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| Nevada                                                         |   | 33-0677140                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| Large accelerated filer | o | Accelerated filed         | o |
|-------------------------|---|---------------------------|---|
| Non-accelerated filer   | o | Smaller reporting company | x |

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|                          | TABLE OF CONTENTS                                                                                                      |   |   |   |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                          |                                                                                                                   |   |   |   |
|                          |                                                                                                                   |   | Page   |   |
| PART I: FINANCIAL INFORMATION |                                                                                                                   |   |   |
|                          |                                                                                                                   |   |   |   |
| Item 1.                       | Financial Statements (Unaudited)                                                                                       |   |   |   |
|                          | Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 (Unaudited)                                      |   |   | 3      |   |
|                          | Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2012 and 2011 (Unaudited)            |   |   | 4      |   |
|                          | Consolidated Statements of Cash Flows for  the Three and Six Months Ended June 30, 2012 and 2011 (Unaudited) |   |   | 5      |   |
|                          | Notes to Consolidated Financial Statements (Unaudited)                                                                 |   |   | 6      |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis and Plan of Operation                                                       |   |   | 10     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                             |   |   | 12     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 4T.                      | Controls and Procedures                                                                                                |   |   | 12     |   |
|                          |                                                                                                                   |   |   |   |   |
| PART II: OTHER INFORMATION    |                                                                                                                   |   |   |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 1.                       | Legal Proceedings                                                                                                      |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 1A.                      | Risk Factors                                                                                                           |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                            |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 3.                       | Defaults upon Senior Securities                                                                                        |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 4.                       | Remove and Reserve                                                                                                     |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 5.                       | Other Information                                                                                                      |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
| Item 6.                       | Exhibits                                                                                                               |   |   | 13     |   |
|                          |                                                                                                                   |   |   |   |   |
|                          | Signatures                                                                                                             |   |   | 14     |   |

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|                                                                                                                                                                                                        |   | June 30, 2012 |       |   | December 31, 2011 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                                      |
| Current Assets:                                                                                                                                                                                             |   |          |       |   |              |   |
|   Cash and cash equivalents                                                                                                                                                                       |   | $             | 11,110     |   |              | $      | 84,325 |   |
|   Marketable securities                                                                                                                                                                           |   |          | 105,000    |   |              |   | 82,400 |   |
|   Marketable securities held in related party                                                                                                                                                     |   |          | 50,000     |   |              |   | 480,000 |   |
|   Accounts receivable                                                                                                                                                                             |   |          | 12,370     |   |              |   | 12,395 |   |
|   Prepaid expenses                                                                                                                                                                                |   |          | 2,400      |   |              |   | 2,400 |   |
|     Total current assets                                                                                                                                                                |   |          | 180,880    |   |              |   | 661,520 |   |
|                                                                                                                                                                                                        |   |          |       |   |              |   |   |   |
| Property and equipment, net of accumulated depreciation $33,492 and $29,732 respectively                                                                                                                    |   |          | 40,499     |   |              |   | 44,208 |   |
|       Total Assets                                                                                                                                                            |   | $             | 221,379    |   |              | $      | 705,728 |   |
|                                                                                                                                                                                                        |   |          |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                  |
| Current Liabilities:                                                                                                                                                                                        |   |          |       |   |              |   |   |   |
|   Accounts payable and accrued expenses                                                                                                                                                           |   | $             | 115,633    |   |              | $      | 182,697 |   |
|   Related party deferred revenue                                                                                                                                                                  |   |          | --         |   |              |   | 193,219 |   |
|   Notes payable-related parties                                                                                                                                                                   |   |          | 103,409    |   |              |   | 95,209 |   |
|   Total current liabilities                                                                                                                                                                       |   |          | 219,042    |   |              |   | 471,125 |   |
|                                                                                                                                                                                                        |   |          |       |   |              |   |   |   |
| Stockholders’ Equity:                                                                                                                                                                                 |   |          |       |   |              |   |   |   |
| Preferred stock; $0.001 par value, 10,000,000 shares  authorized, 9,000,000 undesignated authorized                                                                                               |   |          |       |   |              |   |   |   |
|   Series A convertible preferred stock; $0.001 par value,    1,000,000 shares authorized, none and 600,000 shares    issued and outstanding, respectively |   |          | --         |   |              |   | 600 |   |
| Common stock; $0.001 par value, 4,900,000,0000 shares  authorized, 878,192,502 and 798,360,078 shares issued  and outstanding, respectively                                             |   |          | 878,193    |   |              |   | 798,361 |   |
| Additional paid-in capital                                                                                                                                                                                  |   |          | 7,900,691  |   |              |   | 7,673,372 |   |
|  Accumulated deficit                                                                                                                                                                                   |   |          | (8,776,547 | )      |              |   | (8,237,730 | ) |
|   Total stockholders’ equity                                                                                                                                                                |   |          | 2,337      |   |              |   | 234,603 |   |
|       Total Liabilities and Stockholders’ Equity                                                                                                                        |   | $             | 221,379    |   |              | $      | 705,728 |   |

