Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Jul. 14, 2020 | |
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 | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 12,202,260 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 3,260 | $ 997 |
Total Current Assets | 3,260 | 997 |
Property and Equipment, net | 20,849 | 28,882 |
Total Assets | 24,109 | 29,879 |
Current liabilities | ||
Accounts payable and accrued expenses | 201,163 | 210,223 |
Accounts payable and accrued expenses to related party | 22,892 | 80,664 |
Convertible notes payable to related parties, net of discount | 5,000 | 760 |
Convertible notes payable, net of discount | 17,633 | 0 |
Finance lease obligation, current | 31,047 | 30,681 |
Total Current Liabilities | 277,735 | 322,328 |
Non-Current liabilities | ||
Long-term debt | 20,299 | 25,976 |
Total Liabilities | 298,034 | 348,304 |
Stockholders' deficit | ||
Preferred Stock, 20,000,000 shares authorized, authorized at $0.001 par value, none issued or outstanding | 0 | 0 |
Common Stock, 450,000,000 authorized at $0.001 par value; 12,160,118 and 11,766,766 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 12,159 | 11,766 |
Stock Payable | 1,500 | 43,764 |
Additional paid-in capital | 11,986,012 | 11,418,103 |
Accumulated deficit | (12,273,597) | (11,792,059) |
Total stockholders' deficit | (273,925) | (318,425) |
Total liabilities and stockholders' deficit | 24,109 | 29,879 |
Series A Convertible Perferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred Stock, 20,000,000 shares authorized, authorized at $0.001 par value, none issued or outstanding | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders' deficit | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 12,160,118 | 11,766,766 |
Common stock, shares outstanding | 12,160,118 | 11,766,766 |
Series A Convertible Perferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 1,000 | 1,000 |
Preferred stock, shares outstanding | 1,000 | 1,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
Revenue | $ 577 | $ 682 |
Revenue - related party | 0 | 0 |
Total Revenue | 577 | 682 |
Operating expenses | ||
Depreciation | 8,033 | 7,501 |
General and Administrative | 43,395 | 33,453 |
Total Operating Expenses | 51,428 | 40,954 |
Net Operating Income (Loss) | (50,851) | (40,272) |
Other (expense) | ||
Interest expense | (3,700) | (4,839) |
Amortization of beneficial conversion feature | 0 | (12,318) |
Loss on AP Settlements - related party | (426,987) | 0 |
Total other expense | (430,687) | (17,157) |
Net (loss) | $ (481,538) | $ (57,429) |
Net (loss) per common share - basic and diluted | $ (0.04) | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 12,006,830 | 11,830,192 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT (Unaudited) - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Common Stock Payable [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Dec. 31, 2018 | 1,000 | 11,823,389 | ||||
Balance, amount at Dec. 31, 2018 | $ (329,242) | $ 1 | $ 11,823 | $ 18,756 | $ 11,279,211 | $ (11,639,033) |
Common stock issued for cash, shares | 10,000 | |||||
Common stock issued for cash, amount | 5,000 | $ 0 | $ 10 | 0 | 4,990 | 0 |
Forgiveness of AP by CEO | 0 | |||||
Net loss | (57,429) | $ 0 | $ 0 | 0 | 0 | (57,429) |
Notes Payable and Accrued Interest Converted to Common Stock, shares | 23,377 | |||||
Notes Payable and Accrued Interest Converted to Common Stock, amount | 13,199 | $ 0 | $ 23 | 0 | 13,176 | 0 |
Common Stock Subscribed for services | 6,252 | 0 | 0 | 6,252 | 0 | 0 |
Forgiveness of Interest - Related Party | 9,282 | 0 | 0 | 0 | 9,282 | 0 |
Compensation Expense | 7,698 | $ 0 | $ 0 | 0 | 7,698 | 0 |
Balance, shares at Mar. 31, 2019 | 1,000 | 11,856,766 | ||||
Balance, amount at Mar. 31, 2019 | (345,240) | $ 1 | $ 11,856 | 25,008 | 11,314,357 | (11,696,462) |
Balance, shares at Dec. 31, 2019 | 1,000 | 11,766,766 | ||||
Balance, amount at Dec. 31, 2019 | (318,425) | $ 1 | $ 11,766 | 43,764 | 11,418,103 | (11,792,059) |
Common stock issued for cash, shares | 40,000 | |||||
Common stock issued for cash, amount | 20,000 | $ 0 | $ 40 | 0 | 19,960 | 0 |
Common Stock Subscribed for services - related party, shares | 148,419 | |||||
Common Stock Subscribed for services - related party, amount | 7,752 | $ 0 | $ 148 | (42,264) | 49,868 | 0 |
Settlement of AP - related party, shares | 204,933 | |||||
Settlement of AP - related party, amount | 64,024 | $ 0 | $ 205 | 0 | 63,819 | 0 |
Warrant Subscriptions | 75 | 0 | 0 | 0 | 75 | 0 |
Loss on AP Settlement - related party | 426,987 | 0 | 0 | 0 | 426,987 | 0 |
Forgiveness of AP by CEO | 7,200 | 0 | 0 | 0 | 7,200 | 0 |
Net loss | (481,538) | $ 0 | $ 0 | 0 | 0 | (481,538) |
Forgiveness of Interest - Related Party | 0 | |||||
Balance, shares at Mar. 31, 2020 | 1,000 | 12,160,118 | ||||
Balance, amount at Mar. 31, 2020 | $ (273,925) | $ 1 | $ 12,159 | $ 1,500 | $ 11,986,012 | $ (12,273,597) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unauidted) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (481,538) | $ (57,429) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Common stock issued for services | 7,752 | 13,950 |
Depreciation | 8,033 | 7,501 |
Loss on AP Settlement | 426,987 | 0 |
Amortization of beneficial conversion feature | 0 | 12,318 |
Changes in operating assets and liabilities: | ||
Deferred revenue | 0 | 0 |
Accounts payable and accrued expenses - related party | (57,772) | 5,252 |
Accounts payable and accrued expenses | 79,797 | 5,708 |
Net cash (used in) operating activities | (16,741) | (12,700) |
Cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Payments on convertible notes payable, related party | (760) | (1,300) |
Borrowings from convertible notes payable, related party | 5,000 | 0 |
Proceeds from Sale of Stock | 20,000 | 5,000 |
Principal payments on debt | (5,311) | (2,714) |
Warrant subscriptions | 75 | 0 |
Net cash provided by financing activities | 19,004 | 986 |
Net increase (decrease) in cash | 2,263 | (11,714) |
Cash, beginning of period | 997 | 13,294 |
Cash, end of period | 3,260 | 1,580 |
Supplemental disclosure of cash flow information | ||
Interest paid | 3,700 | 2,022 |
