UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2024

 

OR

 

TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ____________

 

Commission File Number 000-29935

 

CROWN EQUITY HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

33-0677140

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

11226 Pentland Downs Street, Las Vegas, NV 89141

(Address of principal executive offices)

 

(702) 683-8946

(Issuer’s telephone number)

 

Indicate by check mark whether the Company (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

 

Emerging growth company

 

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

 

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No

 

As of June 06, 2024, the number of shares outstanding of the registrant’s class of common stock was 15,814,800.

 

 

 

TABLE OF CONTENTS

 

 

Page

 

PART I: FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 (Audited)

4

 

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (Unaudited)

5

 

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2024 and 2023 (Unaudited)

 

6

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited)

7

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

18

 

Item 2.

Management’s Discussion and Analysis and Plan of Operation

19

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

19

 

Item 4T.

Controls and Procedures

 

 

PART II: OTHER INFORMATION

 

Item 1.

Legal Proceedings

20

 

 

Item 1A.

Risk Factors

20

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

20

 

 

 

Item 3.

Defaults upon Senior Securities

20

 

 

Item 4.

Mine Safety Information

20

 

 

Item 5.

Other Information

20

 

 

Item 6.

Exhibits

21

 

 

Signatures

22

 

 
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Table of Contents

 

PART I. FINANCIAL INFORMATION

 

DEFINITIONS

 

In this Quarterly Report on Form 10-Q, the words “Crown Equity”, the “Company”, the “Registrant”, “we”, “our”, “ours” and “us” refer to Crown Equity Holdings, Inc.

 

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q includes certain statements that may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to:

 

 

·

the possibility that certain tax benefits of our net operating losses may be restricted or reduced in a change in ownership or a further change in the federal tax rate;

 

 

 

 

·

the inability to carry out plans and strategies as expected

 

 

 

 

·

limitations on the availability of sufficient credit or cash flow to fund our working capital needs and capital expenditures and debt service;

 

 

 

 

·

difficulty in fulfilling the terms of our convertible note payables, which could result in a default and acceleration of our indebtedness under our convertible note payables;

 

 

 

 

·

the possibility that we issue additional shares of common stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the book value per share of our common stock;

 

 

 

 

·

the relatively low trading volume of our common stock, which could depress our stock price;

 

 

 

 

·

competition in the industries in which we operate, both from third parties and former employees, which could result in the loss of one or more customers or lead to lower margins on new projects;

 

 

 

 

·

a general reduction in the demand for our services;

 

 

 

 

·

our ability to enter into, and the terms of, future contracts;

 

 

 

 

·

uncertainties inherent in estimating future operating results, including revenues, operating income or cash flow;

 

 

 

 

·

complications associated with the incorporation of new accounting, control, and operating procedures;

 

 

 

 

·

the recognition of tax benefits related to uncertain tax positions;

 

You should understand that the foregoing, as well as other risk factors discussed in this document and in Part I, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. We undertake no obligation to publicly update or revise any information, including information concerning our controlling shareholder, net operating losses, borrowing availability or cash position, or any forward-looking statements to reflect events or circumstances that may arise after the date of this report. Forward-looking statements are provided in this Quarterly Report on Form 10-Q pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties, and risks described herein.

 

 
3

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

March 31,

2024

 

 

December 31,

2023

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$7,906

 

 

$6,739

 

Total Current Assets

 

 

7,906

 

 

 

6,739

 

Property and Equipment, net

 

 

-

 

 

 

-

 

Total Assets

 

$7,906

 

 

$6,739

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$159,258

 

 

$163,766

 

Accounts payable and accrued expenses to related party

 

 

21,340

 

 

 

1,202,020

 

Notes payable to related parties

 

 

106,800

 

 

 

83,800

 

Convertible notes payable to related parties, net of debt discount

 

 

16,600

 

 

 

26,600

 

Deferred revenue

 

 

155

 

 

 

-

 

Total Current Liabilities

 

 

304,153

 

 

 

1,476,186

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Long-term debt

 

 

-

 

 

 

-

 

Total Liabilities

 

 

304,153

 

 

 

1,476,186

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding at March 31, 2024 and December 31, 2023

 

 

1

 

 

 

1

 

Common Stock, 450,000,000 authorized at $0.001 par value; and 15,814,800 and 13,396,226 shares issued and outstanding at March 31, 2024 and December 31, 2023

 

 

15,812

 

 

 

13,395

 

Additional paid-in capital

 

 

18,290,208

 

 

 

13,458,331

 

Accumulated deficit

 

 

(18,602,268 )

 

 

(14,941,174 )

Total stockholders' deficit

 

 

(296,247 )

 

 

(1,469,447 )

Total liabilities and stockholders' deficit

 

$7,906

 

 

$(6,739 )

 

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

 

 
4

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

For the Three Months

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Revenue

 

 

301

 

 

 

-

 

Total Revenue

 

 

301

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Depreciation

 

 

-

 

 

 

996

 

General and Administrative

 

 

1,287,376

 

 

 

22,304

 

Total Operating Expenses

 

 

1,287,376

 

 

 

23,300

 

 

 

 

 

 

 

 

 

 

Net Operating Income (Loss)

 

 

(1,287,075)

 

 

(23,300 )

 

 

 

 

 

 

 

 

 

Other (expense)

 

 

 

 

 

 

 

 

     Interest expense

 

 

(3,372 )

 

 

(1,125 )

Gain (Loss) on Related Party AP Conversion

 

 

(2,311,977

 

 

-

 

Gain (Loss) on AP Conversion

 

 

(24,500

)

 

 

-

 

Other Income (Expense)

 

 

10

 

 

 

-

 

Loss on Debt Conversion

 

 

(34,181

)

 

 

-

 

Total other expense

 

 

(2,374,019)

 

 

(1,125 )

 

 

 

 

 

 

 

 

 

Net (loss)

 

$(3,661,094 )

 

$(24,425 )

 

 

 

 

 

 

 

 

 

Net (loss) per common share – basic and diluted

 

$(0.25 )

 

$(0.00 )

Weighted average number of common shares outstanding - basic and diluted

 

 

14,460,725

 

 

 

13,385,047

 

 

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

 

 
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Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(Unaudited)

 

For the Three Months Ended March 31, 2024

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

 Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

 Capital

 

 

Deficit

 

 

(Deficit)

 

Balances at December 31, 2023

 

 

1,000

 

 

$1

 

 

 

13,396,226

 

 

$13,395

 

 

 

-

 

 

$13,458,331

 

 

$(14,941,174)

 

$(1,469,447)

Common Stock issued for Related Party Accrued expenses and AP Conversion settlement

 

 

 

 

 

 

 

 

 

 

2,359,160

 

 

 

2,359

 

 

 

 

 

 

 

3,489,198

 

 

 

 

 

 

 

3,491,557

 

Common Stock issued for services

 

 

 

 

 

 

 

 

 

 

10,000

 

 

 

9

 

 

 

 

 

 

 

14,791

 

 

 

 

 

 

 

14,800

 

Common Stock issued for Note Payable and Interest

 

 

 

 

 

 

 

 

 

 

24,414

 

 

 

24

 

 

 

 

 

 

 

46,363

 

 

 

 

 

 

 

46,387

 

Common Stock issued for Accounts Payable settlement

 

 

 

 

 

 

 

 

 

 

 25,000

 

 

 

25

 

 

 

 

 

 

 

36,975

 

 

 

 

 

 

 

 37,000

 

Warrant Subscriptions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,244,550

 

 

 

 

 

 

 

1,244,550

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,661,094)

 

 

(3,661,094)

Balances at March 31, 2024

 

 

1,000

 

 

$1

 

 

 

15,814,800

 

 

$15,812

 

 

 

-

 

 

$18,290,208

 

 

$(18,602,268)

 

$(296,247)

 

For the Three Months Ended March 31, 2023

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

 Total 

Stockholders' 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Payable

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balances at December 31, 2022

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,384

 

 

 

-

 

 

$12,763,126

 

 

$(14,156,842)

 

$(1,380,331)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(24,425)

 

 

(24,425)

Balances at March 31, 2023

 

 

1,000

 

 

$1

 

 

 

13,385,047

 

 

$13,338

 

 

 

-

 

 

$12,763,126

 

 

$(14,181,267)

 

$(1,404,756)

 

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

 

 
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Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss)

 

$(3,661,094 )

 

$(24,425 )

Depreciation

 

 

-

 

 

 

996

 

Shares issued for services

 

 

14,800

 

 

 

-

 

Loss on RP AP Conversion

 

 

2,311,977

 

 

 

-

 

Loss on AP Conversion

 

 

24,500

 

 

 

-

 

Stock Comp Expense

 

 

1,244,525

 

 

 

-

 

Loss on Debt Conversion

 

 

34,180

 

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses – related party

 

 

(1,100 )

 

 

(2,350)

Accounts payable and accrued expenses

 

 

10,199

 

 

 

(318 )

Deferred revenue

 

 

155

 

 

 

-

 

Net cash (used in) operating activities

 

 

(21,858 )

 

 

(26,097 )

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Cash withdrawn from brokerage account

 

 

-

 

 

 

-

 

Net cash provided by investing activities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payments on convertible notes payable, related party

 

 

-

 

 

 

(1,318 )

Borrowings from convertible notes payable, related party

 

 

23,000

 

 

 

14,600

 

Borrowings from notes payable, related party

 

 

-

 

 

 

18,000

 

Principal payments on debt

 

 

 -

 

 

 

(782 )

Warrant Subscription

 

 

 25

 

 

 

 -

 

Net cash provided by financing activities

 

 

23,025

 

 

 

30,500

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

1,167

 

 

 

4,403

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

6,739

 

 

 

2,930

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$7,906

 

 

$7,333

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income taxes paid

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

RP-AP Converted into common stock

 

$1,179,580

 

 

$-

 

AP Converted into common stock

 

$12,500

 

 

$-

 

RP Note Payable and Interest Converted into common stock

 

$12,207

 

 

 -

 

 

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

 

 
7

Table of Contents

 

CROWN EQUITY HOLDINGS, INC.

