (C) have not participated in selling and offering securities for any Issuer more than once every twelve months other than in reliance on Paragraphs (a)(4)(i) (a) (4) (iii).

 

Our officers, directors, control persons and affiliates of same will not purchase any sharesUnits in this offering.

 

Terms of the Offering

 

The Company is offering a maximum of 10,000,000 units. Each Unit consists of one common sharesshare and four warrants at a fixed price of $5.00 per unit.Unit. The price of $5.00 per unit is fixed for the duration of the offering.offer. The shares are intended to be sold directly through the efforts of our officers and directors. No commission or other compensation related to the sale of the shares will be paid to our officers and directors. Our officers and directors intend to place the offering through personal contacts, telephone, and hold investment meetings. We do not intend to use any mass-advertisingmass advertising methods such as the Internetinternet or print media. Our officers and directors will also distribute the prospectus to potential investors at meetings, to their business associates and to their friends and relatives who are interested in the Company as a possible investment. The offering will terminate when the sale of all 10,000,000 units is completed, or when the board determines it is in the best interest of the Company to close the offering at any time. The subscription proceeds from the sale of the shares in this offering will be payable to Crown Equity Holdings, Inc. and will be deposited and held in a separatean account by the company but it is not a formal escrow or trust account therefore such funds may be available to creditors of the Company.

 

The officers and directors of the issuer and any affiliated parties thereof will not participate in this offering.

 

30

Table of Contents

There can be no assurance that all, or any, of the shares will be sold. As of the date of this Prospectus,prospectus, the Company has not entered into any agreements or arrangements for the sale of the shares with any broker/dealer or sales agent. However, if the Company were to enter into such arrangements, the Company will file a post-effective amendment to disclose those arrangements because any broker/dealer participating in the offering would be acting as an underwriter and would have to be so named in the Prospectus.

 

Procedures and Requirements for Subscription

 

Prior to the effectiveness of the Registration Statement, the Issuerissuer has not provided potential purchasers of the securities being registered herein with a copy of this prospectus. Investors can purchase common stock in this offering by completing a Subscription Agreement (attached hereto as Exhibit 99.1)4.1) and sending it together with payment in full to the Company.

 

All payments are required in the form of United States currency either by personal check, bank draft, bank wire, or by cashier’s check. There is a minimum of 1,000 sharesUnits required to be purchased by any individual investor. The Company reserves the right to either accept or reject any subscription. Any subscription rejected will be returned to the subscriber within five business days of the rejection date. Furthermore, once a subscription agreement is accepted, it will be executed without reconfirmation to or from the subscriber. Once the Company accepts a subscription, the subscriber cannot withdraw it.

 

36

Table of Contents

How to Invest:

 

Subscriptions for purchase of sharesUnits offered by this prospectus can be made by completing, signing and delivering to us, the following:

 

1) an executed copy of the Subscription Agreement, available from the company;Company; and

2) a check payable to the order of Crown Equity Holdings, Inc. in the amount of $5.00 for each shareUnit you want to purchase.

 

Pink Open Market Considerations

 

We trade on the Pink Open Market, which is separate and distinct from the NASDAQ stock market and other stock exchanges. NASDAQ has no business relationship with issuers of securities quoted on the Pink Open Market. The SEC’s order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the Pink Open Market.

 

Although, the NASDAQ stock market has rigorous listing standards to ensure the high quality of its issuers, and can delist issuers for not meeting those standards, the Pink Open Market has no listing standards. Rather, it is the market maker who chooses to quote a security on the system, files the application, and is obligated to comply with keeping information about the issuer in its files. FINRA cannot deny an application by a market maker to quote the stock of a company. The only requirement for inclusion in the Pink Open Market is that the issuer be current in its reporting requirements with the SEC.

 

Investors must contact a broker-dealer to trade Pink Open Market securities. Investors do not have direct access to the Markets service. For Markets securities, there only has to be one market maker. Markets transactions are conducted almost entirely manually. Because there are no automated systems for negotiating trades on the Markets, they are conducted via telephone. In times of heavy market volume, the limitations of this process may result in a significant increase in the time it takes to execute investor orders. Therefore, when investors place market orders — an order to buy or sell a specific number of shares at the current market price — it is possible for the price of a stock to go up or down significantly during the lapse of time between placing a market order and getting execution.

 

Because Pink Open Market board stocks are usually not followed by analysts, there may be lower trading volume than for NASDAQ-listed securities.

 

Selling Shareholders

The selling stockholders may also sell shares under Rule 144 or other applicable exemptions under the Securities Act, if available, rather than under this prospectus. The selling stockholders have the sole and absolute discretion not to accept any purchase offer or make any sale of shares if they deem the purchase price to be unsatisfactory at any particular time.

The selling stockholders or their pledgees, donees, transferees or other successors in interest, may also sell the shares directly to market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling stockholder and/or the purchasers of shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary commissions. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk. It is possible that a selling stockholder will attempt to sell shares of common stock in block transactions to market makers or other purchasers at a price per share which may be below the then market price. The selling stockholders cannot assure that all or any of the shares offered in this prospectus will be sold by the selling stockholders. The selling stockholders and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in this prospectus, may be deemed to be “underwriters” as that term is defined under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or the rules and regulations under such acts. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

37

Table of Contents

LEGAL PROCEEDINGS

 

The Company is not involved in any legal proceedings.

 

31

Table of Contents

LEGAL MATTERS

The validity of the securities offered by us in this offering will be passed upon for us by Arnold F. Sock, Esquire, Los Angeles, California. Mr. Sock owns warrants to purchase, in aggregate, less than one percent of the outstanding shares of our common stock.

INTERESTS OF NAMED EXPERTS AND COUNSEL

 

The financial statements as of December 31, 2018 and 20192022 of the Company that is included in this prospectus have beenwere audited by M&K CPA’s PLLC, independent certified public accountants, as set forth in their report. The financial statements as of SeptemberJune 30, 20202023 of the Company included in this prospectus have been reviewed by M&K CPA’s PLLC, independent certified public accountants.accountants as well. The financial statements have been included in reliance upon the authority of them as experts in accounting and auditing.

 

Our attorney has passed upon the legality of the common stock issued before this offering and passed upon the common stock offered for sale in this offering. Our attorney is Arnold F. Sock, Esquire, Box 25847, Los Angeles, California 90025.

 

The experts named in this registration statement were not hired on a contingent basis and have no direct or indirect interest in our Company.

 

TRANSFER AGENT

 

The transfer agent of the Company is Signature Stock Transfer, Inc., 14673 Midway16801 Addison Road, Suite #220, Addision,#247, Addison, Texas 75001

 

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 companyCompany does not have an audit committee. These material weaknesses are due to the company’sCompany’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 firstsecond quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
3832

Table of Contents
Table of Contents

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act that registers the shares of our common stock to be sold in this offering. This prospectus does not contain all the information contained in the registration statement and the exhibits and schedules filed as part of the registration statement. For further information with respect to us and our common stock, we refer you to the registration statement and the exhibits and schedules filed as part of the registration statement. Statements contained in this prospectus as to the contents of any contract or any other documents are not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, we refer you to the copies of the contract or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit.

 

You may read and copy all materials that we file with the SEC, including the registration statement and its exhibits and schedules, on the website maintained by the SEC. The address of that website is http://www.sec.gov. Information contained on any website referenced in this prospectus does not and will not constitute a part of this prospectus or the registration statement on Form S-1 of which this prospectus is a part.

 

In addition, upon the closing of this offering, we will be subject to the information reporting requirements of the Exchange Act, and we will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection and copying at the public reference room and the website of the SEC referred to above. We also maintain a website at www.crownequityholdings.com,crownequityholdings.com, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information contained in or that can be accessed through our website is not a part of, and is not incorporated into this prospectus. Additionally, you may request a copy of any of our filings with the SEC at no cost, by writing or telephoning us at the following address:

 

Crown Equity Holdings, Inc.

11226 Pentland Downs Street

Las Vegas, Nevada 89141

(702) 683-8946

 

You should rely only on the information contained in this prospectus or to which we have referred you. We have not authorized any person to provide you with different information or to make any representation not contained in this prospectus.

 

 
3933

Table of Contents
Table of Contents

Crown Equity Holdings, Inc.

 

Crown Equity Holdings, Inc.

Index to Financial StatementsINDEX TO FINANCIAL STATEMENTS

 

Page

Audited Financial Statements for YearsYear Ended December 31, 2019 and 2018:2022:

 

 

 

Report of Independent Registered Public Accounting Firm (ID: 2738)

 

F-2

Consolidated Balance Sheets as of December 31, 2022 and 2021

F-3

Consolidated Statements of Operations for the Years Ended December 31, 2022 and 2021

F-4

Consolidated Statements of Changes in Stockholders' Deficit for the Years Ended December 31, 2022 and 2021

F-5

Consolidated Statements of Cash Flows for the Years Ended December 31, 2022 and 2021

F-6

Notes to the Consolidated Financial Statements

F-7

 

 

 

 

 

Balance Sheets

F-3

Unaudited Financial Statements of Operations

F-4

Statement of Stockholders’ Deficit

F-5

Statements of Cash Flows

F-6

for June 30, 2023:

 

 

 

Notes to Financial Statements

F-7

Unaudited Financial Statements for the Nine Months Ended SeptemberCondensed Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2020 and 2019:

Balance Sheets

F-19

Statements of Operations

F-20

Statement of Stockholders’ Deficit

F-21

Statements of Cash Flows

F-23

Notes to Financial Statements2022 (Audited)

 

F-24

 

Condensed Consolidated Statements of Operations for the Three Month Ended June 30, 2023 and 2022 (Unaudited)

F-25

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three Months Ended June 31, 2023 and 2022 (Unaudited)

F-26

Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2023 and 2022 (Unaudited)

F-27

Notes to Condensed Consolidated Financial Statements (Unaudited)

F-28

 

 
F-1

Table of Contents

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and

Stockholders of Crown Equity Holdings, Inc.

 

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Crown Equity Holdings, Inc. (the Company) as of December 31, 20192022 and 2018,2021 and the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended December 31, 2019,2022, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2019,2022, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

The accompanying consolidated financial states have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

  

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

The accompanyingcritical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements have been prepared assuming that were communicated or required to be communicated to the Company will continueaudit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a going concern. whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Going concern

Critical Audit Matter Description

As discussed in Note 2 to the consolidated financial statements, the Company sufferedhad a net lossgoing concern due to a working capital deficiency, negative cash flows from operations and has a net capital deficiency, which raises substantial doubt about its ability to continuelimited business operations as of December 31, 2022. Auditing management’s evaluation of a going concern. Management’sconcern can be a significant judgment given the fact that the Company uses management estimates on future revenues and expenses which are not able to be substantiated.

How the Critical Audit Matter was Addressed in the Audit

To evaluate the appropriateness of the going concern, we examined and evaluated the financial information that was the initial cause along with management’s plans regarding those matters are also described in Note 2. The financial statements do not include any adjustments that might result fromto mitigate the outcome of this uncertainty.going concern and management’s disclosure on going concern.

 

/s/M&K CPAS, PLLC

 

We have served as the Company’s auditor since 2018.

 

Houston, Texas

 

May 29, 2020 March 31, 2023

 

 
F-2
F-2

Table of Contents
Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONSOLIDATEDBALANCE SHEETS

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

Assets 

Current assets

 

 

 

 

 

 

Cash

 

$997

 

 

$13,294

 

Total Current Assets

 

 

997

 

 

 

13,294

 

 

 

 

 

 

 

 

 

 

Property and Equipment, net

 

 

28,882

 

 

 

50,565

 

Total Assets

 

$29,879

 

 

$63,859

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Deficit

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$210,223

 

 

$207,125

 

Accounts payable and accrued expenses to related party

 

 

80,664

 

 

 

61,156

 

Deferred revenue related party

 

 

-

 

 

 

50,000

 

Convertible notes payable to related parties, net of debt discount

 

 

760

 

 

 

13,040

 

Convertible notes payable, net of debt discount

 

 

-

 

 

 

8,498

 

Current portion of long-term debt

 

 

30,681

 

 

 

10,403

 

Total Current Liabilities

 

$322,328

 

 

$350,222

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Long-term debt

 

$25,976

 

 

$42,879

 

Total Liabilities

 

$348,304

 

 

$393,101

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit

 

 

 

 

 

 

 

 

Preferred Stock, 20,000,000 shares authorized, authorized at $.001 par value, none issued or outstanding

 

 

-

 

 

 

-

 

Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding at December 31, 2019 and 2018

 

 

1

 

 

 

1

 

Common Stock, 450,000,000 authorized at $0.001 par value; 11,766,766 and 11,823,389 shares issued and outstanding at December 31, 2019 and 2018

 

 

11,766

 

 

 

11,823

 

Stock Payable

 

 

43,764

 

 

 

18,756

 

Additional paid-in capital

 

 

11,418,103

 

 

 

11,279,211

 

Accumulated deficit

 

 

(11,792,059)

 

 

(11,639,033)

Total stockholders’ deficit

 

 

(318,425)

 

 

(329,242)

Total liabilities and stockholders’ deficit

 

$29,879

 

 

$63,859

 

 

 

December 31,

2022

 

 

December 31,

2021

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$2,930

 

 

$4,320

 

Investments in trading securities

 

 

-

 

 

 

588,945

 

Total Current Assets

 

 

2,930

 

 

 

593,265

 

Property and Equipment, net

 

 

2,507

 

 

 

10,020

 

Total Assets

 

$5,437

 

 

$603,285

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$145,630

 

 

$139,979

 

Accounts payable and accrued expenses to related party

 

 

1,208,740

 

 

 

830,790

 

Margin loan – Brokerage account

 

 

-

 

 

 

263,151

 

Notes payable to related parties

 

 

9,500

 

 

 

3,912

 

Convertible notes payable to related parties, net of debt discount

 

 

19,028

 

 

 

18,428

 

Current portion of long-term debt

 

 

2,870

 

 

 

18,169

 

Total Liabilities

 

 

1,385,768

 

 

 

1,274,429

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Long-term debt

 

 

-

 

 

 

2,414

 

Total Liabilities

 

 

1,385,768

 

 

 

1,276,843

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Preferred Stock, 20,001,000 shares authorized, authorized at $0.001 par value, none issued or outstanding

 

 

-

 

 

 

-

 

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

 

 

1

 

 

 

1

 

Common Stock, 450,000,000 authorized at $0.001 par value; and 13,385,047 and 13,318,642 shares issued and outstanding at December 31, 2022 and 2021

 

 

13,384

 

 

 

13,318

 

Additional paid-in capital

 

 

12,763,126

 

 

 

12,729,990

 

Accumulated deficit

 

 

(14,156,842)

 

 

(13,416,867)

Total stockholders' deficit

 

 

(1,380,331)

 

 

(673,558)

Total liabilities and stockholders' deficit

 

$(5,437)

 

$603,285

 

 

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

 

 
F-3
F-3

Table of Contents
Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONSOLIDATEDSTATEMENTS OF OPERATIONS

 

 

 

For the Years Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Revenues

 

$

3,793

 

 

$

3,352

 

Revenues – Related Party

 

 

50,000

 

 

 

7,100

 

Total Revenues

 

 

53,793

 

 

 

10,452

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

General and administrative expense

 

 

115,695

 

 

 

313,477

 

Depreciation

 

 

31,668

 

 

 

28,895

 

Total Operating Expenses

 

 

147,363

 

 

 

342,372

 

 

 

 

 

 

 

 

 

 

(Loss) from operations

 

 

(93,570

)

 

 

(331,920

)

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

(21,885

)

 

 

(17,996

)

Gain on extinguishment of debt

 

 

1,349

 

 

 

-

 

Debt Discount Amortization

 

 

(38,920

)

 

 

(24,904

)

Total Other Expense

 

 

(59,456

)

 

 

(42,900

)

 

 

 

 

 

 

 

 

 

Net (loss)

 

$

(153,026

)

 

$

(374,820

)

 

 

 

 

 

 

 

 

 

Basic and Diluted income (loss) per share

 

 

 

 

 

 

 

 

Basic and diluted income per share

 

$

(0.01

)

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding basic and diluted

 

 

11,936,422

 

 

 

11,583,371

 

 

 

For the Years Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Revenue

 

$785

 

 

$4,177

 

Revenue – related party

 

 

2,150

 

 

 

11,483

 

Total Revenue

 

 

2,935

 

 

 

15,660

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Depreciation

 

 

7,513

 

 

 

5,485

 

General and Administrative

 

 

473,999

 

 

 

507,958

 

Total Operating Expenses

 

 

481,512

 

 

 

513,443

 

Net Operating Income (Loss)

 

 

(478,577)

 

 

(497,783)

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,213)

 

 

(5,466)

Gain on Forgiveness of Debt

 

 

-

 

 

 

4,101

 

Debt Discount Amortization

 

 

-

 

 

 

(14,805)

Gain (Loss) on Stocks Held

 

 

(252,568)

 

 

65,168

 

Other Income (Expense)

 

 

(4,617)

 

 

(2,008)

Total other expense

 

 

(261,398)

 

 

46,990

 

Net (loss)

 

$(739,975)

 

$(450,793)

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.06)

 

$(0.03)

Weighted average number of common shares outstanding - basic and diluted

 

 

13,346,912

 

 

 

12,989,835

 

 

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

 

 
F-4
F-4

Table of Contents
Table of Contents

     

CROWN EQUITY HOLDINGS, INC.

