SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-QSB
(Mark
One)
x
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For
the
quarterly period ended March 31, 2007
OR
o
TRANSITION
REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF
1934
From
the
transition period from ___________ to ____________.
Commission
File Number 000-29935
CROWN
EQUITY HOLDINGS INC.
(Exact
name of small business issuer as specified in its charter)
Nevada
33-0677140
(State
or
other jurisdiction of incorporation or organization)(IRS Employer Identification
No.)
27430
Riverside Lane, Valencia, CA 91354
(Address
of principal executive offices)
(661)
287-377
(Issuer's
telephone number)
N/A
(Former
name, former address and former fiscal year, if changed since last
report)
Indicate
by check mark whether the registrant (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 registrant was required to file such reports),
and
(2) has been subject to such filing requirements for the past 90 days:
Yes
x No
o
As
of May
9, 2007, there were 5,324,465 shares of Common Stock of the issuer
outstanding.
Crown
Equity Holdings Inc.
BALANCE
SHEETS
(unaudited)
|
|
March
31, 2007
|
|
December
31, 2006
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
66
|
|
$
|
27
|
|
Total
assets
|
|
$
|
66
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
15,375
|
|
$
|
25,228
|
|
Accounts
payable - related party
|
|
|
40,351
|
|
|
24,994
|
|
Advances
from related party
|
|
|
104,445
|
|
|
101,607
|
|
Note
payable
|
|
|
12,700
|
|
|
-
|
|
Total
liabilities
|
|
|
172,871
|
|
|
151,829
|
|
|
|
|
|
|
|
|
|
Stockholders’
deficit:
|
|
|
|
|
|
|
|
Common
stock, $.001 par value, 500,000,000 shares authorized,
5,324,465 shares issued and outstanding
|
|
|
5,324
|
|
|
5,324
|
|
Additional
paid in capital
|
|
|
2,881,146
|
|
|
2,881,146
|
|
Accumulated
deficit
|
|
|
(3,059,275
|
)
|
|
(3,038,272
|
)
|
Total
stockholders’ deficit
|
|
|
(172,805
|
)
|
|
(151,802
|
)
|
Total
liabilities and stockholders’ deficit
|
|
$
|
66
|
|
|
27
|
|
See
accompanying notes to the financial statements
Crown
Equity Holdings Inc.
STATEMENTS
OF OPERATIONS
(unaudited)
|
|
Three
Months Ended March 31,
|
|
|
|
2007
|
|
2006
|
|
Operating
expenses:
|
|
|
|
|
|
General
and administrative
|
|
$
|
21,003
|
|
$
|
8,920
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(21,003
|
)
|
$
|
(8,920
|
)
|
|
|
|
|
|
|
|
|
Net
loss per share:
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
|
5,324,465
|
|
|
4,824,465
|
|
See
accompanying notes to the financial statements
Crown
Equity Holdings Inc.
STATEMENTS
OF CASH FLOWS
(unaudited)
|
|
Three
Months Ended March 31,
|
|
|
|
2007
|
|
2006
|
|
Cash
flows from operating activities
|
|
|
|
|
|
Net
loss
|
|
$
|
(21,003
|
)
|
$
|
(8,920
|
)
|
Adjustments
to reconcile net loss to cash provided by
continuing operations:
|
|
|
|
|
|
|
|
Net
change in:
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
|
|
(9,853
|
)
|
|
8,920
|
|
Accounts
payable - related party
|
|
|
15,357
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Total
cash flows provided by operating activities
|
|
|
(15,499
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
|
|
|
Advances
from related party
|
|
|
2,838
|
|
|
-
|
|
Borrowings
on debt
|
|
|
12,700
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Total
cash flows provided by financing activities
|
|
|
15,538
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Net
increase in cash
|
|
|
39
|
|
|
-
|
|
Cash,
beginning of period
|
|
|
27
|
|
|
-
|
|
Cash,
end of period
|
|
$
|
66
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Supplemental
cash flow information:
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
-
|
|
$
|
-
|
|
Income
taxes paid
|
|
|
-
|
|
|
-
|
|
See
accompanying notes to the financial statements
Crown
Equity Holdings Inc.
NOTES
TO FINANCIAL STATEMENTS
(unaudited)
NOTE
1 -
BASIS OF PRESENTATION
The
accompanying unaudited interim 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 (“SEC”), and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company’s December 31, 2006 Annual Report filed with the SEC on Form 10-KSB. 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, 2006 as reported on Form 10-KSB, have been
omitted.
