Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended OR o 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 (IRS Employer Identification No.) 11226 Pentland Downs (Address of principal executive offices) (702) (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 Indicate by check mark whether the Company is a large accelerated filer, an accelerated file, non-accelerated filer, or a smaller reporting company. Large accelerated filer ¨ Accelerated filed ¨ Non-accelerated filer ¨ Smaller reporting company x Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes As of Page PART I: FINANCIAL INFORMATION 3 Consolidated Balance Sheets as of 3 4 5 6 8 9 9 10 10 10 10 10 10 11 12 (Unaudited) September 30, December 31, 2015 2014 Assets Current Assets Cash Prepayment for services - Related party Total Current Assets Property, plant and equipment, net of accumulated depreciation of $73,992 and $73,374 Total Assets Liabilities and Stockholders’ Deficit Current Liabilities Accounts payable Accounts payable to related party Accrued expenses Notes payable to related parties Notes payable Total Current Liabilities Stockholders' Deficit Preferred Stock, 10,000,000 shares authorized, 9,000,000 undesignated authorized at $.001 par value, none issued or outstanding Series A Convertible Preferred Stock, $0.001 par value, 1,000,000 shares authorized, none issued or outstanding Common Stock, 490,000,000 authorized at $0.001 par value; 10,837,142 and 10,566,969 shares issued and outstanding Additional paid-in capital Accumulated deficit Total Stockholders’ Deficit Total Liabilities and Stockholders’ Deficit The accompanying notes are an integral part of these unaudited consolidated financial statements. Crown Equity Holdings, Inc. (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue Operating expenses Loss from operations Other (expense) income Interest expense Loss on debt conversion Other (expense) income Settlement expense Loss on derivative Unrealized (loss) gain on marketable securities Total other expense Net loss Net loss per share – basic and diluted Weighted average number of common shares outstanding - basic and diluted The accompanying notes are an integral part of these unaudited consolidated financial statements. Crown Equity Holdings, Inc. (Unaudited) Nine Months Ended September 30, 2015 2014 Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Common stock issued for services Unrealized loss on marketable securities Loss on derivative Loss on conversion of related party debt Amortization of debt discount Loss on debt conversion Changes in operating assets and liabilities: Prepayment for services - related party Accounts payable and accrued expenses Net cash used in operating activities Cash flows from investing activities Advances to related parties Net cash used in investing activities Cash flows from financing activities Proceeds from sale of common stock Payments on related party notes payable Borrowings on notes payable Borrowings on related party notes payable Net cash provided by financing activities Net increase (decrease) in cash Cash, beginning of period Cash, end of period Supplemental disclosure of cash flow information Interest paid Income taxes paid Noncash investing and financing activities Common stock issued for debt and interest Common stock issued for settlement of accounts payable Forgiveness of debt – related party - Debt discount due to derivative liability The accompanying notes are an integral part of these unaudited consolidated financial statements. Crown Equity Holdings, Inc. NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Crown Equity Holdings Inc. (“Crown Equity”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in Crown Equity’s December 31, NOTE 2 – GOING CONCERN As shown in the accompanying financial statements, Crown Equity has an accumulated deficit of Crown Equity continues to review its expense structure reviewing costs and their reduction to move towards profitability. The Company’s expenses are planned to decrease as a percent of revenue resulting in profitability and increased shareholders’ equity. NOTE As of September 30, 2015 and 2014, the Company has prepayment of services to related parties of $6,900 and $0, respectively 