Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Aug. 06, 2018 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | Crown Equity Holdings, Inc. | ||
Entity Central Index Key | 1,103,833 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 286,173 | ||
Entity Common Stock, Shares Outstanding | 11,799,389 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 10,563 | $ 2,448 |
Total Current Assets | 10,563 | 2,448 |
Total Assets | 10,563 | 2,448 |
Current liabilities | ||
Accounts payable and accrued expenses | 168,721 | 187,567 |
Accounts payable to related party | 10,583 | 5,026 |
Notes payable to related parties | 6,116 | 23,674 |
Notes payable | 9,500 | 11,500 |
Total Current Liabilities | 194,920 | 227,767 |
Stockholders' deficit | ||
Preferred Stock | ||
Common Stock, 450,000,000 authorized at $0.001 par value; 11,341,831 and 10,904,564 shares issued and outstanding at December 31, 2016 and 2015 | 11,342 | 10,905 |
Additional paid-in capital | 10,877,369 | 10,335,890 |
Accumulated deficit | (11,073,069) | (10,572,114) |
Total stockholders' deficit | (184,357) | (225,319) |
Total liabilities and stockholders' deficit | 10,563 | 2,448 |
Series A Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred Stock | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' deficit | ||
Preferred stock, par value (in dollars per share) | $ .001 | $ .001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 11,341,831 | 10,904,564 |
Common stock, shares outstanding | 11,341,831 | 10,904,564 |
Series A Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 1,000 | 0 |
Preferred stock, shares outstanding | 1,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Operations | ||
Revenues | $ 2,327 | $ 1,916 |
Operating expenses | ||
General and administrative expense | 442,173 | 321,051 |
Depreciation | 618 | |
Total Operating Expenses | 442,173 | 321,669 |
Loss from operations | (439,846) | (319,753) |
Other income (expense) | ||
Interest expense | (47,811) | (4,746) |
Other income | 178 | |
Loss on extinguishment of debt | (19,443) | (58,612) |
Gain on sale of subsidiaries | 5,967 | |
Total Other Expense | (61,109) | (63,358) |
Net loss | $ (500,955) | $ (383,111) |
Basic and Diluted net loss per common share | ||
Basic and diluted net loss per common share | $ (0.04) | $ (0.03) |
Weighted average number of common shares outstanding basic and diluted | 11,150,794 | 10,716,486 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2014 | 10,566,969 | ||||
Beginning Balance, Amount at Dec. 31, 2014 | $ 10,567 | $ 9,760,054 | $ (10,189,003) | $ (418,382) | |
Common stock issued for cash, Shares | 22,081 | ||||
Common stock issued for cash, Amount | $ 22 | 22,059 | 22,081 | ||
Common stock issued for services, Shares | 152,496 | ||||
Common stock issued for services, Amount | $ 152 | 240,170 | 240,322 | ||
Common stock issued for settlement of accounts payable, Shares | 19,495 | ||||
Common stock issued for settlement of accounts payable, Amount | $ 20 | 23,374 | 23,394 | ||
Conversion of debt to common stock, Shares | 143,523 | ||||
Conversion of debt to common stock, Amount | $ 144 | 178,092 | 178,236 | ||
Forgiveness of related party debt | 112,141 | 112,141 | |||
Net loss | (383,111) | (383,111) | |||
Ending Balance, Shares at Dec. 31, 2015 | 10,904,564 | ||||
Ending Balance, Amount at Dec. 31, 2015 | $ 10,905 | 10,335,890 | (10,572,114) | (225,319) | |
Common stock issued for cash, Shares | 218,267 | ||||
Common stock issued for cash, Amount | $ 218 | 143,548 | 143,766 | ||
Common stock issued for services, Shares | 100,000 | ||||
Common stock issued for services, Amount | $ 100 | 274,900 | 275,000 | ||
Forgiveness of related party debt | |||||
Common stock issued for settlement of debt, Shares | 119,000 | ||||
Common stock issued for settlement of debt, Amount | $ 119 | 79,031 | 79,150 | ||
Preferred stock issued for services, Shares | 1,000 | ||||
Preferred stock issued for services, Amount | $ 10,000 | 1 | |||
Debt discount due to beneficial conversion feature | 44,000 | ||||
Net loss | (500,955) | (500,955) | |||
Ending Balance, Shares at Dec. 31, 2016 | 1,000 | 11,341,831 | |||
Ending Balance, Amount at Dec. 31, 2016 | $ 10,000 | $ 11,342 | $ 10,887,369 | $ (11,073,069) | $ (184,357) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (500,955) | $ (383,111) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 618 | |
Gain on sale of subsidiaries | 5,967 | |
Common stock issued for services | 275,000 | 240,322 |
Preferred stock issued for services | 1 | |
Loss on settlement of debt | 19,443 | 58,612 |