CONSOLIDATEDSTATEMENTS OF CHANGES IN STOCKHOLDERS’STOCKHOLDERS' DEFICIT

FOR THE YEARS ENDED DECEMBER 31, 20192022 AND 20182021

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances, December 31, 2017

 

 

1,000

 

 

$1

 

 

 

11,461,137

 

 

$11,461

 

 

$-

 

 

$11,029,958

 

 

$(11,264,213)

 

$(222,793)

Common stock issued for services

 

 

-

 

 

 

-

 

 

 

316,252

 

 

 

316

 

 

 

-

 

 

 

171,449

 

 

 

-

 

 

 

171,765

 

Common stock issued for cash

 

 

-

 

 

 

-

 

 

 

46,000

 

 

 

46

 

 

 

-

 

 

 

22,954

 

 

 

-

 

 

 

23,000

 

Common stock issued for settlement of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

18,756

 

 

 

 

 

 

 

-

 

 

 

18,756

 

Debt discount due to beneficial conversion feature

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

54,850

 

 

 

-

 

 

 

54,850

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(374,820)

 

 

(374,820)

Balances at December 31, 2018

 

 

1,000

 

 

$1

 

 

 

11,823,389

 

 

$11,823

 

 

 

18,756

 

 

$11,279,211

 

 

$(11,639,033)

 

$(329,242)

Common stock issued for services

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,698

 

 

 

-

 

 

 

7,698

 

Common stock issued for cash

 

 

-

 

 

 

-

 

 

 

130,000

 

 

 

130

 

 

 

-

 

 

 

64,870

 

 

 

-

 

 

 

65,000

 

Common Stock Subscribed for services

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

25,008

 

 

 

-

 

 

 

-

 

 

 

25,008

 

Common stock issued for settlement of debt

 

 

-

 

 

 

-

 

 

 

17,062

 

 

 

17

 

 

 

-

 

 

 

8,514

 

 

 

-

 

 

 

8,531

 

Common stock issued for settlement of debt – Related Parties

 

 

-

 

 

 

-

 

 

 

96,315

 

 

 

96

 

 

 

-

 

 

 

40,228

 

 

 

-

 

 

 

48,324

 

Forgiveness of interest from CEO

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,282

 

 

 

-

 

 

 

9,282

 

Shares for services returned

 

 

-

 

 

 

-

 

 

 

(300,000)

 

 

(300)

 

 

-

 

 

 

300

 

 

 

-

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

(153,026)

 

 

(153,026)

Balances at December 31, 2019

 

 

1,000

 

 

$1

 

 

 

11,766,766

 

 

$11,766

 

 

$43,764

 

 

$11,418,103

 

 

$(11,792,059)

 

$(318,425)

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

F-5

Table of Contents

CROWN EQUITY HOLDINGS, INC.

STATEMENTS OF CASH FLOWS

 

 

For the Years Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss)

 

$(153,026)

 

$(374,820)

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

 

 

 

 

 

 

 

 

Gain on conversions

 

 

(1,349)

 

 

 

 

Depreciation expense

 

 

31,668

 

 

 

28,895

 

Common stock issued for services

 

 

32,706

 

 

 

190,521

 

Loss on settlement of debt

 

 

-

 

 

 

-

 

Amortization of beneficial conversion features

 

 

38,920

 

 

 

24,904

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

4,445

 

 

 

4,063

 

Accounts payable – related party

 

 

28,961

 

 

 

23,567

 

Deferred revenue – related party

 

 

(50,000)

 

 

50,000

 

Net cash (used in) operating activities

 

 

(67,675)

 

 

(52,870)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from convertible notes payable

 

 

-

 

 

 

3,000

 

Proceeds from sale of stock

 

 

65,000

 

 

 

23,000

 

Payments on convertible notes payable - related party

 

 

(3,011)

 

 

(8,784)

Proceeds from convertible notes payable - related party

 

 

-

 

 

 

51,850

 

Payments on notes payable

 

 

(6,611)

 

 

(4,764)

Net cash provided by financing activities

 

 

55,378

 

 

 

64,302

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

(12,297)

 

 

11,432

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

13,294

 

 

 

1,862

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$997

 

 

$13,294

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Common stock issued for settlement of debt and interest – Related Party

 

$48,154

 

 

$-

 

Common stock issued for debt and interest conversion

 

$8,531

 

 

$-

 

Contributed Capital/Forgiveness of CEO interest

 

$9,282

 

 

$-

 

Debt issued for fixed assets

 

$9,985

 

 

$-

 

Shares for services returned

 

$300

 

 

$-

 

Debt discount resulting from convertible notes

 

$-

 

 

$54,850

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2020

 

 

1,000

 

 

$1

 

 

 

12,901,753

 

 

$12,902

 

 

$3,000

 

 

$12,506,375

 

 

$(12,966,074)

 

$(443,796)

Common Stock Issued for Cash, related party

 

 

-

 

 

 

-

 

 

 

400,000

 

 

$400

 

 

$-

 

 

$199,600

 

 

$-

 

 

$200,000

 

Common stock issued for settlement of AP- related parties

 

 

-

 

 

 

-

 

 

 

11,504

 

 

$11

 

 

$-

 

 

$17,245

 

 

$-

 

 

$17,256

 

Common Stock Issued for services

 

 

-

 

 

 

-

 

 

 

5,385

 

 

$5

 

 

$(3,000)

 

$6,745

 

 

$-

 

 

$3,750

 

Warrant Subscription

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$25

 

 

$-

 

 

$25

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(450,793)

 

 

(450,793)

Balances at December 31, 2021

 

 

1,000

 

 

$1

 

 

 

13,318,642

 

 

$13,318

 

 

$-

 

 

$12,729,990

 

 

$(13,416,867)

 

$(673,558)

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

48,000

 

 

 

48

 

 

 

-

 

 

 

23,952

 

 

 

-

 

 

 

24,000

 

Common Stock issued for Note Payable Conversion –related parties

 

 

-

 

 

 

-

 

 

 

18,405

 

 

 

18

 

 

 

-

 

 

 

9,184

 

 

 

-

 

 

 

9,202

 

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(739,975)

 

 

(739,975)

Balances at December 31, 2022

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

 

-

 

 

$12,763,126

 

 

$(14,156,842)

 

$(1,380,331)

 

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

 

 
F-6F-5

Table of Contents
Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONSOLIDATEDSTATEMENTS OF CASH FLOWS

 

 

 

For the Years Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss)

 

$(739,975)

 

$(450,793)

Forgiveness of EIDL Advance

 

 

-

 

 

 

(4,101)

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

 

 

-

 

 

 

-

 

Depreciation

 

 

7,513

 

 

 

5,485

 

Loss (gain) on brokerage account

 

 

252,568

 

 

 

(65,168)

Loss on investment

 

 

4,616

 

 

 

2,008

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

14,805

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Cash transfer

 

 

-

 

 

 

117,953

 

Deferred revenue

 

 

-

 

 

 

(11,333)

Accounts payable and accrued expenses – related party

 

 

377,950

 

 

 

386,544

 

Accounts payable and accrued expenses

 

 

7,962

 

 

 

19,543

 

Net cash (used in) and provided by operating activities

 

 

(89,366)

 

 

18,693

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Cash (paid to) withdrawn from brokerage account

 

 

67,000

 

 

 

(200,000)

Net cash provided by and (used in) investing activities

 

 

67,000

 

 

 

(200,000)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Borrowings from convertible notes payable, related party

 

 

-

 

 

 

19,407

 

Payments on convertible notes payable – related party

 

 

(11,812)

 

 

(21,292)

Principal payments on debt

 

 

(17,712)

 

 

(24,893)

Borrowings from notes payable, related party

 

 

26,500

 

 

 

9,333

 

Warrant Subscriptions

 

 

-

 

 

 

25

 

Shares subscribed for cash

 

 

24,000

 

 

 

200,000

 

Net cash provided by financing activities

 

 

20,976

 

 

 

182,580

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

(1,390)

 

 

1,273

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

4,320

 

 

 

3,047

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$2,930

 

 

$4,320

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

Interest paid

 

$3,360

 

 

$5,466

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

RP-NP debt conversion

 

$9,201

 

 

 

 

 

RP-AP Converted into common stock

 

$-

 

 

 

17,256

 

Shares issued for stock payable

 

$-

 

 

$6,750

 

Repayments of margin loan from brokerage account

 

$263,151

 

 

$-

 

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

F-6

Table of Contents

CROWN EQUITY HOLDINGS, INC.

NOTES TO 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.

 

In 2010, the Company formed two subsidiaries Crown Tele Services, Inc. and CRWE Direct, Inc. Crown Tele Services Inc. will provide voice over IP messaging at a competitive price to other competitors and CRWE Direct will provide its client with direct sales of products. This entity was divested at the end of 2017.

 

In 2011, the Company formed a wholly owned subsidiary CRWE Real Estate Inc. CRWE Real Estate Inc. will hold real estate. CRWE Real Estate Inc., Crown Tele Services, Inc. and CRWE Direct, Inc. were sold in December of 2016 for aggregate consideration of $100, resulting in a gain of $5,967.

 

In 2016, the company sale of the subsidiaries is not considered to be a strategic shift since there were minimal activities during the year in the subsidiaries.

 

Assets

 

 

-

 

Intercompany

 

 

-

 

Total Assets sold

 

 

-

Cash

100

Payable assumed by buyer

5,867

Total Consideration

5,967

 

 

 

 

 

 

Cash

100

Payable assumed by buyer

5,867

Total ConsiderationGain on sale of subsidiaries

 

 

5,967

 

Gain on sale of subsidiaries

5,967

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

 

Basis of Preparation

 

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

 

F-7

Table of Contents

Reclassifications

 

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

 

F-7

Table of Contents

AdoptionIn 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 New Accounting Standard

Crown Equitymore 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 Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the startprovisions on January 1, 2019, including interim periods subsequent to the date of the first quarter of 2018 using theadoption. Entities are required to use a modified retrospective approach upon adoption to recognize and recorded a cumulativemeasure 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 adjustment to retained earnings based 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 termsUS GAAP because the measurement generally will occur earlier and conditionswill be fixed at the grant date. This update is effective for open contracts as ofannual 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, 2018. The2019 and found the adoption of the standard did not have a material effect on our financial statements.

Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on the Company’s Financial Statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.their financial position, results of operations or cash flows.

 

Accounting Standards Not Yet Adopted

 

In June 2016, the FASB issued ASU 2016-3, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instructions (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-3 is effective for us in our first quarter of fiscal 2023, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our financial statements.

In August 2020, the FASB issued ASU 2020-6, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-6”), which simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. Upon adoption, a convertible debt instrument will be accounted for as a single liability at amortized cost unless (a) the convertible instrument contains features that require bifurcation as a derivative under ASC 815, Derivatives and Hedging, or (b) the convertible debt instrument was issued at a substantial premium. These changes will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was bifurcated according to previously existing rules. ASU 2020-6 also requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The new guidance is effective for public entities excluding smaller reporting companies in fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The company adopted early ASU 2020-6 on January 1, 2022.

F-8

Table of Contents

 

Use of Estimates

 

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

 

Cash and Cash Equivalents

 

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

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASU 2018-07 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’scompany'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 oral, written,contained within the body of an invoice or implied. A writtenin an email. No work is commenced without an understanding between the Company and signed invoice stating the terms and conditions is the Company’ preferred method. The terms ofour client that a writtenvalid 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.

 

F-8

Table of Contents

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.

 

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.

 

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.

 

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 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 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 outcome or effectivenesscampaign.

F-9

Table of the campaign.

Contents

 

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.

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

Third Party

 

 

Related Party

 

 

Total

 

 

Third Party

 

 

Related Party

 

 

 Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Services on Company Server

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7,000

 

 

$

7,000

 

Click Based and Impressions Ads

 

$

2,743

 

 

$

50,000

 

 

$

52,743

 

 

$

2,885

 

 

$

-

 

 

$

2,885

 

Domain Registrations

 

$

10

 

 

$

-

 

 

$

10

 

 

$

67

 

 

$

-

 

 

$

67

 

Publishing and Distribution

 

$

1,040

 

 

$

-

 

 

1,040

 

 

$

400

 

 

$

100

 

 

$

500

 

 

 

$

3,793

 

 

$

50,000

 

 

$

53,793

 

 

$

3,352

 

 

$

7,100

 

 

$

10,452

 

 

 

 December 31, 2022

 

 

 December 31, 2021

 

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$10,200

 

 

$10,200

 

Click Based and Impression Ads

 

$475

 

 

$-

 

 

$475

 

 

$517

 

 

$-

 

 

$517

 

Publishing and Distribution

 

$310

 

 

$150

 

 

$460

 

 

$3,660

 

 

$1,283

 

 

$4,943

 

Accounting

 

$-

 

 

$2,000

 

 

$2,000

 

 

$-

 

 

$-

 

 

$-

 

 

 

$785

 

 

$2,150

 

 

$2,935

 

 

$4,177

 

 

$11,483

 

 

$15,660

 

 

Revenue is based on providingRevenues are received through the Company’s server services, Managed Information Technology, 24/7 support, which includes designing, developing, testing, maintaining functionality, infrastructure monitoring, managingadvertising, click-based, and hosting, combined with revenue received from the display of click based and impressionsimpression ads located on the Company’s websites, domain name registration,as well as from the publishing and distributiondisseminating of news and press releases.

