13-Aug-2008
Quarterly Report
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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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.
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OVERVIEW
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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.
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In 2007, the Company, though its wholly-owned subsidiary, Crown Trading Systems, Inc. (”CTS”), a Nevada corporation, began to develop, sell, and produce computer systems which are capable are running multiple monitors from one computer. At present, CTS is able to run 16 monitors off one CPU. In late, 2007, CTS began to attend trade shows and started selling these systems. For the six months ended June 30, 2008, CTS had gross revenues of approximately $11,121 from the sales of systems and the reseller distribution of computer components.
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Additionally, CTS has entered into reseller and distribution agreements with over 30 wholesale and retail computer components to sell their products on CTS’s website, www.crowntradingsystems.com.
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The Company is offering its services to companies or individuals looking to go public in the United States. It has launched a website, www.crownequityholdings.com, which offers its services in a wide range of fields.
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The Company’s office is located at 9680 West Tropicana, Suite 117, Las Vegas, Nevada 89147.
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As of June 30, 2008, the Company had no employees but was utilizing the services of independent contractors and consultants.
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RESULTS OF OPERATIONS
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A. Revenue
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For the six months ended June 30, 2008 and 2007, we had revenues of $11,121 and $0, respectively, for a net loss of $169,477 and $42,401, respectively. During the three months period ending June 30, 2008 and 2007 the Company had revenue of $10,549 and zero with a net loss of $ 118,888 and $ 21,398, respectively.
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B. General and Administrative Expense
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General and administrative expense for the six months ended June 30, 2008 was $ 165,972 compared to $ 42,401 for the same period in 2007. During the three months period ending June 30, 2008 the Company incurred general and administrative expenses of $ 114,810 and $21,398, respectively. The increases are primarily attributable to the Company’s commencing operations as well as increases in legal and accounting fees.
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C. Depreciation.
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Depreciation for the three months and six months periods ended June 30, 2008 and 2007 was $6,345 and $ 12,690 in 2008 and zero in both periods in 2007. The depreciation is attributable to the fixtures and equipment owned by the Company.
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D. Interest Expense.
The Company incurred interest charges of $950 during the three and six months ended June 30, 2008 and zero for the same periods in 2007, respectively.
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The Company reported a net loss of $118,888 for the three months and $ 169,477 for the six months ended June 30, 2008 as compared to a net loss of $21,398 for the three months and $42,401 for the six months ended June 30, 2007. The higher loss was attributed to the higher general and administrative expense incurred in 2008 over 2007 as part of the start up of its present operations.
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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.
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Operating Activities.
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The net cash used in operating activities was $86,304 or the six months ended June 30, 2008 compared to net cash used of $22,030 for the six months ended June 30, 2007. The increase is due primarily to the larger loss in 2008 verses 2007.
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Investing Activities.
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Net cash used in investing activities was zero for the three months period ending June 30, 2008 and zero for the same period ending June 30, 2007.
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Financing Activities.
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Net cash provided by financing activities was $38,479 for the six month period ending June 30, 2008 and $22,021 for the same period ending June 30, 2007. Financing activities for the period ending June 30, 2008 were higher due to a combination of stock issued for debt and advances from related parties.
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LIQUIDITY AND CAPITAL RESOURCES
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At June 30, 2008, the Company had current assets of $15,131 and current liabilities of approximately $212,205, resulting in a working capital deficit of $197,074. Shareholders’ deficit as of June 30, 2008 was approximately $141,011. 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.