Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Nov. 21, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Crown Equity Holdings, Inc. | ||
Entity Central Index Key | 0001103833 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Small Business | true | ||
Entity Shell Company | true | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | No | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Common Stock Shares Outstanding | 12,052,766 | ||
Entity Public Float | $ 1,400,486 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash | $ 13,294 | $ 1,862 |
Total Current Assets | 13,294 | 1,862 |
Property and Equipment, net | 50,565 | 79,460 |
Total Assets | 63,859 | 81,322 |
Current liabilities | ||
Accounts payable and accrued expenses | 207,125 | 174,378 |
Accounts payable to related party | 61,156 | 37,591 |
Deferred revenue related party | 50,000 | |
Convertible notes payable to related parties, net of debt discount | 13,040 | 4,212 |
Convertible notes payable, net of debt discount | 8,498 | 29,888 |
Current portion of long-term debt | 10,403 | 10,518 |
Total Current Liabilities | 350,222 | 256,587 |
Non-Current liabilities | ||
Long-term debt | 42,879 | 47,528 |
Total Liabilities | 393,101 | 304,115 |
Stockholders' deficit | ||
Preferred Stock, 20,000,000 shares authorized, authorized at $.001 par value, none issued or outstanding | ||
Common Stock, 450,000,000 authorized at $0.001 par value; 11,823,389 and 11,461,137 shares issued and outstanding at December 31, 2018 and 2017 | 11,823 | 11,461 |
Stock Payable | 18,756 | |
Additional paid-in capital | 11,279,211 | 11,029,958 |
Accumulated deficit | (11,639,033) | (11,264,213) |
Total stockholders' deficit | (329,242) | (222,793) |
Total liabilities and stockholders' deficit | 63,859 | 81,322 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred Stock, 20,000,000 shares authorized, authorized at $.001 par value, none issued or outstanding | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' deficit | ||
Preferred stock, shares par value | $ .001 | $ .001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 11,823,389 | 11,823,389 |
Common stock, shares outstanding | 11,461,137 | 11,461,137 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 1,000 | 1,000 |
Preferred stock, shares outstanding | 1,000 | 1,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | ||
Revenues | $ 3,352 | $ 2,849 |
Revenues - Related Party | 7,100 | |
Total Revenues | 10,452 | 2,849 |
Operating expenses | ||
General and administrative expense | 313,477 | 142,906 |
Depreciation | 28,895 | 7,223 |
Total Operating Expenses | 342,372 | 150,129 |
(Loss) from operations | (331,920) | (147,280) |
Other income (expense) | ||
Interest expense | (17,996) | (4,402) |
(Loss) on extinguishment of debt | (39,462) | |
Debt Discount Amortization | (24,904) | |
Total Other Expense | (42,900) | (43,864) |
Net (loss) | $ (374,820) | $ (191,144) |
Basic and Diluted income (loss) per share | ||
Basic and diluted income per share | $ (0.03) | $ (0.02) |
Weighted average number of shares outstanding basic and diluted | 11,583,371 | 11,428,648 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Total | Preferred Stock | Common Stock | Common Stock Payable | Additional Paid-in Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2016 | 1,000 | 11,341,831 | ||||
Balance, amount at Dec. 31, 2016 | $ (184,357) | $ 1 | $ 11,342 | $ 10,887,369 | $ (11,073,069) | |
Net Income (Loss) | (191,144) | (191,144) | ||||
Common stock issued for services, shares | 30,998 | |||||
Common stock issued for services, amount | 57,937 | $ 31 | 57,906 | |||
Debt discount due to beneficial conversion feature | 11,156 | 11,156 | ||||
Common stock issued for settlement of debt, shares | 26,308 | |||||
Common stock issued for cash, shares | 62,000 | |||||
Common stock issued for cash, amount | 31,000 | $ 62 | 30,938 | |||
Common Stock Subscribed for services | ||||||
Common stock issued for settlement of debt, amount | $ 52,615 | $ 26 | $ 52,589 | |||
Balance, shares at Dec. 31, 2017 | 1,000 | 11,461,137 | ||||
Balance, amount at Dec. 31, 2017 | $ (222,793) | $ 1 | $ 11,461 | $ 11,029,958 | $ (11,264,213) | |
Net Income (Loss) | (374,820) | $ (374,820) | ||||
Common stock issued for services, shares | 316,252 | |||||
Common stock issued for services, amount | 171,765 | $ 316 | 171,449 | |||
Debt discount due to beneficial conversion feature | 54,850 | 54,850 | ||||
Common stock issued for cash, shares | 46,000 | |||||
Common stock issued for cash, amount | 23,000 | $ 46 | 22,954 | |||
Common Stock Subscribed for services | $ 18,756 | $ 18,756 | ||||
Balance, shares at Dec. 31, 2018 | 1,000 | 11,823,389 | ||||
Balance, amount at Dec. 31, 2018 | $ (329,242) | $ 1 | $ 11,823 | $ 18,756 | $ 11,279,211 | $ (11,639,033) |
CONSOLDIATED STATEMENTS OF CASH
CONSOLDIATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net (loss) | $ (374,820) | $ (191,144) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 28,895 | 7,223 |
Common stock issued for services | 190,521 | 57,937 |
Loss on settlement of debt | 39,462 | |
Amortization of beneficial conversion features | 24,904 | 2,181 |
Changes in operating assets and liabilities | ||
Accounts payable and accrued expenses | 4,063 | 9,357 |
Accounts payable - related party | 23,567 | 27,008 |
Deferred revenue - related party | 50,000 | |
Net cash (used in) operating activities | (52,870) | (47,976) |
Cash flows from investing activities | ||
Cash flows from financing activities | ||
Proceeds from convertible notes payable | 3,000 | 5,531 |
Proceeds from sale of stock | 23,000 | 31,000 |
Payments on convertible notes payable - related party | (8,784) | (1,026) |
Proceeds from convertible notes payable - related party | 51,850 | 6,470 |
Payments on notes payable | (4,764) | (2,700) |
Net cash provided by financing activities | 64,302 | 39,275 |
Net increase (decrease) in cash | 11,432 | (8,701) |
Cash, beginning of period | 1,862 | 10,563 |
Cash, end of period | 13,294 | 1,862 |
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 debt and interest conversion | 13,153 | |
Debt issued for settlement payment made by related party on behalf of the Company | ||
Debt issued for fixed assets | 86,730 | |
Debt discount resulting from convertible notes | $ 54,850 | $ 11,156 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | |
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. 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 Gain on sale of subsidiaries 5,967 Basis of Preparation The accompanying consolidated financial statements include the financial information of Crown Equity Holdings Inc. (“Crown Equity”, the “Company”) have been prepared in accordance with the instructions to financial reporting as prescribed by the Securities and Exchange Commission (the “SEC”). The preparation of these consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, the consolidated financial statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Adoption of New Accounting Standard Crown Equity adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated Financial Statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Accounting Standards Not Yet Adopted We expect to adopt these provisions on January 1, 2019, including interim periods subsequent to the date of adoption. We are currently evaluating the impact it will have on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2017-02 “ Leases”, Leases” In September 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. 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. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition, long-lived asset impairments and adjustments, deferred tax, stock-based compensation, and reserves for legal matters. Cash and Cash Equivalents Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be cash and cash equivalents. Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances. Revenue Recognition The core principles of revenue recognition under ASC 606 include the following five criteria: 1. Identify the contract with the customer Contract with our customers may be oral, written, or implied. A written and signed invoice stating the terms and conditions is the Company’ preferred method. The terms of a written contract may be contained within the body of an invoice or in an email. No work is commenced without an understanding between the Company and our client that a valid contract exists. 2. Identify the performance obligations in the contract Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations. 3. Determine the transaction price Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer. 4. Allocate the transaction price to the performance obligations in the contract If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase. 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. December 31, 2018 December 31, 2017 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server - $ 7,000 $ 7,000 - - - Click Based and Impressions Ads $ 2,885 - 2,885 $ 2,401 - 2,401 Domain Registrations 67 - 67 33 - 33 Publishing and Distribution 400 100 500 415 - 415 $ 3,352 $ 7,100 $ 10,452 $ 2,849 - $ 2,849 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. December 31, December 31, 2018 2017 Deferred Revenue $ 50,000 $ - 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, 2018 and 2017. Risk Concentrations In 2017, the Company’s revenues received were 84.37% from one customer from the displaying of click based and impressions ads located on the company’s websites; 14.49% came from name domain registrations through (CRWE Domains) the company’s domain website, and 1.14% from a couple of press releases through (CRWE Press Releases) and one article through CRWE WORLD; which are both part of the company’s news and press release publishing and distribution services. In 2018, 68% of the Company’s revenues were received 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% of the third party revenues were from the displaying of click 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's general and administrative expenses consisted of the following types of expenses during 2018 and 2017: 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 2018 or 2017. Basic and Diluted Net (Loss) per Share December 31, 2018 2017 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 11,583,371 11,428,648 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.03 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.02 ) When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the years ended December 31, 2018 and 2017. The number of potential anti-dilutive shares excluded from the calculation shares for the year ended December 31, 2018 is 113,377. Income Taxes 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, 2018 and 2017. 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 cash equivalents, accounts payable and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. Research and Development The Company spent no money for research and development cost for the years ended December 31, 2018 and 2017 Advertising Cost The Company spent no money for advertisement for the years ended December 31, 2018 and 2017. Depreciation expense was $28,895 and 7,223 for the years ended December 31, 2018 and 2017, respectively |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2018 | |
GOING CONCERN | |
NOTE 2 - GOING CONCERN | As shown in the accompanying consolidated financial statements, Crown Equity an accumulated deficit of $11,639,033 since its inception and had a working capital deficit of $336,928, negative cash flows from operations and limited business operations as of December 31, 2018. 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. 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 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT | |
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, 2018 and 2017: December 31, 2018 December 31, 2017 Computers – 3 year estimated useful life $ 86,684 $ 86,684 Less – Accumulated Depreciation (28,895 ) (7,224 ) Property and Equipment, net $ 58,789 $ 79,460 Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $28,895, and 7,224 for the twelve months ended December 31, 2018 and 2017, respectively. |
CAPITAL LEASES
CAPITAL LEASES | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL LEASES | |
NOTE 4 - CAPITAL LEASES | During 2017, the Company borrowed an aggregate $58,047 under the following third party capital lease transactions: The Company is obligated for payments under capital leases as follows: Minimum Lease Payments December 31, 2018 December 31, 2017 2018 - 10,518 2019 10,403 10,779 2020 11,887 11,887 2021 12,412 12,412 2022 12,450 12,450 2023 6,130 - Thereafter - - Total 53,282 58,046 ¨ A $1,505 note from a third party for the lease of fixed assets, bearing interest at 17%, amortized over 36 months with monthly payments of $54. The lease has a bargain purchase option of $1 at the end of the lease term. ¨ A $56,542 note from a third party for the lease of fixed assets, bearing interest at 17%, amortized over 60 months with monthly payments of $1,186. The lease has a bargain purchase option of $1 at the end of the lease term. |
NOTES PAYABLE AND CONVERTIBLE N
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | |
NOTE 5 - NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | During 2018, third party convertible note payables of $8,531 were not settled for cash or through the issuance of common stock shares. As of December 31, 2018 and 2017, the Company had unamortized discount of $38,920 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 $54,850, as of December 31, 2018. Original Due Interest Conversion Dec 31, Name Note Date Date Rate Rate 2018 Chris Knudsen 09/17/2017 09/17/2018 12 % $ 0.50 1,031 Kevin Wiltz 11/27/2017 11/27/2018 12 % $ 0.50 1,500 Richard LeAndro 12/05/2017 12/05/2018 12 % $ 0.50 3,000 Richard LeAndro 01/04/2018 01/04/2019 12 % $ 0.50 3,000 Total Convertible Notes Payable 8,531 Less: Debt Discount (33 ) Convertible Notes Payable, net of Discount 8,498 Related Party: Mike Zaman 12/30/2015 12/30/2018 12 % $ 0.50 718 Mike Zaman 04/12/2017 04/12/2018 12 % $ 0.50 350 Mike Zaman 11/15/2017 11/15/2018 12 % $ 0.50 500 Mike Zaman 11/27/2017 11/27/2018 12 % $ 0.50 460 Mike Zaman 11/30/2017 11/30/2018 12 % $ 0.50 1,000 Mike Zaman 01/19/2018 01/19/2019 12 % $ 0.50 450 Montse Zaman 06/07/2018 06/07/2019 12 % $ 0.50 293 OCHC, LLC 08/21/2018 08/21/2019 12 % $ 0.50 631 OCHC, LLC 10/02/2018 10/02/2019 12 % $ 0.50 631 OCHC, LLC 10/24/2018 10/24/2019 12 % $ 0.50 631 OCHC, LLC 11/16/2018 11/16/2019 12 % $ 0.50 631 OCHC, LLC 12/04/2018 12/04/2019 12 % $ 0.50 631 Munti Consulting LLC 10/03/2018 10/03/2019 10 % $ 0.50 35,000 Munti Consulting LLC 12/19/2018 12/19/2019 10 % $ 0.50 10,000 Total Convertible Related Party Notes Payable 51,926 Less: Debt Discount (38,887 ) Convertible Notes Payable, net of Discount - Related Party 13,040 Chris Knudsen As of December 31, 2018, there have been no additional notes, payment or conversion related to the notes. The interest on the August 21, 2018 note for $631, October 2, 2018 note for $200 and the October 24, 2018 note are $27, $6 and $5 respectfully. Kevin Wiltz As of December 31, 2018, there have been no additional notes, payment or conversion related the notes. The interest on the November 27, 2017 note for $1,500 was $197. Richard LeAndro On December 5, 2017 and January 4, 2018 the Company entered into convertible promissory notes with Mr. LeAndro for a loan in the amount of $3,000 on both notes. The notes carry an interest of 12% per annum. As of December 31, 2018, there have been no additional notes, payment or conversion related to the notes. The interest on the December 5, 2017 note for $3,000 and January 4, 2018 note for $3,000 were $386 and $356 respectfully. The holder has the right to convert principal and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. Therefore, the Company recorded a discount for the beneficial conversion feature of the note, which has been amortized over the life of the note using the straight-line method. There have been no payments or conversions for this note as of December 31, 2018. The notes mature on December 5, 2018 and January 3, 2019 respectively. Arnulfo Saucedo-Bardan On March 11, 2017, and October 26, 2017, the Company entered into convertible promissory notes for with Arnulfo Saucedo-Bardan for loan in the amounts of $620 and $1,240 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 or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. During 2017, $606 of the $620 note was paid leaving a balance $14. As of December 31, 2018 both notes were paid. OCHC, LLC On August 11, 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. The notes carry interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. None of the notes were paid or converted and the interest in reference to each note are $29, $19, $14, $9 and $6 as of December 31, 2018 respectively. Munti Consulting, LLC On October 3, 2018 and December 19, 2018, the Company entered into convertible promissory notes for with Munti Consulting, LLC for loans in the amounts of $35,000 and 10,000. The notes carry interest at 10% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. None of the notes were paid or converted and the interests in reference to note are $853 as of December 31, 2018 respectively. Mike Zaman On December 30, 2015, April 12, 2017, November 15, 2017, November 27, 2017, November 30, 2017 and January 19, 2018 the Company entered into convertible promissory notes with Mike Zaman for a loans in the amount of $1,458, $350, $500, $460, $1,000 and $450, respectively. The balance on the $1,458 note was $718 at December 31, 2018. The notes carry interest at 12% per annum. 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 these notes, the conversion price was less than the trading price of the stock. Therefore, 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. Payments of $500, $500 and $1,500 were made on July 3, 2018, July 11, 2018 and August 28, 2018 respectively, and no conversions for these notes as of December 31, 2018. Montse Zaman On January 20, 2018, January 24, 2018, February 22, 2018, February 23, 2018, February 28, 2018, April 11, 2018 and June 7, 2018, the Company entered into convertible promissory notes for with Montse Zaman for loan in the amount of $20, $400, $25, $40, $1,300, $700 and $760 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 or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. Therefore, the Company recorded a discount for the beneficial conversion feature of the note, which has been amortized over the life of the note using the straight-line method. Interest on Montse Zaman notes were $109 for the year end December, 2018 and $10 for the year ended December, 2017. Payments of $150, $500, $2,000, $500, $500, and $1,500 were made on January 10, 2018, July 3, 2018, July 27, 2018, August 29, 2018, October 3, 2018 and October 18, 2018 respectively, and no conversions for these notes as of December 31, 2018. The notes mature on February 28, 2019, April 11, 2019 and June 7, 2019 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 6 - COMMITMENTS AND CONTINGENCIES | The Company is obligated for payments under third and related party notes payable and automobile lease payments. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