Income taxes paid | 0 | 0 |
Non-Cash Transactions | ||
Forgiveness of AP by CEO | 7,200 | 0 |
Forgiveness of Interest - Related Party | 0 | 9,282 |
Purchase of fixed assets through finance lease | 0 | 9,985 |
Debt converted to common stock | 0 | 13,199 |
Convertible debt for payment of AP | 17,633 | 0 |
RP-AP Converted into common stock | 64,024 | 0 |
Shares issued for stock payable | $ 43,764 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
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 making 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. On January 27, 2020, the Company re-acquired from AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale. 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 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 February 2016, the FASB issued ASU 2016-02 “ Leases”, Leases” In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation, to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments for employees, with certain exceptions. Under the new guidance, the cost for nonemployee awards may be lower and less volatile than under current US GAAP because the measurement generally will occur earlier and will be fixed at the grant date. This update is effective for annual financial reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, although early adoption is permitted. The Company adopted the standard effective January 1, 2019 and found the adoption did not have a material effect on our financial statements. Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows. Accounting Standards not yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 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 Contract 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 are in agreement 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 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 are being provided. Three Months Ended Mar 31, 2020 Three Months Ended Mar 31, 2019 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server $ - $ - $ - $ - $ - $ - Click Based and Impressions Ads 222 - 222 122 - 122 Domain Registrations - - - 10 - 10 Publishing and Distribution 355 - 355 550 - 550 Server - - - - - - $ 577 $ - $ 577 $ 682 $ - $ 682 Revenue is based on providing through the Company’s server services, Managed Information Technology, 24/7 support, which includes designing, developing, testing, maintaining functionality, infrastructure monitoring, managing and hosting, combined with revenue received from the display of click based and impressions ads located on the Company’s websites, domain name registration, publishing and distribution of news and press releases. Mar 31, Mar 31, 2020 2019 Deferred Revenue $ - $ 50,000 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, current aging status of the customer accounts, and 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, 2020 and December 31, 2019. Risk Concentrations The Company does not hold cash in excess of federally insured limits. During the period ending March 31, 2020 and 2019, 100% of the Company’s revenues were from third parties for the displaying of click based and impressions ads located on the company’s websites, as well as for press releases and article publishing and distribution by the Company. General and Administrative Expenses Crown Equity's general and administrative expenses consisted of the following types of expenses during 2020 and 2019: Compensation expense, 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 dispositions 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 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 expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2020 or 2019. Basic and Diluted Net (Loss) per Share Three Months Mar 31, 2020 Three Months Mar 31, 2019 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 12,006,830 11,830,192 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.04 ) $ (0.00 ) Diluted $ (0.04 ) $ (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, 2020 and 2019. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended March 31, 2020 is 3,001,520. 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 2019 and 2020 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, 2020, and December 31, 2019, 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, 2020 and December 31, 2019: Mar 31, 2020 Dec 31, 2019 Net operating loss $ 426,743 $ 416,916 Valuation allowance ( 426,743 ) (416,916 ) Net deferred tax asset - - Uncertain tax position The Company also follows the 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, 2020 and December 31, 2019. 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 cost for the periods ended March 31, 2020 and December 31, 2019. Advertising Cost The Company spent $0 for advertisement for the periods ended March 31, 2020 and 2019. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2020 | |
GOING CONCERN | |
NOTE 2 -GOING CONCERN | As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of $12,273,597 since its inception and had a working capital deficit of $274,475, negative cash flows from operations and limited business operations as of March 31, 2020. 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. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
NOTE 3 - PROPERTY AND EQUIPMENT | The Company’s policy is to capitalize all property purchases over $1,000 and depreciates the assets over their useful lives of 3 to 7 years. Property consists of the following at March 31, 2020 and December 31, 2019: Mar 31, 2020 Dec 31, 2019 Computers – 3 year estimated useful life $ 96,669 $ 96,669 Less – Accumulated Depreciation (75,820 ) (67,787 ) Property and Equipment, net $ 20,849 $ 28,882 Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $8,033, and $7,501 for the three months ended March 31, 2020 and 2019, respectively. |
FINANCE LEASES
FINANCE LEASES | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASES | |