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Deferred Revenue

 

$-

 

 

$50,000

 

 

F-9

December 31,

December 31,

2022

2021

Table of Contents

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.

 

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 December 31, 20192022 and 2018. 2021.

Investments

The Company values its trading investments at market value based on the trading price at the balance sheet date. Any gains and losses are recorded in the period the gain or loss occurred. Investments include common stocks, exchange traded funds and money market mutual funds. Equity investments with readily determinable fair values are recorded as Trading Securities at Fair Value on the Balance Sheets. Changes in the fair value of such equity securities are reported in the Statements of Income.

F-10

Table of Contents

 

Risk Concentrations

 

As of December 31, 2019 , 98%2022, 68% of the Company’s revenues were received through advertisements, which 95%accounting services rendered, and 100% of the advertisementrendered accounting services revenue was received through a related party. 16% of the revenues received were from publishing and distribution services rendered by the Company, while 33% of the publishing and distribution revenue was received through a related party. The remaining 2%revenue of the remaining total revenues were16% was from third parties for the displaying of click basedclick-based and impressions ads located on the company’s websites, as well as for press releases and article publishing and distribution bywebsites.

During the Company.year ending period of 2022, 73% of its revenues originated from a single related party with 27% of the revenue coming from third parties.

 

In 2018, 68%During the year ending period of December 31, 2021, 65% of the Company’s revenues were received through advertisement services, and 100% of the advertisement revenue received from advertisement services was through a related party for Managed Information Technology services and 24/7 support which included designing, developing, testing, maintain functionality, infrastructure monitoring, managing, and hosting. 28%party. 32% of the third party revenues were from the Company’s publishing and distribution services, while 8% of the publishing and distribution services revenue was received through a related party. The remaining revenue of 3% was from the displaying of click basedclick-based and impressions ads located on the company’s websites. The Company does not hold cash in excess of federally insured limits. 

 

General and Administrative Expenses

 

Crown Equity’sEquity's general and administrative expenses consisted of the following types of expenses during 20192022 and 2018:2021. Compensation expense, payroll expense, rent, 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 20192022 or 2018.

F-10

Table of Contents

2021.

 

Basic and Diluted Net (Loss) per Share

 

 

 

 December 31,

 

 

 

2019

 

 

2018

 

Numerator:

 

 

 

 

 

 

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

 

$(153,026)

 

$(374,820)

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

 

$(153,026)

 

$(374,820)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

11,936,422

 

 

 

11,583,371

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.01)

 

$(0.03)

Diluted

 

$(0.01)

 

$(0.03)

 

 

December 31,

 

 

 

2022

 

 

2021

 

Numerator:

 

 

 

 

 

 

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

 

$(739,975)

 

$(450,793)

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

 

$(739,975)

 

$(450,793)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

13,346,912

 

 

 

12,989,835

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.06)

 

$(0.03)

Diluted

 

$(0.06)

 

$(0.03)

 

F-11

Table of Contents

 

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 years ended December 31, 20192022 and 2018. The number of potential anti-dilutive shares excluded from the calculation shares for the year ended December 31, 2019 is 1,520.2021.

 

Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal 2019 and 2020 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of December 31, 2022, and December 31, 2021, 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 December 31, 2022 and December 31, 2021:

 

 

Dec. 31,

2022

 

 

Dec. 31,

2021

 

Net operating loss

 

$908,653

 

 

$753,258

 

Valuation allowance

 

 

(908,653)

 

 

(753,258)

Net deferred tax asset

 

 

-

 

 

 

-

 

 

Uncertain tax position

 

The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of December 31, 20192022 and 2018.2021.

 

Fair Value of Financial Instruments

 

TheUnder Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)820, Fair Value Measurements and Disclosures, and ASC guidance825, Financial Instruments, the FASB establishes a framework for measuring fair value measurementsin generally accepted accounting principles and disclosure establishes aexpands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts of cash, prepaid expense and other current assets, accounts payable, accrued expenses and notes payable reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy that prioritizesbased on the level of independent, objective evidence surrounding the inputs to valuation techniques used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy givesprioritized the highest priorityinputs into three levels that may be used to unadjustedmeasure fair value.

F-12

Table of Contents

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:liabilities.

 

Level 1 Inputs – Quoted prices for identical instruments in active markets.

Level 2 Inputs – Quotedapplies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar instruments in active markets; quoted prices for identicalassets or similar instrumentsliabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.active.

 

Level 3 Inputs – Instruments with primarilyapplies to assets or liabilities for which there are unobservable value drivers. The Company has no Level 3 Inputs.

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

F-11

Table of Contents

Research and Development

The Company spent no money for research and development cost for the years ended December 31, 2019 and 2018.

Advertising Cost

The Company spent no money for advertisement for the years ended December 31, 2019 and 2018.

Depreciation expense was $31,668 and $28,895 for the years ended December 31, 2019 and 2018, respectively.

NOTE 2 – GOING CONCERN

As shown in the accompanying financial statements, Crown Equity an accumulated deficit of $11,792,059 since its inception and had a working capital deficit of $321,331 negative cash flows from operations and limited business operations as of December 31, 2019. These conditions raise substantial doubt as to Crown Equity’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

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

NOTE 3 – PROPERTY AND EQUIPMENT

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

Property consists of the following at December 31, 2019 and 2018:

 

 

December 31,

2019

 

 

December 31,

2018

 

Computers – 3 year estimated useful life

 

$96,669

 

 

$86,684

 

Less – Accumulated Depreciation

 

 

(67,787)

 

 

(36,119)

Property and Equipment, net

 

$28,882

 

 

$50,565

 

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $31,668, and $28,895 for the twelve months ended December 31, 2019 and 2018, respectively.

NOTE 4 – CAPITAL LEASES

During the period ending December 31, 2019, the Company paid an aggregate of $6,611 toward capital lease balances. During 2019 and 2018, the Company borrowed an aggregate $9,985 and $0 under the following third-party finance lease transactions:

A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with 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.

F-12

Table of Contents

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

Assets

 

December 31,

2019

 

Leased equipment under finance lease,

 

$96,669

 

less accumulated amortization

 

 

(67,787)

Net

 

$28,882

 

Liabilities

 

December 31,

2019

 

Obligations under finance lease (current)

 

$30,681

 

Obligations under finance lease (noncurrent)

 

 

25,976

 

Total

 

$56,657

 

Below is a reconciliation of leasesvaluation methodology that are significant to the financial statements.

 

 

Finance

Leases

 

Leased asset balance

 

$21,679

 

Liability balance

 

$56,657

 

Cash flow (operating)

 

$

 

Cash flow (financing)

 

$6,611

 

Interest expense

 

$11,794

 

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

Years ended December 31

Finance

Leases

2020

35,010

2021

15,726

2022

11,860

Thereafter

-

Total

62,596

Less: Imputed Interest

(5,939)

Total Liability

56,657

Other information related to leases is as follows:

Lease Type

Weighted Average Remaining

Term

Weighted

Average

Discount

Rate (1)

Finance Leases

2.03 years

16%

Based on average interest rate of 16%, average term remaining (months) 24.33 Average term remain (years) 2.03

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

F-13

Table of Contents

NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

During 2019, third party convertible note payables of $8,531and related interest of $1,349 were settled thru issuance of 17,062 common stock shares. The company recorded a $1,349 gain on the conversion.

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

The Company analyzed the below convertible notes for derivatives noting none. The Company evaluated these convertible notes for beneficial conversion features and concluded that the beneficial conversion features resulted in a debt discount in the amount of $0, as of December 31, 2019.

 

 

Original

 

Due

 

Interest

 

 

Conversion

 

 

Dec 31,

 

Name

 

Note Date

 

Date

 

Rate

 

 

Rate

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman

 

12/30/2015

 

12/30/2018

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman

 

04/12/2017

 

04/12/2018

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman

 

11/15/2017

 

11/15/2018

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman

 

11/27/2017

 

11/27/2018

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman

 

11/30/2017

 

11/30/2018

 

 

12%

 

$0.50

 

 

 

760

 

Mike Zaman

 

01/19/2018

 

01/19/2019

 

 

12%

 

$0.50

 

 

 

-

 

Montse Zaman

 

06/07/2018

 

06/07/2019

 

 

12%

 

$0.50

 

 

 

-

 

OCHC, LLC

 

08/21/2018

 

08/21/2019

 

 

12%

 

$0.50

 

 

 

-

 

OCHC, LLC

 

10/02/2018

 

10/02/2019

 

 

12%

 

$0.50

 

 

 

-

 

OCHC, LLC

 

10/24/2018

 

10/24/2019

 

 

12%

 

$0.50

 

 

 

-

 

OCHC, LLC

 

11/16/2018

 

11/16/2019

 

 

12%

 

$0.50

 

 

 

-

 

OCHC, LLC

 

12/04/2018

 

12/04/2019

 

 

12%

 

$0.50

 

 

 

-

 

Munti Consulting LLC

 

10/03/2018

 

10/03/2019

 

 

10%

 

$0.50

 

 

 

-

 

Munti Consulting LLC

 

12/19/2018

 

12/19/2019

 

 

10%

 

$0.50

 

 

 

-

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Convertible Notes Payable, net of Discount - Related Party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

760

 

Chris Knudsen

On March 25, 2019, the holder exercised their right to convert the principal and interest balance of three notes into Common Shares at a rate of $0.50 per share for total of 2,062 shares issued to holder. The accrued interest converted on the July 7, 2017 note for $631, August 23, 2017 note for $200 and the September 18, 2017 note for $200 note are $103, $37 and $65 respectively. The gain for interest converted was $205. As of December 31, 2019, all notes were paid.

Kevin Wiltz

On March 25, 2019, the holder exercised their right to convert the principal and interest balance of the note into Common Shares at a rate $0.50 per share for a total of 3,000 shares issued to holder. The accrued interest converted on the November 27, 2017 note for $1,500 was $238. The gain for interest converted was $238. As of December 31, 2019, the note was paid.

F-14

Table of Contents

Richard W. LeAndro

On March 25, 2019, the holder exercised their right to convert the principal and interest balance of two notes into Common Shares at a rate of $0.50 per share for a total of 12,000 shares issued to holder. The accrued interest converted on the December 5, 2017 note for $3,000 and January 4, 2018 note for $3,000 were $468 and $438 respectively. The gain on the interest converted was $906. As of December 31, 2019, both notes were paid.

OCHC, LLC

On August 21, 2018, October 2, 2018, October 24, 2018, November 16, 2018 and December 4, 2018, the Company entered into convertible promissory notes for with OCHC, LLC for loans in the amounts of $631 each of the mentioned dates for a total principal balance of $3,155.

On March 25, 2019, the holder exercised their right to convert the principal and interest balance of the five notes into Common Shares at a rate of $0.50 per share for a total of 6,315 shares issued to holder. The total accrued interest converted for the five notes were $163 and included in accrued expenses. As of December 31, 2019, all notes were paid.

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.

On April 29, 2019, the holder exercised their right to convert the aggregate principal balance of the two notes of $45,000 and accrued interest of $170 into Common Shares for a total of 90,000 shares issued to holder. The total accrued interest for the two notes were $2,741 with a remaining balance of $2,571 of accrued interest still owed.

Mike Zaman

As of January 1, 2019, the Company owed Mike Zaman a total of $3,478. During the period ending December 31, 2019, $2,718 of the notes were paid and $9,282 of accrued interest were forgiven by the holder. The remaining principal balance of $760 and remaining accrued interest of $3,503 were not converted as of December 31, 2019.

Montse Zaman

As of January 1, 2019, the Company owed Montse Zaman a total of $293 plus accrued interest of $87. During the period ending December 31, 2019, the principal balance of $293 was paid. The remaining accrued interest of $87 remained outstanding as of December 31, 2019.

During the period ending December 31, 2019, the Company had $2,242 current interest expense on notes payable and $7,849 of current interest expense on credit card debt.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

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

The Company agreed to pay the automobile lease of $395 a month, on a month to month basis and can be cancelled at any time. The Company reevaluates their obligation at the end of each quarter an determines if they will continue paying the lease on a month to month basis.

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.

F-15

Table of Contents

During the period ending December 31, 2019, the Company issued 96,315 shares Common stock for the settlement of $48,324 debt from related parties.

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 December 31, 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 December 31, 2019, the Company had a payable of $760 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 shares at a rate of $0.50 per share or receive cash. At the time of the issuance of payables, the conversion price was less than the trading price of the stock. The Company recorded 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 December 31, 2019, Mike Zaman has forgiven the Company $9,282 of interest owed in reference to his notes.

The Company is periodically advanced operating funds from related parties with convertible notes payable. During the nine months ended December 31, 2019, there were no convertible notes from related parties. The Company is also periodically advanced funds to cover account payables by direct payment of the account payables from related parties.

As of December 31, 2019, the Company had a payable of $18,756 to Vinot Sambandam, an officer of the Company for services performed.

As of December 31, 2019, and 2018, the outstanding balance of accounts payable to related parties was $80,664 and $61,156 respectively.

As of December 31, 2019, the outstanding balance of convertible notes payable to related parties was $760.

As of December 31, 2019, and 2018, the company had an expense of $4,343 and $8,160 respectively to Mike Zaman, a director and CEO of the Company for automobile lease agreements.

NOTE 8 – STOCKHOLDERS’ EQUITY

Common Stock

During the period ended December 31, 2019, the CEO of the Company forgave the interest on debt due to CEO, reducing accrued interest for the period by $9,282.

During the period ended December 31, 2019, the Company issued 113,377 shares of Common stock for the conversion of $56,855 in notes and $0 in accrued interest. The notes were converted in accordance with the terms of the note and the Company recorded a gain of $1,349 on the extinguishment of debt.

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. $25,008 common shares for services were committed to Vinoth Sambandam for issuance and is reflected in the stockholders’ equity section as Common Stock Payable.

As of December 31, 2019, the Company issued -0- shares for $7,698 to Steve Cantor for services rendered per agreement. These were valued using the market value on the date of grant for 300,000 shares issued in prior year.

F-16

Table of Contents

As of December 31, 2019, the Company issued 130,000 shares for $65,000 in cash proceeds for sale of the common shares. These shares were sold at the price of $0.50 per share on the date of the grant.

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 December 31, 2019.

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 December 31, 2019, the Company has 1,000 shares of Series A Preferred Stock 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 or 2018.

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

 

 

2019

 

 

2018

 

Net operating loss

 

$416,916

 

 

$399,821

 

Valuation allowance

 

 

(416,916)

 

 

(399,821)

Net deferred tax asset

 

$-

 

 

$-

 

As of December 31, 2019 and 2018, the Company’s accumulated net operating loss carry forward was approximately $2,056,937 and $1,903,911 respectively and will begin to expire in the year 2032. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%.

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events as of the date of the Financial Statements and has determined that all events are disclosed herein.

On January 2, 2020, the Company issued 40,000 shares of Company stock to Willy Ariel Saint-Hilaire at a purchase price of $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 January 27, 2020, the company entered into convertible promissory note with Willy Ariel Saint-Hilaire in the amount of $14,500. The note carries 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.

F-17

Table of Contents

On February 7, 2020, the Company issued 345,016 shares to Vinoth Sambandam for settlement of debt owed for services rendered through December 31, 2019.