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. As of December 31, 2018, the company has $50,000 related party deferred revenue for nine months of Advertising services for client in July 1, 2018 through April 1, 2019. As of December 31, 2017, the Company had a payable of $27,008 to Vinot Sambandam, an officer of the Company for services performed. As of December 31, 2017, the Company had a payable of $10,583 to Montse Zaman, director for expenses paid on behalf of the Company. The payable is unsecured, bears no interest and due on demand. As of December 31, 2017, the aggregate outstanding balance of notes payable to related parties was $4,212, net of unamortized discount of $4,648 consisting of loans. As of December 31, 2018 and 2017, the outstanding balance of accounts payable to related parties was $61,156 and 437,591 respectively. As of December 31, 2018, the outstanding balance of convertible notes payable to related parties, $51,926 net of unamortized discount of $38,887. For more details see note 4. As of December 31, 2018 and 2017, the company had an expense of $8,160 and $5,448 respectively to Mike Zaman, a director and CEO of the Company for automobile lease agreements. During the year ended December 31, 2017, 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, 2018 | |
STOCKHOLDERS' EQUITY | |
NOTE 8 - STOCKHOLDERS' EQUITY | Common Stock As of December 31, 2018, the stock payable for services outstanding was $18,756. As of December 31, 2018, 316,252 shares were issued for $171,765 services rendered per agreement. These were valued using the market value on the date of grant. As of December 31, 2018, the Company issued 46,000 shares for $23,000 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 grant. During 2017, the Company issued: ¨ 62,000 common shares issued for cash proceeds of $31,000, ¨ 30,998 common shares issued for services to an officer of the Company with a value of $57,937, ¨ 26,308 shares issued for conversion of $9,500 note payable plus $3,653 of accrued interest, which resulted in a loss on debt conversion of $39,462. 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, 2018. 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, 2018, the Company has 1,000 shares of Series A Preferred Stock outstanding |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
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 2018 or 2017. The Company's deferred tax assets consisted of the following as of December 31, 2018 and 2017: 2018 2017 Net operating loss $ 399,821 $ 575,978 Valuation allowance (399,821 ) (575,978 ) Net deferred tax asset $ - $ - As of December 31, 2018 and 2017, the Company's accumulated net operating loss carry forward was approximately $1,903,911 and $1,744,516 respectively and will begin to expire in the year 2032. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%. 2014 Federal income tax returns have not been examined and reported upon by the Internal Revenue Service; returns of the years since 2014 are still open. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
NOTE 10 - SUBSEQUENT EVENTS | On January 9, 2019, Steven A. Cantor resigned as Chairman of the Board, and Deborah Robinson resigned as one of its directors and Chief Marketing Officer. Mike Zaman was appointed to Chairman of the Board. Management has evaluated subsequent events as of the date of the Consolidated Financial Statements and has determined that all events are disclosed herein. During 2019 company issued an additional total of 229,377 shares of common shares, subsequent to December 31, 2018, which are broken down as follows: 116,000 shares were issued for cash proceeds of $58,000 and 113,377 shares were issued for the conversions of notes payable $56,688 All notes with the exception of Munti Consulting, LLC have 10% annual interest, due within one year and are convertible at $0.50 per share. Notes converted were as follows: Five notes from OCHC, LLC on August 21, 2018 for $631, October 2, 2018 for $631, October 24, 2018 for $631, November 16, 2018 for $631 and December 4, 2018 for $631. Shares issued were 1,263, 1,263, 1,263, 1,263 and 1,263, respectively. The notes were converted within the terms of the agreement. Three notes from Chris Knudsen on July 7, 2017 for $630.77, August 8, 2017 for $200 and September 18, 2017 for $200. Shares issued were 1,262,400 and 400, respectively. One note from Kevin Wiltz on November 27, 2017 for $1,500 which 3,000 shares were issued. The notes were converted within the terms of the agreement. Two notes from Richard W. LeAndro on December 5, 2017 for $3,000 and January 4, 2018 for $3,000. Shares issued were 6,000 and 6,000, respectively. The notes were converted within the terms of the agreement. Two notes from Munti Consulting, LLC on October 2, 2018 for $35,000 and December 19, 2018 for $10,000. Shares issued were 70,000 and 20,000, respectively. The notes were converted within the terms of the agreement. Sales of Company stock subsequent to December 31, 2018: On January 23, 2019 and February 25, 2019, Richard W. LeAndro purchased $2,000 for 4,000 shares and $3,000 for 6,000 shares, respectively. On April 23, 2019, Glen J. Rineer purchased $3,000 for 6,000 shares of Company stock. On April 30, 2019, May 31, 2019, July 1, 2019, August 1, 2019 and September 3, 2019 Munti Consulting, LLC purchased $10,000 for each month , respectively for a total purchase of $50,000 for 100,000 shares of Company stock. On May 10, 2019, Brian D. Colvin resigned as director and Vice President, as well as Arnulfo Saucedo-Bardan resigned as director and Chief Operating Officer. Montse Zaman appointed Chief Operating Officer as she maintains her Secretary/Treasurer position. Management has evaluated subsequent events as of the date of the Consolidated Financial Statements and has determined that all events are disclosed herein. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (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. 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 Gain on sale of subsidiaries 5,967 |
Basis of Preparation | The accompanying consolidated financial statements include the financial information of Crown Equity Holdings Inc. (“Crown Equity”, the “Company”) have been prepared in accordance with the instructions to financial reporting as prescribed by the Securities and Exchange Commission (the “SEC”). The preparation of these consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, the consolidated financial statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein. |
Reclassifications | Certain prior period amounts have been reclassified to conform to current period presentation. |
Adoption of New Accounting Standard | Crown Equity adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated Financial Statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. |
Accounting Standards Not Yet Adopted | We expect to adopt these provisions on January 1, 2019, including interim periods subsequent to the date of adoption. We are currently evaluating the impact it will have on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2017-02 “ Leases”, Leases” In September 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. 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. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition, long-lived asset impairments and adjustments, deferred tax, stock-based compensation, and reserves for legal matters. |