 NOTES FINANCIAL STATEMENTS

 

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

 

Nature of Business

 

Crown Equity Holdings Inc. (“Crown Equity” or the “Company”) was incorporated in August 1995 in Nevada. The Company offers through its digital network of websites, advertising branding, marketing solutions and other services to boost customer awareness, as well as merchant visibility as a worldwide online multi-media publisher. The Company focuses on the distribution of information for the purpose of bringing together its audience with the advertisers that want to reach them. Its advertising services cover and connect a range of marketing specialties, as well as provide search engine optimization for clients interested in online media awareness. Crown Equity Holdings' objective is to make 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.

 

Basis of Preparation

 

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

 

Reclassifications

 

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

 

Adoption of New Accounting Standard

 

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

 

Use of Estimates

 

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

 

Cash and Cash Equivalents

 

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

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. 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.

 

 
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Table of Contents

 

Revenue Recognition

 

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

 

1.

Identify the contract with the customer

 

 

 

 

 

Contracts 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 agree and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.

Determine the transaction price

 

 

 

 

 

Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer.

 

4.

Allocate the transaction price to the performance obligations in the contract

 

 

 

 

 

If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase.

 

5.

Recognize revenue when (or as) we satisfy a performance obligation

 

 

 

 

 

The Company uses digital marketing that includes digital advertising, SEO management and digital ad support. We provide whether presenting a vibrant but simple message about our clients that will enlighten their audience or deploying an influential digital marketing campaign on our online site or across one or multiple social media platforms. Revenue is recognized when ads are run on the Company’s advertising platform.

 

The company generates analytical reports monthly or as required to show how the ad dollars were spent and how the targeting resulted in click-through. The report satisfies the performance obligation, regardless of the outcome or effectiveness of the campaign.

  

Sales are recognized when promised services are started in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Sales for service contracts generally are recognized as the services that are being provided.

 

 

 

Three Months Ended

March 31, 2024

 

 

Three Months Ended

March 31, 2023

 

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

 Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Click Based and Impressions Ads

 

 

146

 

 

 

-

 

 

 

146

 

 

 

-

 

 

 

-

 

 

 

-

 

Publishing and Distribution

 

 

155

 

 

 

-

 

 

 

155

 

 

 

-

 

 

 

-

 

 

 

-

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$301

 

 

$-

 

 

$301

 

 

$-

 

 

$-

 

 

$-

 

 

 
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Table of Contents

 

Revenues are received through click-based, and impression ads located on the Company’s websites, as well as from the publishing and disseminating of news and press releases.

 

 

 

Mar 31,

 

 

Mar 31

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Deferred Revenue

 

$155

 

 

$-

 

 

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

 

Accounts Receivable and Allowance for Doubtful Accounts

 

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, the current aging status of the customer accounts, and the financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of March 31, 2024 and December 31, 2023. 

 

Risk Concentrations

 

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

 

During the three-month period ending March 31, 2024, 51% of the Company's revenues were from the publishing and distribution of a press release. The remaining 49% of the revenue earned was received from the displaying of click-based and impressions ads on the company's online sites. All revenue earned was through a third party. 

 

General and Administrative Expenses

 

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2024 and 2023. Compensation expenses, auto, travel and entertainment, legal and accounting, utilities, web sites, office expenses, depreciation, and other administrative related expenses.

 

Property and Equipment

 

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on the disposition of equipment are reflected in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

 

Impairment of Long-Lived Assets

 

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses the recoverability of 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 of the expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2024 or 2023.

 

Basic and Diluted Net (Loss) per Share

 

                                                                                                                                                                                                                                                                                                       

 

 

   Three Months

 

 

   Three Months

 

 

 

      Mar 31, 2024  

 

 

Mar 31, 2023

 

Numerator:

 

 

 

 

 

 

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

 

$(2,346,839 )

 

$(24,425 )

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

 

$(2,346,839 )

 

$(24,425 )

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

14,460,725

 

 

 

13,385,047

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.16 )

 

$(0.00 )

Diluted

 

$(0.16 )

 

$(0.00 )

 

 
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When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the periods ended March 31, 2024 and 2023. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended March 31, 2024 is 25,900,000 and March 31, 2023, 21,400,000.

 

Income Taxes

 

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal 2020 and 2021 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of March 31, 2024, and December 31, 2023, the Company has not reflected any amounts as a deferred tax asset due to the uncertainty of future profits to offset any net operating loss.

 

The Company’s deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023:

 

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

 

-

 

 

 

-

 

 

Uncertain tax position

 

The Company also follows guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of March 31, 2024 and December 31, 2023.

 

Fair Value of Financial Instruments

 

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

 

Research and Development

 

The Company spent no money for research and development costs for the period ended March 31, 2024 and year ended December 31, 2023.

 

Advertising Cost

 

The Company spent $0 for advertisement for the periods ended March 31, 2024 and March 31, 2023.

 

NOTE 2 – GOING CONCERN

 

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $18,602,268 since its inception and had a working capital deficit of $296,247 negative cash flows from operations and limited business operations as of March 31, 2024. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

 

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

 

 
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NOTE 3 – PROPERTY AND EQUIPMENT

 

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

 

Property consists of the following at March 31, 2024 and December 31, 2023:

 

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Computers – 3 year estimated useful life

 

$108,622

 

 

$108,622

 

Less – Accumulated Depreciation

 

 

(108,622 )

 

 

(108,622 )

Property and Equipment, net

 

$-

 

 

$-

 

 

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $0.00, and $996 for the three months ended March 31, 2024 and 2023, respectively.

 

NOTE 4 – FINANCE LEASES

 

As of the three-month period ending March 31, 2024 there were no finance lease transactions.

 

NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

 

As of March 31, 2024, and December 31, 2023, the Company had unamortized discounts of $0 and $0 respectively.

 

The Company analyzed the below convertible notes for derivatives noting none.

 

Name    

 

Original

Note Date

 

Due

Date

 

Interest

Rate

 

 

Conversion

Rate

 

 

March 31,

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman Irrevocable Trust

 

03/23/2023

 

03/23/2024

 

 

12%

 

$-

 

 

 

18,000

 

Mike Zaman Irrevocable Trust

 

05/08/2023

 

05/08/2024

 

 

12%

 

$-

 

 

 

5,800

 

Mike Zaman Irrevocable Trust

 

06/02/2023

 

06/02/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

06/20/2023

 

06/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman

 

07/18/2023

 

07/18/2024

 

 

12%

 

$-

 

 

 

15,000

 

Mike Zaman Irrevocable Trust

 

08/04/2023

 

08/04/2024

 

 

12%

 

$-

 

 

 

12,000

 

Mike Zaman Irrevocable Trust

 

09/20/2023

 

09/20/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

09/22/2023

 

09/22/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

09/23/2023

 

09/23/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

10/20/2023

 

10/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman Irrevocable Trust

 

11/06/2023

 

11/06/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

12/12/2023

 

12/12/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

02/01/2024

 

02/01/2025

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

03/21/2024

 

03/21/2025

 

 

12%

 

$-

 

 

 

2,000

 

Mike Zaman Irrevocable Trust

 

03/25/2024

 

03/25/2025

 

 

12%

 

$-

 

 

 

11,000

 

Total Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamie Hadfield

 

04/07/2022

 

04/07/2023

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman Irrevocable Trust

 

12/25/2022

 

12/25/2023

 

 

12%

 

$0.50

 

 

 

2,000

 

Mike Zaman

 

01/11/2023

 

01/11/2024

 

 

12%

 

$0.50

 

 

 

1,100

 

Mike Zaman Irrevocable Trust

 

01/23/2023

 

01/23/2024

 

 

12%

 

$0.50

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

01/31/2023

 

01/31/2024

 

 

12%

 

$0.50

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

02/14/2023

 

02/14/2024

 

 

12%

 

$0.50

 

 

 

10,000

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,600

 

 

 
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Table of Contents

 

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

 

Jamie Hadfield

 

On April 7, 2022, the Company entered into a convertible promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12%. On February 09, 2024, the note was paid in full with the issuance of 24,414 restricted shares of common stock for conversion of the note payable at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $34,180. As of March 31, 2024, the principal balance on this note was $0.00.

 

Mike Zaman

 

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,100.