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

On February 24, 2020, Addicted 2 Marketing 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 March 8, 2020 and March 24, 2020, the company entered into convertible promissory note with Willy Ariel Saint-Hilaire in the amounts of $1,581 and $1,552 respectively. 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.

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

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

On March 25, 2020 and April 28, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amounts of $5,000 and $4,000, respectively. The note carries 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.

On March 31, 2020, the Company issued 8,336 shares to Vinoth Sambandam for services rendered for the first quarter 2020.

On May 15, 2020, the Company agreed to issue 160,000 shares to Steven Cantor to settle compensation dispute. As of the date of this filing, the draft agreement has not been executed and shares have not been issued.

F-18

Table of Contents

Crown Equity Holdings, Inc.

Unaudited Condensed Balance Sheets

September 30, 2020 and December 31, 2019

 

 

Sep 30,
2020

 

 

Dec 31,

2019

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Assets

 

Current assets

 

 

 

 

 

 

Cash

 

$19,364

 

 

$997

 

Brokerage Account

 

$167,389

 

 

$-

 

Total Current Assets

 

 

186,753

 

 

 

997

 

Property and Equipment, net

 

 

4,780

 

 

 

28,882

 

Total Assets

 

$191,533

 

 

$29,879

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Deficit

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$143,227

 

 

$210,223

 

Accounts payable and accrued expenses to related party

 

 

343,296

 

 

 

80,664

 

Convertible notes payable to related parties, net of discount

 

 

6,000

 

 

 

760

 

Deferred Revenue – related party

 

 

15,583

 

 

 

-

 

Finance lease obligation, current

 

 

28,393

 

 

 

30,681

 

Total Current Liabilities

 

$536,499

 

 

$322,328

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Finance lease obligation, non-current

 

 

14,505

 

 

 

25,976

 

EIDL Loan

 

 

4,000

 

 

 

-

 

Total Liabilities

 

$555,004

 

 

$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; 12,898,753 and 11,766,766 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively

 

 

12,899

 

 

 

11,766

 

Stock Payable

 

 

750

 

 

 

43,764

 

Additional paid-in capital

 

 

12,503,340

 

 

 

11,418,103

 

Accumulated deficit

 

 

(12,880,461)

 

 

(11,792,059)

 

 

 

 

 

 

 

 

 

Total stockholders’ deficit

 

 

(363,471)

 

 

(318,425)

Total liabilities and stockholders’ deficit

 

$191,533

 

 

$29,879

 

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

F-19

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

Sep 30,

 

 

Sep 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$210

 

 

$419

 

 

$1,287

 

 

$3,464

 

Revenue – related party

 

 

1,667

 

 

 

-

 

 

 

1,667

 

 

 

50,000

 

Total Revenue

 

 

1,877

 

 

 

419

 

 

 

2,954

 

 

 

53,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

8,035

 

 

 

8,056

 

 

 

24,102

 

 

 

23,612

 

General and Administrative

 

 

137,008

 

 

 

41,973

 

 

 

493,438

 

 

 

108,701

 

Total Operating Expenses

 

 

145,043

 

 

 

50,029

 

 

 

517,540

 

 

 

132,313

 

Net Operating Income (Loss)

 

 

(143,166)

 

 

(49,610)

 

 

(514,586)

 

 

(78,849)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,164)

 

 

(3,644)

 

 

(11,871)

 

 

(12,291)

Investment expense

 

 

(17,000)

 

 

-

 

 

 

(17,000)

 

 

-

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(38,920)

Loss on Stock Held

 

 

(2,611)

 

 

-

 

 

 

(2,611)

 

 

-

 

Loss on AP Settlement – related party

 

 

-

 

 

 

-

 

 

 

(542,334)

 

 

-

 

Total other (expense)

 

 

(24,775)

 

 

(3,644)

 

 

(573,816)

 

 

(51,211)

Net (loss)

 

$(167,941)

 

$(53,254)

 

$(1,088,402)

 

$(130,060)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.01)

 

$(0.00)

 

$(0.09)

 

$(0.01)

Weighted average number of common shares outstanding - basic and diluted

 

 

12,606,731

 

 

 

11,973,418

 

 

 

12,269,852

 

 

 

11,909,339

 

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

F-20

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(Unaudited)

For the Three Months Ended September 30, 2020

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2020

 

 

1,000

 

 

$1

 

 

 

12,424,870

 

 

$12,423

 

 

$-

 

 

$12,240,785

 

 

$(12,712,520)

 

$(459,311)

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

412,000

 

 

$412

 

 

$-

 

 

$213,088

 

 

$-

 

 

$213,500

 

Common Stock for services – Third Party

 

 

-

 

 

 

-

 

 

 

334

 

 

$1

 

 

$750

 

 

$1,499

 

 

 

-

 

 

$2,250

 

Common Stock for services – Related Party

 

 

-

 

 

 

-

 

 

 

1,390

 

 

$1

 

 

$-

 

 

$6,251

 

 

$-

 

 

$6,252

 

Warrant Subscriptions

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$112

 

 

$-

 

 

$112

 

Debt Conversion

 

 

-

 

 

 

-

 

 

 

36,984

 

 

$37

 

 

$-

 

 

$18,455

 

 

$-

 

 

$18,492

 

Shares for prepayment of interest on NP-Related Party

 

 

-

 

 

 

-

 

 

 

23,175

 

 

$25

 

 

$-

 

 

$23,150

 

 

$-

 

 

$23,175

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(167,941)

 

 

(167,941)

Balances at September 30, 2020

 

 

1,000

 

 

$1

 

 

 

12,898,753

 

 

$12,899

 

 

$750

 

 

$12,503,340

 

 

$(12,880,461)

 

$(363,471)

For the Nine Months Ended September 30, 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

 

 

-

 

 

 

-

 

 

 

472,000

 

 

$472

 

 

$-

 

 

$243,028

 

 

$-

 

 

$243,500

 

Common Stock for services – Third Party

 

 

-

 

 

 

-

 

 

 

4,834

 

 

 

4

 

 

$750

 

 

$5,995

 

 

 

-

 

 

$6,749

 

Common Stock for services – related party

 

 

-

 

 

 

-

 

 

 

156,061

 

 

$156

 

 

$(43,764)

 

$62,365

 

 

$-

 

 

$18,757

 

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

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$472

 

 

$-

 

 

$472

 

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

 

Debt Converstion

 

 

-

 

 

 

-

 

 

 

36,984

 

 

$37

 

 

$-

 

 

$$18,455

 

 

$-

 

 

$18,492

 

Shares for prepayment of interest on NP-Related Party

 

 

-

 

 

 

-

 

 

 

23,175

 

 

$25

 

 

$-

 

 

$23,150

 

 

 

-

 

 

$23,175

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,088,402)

 

 

(1,088,402)

Balances at September 30, 2020

 

 

1,000

 

 

$1

 

 

 

12,898,753

 

 

$12,899

 

 

$750

 

 

$12,503,340

 

 

$(12,880,461)

 

$(363,471)

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

F-21

Table of Contents

For the Three Months Ended September 30, 2019

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2019

 

 

1,000

 

 

$1

 

 

 

11,952,766

 

 

$11,952

 

 

$51,260

 

 

$11,360,917

 

 

$(11,715,839)

 

$(291,709)

Common stock issued for cash

 

 

-

 

 

 

-

 

 

 

100,000

 

 

$100

 

 

$(20,000)

 

$49,900

 

 

$-

 

 

$30,000

 

Common Stock Subscribed for services

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$6,252

 

 

$-

 

 

$-

 

 

$6,252

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(53,254)

 

 

(53,254)

Balances at Sept 30, 2019

 

 

1,000

 

 

$1

 

 

 

12,052,766

 

 

$12,052

 

 

$37,512

 

 

$11,410,817

 

 

$(11,769,093)

 

$(308,711)

For the Nine Months Ended September 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

 

 

-

 

 

 

-

 

 

 

116,000

 

 

$116

 

 

$-

 

 

$87,844

 

 

$-

 

 

$57,960

 

Common Stock Subscribed for services

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$18,756

 

 

$-

 

 

$-

 

 

$18,756

 

Forgiveness of Interest – Related Party

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$9,282

 

 

$-

 

 

$9,282

 

Compensation Expense

 

 

-

 

 

 

-

 

 

 

-

 

 

$-

 

 

$-

 

 

$7,698

 

 

$-

 

 

$7,698

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(130,060)

 

 

(130,060)

Balances at Sept 30, 2019

 

 

1,000

 

 

$1

 

 

 

12,052,766

 

 

$12,052

 

 

$37,512

 

 

$11,410,817

 

 

$(11,769,093)

 

$(308,711)

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

F-22

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Nine months Ended

 

 

 

September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$(1,088,402)

 

$(130,060)

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

 

 

 

 

 

 

 

 

Common stock issued for services

 

 

24,756

 

 

 

26,454

 

Common stock issued for Settlement of Board Member Compensation

 

 

80,000

 

 

 

-

 

Depreciation

 

 

24,102

 

 

 

23,612

 

Loss on brokerage account

 

 

2,611

 

 

 

-

 

Loss on investment

 

 

17,000

 

 

 

-

 

Loss on AP settlement

 

 

543,987

 

 

 

-

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

38,920

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Deferred revenue – related party

 

 

(1,417)

 

 

(50,000)

Accounts payable and accrued expenses – related party

 

 

262,632

 

 

 

26,430

 

Accounts payable and accrued expenses

 

 

59,720

 

 

 

14,329

 

Net cash (used in) operating activities

 

 

(75,011)

 

 

(50,315)

 

 

 

 

 

 

 

 

 

Cash used in investing activities

 

 

 

 

 

 

 

 

Cash paid to brokerage account

 

 

(170,000)

 

 

-

 

Net cash (used in) investing activities

 

 

(170,000)

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payments on convertible notes payable, related party

 

 

(5,260)

 

 

(3,011)

Borrowings from convertible notes payable, related party

 

 

33,675

 

 

 

-

 

Proceeds from Sale of Stock

 

 

243,500

 

 

 

57,960

 

Proceeds from EIDL loan

 

 

4,000

 

 

 

-

 

Principal payments on debt

 

 

(13,759)

 

 

(10,604)

Warrant Subscriptions

 

 

472

 

 

 

-

 

Shares subscribed for cash

 

 

750

 

 

 

-

 

Net cash provided by financing activities

 

 

263,378

 

 

 

44,345

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

18,367

 

 

 

(5,970)

Cash, beginning of period

 

 

997

 

 

 

13,294

 

Cash, end of period

 

$19,364

 

 

$7,324

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Interest paid

 

$11,871

 

 

$7,905

 

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

 

 

18,489

 

 

 

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

 

 

 

-

 

Stock for related party deferred revenue

 

 

17,000

 

 

 

-

 

Stock issued for prepayment of interest on debt – related party

 

 

23,175

 

 

 

-

 

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

F-23

Table of Contents

CROWN EQUITY HOLDINGS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Nature of Business

Crown Equity Holdings Inc. (“Crown Equity” or the “Company”) was incorporated in August 1995 in Nevada. The Company offers through its digital network of websites, advertising branding, marketing solutions and other services to boost customer awareness, as well as merchant visibility as a worldwide online multi-media publisher. The Company focuses on the distribution of information for the purpose of bringing together its audience with the advertisers that want to reach them. Its advertising services cover and connect a range of marketing specialties, as well as provide search engine optimization for clients interested in online media awareness. Crown Equity Holdings' objective is making its endeavor known as CRWE WORLD into a 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 financial statements include the financial information of Crown Equity Holdings Inc. (“Crown Equity”, the “Company”) have been prepared in accordance with the instructions to financial reporting as prescribed by the Securities and Exchange Commission (the “SEC”). The preparation of these financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, the financial statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein.

Reclassifications

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

Adoption of New Accounting Standard

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

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

F-24

Table of Contents

impact on their financial position, results of operations or cash flows.

Accounting Standards not yet Adopted

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

Use of Estimates

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

Cash and Cash Equivalents

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

Stock-Based Compensation

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the awardassets or liabilities.

Our cash and is recognized as expense over the requisite employee service period. The Companybrokerage accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valuedmeasured at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instrumentson a recurring basis and is recognizedestimated as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances.follows.

 

Revenue Recognition

December 31, 2021

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$4,320

 

 

$4,320

 

 

$-

 

 

$-

 

Investments in trading securities

 

 

558,945

 

 

 

558,945

 

 

 

-

 

 

 

-

 

Total

 

$593,265

 

 

$593,265

 

 

$-

 

 

$-

 

 

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.

F-25

Table of Contents

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.

 

 

Nine Months Ended Sep 30, 2020

Nine Months

Ended Sep 30,

2019

 

 

 

Third Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

Advertising

 

$-

 

 

$1,275

 

 

$1,275

 

 

$2,000

 

 

$50,000

 

 

$52,000

 

Click Based and Impressions Ads

 

 

332

 

 

 

-

 

 

 

332

 

 

 

614

 

 

 

-

 

 

 

614

 

Domain Registrations

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10

 

 

 

-

 

 

 

10

 

Publishing and Distribution

 

 

955

 

 

 

392

 

 

 

1,347

 

 

 

840

 

 

 

-

 

 

 

840

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$1,287

 

 

$1,667

 

 

$2,954

 

 

$3,464

 

 

$50,000

 

 

$53,464

 

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.

F-26

Table of Contents

 

 

Sep 30,

 

 

Sep 30,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Deferred Revenue

 

$15,583

 

 

$-

 

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

Accounts Receivable and Allowance for Doubtful Accounts

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of September 30, 2020 and December 31, 2019.

Risk Concentrations

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

During the period ending September 30, 2020, 11% of the Company’s revenues were from click based and impressions ads located on the company’s websites, as well as 46% for press releases, article publishing and distribution by the Company and 43% of the Company’s revenues being received through advertisements, which 100% of the advertisement revenue was received through a related party by the Company.

General and Administrative Expenses

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2020 and 2019: Compensation expense, 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 2020 or 2019.

F-27

Table of Contents

Basic and Diluted Net (Loss) per Share

 

 

Three

Months

Sep 30,

2020

 

 

Three

Months

Sep 30,

2019

 

Numerator:

 

 

 

 

 

 

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

 

$(167,941)

 

$(53,254)

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

 

$(167,941)

 

$(53,254)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

12,606,731

 

 

 

11,973,418

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.01)

 

$(0.00)

Diluted

 

$(0.01)

 

$(0.00)

 

 

Nine

Months

Sep 30,

2020

 

 

Nine

Months

Sep 30,

2019

 

Numerator:

 

 

 

 

 

 

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

 

$(1,088,402)

 

$(130,060)

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

 

$(1,088,402)

 

$(130,060)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

12,269,852

 

 

 

11,909,339

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.09)

 

$(0.01)

Diluted

 

$(0.09)

 

$(0.01)

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 September 30, 2020 and 2019. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended September 30, 2020 is 18,900,000.

F-28

Table of Contents

Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal 2019 and 2020 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of September 30, 2020, and December 31, 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 September 30, 2020 and December 31, 2019:

 

 

Sep 30,

2020

 

 

Dec 31,

2019

 

Net operating loss

 

$531,243

 

 

$416,916

 

Valuation allowance

 

 

(531,243)

 

 

(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 September 30, 2020 and December 31, 2019.