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. As of September 30, 2015 and December 31, 2014, the Company had a payable of $5,026 to Montse Zaman, director. The payable is unsecured, bears no interest and due on demand. As of December 31, NOTE 4 – NOTES PAYABLE As of September 30, 2015, the aggregate unpaid principal balance under notes payable to non-related party was $24,500. During the nine months ended September 30, 2015, the Company During the nine month ended September 30, 2015, the Company settled an accounts payable of NOTE During the 22,081 common shares for cash at $1.00 per share for a total of and 110,000 common shares for services valued at During the nine month ended September 30, 2015, the Company settled an accounts payable of $19,495 by issuing common stock with fair value of $23,394 resulting in a loss of $3,899. NOTE 6 – SUBSEQUENT EVENTS Total common shares issued for the period from October 1, 2015 through September 15, 2016 was 354,689 shares which are broken down as follows: · 168,267 shares were issued for cash proceeds of $93,767, · 42,496 shares were issued for services and · 143,926 shares were issued for the settlement of promissory notes and interest of $79,707. On June 1, 2016 the following executive changes occurred: This report contains 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. Crown Equity’s actual results could differ materially from those set forth on the forward looking statements as a result of the risks set forth in Crown Equity’s filings with the Securities and Exchange Commission, general economic conditions, and changes in the assumptions used in making such forward looking statements. 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 Crown 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. The Company is paid in cash and/or stock of the customer companies. The Company has numerous consulting and service customers and is therefore not dependent on any particular customer for a majority of its revenue. Crown Equity’s office is located at 11226 Pentland Down As of RESULTS OF OPERATIONS Three Months Ended For the three month period ended The Company incurred unrealized losses on its marketable securities during the three months ended Interest for the three months ended Nine Months Ended For the The Company incurred unrealized LIQUIDITY AND CAPITAL RESOURCES During the nine months ended September 30, 2015, Company had cash provided by financing activities of $58,646 and $199,950 for the same period in 2014. Cash flows used in investing activities for the year ended December 31, 2015 was $0. Cash flows used in investing activities for the year ended December 31, 2014 totaled $22,640. At Net cash used Cash received from borrowings on notes payable and notes payable to related parties constituted all of the funds raised in both periods presented. 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. As a “smaller reporting company” as defined by Item 12b-2 of the securities exchange act of 1934 (the "exchange act") and are not requires to provide information required under this Item. (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 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. The Company was subject to the following judgment: Lowell Holden vs. Kenneth Bosket, Crown Equity Holdings Inc. On March 3, 2015, Lowell Holden received a judgment for $39,965 in the Hennepin County District Court in Minneapolis, MN in reference to monies owed for prior services rendered. The judgment was settled with the plaintiff for $10,000. The Company accrued the $10,000 as settlement expense at September 30, 2015. The amount was paid subsequently in 2016. 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 ending December 31, During the · 22,081 common shares for cash of · 110,000 common shares for services valued at $194,700 · 118,597 common shares valued at $128,236 for debt and accrued interest of $103,523 · 19,495 common None None None 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 ** XBRL Instance Document 101.SCH ** XBRL Taxonomy Extension Schema Document 101.CAL ** XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF ** XBRL Taxonomy Extension Definition Linkbase Document 101.LAB ** XBRL Taxonomy Extension Label Linkbase Document 101.PRE ** XBRL Taxonomy Extension Presentation Linkbase Document ____________ ** 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. 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: September 15, 2016 By: /s/ Mike Zaman Mike Zaman, CEO By: /s/ Kenneth Bosket Kenneth Bosket, 12