Amortization of beneficial conversion features | 44,000 | 58,612 |
Changes in operating assets and liabilities | ||
Accounts payable and accrued expenses | (14,206) | 15,653 |
Accrued expenses - related party | 5,557 | |
Net cash used in operating activities | (165,193) | (67,906) |
Cash flows from investing activities | ||
Proceeds from sale of subsidiaries | 100 | |
Net cash provided by investing activities | 100 | |
Cash flows from financing activities | ||
Proceeds from convertible notes payable | 17,000 | 22,983 |
Proceeds from sale of stock | 143,766 | 22,081 |
Proceeds from notes payable - related party | 22,921 | |
Proceeds from convertible notes payable - related party | 30,000 | |
Payments on notes payable - related party | (17,558) | |
Net cash provided by financing activities | 173,208 | 67,985 |
Net increase in cash | 8,115 | 79 |
Cash, beginning of period | 2,448 | 2,369 |
Cash, end of period | 10,563 | 2,448 |
SUPPLEMENTAL DISCLOSURE: | ||
Interest paid | ||
Income taxes paid | ||
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Common stock issued for settlement of debt and interest | 2,000 | |
Common stock issued for settlement of accounts payable | ||
Common stock issued for debt and interest conversion | 57,000 | |
Forgiveness of debt related party | 112,141 | |
Debt issued for settlement payment made by related party on behalf of the Company | 10,000 | |
Debt discount resulting from convertible notes | $ 44,000 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | Nature of Business Crown Equity Holdings Inc. ("Crown Equity", “our”, “we”, 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. In 2010, the Company formed two subsidiaries Crown Tele Services, Inc. and CRWE Direct, Inc. Crown Tele Services Inc. was formed to provide voice over IP messaging at a competitive price to other competitors and CRWE Direct was formed to provide its client with direct sales of products. In 2011, the Company formed a wholly owned subsidiary CRWE Real Estate Inc. CRWE Real Estate Inc. was formed to 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 Gain on sale of subsidiaries 5,967 Principles of Consolidation The consolidated financial statements include the financial information of Crown Equity Holdings, Inc. At the end of 2016, the following subsidiaries were divested and are not included in the financial statements: Crown Tele Services Inc., CRWE Direct Inc. and CRWE Real Estate, Inc. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Cash and Cash Equivalents Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be 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 FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the Company's common stock for common share issuances. Revenue Recognition Crown Equity's revenue is recognized pursuant to ASC 605 "Revenue Recognition." The Company recognizes its revenue from services as those services are performed. Revenue recognition is limited to the amount that is not contingent upon delivery of any future service or meeting other specified performance conditions. The Company recognizes its revenue from the display of impression and click based ads, as well as from its publishing distribution service and domain name registration products and recognizes revenue when the service is provided. Services are normally completed as described on the sales invoice issued for the service provided. In most cases the services is a one-time completion and recognized when the service is completed. 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 was no allowance for doubtful accounts as of December 31, 2016 and 2015. Concentrations In 2016, the Company’s revenues received were based on the company’s consulting services which were (100%) from one customer and from the displaying of click based and impressions ads located on the company’s websites; name registration from the company’s domain website, and the company’s news and press release publishing and distribution services. In 2015, the Company’s revenues were generated from the display of impression and click based ads, as well as from its publishing distribution service and domain name registration product. General and Administrative Expenses Crown Equity's general and administrative expenses consisted of the following types of expenses during 2016 and 2015: 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, which are 3 to 5 years. Depreciation expense during the years ended December 31, 2016 and 2015 totaled $0 and $618, respectively. 