Fair Value of Financial Instruments

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$2,930

 

 

$2,930

 

 

$-

 

 

$-

 

Investments in trading securities

 

 

0.00

 

 

 

0.00

 

 

 

-

 

 

 

-

 

Total

 

$2,930

 

 

$2,930

 

 

$-

 

 

$-

 

 

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

 

Research and Development

 

The Company spent no money for research and development cost for the periodsyears ended September 30, 2020 and December 31, 2019.2022 and 2021.

 

Advertising Cost

 

The Company spent $0no money for advertisement for the periodsyears ended September 30, 2020December 31, 2022 and 2019.2021.

Depreciation expense was $7,513 and $5,485 for the years ended December 31, 2022 and 2021, respectively.

 

NOTE 2 – GOING CONCERN

 

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $12,996,336$14,156,842 since its inception and had a working capital deficit of $372,921,$1,382,838 negative cash flows from operations and limited business operations as of September 30, 2020.December 31, 2022. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

 

Crown Equity continues to review its expense structure reviewing costs and their reduction to move towards profitability. Management plans to continue raising funds through debt and equity financing to grow the business to profitability. This financing may be insufficient to fund expenditures or other cash requirements. There can be no

assurance that additional financing will be available to the Company on acceptable terms or at all. These financial statements do not give effect to adjustments to assets would be necessary for the Company be unable to continue as going concern.

 

 
F-29F-13

Table of Contents
Table of Contents

 

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 September 30, 2020 and December 31, 2019:2022 and 2021

 

 

 

Sep 30,

2020

 

 

Dec 31,

2019

 

Computers – 3 year estimated useful life

 

$96,669

 

 

$96,669

 

Less – Accumulated Depreciation

 

 

(91,889)

 

 

(67,787)

Property and Equipment, net

 

$4,780

 

 

$28,882

 

 

 

December 31,

2022

 

 

December 31,

2021

 

Computers – 3 year estimated useful life

 

$108,622

 

 

$108,622

 

Less – Accumulated Depreciation

 

 

(106,115)

 

 

(98,602)

Property and Equipment, net

 

$2,507

 

 

$10,020

 

 

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $24,102,$7,513 and $23,612$5,485 for the ninetwelve months ended September 30, 2020December 31, 2022 and 2019,2021, respectively.

 

NOTE 4 – BROKERAGE ACCOUNTINVESTMENTS IN TRADING SECURITIES INVESTMENTS IN TRADING SECURITIES INVESTMENTS IN TRADING SECURITIES

 

As of September 30, 2020,December 31, 2022, the market value of the Company’s account portfolio, consisting of stocks only, was $167,389.$0.00 offset by a margin loan of $0.00. The openingloan is collateralized by the securities in the account and carries 7.5% annual interest rate. The Company transferred $200,000 cash from accounts to brokerage account during the 3rd quarter of 2021. The Company invested in various industries within the Nasdaq and New York stock exchange. The margin loan interest was $4,617 for the year ended December 31, 2022.

As of December 31, 2021, the market value of the Company’s account portfolio, consisting of stocks only, was $170,000, resultingoffset by a margin loan of $263,151. Since the margin loan was collateralized by the securities in losses in portfolio investment as follows:the account, the brokerage firm sold the collateralized securities during January through April of the year 2022 to pay the margin loan owed. 

 

Net loss on investment in securities account for the nine months ended September 30, 2020

 

$2,611

 

Less – Net gain and losses recognized during 2020 on equity securities sold during the period

 

$0

 

Unrealized losses recognized during 2020 on equities securities still held at September 30, 2020

 

$2,611

 

As of December 31, 2021, the market value of the Company’s account portfolio, consisting of stocks only, was $588,945 offset by a margin loan of $263,151. The loan is collateralized by the securities in the account and carries 7.5% annual interest rate. The Company transferred $200,000 cash from accounts to brokerage account during the 3rd quarter of 2021 The Company invested in various industries within the Nasdaq and New York stock exchange. The margin loan interest was $1,257 for the year ended December 31, 2021. 

Trading Securities

 

Dec 31,

2022

 

 

Dec 31,

2021

 

Stocks

 

$0.00

 

 

$588,945

 

 

NOTE 5 – FINANCECAPITAL LEASES

 

During 2019,the period ending December 31, 2022, the Company borrowedpaid an aggregate $9,985 under the following third-party and related party financeof $15,301 toward capital lease transactions:

A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a 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.

F-30

Table of Contents

balances.

 

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

 

Assets

 

Sep 30,

2020

 

Leased equipment under finance lease,

 

$96,669

 

less accumulated amortization

 

 

(91,889)

Net

 

$4,780

 

Assets

 

December 31,

2022

 

Leased equipment under finance lease,

 

$73,883

 

less accumulated amortization

 

 

(72,009)

Net

 

$1,874

 

 

Liabilities

 

Sep 30,

2020

 

Obligations under finance lease (current)

 

$28,393

 

Obligations under finance lease (noncurrent)

 

 

14,505

 

Total

 

$42,898

 

F-14

Table of Contents

 

Below is a reconciliation of leases to the financial statements.

 

 

Finance

Leases

 

Leased asset balance

 

$4,780

 

Liability balance

 

 

42,898

 

Cash flow (operating)

 

 

-

 

Cash flow (financing)

 

 

-

 

Interest expense

 

$2,789

 

Liabilities

 

December 31,

2022

 

Obligations under finance lease (current)

 

$2,868

 

Obligations under finance lease (noncurrent)

 

 

0

 

Total

 

$

2868

 

 

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

 

Years ended December 31

 

Finance

Leases

 

20202023

 

 

18,278

2021

15,726

2022

11,8603,038

 

Thereafter

 

 

-

 

Total

 

 

45,864

 

Less: Imputed Interest

 

 

(2,966170)

Total Liability

 

 

42,898

Other information related to leases is as follows:

Lease Type2,868

Weighted

Average

Remaining

Term

Weighted

Average

Discount

Rate (1)

 

Finance Leases

1.49 years

16%

Based on average interest rate of 16%, average term remaining (months) 21.19 Average term remain (years) 1.49.

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

F-31

Table of Contents

 

NOTE 6 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

 

As of September 30, 2020, and December 31, 2019,2022 and 2021, the Company had unamortized discount of $0 and $0 respectively.

 

The Company analyzed the below convertible notes for derivatives noting none. The Company evaluated these convertible notes for beneficial conversion features and concluded that the beneficial conversion features resulted in a debt discount in the amount of $0.00, as of December 31, 2022.

 

 

 

Original

 

Due

 

Interest

 

 

Conversion

 

 

Sep 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%

 

$-

 

 

 

4,000

 

Montse Zaman

 

04/28/2020

 

04/28/2021

 

 

12%

 

$-

 

 

 

2,000

 

Montse Zaman

 

05/22/2020

 

05/22/2021

 

 

12%

 

$-

 

 

 

-

 

Willy A Saint-Hilaire

 

09/29/2020

 

09/29/2021

 

 

 

 

 

 

-

 

 

 

23,175

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,175

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,175

 

Convertible Notes Payable, net of Discount - Related Party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

02/27/2020

 

02/27/2021

 

 

12%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

03/08/2020

 

03/08/2021

 

 

12%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

03/24/2020

 

03/24/2021

 

 

12%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

03/24/2020

 

03/24/2021

 

 

12%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

03/24/2020

 

03/24/2021

 

 

12%

 

$-

 

 

 

-

 

Total Convertible Third Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Convertible Notes Payable, net of Discount -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Original

 

Due

 

Interest

 

 

Conversion

 

 

Dec. 31,

 

Name

 

Note Date

 

Date

 

 Rate

 

 

Rate

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

03/12/2021

 

03/12/2022

 

 

16%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

02/28/2022

 

02/28/2023

 

 

12%

 

$-

 

 

 

4,500

 

Mohammad Sadrolashrafi

 

11/17/2022

 

11/17/2023

 

 

12%

 

 

 

 

 

 

5,000

 

Total Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,500

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

04/06/2021

 

04/06/2022

 

 

12%

 

$-

 

 

 

900

 

Jamie Hadfield

 

04/07/2022

 

04/07/2023

 

 

12%

 

$-

 

 

 

10,000

 

Willy A. Saint-Hilaire

 

04/16/2021

 

04/16/2022

 

 

12%

 

$-

 

 

 

1,518

 

Willy A. Saint-Hilaire

 

04/21/2021

 

04/21/2022

 

 

12%

 

$-

 

 

 

1,110

 

Shahram Khial

 

04/22/2021

 

04/22/2022

 

 

12%

 

$-

 

 

 

-

 

Willy A. Saint-Hilaire

 

04/30/2021

 

04/30/2022

 

 

15.15%

 

$-

 

 

 

2,750

 

Willy A. Saint-Hilaire

 

05/04/2021

 

05/04/2022

 

 

15.15%

 

$-

 

 

 

750

 

Willy A. Saint-Hilaire

 

05/21/2021

 

05/21/2022

 

 

0%

 

$-

 

 

 

-

 

Mohammad Sadrolashrafi

 

09/09/2022

 

09/09/2023

 

 

12%

 

$-

 

 

 

-

 

Mike Zaman Irrevocable Trust

 

12/25/2022

 

12/25/2023

 

 

12%

 

 

 

 

 

$2,000

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,028

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Convertible Notes Payable, net of Discount - Related Party   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,028

 

 

 
F-32F-15

Table of Contents
Table of Contents

 

In April 2020, Crown Equity Holdings executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business.

The balance of principal and interest is payable thirty years from the date of the SBA Note. In connection therewith, the Company received a $4,000 advance.

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 September 30, 2020.

Montse ZamanWilly Ariel Saint-Hilaire

 

On March 27, 2020,12, 2021, the Company entered into a promissory note with Willy A. Saint-Hilaire in the amount of $9,332 at 16% interest. The company made principal reduction payments of $5,421, during the year-ended period of December 31, 2021. As of March 31, 2022, the balance on this note is $2,012. With the additional payments totaling $1,212, during the second quarter period ending June 30, 2022, the balance on the note was $800. Two payments of $400 were made on July 12, 2022, and August 10, 2022, respectively. As of December 31, 2022, the principal balance on this note was $0.00.

On April 6, 2021, the Company entered into a promissory note with Willy A. Saint-Hilaire in the amount of $2,500 at an interest rate of 12%. Four payments of $400 was made on September 19, 2022, October 21, 2022, November 21, 2022, and December 20, 2022, respectively. As of December 31, 2022, the principal balance on this note was $900.

On April 16, 2021, the Company entered into a convertible promissory note with Montse ZamanWilly A. Saint-Hilaire in the amount of $5,000. The note carries$1,518 at an interest atrate of 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common shares. On August 21, 2020, the Company made a $1,000 principal reduction payment..  As of September 30, 2020,December 31, 2022, the principal balance on this note was $4,000.$1,518.

 

On April 28, 2020,21, 2021, the Company entered into a convertible promissory note with Montse ZamanWilly A. Saint-Hilaire in the amount of $4,000. The note carries$1,109.83 at an interest atrate of 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common shares. On September 20, 2020, the Company made a $2,000 principal reduction payment.. As of September 30, 2020,December 31, 2022, the principal balance on this note was $2,000.$1,110. 

 

On May 22, 2020,April 30, 2021, the Company entered into a convertible promissory note with Montse ZamanWilly A. Saint-Hilaire in the amount of $1,500. The$2,750.00 at an interest rate of 15.15%. As of December 31, 2022, the principal balance on this note carrieswas $2,750.

On May 4, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $750 at an interest at 12% per annum. The holder hasrate of 15.15%.  As of December 31, 2021, the right to convert principal balance on this note was $750.

On May 21, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $7,280. As of March 31, 2022, the principal balance on this note was $4,900. With the additional payments totaling $300 during the second quarterly period ending June 30, 2022, the balance on the note and accrued interest into Common shares. The Company made paymentswas $4,600. During the third quarter $4,600 was paid. As of $700 and $800December 31, 2022, the principal balance on May 22, 2020 and July 31, 2020 respectively.

Willy Ariel Saint-Hilairethis note was $0.00.

 

On February 27, 2020,28, 2022, the Company entered into a promissory note with Willy ArielA. Saint-Hilaire in the amount of $14,500. The$4,500 at an interest rate of 0 %. On September 15, 2022, the interest for the note carries interest atwas amended to 12% per annum. On July. As of December 31, 2020,2022, the principal balance of $14,500 and accrued interest of $744 for a total of $15,244 were converted into 30,488 common shares at a conversion rate of $.50 per share.on this note was $4,500.

F-16

Table of Contents

Shahram Khial

 

On March 8, 2020,April 22, 2021, the Company entered into a convertible promissory note with Shahram Khial in the amount of $3,500 at an interest rate of 12%. On October 31, 2022 the note was converted into shares of Company stock. As of December 31, 2022, the principal balance on this note was $0.00. The note was converted within the terms of the agreement and no gain or loss was recorded.

Jamie Hadfield

On April 7, 2022, the Company entered into a promissory note with Willy Ariel Saint--HilaireJamie Hadfield in the amountsamount of $1,581. The notes carry$10,000 at an interest atrate of 12% per annum. On July. As of December 31, 2020,2022, the principal balance of $1,581 and accrued interest of $75 for a total of 1,656 were converted into 3,312 common shares at a conversion rate of $.50 per share.on this note was $10,000.

 

On March 24, 2020, the Company entered into promissory notes with Willy Ariel Saint-Hilaire in the amounts of $500, $400, and $652. The notes carry interest at 12% per annum. On July 31, 2020, the principal balance of $500, $400, $652 and accrued interest of $21, $17, $2 respectively for a total of $1,592 were converted into 3,184 common shares at a conversion rate of $.50 per share.Mohammad Sadrolashrafi

  

On September 20, 2020,9, 2022, the Company entered into a promissory note with Willy A Saint-HilaireMohammad Sadrolashrafi in the amount of $23,175 payable in 12 equal monthly installments$5,000 at an interest rate of $1,931.25. As original issuance discount for12%. %. On October 21, 2022 the note was converted into shares of Company stock. As of December 31, 2022, the principal balance on this note was $0.00. The note was converted within the terms of the agreement and no gain or loss was recorded.

On November 17, 2022, the Company issued Common Stock forentered into a totalpromissory note with Mohammad Sadrolashrafi in the amount of 23,175 shares. The fair market value$5,000 at an interest rate of 12%. As of December 31, 2022, the shares were in excess of theprincipal balance on this note and the company recorded a debt discount of $23,175.was $2,000.

 

Mike Zaman Irrevocable Trust

On December 25, 2022, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of December 31, 2022, the principal balance on this note was $2,000.

Period ending December 31, 2021

 

 

Original

 

Due

 

Interest

 

 

Conversion

 

 

Dec. 31,

 

Name

 

Note Date

 

Date

 

Rate

 

 

Rate

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

03/12/2021

 

03/12/2022

 

 

16%

 

$-

 

 

 

3,912

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

04/06/2021

 

04/06/2022

 

 

12%

 

$-

 

 

 

2,500

 

Willy A. Saint-Hilaire

 

04/16/2021

 

04/16/2022

 

 

12%

 

$-

 

 

 

1,518

 

Willy A. Saint-Hilaire

 

04/21/2021

 

04/21/2022

 

 

12%

 

$-

 

 

 

1,110

 

Shahram Khial

 

04/22/2021

 

04/22/2022

 

 

12%

 

$-

 

 

 

3,500

 

Willy A. Saint-Hilaire

 

04/30/2021

 

04/30/2022

 

 

15.15%

 

$-

 

 

 

2,750

 

Willy A. Saint-Hilaire

 

05/04/2021

 

05/04/2022

 

 

15.15%

 

$-

 

 

 

750

 

Willy A. Saint-Hilaire

 

05/21/2021

 

05/21/2022

 

 

0%

 

$-

 

 

 

6,300

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,428

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Convertible Notes Payable, net of Discount - Related Party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 
F-33F-17

Table of Contents
Table of Contents

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

 

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

 

The Company agreed to pay the automobile lease of $395 and $278 a month, on a month to monthmonth-to-month basis and can be cancelled at any time but expects to continue lease payments for the full 20202023 year.