SECURITIES AND EXCHANGE COMMISSIONJuneSeptember 30, 2014CROWN EQUITY HOLDINGS INC.(Exact name of registrant as specified in its charter)Nevada 33-0677140
of incorporation or organization)Road,Street, Las Vegas, NV 89141448-15435440 West Sahara Avenue, Suite 205, Las Vegas, NV 89146(Former name, former address and former fiscal year, if changed since last report)xo No oxoooo¨ No xAugust 14, 2014,September 15, 2016, there were 919,192,50211,191,831 shares of Common Stock of the issuer outstanding.TABLE OF CONTENTSPagePART I: FINANCIAL INFORMATION Item 1.Financial Statements (Unaudited) JuneSeptember 30, 20142015 and December 31, 20132014 (Unaudited)10121213131313 2 Item 4.Mine Safety Information13 Item 5.Other Information13Item 6.Exhibits14Signatures152PART I: FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited) June 30, December 31, 2014 2013 Assets Current Assets Cash $ 6,252 $ 1,088 Marketable securities 14,000 10,500 Marketable securities held in related party 70,000 70,000 Accounts receivable from related party 1,500 1,500 Total Current Assets 91,752 83,088 Property, plant and equipment, net of accumulated depreciation of $64,993and $63,869 1,742 2,866 Total Assets $ 93,494 $ 85,954 Liabilities and Stockholders’ Deficit Current Liabilities Accounts payable and accrued expenses $ 209,679 $ 171,789 Accounts payable to related party 5,026 5,026 Notes payable to related party 229,569 134,219 Notes payable 50,768 15,068 Total Current Liabilities 495,042 326,102 Stockholders' Deficit Preferred stock , $0.001 par value, 100,000,000 shares authorized, 99,000,000 shares undesignated authorized - - Series A convertible preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued or outstanding - - Common stock, $0.001 par value, 4,900,000,000 shares authorized 919,192,504 and 878,192,504 shares issued and outstanding 919,193 878,193 Additional paid-in capital 8,166,451 7,940,951 Accumulated deficit (9,487,192 ) (9,059,292 ) Total Stockholders’ Deficit (401,548 ) (240,148 ) Total Liabilities and Stockholders’ Deficit $ 93,494 $ 85,954 $ 2,150 $ 2,369 6,900 - 9,050 2,369 - 618 $ 9,050 $ 2,987 $ 43,759 $ 56,622 5,026 5,026 181,603 155,886 34,156 155,885 24,500 47,950 289,044 421,369 - - - - 10,822 10,567 10,227,530 9,760,054 (10,508,346 ) (10,189,003 ) (279,994 ) (418,382 ) $ 9,050 $ 2,987 33 Table of Contents Three Months Ended Six Months Ended June 30, June 30, 2014 2013 2014 2013 Revenue $ - $ 16,080 $ - $ 44,380 Operating expenses 74,730 33,308 413,785 61,326 Loss from operations (74,730 ) (17,228 ) (413,785 ) (16,946 ) Other (expense) income Interest expense (7,542 ) (4,284 ) (15,084 ) (8,568 ) Losses on equity method investment - related party - (80,348 ) - (132,988 ) Other (expense) income (173 ) 703 (2,531 ) 2,441 Unrealized (loss) gain on marketable securities (11,550 ) (6,250 ) 3,500 (42,800 ) Total other expense (19,265 ) (90,179 ) (14,115 ) (181,915 ) Net loss $ (93,995 ) $ (107,407 ) $ (427,900 ) $ (198,861 ) Net loss per share – basic and diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Weighted average number of common shares outstanding - basic and diluted 919,192,502 878,286,275 907,640,016 879,300,421 $ 124 $ - $ 801 $ - 12,369 61,525 287,498 475,310 (12,245 ) (61,525 ) (286,697 ) (475,310 ) (1,027 ) (16,937 ) (4,034 ) (32,021 ) (23,407 ) (370,806 ) (28,612 ) (370,806 ) - 230 - (2,301 ) - - (10,000 ) - - (36,696 ) - (36,696 ) - (6,500 ) - (3,000 ) (24,434 ) (430,709 ) (42,646 ) (444,824 ) $ (36,679 ) $ (492,234 ) $ (329,343 ) $ (920,134 ) $ (0.00 ) $ (1.07 ) $ (0.03 ) $ (2.02 ) 10,706,088 459,596 10,688,273 455,766 44 Table of Contents Six Months Ended June 30, 2014 2013 Cash flows from operating activities Net loss $ (427,900 ) $ (198,861 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation 1,124 11,806 Common stock issued for services 266,500 - Unrealized (gain) loss on marketable securities (3,500 ) 42,800 Loss on