Crown Equity Holdings Inc.

CRWE: 10-Q · periodic report

Crown Equity Holdings' Form 10-Q for the quarter ended June 30, 2026 raises substantial doubt about the company's ability to continue as a going concern, citing an accumulated deficit of $18,841,043, a working capital deficit of $383,553, and negative cash flows from operations. The business is essentially non-functional as a revenue generator: six-month revenue was just $154, down from $298 a year earlier, while the net loss widened to $69,491 from $27,582, driven by higher professional fees and interest expense. Cash on hand was only $1,515 against total liabilities of $395,658. Survival depends on insiders: related-party notes payable to CEO Mike Zaman and his irrevocable trust totaled $229,943 at interest rates of 12% to 28.24%, the company borrowed an additional $60,231 from related parties during the period, and the trust lent another $2,500 on August 7, 2026. Management also disclosed that disclosure controls and procedures were not effective due to material weaknesses, including lack of segregation of duties, no audit committee, and no accounting expertise among the CEO or CFO, with all accounting performed by an external consultant.

SEC 10-Q•2mo ago