The following discussion and analysis should be read in conjunction with our
Financial Statements and the notes thereto, set forth in Item 8. "Financial
Statements" as set forth in our Annual Report on Form 10-K for the year ended
December 31, 2020, and the Condensed Consolidated Financial Statements and notes
thereto included in Part I of this Quarterly Report on Form 10-Q. The following
discussion may contain forward looking statements. For additional information,
see "Disclosure Regarding Forward Looking Statements" in Part I of this
Quarterly Report on Form 10-Q.
OVERVIEW
Crown Equity Holdings Inc. ("Crown Equity") was incorporated in August 1995 in
Nevada. The Company is offering its services to companies seeking to become
public entities in the United States. It has launched a website,
www.crownequityholdings.com, which offers its services in a wide range of
fields. The Company provides various consulting services to companies and
individuals dealing with corporate structure and operations globally. The
Company also provides public relations and news dissemination for publicly and
privately held companies.
In December 2010, the Company formed two wholly owned subsidiaries Crown Tele
Services, Inc. and CRWE Direct, Inc. Crown Tele Services, Inc. was formed to
provide voice over internet ("VoIP") services to clients at a competitive price
and Crown Direct, Inc. was formed to provide direct sales to customers. Both
entities had minimum sales during the quarter.
In March 2011, the Company formed a wholly owned subsidiary CRWE Real Estate,
Inc. as a subsidiary to engage in potential real estate holdings. The entity had
minimal activity during the quarter.
The Company has focused its primary vision to using its network of websites to
provide advertising and marketing services, as a worldwide online media
advertising publisher, dedicated to the distribution of quality branding
information. The Company offers Internet media-driven advertising services,
which cover and connect a wide range of marketing specialties, as well as search
engine optimization for clients interested in online media awareness. As part of
its operations, the Company has utilized the services of software and hardware
technicians in developing its websites and adding additional websites. This
allows the Company to disseminate news and press releases for its customers as
well as general news and financial information on a much bigger scale than it
did previously. The Company markets its services to companies seeking market
awareness of them and the services or goods that they offer. The Company then
publishes information concerning these companies on its many websites
Crown Equity's office is located at 11226 Pentland Downs Street, Las Vegas, NV
89141.
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As of June 30, 2021, Crown Equity has 4 employees and utilized the services of
one independent contractor and the following four officers, Mike Zaman, Kenneth
Bosket, Montse Zaman and Vinoth Sambandam.
RESULTS OF OPERATIONS
Three months ended June 30, 2021, Compared to the Three months ended June 30,
2020
For the three months ended June 30, 2021, revenues were $5,595 and $500 for the
same period in 2020.
Revenues for the three months ended June 30, 2021 was significantly higher
compared to the same period in 2020 primarily due to advertising income from
related parties earned, as well as for publishing and distributing during the
same period in 2020.
Operating expenses were $125,351 for the three months ended June 30,2021and
$321,069 for the same period in 2020. The decrease in operating expenses was
primarily due to a decrease in depreciation of ($6,206), as well as a decrease
in administrative services of ($189,512).
Other expenses for the three-month period ended June 30, 2021 were $35,821 and
$118,354 for the same quarter in 2020. The decrease in other expenses was due to
not having a loss on accounts payable settlement with related party.
Interest expense for the three months ended June 30, 2021 and 2020 was $2,308
and $3,007, respectively.
Six months ended June 30, 2021 Compared to the Six months ended June 30, 2020
For the six months ended June 30, 2021, revenues were $12,325 and $1,077 for the
same period in 2020. Revenues for the six months ended June 30, 2021 was higher
compared to the same period in 2020 primarily due to advertising income from
related parties earned in the same period in 2020.
Operating expenses were $264,415 for the six months ended June 30,2021 and
$372,497 for the same period in 2020. Increase in operating expenses was
primarily due to increase officer compensation, managerial services, accounting
services, IT services and administrative services.
Other expenses for the six-month period ended June 30, 2021, were $14,723 and
$549,041 for the same period in 2020. The decrease in other expenses was
primarily due to the recording of loss on shares issued to settle accounts
payable - related party.
Interest expense for six months ended June 30, 2021, and 2020 was $3,250 and
$6,707, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2021, Crown Equity had current assets of $173,694 and current
liabilities of $837,086 resulting in working capital deficit of $663,392. Net
cash used by operating activities for the six months ended June 30, 2021, was
$15,557 compared to net cash used of $29,891 for the same period in 2020.
Net cash used in investing activities was $0 and $0 for the six months ended
June 30, 2021, and 2020 respectively.
Net cash provided by financing activities during the six months ended June 30,
2021, was $15,372 compared to net cash provided of $33,929 for the same period
in 2020. For the six months ended June 30, 2021, we borrowed $27,949 from
related parties compared to $10,500 for the same period in 2020.
Our existing capital may not be sufficient to meet Crown Equity's cash needs,
including the costs of compliance with the continuing reporting requirements of
the Securities Exchange Act of 1934, as amended. This condition raises
substantial doubt as to Crown Equity's ability to continue as a going concern.
The financial statements do not include any adjustments that might be necessary
if Crown Equity is unable to continue as a going concern.
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