 

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

 

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

  

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

 

On March 13, 2020, Willy Ariel Saint--HilaireSaint-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, MalcomMalcolm 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.

F-18

Table of Contents

 

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

 

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

 

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

F-34

Table of Contents

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

On May 29, 2020 Ybelka Saint HilaireSaint-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.

 

F-19

Table of Contents

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

 

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

 

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

 

F-35

Table of Contents

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

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

Om January 3, 2021, Marjan Tina and Reno Suwarno 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.

 
F-36F-20

Table of Contents
Table of Contents

 

Summary of Warrants Issued:

Issue Date

 

 

Issued To

 

Shares

 

 

Exercise price

per share

 

 

Warrant price

per share

 

 

Total Paid

for Warrants

 

02/13/2020

 

 

Munti Consulting LLC

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

03/13/2020

 

 

BBCKQK Trust Kevin Wiltz

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

04/01/2020

 

 

Addicted 2 Marketing LLC

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

05/07/2020

 

 

Arnold F Sock

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

05/07/2020

 

 

Rudy Chacon

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/07/2020

 

 

Sadegh Salmassi

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/08/2020 

 

 

Glen J Rineer

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/08/2020

 

 

Barry Cohen

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/13/2020

 

 

Steven A Fishman

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/13/2020

 

 

Wendell & Sharon Piper

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/27/2020

 

 

James Bobrik

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/28/2020

 

 

Richard R Shehane

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

06/03/2020

 

 

Jeffery Connell

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

06/08/2020

 

 

Hassan M Oji

 

 

300,000

 

 

$0.60

 

 

$0.000025

 

 

$7.50

 

06/09/2020

 

 

Kim Smith

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

06/12/2020

 

 

Violet Gewerter

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

06/16/2020

 

 

Roy S Worbets

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

06/30/2020

 

 

Chris Knudsen

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

07/01/2020

 

 

Donald Kitt

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

08/13/2020

 

 

Monireh Sepahpour

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

08/18/2020

 

 

Monica Shayestehpour

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

09/02/2020

 

 

Hongsing Phou

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

09/08/2020

 

 

Pejham Khial

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/15/2020

 

 

Salvatore Marasa

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

09/21/2020

 

 

Richard W LeAndro

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/21/2020

 

 

Richard W LeAndro Jr

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/25/2020

 

 

Seyed M Javad

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

10/06/2020

 

 

Nasrin Montazer

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

10/13/2020

 

 

Jagjit Dhaliwal

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

01/03/2021

 

 

Marjan Tina and Reno Suwarno

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

 

 

 

Total:

 

 

12,300,000

 

 

 

 

 

 

 

 

 

 

$307.50

 

 

Issue Date

 

Issued To

 

Shares

 

 

Exercise price

per share

 

 

Warrant price per share

 

 

Total Paid for

Warrants

 

02/13/2020

 

Munti Consulting LLC

 

 

1,000,000

 

 

$.060

 

 

$0.000025

 

 

$25.00

 

03/13/2020

 

BBCKQK Trust Kevin Wiltz

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

04/01/2020

 

Addicted 2 Marketing LLC

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

05/07/2020

 

Arnold F Sock

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

05/07/2020

 

Rudy Chacon

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/07/2020

 

Sadegh Salmassi

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/08/2020

 

Glen J Rineer

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/08/2020

 

Barry Cohen

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/13/2020

 

Steven A Fishman

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/13/2020

 

Wendell & Sharon Piper

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/27/2020

 

James Bobrik

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/28/2020

 

Richard R Shehane

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

06/03/2020

 

Jeffery Connell

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

06/08/2020

 

Hassan M Oji

 

 

300,000

 

 

$0.60

 

 

$0.000025

 

 

$7.50

 

06/09/2020

 

Kim Smith

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

06/12/2020

 

Violet Gewerter

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

06/16/2020

 

Roy S Worbets

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

06/30/2020

 

Chris Knudsen

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

07/01/2020

 

Donald Kitt

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

08/13/2020

 

Monireh Sepahpour

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

08/18/2020

 

Monica Shayestehpour

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

09/02/2020

 

Hongsing Phou

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

09/08/2020

 

Pejham Khial

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/15/2020

 

Salvatore Marasa

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

09/21/2020

 

Richard W LeAndro

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/21/2020

 

Richard W LeAndro Jr

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

09/25/2020

 

Seyed M Javad

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

 

 

Total:

 

 

9,800,000

 

 

 

 

 

 

 

 

 

 

$245.00

 

Related Party:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

03/13/2020

 

Willy A Saint-Hilaire

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

04/28/2020

 

Shahram Khial

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

05/01/2020

 

Mike Zaman

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

05/01/2020

 

Montse Zaman

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

05/08/2020

 

Malcom Ziman

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/08/2020

 

Brett Matus

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/11/2020

 

Mohammad Sadrolashrafi

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/04/2020

 

Arnulfo Saucedo-Bardan

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

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

 

05/19/2020

 

Joan R Saint-Hilaire

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

05/19/2020

 

Marvin A Saint-Hilaire

 

 

100,000

 

 

$0.60

 

 

$0.000025

 

 

$2.50

 

05/20/2020

 

Willy Rafael Saint-Hilaire

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

05/29/2020

 

Ybelka Saint-Hilaire

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

06/09/2020

 

Kenneth Cornell Bosket

 

 

1,000,000

 

 

$0.60

 

 

$0.000025

 

 

$25.00

 

06/19/2020

 

Elvis E Saint-Hilaire

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

07/01/2020

 

Theresa Kitt

 

 

200,000

 

 

$0.60

 

 

$0.000025

 

 

$5.00

 

07/10/2020

 

Shahram Khial

 

 

500,000

 

 

$0.60

 

 

$0.000025

 

 

$12.50

 

 

 

Total Related Party:

 

 

9,100,000

 

 

 

 

 

 

 

 

 

 

$220.00

 

Related Party:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

03/13/2020

 

Willy A Saint-Hilaire

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

04/28/2020

 

Shahram Khial

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

05/01/2020

 

Mike Zaman

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/01/2020

 

Montse Zaman

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Malcolm Ziman

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/08/2020

 

Brett Matus

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/11/2020

 

Mohammad Sadrolashrafi

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

05/04/2020

 

Arnulfo Saucedo-Bardan

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Brian D. Colvin

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

05/08/2020

 

Jacob Colvin

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/19/2020

 

Joan R Saint-Hilaire

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

05/19/2020

 

Marvin A. Saint-Hilaire

 

 

100,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

2.50

 

05/20/2020

 

Willy Rafael Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

05/29/2020

 

Ybelka Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

06/09/2020

 

Kenneth Cornell Bosket

 

 

1,000,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

25.00

 

06/19/2020

 

Elvis E Saint-Hilaire

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

07/01/2020

 

Theresa Kitt

 

 

200,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

5.00

 

07/10/2020

 

Shahram Khial

 

 

500,000

 

 

$

0.60

 

 

$

0.000025

 

 

$

12.50

 

 

 

 

 

 

9,100,000

 

 

 

 

 

 

 

 

 

 

 

227.50

 

 

 
F-37F-21

Table of Contents
Table of Contents

     

NOTE 8 – RELATED PARTY TRANSACTIONS

 

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

 

On January 13, 2020, the Company paid the remaining payable balance due to Mike Zaman of $760 for expenses paid on behalf of the Company.

On January 29, 2020, WYSH Investment LLC paid the Company $100 for press release services.

During the period ended March 31, 2020, the Company recorded the forgiveness of $7,200 accounts payable rent balance due to Mike Zaman.

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

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

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

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

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

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

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

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

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

F-38

Table of Contents

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

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

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

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

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

On July 31, 2010,2022, the Company entered into a Note Conversion Agreementpromissory note with Willy AA. Saint-Hilaire to convert $17,633in the amount of Note Payable plus$4,500 at an interest of $859 to 36,984 shares of common stock at a conversion rate of $0.50 per share.0 %. On September 15, 2022, the interest for the note was amended to 12%. As of December 31, 2022, the principal balance on this note was $4,500.

 

On September 1, 2020,March 13, 2022, the Company entered into a Services Agreement with American Video Teleconferencing Corp (AVOT) to provide advertising, branding and marketing solutions.accounting services. The Company was compensated $17,000 for services to be rendered for a period of 12 months. Total compensation of $17,000 was converted to 17,000,000 million shares of AVOT restricted common stock The Company recognized $1,417 in revenue$2,000 for the nine month period ended September 30, 2020. There is remaining $15,583services rendered.

On March 18, 2022, American Video Teleconferencing Corp. paid the Company $150 for press release services.

On April 7, 2022, the Company entered into a promissory note with Jamie Hadfield in deferred revenue asthe amount of September 30, 2020.$10,000 at an interest rate of 12%. As of December 31, 2022, the principal balance on this note was $10,000.

 

On September 9, 2020,2022, the Company entered into a promissory note with Mohammad Sadrolashrafi in the amount of $5,000 at an interest rate of 12%. On October 21, 2022, the note was converted into shares of Company stock. As of December 31, 2022, the principal balance on this note was $0.00. The note was converted within the terms of the agreement and no gain or loss was recorded.

On October 21, 2022, Mohammad Sadrolashrafi purchased 30,00010,000 shares of common stock at $0.50 per share at a purchase price of $15,000.$5,000.

  

On September 14, 2020, AVOT paidOctober 31, 2022, A promissory note that the Company $250 for press release services.entered into on April 22, 2021, with Shahram Khial in the amount of $3,500 at an interest rate of 12%. On November 2, 2022 the note was converted into shares of Company stock. As of December 31, 2022, the principal balance on this note was $0.00. The note was converted within the terms of the agreement and no gain or loss was recorded.

      

On September 29, 2020,November 2, 2022, Shahram Khial purchased 10,000 shares of common stock at $0.50 per share at a purchase price of $5,000.

On November 17, 2022, the Company entered into a Promissory Note Agreementpromissory note with Willy A Saint-Hilare for $23,175.Mohammad Sadrolashrafi in the amount of $5,000 at an interest rate of 12%. As original issuance discount forof December 31, 2022, the principal balance on this note the Company issued Common Stock for a total of 23,175 shares. The fair market value of the shares were in excess of the note and the company recorded a debt discount of $23,175.was $2,000

 

The Company is periodically advanced operating funds from related parties with convertible notes payable. DuringOn December 25, 2022, the nine months ended September 30, 2020, total convertible notes from related parties was $23,175. 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 paya promissory note with Mike Zaman $20,000 per month for managerial services.

The Company entered intoIrrevocable Trust in the amount of $2,000 at 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.

interest rate of 12%. As of September 30, 2020,December 31, 2022, the Company has aprincipal balance of $343,296 of accounts and accrued expenses payable with related parties.

F-39

Table of Contents

on this note was $2,000.

 

NOTE 9 – STOCK HOLDERS’ DEFICITSTOCKHOLDERS' EQUITY

 

Common Stock

 

During the nine monthsperiod ending September 30, 2020,December 31, 2022, the Company issued the following:66,405 shares of common stock as follows:

Third Party:

 

 

·

472,000On March 9, 2022, the Company issued 20,000 restricted shares of common stock for a total of $10,000 in cash. The shares for cash proceedswere sold at the price of $243,500.$0.50 per share on the purchase date.

 

·

140,083On May 3, 2022, the Company issued 8,000 restricted shares issuedof common stock for settlementa total of stock payable due to Vinoth Sambandan for balance owed through December 31, 2019$4,000 in cash. The shares were sold at the price of $0.50 per share on the purchase date.

 

·

204,933 shares issued for settlement of accounts payable due to Vinoth Sambandan for balance owed through December 31, 2019

Related Party:

 

·

160,000 shares issued to Steven Cantor to settle compensation dispute.

 

·

4,834On October 21, 2022, the Company issued 10,000 restricted shares issued to third partiesof common stock for services rendered.a total of $5,000 in cash. The shares were sold at the price of $0.50 per share on the purchase date.

 

·

15,978On October 21, 2022, the Company issued 10,124 shares issuedof common stock for the conversion of debt and accrued to Vinoth Sambandaninterest at a conversion rate of fifty cents ($0.50) per share per dollar ($1.00) owed on the note that was for stock payable.the amount of $5,062. The note was converted within the terms of the agreement and no gain or loss was recorded.

 

·

74,000On October 31, 2022, the Company issued 8,281 shares issuedof common stock for the conversion of debt and accrued to third partiesinterest at a conversion rate of fifty cents ($0.50) per share per dollar ($1.00) owed on the note that was for settlementthe amount of Accounts Payable.$4,140. . The note was converted within the terms of the agreement and no gain or loss was recorded.

 

·

36,984On November 2, 2022, the Company issued 10,000 restricted shares issued to Willy A Saint-Hilaireof common stock for conversiona total of Note Payable$5,000 in cash. The shares were sold at the price of $0.50 per share on the purchase date.

F-22

·

23,175 shares issued to Willy A Saint-Hilaire for interest prepaymentTable of Note Payable

Contents

 

On February 13,During the period ended December 31, 2020, the Company granted non-qualified stock warrants purchasing up to 1,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company’s S1 registration filing of which date is yet to be determined.

On March 13, 2020, the Company granted non-qualified stock warrants purchasing up to 2,000,0003,000,000 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 September 30, 2020December 31, 2022.

 

Preferred Stock

 

The Company has designated 1,000 shares of its preferred stock as Series A Preferred Stock. Each share of Series A Preferred shall have no dividend, voting or other rights except for the right to elect Class I Directors. As of September 30, 2020,December 31, 2022 and December 31, 2021, the Company has 1,000 shares of Series A Preferred Stock outstanding.

F-40

Table of Contents

outstanding

    

NOTE 10 – INCOME TAXES

 

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

 

The Company did not have taxable income during 2020.2022 or 2021.

 

The Company's deferred tax assets consisted of the following as of September 30, 2020 and December 31, 2019:2022 and 2021:

 

 

 

2020

 

 

2019

 

Net operating loss

 

$531,243

 

 

$416,916

 

Valuation allowance

 

 

(531,243)

 

 

(416,916)

Net deferred tax asset

 

$-

 

 

$-

 

 

 

    2022

 

 

       2021

 

Net operating loss

 

$908,653

 

 

$753,258

 

Valuation allowance

 

 

(908,653)

 

 

(753,258)

Net deferred tax asset

 

$-

 

 

$-

 

     

As of September 30, 2020, and December 31, 2019,2022 and 2021, the Company's accumulated net operating loss carry forward was approximately $2,529,727$4,322,575 and $1,985,312$3,586,945. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%.

NOTE 11 – SUBSEQUENT EVENTS

On January 11, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%.

On January 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%.

On January 31, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%.

On February 14, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%.

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%.