----

|                                                                                                     |   | Three Months Ended |        |    | Six Months Ended |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|---------|------------------|--------|
|                                                                                                     |   | June 30,           |        |    | June 30,         |   |
|                                                                                                     |   | 2012               |        |    | 2011             |   |   | 2012 |   |   | 2011 |   |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |
| Revenue                                                                                                  |   | $                  | 20,281      |    |             | $      | 1,043,647 |   |   | $ | 215,714 |   |   | $ | 1,388,879 |   |
| Direct material costs                                                                                    |   |               | 1,656       |    |             |   | 2,500 |   |   |   | 4,303 |   |   |   | 2,500 |   |
|   Gross profit                                                                                 |   |               | 18,625      |    |             |   | 1,041,147 |   |   |   | 211,411 |   |   |   | 1,386,379 |   |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                                                                                      |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
|   General and administrative                                                                   |   |               | 51,887      |    |             |   | 426,771 |   |   |   | 320,219 |   |   |   | 1.209,683 |   |
|   Depreciation                                                                                 |   |               | 1,880       |    |             |   | 4,789 |   |   |   | 3,760 |   |   |   | 10,248 |   |
|     Income(loss) from operations                                                     |   |               | (35,142     | )       |             |   | 609,587 |   |   |   | (112,568 | ) |   |   | 166,448 |   |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses):                                                                                 |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
|   Other income                                                                                 |   |               | (1,025      | )       |             |   | -- |   |   |   | 1,275 |   |   |   | -- |   |
|   Realized loss on marketable securities                                                       |   |               | (1,155      | )       |             |   | 501 |   |   |   | (1,155 | ) |   |   | (16,552 | ) |
|   Unrealized gain (loss) on marketable securities                                              |   |               | 32,400      |    |             |   | 924,938 |   |   |   | 28,000 |   |   |   | (112,866 | ) |
|   Unrealized gain (loss) on marketable    securities – related party |   |               | (430,000    | )       |             |   | -- |   |   |   | (430,000 | ) |   |   | -- |   |
|   Interest expense                                                                             |   |               | (2,856      | )       |             |   | (2,930 | ) |   |   | (5,972 | ) |   |   | (5,860 | ) |
|   Loss on extinguishment of debt                                                               |   |               | (17,700     | )       |             |   |   |   |   |   | (17,700 | ) |   |   |   |   |
|   Other expense                                                                                |   |               | (129        | )       |             |   | (1,395 | ) |   |   | (697 | ) |   |   | (1,395 | ) |
|     Total other income (expenses)                                                    |   |               | (420,465    | )       |             |   | 921,114 |   |   |   | (426,249 | ) |   |   | (136,673 | ) |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                        |   |               | (455,607    | )       |             |   | 1,530,701 |   |   |   | (538,817 | ) |   |   | 29,775 |   |
| Deemed dividend on series A convertible                                                                  |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
|   preferred stock                                                                              |   |               | --          |    |             |   | -- |   |   |   | -- |   |   |   | (600,000 | ) |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common                                                                          |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
|   stockholders                                                                                 |   | $                  | (455,607    | )       |             | $      | 1,530,701 |   |   | $ | (538,817 | ) |   |   | (570,225 | ) |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per common share attributable to common stockholders, basic                                     |   | $                  | (0.00       | )       |             | $      | 0.00 |   |   | $ | (0.00 | ) |   | $ | (0.00 | ) |
| Net loss per common share attributable to common stockholders, diluted                                   |   | $                  | (0.00       | )  |             | $      | 0.00 |   |   | $ | (0.00 | ) |   | $ | (0.00 | ) |
|                                                                                                     |   |               |        |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding basic                                                         |   |               | 861,872,576 |    |             |   | 784,504,251 |   |   |   | 802,992,815 |   |   |   | 776,756,538 |   |
| Weighted average common shares outstanding diluted                                                       |   |               | 861,872,576 |    |             |   | 844,504,251 |   |   |   | 802,992,815 |   |   |   | 776,756,538 |   |

