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, 2019, and the Condensed Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q. The following discussion may contain forward looking statements. For additional information, see "Disclosure Regarding Forward Looking Statements" in Part I of this Quarterly Report on Form 10-Q.





OVERVIEW

Crown Equity Holdings Inc. ("Crown Equity") was incorporated in August 1995 in Nevada. The Company is offering its services to companies seeking to become public entities in the United States. It has launched a website, www.crownequityholdings.com, which offers its services in a wide range of fields. The Company provides various consulting services to companies and individuals dealing with corporate structure and operations globally. The Company also provides public relations and news dissemination for publicly and privately held companies.

In December, 2010, the Company formed two wholly owned subsidiaries Crown Tele Services, Inc. and CRWE Direct, Inc. Crown Tele Services, Inc. was formed to provide voice over internet ("VoIP") services to clients at a competitive price and Crown Direct, Inc. was formed to provide direct sales to customers. Both entities had minimum sales during the quarter.

In March, 2011, the Company formed a wholly owned subsidiary CRWE Real Estate, Inc. as a subsidiary to engage in potential real estate holdings. The entity had minimal activity during the quarter.

The Company has focused its primary vision to using its network of websites to provide advertising and marketing services, as a worldwide online media advertising publisher, dedicated to the distribution of quality branding information. The Company offers Internet media-driven advertising services, which cover and connect a wide range of marketing specialties, as well as search engine optimization for clients interested in online media awareness. As part of its operations, the Company has utilized the services of software and hardware technicians in developing its websites and adding additional websites. This allows the Company to disseminate news and press releases for its customers as well as general news and financial information on a much bigger scale than it did previously. The Company markets its services to companies seeking market awareness of them and the services or goods that they offer. The Company then publishes information concerning these companies on its many websites

Crown Equity's office is located at 11226 Pentland Downs Street, Las Vegas, NV 89141.

As of March 31, 2020 Crown Equity had no paid employees and was utilizing the services of two independent contractors and the following three officers, Mike Zaman, Kenneth Bosket, Montse Zaman and Vinoth Sambandam.





RESULTS OF OPERATIONS

Three months Ended March 31, 2020 Compared to the Three months March 31, 2019

For the three months ended March 31, 2020, revenues were $577 and $682 for the same period in 2019.

Revenues for the three months ended March 31, 2020 was relatively consistent compared to the same period in 2019.

Operating expenses were $51,428 for the three months ended March 31,2020 and $40,954 for the same period in 2019. Increase in operating expenses was primarily due to increase in web site development expense and accounting expense. Other expenses for the three month period ended March 31, 2020 were $426,987 and $17,157 for the same quarter in 2019. The increase in other expenses was due to recoding of loss on shares issued to settle accounts payable.

The holders of convertible promissory notes have the right to convert principal and accrued interest into Common shares or receive cash.

Interest expense for the three months ended March 31, 2020 and 2019 was $3,700 and $4,839, respectively.






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LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2020, Crown Equity had current assets of $3,260 and current liabilities of $277,735 resulting in working capital deficit of $274,475. Net cash used by operating activities for the three months ended March 31, 2020 was $16,741 compared to net cash used of $12,700 for the same period in 2019.

Net cash used in investing activities was zero for the three months ended March 31, 2020 and 2019.

Net cash provided by financing activities during the three months ended March 31, 2020 was $19,004 compared to net cash provided of $986 in 2019. For the three months ended March 31, 2020, we paid $760 on related party notes payable and $0 on third party notes payable. We also sold 40,000 shares of common stock for $20,000.

Our existing capital may not be sufficient to meet Crown Equity's cash needs, including the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934, as amended. This condition raises substantial doubt as to Crown Equity's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

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