F-23

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

June

30, 2023

 

 

December,

31, 2022

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$3,165

 

 

$2,930

 

Total Current Assets

 

 

3,165

 

 

 

2,930

 

Property and Equipment, net

 

 

515

 

 

 

2,507

 

Total Assets

 

$3,680

 

 

$5,437

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$145,954

 

 

$145,630

 

Accounts payable and accrued expenses to related party

 

 

1,204,830

 

 

 

1,208,740

 

Notes payable to related parties

 

 

38,800

 

 

 

9,500

 

Convertible notes payable to related parties, net of debt discount

 

 

30,900

 

 

 

19,028

 

Note payable short-term debt

 

 

1,305

 

 

 

2,870

 

Total Current Liabilities

 

 

1,421,789

 

 

 

1,385,768

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

1,421,789

 

 

 

1,385,768

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Preferred Stock, 20,001,000 shares authorized, authorized at $0.001 par value, none issued or outstanding

 

 

-

 

 

 

-

 

Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding at June 30, 2023 and December 31, 2022

 

 

1

 

 

 

1

 

Common Stock, 450,000,000 authorized at $0.001 par value; and 13,385,047 and 13,385,047 shares issued and outstanding at June 30, 2023 and December 31, 2022

 

 

13,384

 

 

 

13,384

 

Additional paid-in capital

 

 

12,763,126

 

 

 

12,763,126

 

Accumulated deficit

 

 

(14,194,620)

 

 

(14,156,842)

Total stockholders' deficit

 

 

(1,418,109)

 

 

(1,380,331)

Total liabilities and stockholders' deficit

 

$3,680

 

 

$5,437

 

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

F-24

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$-

 

 

$413

 

 

$-

 

 

$557

 

Revenue – related party

 

 

-

 

 

 

2,150

 

 

 

-

 

 

 

2,150

 

Total Revenue

 

 

-

 

 

 

2,563

 

 

 

-

 

 

 

2,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

996

 

 

 

2,216

 

 

 

1,992

 

 

 

4,043

 

General and Administrative

 

 

12,010

 

 

 

122,547

 

 

 

34,314

 

 

 

250,464

 

Total Operating Expenses

 

 

13,006

 

 

 

124,763

 

 

 

36,306

 

 

 

254,507

 

Net Operating Income (Loss)

 

 

(13,006)

 

 

(122,200)

 

 

(36,206)

 

 

(251,800)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(347)

 

 

(872)

 

 

(1,472)

 

 

(1,438)

Gain (Loss) on Stocks Held or Sold

 

 

-

 

 

 

(80,717

 

 

-

 

 

 

(252,568

Other Income (Expense)

 

 

-

 

 

 

(1,095)

 

 

 

 

 

 

(4,616)

Total other expense

 

 

(347)

 

 

(82,684

 

 

(1,472)

 

 

(258,622

Net (loss)

 

$(13,353)

 

$(204,884)

 

$(37,778)

 

$(510,422)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.00)

 

$(0.02)

 

$(0.00)

 

$(0.04)

Weighted average number of common shares outstanding - basic and diluted

 

 

13,385,047

 

 

 

13,343,741

 

 

 

13,385,047

 

 

 

13,333,692

 

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

F-25

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 and 2022

(Unaudited)

For the Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Deficit)

 

 

(Deficit)

 

Balances at March 31, 2023

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

$12,763,126

 

 

$(14,181,267)

 

$(1,404,756)

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,353)

 

 

(13,353)

Balances at June 30, 2023

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

$12,763,126

 

 

$(14,194,620)

 

$(1,418,109)

For the Three Months Ended June 30, 2022

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2022

 

 

1,000

 

 

$1

 

 

 

13,338,642

 

 

$13,338

 

 

$12,739,970

 

 

$(13,722,405)

 

$(969,096)

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

8,000

 

 

 

8

 

 

 

3,992

 

 

 

-

 

 

 

4,000

 

Rounding

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(204,884)

 

 

(204,884)

Balances at June 30, 2022

 

 

1,000

 

 

$1

 

 

 

13,346,642

 

 

$13,346

 

 

$12,743,962

 

 

$(13,927,289)

 

$(1,169,980)

For the Six Months Ended June 30, 2023

 

 

 

 

 

 

Additional

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Deficit)

 

 

(Deficit)

 

Balances at December  31, 2022

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

$12,763,126

 

 

$(14,156,842)

 

$(1,380,331)

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,778)

 

 

(37,778)

Balances at June 30, 2023

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

$12,763,126

 

 

$(14,194,620)

 

$(1,418,109)

For the Six Months Ended June 30, 2022

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

1,000

 

 

$1

 

 

 

13,318,642

 

 

$13,318

 

 

 

-

 

 

$12,729,990

 

 

$(13,416,867)

 

$(673,558)

Common Stock issued for cash

 

 

-

 

 

 

-

 

 

 

28,000

 

 

 

28

 

 

 

-

 

 

 

13,972

 

 

 

-

 

 

 

14,000

 

Net loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(510,422)

 

 

(510,422

)

Balances at June 30, 2022

 

 

1,000

 

 

$1

 

 

 

13,346,642

 

 

$13,346

 

 

 

-

 

 

$12,743,962

 

 

$(13,927,289)

 

$(1,169,980)

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

F-26

Table of Contents

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss)

 

$(37,778)

 

$(510,422)

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

 

 

 

 

 

 

 

 

Depreciation

 

 

1,992

 

 

 

4,043

 

Loss (gain) on brokerage account

 

 

-

 

 

 

252,568

 

Loss on investment

 

 

-

 

 

 

4,616

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses – related party

 

 

(3,910)

 

 

198,900

 

Accounts payable and accrued expenses

 

 

324

 

 

 

(484)

Net cash (used in) operating activities

 

 

(39,372)

 

 

(50,779)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Cash (transfer to) withdrawn from brokerage account

 

 

0

 

 

 

37,000

 

Net cash provided by investing activities

 

 

0

 

 

 

37,000

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

    Borrowings from convertible notes payable, related party

 

 

14,600

 

 

 

0

 

Payments on convertible notes payable, related party

 

 

(2,728)

 

 

(4,812)

Borrowings from notes payable, related party

 

 

29,300

 

 

 

14,500

 

Proceeds from Sale of Stock

 

 

-

 

 

 

14,000

 

Principal payments on debt

 

 

(1,565)

 

 

(7,611)

Net cash provided by financing activities

 

 

39,607

 

 

 

16,077

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

235

 

 

 

2,298

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

2,930

 

 

 

4,320

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$3,165

 

 

$6,618

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

    Repayments on Margin loan Brokerage account

 

$-

 

 

$263,151

 

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

F-27

Table of Contents

CROWN EQUITY HOLDINGS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Nature of Business

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

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

Basis of Preparation

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

Reclassifications

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

Adoption of New Accounting Standard

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. The Company adopted ASU 2016-13 in its first quarter of fiscal 2023 and found the adoption did not have a material effect or significant impact on its financial statements.

Use of Estimates

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

Cash and Cash Equivalents

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

F-28

Table of Contents

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 the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances.

Revenue Recognition

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

1.

Identify the contract with the customer

A 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 the 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 that are being provided.

F-29

Table of Contents

 

 

Six Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2022

 

 

 

Third Party

 

 

Related Party

 

 

Total

 

 

Third Party

 

 

Related Party

 

 

Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Accounting

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

2,000

 

 

 

2,000

 

Click Based and Impressions Ads

 

 

-

 

 

 

-

 

 

 

-

 

 

 

247

 

 

 

-

 

 

 

247

 

Publishing and Distribution

 

 

-

 

 

 

-

 

 

 

-

 

 

 

310

 

 

 

150

 

 

 

460

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$-

 

 

$-

 

 

$-

 

 

$557

 

 

$2,150

 

 

$2,707

 

There was not any revenue earned during the six-months period ending June 30, 2023. 

June 30,

June 30,

2023

2022

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.

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, the current aging status of the customer accounts, and the 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, 2023 and December 31, 2022.

Risk Concentrations

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

During the six-month period ending June 30, 2023, the Company did not receive any revenues from its available services. 

General and Administrative Expenses

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2023 and 2022: Compensation expense, auto, travel and entertainment, legal and accounting, utilities, websites, office expenses, depreciation, and other administrative related expenses.

Property and Equipment

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on the disposition 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 the recoverability of an 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 the expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2023 or 2022.

F-30

Table of Contents

Basic and Diluted Net (Loss) per Share

 

 

Six Months

June 30, 2023

 

 

Six Months

June 30, 2022

 

Numerator:

 

 

 

 

 

 

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

 

$(37,778)

 

$(510,422)

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

 

$(37,778)

 

$(510,422)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

13,385,047

 

 

 

13,333,692

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.00)

 

$(0.04)

Diluted

 

$(0.00)

 

$(0.04)

 

 

Three Months

June 30, 2023

 

 

Three Months

June 30, 2022

 

Numerator:

 

 

 

 

 

 

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

 

$(13,333)

 

$(204,884)

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

 

$(13,333)

 

$(204,884)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

13,385,047

 

 

 

13,333,692

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.00)

 

$(0.04)

Diluted

 

$(0.00)

 

$(0.04)

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, 2023, and 2022. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended June 30, 2023 is 21,485,067 and June 30, 2022 was 21,400,000.

Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the "Act") was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company's statutory tax rate for fiscal 2019 and 2020 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of June 30, 2023, and December 31, 2022, 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.

F-31

Table of Contents

The Company's deferred tax assets consisted of the following as of June 30, 2023 and December 31, 2022:

 

 

June 30,

2023

 

 

Dec 31,

2022

 

Net operating loss

 

$916,586

 

 

$908,653

 

Valuation allowance

 

 

(916,586)

 

 

(908,653)

Net deferred tax asset

 

 

-

 

 

 

-

 

Uncertain Tax Position

The Company also follows 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, 2023 and December 31, 2022.

Fair Value of Financial Instruments

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

Research and Development

The Company spent no money for research and development costs during the periods ended June 30, 2023 and December 31, 2022.

Advertising Cost

The Company spent $0 on advertising during the periods ended June 30, 2023 and June 30, 2022.

NOTE 2 – GOING CONCERN

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $14,194,620 since its inception and had a working capital deficit of $1,418,624, negative cash flows from operations and limited business operations as of June 30, 2023. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

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

NOTE 3 – PROPERTY AND EQUIPMENT

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

Property consists of the following on June 30, 2023 and December 31, 2022:

 

 

June 30,

2023

 

 

Dec 31,

2022

 

Computers – 3 year estimated useful life

 

$108,622

 

 

 

108,622

 

Less – Accumulated Depreciation

 

 

(108,107)

 

 

(106,115)

Property and Equipment, net

 

$515

 

 

 

2,507

 

Depreciation has been provided over each asset's estimated useful life. Depreciation expenses were $1,992, and $4,043 for the six months ended June 30, 2023 and 2022 respectively.

F-32

Table of Contents

NOTE 4 – INVESTMENT TRADING SECURITIES AND MARGIN LOANS

The Company invested in various industries within the Nasdaq and New York stock exchange.

As of June 30, 2023, the market value of the Company’s account portfolio, consisting of stocks only, was $0.00 offset by a margin loan of $0.00. The loan is collateralized by the securities in the account and carries 7.5% annual interest rate. The Company transferred $200,000 cash from accounts to brokerage account during the 3rd quarter of 2021. The Company invested in various industries within the Nasdaq and New York stock exchange. The margin loan interest was $0.00 for the period ended June 30, 2023.

NOTE 5 – FINANCE LEASES

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

·

A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a payment of $498 in addition 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.

·

A $6,168 note from a third party for the purchase of fixed assets, bearing interest at 16.60% amortized over 36 months with payments of $219.

·

A $1,188 note from a third party for the purchase of fixed assets, bearing interest at 16.60%, amortized over 36 months with payments of $42.

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

Assets

 

June 30,

2023

 

Leased equipment under finance lease,

 

$73,883

 

less accumulated amortization

 

 

(73,368)

Net

 

$515

 

Liabilities

 

June 30,

2023

 

Obligations under finance lease (current)

 

$1,305

 

Obligations under finance lease (noncurrent)

 

 

-

 

Total

 

$1,305

 

Below is a reconciliation of leases to the financial statements.

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

Years ended December 31

Finance Leases

2023

1,395

Thereafter

-

Total

1,395

Less: Imputed Interest

(90)

Total Liability

1,305

F-33

Table of Contents

NOTE 6 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

As of June 30, 2023, and December 31, 2022, the Company had unamortized discount of $0 and $0, respectively.

The Company analyzed the convertible notes for derivatives noting none.

Name    

 

Original

Note Date

 

Due

Date

 

Interest

Rate

 

 

June 30,

2023

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

02/28/2022

 

02/28/2023

 

 

12%

 

 

4,500

 

Mohammad Sadrolashrafi

 

11/17/2022

 

11/17/2023

 

 

12%

 

 

5,000

 

Mike Zaman Irrevocable Trust

 

03/23/2023

 

03/23/2024

 

 

12%

 

 

18,000

 

Mike Zaman Irrevocable Trust

 

05/08/2023

 

05/08/2024

 

 

12%

 

 

5,800

 

Mike Zaman Irrevocable Trust

 

06/02/2023

 

06/02/2024

 

 

12%

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

06/20/2023

 

06/20/2024

 

 

12%

 

 

3,000

 

Total Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

38,800

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

Willy A. Saint-Hilaire

 

04/06/2021

 

04/06/2022

 

 

12%

 

 

-

 

Willy A. Saint-Hilaire   

 

04/16/2021

 

04/16/2022

 

 

12%

 

 

-

 

Willy A. Saint-Hilaire   

 

04/21/2021

 

04/21/2022

 

 

12%

 

 

800

 

Willy A. Saint-Hilaire

 

04/30/2021

 

04/30/2022

 

 

15.15%

 

 

2,750

 

Willy A. Saint-Hilaire

 

05/04/2021

 

05/04/2022

 

 

15.15%

 

 

750

 

Jamie Hadfield

 

04/07/2022

 

04/07/2023

 

 

12%

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

12/25/2022

 

12/25/2023

 

 

12%

 

 

2,000

 

Mike Zaman

 

01/11/2023

 

01/11/2024

 

 

12%

 

 

1,100

 

Mike Zaman Irrevocable Trust

 

01/23/2023

 

01/23/2024

 

 

12%

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

01/31/2023

 

01/31/2024

 

 

12%

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

02/14/2023

 

02/14/2024

 

 

12%

 

 

10,000

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

30,900

 

Less: Debt Discount

 

 

 

 

 

 

 

 

 

 

0

 

Convertible Notes Payable, net of Discount - Related Party   

 

 

 

 

 

 

 

 

 

 

30,900

 

The conversion rate is one share of common stock at $0.50 per share, per each principal dollar amount owed.

Willy A. Saint-Hilaire

On April 6, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $2,500 at an interest rate of 12%. As of December 31, 2022, the principal balance on this note was $900. On January 18, 2023 a payment of $400 was made, and on February 21, 2023 a payment in the amount of $500 was made. As of June 30, 2023, the principal balance on this note was $0.00.

On April 16, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $1,518 at an interest rate of 12%.  As of December 31, 2022, the principal balance on this note was $1,518. On March 21, 2023 a payment in the amount of $418.20 was made. On April 20, 2023 a payment in the amount of $400 was made in addition to a payment on May 21, 2023 of $500, and $200 paid on June 20, 2023. As of June 30, 2023, the principal balance on this note was $0.00.