 

On July 18, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $15,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $15,000.

 

Mike Zaman Irrevocable Trust

 

On December 25, 2022, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

March On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $18,000.

 

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $5,800.

 

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On August 04, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $12,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $12,000.

 

 
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Table of Contents

 

On September 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On September 22, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On September 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On October 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On November 06, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On December 12, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On February 01, 2024 the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 21, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On March 25, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $11,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $11,000.

 

NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

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

 

The Company agreed to pay the automobile lease of $395 and $278 a month, on a month-to-month basis and can be cancelled at any time but expects to continue lease payments for the full 2024 year.

 

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.

 

Jamie Hadfield

 

On April 7, 2022, the Company entered into a convertible promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12%. On February 09, 2024, the note was paid in full with interest. As of March 31, 2024, the principal balance on this note was $0.00.

 

Mike Zaman

 

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,100.

 

On July 18, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $15,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $15,000.

 

Mike Zaman Irrevocable Trust

 

On December 25, 2022, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

 
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Table of Contents

 

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

March On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $18,000.

 

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $5,800.

 

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On August 04, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $12,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $12,000.

 

On September 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On September 22, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On September 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On October 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On November 06, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On December 12, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On February 01, 2024 the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 21, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On March 25, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $11,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $11,000.

 

The Company periodically receives operating funds advanced from related parties which are documented with notes payable or convertible notes payable. Additionally, the Company related parties cover account payables by direct payment of the account payables which are also documented with notes payable or convertible notes payable. As of March 31, 2024, the total convertible notes and non-convertible notes from related parties were $106,800 and $16,600, respectfully. 

 

 
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Table of Contents

 

NOTE 8 – STOCKHOLDERS’ DEFICIT

 

Common Stock

 

During the three months ending March 31, 2024, the Company issued 2,359,160 shares of common stock for accrued expenses, 25,000 shares for account payable, 10,000 shares for services, and 24,414 shares for a note payable as follows:

 

 

·

On February 9, 2024, the Company issued 24,414 restricted shares of common stock for conversion of a note payable of $10,000 at 12% interest to Jamie Hadfield at a conversion rate of fifty cents ($0.50) per share for the total note amount owed. The share price on conversion date was $1.48, which attributed to a loss of $34,180.

 

 

 

 

·

On February 20, 2024, the Company issued 1,439,300 restricted shares of common stock for conversion of  $719,650 in accrued expenses to Mike Zaman at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $1,410,514.

 

 

 

 

·

On February 20, 2024, the Company issued 278,160 restricted shares of common stock for conversion of a $139,080 in accrued expenses to Arnulfo Saucedo-Bardan at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $272,597.

 

 

 

 

·

On February 20, 2024, the Company issued 301,700 restricted shares of common stock for conversion of $150,850 in accrued expenses  to Kenneth Bosket at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $295,666.

 

 

 

 

·

On February 20, 2024 the Company issued 340,000 restricted shares of common stock for conversion of $170,000 in accrued expenses to Montse Zaman at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $333,200.

 

 

 

 

·

On February 20, 2024, the Company issued 25,000 restricted shares of common stock for conversion of a $12,500 account payable to Cloud Network Systems Inc. at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $24,500.

 

 

 

 

·

On February 20, 2024 the Company issued 10,000 restricted shares of common stock for $14,800 for services to Vinoth Sambandam. The original amount owed was $5,000. The company converted the amount owed at a rate of fifty cents ($0.50) per share. The share price on conversion date was $1.48, which attributed to a loss of $9,800.

 

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 March 31, 2024.

 

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 March 31, 2024, the Company has 1,000 shares of Series A Preferred Stock outstanding.

 

Warrants

 

On February 26, 2024, the Company granted a non-qualified stock warrants purchase of 1,000,000 shares of common stock. The Warrant is exercisable, at the option of the holder at an exercise price of $0.60 per share. The fair value of warrant is estimated on the date of grant using the Black Scholes pricing model with the following weighted-average assumptions used for the warrant under the plan.

 

Average risk-free rate: 5.48%

Average expected life (in years): 0.59 years

Volatility: 419%

 

 

 

Number of

 

 

Exercise

 

 

 

Warrants

 

 

Price

 

Balance, December 31, 2023

 

 

24,900,000

 

 

$0.60

 

Issued

 

 

1,000,000

 

 

 

0.60

 

Exercised

 

 

-

 

 

 

-

 

Balance, March 31, 2024

 

 

25,900,000

 

 

 

0.60

 

   

 
16

Table of Contents

 

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 2023

 

The Company's deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

$-

 

 

$-

 

 

As of March 31, 2024, and December 31, 2023, the Company's accumulated net operating loss carry forward was approximately $4,351,345 and $4,351,345 respectively and will begin to expire in the year 2032. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%.

 

NOTE 10 – SUBSEQUENT EVENTS

 

On May 14, 2024, the Company entered into a promissory note with Mike Zaman in the amount of $4,500 at an interest rate of 12%.

 

Management has analyzed its operations for subsequent events to June 06, 2024, the date these Financial Statements were issued. 

 

 
17

Table of Contents

 

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS

 

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, 2023, 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.

 

During the period ending March 31, 2024, the Company utilized the services of independent contractors and its following officers, Mike Zaman, Kenneth Bosket, and Montse Zaman,

 

RESULTS OF OPERATIONS

 

Three months ended March 31, 2024 Compared to the Three months ended March 31, 2023

 

For the three months ended March 31, 2024, revenues were $301, and $0.00 for the same period ended in 2023.

 

Revenues for the three months ended March 31, 2024 were higher than March 31, 2023 primarily due to earned revenues through click-based, and impression ads, and the publishing and disseminating of a press release.

 

Operating expenses were $1,287,376 for the three months ended March 31, 2024 and $23,300 for the same period in 2023. The increase in operating expenses was primarily due to an increase of $1,264,076 in general expenses such as auditing and website development.

 

Other expenses for the three-month period ended March 31, 2024 were $2,374,019 and $1,125 for the same quarter in 2023. The increase in other expenses was primarily due to a loss on Related Party Account Payable Conversions for $2,344,977.

 

Interest expenses for the three months ended March 31, 2024 and 2023 were $3,372 and $1,125, respectively.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of March 31, 2024, Crown Equity had current assets of $7,906 and current liabilities of $304,153 resulting in a working capital deficit of $296,247. Net cash used by operating activities for the three months ended March 31, 2024 was $21,858 compared to net cash used of $26,097 for the same period in 2023.

 

For the three months ended March 31, 2024, we borrowed $23,000 from related parties.

 

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.

 

 
18

Table of Contents

 

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

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

 

ITEM 4: CONTROLS AND PROCEDURES

 

(a) Evaluation of Disclosure Controls and Procedures

 

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the “Exchange Act”), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of material weaknesses in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weaknesses relate to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO and CFO also do not possess accounting expertise and our company does not have an audit committee. These material weaknesses are due to the company’s lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
19

Table of Contents

 

PART II – OTHER INFORMATION

 

ITEM 1: LEGAL PROCEEDINGS.

 

None

 

ITEM 1A: RISK FACTORS.

 

There have been no material changes to Crown Equity’s risk factors as previously disclosed in our most recent 10-K filing for the year ended December 31, 2023.

 

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

During the three months ended March 31, 2024, Crown Equity did not issue any shares of common stock for operating capital.

 

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

 

None

 

ITEM 4: MINE SAFETY INFORMATION.

 

None

 

ITEM 5: OTHER INFORMATION.

 

None

 

 
20

Table of Contents

 

ITEM 6: EXHIBITS

 

EXHIBIT 31.1

 

Certification of Principal Executive Officer

 

EXHIBIT 31.2

 

Certification of Principal Financial Officer

 

EXHIBIT 32.1

 

Certification of Compliance to Sarbanes-Oxley

 

EXHIBIT 32.2

 

Certification of Compliance to Sarbanes-Oxley

 

101.INS **

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

 

101.SCH **

 

Inline XBRL Taxonomy Extension Schema Document.

 

101.CAL **

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 

101.DEF **

 

Inline XBRL Taxonomy Extension Definition Linkbase Document.

 

101.LAB **

 

Inline XBRL Taxonomy Extension Labels Linkbase Document.

 

101.PRE **

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

 

 

 

104**

 

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

________________

**

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

 
21

Table of Contents

 

SIGNATURES

 

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

CROWN EQUITY HOLDINGS INC.