Cash and Cash Equivalents | Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be cash and cash equivalents. |
Stock-Based Compensation | The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances. |
Revenue Recognition | The core principles of revenue recognition under ASC 606 include the following five criteria: 1. Identify the contract with the customer Contract with our customers may be oral, written, or implied. A written and signed invoice stating the terms and conditions is the Company’ preferred method. The terms of a written contract may be contained within the body of an invoice or in an email. No work is commenced without an understanding between the Company and our client that a valid contract exists. 2. Identify the performance obligations in the contract Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations. 3. Determine the transaction price Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer. 4. Allocate the transaction price to the performance obligations in the contract If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase. 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. December 31, 2018 December 31, 2017 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server - $ 7,000 $ 7,000 - - - Click Based and Impressions Ads $ 2,885 - 2,885 $ 2,401 - 2,401 Domain Registrations 67 - 67 33 - 33 Publishing and Distribution 400 100 500 415 - 415 $ 3,352 $ 7,100 $ 10,452 $ 2,849 - $ 2,849 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. December 31, December 31, 2018 2017 Deferred Revenue $ 50,000 $ - 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, 2018 and 2017. |
Risk Concentrations | In 2017, the Company’s revenues received were 84.37% from one customer from the displaying of click based and impressions ads located on the company’s websites; 14.49% came from name domain registrations through (CRWE Domains) the company’s domain website, and 1.14% from a couple of press releases through (CRWE Press Releases) and one article through CRWE WORLD; which are both part of the company’s news and press release publishing and distribution services. In 2018, 68% of the Company’s revenues were received 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% of the third party revenues were from the displaying of click 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's general and administrative expenses consisted of the following types of expenses during 2018 and 2017: 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 2018 or 2017. |
Basic and Diluted Net (Loss) per Share | December 31, 2018 2017 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 11,583,371 11,428,648 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.03 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.02 ) When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the years ended December 31, 2018 and 2017. The number of potential anti-dilutive shares excluded from the calculation shares for the year ended December 31, 2018 is 113,377. |
Income Taxes | 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, 2018 and 2017. |
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 cash equivalents, accounts payable and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. |
Research and Development | The Company spent no money for research and development cost for the years ended December 31, 2018 and 2017 |
Advertising Costs | The Company spent no money for advertisement for the years ended December 31, 2018 and 2017. Depreciation expense was $28,895 and 7,223 for the years ended December 31, 2018 and 2017, respectively. |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | |
schedule ofCompany formed two subsidiaries Crown Tele Services | Assets - Intercompany - Total Assets sold - Cash 100 Payable assumed by buyer 5,867 Total Consideration 5,967 Gain on sale of subsidiaries 5,967 |
schedule of Sales recognized promised | December 31, 2018 December 31, 2017 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server - $ 7,000 $ 7,000 - - - Click Based and Impressions Ads $ 2,885 - 2,885 $ 2,401 - 2,401 Domain Registrations 67 - 67 33 - 33 Publishing and Distribution 400 100 500 415 - 415 $ 3,352 $ 7,100 $ 10,452 $ 2,849 - $ 2,849 |
schedule ofrevenue received from the display of click based and impressions | December 31, December 31, 2018 2017 Deferred Revenue $ 50,000 $ - |
schedule of Basic and Diluted Net (Loss) per Share | December 31, 2018 2017 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (374,820 ) $ (191,144 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 11,583,371 11,428,648 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.03 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.02 ) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT | |
Schedule of property plant and equipment | December 31, 2018 December 31, 2017 Computers – 3 year estimated useful life $ 86,684 $ 86,684 Less – Accumulated Depreciation (28,895 ) (7,224 ) Property and Equipment, net $ 58,789 $ 79,460 |
Capital lease (Tables)
Capital lease (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital lease (Tables) | |
schedule of payments under capital leases | Minimum Lease Payments December 31, 2018 December 31, 2017 2018 - 10,518 2019 10,403 10,779 2020 11,887 11,887 2021 12,412 12,412 2022 12,450 12,450 2023 6,130 - Thereafter - - Total 53,282 58,046 |
NOTES PAYABLE AND CONVERTIBLE_2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Tables) | |
Schedule of Convertible Notes Payable | Original Due Interest Conversion Dec 31, Name Note Date Date Rate Rate 2018 Chris Knudsen 09/17/2017 09/17/2018 12 % $ 0.50 1,031 Kevin Wiltz 11/27/2017 11/27/2018 12 % $ 0.50 1,500 Richard LeAndro 12/05/2017 12/05/2018 12 % $ 0.50 3,000 Richard LeAndro 01/04/2018 01/04/2019 12 % $ 0.50 3,000 Total Convertible Notes Payable 8,531 Less: Debt Discount (33 ) Convertible Notes Payable, net of Discount 8,498 Related Party: Mike Zaman 12/30/2015 12/30/2018 12 % $ 0.50 718 Mike Zaman 04/12/2017 04/12/2018 12 % $ 0.50 350 Mike Zaman 11/15/2017 11/15/2018 12 % $ 0.50 500 Mike Zaman 11/27/2017 11/27/2018 12 % $ 0.50 460 Mike Zaman 11/30/2017 11/30/2018 12 % $ 0.50 1,000 Mike Zaman 01/19/2018 01/19/2019 12 % $ 0.50 450 Montse Zaman 06/07/2018 06/07/2019 12 % $ 0.50 293 OCHC, LLC 08/21/2018 08/21/2019 12 % $ 0.50 631 OCHC, LLC 10/02/2018 10/02/2019 12 % $ 0.50 631 OCHC, LLC 10/24/2018 10/24/2019 12 % $ 0.50 631 OCHC, LLC 11/16/2018 11/16/2019 12 % $ 0.50 631 OCHC, LLC 12/04/2018 12/04/2019 12 % $ 0.50 631 Munti Consulting LLC 10/03/2018 10/03/2019 10 % $ 0.50 35,000 Munti Consulting LLC 12/19/2018 12/19/2019 10 % $ 0.50 10,000 Total Convertible Related Party Notes Payable 51,926 Less: Debt Discount (38,887 ) Convertible Notes Payable, net of Discount - Related Party 13,040 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES (Tables) | |