equity method investments in related party - 132,988 Marketable securities received for revenue - (25,550 ) Changes in operating assets and liabilities: Accounts receivable - (1,500 ) Prepaid expenses - 35,000 Accounts payable and accrued expenses 37,890 13,068 Net cash (used in) provided by operating activities (125,886 ) 9,751 Cash flows from financing activities Payments on notes payable - (2,000 ) Payments on related party notes payable (3,500 ) (4,000 ) Borrowings on notes payable 35,700 1,250 Borrowings on related party notes payable 98,850 800 Net cash provided (used) by financing activities 131,050 (3,950 ) Net increase in cash 5,164 5,801 Cash, beginning of period 1,088 1,209 Cash, end of period $ 6,252 $ 7,010 Supplemental disclosure of cash flow information Interest paid $ - $ - Income taxes paid - - Noncash investing and financing activities Common stock returned and cancelled $ - $ 2,133 $ (329,343 ) $ (920,134 ) 618 1,686 194,700 266,500 - 3,000 - 36,696 - 370,806 - 9,373 28,612 - (6,900 ) - 53,448 54,414 (58,865 ) (177,659 ) - (16,140 ) - (16,140 ) 22,081 - - (3,500 ) 15,983 103,100 20,582 100,350 58,646 199,950 (219 ) 6,151 2,369 1,088 $ 2,150 $ 7,239 $ - $ 22 - - $ 103,523 $ 99,194 19,495 - 99,320 - 40,000 55 Table of Contents (Unaudited)20132014 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 20132014 as reported on Form 10-K, have been omitted. Certain prior period amounts have been reclassified to conform to current period presentation.$9,487,192$10,518,346 and a working capital deficit of $403,290$279,994 as of JuneSeptember 30, 2014.2015. Unless profitability and increase in shareholders’ equity continues, 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.NOTE 3 – MARKETABLE SECURITIESMarketable securities are classified as available-for-sale and are presented in the consolidated balance sheet at fair market value.Per Accounting Standards Codification 820 “Fair Value Measurement”, fair values defined establishes a framework for measuring fair value under generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements.6ASC 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:Level 1: Quoted market prices in active markets for identical assets or liabilitiesLevel 2: Observable market based inputs or unobservable inputs that are corroborated by market dataLevel 3: Unobservable inputs that are not corroborated by market dataCrown Equity has classified these marketable securities at level 1 with a fair value of $84,000 and $80,500 as of June 30, 2014 and December 31, 2013, respectively.Assets and Liabilities Measured at Fair Value on a Recurring Basis as of June 30, 2014:Description Total Balance as of June 30, 2014 Assets: Marketable securities $ 14,000 $ - $ - $ 14,000 Marketable securities held in related party 70,000 - - 70,000 Total $ 84,000 $ - $ - $ 84,000 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2013:Description Total Balance as of December 31, 2013 Assets: Marketable securities $ 10,500 $ - $ - $ 10,500 Marketable securities held in related party 70,000 - - 70,000 Total $ 80,500 $ - $ - $ 80,500 7Per Accounting Standards Codification 825 “ The Fair Value Option for Financial Assets and Financial Liabilities—Including an Amendment of FASB Statement No. 115 ”, an entity is permitted to irrevocably elect fair value on a contract-by-contract basis for new assets or liabilities within the scope of ASC 825 as the initial and subsequent measurement attribute for those financial assets and liabilities and certain other items including property and casualty insurance contracts. Entities electing the fair value option are required to (i) recognize changes in fair value in earnings and (ii) expense any up-front costs and fees associated with the item for which the fair value option is elected. Entities electing the fair value option are required to distinguish, on the face of the statement of financial position, the fair value of assets and liabilities for which it has elected the fair value option, and similar assets and liabilities measured using another measurement attribute. An entity can accomplish this either by reporting the fair value and non-fair-value carrying amounts as separate line items or by aggregating those amounts