NOTE 4 - FINANCE LEASES | During 2019, the Company borrowed an aggregate $9,985 under the following third-party and related party finance lease transactions: ☐ A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a payments of $498 in additional to a $22 management fee for a total monthly payment of $520. The lease has a bargain purchase option of $1 at the end of the lease term. The following is a schedule of the net book value of the finance lease. Assets Mar 31, 2020 Leased equipment under finance lease, $ 96,669 less accumulated amortization (75,820 ) Net $ 20,849 Liabilities Mar 31, 2020 Obligations under finance lease (current) $ 31,047 Obligations under finance lease (noncurrent) 20,299 Total $ 51,346 Below is a reconciliation of leases to the financial statements. Finance Leases Leased asset balance $ 20,849 Liability balance 51,346 Cash flow (operating) - Cash flow (financing) - Interest expense $ 3,700 The following is a schedule, by years, of future minimum lease payments required under finance leases. Years ended December 31 Finance Leases 2020 28,585 2021 15,726 2022 11,860 Thereafter - Total 56,171 Less: Imputed Interest (4,825 ) Total Liability 51,346 Other information related to leases is as follows: Lease Type Weighted Average Remaining Term Weighted Average Discount Rate (1) Finance Leases 2.03 years 16 % Based on average interest rate of 16%, average term remaining (months) 21.03 Average term remain (years) 2.03 (1) This discount rate is consistent with our borrowing rates from various lenders. |
NOTES PAYABLE AND CONVERTIBLE N
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | |
NOTE 5 -NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | As of March 31, 2020, and December 31, 2019, the Company had unamortized discount of $0 and $0 respectively. The Company analyzed the below convertible notes for derivatives noting none. Original Due Interest Conversion Mar 31, Name Note Date Date Rate Rate 2020 Related Party: Mike Zaman 01/19/2018 01/19/2019 12 % $ 0.50 - Montse Zaman 03/25/2020 03/25/2021 12 % $ - 5,000 Total Convertible Related Party Notes Payable 5,000 Less: Debt Discount - Convertible Notes Payable, net of Discount - Related Party 5,000 Third Party: Willy A. Saint-Hilaire 02/27/2020 02/27/2021 12 % $ - 14,500 Willy A. Saint-Hilaire 03/08/2020 03/08/2021 12 % $ - 1,581 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 500 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 400 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 652 Total Convertible Third Party Notes Payable 17,633 Less: Debt Discount - Convertible Notes Payable, net of Discount - Third Party 17,633 Mike Zaman As of December 31, 2019, the Company owed Mike Zaman a total of $760 and remaining accrued interest of $3,503. The balance of $760 was paid on January 13, 2020 and the remaining accrued interest of $3,503 were not converted as of March 31, 2020. Montse Zaman On March 25, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $5,000. The note carries interest at 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common shares. Willy Ariel Saint-Hilaire On February 27, 2020, the Company entered into a promissory note with Willy Ariel Saint-Hilaire in the amount of $14,500. The note carries interest at 12% per annum. On March 8, 2020, the Company entered into a promissory note with Willy Ariel Saint--Hilaire in the amounts of $1,581. The notes carry interest at 12% per annum. On March 24, 2020, the Company entered into promissory notes with Willy Ariel Saint-Hilaire in the amounts of $500, $400, and $652. The notes carry interest at 12% per annum. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
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 a month, on a month to month basis and can be cancelled at any time but expects to continue lease payments for the full 2020 year. On February 13, 2020, Munti Consulting LLC was issued a warrant at a price of $0.000025 per share ($25 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. Exercisable after the first (1st) anniversary of the date of filing of the first Form S-1 filed with the U.S. Securities and Exchange Commission after the issuance of this Warrant. On March 13, 2020, BBCKQK Trust Kevin Wiltz was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On March 13, 2020, Willy Ariel Saint--Hilaire was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
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. On January 13, 2020, the Company paid the remaining payable balance due to Mike Zaman of $760 for expenses paid on behalf of the Company. During the period ended March 31, 2020, the Company recorded the forgiveness of $7,200 accounts payable rent balance due to Mike Zaman. The Company is periodically advanced operating funds from related parties with convertible notes payable. During the three months ended March 31, 2020, total convertible notes from related parties was $5,000. The Company is also periodically advanced funds to cover account payables by direct payment of the account payables from related parties. As of March 31, 2020, the Company has a balance of $22,892 of accounts and accrued expenses payable with related parties. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 3 Months Ended |
Mar. 31, 2020 | |
STOCKHOLDERS DEFICIT | |
NOTE 8 - STOCKHOLDERS' DEFICIT | Common Stock During the three months ending March 31, 2020, the Company issued the following: · 40,000 common shares for cash proceeds of $20,000. · 140,083 shares issued for settlement of stock payable due to Vinoth Sambandan for balance owed through December 31, 2019. · 204,933 shares issued for settlement of accounts payable due to Vinoth Sambandan for balance owed through December 31, 2019. · 8,336 shares issued for stock payable for 1st quarter 2020 due to Vinoth Sambandan. · Stock payable for 1,500 shares for services rendered to third parties. 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, 2020 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, 2020, the Company has 1,000 shares of Series A Preferred Stock outstanding. On February 13, 2020, the Company granted non-qualified stock options to purchase up to 1,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company’s S1 registration filing of which date is yet to be determined. On March 13, 2020, the Company granted non-qualified stock options to purchase up to 2,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company’s S1 registration filing of which date is yet to be determined. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