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|                                                                                                            |   | Six Months Ended |     |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------|----------|
|                                                                                                            |   | June 30,         |     |
|                                                                                                            |   | 2012             |     |   | 2011 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                            |   |             |     |   |   |   |
|   Net income (loss)                                                                                   |   | $                | (538,817 | ) |   | $ | 29,775 |   |
|   Adjustments to reconcile net loss to net cash used in operating activities:                         |   |             |     |   |   |   |   |   |
|       Depreciation expense                                                        |   |             | 3,760    |   |   |   | 10,248 |   |
|       Common stock issued for services                                            |   |             | 219,851  |   |   |   | 646,821 |   |
|       Unrealized (gain) loss on marketable securities                             |   |             | (28,000  | ) |   |   | 112,866 |   |
|       Unrealized loss on related party marketable securities                      |   |             | 430,000  |   |   |   | -- |   |
|       Loss on extinguishment of debt                                              |   |             | 17,700   |   |   |   | -- |   |
|       Realized loss on marketable securities                                      |   |             | 1,155    |   |   |   | 16,552 |   |
|       Marketable securities received for revenue                                  |   |             | --       |   |   |   | (1,248,709 | ) |
|       Changes in operating assets and liabilities:                                |   |             |     |   |   |   |   |   |
|         Accounts receivable                                             |   |             | 25       |   |   |   | (6,800 | ) |
|         Prepaid expenses                                                |   |             | --       |   |   |   | (4,800 | ) |
|         Accounts payable and accrued expenses                           |   |             | (67,064  | ) |   |   | (23,212 | ) |
|         Deferred revenue                                                |   |             | (193,219 | ) |   |   | (106,739 | ) |
|         Accrued salaries                                                |   |             | --       |   |   |   | -- |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                                           |   |             | (154,609 | ) |   |   | (573,998 | ) |
|                                                                                                            |   |             |     |   |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES                                                                         |   |             |     |   |   |   |   |   |
|   Cash paid for purchase of fixed assets                                                              |   |             | (51      | ) |   |   | (5,898 | ) |
|   Proceeds from the sale of marketable securities                                                     |   |             | 4,245    |   |   |   | 388,773 |   |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                                             |   |             | 4,194    |   |   |   | 382,875 |   |
|                                                                                                            |   |             |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                            |   |             |     |   |   |   |   |   |
|   Proceeds from the sale of common stock                                                              |   |             | 10,000   |   |   |   | -- |   |
|   Proceeds from sale of series A convertible preferred stock                                          |   |             | --       |   |   |   | 600,000 |   |
|   Borrowings on notes payable                                                                         |   |             | 59,000   |   |   |   |   |   |
|   Borrowings on related party notes payable                                                           |   |             | 8,200    |   |   |   | -- |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                                                       |   |             | 77,200   |   |   |   | 600,000 |   |
|                                                                                                            |   |             |     |   |   |   |   |   |
| Net increase (decrease) in cash                                                                                 |   |             | (73,215  | ) |   |   | 408,877 |   |
| Cash, beginning of period                                                                                       |   |             | 84,325   |   |   |   | 149,727 |   |
| Cash, end of period                                                                                             |   | $                | 11,110   |   |   | $ | 558,604 |   |
|                                                                                                            |   |             |     |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOWS INFORMATION                                                                             |   |             |     |   |   |   |   |   |
|   Interest paid                                                                                       |   | $                | 13       |   |   | $ | 27 |   |
|   Income taxes paid                                                                                   |   |             | --       |   |   |   | -- |   |
|                                                                                                            |   |             |     |   |   |   |   |   |
| Noncash Investing and Financing Activities:                                                                     |   |             |     |   |   |   |   |   |
|   Marketable securities received for deferred revenue                                                 |   | $                | --       |   |   | $ | 234,531 |   |
|   Deemed dividend beneficial conversion feature on convertible preferred    stock |   |             | --       |   |   |   | 600,000 |   |
|   Common stock issued for debt                                                                        |   |             | 59,000   |   |   |   | -- |   |
|   Common stock issued for the conversion of preferred stock                                           |   |             | 60,000   |   |   |   | -- |   |