 

Date: June 06, 2024

By:

/s/ Mike Zaman

 

Mike Zaman, CEO

Date: June 06, 2024

By:

/s/ Kenneth Bosket

 

Kenneth Bosket, CFO

 

 
22

 

nullnullnullnullv3.24.1.1.u2
Cover - shares
3 Months Ended
Mar. 31, 2024
Jun. 06, 2024
Cover [Abstract]    
Entity Registrant Name CROWN EQUITY HOLDINGS INC.  
Entity Central Index Key 0001103833  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Mar. 31, 2024  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Entity Common Stock Shares Outstanding   15,814,800
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-29935  
Entity Incorporation State Country Code NV  
Entity Tax Identification Number 33-0677140  
Entity Address Address Line 1 11226 Pentland Downs Street  
Entity Address City Or Town Las Vegas  
Entity Address State Or Province NV  
Entity Address Postal Zip Code 89141  
City Area Code 702  
Local Phone Number 683-8946  
Entity Interactive Data Current Yes  
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Current assets    
Cash $ 7,906 $ 6,739
Total Current Assets 7,906 6,739
Property and Equipment, net 0 0
Total Assets 7,906 6,739
Current liabilities    
Accounts payable and accrued expenses 159,258 163,766
Accounts payable and accrued expenses to related party 21,340 1,202,020
Notes payable to related parties 106,800 83,800
Convertible notes payable to related parties, net of debt discount 16,600 26,600
Deferred revenues 155 0
Total Current Liabilities 304,153 1,476,186
Non-Current liabilities    
Long-term debt 0 0
Total Liabilities 304,153 1,476,186
Stockholders' deficit    
Common Stock, 450,000,000 authorized at $0.001 par value; and 15,814,800 and 13,396,226 shares issued and outstanding at March 31, 2024 and December 31, 2023 15,812 13,395
Additional paid-in capital 18,290,208 13,458,331
Accumulated deficit (18,602,268) (14,941,174)
Total stockholders' deficit (296,247) (1,469,447)
Total liabilities and stockholders' deficit 7,906 6,739
Series A Convertible Preferred Stock [Member]    
Stockholders' deficit    
Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding at March 31, 2024 and December 31, 2023 $ 1 $ 1
v3.24.1.1.u2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2024
Dec. 31, 2023
Common stock, shares authorized 450,000,000 450,000,000
Common stock, shares par value $ 0.001 $ 0.001
Common stock, shares issued 15,814,800 13,396,226
Common stock, shares outstanding 15,814,800 13,396,226
Series A Convertible Preferred Stock [Member]    
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
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenues    
Revenue $ 301 $ 0
Total Revenue 301 0
Operating expenses    
Depreciation 0 996
General and Administrative 1,287,376 22,304
Total Operating Expenses 1,287,376 23,300
Net Operating Income (Loss) (1,287,075) (23,300)
Other (expense)    
Interest expense (3,372) (1,125)
Gain (Loss) on Related Party AP Conversion (2,311,977) 0
Gain (Loss) on AP Conversion (24,500) 0
Other Income (Expense) 10 0
Loss on Debt Conversion (34,181) 0
Total other expense (2,374,019) (1,125)
Net (loss) $ (3,661,094) $ (24,425)
Net (loss) per common share - basic and diluted $ (0.25) $ (0.00)
Weighted average number of common shares outstanding - basic and diluted 14,460,725 13,385,047
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)
Total
Preferred Stock
Common Stock
Common Stock Payable
Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2022   1,000 13,385,047      
Balance, amount at Dec. 31, 2022 $ (1,380,331) $ 1 $ 13,384 $ 0 $ 12,763,126 $ (14,156,842)
Net loss (24,425) $ 0 $ 0 0 0 (24,425)
Balance, shares at Mar. 31, 2023   1,000 13,385,047      
Balance, amount at Mar. 31, 2023 (1,404,756) $ 1 $ 13,338 0 12,763,126 (14,181,267)
Balance, shares at Dec. 31, 2023   1,000 13,396,226      
Balance, amount at Dec. 31, 2023 (1,469,447) $ 1 $ 13,395 0 13,458,331 (14,941,174)
Net loss (3,661,094) $ 0 $ 0 0 0 (3,661,094)
Common Stock issued for Related Party Accrued expenses and AP Conversion settlement, shares     2,359,160      
Common Stock issued for Related Party Accrued expenses and AP Conversion settlement, amount $ 3,491,557   $ 2,359   3,489,198  
Common Stock issued for services, shares 10,000   10,000      
Common Stock issued for services, amount $ 14,800   $ 9   14,791  
Common Stock issued for Note Payable and Interest, shares     24,414      
Common Stock issued for Note Payable and Interest, amount 46,387   $ 24   46,363  
Common Stock issued for Accounts Payable settlement, Shares     25,000      
Common Stock issued for Accounts Payable settlement, amount 37,000   $ 25   36,975  
Warrant Subscriptions 1,244,550       1,244,550  
Balance, shares at Mar. 31, 2024   1,000 15,814,800      
Balance, amount at Mar. 31, 2024 $ (296,247) $ 1 $ 15,812 $ 0 $ 18,290,208 $ (18,602,268)
v3.24.1.1.u2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities    
Net (loss) $ (3,661,094) $ (24,425)
Depreciation 0 996
Shares issued for services 14,800 0
Loss on RP AP Conversion 2,311,977 0
Loss on AP Conversion 24,500 0
Stock Comp Expense 1,244,525 0
Loss on Debt Conversion 34,180 0
Changes in operating assets and liabilities    
Accounts payable and accrued expenses - related party (1,100) (2,350)
Accounts payable and accrued expenses 10,199 (318)
Deferred revenue 155 0
Net cash (used in) operating activities (21,858) (26,097)
Cash flows from investing activities    
Cash withdrawn from brokerage account 0 0
Net cash provided by investing activities 0 0
Cash flows from financing activities    
Payments on convertible notes payable, related party 0 (1,318)
Borrowings from convertible notes payable, related party 23,000 14,600
Borrowings from notes payable, related party 0 18,000
Principal payments on debt 0 (782)
Warrant Subscription 25 0
Net cash provided by financing activities 23,025 30,500
Net increase (decrease) in cash 1,167 4,403
Cash, beginning of period 6,739 2,930
Cash, end of period 7,906 7,333
SUPPLEMENTAL DISCLOSURE:    
Interest paid 0 0
Income taxes paid 0 0
NONCASH INVESTING AND FINANCING ACTIVITIES    
RP-AP Converted into common stock 1,179,580 0
AP Converted into common stock 12,500 0
RP Note Payable and Interest Converted into common stock $ 12,207 $ 0
v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2024
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES  
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 to make 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.

 

Basis of Preparation

 

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

 

Reclassifications

 

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

 

Adoption of New Accounting Standard

 

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

 

Use of Estimates

 

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

 

Cash and Cash Equivalents

 

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

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. 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

 

 

 

 

 

Contracts 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 agree and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.

Determine the transaction price

 

 

 

 

 

Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer.

 

4.

Allocate the transaction price to the performance obligations in the contract

 

 

 

 

 

If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase.

 

5.

Recognize revenue when (or as) we satisfy a performance obligation

 

 

 

 

 

The Company uses digital marketing that includes digital advertising, SEO management and digital ad support. We provide whether presenting a vibrant but simple message about our clients that will enlighten their audience or deploying an influential digital marketing campaign on our online site or across one or multiple social media platforms. Revenue is recognized when ads are run on the Company’s advertising platform.

 

The company generates analytical reports monthly or as required to show how the ad dollars were spent and how the targeting resulted in click-through. The report satisfies the performance obligation, regardless of the outcome or effectiveness of the campaign.

  

Sales are recognized when promised services are started in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Sales for service contracts generally are recognized as the services that are being provided.

 

 

 

Three Months Ended

March 31, 2024

 

 

Three Months Ended

March 31, 2023

 

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

 Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Click Based and Impressions Ads

 

 

146

 

 

 

-

 

 

 

146

 

 

 

-

 

 

 

-

 

 

 

-

 

Publishing and Distribution

 

 

155

 

 

 

-

 

 

 

155

 

 

 

-

 

 

 

-

 

 

 

-

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$301

 

 

$-

 

 

$301

 

 

$-

 

 

$-

 

 

$-

 

Revenues are received through click-based, and impression ads located on the Company’s websites, as well as from the publishing and disseminating of news and press releases.

 

 

 

Mar 31,

 

 

Mar 31

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Deferred Revenue

 

$155

 

 

$-

 

 

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

 

Accounts Receivable and Allowance for Doubtful Accounts

 

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, the current aging status of the customer accounts, and the financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of March 31, 2024 and December 31, 2023. 

 

Risk Concentrations

 

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

 

During the three-month period ending March 31, 2024, 51% of the Company's revenues were from the publishing and distribution of a press release. The remaining 49% of the revenue earned was received from the displaying of click-based and impressions ads on the company's online sites. All revenue earned was through a third party. 

 

General and Administrative Expenses

 

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2024 and 2023. Compensation expenses, auto, travel and entertainment, legal and accounting, utilities, web sites, office expenses, depreciation, and other administrative related expenses.

 

Property and Equipment

 

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on the disposition of equipment are reflected in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

 

Impairment of Long-Lived Assets

 

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses the recoverability of 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 of the expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2024 or 2023.

 

Basic and Diluted Net (Loss) per Share

 

                                                                                                                                                                                                                                                                                                       

 

 

   Three Months

 

 

   Three Months

 

 

 

      Mar 31, 2024  

 

 

Mar 31, 2023

 

Numerator:

 

 

 

 

 

 

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

 

$(2,346,839 )

 

$(24,425 )

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

 

$(2,346,839 )

 

$(24,425 )

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

14,460,725

 

 

 

13,385,047

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.16 )

 

$(0.00 )

Diluted

 

$(0.16 )

 

$(0.00 )

When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the periods ended March 31, 2024 and 2023. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended March 31, 2024 is 25,900,000 and March 31, 2023, 21,400,000.