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 2020. The Company's deferred tax assets consisted of the following as of March 31, 2020 and December 31, 2019: 2020 2019 Net operating loss $ 426,743 $ 416,916 Valuation allowance (426,743 ) (416,916 ) Net deferred tax asset $ - $ - As of March 31, 2020, and December 31, 2019, the Company's accumulated net operating loss carry forward was approximately $2,032,111 and $1,985,312 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%. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 10 - SUBSEQUENT EVENTS | On April 1, 2020, Addicted 2 Marketing LLC was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share. On April 28, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $4,000. The note carries interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common Shares at a rate of $0.50 per share. On April 28, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. On April 29, 2020, the Company issued 5,142 shares of common stock to Munti Consulting LLC for interest owed that was subsequently forgiven. On April 30, 2020, the Company received a $4,000.00 loan from the Small Business Administration CARES program. On May 1, 2020, Mike Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On May 1, 2020, Montse Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On May 4, 2020, Arnulfo Saucedo- Bardan was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On May 7, 2020, Arnold F. Sock was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. On May 7, 2020 Rudy Chacon was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 7, 2020, Sadegh Salmassi was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020, Glen J. Rineer was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020 Barry Cohen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020, Malcom Ziman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020 Brett Matus was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020 Brian Colvin was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On May 8, 2020 Jacob Colvin was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 11, 2020, Mohammad Sadrolashrafi was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. On May 13, 2020 Steven A. Fishman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 13, 2020 Wendell and Sharon Piper was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 15, 2020, the Company agreed to issued 160,000 shares to Steven Cantor to settle compensation dispute. The settlement was accepted and executed on June 22, 2020. On May 19, 2020 Joan R. Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share. On May 19, 2020 Marvin A Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share. On May 20, 2020 Willy Rafael Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 22, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $1,500. The note carries interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common Shares at a rate of $0.50 per share. On May 27, 2020 James Bobrik was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 28, 2020 Richard R Shehane was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On May 29, 2020 Ybelka Saint Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On June 3, 2020, Jeffery Connell was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share. On June 8, 2020 Hassan M. Oji was issued a warrant at a price of $0.000025 per share ($7.50 total) to purchase 300,000 shares of common stock at the exercise price of $0.60 per share. On June 9, 2020 Kenneth Cornell Bosket was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share. On June 9, 2020, Kim Smith was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. On June 12, 2020 Violet Gewerter was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. On June 12, 2020, WYSH Investments purchased 20,000 shares of common stock at $0.50 per share at the purchase price of $10,000. On June 16, 2020, Roy S Worbets was issued a warrant at a price of $0.000025 per share ($5.00) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On June 19, 2020, Elvis E. Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On June 30, 2020, Chris Knudsen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On July 1, 2020, Theresa Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.. On July 1, 2020, Donald Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share. On July 3, 2020, Jonathan Dawson purchased 3,000 shares of common stock at $0.50 per share at the purchase price of $1,500. On July 3, 2020, Lloyd Check III purchased 4,000 shares of common stock at $0.50 per share at the purchase price of $2,000. On July 3, 2020, Glen Rineer purchased 8,000 shares of common stock at $0.50 per share at the purchase price of $4,000. On July 3, 2020, Hayden Dawson purchased 2,000 shares of common stock at $0.50 per share at the purchase of $2,000. On July 3, 2020, Diversified Unlimited agreed to the conversion of $3,000 accounts payable balance for services rendered thru June 30, 2020 for common stock. The balance of $3,000 will be replaced with the issuance of Common Stock shares at a rate of $0.50 per share for total of 6,000 shares to be issued. The shares have not been issued as of filing date. On July 10, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share. Management has evaluated subsequent events as of the date of the Financial Statements and has determined that all events are disclosed herein. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 making 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. On January 27, 2020, the Company re-acquired from AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale. |
