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 September 30, 2020 Crown Equity has 4 employees and was utilizing the services of three independent contractors and the following six officers, Mike Zaman, Kenneth Bosket, Montse Zaman, Malcolm Ziman, Mohammad Sadrolashrafi and Shahram Khial.





RESULTS OF OPERATIONS

Three months ended September 30, 2020 Compared to the Three months ended September 30, 2019

For the three months ended September 30, 2020, revenues were $1,877 of which $1,667 was from related parties, and $419 for the same period in 2019.

Revenues for the three months ended September 30, 2020 was higher primarily due to advertising revenue not earned for the same period in 2019.

Operating expenses were $145,043 for the three months ended September 30, 2020 and $50,029 for the same period in 2019. Increase in operating expenses was primarily due to increase of $105,000 in quarterly officer compensation.

Other expenses for the three-month period ended September 30, 2020 were $24,775 and $3,644 for the same quarter in 2019. The increase in other expenses was due to investment expense of $17,000.

Interest expense for the three months ended September 30, 2020 and 2019 was $5,164 and $3,644, respectively.






         24

  Table of Contents

Nine months ended September 30, 2020 Compared to the Nine months ended September 30, 2019

For the nine months ended September 30, 2020, revenues were $2,954 and $53,464 for the same period in 2019. Revenues for the nine months ended September 30, 2020 was significantly lower compared to the same period in 2019 primarily due to advertising income from related parties earned in the same period in 2019.

Operating expenses were $517,540 for the nine months ended September 30,2020 and $132,313 for the same period in 2019. Increase in operating expenses was primarily due to increase officer compensation, managerial services, accounting services, IT services and administrative services.

Other expenses for the nine-month period ended September 30, 2020 were $573,816 and $51,211 for the same period in 2019. The increase in other expenses was primarily due to the recording of loss on shares issued to settle accounts payable and investment expense.

Interest expense for nine months ended September 30, 2020 and 2019 was $11,871 and $12,291, respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2020, Crown Equity had current assets of $186,753 and current liabilities of $536,499 resulting in working capital deficit of $349,746. Net cash used by operating activities for the nine months ended September 30, 2020 was $75,011 compared to net cash used of $50,315 for the same period in 2019.

Net cash used in investing activities was $170,000 and $0 for the nine months ended September 30, 2020 and 2019, respectively.

Net cash provided by financing activities during the nine months ended September 30, 2020 was $263,378 compared to net cash provided of $44,345 for the same period in 2019. For the nine months ended September 30, 2020, we borrowed $33,675 from related parties, and received a loan from the Small Business Administration for $4,000. We also sold 412,000 shares of common stock for $243,500.

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.

© Edgar Online, source Glimpses