 

Income Taxes

 

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal 2020 and 2021 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of March 31, 2024, and December 31, 2023, the Company has not reflected any amounts as a deferred tax asset due to the uncertainty of future profits to offset any net operating loss.

 

The Company’s deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023:

 

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

 

-

 

 

 

-

 

 

Uncertain tax position

 

The Company also follows guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of March 31, 2024 and December 31, 2023.

 

Fair Value of Financial Instruments

 

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

 

Research and Development

 

The Company spent no money for research and development costs for the period ended March 31, 2024 and year ended December 31, 2023.

 

Advertising Cost

 

The Company spent $0 for advertisement for the periods ended March 31, 2024 and March 31, 2023.

v3.24.1.1.u2
GOING CONCERN
3 Months Ended
Mar. 31, 2024
GOING CONCERN  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $18,602,268 since its inception and had a working capital deficit of $296,247 negative cash flows from operations and limited business operations as of March 31, 2024. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

 

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

v3.24.1.1.u2
PROPERTY AND EQUIPMENT
3 Months Ended
Mar. 31, 2024
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 3 – PROPERTY AND EQUIPMENT

 

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

 

Property consists of the following at March 31, 2024 and December 31, 2023:

 

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Computers – 3 year estimated useful life

 

$108,622

 

 

$108,622

 

Less – Accumulated Depreciation

 

 

(108,622 )

 

 

(108,622 )

Property and Equipment, net

 

$-

 

 

$-

 

 

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $0.00, and $996 for the three months ended March 31, 2024 and 2023, respectively.

v3.24.1.1.u2
FINANCE LEASES
3 Months Ended
Mar. 31, 2024
FINANCE LEASES  
FINANCE LEASES

NOTE 4 – FINANCE LEASES

 

As of the three-month period ending March 31, 2024 there were no finance lease transactions.

v3.24.1.1.u2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES
3 Months Ended
Mar. 31, 2024
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES  
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

 

As of March 31, 2024, and December 31, 2023, the Company had unamortized discounts of $0 and $0 respectively.

 

The Company analyzed the below convertible notes for derivatives noting none.

 

Name    

 

Original

Note Date

 

Due

Date

 

Interest

Rate

 

 

Conversion

Rate

 

 

March 31,

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman Irrevocable Trust

 

03/23/2023

 

03/23/2024

 

 

12%

 

$-

 

 

 

18,000

 

Mike Zaman Irrevocable Trust

 

05/08/2023

 

05/08/2024

 

 

12%

 

$-

 

 

 

5,800

 

Mike Zaman Irrevocable Trust

 

06/02/2023

 

06/02/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

06/20/2023

 

06/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman

 

07/18/2023

 

07/18/2024

 

 

12%

 

$-

 

 

 

15,000

 

Mike Zaman Irrevocable Trust

 

08/04/2023

 

08/04/2024

 

 

12%

 

$-

 

 

 

12,000

 

Mike Zaman Irrevocable Trust

 

09/20/2023

 

09/20/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

09/22/2023

 

09/22/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

09/23/2023

 

09/23/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

10/20/2023

 

10/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman Irrevocable Trust

 

11/06/2023

 

11/06/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

12/12/2023

 

12/12/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

02/01/2024

 

02/01/2025

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

03/21/2024

 

03/21/2025

 

 

12%

 

$-

 

 

 

2,000

 

Mike Zaman Irrevocable Trust

 

03/25/2024

 

03/25/2025

 

 

12%

 

$-

 

 

 

11,000

 

Total Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamie Hadfield

 

04/07/2022

 

04/07/2023

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman Irrevocable Trust

 

12/25/2022

 

12/25/2023

 

 

12%

 

$0.50

 

 

 

2,000

 

Mike Zaman

 

01/11/2023

 

01/11/2024

 

 

12%

 

$0.50

 

 

 

1,100

 

Mike Zaman Irrevocable Trust

 

01/23/2023

 

01/23/2024

 

 

12%

 

$0.50

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

01/31/2023

 

01/31/2024

 

 

12%

 

$0.50

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

02/14/2023

 

02/14/2024

 

 

12%

 

$0.50

 

 

 

10,000

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,600

 

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

 

Jamie Hadfield

 

On April 7, 2022, the Company entered into a convertible promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12%. On February 09, 2024, the note was paid in full with the issuance of 24,414 restricted shares of common stock for conversion of the note payable at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $34,180. As of March 31, 2024, the principal balance on this note was $0.00.

 

Mike Zaman

 

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,100.

 

On July 18, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $15,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $15,000.

 

Mike Zaman Irrevocable Trust

 

On December 25, 2022, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

March On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $18,000.

 

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $5,800.

 

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On August 04, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $12,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $12,000.

On September 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On September 22, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On September 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On October 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On November 06, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On December 12, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On February 01, 2024 the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 21, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On March 25, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $11,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $11,000.

v3.24.1.1.u2
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2024
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

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

 

The Company agreed to pay the automobile lease of $395 and $278 a month, on a month-to-month basis and can be cancelled at any time but expects to continue lease payments for the full 2024 year.

v3.24.1.1.u2
RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2024
RELATED PARTY TRANSACTIONS  
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.

 

Jamie Hadfield

 

On April 7, 2022, the Company entered into a convertible promissory note with Jamie Hadfield in the amount of $10,000 at an interest rate of 12%. On February 09, 2024, the note was paid in full with interest. As of March 31, 2024, the principal balance on this note was $0.00.

 

Mike Zaman

 

On January 11, 2023, the Company entered into a convertible promissory note with Mike Zaman in the amount of $1,100 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,100.

 

On July 18, 2023, the Company entered into a promissory note with Mike Zaman in the amount of $15,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $15,000.

 

Mike Zaman Irrevocable Trust

 

On December 25, 2022, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

On January 23, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

March On January 31, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On February 14, 2023, the Company entered into a convertible promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $18,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $18,000.

 

On May 08, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $5,800 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $5,800.

 

On June 02, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On June 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On August 04, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $12,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $12,000.

 

On September 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,500 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,500.

 

On September 22, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On September 23, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $1,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $1,000.

 

On October 20, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $3,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $3,000.

 

On November 06, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On December 12, 2023, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On February 01, 2024 the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $10,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $10,000.

 

On March 21, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $2,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $2,000.

 

On March 25, 2024, the Company entered into a promissory note with Mike Zaman Irrevocable Trust in the amount of $11,000 at an interest rate of 12%. As of March 31, 2024, the principal balance on this note was $11,000.

 

The Company periodically receives operating funds advanced from related parties which are documented with notes payable or convertible notes payable. Additionally, the Company related parties cover account payables by direct payment of the account payables which are also documented with notes payable or convertible notes payable. As of March 31, 2024, the total convertible notes and non-convertible notes from related parties were $106,800 and $16,600, respectfully. 

v3.24.1.1.u2
STOCKHOLDERS' DEFICIT
3 Months Ended
Mar. 31, 2024
STOCKHOLDERS' DEFICIT  
STOCKHOLDERS' DEFICIT

NOTE 8 – STOCKHOLDERS’ DEFICIT

 

Common Stock

 

During the three months ending March 31, 2024, the Company issued 2,359,160 shares of common stock for accrued expenses, 25,000 shares for account payable, 10,000 shares for services, and 24,414 shares for a note payable as follows:

 

 

·

On February 9, 2024, the Company issued 24,414 restricted shares of common stock for conversion of a note payable of $10,000 at 12% interest to Jamie Hadfield at a conversion rate of fifty cents ($0.50) per share for the total note amount owed. The share price on conversion date was $1.48, which attributed to a loss of $34,180.

 

 

 

 

·

On February 20, 2024, the Company issued 1,439,300 restricted shares of common stock for conversion of  $719,650 in accrued expenses to Mike Zaman at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $1,410,514.

 

 

 

 

·

On February 20, 2024, the Company issued 278,160 restricted shares of common stock for conversion of a $139,080 in accrued expenses to Arnulfo Saucedo-Bardan at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $272,597.

 

 

 

 

·

On February 20, 2024, the Company issued 301,700 restricted shares of common stock for conversion of $150,850 in accrued expenses  to Kenneth Bosket at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $295,666.

 

 

 

 

·

On February 20, 2024 the Company issued 340,000 restricted shares of common stock for conversion of $170,000 in accrued expenses to Montse Zaman at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $333,200.

 

 

 

 

·

On February 20, 2024, the Company issued 25,000 restricted shares of common stock for conversion of a $12,500 account payable to Cloud Network Systems Inc. at a conversion rate of fifty cents ($0.50) per share for the total amount owed. The share price on conversion date was $1.48, which attributed to a loss of $24,500.

 

 

 

 

·

On February 20, 2024 the Company issued 10,000 restricted shares of common stock for $14,800 for services to Vinoth Sambandam. The original amount owed was $5,000. The company converted the amount owed at a rate of fifty cents ($0.50) per share. The share price on conversion date was $1.48, which attributed to a loss of $9,800.

 

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 March 31, 2024.

 

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 March 31, 2024, the Company has 1,000 shares of Series A Preferred Stock outstanding.