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 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 February 2016, the FASB issued ASU 2016-02 “ Leases”, Leases” In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation, to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments for employees, with certain exceptions. Under the new guidance, the cost for nonemployee awards may be lower and less volatile than under current US GAAP because the measurement generally will occur earlier and will be fixed at the grant date. This update is effective for annual financial reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, although early adoption is permitted. The Company adopted the standard effective January 1, 2019 and found the adoption did not have a material effect on our financial statements. Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows. |
Accounting Standards not yet Adopted | In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
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 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 Contract 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 are in agreement 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 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 are being provided. Three Months Ended Mar 31, 2020 Three Months Ended Mar 31, 2019 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server $ - $ - $ - $ - $ - $ - Click Based and Impressions Ads 222 - 222 122 - 122 Domain Registrations - - - 10 - 10 Publishing and Distribution 355 - 355 550 - 550 Server - - - - - - $ 577 $ - $ 577 $ 682 $ - $ 682 Revenue is based on providing through the Company’s server services, Managed Information Technology, 24/7 support, which includes designing, developing, testing, maintaining functionality, infrastructure monitoring, managing and hosting, combined with revenue received from the display of click based and impressions ads located on the Company’s websites, domain name registration, publishing and distribution of news and press releases. Mar 31, Mar 31, 2020 2019 Deferred Revenue $ - $ 50,000 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, current aging status of the customer accounts, and 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, 2020 and December 31, 2019. |
Risk Concentrations | The Company does not hold cash in excess of federally insured limits. During the period ending March 31, 2020 and 2019, 100% of the Company’s revenues were from third parties for the displaying of click based and impressions ads located on the company’s websites, as well as for press releases and article publishing and distribution by the Company. |
General and Administrative Expenses | Crown Equity's general and administrative expenses consisted of the following types of expenses during 2020 and 2019: Compensation expense, 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 dispositions 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 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 expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in 2020 or 2019. |
Basic and Diluted Net (Loss) per Share | Three Months Mar 31, 2020 Three Months Mar 31, 2019 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 12,006,830 11,830,192 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.04 ) $ (0.00 ) Diluted $ (0.04 ) $ (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, 2020 and 2019. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended March 31, 2020 is 3,001,520. |
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 2019 and 2020 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, 2020, and December 31, 2019, 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, 2020 and December 31, 2019: Mar 31, 2020 Dec 31, 2019 Net operating loss $ 426,743 $ 416,916 Valuation allowance ( 426,743 ) (416,916 ) Net deferred tax asset - - |
Uncertain tax position | The Company also follows the 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, 2020 and December 31, 2019. |
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 cost for the periods ended March 31, 2020 and December 31, 2019. |
Advertising Cost | The Company spent $0 for advertisement for the periods ended March 31, 2020 and 2019. |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | |
Schedule of Sales recognized | Three Months Ended Mar 31, 2020 Three Months Ended Mar 31, 2019 Third Party Related Party Total Third Party Related Party Total IT Services on Company Server $ - $ - $ - $ - $ - $ - Click Based and Impressions Ads 222 - 222 122 - 122 Domain Registrations - - - 10 - 10 Publishing and Distribution 355 - 355 550 - 550 Server - - - - - - $ 577 $ - $ 577 $ 682 $ - $ 682 |
Schedule of revenue received from the display of click based and impressions | Mar 31, Mar 31, 2020 2019 Deferred Revenue $ - $ 50,000 |
Schedule of Basic and Diluted Net (Loss) per Share | Three Months Mar 31, 2020 Three Months Mar 31, 2019 Numerator: Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Net (Loss) attributable to Crown Equity Holdings, Inc. $ (481,538 ) $ (57,429 ) Denominator: Weighted average common and common equivalent shares outstanding – basic and diluted 12,006,830 11,830,192 Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: Basic $ (0.04 ) $ (0.00 ) Diluted $ (0.04 ) $ (0.00 ) |
Schedule of deferred tax assets | Mar 31, 2020 Dec 31, 2019 Net operating loss $ 426,743 $ 416,916 Valuation allowance ( 426,743 ) (416,916 ) Net deferred tax asset - - |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
Schedule of property plant and equipment | Mar 31, 2020 Dec 31, 2019 Computers – 3 year estimated useful life $ 96,669 $ 96,669 Less – Accumulated Depreciation (75,820 ) (67,787 ) Property and Equipment, net $ 20,849 $ 28,882 |
FINANCE LEASES (Tables)
FINANCE LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASES (Tables) | |
Schedule of net book value of finance lease | Assets Mar 31, 2020 Leased equipment under finance lease, $ 96,669 less accumulated amortization (75,820 ) Net $ 20,849 Liabilities Mar 31, 2020 Obligations under finance lease (current) $ 31,047 Obligations under finance lease (noncurrent) 20,299 Total $ 51,346 |
Schedule of reconciliation of leases to the financial | Finance Leases Leased asset balance $ 20,849 Liability balance 51,346 Cash flow (operating) - Cash flow (financing) - Interest expense $ 3,700 |