and disclosing parenthetically the amount of fair value included in the aggregate amount. Crown Equity adopted ASC 825 during the third quarter of fiscal 2009 and elected the fair value option for their marketable securities.NOTE 4 – EQUITY METHOD INVESTMENT IN RELATED PARTYThe Company’s ownership percentage in Cleantech Transit, Inc. was 43% as of June 30, 2014 and December 31, 2013, respectively. During late 2012, the Company’s ownership percentage exceeded 20% and the Company began accounting for this investment under the equity method. It was accounted for as an available-for-sale investment during the six months ended June 30, 2014.Cleantech has had no revenues since inception. Enterprise valuation was used to value this inactive entity and the equity method is used for ongoing reporting.As of June 30, 2014 and December 31, 2013, the carrying value of the equity method investment held in related party was zero.53 – RELATED PARTY TRANSACTIONS2013,2014, the companyCompany had outstanding notes payable to related parties of $134,219.$155,885. During the sixnine months ended JuneSeptember 30, 2014,2015, the Company borrowed an additional $98,850$20,582 under related party notesnotes. A total of $98,550 or related party debt principal and made aggregate payments on these notes payable$770 of $3,500. The notes are unsecured, bearrelated party accrued interest between 0%was forgiven by the note holders and 12%accounted for as a capital transaction. $43,761 of the debt principal and mature between November 19, 2012 and on demand.$15,046 of accrued interest was settled by issuing common stock with fair value of $70,568 resulting in a loss of $11,761. As of JuneSeptember 30, 2014 and December 31, 2013, $96,209 of these notes was past due and in default bearing interest at 18% per annum. As of June 30, 2014,2015 the aggregate outstanding balance under these related party notes payable was $229,569.$34,156. These notes payablepayables are with various officers and directors of the Company and with entities controlled by officers or directors of the Company including Montse Zaman, Phoenix Consulting Services Inc., Tisa Capital Corp., and Ken Bosket Mark Vega and Almulfo Saucedo.8In July 2013etc.entered into a management consultant contract with Cleantech Transit, Inc., a related party, for consulting services through June 30, 2014. The terms of the agreement call for $20,000 per month to be paid in two equal installments of cash and may be terminated by either party 30 days after written notice is given. Due to the nature of the close relationship between the parties, the Company will record this income upon receipt of the actual cash payments. There were no cash receipts and there was no revenue recognized under this agreement during the six months ended June 30, 2014.As of June 30, 2014 and December 31, 2013, the Company heldborrowed an aggregate of 7,000,000 common shares of American Video Teleconferencing, Inc. valued at $70,000 as of June 30, 2014 and December 31, 2013. American Video Teleconferencing, Inc. became a related party in 2014 due to common officers and Directors.NOTE 6 – NOTES PAYABLEDuring the six months ended June 30, 2014 and the June 30, 2013, the Company borrowed $35,700 and $1,250, respectively$15,983 from non-related third parties. $39,433 of the debt principal and $5,283 of the accrued interest were settled by issuing common stock with fair value of $57,668 resulting in a loss of $12,952. The notes are unsecured, due on demand and do not bear interest. Asdemand.June 30, 2014 and December 31, 2013, the aggregate unpaid principal balance under these notes was $50,768 and $15,068, respectively.6 Table of Contents 75 – EQUITYsixnine months ended JuneSeptember 30, 2014,2015, the Company issued an aggregateissued:41,000,000$22,081 cash,$266,500.9· Appointed its CFO, Rudy Chacon to Vice President, its Chairman, Kenneth Bosket to Chief Financial Officer and appointed Mike Zaman as Chairman of the Board, who also remained as the corporation’s President/ CEO and Arnulfo Saucedo-Bardan as it Chief Operations Officer. 