 

Warrants

 

On February 26, 2024, the Company granted a non-qualified stock warrants purchase of 1,000,000 shares of common stock. The Warrant is exercisable, at the option of the holder at an exercise price of $0.60 per share. The fair value of warrant is estimated on the date of grant using the Black Scholes pricing model with the following weighted-average assumptions used for the warrant under the plan.

 

Average risk-free rate: 5.48%

Average expected life (in years): 0.59 years

Volatility: 419%

 

 

 

Number of

 

 

Exercise

 

 

 

Warrants

 

 

Price

 

Balance, December 31, 2023

 

 

24,900,000

 

 

$0.60

 

Issued

 

 

1,000,000

 

 

 

0.60

 

Exercised

 

 

-

 

 

 

-

 

Balance, March 31, 2024

 

 

25,900,000

 

 

 

0.60

 

v3.24.1.1.u2
INCOME TAXES
3 Months Ended
Mar. 31, 2024
INCOME TAXES  
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 2023

 

The Company's deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023:

 

 

 

March 31,

2024

 

 

December 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

$-

 

 

$-

 

 

As of March 31, 2024, and December 31, 2023, the Company's accumulated net operating loss carry forward was approximately $4,351,345 and $4,351,345 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%.

v3.24.1.1.u2
SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2024
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

 

On May 14, 2024, the Company entered into a promissory note with Mike Zaman in the amount of $4,500 at an interest rate of 12%.

 

Management has analyzed its operations for subsequent events to June 06, 2024, the date these Financial Statements were issued. 

v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2024
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 to make 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.

Basis of Preparation

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

Reclassifications

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

Adoption of New Accounting Standard

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

Use of Estimates

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

Cash and Cash Equivalents

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

Stock-Based Compensation

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. 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

 

 

 

 

 

Contracts 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 agree and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.

Determine the transaction price

 

 

 

 

 

Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer.

 

4.

Allocate the transaction price to the performance obligations in the contract

 

 

 

 

 

If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase.

 

5.

Recognize revenue when (or as) we satisfy a performance obligation

 

 

 

 

 

The Company uses digital marketing that includes digital advertising, SEO management and digital ad support. We provide whether presenting a vibrant but simple message about our clients that will enlighten their audience or deploying an influential digital marketing campaign on our online site or across one or multiple social media platforms. Revenue is recognized when ads are run on the Company’s advertising platform.

 

The company generates analytical reports monthly or as required to show how the ad dollars were spent and how the targeting resulted in click-through. The report satisfies the performance obligation, regardless of the outcome or effectiveness of the campaign.

  

Sales are recognized when promised services are started in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Sales for service contracts generally are recognized as the services that are being provided.

 

 

 

Three Months Ended

March 31, 2024

 

 

Three Months Ended

March 31, 2023

 

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

 Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Click Based and Impressions Ads

 

 

146

 

 

 

-

 

 

 

146

 

 

 

-

 

 

 

-

 

 

 

-

 

Publishing and Distribution

 

 

155

 

 

 

-

 

 

 

155

 

 

 

-

 

 

 

-

 

 

 

-

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$301

 

 

$-

 

 

$301

 

 

$-

 

 

$-

 

 

$-

 

Revenues are received through click-based, and impression ads located on the Company’s websites, as well as from the publishing and disseminating of news and press releases.

 

 

 

Mar 31,

 

 

Mar 31

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Deferred Revenue

 

$155

 

 

$-

 

 

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

Accounts Receivable and Allowance for Doubtful Accounts

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, the current aging status of the customer accounts, and the financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of March 31, 2024 and December 31, 2023. 

Risk Concentrations

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

 

During the three-month period ending March 31, 2024, 51% of the Company's revenues were from the publishing and distribution of a press release. The remaining 49% of the revenue earned was received from the displaying of click-based and impressions ads on the company's online sites. All revenue earned was through a third party. 

General and Administrative Expenses

Crown Equity's general and administrative expenses consisted of the following types of expenses during 2024 and 2023. Compensation expenses, auto, travel and entertainment, legal and accounting, utilities, web sites, office expenses, depreciation, and other administrative related expenses.

Property and Equipment

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on the disposition of equipment are reflected in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses the recoverability of 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 of the expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2024 or 2023.

Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal 2020 and 2021 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of March 31, 2024, and December 31, 2023, the Company has not reflected any amounts as a deferred tax asset due to the uncertainty of future profits to offset any net operating loss.

 

The Company’s deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023:

 

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

 

-

 

 

 

-

 

Uncertain tax position

The Company also follows guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of March 31, 2024 and December 31, 2023.

Fair Value of Financial Instruments

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

Research and Development

The Company spent no money for research and development costs for the period ended March 31, 2024 and year ended December 31, 2023.

Advertising Cost

The Company spent $0 for advertisement for the periods ended March 31, 2024 and March 31, 2023.

Basic and Diluted Net (Loss) per Share

 

 

   Three Months

 

 

   Three Months

 

 

 

      Mar 31, 2024  

 

 

Mar 31, 2023

 

Numerator:

 

 

 

 

 

 

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

 

$(2,346,839 )

 

$(24,425 )

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

 

$(2,346,839 )

 

$(24,425 )

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

14,460,725

 

 

 

13,385,047

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.16 )

 

$(0.00 )

Diluted

 

$(0.16 )

 

$(0.00 )

When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the periods ended March 31, 2024 and 2023. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended March 31, 2024 is 25,900,000 and March 31, 2023, 21,400,000.

v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables)
3 Months Ended
Mar. 31, 2024
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES  
Schedule of Sales recognized

 

 

Three Months Ended

March 31, 2024

 

 

Three Months Ended

March 31, 2023

 

 

 

Third

Party

 

 

Related

Party

 

 

Total

 

 

Third

Party

 

 

Related

Party

 

 

 Total

 

Advertising

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Click Based and Impressions Ads

 

 

146

 

 

 

-

 

 

 

146

 

 

 

-

 

 

 

-

 

 

 

-

 

Publishing and Distribution

 

 

155

 

 

 

-

 

 

 

155

 

 

 

-

 

 

 

-

 

 

 

-

 

Server

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$301

 

 

$-

 

 

$301

 

 

$-

 

 

$-

 

 

$-

 

Schedule of revenue

 

 

Mar 31,

 

 

Mar 31

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Deferred Revenue

 

$155

 

 

$-

 

Schedule of Basic and Diluted Net (Loss) per Share

 

 

   Three Months

 

 

   Three Months

 

 

 

      Mar 31, 2024  

 

 

Mar 31, 2023

 

Numerator:

 

 

 

 

 

 

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

 

$(2,346,839 )

 

$(24,425 )

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

 

$(2,346,839 )

 

$(24,425 )

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

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

 

 

14,460,725

 

 

 

13,385,047

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$(0.16 )

 

$(0.00 )

Diluted

 

$(0.16 )

 

$(0.00 )
Schedule of deferred tax assets

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

 

-

 

 

 

-

 

v3.24.1.1.u2
PROPERTY AND EQUIPMENT (Tables)
3 Months Ended
Mar. 31, 2024
PROPERTY AND EQUIPMENT  
Schedule of property plant and equipment

 

 

Mar 31,

2024

 

 

Dec 31,

2023

 

Computers – 3 year estimated useful life

 

$108,622

 

 

$108,622

 

Less – Accumulated Depreciation

 

 

(108,622 )

 

 

(108,622 )

Property and Equipment, net

 

$-

 

 

$-

 

v3.24.1.1.u2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Tables)
3 Months Ended
Mar. 31, 2024
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES  
Schedule of Convertible Notes Payable

Name    

 

Original

Note Date

 

Due

Date

 

Interest

Rate

 

 

Conversion

Rate

 

 

March 31,

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mike Zaman Irrevocable Trust

 

03/23/2023

 

03/23/2024

 

 

12%

 

$-

 

 

 

18,000

 

Mike Zaman Irrevocable Trust

 

05/08/2023

 

05/08/2024

 

 

12%

 

$-

 

 

 

5,800

 

Mike Zaman Irrevocable Trust

 

06/02/2023

 

06/02/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

06/20/2023

 

06/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman

 

07/18/2023

 

07/18/2024

 

 

12%

 

$-

 

 

 

15,000

 

Mike Zaman Irrevocable Trust

 

08/04/2023

 

08/04/2024

 

 

12%

 

$-

 

 

 

12,000

 

Mike Zaman Irrevocable Trust

 

09/20/2023

 

09/20/2024

 

 

12%

 

$-

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

09/22/2023

 

09/22/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

09/23/2023

 

09/23/2024

 

 

12%

 

$-

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

10/20/2023

 

10/20/2024

 

 

12%

 

$-

 

 

 

3,000

 

Mike Zaman Irrevocable Trust

 

11/06/2023

 

11/06/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

12/12/2023

 

12/12/2024

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

02/01/2024

 

02/01/2025

 

 

12%

 

$-

 

 

 

10,000

 

Mike Zaman Irrevocable Trust

 

03/21/2024

 

03/21/2025

 

 

12%

 

$-

 

 

 

2,000

 

Mike Zaman Irrevocable Trust

 