Schedule of future minimum lease payments | Years ended December 31 Finance Leases 2020 28,585 2021 15,726 2022 11,860 Thereafter - Total 56,171 Less: Imputed Interest (4,825 ) Total Liability 51,346 |
Schedule of information related to lease | Lease Type Weighted Average Remaining Term Weighted Average Discount Rate (1) Finance Leases 2.03 years 16 % |
NOTES PAYABLE AND CONVERTIBLE_2
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES | |
Schedule of Convertible Notes Payable | Original Due Interest Conversion Mar 31, Name Note Date Date Rate Rate 2020 Related Party: Mike Zaman 01/19/2018 01/19/2019 12 % $ 0.50 - Montse Zaman 03/25/2020 03/25/2021 12 % $ - 5,000 Total Convertible Related Party Notes Payable 5,000 Less: Debt Discount - Convertible Notes Payable, net of Discount - Related Party 5,000 Third Party: Willy A. Saint-Hilaire 02/27/2020 02/27/2021 12 % $ - 14,500 Willy A. Saint-Hilaire 03/08/2020 03/08/2021 12 % $ - 1,581 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 500 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 400 Willy A. Saint-Hilaire 03/24/2020 03/24/2021 12 % $ - 652 Total Convertible Third Party Notes Payable 17,633 Less: Debt Discount - Convertible Notes Payable, net of Discount - Third Party 17,633 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INCOME TAXES | |
Schedule of Deferred Tax | Mar 31, 2020 Dec 31, 2019 Net operating loss $ 426,743 $ 416,916 Valuation allowance ( 426,743 ) (416,916 ) Net deferred tax asset - - |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
IT Services on Company Server | $ 0 | $ 0 |
Click Based and Impressions Ads | 222 | 122 |
Domain Registrations | 0 | 10 |
Publishing and Distribution | 355 | 550 |
Server | 0 | 0 |
Total sales | 577 | 682 |
Related Party [Member] | ||
IT Services on Company Server | 0 | 0 |
Click Based and Impressions Ads | 0 | 0 |
Domain Registrations | 0 | 0 |
Publishing and Distribution | 0 | 0 |
Server | 0 | 0 |
Total sales | 0 | 0 |
Third Party [Member] | ||
IT Services on Company Server | 0 | 0 |
Click Based and Impressions Ads | 222 | 122 |
Domain Registrations | 0 | 10 |
Publishing and Distribution | 355 | 550 |
Server | 0 | 0 |
Total sales | $ 577 | $ 682 |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | ||
Deferred Revenue | $ 0 | $ 50,000 |
NATURE OF BUSINESS AND SUMMAR_6
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net loss | $ (481,538) | $ (57,429) |
Net (Loss) attributable to Crown Equity Holdings, Inc. | $ (481,538) | $ (57,429) |
Denominator: | ||
Weighted average common and common equivalent shares outstanding ? basic and diluted | 12,006,830 | 11,830,192 |
Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.: | ||
Basic | $ (0.04) | $ 0 |
Diluted | $ (0.04) | $ 0 |
NATURE OF BUSINESS AND SUMMAR_7
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details 3) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | ||
Net operating loss | $ 426,743 | $ 416,916 |
Valuation allowance | (426,743) | (416,916) |
Net deferred tax asset | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMAR_8
NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of anti-dilutive shares excluded | 3,001,520 | |
Percentage of income tax realization benefit | 50.00% | |
Advertisement expenses | $ 0 | $ 0 |
Third Party [Member] | ||
Percentage of revenues received | 100.00% |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
GOING CONCERN | ||
Accumulated deficit | $ (12,273,597) | $ (11,792,059) |
Working capital deficit | $ (274,475) |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
PROPERTY AND EQUIPMENT | ||
Computers - 3 year estimated useful life | $ 96,669 | $ 96,669 |
Less - Accumulated Depreciation | (75,820) | (67,787) |
Property and Equipment, net | $ 20,849 | $ 28,882 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Depreciation | $ 8,033 | $ 7,501 |
Capitalized property | $ 1,000 | |
Minimum [Member] | ||
Assets estimated useful life | 3 years | |
Maximum [Member] | ||
Assets estimated useful life | 7 years |
FINANCE LEASES (Details)
FINANCE LEASES (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Leased equipment under finance lease | $ 96,669 | |
Less accumulated amortization | (75,820) | |
Net | 20,849 | |
Liabilities | ||
Obligations under finance lease (current) | 31,047 | $ 30,681 |
Obligations under finance lease (noncurrent) | 20,299 | |
Total | $ 51,346 |
FINANCE LEASES (Details 1)
FINANCE LEASES (Details 1) - Finance Leases [Member] | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leased asset balance | $ 20,849 |
Liability balance | 51,346 |
Cash flow (operating) | 0 |
Cash flow (financing) | 0 |
Interest expense | $ 3,700 |
FINANCE LEASES (Details 2)
FINANCE LEASES (Details 2) - Finance Leases [Member] | Dec. 31, 2019USD ($) |
2020 | $ 28,585 |
2021 | 15,726 |
2022 | 11,860 |
Thereafter | 0 |
Total | 56,171 |
Less: Imputed Interest | (4,825) |
Total Liability | $ 51,346 |
FINANCE LEASES (Details 3)
FINANCE LEASES (Details 3) - Finance Leases [Member] | Mar. 31, 2020 | |
Weighted Average Remaining Term | 2 years 10 days | [1] |
Weighted Average Discount Rate (1) | 16.00% | |
[1] | This discount rate is consistent with our borrowing rates from various lenders. |
FINANCE LEASES (Details Narrati
FINANCE LEASES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Purchase of fixed assets through finance lease | $ 0 | $ 9,985 |
Financial lease description | Based on average interest rate of 16%, average term remaining (months) 21.03 Average term remain (years) 2.03 | |
Capital Lease [Member] | ||
Interest rate | 22.00% | |
Amortization period | 24 months | |
Monthly payments | $ 520 | |
Bargain purchase option | 1 | |
Note payable | 9,985 | |
Other payments | 498 | |
Payment for Management Fee | $ 22 |
NOTES PAYABLE AND CONVERTIBLE_3
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 08, 2020 | Feb. 27, 2020 | Dec. 31, 2019 | |
Convertible Notes Payable, net of Discount - Related Party | $ 5,000 | $ 760 | ||
Convertible Notes Payable, net of Discount - Third Party | 17,633 | 0 | ||
Convertible Notes Payable [Member] | Related Party [Member] | ||||
Total Convertible Related Party Notes Payable | 5,000 | |||
Less: Debt Discount | 0 | |||
Convertible Notes Payable, net of Discount - Related Party | $ 5,000 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire 1 [Member] | ||||