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 estimated based upon either discounted cash flow analysis or estimated salvage value. No impairment charge was recorded in 2016 or 2015. Basic and Diluted Net Loss per Share Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. They include the dilutive effect of common stock equivalents in years with net income. Basic and diluted net loss per share are the same due to the absence of common stock equivalents. Income Taxes 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. Crown Equity provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not. 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, 2016 and 2015. Fair Value of Financial Instruments The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted 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: Level 1 Inputs Level 2 Inputs Level 3 Inputs The Company's financial instruments consist of cash and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Recently Issued Accounting Pronouncements Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 2 - GOING CONCERN | As shown in the accompanying consolidated financial statements, Crown Equity has historically suffered losses from operations and had a working capital deficit as of December 31, 2016. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern. 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. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 3 - NOTES PAYABLE | During 2016 the Company borrowed an aggregate $57,000 under the following transactions: · During February 2016, the Company entered into a one year, convertible at $0.50/share, 12% interest bearing note for $40,000 with a related party. The note was $30,000 cash and $10,000 in expense paid on behalf of the Company. This note was converted in full during the year in accordance with the terms. · On January 6, 2016, the Company entered into a one year, convertible at $0.50/share, 12% interest bearing note for $1,000 with a non-related party. This note was converted in full during the year. · On January 25, 2016, the Company entered into a one year, convertible at $0.50/share, 12% interest bearing note for $1,000 with a non-related party. This note was converted in full during the year. · On January 14, 2016, the Company entered into a one year, convertible at $0.50/share, 12% interest bearing note for $15,000 with a non-related party. This note was converted in full during the year. The Company analyzed the 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 $44,000. The notes were converted in full as of December 31, 2016 and the debt discount was expensed as interest during the year ended December 31, 2016. The Company paid back a total of $17,558 in related party note payable during the year and converted $40,000 of related party convertible notes into common stock at $0.50/share. The balance due on related party notes is $6,116 which is due on demand, has 12% interest, and is in default. During 2016, the Company converted $19,000 of third party note payable. The balance due on third party notes payable is $9,500 which is unsecured, bears no interest, and is due on demand. During 2015 the Company borrowed an aggregate $22,983 under the following third party transactions: · A note due on 12/18/16, convertible at $0.50, 12% interest bearing note for $1,000 from a non-related party. · A note due on 1/26/16, convertible at $0.50, 12% interest bearing note for $983 from a non-related party. · A note due on 1/6/17, convertible at $0.50, 12% interest bearing note for $20,000 from a non-related party. · A note due on 7/6/16, convertible at $0.50, 12% interest bearing note for $1,000 from a non-related party. The Company analyzed the notes for derivatives noting none. The Company evaluated these convertible notes for beneficial conversion features at December 31, 2015 and concluded that there were none as no convertible terms had been agreed to at December 31, 2015. During 2015, third party debt of $59,433 was settled through the issuance of common stock resulting in loss of $42,952. As of December 31, 2016 and 2015, the aggregate outstanding principal on third party notes payable was $9,500 and $11,500, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 4 - 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. As of December 31, 2016 and 2015, the Company had a payable of $10,583 and $5,026 respectively to Montse Zaman, director. The payable is unsecured, bears no interest and due on demand. As of December 31, 2016 and 2015, the aggregate outstanding balance of notes payable to related parties was $6,116 and $23,674, respectively consisting of loans described in Note 3. This note is in default. During 2016, the Company issued 1,000 shares of Series A preferred stock valued at $1 to the President for services. These shares carry the right to elect the majority of the board of directors. The holder of these Series A Preferred shares has 110% of outstanding common shares voting power in electing the majority of the board members. During 2015, the Company made additional borrowings of $230 under a related party note and $1,000 of related party loans and interest of $373 was converted to 1,373 common shares resulting in a loss of $275. The remaining $230 was paid back during the year ended December 31, 2016. During 2014, a related party of the Company, made advances due from the Company of $4,000. The debt is unsecured, carries 12% interest rate and is due on demand. The debt was converted in full into common shares of the Company during the year ended December 31, 2016. During the year ended December 31, 2016, the Company paid an aggregate of $5,830 of expenses on behalf of two related entities with common officers and directors. The Company holds investments in these entities. $1,800 was paid back during the year which was treated as a reduction of expenses previously paid. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 5 - STOCKHOLDERS' EQUITY | On December 30, 2016, the company’s Amended and Restated Certificate of Incorporation that changed its authorized shares of common stock to 450,000,000 shares and preferred stock to 20,001,000 shares. The Company recorded $44,000 as debt discount on convertible notes that was added to additional paid-in capital. In December, 2007, the Company adopted the Crown Equity Holdings, Inc. Consultants and Employees Stock Plan for 2007. Under the Plan, 10,000,000 shares are reserved for issuance to employees, officers, directors, advisors and consultants. During 2016, the Company issued 1,000 shares of Series A preferred stock to the President for services. These shares carry the right to elect the majority of the board of directors. These shares carry the right to elect the majority of the board of directors The holder of these Series A Preferred shares has 110% of outstanding common shares voting power in electing the majority of the board members. During 2016, the Company issued: · 100,000 common shares for services with a value of $275,000 · 119,000 common shares for settlement of interest and debt with a fair value of $79,150 for the settlement of $59,707 in debt and interest resulting in a loss of $19,443 · and 218,267 common shares issued for cash of $143,766 During 2015, the Company issued: · 22,081 common shares issued for cash proceeds of $22,081, · 152,496 common shares issued for services with a value of $240,322, · 143,523 shares issued with fair value of $178,236 for the settlement of $123,523 in debt and interest resulting in a loss of $54,713, · and 19,495 shares issued with fair value of $23,394 for the settlement of $19,495 in accounts payable resulting in a loss of $3,899. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 6 - 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 2016 or 2015. The Company's deferred tax assets consisted of the following as of December 31, 2016 and 2015: 2016 2015 Net operating loss $ 559,054 $ 530,300 Valuation allowance (559,054 ) (530,300 ) Net deferred tax asset $ - $ - As of December 31, 2016, the Company's accumulated net operating loss carry forward was approximately $1,663,924 and will begin to expire in the year 2032. Federal income tax returns have not been examined and reported upon by the Internal Revenue Service; returns of the years since 2014 are still open. The 2017 Act reduces the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. For net operating losses (NOLs) arising after December 31, 2017, the 2017 Act limits a taxpayer’s ability to utilize NOL carryforwards to 80% of taxable income. In addition, NOLs arising after 2017 can be carried forward indefinitely, but carryback is generally prohibited. NOLs generated in tax years beginning before January 1, 2018 will not be subject to the taxable income limitation. The 2017 Act would generally eliminate the carryback of all NOLs arising in a tax year ending after 2017 and instead would permit all such NOLs to be carried forward indefinitely. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NOTE 7 - SUBSEQUENT EVENTS | Subsequent to December 31, 2016, the Company issued total common shares of 457,558 which are broken down as follows: · 84,000 shares were issued for cash proceeds of $42,000 and · 26,308 shares were issued for the settlement of a promissory note and interest of $13,154 and · 47,250 shares were issued for services · 300,000 shares issued for services to the chairman of the board Promissory notes the Company entered subsequent to 12/31/16: · During 2017, the following promissory notes were entered into subsequent to 12/31/16: all notes have the following terms: 12% annual interest, due within one year and are convertible upon request from the holder. 1.) two notes with Arnulfo Saucedo-Bardan for $620 and $1,240; 2.) one note from Mike Zaman for $2,310; 3.) one note from Chris Knudsen for $1,031; 4.) one note from Kevin Wiltz for $1,500; 5.) one note from Richard W. LeAndro for $3,000; 6.) one note from Montse Zaman for $2,300; · During 2018, the following promissory notes were entered into subsequent to 12/31/16: all notes have the following terms: 12% annual interest, due within one year and are convertible upon request from the holder. 1.) one note from Richard W. LeAndro for $3,000; 2.) two notes from Montse Zaman for $1,785 and $1,460; 3.) one note from Mike Zaman for $450. On June 13, 2017 the following executive changes occurred: · Accepted the resignations of Rudy Chacon as a Director and Vice President, and Steven Onoue as a Director. · Appointed Brian P. Colvin as a Director and Vice President, as well as appointed Deborah P. Robinson as a Director and Chief Marketing Officer. On June 21, 2017 the following SEC filing occurred: · The company filed Notice of Exempt Offering of Securities in reference to its Private Placement Memorandum. On November 20, 2017 and December 19, 2017 the following two leases occurred respectively: · The company leased equipment and devices from Dell in reference to servers to manage programs and network resources. Terms: 11/20/17 • Dell Financial Services • Equipment lease - Dell server products • Monthly rent payment: $1,186 • Lease term: 60 months • End of lease purchase option $1. 12/19/17 • Lessor - Dell Financial Services • Equipment lease - Dell server products • Equipment total: $1,505 • Monthly rent payment: $54 • Lease term: 36 months • End of lease purchase option $1. On February 20, 2018: · The company sold its “Doing Business As” company known as (iB2BGlobal.com) to American Video Teleconferencing, Corp. (AVOT), which included maintenance and maintaining the “iB2BGlobal.com” online site within the Crown Equity Holdings server in exchange for 40,000,000 restricted shares of “AVOT” stock. On June 26, 2018 the following director changes occurred: · Appointed Steve Cantor as a Director and Chairman of Board. Mike Zaman resigned as Chairman of Board. |
NATURE OF BUSINESS AND SUMMAR14
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Nature Of Business And Summary Of Accounting Policies | |
Nature of Business | Crown Equity Holdings Inc. ("Crown Equity", “our”, “we”, 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. In 2010, the Company formed two subsidiaries Crown Tele Services, Inc. and CRWE Direct, Inc. Crown Tele Services Inc. was formed to provide voice over IP messaging at a competitive price to other competitors and CRWE Direct was formed to provide its client with direct sales of products. In 2011, the Company formed a wholly owned subsidiary CRWE Real Estate Inc. CRWE Real Estate Inc. was formed to 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 Gain on sale of subsidiaries 5,967 |
Principles of Consolidation | The consolidated financial statements include the financial information of Crown Equity Holdings, Inc. At the end of 2016, the following subsidiaries were divested and are not included in the financial statements: Crown Tele Services Inc., CRWE Direct Inc. and CRWE Real Estate, Inc. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be 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 FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the Company's common stock for common share issuances. |
Revenue Recognition | Crown Equity's revenue is recognized pursuant to ASC 605 "Revenue Recognition." The Company recognizes its revenue from services as those services are performed. Revenue recognition is limited to the amount that is not contingent upon delivery of any future service or meeting other specified performance conditions. The Company recognizes its revenue from the display of impression and click based ads, as well as from its publishing distribution service and domain name registration products and recognizes revenue when the service is provided. Services are normally completed as described on the sales invoice issued for the service provided. In most cases the services is a one-time completion and recognized when the service is completed. |