NOTE
2 -
GOING CONCERN
As
shown
in the accompanying financial statements, Crown Equity incurred a net loss
of
$21,003 during the three months ended March 31, 2007, has an accumulated deficit
of $3,059,275 and a working capital deficit of $172,805 as of March 31, 2007.
These conditions raise substantial doubt as to Crown Equity's ability to
continue as a going concern. Management is trying to raise additional capital
through sales of common stock. The financial statements do not include any
adjustments that might be necessary if Crown Equity is unable to continue as
a
going concern.
Item
2. MANAGEMENT’S DISCUSSION AND ANALYSIS
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. The Company’s actual results could differ
materially from those set forth on the forward looking statements as a result
of
the risks set forth in the Company’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. (the "Company") was incorporated on August 31, 1995 as
"Visioneering Corporation" under the laws of the State of Nevada, to engage
in
any lawful corporate undertaking, including, but not limited to, selected
mergers and acquisitions. We are currently seeking a suitable merger.
As
of
March 31, 2007, the Company had no employees.
RESULTS
OF OPERATIONS
For
the
three months ended March 31, 2007 and 2006, we had no revenue and a net loss
of
$21,003 and $8,920, respectively. General and administrative expense increased
$12,083 to $21,003 for the three months ended March 31, 2007 compared to the
same period in 2006. This increase is primarily attributable to an increase
in
legal and accounting fees.
We
anticipate that until a business combination is completed with an acquisition
candidate, it will not generate revenues and may operate at a loss after
completing a business combination, depending upon the performance of the
acquired business.
The
Company will attempt to carry out its business plan as discussed above; however,
it cannot predict to what extent its lack of liquidity and capital resources
will hinder its business plan prior to the consummation of a business
combination.
LIQUIDITY
AND CAPITAL RESOURCES
At
March
31, 2007, the Company had minimal assets and liabilities of approximately
$172,871. Shareholders' deficit for the three months ended March 31, 2007 was
approximately $172,805. Further, there exist no agreements or understandings
with regard to loan agreements by or with the Officers, Directors, principals,
affiliates or shareholders of the Company.
During
the quarter ended March 31, 2007, the Company borrowed $12,700 from an unrelated
third party. The loan is due April 1, 2008 and accrues interest at 12% per
annum.
Our
existing capital is not sufficient to meet the Company's cash needs, including
the costs of compliance with the continuing reporting requirements of the
Securities Exchange Act of 1934, as amended. As shown in the accompanying
financial statements, Crown Equity incurred a net loss of $21,003 for the three
months ended March 31, 2007, has an accumulated deficit of $3,059,275 and a
working capital deficit of $172,805 as of March 31, 2007. These conditions
raise
substantial doubt as to Crown Equity's ability to continue as a going concern.
Management is trying to raise additional capital through sales of common stock.
The financial statements do not include any adjustments that might be necessary
if Crown Equity is unable to continue as a going concern.
EMPLOYEES
As
of
March 31, 2007, the Company had no employees.
ITEM
3.
CONTROLS AND PROCEDURES
As
required by Rule 13a-15 under the Securities Exchange Act of 1934 (the "Exchange
Act"), we carried out an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures as of December 31, 2006.
This evaluation was carried out under the supervision and with the participation
of our Chief Executive Officer and Chief Financial Officer. Based on their
evaluation of our disclosure controls and procedures we concluded that 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.
Specifically, during the annual audit of our December 31, 2006 financial
statements, our independent auditors identified deficiencies in our internal
controls and disclosure controls related to expense recognition and issuances
of
our common stock. We are in the process of improving our internal controls
in an
effort to remediate these deficiencies through improving supervision and
training of our accounting staff. We are continuing our efforts to improve
and
strengthen our control processes and procedures to fully remedy these
deficiencies. Our management and directors will continue to work with our
auditors and other outside advisors to ensure that our controls and procedures
are adequate and effective. There have been no significant changes in our
internal controls or in other factors that could significantly affect internal
controls subsequent to the date we carried out our evaluation.
There
were no significant changes in our internal controls over financial reporting
that occurred during the last fiscal quarter that has materially affected,
or is
reasonably likely to materially affect, internal controls over financial
reporting.
PART
II
Items
No.
1, 2, 3, 4 and 5 - Not Applicable.
Item
No.
6 - Exhibits and Reports on Form 8-K
(a)
No
reports on Form 8-K were filed during the quarter ended March 31, 2007.
(b)
Exhibits
None
SIGNATURES
In
accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
|
|
CROWN
EQUITY
HOLDINGS INC. |
|
|
|
|
By: |
/s/ Claudia
Zaman |
|
Claudia
Zaman, CEO, CFO |
|
|
Date:
May
14, 2007