Schedule of Deferred Tax | 2018 2017 Net operating loss $ 399,821 $ 575,978 Valuation allowance (399,821 ) (575,978 ) Net deferred tax asset $ - $ - |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details) - 2016 [Member] | Dec. 31, 2018USD ($) |
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 SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
IT Services on Company Server | $ 7,000 | |
Click Based and Impressions Ads | 2,885 | 2,401 |
Domain Registrations | 67 | 33 |
Publishing and Distribution | 500 | 415 |
Total sales | 3,352 | 2,849 |
Third Party [Member] | ||
IT Services on Company Server | ||
Click Based and Impressions Ads | 2,885 | 2,401 |
Domain Registrations | 67 | 33 |
Publishing and Distribution | 400 | 415 |
Total sales | 3,352 | 2,849 |
Related Party [Member] | ||
IT Services on Company Server | 7,000 | |
Click Based and Impressions Ads | ||
Domain Registrations | 7,100 | |
Publishing and Distribution | 100 | |
Total sales |
NATURE OF BUSINESS AND SUMMAR_6
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) | ||
Deferred Revenue | $ 50,000 |
NATURE OF BUSINESS AND SUMMAR_7
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||
Net (loss) | $ (374,820) | $ (191,144) |
Net (Loss) attributable to Crown Equity Holdings, Inc. | $ (374,820) | $ (191,144) |
Denominator: | ||
Weighted average common and common equivalent shares outstanding ? basic and diluted | 11,583,371 | 11,428,648 |
Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: | ||
Basic | $ (0.03) | $ (0.02) |
Diluted | $ (0.03) | $ (0.02) |
NATURE OF BUSINESS AND SUMMAR_8
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
State of incorporation | Nevada | |
Date of Incorporation | Aug. 31, 1995 | |
Risk Concentrations description | In 2017, the Company’s revenues received were 84.37% from one customer from the displaying of click based and impressions ads located on the company’s websites; 14.49% came from name domain registrations through (CRWE Domains) the company’s domain website, and 1.14% from a couple of press releases through (CRWE Press Releases) and one article through CRWE WORLD; which are both part of the company’s news and press release publishing and distribution services | |
Number of anti-dilutive shares excluded | 113,377 | |
Percentage of income tax realization benefit | 50.00% | |
Depreciation | $ 28,895 | $ 7,223 |
Click Based And Impressions Ads [Member] | ||
Percentage of revenues received | 28.00% | |
Managed Information Technology Services [Member] | ||
Percentage of revenues received | 68.00% | |
2016 [Member] | ||
Gain on sale of subsidiaries | $ 5,967 | |
Aggregate consideration | 100 | |
CRWE Real Estate Inc. [Member] | 2016 [Member] | ||
Gain on sale of subsidiaries | 5,967 | |
Aggregate consideration | $ 100 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
GOING CONCERN (Details Narrative) | |||
Accumulated deficit | $ (11,639,033) | $ (11,264,213) | |
Working capital deficit | $ (336,928) |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
PROPERTY AND EQUIPMENT | ||
Computers | $ 86,684 | $ 86,684 |
Less - Accumulated Depreciation | (28,895) | (7,224) |
Property and Equipment, net | $ 58,789 | $ 79,460 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation | $ 28,895 | $ 7,223 |
Capitalized property | $ 1,000 | |
Minimum [Member] | ||
Assets estimated useful life | 3 years | |
Maximum [Member] | ||
Assets estimated useful life | 7 years |
CAPITAL LEASES (Details)
CAPITAL LEASES (Details) - CAPITAL LEASES [Member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
2018 | $ 10,518 | |
2019 | 10,403 | 10,779 |
2020 | 11,887 | 11,887 |
2021 | 12,412 | 12,412 |
2022 | 12,450 | 12,450 |
2023 | 6,130 | |
Thereafter | ||
Total | $ 53,282 | $ 58,046 |
CAPITAL LEASES (Details Narrati
CAPITAL LEASES (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Due to related party | $ 58,047 |
Capital Lease Two [Member] | |
Note payable | $ 56,542 |
Interest rate | 17.00% |
Amortization period | 60 months |
Monthly payments | $ 1,186 |
Bargain purchase option | 1 |
Capital Leases One [Member] | |
Note payable | $ 1,505 |
Interest rate | 17.00% |
Amortization period | 36 months |
Monthly payments | $ 54 |
Bargain purchase option | $ 1 |
NOTES PAYABLE AND CONVERTIBLE_3
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 19, 2018 | Oct. 03, 2018 | Dec. 31, 2017 | Oct. 26, 2017 | Mar. 11, 2017 | |
Total Convertible Notes Payable | ||||||
Less: Debt Discount | (33) | |||||
Convertible Notes Payable, net of Discount | $ 8,498 | |||||
Chris Knudsen [Member] | ||||||
Due Date | Sep. 17, 2018 | |||||
Interest Rate | 12.00% | |||||
Conversion Rate | $ 0.50 | |||||
Note payable | $ 1,031 | |||||
Original Note Date | Sep. 17, 2017 | |||||
Kevin Wiltz [Member] | ||||||
Due Date | Nov. 27, 2018 | |||||
Interest Rate | 12.00% | |||||
Conversion Rate | $ 0.50 | |||||
Note payable | $ 1,500 | |||||
Original Note Date | Nov. 27, 2017 | |||||
Richard LeAndro 1 [Member] | ||||||
Due Date | Dec. 5, 2018 | |||||
Interest Rate | 12.00% | |||||
Conversion Rate | $ 0.50 | |||||
Note payable | $ 3,000 | |||||
Original Note Date | Dec. 5, 2017 | |||||
Richard LeAndro 2 [Member] | ||||||
Due Date | Jan. 4, 2019 | |||||
Interest Rate | 12.00% | |||||
Conversion Rate | $ 0.50 | |||||
Note payable | $ 3,000 | |||||
Original Note Date | Jan. 4, 2018 |
NOTES PAYABLE AND CONVERTIBLE_4
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details 1) - USD ($) | Apr. 12, 2017 | Jan. 19, 2018 | Nov. 30, 2017 | Nov. 27, 2017 | Nov. 15, 2017 | Dec. 30, 2015 | Dec. 31, 2018 | Dec. 19, 2018 | Oct. 03, 2018 | Dec. 31, 2017 | Oct. 26, 2017 | Mar. 11, 2017 |
Total Convertible Related Party Notes Payable | ||||||||||||
Less: Debt Discount | (33) | |||||||||||
Convertible Notes Payable [Member] | ||||||||||||
Total Convertible Related Party Notes Payable | 51,926 | |||||||||||
Less: Debt Discount | (38,887) | |||||||||||
Convertible Notes Payable, net of Discount - Related Party | $ 13,040 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 1 [Member] | ||||||||||||
Original Note Date | Dec. 30, 2015 | |||||||||||
Note payable | $ 718 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Dec. 30, 2018 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 2 [Member] | ||||||||||||
Original Note Date | Apr. 12, 2017 | |||||||||||