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 was no allowance for doubtful accounts as of December 31, 2016 and 2015. |
Concentrations | In 2016, the Company’s revenues received were based on the company’s consulting services which were (100%) from one customer and from the displaying of click based and impressions ads located on the company’s websites; name registration from the company’s domain website, and the company’s news and press release publishing and distribution services. In 2015, the Company’s revenues were generated from the display of impression and click based ads, as well as from its publishing distribution service and domain name registration product. |
General and Administrative Expenses | Crown Equity's general and administrative expenses consisted of the following types of expenses during 2016 and 2015: 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, which are 3 to 5 years. Depreciation expense during the years ended December 31, 2016 and 2015 totaled $0 and $618, respectively. |
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 estimated based upon either discounted cash flow analysis or estimated salvage value. No impairment charge was recorded in 2016 or 2015. |
Basic and Diluted Net Loss per Share | Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. They include the dilutive effect of common stock equivalents in years with net income. Basic and diluted net loss per share are the same due to the absence of common stock equivalents. |
Income Taxes | 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. Crown Equity provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not. |
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, 2016 and 2015. |
Fair Value of Financial Instruments | The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted 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: Level 1 Inputs Level 2 Inputs Level 3 Inputs The Company's financial instruments consist of cash and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. |
Reclassifications | Certain prior period amounts have been reclassified to conform to current period presentation. |
Recently Issued Accounting Pronouncements | Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows. |
NATURE OF BUSINESS AND SUMMAR15
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Nature Of Business And Summary Of Accounting Policies Tables Abstract | |
Sale of subsidiaries | Assets - Intercompany - Total Assets sold - Cash 100 Payable assumed by buyer 5,867 Total Consideration 5,967 Gain on sale of subsidiaries 5,967 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes Tables Abstract | |
Schedule of deferred tax assets | 2016 2015 Net operating loss $ 559,054 $ 530,300 Valuation allowance (559,054 ) (530,300 ) Net deferred tax asset $ - $ - |
NATURE OF BUSINESS AND SUMMAR17
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Gain on sale of subsidiaries | $ 5,967 | |
Subsidiaries [Member] | ||
Assets | ||
Intercompany | ||
Total Assets sold | ||
Cash | 100 | |
Payable assumed by buyer | 5,867 | |
Total Consideration | 5,967 | |
Gain on sale of subsidiaries | $ 5,967 |
NATURE OF BUSINESS AND SUMMAR18
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
State/Country of incorporation | Nevada | |
Gain on sale of subsidiaries | $ 5,967 | |
Depreciation expense | $ 618 | |
Minimum [Member] | ||
Estimated useful lives | 3 years | |
Maximum [Member] | ||
Estimated useful lives | 5 years | |
Subsidiaries [Member] | ||
Aggregate consideration | $ 100 | |
Gain on sale of subsidiaries | $ 5,967 | |
One Customer [Member] | ||
Revenue from consulting services, Percentage | 100.00% |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Jan. 14, 2016 | Jan. 06, 2016 | Feb. 29, 2016 | Jan. 25, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Conversion price | $ 0.50 | |||||
Proceeds from issuance of convertible note payable | $ 30,000 | |||||
Debt issued for payment of expenses made by related party on behalf of company | 10,000 | |||||
Debt discount resulting from convertible notes | 44,000 | |||||
Payments on notes payable - related party | (17,558) | |||||
Notes payable to related parties | 6,116 | 23,674 | ||||
Notes payable | 9,500 | 11,500 | ||||
Proceeds from convertible notes payable | $ 17,000 | 22,983 | ||||
Convertible Notes Payable [Member] | ||||||
Interest rate | 12.00% | |||||