7 Table of Contents Road,Street, Las Vegas, NV 89146.JuneSeptember 30, 2014,2015, Crown Equity had fiveno employees and was utilizing the services of one independent contractor and consultant.10JuneSeptember 30, 20142015 Compared to the Three Months Ended JuneSeptember 30, 2014JuneSeptember 30, 2014,2015, revenues were $0$124 and $16,080$0 for the same period in 2013.2014. Net losses were $93,995loss was $36,679 for the three month period ended JuneSeptember 30, 2014 and $107,4072015. Operating expenses were recorded$12,369 for the three months ended JuneSeptember 30, 2013. Operating expenses were $74,730 for the three months ended June 30, 20142015 and $33,308$61,525 for the same period in 2013.2014. Other income and expenses for the three month period ended JuneSeptember 30, 20142015 were other expenses of $19,265$24,434 and other expenses of $90,179$430,709 for the same quarter in 2013.JuneSeptember 30, 20142015 of $11,550$0 compared to unrealized lossesgains of $6,250$6,500 for the same period ended JuneSeptember 30, 2013. In addition, the Company incurred losses from equity method investments in related party of $0 in 2014 and $80,348 in the three month period ended June 30, 2013.JuneSeptember 30, 2015 and 2014 was $1,027 and 2013 was $7,542 and $4,284,$16,937, respectively.Six8 Table of Contents JuneSeptember 30, 20142015 Compared to the SixNine Months Ended JuneSeptember 30, 2013sixnine month period ended JuneSeptember 30, 2014,2015, revenues were $0$801 and $44,380$0 for the same period in 2013.2014. Net losses were $427,900loss was $329,343 for the sixnine month period ended JuneSeptember 30, 20142015 and $198,861net losses of $920,134 were recorded for the sixnine months ended JuneSeptember 30, 2013.2014. Operating expenses were $413,785$287,498 for the sixnine months ended JuneSeptember 30, 20142015 and $61,326$475,310 for the same period in 2013.2014. Other income and expenses for the sixnine month period ended JuneSeptember 30, 20142015 were other expenses of $14,115$42,646 and other expenses of $181,915$2,301 for the same sixnine months in 2013.gainslosses on its marketable securities during the sixnine months ended JuneSeptember 30, 20142015 of $3,500$0 compared to unrealized lossesgains of $42,800$3,000 for the same period ended JuneSeptember 30, 2013. In addition, the Company incurred losses from equity method investments in related party of $0 in the six months ended June 30, 2014 and $132,988 in the six months ended June 30, 2013.sixnine months ended JuneSeptember 30, 20142015 was $266,500$194,700 in stock issued for services. Other operating expenses have remained relatively constant for both periods presented. Interest expense incurred during the sixnine month period ended JuneSeptember 30, 20142015 was $15,084$4,034 compared to $8,568$32,021 for the same period in 2013.JuneSeptember 30, 2014,2015, Crown Equity had current assets of $91,752$9,050 and current liabilities of $495,042, resulting in working capital deficit of $403,290.$289,044. Stockholders' deficit as of JuneSeptember 30, 20142015 was $401,548.byin operating activities for the sixnine months ended JuneSeptember 30, 20142015 was $125,886 compared to net cash provided of $9,751 for the same period in 2013, a net change of $135,637.Net cash used in investing activities was zero for the six months ended June 30, 2014 and 2013.11Net cash provided by financing activities during the six months ended June 30, 2014 was $131,050$58,865 compared to net cash used of $3,950$177,659 for the same period in 2013, an increase2014, a net change of $135,000. $154,403.4T:4: CONTROLS AND PROCEDURESa material weaknessweaknesses in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relatesweaknesses 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. This weakness is 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.Except as noted above, there12None2013.sixnine months ended JuneSeptember 30, 2014,2015, Crown Equity issued 41,000,000 common shares for services with a total value of $266,500 as follows:6,600,000common stock for compensation for $42,900;$22,081;·2,000,000 shares of common stock for consulting services for $13,000.32,400,000stockshares valued at $23,394 for professional services for $210,600.settlement of account payable of $19,49513_____________________14SIGNATURES Date August 14, 2014CEOCFOBy:/s/ John ScrudatoJohn Scrudato, CFO15