Note payable | $ 350 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Apr. 12, 2018 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 3 [Member] | ||||||||||||
Original Note Date | Nov. 15, 2017 | |||||||||||
Note payable | $ 500 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Nov. 15, 2018 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 4 [Member] | ||||||||||||
Original Note Date | Nov. 27, 2017 | |||||||||||
Note payable | $ 460 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Nov. 27, 2018 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 5 [Member] | ||||||||||||
Original Note Date | Nov. 30, 2017 | |||||||||||
Note payable | $ 1,000 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Nov. 30, 2018 | |||||||||||
Convertible Notes Payable [Member] | Mike Zaman 6 [Member] | ||||||||||||
Original Note Date | Jan. 19, 2018 | |||||||||||
Note payable | $ 450 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Jan. 19, 2019 | |||||||||||
Convertible Notes Payable [Member] | Montse Zaman [Member] | ||||||||||||
Original Note Date | Jul. 6, 2018 | |||||||||||
Note payable | $ 293 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Jul. 6, 2019 | |||||||||||
Convertible Notes Payable [Member] | OCHC, LLC 1 [Member] | ||||||||||||
Original Note Date | Aug. 21, 2018 | |||||||||||
Note payable | $ 631 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Aug. 21, 2019 | |||||||||||
Convertible Notes Payable [Member] | Munti Consulting LLC 2 [Member] | ||||||||||||
Original Note Date | Dec. 19, 2018 | |||||||||||
Note payable | $ 10,000 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Dec. 19, 2019 | |||||||||||
Convertible Notes Payable [Member] | Munti Consulting LLC 1 [Member] | ||||||||||||
Original Note Date | Oct. 3, 2018 | |||||||||||
Note payable | $ 35,000 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Oct. 3, 2019 | |||||||||||
Convertible Notes Payable [Member] | OCHC, LLC 5 [Member] | ||||||||||||
Original Note Date | Dec. 4, 2018 | |||||||||||
Note payable | $ 631 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Dec. 4, 2019 | |||||||||||
Convertible Notes Payable [Member] | OCHC, LLC 2 [Member] | ||||||||||||
Original Note Date | Feb. 10, 2018 | |||||||||||
Note payable | $ 631 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Feb. 10, 2019 | |||||||||||
Convertible Notes Payable [Member] | OCHC, LLC 4 [Member] | ||||||||||||
Original Note Date | Nov. 16, 2018 | |||||||||||
Note payable | $ 631 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | |||||
Due Date | Nov. 16, 2019 | |||||||||||
Convertible Notes Payable [Member] | OCHC, LLC 3 [Member] | ||||||||||||
Original Note Date | Oct. 24, 2018 | |||||||||||
Note payable | $ 631 | |||||||||||
Conversion Rate | $ 0.50 | |||||||||||
Interest Rate | 12.00% | |||||||||||
Due Date | Oct. 24, 2019 |
NOTES PAYABLE AND CONVERTIBLE_5
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details Narrative) - USD ($) | Oct. 03, 2018 | Jul. 11, 2018 | Jul. 03, 2018 | Jun. 07, 2018 | Apr. 11, 2018 | Jan. 10, 2018 | Jan. 04, 2018 | Apr. 12, 2017 | Oct. 18, 2018 | Aug. 29, 2018 | Aug. 28, 2018 | Jul. 27, 2018 | Feb. 28, 2018 | Feb. 23, 2018 | Feb. 22, 2018 | Jan. 24, 2018 | Jan. 20, 2018 | Jan. 19, 2018 | Nov. 30, 2017 | Nov. 27, 2017 | Nov. 15, 2017 | Dec. 30, 2015 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 19, 2018 | Oct. 26, 2017 | Mar. 11, 2017 |
Total Convertible Notes Payable | ||||||||||||||||||||||||||||
Debt discount resulting from convertible notes | 54,850 | 11,156 | ||||||||||||||||||||||||||
Unamortized discount | 38,920 | 0 | ||||||||||||||||||||||||||
Interest paid | 6,772 | |||||||||||||||||||||||||||
Interest paid | ||||||||||||||||||||||||||||
Accrued interest | $ 3,653 | |||||||||||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Total Convertible Notes Payable | 51,926 | |||||||||||||||||||||||||||
Accrued interest | 762 | |||||||||||||||||||||||||||
Related Party Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Accrued interest | $ 1,040 | |||||||||||||||||||||||||||
Chris Knudsen [Member] | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Note payable | $ 1,031 | |||||||||||||||||||||||||||
Description of interest payments | The interest on the August 21, 2018 note for $631, October 2, 2018 note for $200 and the October 24, 2018 note are $27, $6 and $5 respectfully. | |||||||||||||||||||||||||||
Kevin Wiltz [Member] | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Note payable | $ 1,500 | |||||||||||||||||||||||||||
Description of interest payments | The interest on the November 27, 2017note for $1,500 was $197. | |||||||||||||||||||||||||||
Mike Zaman 1 [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 350 | $ 450 | $ 1,000 | $ 460 | $ 500 | $ 1,458 | $ 718 | |||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Common stock price per share | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | ||||||||||||||||||||||
Payment of note | $ 500 | $ 500 | $ 1,500 | |||||||||||||||||||||||||
Note payable | $ 718 | |||||||||||||||||||||||||||
Montse Zaman [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Note payable | $ 293 | |||||||||||||||||||||||||||
OCHC, LLC 4 [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | |||||||||||||||||||||
Payment of note | $ 500 | 500 | $ 1,500 | |||||||||||||||||||||||||
Note payable | $ 631 | |||||||||||||||||||||||||||
Maturity date, description | The note matures on January 18, 2019. | |||||||||||||||||||||||||||
OCHC, LLC 3 [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Note payable | $ 631 | |||||||||||||||||||||||||||
Mr. LeAndro [Member] | Convertible Promissory Note [Member] | On December 5, 2017 and January 4, 2018 [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 3,000 | |||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Common stock price per share | $ 0.50 | |||||||||||||||||||||||||||
Maturity date, description | The notes mature on December 5, 2018 and January 3, 2019 respectively. | |||||||||||||||||||||||||||
Montse Zaman [Member] | ||||||||||||||||||||||||||||
Maturity date, description | The notes mature on February 28, 2019, April 11, 2019 and June 7, 2019 respectively. | |||||||||||||||||||||||||||
Interest paid | $ 10 | $ 109 | ||||||||||||||||||||||||||
Montse Zaman [Member] | Convertible Promissory Note [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 760 | $ 700 | $ 1,300 | $ 40 | $ 25 | $ 400 | $ 20 | |||||||||||||||||||||
Interest Rate | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | |||||||||||||||||||||
Common stock price per share | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | |||||||||||||||||||||