Debt discount resulting from convertible notes | $ 44,000 | |||||
Payments on notes payable - related party | (17,558) | |||||
Debt conversion converted amount | 40,000 | |||||
Notes payable to related parties | 6,116 | |||||
Proceeds from convertible notes payable | 57,000 | |||||
Convertible Notes Payable [Member] | Related Party [Member] | ||||||
Convertible debt, amount | $ 40,000 | |||||
Conversion price | $ 0.50 | |||||
Interest rate | 12.00% | |||||
Maturity period | 1 year | |||||
Proceeds from issuance of convertible note payable | $ 30,000 | |||||
Debt issued for payment of expenses made by related party on behalf of company | $ 10,000 | |||||
Convertible Notes Payable [Member] | Non-Related Party [Member] | ||||||
Convertible debt, amount | $ 15,000 | $ 1,000 | $ 1,000 | |||
Conversion price | $ 0.50 | $ 0.50 | $ 0.50 | |||
Interest rate | 12.00% | 12.00% | 12.00% | |||
Maturity period | 1 year | 1 year | 1 year | |||
Convertible Notes Payable [Member] | Third Party Transactions [Member] | ||||||
Debt conversion converted amount | 19,000 | 59,433 | ||||
Loss on settlement of debt | 42,952 | |||||
Notes payable | $ 9,500 | 11,500 | ||||
Proceeds from convertible notes payable | 22,983 | |||||
Convertible Notes Payable [Member] | Third Party Transactions One [Member] | ||||||
Convertible debt, amount | $ 1,000 | |||||
Conversion price | $ 0.50 | |||||
Interest rate | 12.00% | |||||
Maturity date | Dec. 18, 2016 | |||||
Convertible Notes Payable [Member] | Third Party Transactions Two [Member] | ||||||
Convertible debt, amount | $ 983 | |||||
Conversion price | $ 0.50 | |||||
Interest rate | 12.00% | |||||
Maturity date | Jan. 26, 2016 | |||||
Convertible Notes Payable [Member] | Third Party Transactions Three [Member] | ||||||
Convertible debt, amount | $ 20,000 | |||||
Conversion price | $ 0.50 | |||||
Interest rate | 12.00% | |||||
Maturity date | Jan. 6, 2017 | |||||
Convertible Notes Payable [Member] | Third Party Transactions Four [Member] | ||||||
Convertible debt, amount | $ 1,000 | |||||
Conversion price | $ 0.50 | |||||
Interest rate | 12.00% | |||||
Maturity date | Jul. 6, 2016 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Notes payable to related parties | $ 6,116 | $ 23,674 | |
Accounts payable to related parties | $ 10,583 | $ 5,026 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Value, Issued | |||
Common stock issued for services, Amount | $ 275,000 | 240,322 | |
Due to Related Parties | $ 4,000 | ||
Interest rate | 12.00% | ||
Additional borrowings | 230 | ||
Due from Related Parties | 1,000 | ||
Interest Expense, Related Party | 373 | ||
loss on debt conversion | 275 | ||
Series A preferred stock [Member] | President [Member] | |||
Preferred Stock, Shares Issued | 1,000 | ||
Preferred Stock, Value, Issued | $ 1 | ||
Outstanding common shares voting power percentage | 110.00% | ||
Common Stock | |||
Debt and interest due conversion | 1,373 | ||
Directors and Officers [Member] | |||
Expenses on behalf related party | $ 5,830 | ||
Reduction of expenses previously paid | 1,800 | ||
Monste Zaman [Member] | |||
Accounts payable to related parties | $ 10,583 | $ 5,026 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2007 | |
Common stock, shares authorized | 450,000,000 | 450,000,000 | |
Preferred stock, Shares authorized | 20,000,000 | 20,000,000 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Value, Issued | |||
Common stock issued for services, Amount | 275,000 | 240,322 | |
Debt conversion converted amount, fair value | 178,236 | ||
Loss on settlement of debt | 19,443 | 58,612 | |
Common stock issued for cash, Amount | 143,766 | 22,081 | |
Debt conversion original amount converted | 57,000 | ||
Common stock issued for settlement of accounts payable, Amount | $ 23,394 | ||
Common stock issued for settlement of accounts payable | |||
Series A preferred stock [Member] | President [Member] | |||
Preferred Stock, Shares Issued | 1,000 | ||
Preferred Stock, Value, Issued | $ 1 | ||
Outstanding common shares voting power percentage | 110.00% | ||
Employees Stock Plan 2007 | |||
Common stock shares reserved for future issuance | 10,000,000 | ||
Preferred Stock | |||
Preferred stock, Shares authorized | 20,001,000 | ||
Debt discount due to beneficial conversion feature | |||
Common stock issued for services, Shares | |||
Common stock issued for services, Amount | |||
Common stock issued for settlement of debt, Shares | |||
Debt conversion converted amount, fair value | |||
Common stock issued for cash, Shares | |||
Common stock issued for cash, Amount | |||