Original Note Date | Feb. 27, 2020 | |||
Note payable | $ 14,500 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Feb. 27, 2021 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire 2 [Member] | ||||
Original Note Date | Mar. 8, 2020 | |||
Note payable | $ 1,581 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Mar. 8, 2021 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire 3 [Member] | ||||
Original Note Date | Mar. 24, 2020 | |||
Note payable | $ 500 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Mar. 24, 2021 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire 4 [Member] | ||||
Original Note Date | Mar. 24, 2020 | |||
Note payable | $ 400 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Mar. 24, 2021 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire 5 [Member] | ||||
Original Note Date | Mar. 24, 2020 | |||
Note payable | $ 652 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Mar. 24, 2021 | |||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire [Member] | ||||
Note payable | $ 1,581 | $ 14,500 | ||
Less: Debt Discount | $ 0 | |||
Total Convertible Third Party Notes Payable | 17,633 | |||
Convertible Notes Payable, net of Discount - Third Party | $ 17,633 | |||
Convertible Notes Payable [Member] | Mike Zaman [Member] | ||||
Original Note Date | Jan. 19, 2018 | |||
Note payable | $ 0 | $ 760 | ||
Conversion Rate | $ 0.50 | |||
Interest Rate | 12.00% | |||
Due Date | Jan. 19, 2019 | |||
Convertible Notes Payable [Member] | Montse Zaman [Member] | ||||
Original Note Date | Mar. 25, 2020 | |||
Note payable | $ 5,000 | |||
Conversion Rate | ||||
Interest Rate | 12.00% | |||
Due Date | Mar. 25, 2021 |
NOTES PAYABLE AND CONVERTIBLE_4
NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES (Details Narrative) - USD ($) | Jan. 13, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 25, 2020 | Mar. 24, 2020 | Mar. 08, 2020 | Feb. 27, 2020 | Dec. 31, 2019 |
Unamortized discount | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Payments on convertible notes payable, related party | 760 | $ 1,300 | ||||||
Convertible Notes Payable [Member] | Willy A. Saint-Hilaire [Member] | ||||||||
Note payable | $ 1,581 | $ 14,500 | ||||||
Interest rate | 12.00% | 12.00% | ||||||
Convertible Notes Payable [Member] | Mike Zaman [Member] | ||||||||
Accrued interest | 3,503 | 3,503 | ||||||
Note payable | $ 0 | $ 760 | ||||||
Payments on convertible notes payable, related party | $ 760 | |||||||
Convertible Promissory Note [Member] | Montse Zaman [Member] | ||||||||
Note payable | $ 5,000 | |||||||
Interest rate | 12.00% | |||||||
Convertible Notes Payable 1 [Member] | Willy A. Saint-Hilaire [Member] | ||||||||
Note payable | $ 500 | |||||||
Interest rate | 12.00% | |||||||
Convertible Notes Payable 2 [Member] | Willy A. Saint-Hilaire [Member] | ||||||||
Note payable | $ 400 | |||||||
Interest rate | 12.00% | |||||||
Convertible Notes Payable 3 [Member] | Willy A. Saint-Hilaire [Member] | ||||||||
Note payable | $ 652 | |||||||
Interest rate | 12.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 13, 2020 | Feb. 13, 2020 | |
BBCKQK Trust Kevin Wiltz [Member] | |||
Warrant issuance price | $ 0.000025 | ||
Warrants issued to purchase common stcok | 1,000,000 | ||
Fair value of warrants issued | $ 25 | ||
Warrants exercise price | $ 0.60 | ||
Willy A. Saint-Hilaire [Member] | |||
Warrant issuance price | $ 0.000025 | ||
Warrants issued to purchase common stcok | 1,000,000 | ||
Fair value of warrants issued | $ 25 | ||
Warrants exercise price | $ 0.60 | ||
Munti Consulting LLC [Member] | |||
Warrant issuance price | $ 0.000025 | ||
Warrants issued to purchase common stcok | 1,000,000 | ||
Fair value of warrants issued | $ 25 | ||
Warrants exercise price | $ 0.60 | ||
Automobile lease [Member] | |||
Monthly payment | $ 395 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jan. 13, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Convertible Notes Payable - Related Party | $ 5,000 | $ 760 | ||
Accounts payable and accrued expenses to related party | 22,892 | $ 80,664 | ||
Payments on convertible notes payable, related party | 760 | $ 1,300 | ||
Convertible Notes Payable [Member] | Mike Zaman [Member] | ||||
Payments on convertible notes payable, related party | $ 760 | |||
Forgiveness of interest, related party | $ 7,200 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 13, 2020 | Feb. 13, 2020 | Dec. 31, 2019 | |
Common stock shares issued for cash, shares | 40,000 | ||||
Proceeds from issuance of common shares | $ 20,000 | $ 5,000 | |||
Common stock, shares authorized | 450,000,000 | 450,000,000 | |||
Preferred stock, authorized shares | 20,000,000 | 20,000,000 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Series A Preferred Stock [Member] | |||||
Preferred stock, authorized shares | 1,000 | ||||
Preferred stock, shares outstanding | 1,000 | ||||
2006 Equity Incentive Plan [Member] | |||||
Options issued to purchase common stock | 3,000,000 | ||||
Common stock, shares authorized | 3,000,000 | ||||
Third Party [Member] | |||||
Common stock shares issued for services, shares | 1,500 | ||||
Vinoth Sambandam [Member] | |||||
Shares issued upon settlement of stock payable, shares | 140,083 | ||||
Shares issued upon settlement of account payable, shares | 204,933 | ||||
Shares issued for stock payable, shares | 8,336 | ||||
Non-qualified stock options [Member] | |||||
Options issued to purchase common stock | 2,000,000 | 1,000,000 | |||
Options exercise price | $ 0.60 | $ 0.60 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
INCOME TAXES | ||
Net operating loss | $ 426,743 | $ 416,916 |
Valuation allowance | (426,743) | (416,916) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||
Net operating loss carry forward | $ 2,032,111 | $ 1,985,312 |
Description of expiration of operating loss carryforwards | Expire in the year 2032 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||