03/25/2024

 

03/25/2025

 

 

12%

 

$-

 

 

 

11,000

 

Total Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Convertible Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamie Hadfield

 

04/07/2022

 

04/07/2023

 

 

12%

 

$0.50

 

 

 

-

 

Mike Zaman Irrevocable Trust

 

12/25/2022

 

12/25/2023

 

 

12%

 

$0.50

 

 

 

2,000

 

Mike Zaman

 

01/11/2023

 

01/11/2024

 

 

12%

 

$0.50

 

 

 

1,100

 

Mike Zaman Irrevocable Trust

 

01/23/2023

 

01/23/2024

 

 

12%

 

$0.50

 

 

 

2,500

 

Mike Zaman Irrevocable Trust

 

01/31/2023

 

01/31/2024

 

 

12%

 

$0.50

 

 

 

1,000

 

Mike Zaman Irrevocable Trust

 

02/14/2023

 

02/14/2024

 

 

12%

 

$0.50

 

 

 

10,000

 

Total Convertible Related Party Notes Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,600

 

v3.24.1.1.u2
STOCKHOLDERS DEFICIT (Tables)
3 Months Ended
Mar. 31, 2024
STOCKHOLDERS' DEFICIT  
Summary of Warrants Issued

 

 

Number of

 

 

Exercise

 

 

 

Warrants

 

 

Price

 

Balance, December 31, 2023

 

 

24,900,000

 

 

$0.60

 

Issued

 

 

1,000,000

 

 

 

0.60

 

Exercised

 

 

-

 

 

 

-

 

Balance, March 31, 2024

 

 

25,900,000

 

 

 

0.60

 

v3.24.1.1.u2
INCOME TAXES (Tables)
3 Months Ended
Mar. 31, 2024
INCOME TAXES  
Schedule of Deferred Tax

 

 

March 31,

2024

 

 

December 31,

2023

 

Net operating loss

 

$933,539

 

 

$928,560

 

Valuation allowance

 

 

(933,539 )

 

 

(928,560 )

Net deferred tax asset

 

$-

 

 

$-

 