Common stock issued for settlement of accounts payable, Shares | |||
Common stock issued for settlement of accounts payable, Amount | |||
Accounts Payable [Member] | |||
Debt discount due to beneficial conversion feature | $ 44,000 | ||
Common stock issued for services, Shares | 100,000 | 152,496 | |
Common stock issued for services, Amount | $ 275,000 | $ 240,322 | |
Common stock issued for settlement of debt, Shares | 119,000 | 143,523 | |
Debt conversion converted amount, fair value | $ 79,150 | $ 178,236 | |
Loss on settlement of debt | $ 19,443 | $ 54,713 | |
Common stock issued for cash, Shares | 218,267 | 22,081 | |
Common stock issued for cash, Amount | $ 143,766 | $ 22,081 | |
Debt conversion original amount converted | $ 59,707 | $ 123,523 | |
Common stock issued for settlement of accounts payable, Shares | 19,495 | ||
Common stock issued for settlement of accounts payable, Amount | $ 23,394 | ||
Common stock issued for settlement of accounts payable | 19,495 | ||
Accounts payable resulting for loss | $ 3,899 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes Abstract | ||
Net operating loss | $ 559,054 | $ 530,300 |
Valuation allowance | (559,054) | (530,300) |
Net deferred tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Taxes Details Narrative Abstract | |
Net operating loss carry forward | $ 1,663,924 |
Net operating loss carry forward expiration date | 2,032 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 20, 2018 | Dec. 19, 2017 | Nov. 20, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock shares issued | 11,341,831 | 10,904,564 | |||
Common stock shares issued for cash, value | $ 11,342 | $ 10,905 | |||
Subsequent Event [Member] | |||||
Common stock shares issued | 457,558 | ||||
Common stock shares issued for cash, shares | 84,000 | ||||
Common stock shares issued for cash, value | $ 42,000 | ||||
Common stock shares issued for settlement of a promissory note and interest, shares | 26,308 | ||||
Common stock shares issued for settlement of a promissory note and interest, value | $ 13,154 | ||||
Common stock shares issued for services | 47,250 | ||||
Subsequent Event [Member] | Promissory Notes [Member] | During 2018 [Member] | |||||
Interest rate | 12.00% | ||||
Maturity period | 1 year | ||||
Subsequent Event [Member] | Promissory Notes [Member] | During 2017 [Member] | |||||
Interest rate | 12.00% | ||||
Maturity period | 1 year | ||||
Subsequent Event [Member] | Lessor Agreements [Member] | Dell Financial Services [Member] | |||||
Purchase of equipment | $ 1,505 | ||||
Monthly rent payment | $ 54 | ||||
Lease term | 36 months | ||||
Lease purchase option | $ 1 | ||||
Subsequent Event [Member] | Lease Agreements [Member] | Dell Financial Services [Member] | |||||
Monthly rent payment | $ 1,186 | ||||
Lease term | 60 months | ||||
Lease purchase option | $ 1 | ||||
Subsequent Event [Member] | AVOT [Member] | |||||
Exchange of restricted stock | 40,000,000 | ||||
Subsequent Event [Member] | Mike Zaman [Member] | Promissory Notes One [Member] | During 2018 [Member] | |||||
Convertible promissory notes | $ 450 | ||||
Subsequent Event [Member] | Mike Zaman [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 2,310 | ||||
Subsequent Event [Member] | Monste Zaman [Member] | Promissory Notes One [Member] | During 2018 [Member] | |||||
Convertible promissory notes | 1,785 | ||||
Subsequent Event [Member] | Monste Zaman [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 2,300 | ||||
Subsequent Event [Member] | Monste Zaman [Member] | Promissory Notes Two [Member] | During 2018 [Member] | |||||
Convertible promissory notes | 1,460 | ||||
Subsequent Event [Member] | Richard W. LeAndro [Member] | Promissory Notes One [Member] | During 2018 [Member] | |||||
Convertible promissory notes | 3,000 | ||||
Subsequent Event [Member] | Richard W. LeAndro [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 3,000 | ||||
Subsequent Event [Member] | Kevin Wiltz [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 1,500 | ||||
Subsequent Event [Member] | Chris Knudsen [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 1,031 | ||||
Subsequent Event [Member] | Arnulfo Saucedo-Bardan [Member] | Promissory Notes One [Member] | During 2017 [Member] | |||||
Convertible promissory notes | 620 | ||||
Subsequent Event [Member] | Arnulfo Saucedo-Bardan [Member] | Promissory Notes Two [Member] | During 2017 [Member] | |||||
Convertible promissory notes | $ 1,240 | ||||
Subsequent Event [Member] | Board of Directors Chairman [Member] | |||||
Common stock shares issued for services | 300,000 |