Jul. 03, 2020 | Jun. 12, 2020 | May 22, 2020 | May 15, 2020 | Apr. 30, 2020 | Apr. 29, 2020 | Apr. 28, 2020 | Mar. 31, 2020 | Jul. 10, 2020 | Jul. 01, 2020 | Jun. 30, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Jun. 09, 2020 | Jun. 08, 2020 | Jun. 03, 2020 | May 29, 2020 | May 28, 2020 | May 27, 2020 | May 20, 2020 | May 19, 2020 | May 13, 2020 | May 11, 2020 | May 08, 2020 | May 07, 2020 | May 04, 2020 | May 01, 2020 | Apr. 01, 2020 | Mar. 13, 2020 | Feb. 13, 2020 | |
Stock Issued During Period, Value, Issued for Services | $ 7,752 | |||||||||||||||||||||||||||||
Willy Ariel Saint-Hilaire [Member] | Convertible Promissory Note [Member] | ||||||||||||||||||||||||||||||
Convertible promissory note | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Munti Consulting LLC [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.000025 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Small Business Administration CARES program [Member] | ||||||||||||||||||||||||||||||
Proceeds from loan | $ 4,000 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Montse Zaman [Member] | ||||||||||||||||||||||||||||||
Convertible promissory note | $ 1,500 | $ 4,000 | ||||||||||||||||||||||||||||
Conversion rate | 0.50 | 0.50 | ||||||||||||||||||||||||||||
Interest Rate | 12.00% | 12.00% | ||||||||||||||||||||||||||||
Subsequent Event [Member] | Shahram Khial [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 100,000 | 500,000 | ||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | $ 0.000025 | ||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | 0.60 | ||||||||||||||||||||||||||||
Subsequent Event [Member] | Hayden Dawson [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 2,000 | $ 0 | 0 | $ 0 | ||||||||||||||||||||||||||
Common stock purchased shares, Shares | 2,000 | |||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | WYSH Investments [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 10,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Common stock purchased shares, Shares | 20,000 | |||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Glen Rineer [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 4,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Common stock purchased shares, Shares | 8,000 | |||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Lloyd Check III [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 2,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Common stock purchased shares, Shares | 4,000 | |||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Jonathan Dawson [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, Amount | $ 1,500 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||||||||
Common stock purchased shares, Shares | 3,000 | |||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Theresa Kitt [Member] | Warrant [Member] | Donald Kitt [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Chris Knudsen [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Elvis E. Saint-Hilaire [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Roy S Worbets [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Violet Gewerter [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 500,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Kim Smith [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 500,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Kenneth Cornell Bosket [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 1,000,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Hassan M. Oji [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 300,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Jeffery Connell [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 100,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Ybelka Saint Hilaire [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Richard R Shehane [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | James Bobrik [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Willy Rafael Saint-Hilaire [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Joan R. Saint-Hilaire [Member] | Warrant [Member] | Marvin A Saint-Hilaire [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 100,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Steven A. Fishman [Member] | Warrant [Member] | Wendell and Sharon Piper [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Mohammad Sadrolashrafi [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 500,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Brian Colvin [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 1,000,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Glen J. Rineer and Barry Cohen [Member] | Warrant [Member] | Malcom Ziman, Brett Matus and Jacob Colvin [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Rudy Chacon [Member] | Warrant [Member] | Sadegh Salmassi [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 200,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Arnold F. Sock [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 500,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Arnulfo Saucedo Bardan [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 1,000,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Mike Zaman [Member] | Warrant [Member] | Montse Zaman [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 1,000,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Munti Consulting LLC [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Common stock issued for interest owed | 5,142 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Addicted 2 Marketing [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||
Warrant issued, Common stock shares | 100,000 | |||||||||||||||||||||||||||||
Warrant issuance price | $ 0.000025 | |||||||||||||||||||||||||||||
Warrant issued, Exercise price | $ 0.60 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Steven Cantor [Member] | ||||||||||||||||||||||||||||||
Common stock shares issued to settle compensation to related party | 160,000 | |||||||||||||||||||||||||||||
Subsequent Event [Member] | Diversified Unlimited [Member] | ||||||||||||||||||||||||||||||
Common stock purchased shares, per share | $ 0.50 | |||||||||||||||||||||||||||||
Common stock issued for interest owed | 6,000 | |||||||||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 3,000 |