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|                   |   | Quoted Prices in     |    |   | Significant |   |   |         |   |   |          |   |
|------------------------|--------|----------------------|---------|--------|-------------|--------|--------|--------------|--------|--------|---------------|--------|
|                   |   | Active Markets for   |    |   | Other       |   |   | Significant  |   |   |          |   |
|                   |   | Identical Assets and |    |   | Observable  |   |   | Unobservable |   |   | Balance as of |   |
|                   |   | Liabilities          |    |   | Inputs      |   |   | Inputs       |   |   | June 30,      |   |
| Description            |   | (Level 1)            |    |   | (Level 2)   |   |   | (Level 3)    |   |   | 2012          |   |
| Assets:                |   |                 |    |   |        |   |   |         |   |   |          |   |   |   |   |   |
| Marketable             |   |                 |    |   |        |   |   |         |   |   |          |   |   |   |   |   |
|   Securities |   | $                    | 155,000 |   |        | $      | -      |         |   | $      | -             |   |   | $ | 155,000 |   |

|                   |   | Quoted Prices in     |    |   | Significant |   |   |         |   |   |          |   |
|------------------------|--------|----------------------|---------|--------|-------------|--------|--------|--------------|--------|--------|---------------|--------|
|                   |   | Active Markets for   |    |   | Other       |   |   | Significant  |   |   |          |   |
|                   |   | Identical Assets and |    |   | Observable  |   |   | Unobservable |   |   | Balance as of |   |
|                   |   | Liabilities          |    |   | Inputs      |   |   | Inputs       |   |   | December 31,  |   |
| Description            |   | (Level 1)            |    |   | (Level 2)   |   |   | (Level 3)    |   |   | 2011          |   |
| Assets:                |   |                 |    |   |        |   |   |         |   |   |          |   |   |   |   |   |
| Marketable             |   |                 |    |   |        |   |   |         |   |   |          |   |   |   |   |   |
|   securities |   | $                    | 562,400 |   |        | $      | -      |         |   | $      | -             |   |   | $ | 562,400 |   |

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| ·   | Two 60-day unsecured notes bearing interest at 6% per annum for $10,000 and $14,000 |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | One 60-day note for $35,000 bearing no interest secured by 3,500,000 shares of the Company stock to be issued if the note is not paid within the 60 day time period. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 13,645,712 shares of common stock for compensation valued at $219,851, |
|--------------------|------------------------------------------------------------------------|

| ·   | 1,000,000 shares of common stock for cash of $10,000, |
|--------------------|-------------------------------------------------------|

| ·   | 5,900,000 shares of common stock for notes payable valued at $76,700 (see Note 6), |
|--------------------|------------------------------------------------------------------------------------|

| ·   | and 60,000,000 shares of common stock for the conversion of 600,000 preferred shares. |
|--------------------|---------------------------------------------------------------------------------------|

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| (a)   | Evaluation of Disclosure Controls and Procedures |
|-----------------|--------------------------------------------------|

----

| ·   | 13,645,712 shares of common stock for compensation valued at $219,851, |
|--------------------|------------------------------------------------------------------------|

| ·   | 1,000,000 shares of common stock for cash of $10,000, |
|--------------------|-------------------------------------------------------|

| ·   | 5,900,000 shares of common stock for notes payable valued at $76,700, |
|--------------------|-----------------------------------------------------------------------|

| ·   | and 60,000,000 shares of common stock for the conversion of 600,000 preferred shares. |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | During the period ended June 30, 2012, the Company also cancelled 713,288 shares of common stock originally issued to an independent contractor upon his resignation from the company. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EXHIBIT 31.1 |   | Certification of Principal Executive Officer  |
|--------------|--------|-----------------------------------------------|
|         |   |                                          |
| EXHIBIT 31.2 |   | Certification of Principal Financial Officer  |
|         |   |                                          |
| EXHIBIT 32.1 |   | Certification of Compliance to Sarbanes-Oxley |
|         |   |                                          |
| EXHIBIT 32.2 |   | Certification of Compliance to Sarbanes-Oxley |

| 101.INS ** |   | XBRL Instance Document                                 |
|-----------------|--------|--------------------------------------------------------|
|            |   |                                                   |
| 101.SCH ** |   | XBRL Taxonomy Extension Schema Document                |
|            |   |                                                   |
| 101.CAL ** |   | XBRL Taxonomy Extension Calculation Linkbase Document  |
|            |   |                                                   |
| 101.DEF ** |   | XBRL Taxonomy Extension Definition Linkbase Document   |
|            |   |                                                   |
| 101.LAB ** |   | XBRL Taxonomy Extension Label Linkbase Document        |
|            |   |                                                   |
| 101.PRE ** |   | XBRL Taxonomy Extension Presentation Linkbase Document |

----

|                 | CROWN EQUITY HOLDINGS INC. |               |
|----------------------|----------------------------|--------------------|
|                 |                       |               |   |
| Date August 14, 2012 | By:                        | /s/ Kenneth Bosket |   |
|                 |                       | Kenneth Bosket,    |   |
|                 |                       | CEO                |   |
|                 |                       |               |   |
| Date August 14, 2012 | By:                        | /s/ Lowell Holden  |   |
|                 |                       | Lowell Holden,     |   |
|                 |                       | CFO                |   |

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