F-34

Table of Contents

On April 21, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $1,109.83 at an interest rate of 12%. On June 20, 2023, a payment of $309.83 was made. As of June 30, 2023, the principal balance on this note was $800.

On April 30, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $2,750.00 at an interest rate of 15.15%. As of June 30, 2023, the principal balance on this note was $2,750.

On May 4, 2021, the Company entered into a convertible promissory note with Willy A. Saint-Hilaire in the amount of $750 at an interest rate of 15.15%.  As of June 30, 2023, the principal balance on this note was $750.

On February 28, 2022, the Company entered into a promissory note with Willy A. Saint-Hilaire in the amount of $4,500 at an interest rate of 0 %. On September 15, 2022, the interest for the note was amended to 12%. As of June 30, 2023, the principal balance on this note was $4,500.

Mohammad Sadrolashrafi

On November 17, 2022, the Company entered into a promissory note with Mohammad Sadrolashrafi in the amount of $5,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $5,000.

Jamie Hadfield

On April 7, 2022, the Company entered into a convertible promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $10,000.

Mike Zaman Irrevocable Trust

On December 25, 2022, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $2,000.

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $2,500.

On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $1,000.

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $10,000.

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $18,000.

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $5,800.

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $2,500.

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $3,000.

Mike Zaman

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $1,100.

F-35

Table of Contents

NOTE 7 – COMMITMENTS AND CONTINGENCIES

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

The Company agreed to pay the automobile leases of $395 and $278 a month, on a month-to-month basis and can be cancelled at any time but expects to continue lease payments for the full 2023 year.

The Company entered into an agreement, effective January 1, 2020, to pay Arnulfo Saucedo-Bardan $5,000 per month for website development, design maintenance and other IT services and solutions.  On June 30, 2022 the Company owed Mr. Saucedo-Bardan $130,700. As of June 30, 2023, Arnulfo is owed $140,090.

NOTE 8 – RELATED PARTY TRANSACTIONS

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

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $1,100.

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $2,500.

On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $1,000.

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $10,000.

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $18,000.

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $5,800.

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $2,500.

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of June 30, 2023, the principal balance on this note was $3,000.

The Company periodically advanced operating funds from related parties with convertible notes payable. As of June 30, 2023, total convertible notes and non-convertible notes from related parties were $38,800 and $30,900 respectively. The Company periodically advanced funds to cover account payables by direct payment of the account payables from related parties.

NOTE 9 – STOCK HOLDERS' DEFICIT

Common Stock

During the six months ending June 30, 2023, the Company issued the following:

·

The Company did not issue any shares of common stock.

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, 2023.

F-36

Table of Contents

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, 2023, the Company has 1,000 shares of Series A Preferred Stock outstanding.

Warrants Issued

 

 

 

 

 

 

 

 

 

 

 

 

 

The following is a summary of the Company's warrant activity during the six-month periods ended June 30, 2023 and 2022:

 

 

 

 

 

 

 

 

 

Number of

 

 

Exercise

 

 

 

Warrants

 

 

Price

 

Balance, January 1, 2023

 

 

21,400,000

 

 

$0.60

 

Issued

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Balance, June 30, 2023

 

 

21,400,000

 

 

$0.60

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Exercise

 

 

 

Warrants

 

 

Price

 

Balance, January 1, 2022

 

 

21,400,000

 

 

$0.60

 

Issued

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2022

 

 

21,400,000

 

 

$0.60

 

NOTE 10 – INCOME TAXES

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

The Company did not have taxable income during 2022.

The Company's deferred tax assets consisted of the following as of June 30, 2023, and December 31, 2022:

 

 

June 31, 

2023

 

 

December 31,

2022

 

Net operating loss

 

$916,586

 

 

$908,653

 

Valuation allowance

 

 

(916,586)

 

 

(908,653)

Net deferred tax asset

 

$-

 

 

$-

 

As of June 30, 2023, and December 31, 2022, the Company's accumulated net operating loss carry forward was approximately $4,364,697, and $4,326,920 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%.

 

F-37

Table of Contents

NOTE 11 – SUBSEQUENT EVENTS

On October 5, 2020, Sameh Shenouda purchased 3,000July 12, 2023, Michael Sheikh 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 $1.00 per share at the purchaseexercise price of $3,000.$0.60 per share.

 

On October 6, 2020, Nasrin MontazerJuly 18, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $15,000 at an interest rate of 12%.

On August 01, 2023, Dana Salzarulo 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 August 04, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $12,000 at an interest rate of 12%.

On August 07, 2023, 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 October 13, 2020, Jagjit Dhaliwal was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

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

 
F-41F-38

Table of Contents
Table of Contents

  

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

 

Item 1.13. Other Expenses of Issuance and Distribution

All expenses, including all allocated general administrative and overhead expenses, related to the offering or the organization of the Company will be borne by the Company. Neither the company nor any shareholder has paid any premium on any policy to insure or indemnify directors or officers against any liabilities arising from the registration, offering, or sale of these securities.

The following table indicates the expenses to be incurred in connection with the offering described in this registration statement. These expenses amounts are estimated and based on the minimum subscription amount.

SEC Filing Fee

 

$4,700.00

 

Printing and Engraving Expenses

 

 

200,000.00

 

Legal Fees and Expenses

 

 

15,000.00

 

EDGAR Fees

 

 

3,000.00

 

Accounting Fees and Expenses

 

 

12,000.00

 

Miscellaneous

 

 

10,000.00

 

TOTAL

 

$244,700.00

 

As more shares are sold, we anticipate legal fees to increase due to the likelihood of investors being from other states which could result in state blue sky securities filings. Although our legal fees are not contingent on the number of shares sold, it is likely that the legal fees will increase as our attorney will charge us for these filings. Also, as more shares are sold, our printing expenses will increase.

Item 14. Indemnification of Directors and Officers

 

Our certificate of incorporation provides that the liability of our officers and directors for monetary damages shall be eliminated to the fullest extent permissible under Nevada Revised Statutes, which includes elimination of liability for monetary damages for defense of civil or criminal actions. The provision does not affect a director’s responsibilities under any other laws, such as the federal securities laws or state or federal environmental laws.

 

Article Ten and Eleven of our Articles of Incorporation states:

 

Article X: No contract or other transaction between the corporation and any person, firm, association or corporation and no act of the corporation shall, in the absence of fraud, be invalidated, or in any way affected by the fact that any of the directors of the corporation are pecuniarily or otherwise interested, directly or indirectly, in such contract, transaction or act, or are related to or interested in such person, firm, association or corporation as a director, stockholder, officer, employee, member or otherwise. Any director so interested or related who is present at any meeting of the Board of Directors or committee of directors at which action on any such contract, transaction or act is taken may be counted in determining the presence of a quorum at such meeting and may vote at such meeting with respect to such contract, transaction or act with like force and effect as if he were not so interested or related. No director so interested or related shall, because of such interest or relationship, be disqualified from holding his office or be liable to the corporation or to any stockholder or creditor thereof for any loss incurred by the corporation under or by reason of such contract, transaction or act, or be accountable for any gains or profits he may have realized therein.

 

Article XI: The business and affairs of the corporation shall be managed by or under the direction of the Board of Directors. In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or repeal the Bylaws of the corporation; provided, however, that the grant of such authority shall not divest the stockholders of the power, nor limit their power to adopt, amend or repeal the Bylaws. In addition to the authority and powers hereinabove or by statute conferred upon the directors, the directors are hereby authorized and empowered to exercise all such powers and do all such acts and things as may be exercised or done by the corporation, subject to the provisions of the General Corporation Law, this Certificate of Incorporation and any Bylaws adopted by the stockholders of the corporation; provided, however, that no Bylaws hereafter adopted by the stockholders of the corporation shall invalidate any prior act of the directors that would have been valid if such Bylaws had not been adopted.

 

 
4034

Table of Contents
Table of Contents

 

Item 2. Other Expenses15.Recent Sales of Issuance and Distribution
Unregistered Securities

 

All expenses, including all allocated general administrativeSet forth below is information regarding restricted shares of common stock granted by us, as well as information regarding the restricted shares of common stock issued for convertible note payable, services provided, and overhead expenses, relatedpurchases by the Company within the past three years that were not registered under the Securities Act. Also included, is the consideration, if any, received by us for such shares, purchases, convertible notes, and information relating to the offering or the organizationsection of the Securities Act, or rule of the Securities and Exchange Commission, under which exemption from registration was claimed.

Service Rendered

During the periods ending June 30, 2023, and December 31, 2022, the Company will be bornehad not issued any common stock for services rendered.

During the period ending December 31, 2021, the Company issued 16,889 restricted shares of common stock for services rendered.

During the period ending December 31, 2020, the Company issued 599,928 restricted shares of common stock for services rendered.

Conversion of Notes/Debt Payables

During the periods ending June 30, 2023, and December 31, 2022, the Company had not issued any shares of common stock in reference to the conversion of a note or debt payable.

During the period ending December 31, 2022, the Company issued 18,405 restricted shares of common stock in reference to the conversion of a note or debt payable.

During the period ending December 31, 2021, the Company did not issue any shares of common stock in reference to the conversion of a note or debt payable.

During the period ending December 31, 2020, the Company issued 60,159 restricted shares of common stock in reference to the conversion of a note or debt payable.

Purchases of Common Stock

During the period ending June 30, 2023, the Company did not issue any shares of common stock for purchase.

During the period ending December 31, 2022, the Company issued 20,000 restricted shares of common stock purchased by two executive officers.

During the Company. Neitherperiod ending December 31, 2022, the company nor any shareholder has paid any premium on any policy to insure or indemnify directors or officers against any liabilities arising fromCompany issued 28,000 restricted shares of our common stock purchased by a third-party investor.

During the registration, offering, or saleperiod ending December 31, 2021, the Company issued 400,000 restricted shares of these securities.our common stock purchased by an executive officer.

During the period ending December 31, 2020, the Company issued 110,000 restricted shares of our common stock purchased by a related party.

During the period ending December 31, 2020, the Company issued 365,000 restricted shares of our common stock purchased by a third-party investor.

35

Table of Contents

Item 16. Exhibits and Financial Statement Schedules

 

The following table sets forth a reasonable estimated itemized statement of all anticipated out-of-pocket and overhead expenses (subject to future contingencies) to be incurred in connection with the distributionExhibits are filed as part of the securities being registered, reflecting the minimum and maximum subscription amounts.

SEC Filing Fee

 

$5,455.00

 

Printing and Engraving Expenses

 

 

200,000.00

 

Legal Fees and Expenses

 

 

15,000.00

 

Edgar Fees

 

 

3,000.00

 

Accounting Fees and Expenses

 

 

12,000.00

 

Blue Sky Fees and Expenses

 

 

20,000.00

 

Miscellaneous

 

 

10,000.00

 

TOTAL

 

$265,455.00

 

As more shares are sold, we anticipate legal fees to increase due to the likelihood of investors being from other states which could result in state blue sky securities filings. Although our legal fees are not contingent on the number of shares sold, it is likely that the legal fees will increase as our attorney will charge us for these filings. Also, as more shares are sold, our printing expenses will increase.Registration Statement:

 

Exhibit No.

41

Identification of Exhibit

3.1

Restated Articles of Incorporation

Table3.2

By Laws

4.1

Specimen Stock Certificate

5.1

Opinion and Consent of ContentsArnold F. Sock Esquire

10.1

Form of Subscription Agreement

23.1

Consent of M&K CPAS, PLLC

107

Filing Fee Tables

Item 3.17. Undertakings

 

1(a) Rule 415 Offering. If the small business issuer is registering securities under Rule 415 of the Securities Act (230.415 of this chapter), that the small business issuer will:

 

(1) File, during any period in which it offers or sells securities, a post-effective amendment to this Registration Statement to:

 

(i) Include any prospectus required by section 10(a)(3) of the Securities Act; and

 

(ii) Reflect in the prospectus any facts or events which, individually or together, represent a fundamental change in the information in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

 

(iii) Include any additional or changed material information on the plan of distribution.

 

(2) For determining liability under the Securities Act, treat each post-effective amendment as a new registration statement of the securities offered, and the offering of the securities at that time to be the initial bona fide offering.

 

(3) File a post-effective amendment to remove from registration any of the securities that remain unsold at the end of the offering.

 

(4) For determining liability of the undersigned small business issuer under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned small business issuer undertakes that in a primary offering of securities of the undersigned small business issuer pursuant to his registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned small business issuer will be a seller to the purchaser and will be considered to offer or sell such securities to purchaser:

 

(i) Any preliminary prospectus or prospectus of the undersigned small business issuer relating to the offering required to be filed pursuant to Rule 424 (230.424 of this chapter);

 

(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned small business issuer or used or referred to by the undersigned small business issuer;

 

(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned small business issuer or its securities provided by or on behalf of the undersigned small business issuer; and

36

Table of Contents

 

(iv) Any other communication that is an offer in the offering made by the undersigned small business issuer to the purchaser.

 

Registrant hereby undertakes to request acceleration of the effective date of the registration statement under Rule 461 of the Securities Act:

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.

 

In the event that a claim for indemnification against such liabilities (other than payment by the small business issuer of expenses incurred or paid by a director, officer or controlling person of the small business issuer in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the small business issuer will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed by the Securities Act and will be governed by the final adjudication of such issue.

 

 
4237

Table of Contents

Item 4. Exhibits

The following Exhibits are filed as part of the Registration Statement:

Exhibit No.

Identification of Exhibit

2.1

- Restated ArticlesTable of IncorporationContents

2.2

- By Laws

3.1

- Specimen Stock Certificate

4.1

- Form of Subscription Agreement

23.1

- Consent of M&K CPAS, PLLC

43

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Las Vegas, Nevada on February 12, 2021.authorized.

 

Date: February 12, 2021September 25, 2023

By:

/s/ Mike Zaman

 

 

 

Mike Zaman, Director/CEO

 

 

 

 

 

Date: February 12, 2021September 25, 2023

By:

/s/ Kenneth Bosket

 

 

 

Kenneth Bosket, Director/CFO

 

 

 

 

 

Date: February 12, 2021September 25, 2023

By:

/s/ Montse Zaman

 

 

 

Montse Zaman, Director/Secretary

 

 

 

 

 

Date: February 12, 2021September 25, 2023

By:

/s/ Malcolm ZimanJamie Hadfield

 

 

 

Macolm Ziman,Jamie Hadfield, Director/VP FinanceMarketing/Merger and Acquisition Officer

 

 

 

 

 

Date: February 12, 2021September 25, 2023

By:

/s/ Mohammad Sadrolashrafi

 

 

 

Mohammad Sadrolashrafi, Director/VP Operations

 

 

 

 

 

Date: February 12, 2021September 25, 2023

By:

/s/ Shahram Khial

Shahram Khial, Director/VP Marketing

 

Shahram Khial, Director/VP Marketing

 

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities indicated, on February 12, 2021.September 25, 2023.

 

Date: February 12, 2021September 25, 2023

By:

/s/ Mike Zaman

 

Mike Zaman, Director/CEO
Date: February 12, 2021/s/ Kenneth Bosket

 

 

Kenneth Bosket,Mike Zaman, Director/CFOCEO

 

Date: September 25, 2023

/s/ Kenneth Bosket

Kenneth Bosket, Director/CFO

 

 
4438