Payment of note | 500 | $ 500 | $ 150 | $ 1,500 | $ 500 | $ 2,000 | ||||||||||||||||||||||
Munti Consulting LLC [Member] | Convertible Notes Payable [Member] | On October 3, 2018 and December 19, 2018 [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 35,000 | $ 10,000 | ||||||||||||||||||||||||||
Interest Rate | 10.00% | |||||||||||||||||||||||||||
Common stock price per share | $ 0.50 | |||||||||||||||||||||||||||
Non-converted notes | $ 853 | |||||||||||||||||||||||||||
OCHC, LLC [Member] | Convertible Notes Payable [Member] | On August 11, 2018, October 2, 2018, October 24, 2018, November 16, 2018 and December 4, 2018 [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 631 | |||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Common stock price per share | $ 0.50 | |||||||||||||||||||||||||||
Description of conversion price | At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. None of the notes were paid or converted and the interest in reference to each note are $29, $19, $14, $9 and $6 as of December 31, 2018 respectively. | |||||||||||||||||||||||||||
Arnulfo Saucedo-Bardan [Member] | Convertible Promissory Note [Member] | On March 11, 2017, and October 26, 2017 [Member] | ||||||||||||||||||||||||||||
Loan amount | $ 1,240 | $ 620 | ||||||||||||||||||||||||||
Interest Rate | 12.00% | |||||||||||||||||||||||||||
Common stock price per share | $ 0.50 | |||||||||||||||||||||||||||
Payment of note | $ 606 | |||||||||||||||||||||||||||
Note payable | 620 | |||||||||||||||||||||||||||
Remaining balance | $ 14 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Notes payable to related parties | $ 4,212 | |
Deferred revenue related party | $ 50,000 | |
Accounts payable to related party | 61,156 | 37,591 |
Preferred Stock, Value, Issued | ||
Convertible Related Party Notes Payable | 51,926 | |
Unamortized discount | 38,887 | 4,648 |
Monste Zaman [Member] | ||
Accounts payable to related party | 10,583 | |
VinotSambandam [Member] | ||
Accounts payable to related party | 27,008 | |
Directors and Officers [Member] | ||
Expenses on behalf related party | 5,830 | |
Reduction of expenses previously paid | 1,800 | |
Lease expense | $ 8,160 | $ 5,448 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock issued for services, Amount | $ 171,765 | $ 57,937 |
Common stock issued for services, shares | 316,252 | 30,998 |
Common stock issued for cash, Shares | 46,000 | 62,000 |
Common stock issued for cash, Amount | $ 23,000 | $ 31,000 |
Sale of Stock, Price Per Share | $ 0.50 | |
Common Stock Payable | $ 18,756 | |
Common stock issued upon conversion of debt, shares | 26,308 | |
Loss on settlement of debt | $ 39,462 | |
Common stock issued upon conversion of debt, amount | 13,153 | |
Accrued interest | $ 3,653 | |
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 450,000,000 | 450,000,000 |
2006 Equity Incentive Plan [Member] | ||
Common stock, shares authorized | 3,000,000 | |
Common stock, shares reserved for future issuance | 3,000,000 | |
Series A Preferred Stock [Member] | ||
Preferred stock, designated shares | 1,000 | |
Preferred stock, shares outstanding | 1,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
INCOME TAXES | ||
Net operating loss | $ 399,821 | $ 575,978 |
Valuation allowance | (399,821) | (575,978) |
Net deferred tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | ||
Accumulated net operating loss carry forward | $ 1,903,911 | $ 1,744,516 |
Description of expiration of operating loss carryforwards | Will begin to expire in the year 2032 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Sep. 03, 2019 | Dec. 04, 2018 | Oct. 02, 2018 | Jan. 04, 2018 | Dec. 05, 2017 | Aug. 08, 2017 | Jul. 07, 2017 | Aug. 01, 2019 | Jul. 01, 2019 | May 31, 2019 | Apr. 30, 2019 | Apr. 23, 2019 | Feb. 25, 2019 | Jan. 23, 2019 | Dec. 19, 2018 | Nov. 20, 2018 | Nov. 16, 2018 | Oct. 24, 2018 | Aug. 21, 2018 | Nov. 27, 2017 | Sep. 18, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock shares issued, amount | $ 23,000 | $ 31,000 | ||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 13,153 | |||||||||||||||||||||||
Common stock debt conversion shares issued, Shares | 26,308 | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||
Convertible preferred stock, terms of conversion | All notes with the exception of Munti Consulting, LLC have 10% annual interest, due within one year and are convertible at $0.50 per share. | |||||||||||||||||||||||
Common stock shares issued, shares | 229,377 | 116,000 | ||||||||||||||||||||||
Common stock shares issued, amount | $ 58,000 | |||||||||||||||||||||||
Subsequent Event [Member] | Munti Consulting [Member] | ||||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 35,000 | $ 10,000 | ||||||||||||||||||||||
Common stock debt conversion shares issued, Shares | 70,000 | 20,000 | ||||||||||||||||||||||
Common stock purchased shares, Amount | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 50,000 | ||||||||||||||||||
Common stock purchased shares, Shares | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 100,000 | ||||||||||||||||||
Subsequent Event [Member] | Mr. LeAndro [Member] | ||||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 3,000 | $ 3,000 | ||||||||||||||||||||||
Common stock debt conversion shares issued, Shares | 6,000 | 6,000 | ||||||||||||||||||||||
Common stock purchased shares, Amount | $ 3,000 | $ 2,000 | ||||||||||||||||||||||
Common stock purchased shares, Shares | 6,000 | 4,000 | ||||||||||||||||||||||
Subsequent Event [Member] | Kevin Wiltz [Member] | ||||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 1,500 | |||||||||||||||||||||||
Common stock debt conversion shares issued, Shares | 3,000 | |||||||||||||||||||||||
Subsequent Event [Member] | Chris Knudsen [Member] | ||||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 200 | $ 631 | $ 200 | |||||||||||||||||||||
Common stock debt conversion shares issued, Shares | 400 | 1,262 | 400 | |||||||||||||||||||||
Subsequent Event [Member] | OCHC [Member] | ||||||||||||||||||||||||
Common stock debt conversion shares issued, Amount | $ 631 | $ 631 | $ 631 | $ 631 | $ 631 | |||||||||||||||||||
Common stock debt conversion shares issued, Shares | 1,263 | 1,263 | 1,263 | 1,263 | 1,263 | |||||||||||||||||||
Subsequent Event [Member] | Glen J. Rineer [Member] | ||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 3,000 | |||||||||||||||||||||||
Common stock purchased shares, Shares | 6,000 | |||||||||||||||||||||||
Subsequent Event [Member] | 2017 and 2018 notes payable [Member] | ||||||||||||||||||||||||
Common stock shares issued, shares | 113,377 | |||||||||||||||||||||||
Debt conversion converted amount | $ 56,688 |