v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Advertising $ 0 $ 0
Click Based and Impressions Ads 146 0
Publishing and Distribution 155 0
Total sales 301 0
Server 0 0
Third Party [Member]    
Advertising 0 0
Click Based and Impressions Ads 146 0
Publishing and Distribution 155 0
Total sales 301 0
Server 0 0
Related Partys [Member]    
Advertising 0 0
Click Based and Impressions Ads 0 0
Publishing and Distribution 0 0
Total sales 0 0
Server $ 0 $ 0
v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES    
Deferred Revenue $ 155 $ 0
v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (2,346,839) $ (24,425)
Net (Loss) attributable to Crown Equity Holdings, Inc. $ (2,346,839) $ (24,425)
Denominator:    
Weighted average common and common equivalent shares outstanding-basic and diluted 14,460,725 13,385,047
Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.:    
Basic $ (0.16) $ (0.00)
Diluted $ (0.16) $ (0.00)
v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES    
Net operating loss $ 933,539 $ 928,560
Valuation allowance (933,539) (928,560)
Net deferred Tax asset $ 0 $ 0
v3.24.1.1.u2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES    
Advertising Cost $ 0 $ 0
Research and development costs $ 0 $ 0
Reduced The Federal Statutory Corporate Tax Rate the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018  
Corporate Tax Rate 21.00%  
Uncertain Tax Position Description 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 March 31, 2024 and December 31, 2023  
Revenues from publishing and distribution 51.00%  
Number of potential anti-dilutive shares 25,900,000 21,400,000
Revenue earned was received from the display of click-based 49.00%  
v3.24.1.1.u2
GOING CONCERN (Details Narrative)
Mar. 31, 2024
USD ($)
GOING CONCERN  
Accumulated Deficit $ (18,602,268)
Working Capital Deficit $ (296,247)
v3.24.1.1.u2
PROPERTY AND EQUIPMENT (Details) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Property And Equipment, Net $ 0 $ 0
Computer Equipment [Member]    
Computers - 3 Year Estimated Useful Life 108,622 108,622
Less - Accumulated Depreciation (108,622) (108,622)
Property And Equipment, Net $ 0 $ 0
v3.24.1.1.u2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Depreciation expense $ 0 $ 996 $ 996
Capitalized Property $ 1,000    
Minimum Range [Member]      
Useful Life     3 years
Maximum Range [Member]      
Useful Life     7 years
v3.24.1.1.u2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details) - USD ($)
1 Months Ended 3 Months Ended
Feb. 20, 2024
Mar. 31, 2024
Mike Zaman [Member]    
Conversion Rate $ 0.50  
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 12 [Member]    
Original Note Date   Feb. 01, 2024
Note payable   $ 10,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Feb. 01, 2025
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 13 [Member]    
Original Note Date   Mar. 21, 2024
Note payable   $ 2,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Mar. 21, 2025
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 14 [Member]    
Original Note Date   Mar. 25, 2024
Note payable   $ 11,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Mar. 25, 2025
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 1 [Member]    
Original Note Date   Mar. 23, 2023
Note payable   $ 18,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Mar. 23, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 2 [Member]    
Original Note Date   May 08, 2023
Note payable   $ 5,800
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   May 08, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 3 [Member]    
Original Note Date   Jun. 02, 2023
Note payable   $ 2,500
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Jun. 02, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 4 [Member]    
Original Note Date   Jun. 20, 2023
Note payable   $ 3,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Jun. 20, 2024
Related Party Notes Payable [Member] | Mike Zaman 1 [Member]    
Original Note Date   Jul. 18, 2023
Note payable   $ 15,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Jul. 18, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 5 [Member]    
Original Note Date   Aug. 04, 2023
Note payable   $ 12,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Aug. 04, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 6 [Member]    
Original Note Date   Sep. 20, 2023
Note payable   $ 2,500
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Sep. 20, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 7 [Member]    
Original Note Date   Sep. 22, 2023
Note payable   $ 1,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Sep. 22, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 8 [Member]    
Original Note Date   Sep. 23, 2023
Note payable   $ 1,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Sep. 23, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 9 [Member]    
Original Note Date   Oct. 20, 2023
Note payable   $ 3,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Oct. 20, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 10 [Member]    
Original Note Date   Nov. 06, 2023
Note payable   $ 10,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Nov. 06, 2024
Related Party Notes Payable [Member] | Mike Zaman Irrevocable Trust 11 [Member]    
Original Note Date   Dec. 12, 2023
Note payable   $ 10,000
Interest Rate   12.00%
Conversion Rate   $ 0
Due Date   Dec. 12, 2024
Convertible Notes Payable Related Party [Member] | Mike Zaman Irrevocable Trust 1 [Member]    
Original Note Date   Dec. 25, 2022
Note payable   $ 2,000
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Dec. 25, 2023
Convertible Notes Payable Related Party [Member] | Mike Zaman Irrevocable Trust 2 [Member]    
Original Note Date   Jan. 23, 2023
Note payable   $ 2,500
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Jan. 23, 2024
Convertible Notes Payable Related Party [Member] | Mike Zaman [Member]    
Original Note Date   Jan. 11, 2023
Note payable   $ 1,100
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Jan. 11, 2024
Convertible Notes Payable Related Party [Member] | Mike Zaman Irrevocable Trust 3 [Member]    
Original Note Date   Jan. 31, 2023
Note payable   $ 1,000
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Jan. 31, 2024
Convertible Notes Payable Related Party [Member] | Jamie Hadfield 1 [Member]    
Original Note Date   Apr. 07, 2022
Note payable   $ 0
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Apr. 07, 2023
Related Party Notes Payable DuringPeriod [Member]    
Note payable   $ 106,800
Convertible NotesRelated Party Notes Payable DuringPeriod [Member]    
Note payable   $ 16,600
Convertible NoteRelated Party [Member] | Mike Zaman Irrevocable Trust 4 [Member]    
Original Note Date   Feb. 14, 2023
Note payable   $ 10,000
Interest Rate   12.00%
Conversion Rate   $ 0.50
Due Date   Feb. 14, 2024
v3.24.1.1.u2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Attributed loss $ (2,346,839) $ (24,425)  
Convertible Debt and Note Payable [Member]      
Unamortized discount $ 0   $ 0
Conversion rate is one share of common stock $ 0.50    
Debt conversion amount $ 0    
Jamie Hadfield [Member] | Convertible Promissory Note [Member] | On April 7, 2022 [Member]      
Promissory note 10,000    
Principal balance of promissory note $ 0    
Interest rate 12.00%    
Jamie Hadfield [Member] | Convertible Promissory Note [Member] | On February 9, 2024 [Member]      
Conversion rate is one share of common stock $ 0.50    
Attributed loss $ 34,180    
Share price on conversion $ 1.48    
restricted shares 24,414    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On December 25, 2022 [Member]      
Promissory note $ 2,000    
Principal balance of promissory note $ 2,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On January 23, 2023 [Member]      
Promissory note $ 2,500    
Principal balance of promissory note $ 2,500    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On January 31, 2023 [Member]      
Promissory note $ 1,000    
Principal balance of promissory note $ 1,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On February 14, 2023 [Member]      
Promissory note $ 10,000    
Principal balance of promissory note $ 10,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On March 23, 2023 [Member]      
Promissory note $ 18,000    
Principal balance of promissory note $ 18,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 22, 2023 [Member]      
Promissory note $ 1,000    
Principal balance of promissory note $ 1,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 23, 2023 [Member]      
Promissory note $ 1,000    
Principal balance of promissory note $ 1,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On October 20, 2023 [Member]      
Promissory note $ 3,000    
Principal balance of promissory note 3,000    
Principal balance of promissory note $ 3,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On November 06, 2023 [Member]      
Promissory note $ 10,000    
Principal balance of promissory note $ 10,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On December 12, 2023 [Member]      
Promissory note $ 10,000    
Principal balance of promissory note $ 10,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | March 21 2023 [Member]      
Promissory note $ 2,000    
Principal balance of promissory note $ 2,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | February 01 2024 [Member]      
Promissory note $ 10,000    
Principal balance of promissory note $ 10,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | March 25 2023 [Member]      
Promissory note $ 11,000    
Principal balance of promissory note $ 11,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On May 08, 2023 [Member]      
Promissory note $ 5,800    
Principal balance of promissory note $ 5,800    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On June 02, 2023 [Member]      
Promissory note $ 2,500    
Principal balance of promissory note $ 2,500    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On June 20, 2023 [Member]      
Promissory note $ 3,000    
Principal balance of promissory note $ 3,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On August 04, 2023 [Member]      
Promissory note $ 12,000    
Principal balance of promissory note $ 12,000    
Interest rate 12.00%    
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 20, 2023 [Member]      
Promissory note $ 2,500    
Principal balance of promissory note $ 2,500    
Interest rate 12.00%    
Mike Zaman [Member] | Convertible Promissory Note [Member] | On January 11, 2023 [Member]      
Promissory note $ 1,100    
Principal balance of promissory note $ 1,100    
Interest rate 12.00%    
Mike Zaman [Member] | Convertible Promissory Note [Member] | On July 18, 2023 [Member]      
Promissory note $ 15,000    
Principal balance of promissory note $ 15,000    
Interest rate 12.00%    
v3.24.1.1.u2
COMMITMENTS AND CONTINGENCIES (Details Narrative)
3 Months Ended
Mar. 31, 2024
USD ($)
Automobile Lease [Member]  
Monthly lease payment $ 395
Automobile Lease One [Member]  
Monthly lease payment $ 278
v3.24.1.1.u2
RELATED PARTY TRANSACTIONS (Details Narrative)
3 Months Ended
Mar. 31, 2024
USD ($)
Non convertible notes notes from related parties $ 16,600
Convertible notes notes from related parties 106,800
Jamie Hadfield [Member] | Convertible Promissory Note [Member] | On April 7, 2022 [Member]  
Promissory note 10,000
Principal balance of promissory note $ 0
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On December 25, 2022 [Member]  
Promissory note $ 2,000
Principal balance of promissory note $ 2,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On January 23, 2023 [Member]  
Promissory note $ 2,500
Principal balance of promissory note $ 2,500
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On January 31, 2023 [Member]  
Promissory note $ 1,000
Principal balance of promissory note $ 1,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On February 14, 2023 [Member]  
Promissory note $ 10,000
Principal balance of promissory note $ 10,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On March 23, 2023 [Member]  
Promissory note $ 18,000
Principal balance of promissory note $ 18,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 22, 2023 [Member]  
Promissory note $ 1,000
Principal balance of promissory note $ 1,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 23, 2023 [Member]  
Promissory note $ 1,000
Principal balance of promissory note $ 1,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On October 20, 2023 [Member]  
Promissory note $ 3,000
Principal balance of promissory note $ 3,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On November 06, 2023 [Member]  
Promissory note $ 10,000
Principal balance of promissory note $ 10,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On December 12, 2023 [Member]  
Promissory note $ 10,000
Principal balance of promissory note $ 10,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | March 21 2023 [Member]  
Promissory note $ 2,000
Principal balance of promissory note $ 2,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | February 01 2024 [Member]  
Promissory note $ 10,000
Principal balance of promissory note $ 10,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On May 08, 2023 [Member]  
Promissory note $ 5,800
Principal balance of promissory note $ 5,800
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On June 02, 2023 [Member]  
Promissory note $ 2,500
Principal balance of promissory note $ 2,500
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On June 20, 2023 [Member]  
Promissory note $ 3,000
Principal balance of promissory note $ 3,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On August 04, 2023 [Member]  
Promissory note $ 12,000
Principal balance of promissory note $ 12,000
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | On September 20, 2023 [Member]  
Promissory note $ 2,500
Principal balance of promissory note $ 2,500
Interest rate 12.00%
Mike Zaman Irrevocable Trust [Member] | Convertible Promissory Note [Member] | March 25, 2023 [Member]  
Promissory note $ 11,000
Principal balance of promissory note $ 11,000
Interest rate 12.00%
Mike Zaman [Member] | Convertible Promissory Note [Member] | On January 11, 2023 [Member]  
Promissory note $ 1,100
Principal balance of promissory note $ 1,100
Interest rate 12.00%
Mike Zaman [Member] | Convertible Promissory Note [Member] | On July 18, 2023 [Member]  
Promissory note $ 15,000
Principal balance of promissory note $ 15,000
Interest rate 12.00%
v3.24.1.1.u2
STOCKHOLDERS' DEFICIT (Details) - Warrants [Member]
3 Months Ended
Mar. 31, 2024
$ / shares
shares
Number of Warrants Outstanding, beginning | shares 24,900,000
Issued | shares 1,000,000
Exercised | shares 0
Number of Warrants Outstanding, ending | shares 25,900,000
Warrants exercise price, beginning | $ / shares $ 0.60
Warrants exercise price, Issued | $ / shares 0.60
Warrants exercise price, Exercised | $ / shares 0
Warrants exercise price, ending | $ / shares $ 0.60
v3.24.1.1.u2
STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended
Feb. 09, 2024
Feb. 26, 2024
Feb. 20, 2024
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Common Stock Issued for Cash, shares       2,359,160    
Common Stock Issued for account payable, Shares       25,000    
Common Stock Issued for services, Shares       10,000    
Common Stock Issued for note payable , Shares       24,414    
Common stock, shares authorized       450,000,000   450,000,000
Net loss       $ (3,661,094) $ (24,425)  
Original amount       $ 34,180 $ 0  
2006 Equity Incentive Plan [Member]            
Common stock, shares authorized       3,000,000    
Available for issuance       3,000,000    
Warrant [Member]            
Average risk-free rate       5.48%    
Warrants Average expected life       7 months 2 days    
Volatility       419.00%    
Common stock exercise price per shares   $ 0.60        
Warrants purchase shares of common stock   1,000,000        
Cloud Network Systems Inc [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 24,500      
Issued of restricted shares     25,000      
Issued of common stock for conversion of debt for cash     $ 12,500      
Conversion Rate     $ 0.50      
Jamie Hadfield [Member]            
Conversion price, per share $ 1.48          
Net loss $ 34,180          
Issued of restricted shares 24,414          
Issued of common stock for conversion of debt for cash $ 10,000          
Interest Rate 12.00%          
Conversion Rate $ 0.50          
Mike Zaman [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 1,410,514      
Issued of restricted shares     1,439,300      
Issued of common stock for conversion of debt for cash     $ 719,650      
Conversion Rate     $ 0.50      
Kenneth Bosket [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 295,666      
Issued of restricted shares     301,700      
Issued of common stock for conversion of debt for cash     $ 150,850      
Conversion Rate     $ 0.50      
Montse Zaman [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 333,200      
Issued of restricted shares     340,000      
Issued of common stock for conversion of debt for cash     $ 170,000      
Conversion Rate     $ 0.50      
Vinoth Sambandam [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 9,800      
Issued of restricted shares     10,000      
Original amount     $ 5,000      
Issued of common stock for conversion of debt for cash     $ 14,800      
Conversion Rate     $ 0.50      
Series A Preferred Stock [Member]            
Preferred Stock shares, Designated       1,000    
Preferred stock, shares outstanding       1,000    
Arnulfo Saucedo-Bardan [Member]            
Conversion price, per share     $ 1.48      
Net loss     $ 272,597      
Issued of restricted shares     278,160      
Issued of common stock for conversion of debt for cash     $ 139,080      
Conversion Rate     $ 0.50      
v3.24.1.1.u2
INCOME TAXES (Details) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
INCOME TAXES    
Net operating loss $ 933,539 $ 928,560
Valuation allowance (933,539) (928,560)
Net deferred tax asset $ 0 $ 0
v3.24.1.1.u2
INCOME TAXES (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
INCOME TAXES    
Net operating loss carry forward $ 4,351,345 $ 4,351,345
Operating loss carry forward, description will begin to expire in the year 2032  
Corporate tax rate 21.00%  
v3.24.1.1.u2
SUBSEQUENT EVENTS (Details Narrative) - Mike Zaman Irrevocable Trust [Member] - Subsequent Event [Member]
May 14, 2024
USD ($)
Promissory note $ 4,500
Interest rate 12.00%

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