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, 2021, and the Condensed Consolidated Financial Statements and notes
thereto included in Part I of this Quarterly Report on Form 10-Q. The following
discussion may contain forward looking statements. For additional information,
see "Disclosure Regarding Forward Looking Statements" in Part I of this
Quarterly Report on Form 10-Q.
OVERVIEW
Crown Equity Holdings Inc. ("Crown Equity") was incorporated in August 1995 in
Nevada. The Company is offering its services to companies seeking to become
public entities in the United States. It has launched a website,
www.crownequityholdings.com, which offers its services in a wide range of
fields. The Company provides various consulting services to companies and
individuals dealing with corporate structure and operations globally. The
Company also provides public relations and news dissemination for publicly and
privately held companies.
In December 2010, the Company formed two wholly owned subsidiaries Crown Tele
Services, Inc. and
CRWE Direct, Inc. Crown Tele Services, Inc. was formed to provide voice over
internet ("VoIP") services to clients at a competitive price and Crown Direct,
Inc. was formed to provide direct sales to customers. Both entities had minimum
sales during the quarter.
In March, 2011, the Company formed a wholly owned subsidiary CRWE Real Estate,
Inc. as a subsidiary to engage in potential real estate holdings. The entity had
minimal activity during the quarter.
The Company has focused its primary vision to using its network of websites to
provide advertising and marketing services, as a worldwide online media
advertising publisher, dedicated to the distribution of quality branding
information. The Company offers Internet media-driven advertising services,
which cover and connect a wide range of marketing specialties, as well as search
engine optimization for clients interested in online media awareness. As part of
its operations, the Company has utilized the services of software and hardware
technicians in developing its websites and adding additional websites. This
allows the Company to disseminate news and press releases for its customers as
well as general news and financial information on a much bigger scale than it
did previously. The Company markets its services to companies seeking market
awareness of them and the services or goods that they offer. The Company then
publishes information concerning these companies on its many websites
Crown Equity's office is located at 11226 Pentland Downs Street, Las Vegas, NV
89141.
As of September 30, 2022, 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.
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RESULTS OF OPERATIONS
Three months ended September 30, 2022 Compared to the Three months ended
September 30, 2021
For the three months ended September 30, 2022, revenues were $126 and $3,061 for
the same period in 2021.
Revenues for the three months ended September 30, 2022 was lower primarily due
to the advertising revenue not earned through a related party during the same
period in 2021.
Operating expenses were $123,229 for the three months ended September 30, 2022
and $123,982 for the same period in 2021. The decrease in operating expenses
was primarily due to a decrease of $831 in the depreciation.
Other expenses for the three-month period ended September 30, 2022 were $1,922
and $20,097 for the same quarter in 2021. The decrease in other expenses was
primarily due to loss on stock held.
Interest expense for the three months ended September 30, 2022 and 2021 was
$1,922 and $2,216, respectively.
Nine months ended September 30, 2022 Compared to the Nine months ended September
30, 2021
For the nine months ended September 30, 2022, revenues were $2,833 and $15,386
for the same period in 2021. Revenues for the nine months ended September 30,
2021 was significantly lower compared to the same period in 2021 primarily due
to advertising income from related parties earned in the same period in 2021.
Operating expenses were $377,736 for the nine months ended September 30, 2022
and $388,397 for the same period in 2021. Decrease in operating expenses was
primarily due to the decrease administrative services.
Other expenses for the nine-month period ended September 30, 2022 were $260,545
and $5,374 for the same period in 2021. The increase in other expenses was
primarily due to the recording of loss on stock held.
Interest expense for nine months ended September 30, 2022 and 2021 was $3,360
and $5.466, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2022, Crown Equity had current assets of $6,804 and current
liabilities of $1,306,789 resulting in working capital deficit of $1,299,985.
Net cash used by operating activities for the nine months ended September 30,
2021 was $72,439 compared to net cash used of $7,555 for the same period in
2021.
Net cash provided byinvesting activities was $67,000 and $0.00 for the nine
months ended September 30, 2022 and 2021, respectively.
Net cash provided by financing activities during the nine months ended September
30, 2022 was $7,923compared to net cash provided of $7,686 for the same period
in 2021. For the nine months ended September 30, 2022, we borrowed $19,500 from
related parties. We also sold 28,000 shares of common stock for $14,000 during
the nine months ended September 30, 2022
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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