Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - America Great HealthFinancial_Report.xls
EX-3 - AMENDMENT TO ARTICLES - America Great Healthaoa.htm
EX-31 - CROWN EX 31 - America Great Healthcertification31.htm
EX-32 - CROWN EX 32 - America Great Healthexhibit32.htm



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q





QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2014





TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from ___ to ___


Commission File No. 000-27873


CROWN MARKETING

(Exact name of registrant as specified in its charter)


Okra, Inc.

(Former name)






 

 

 

 

 

 

Wyoming

(State or other jurisdiction of incorporation or organization)

98-0178621

(I.R.S. Employer Identification No.)

 

4350 Temple City Boulevard

El Monte, CA

(Address of principal executive offices)

91731

(Zip Code)

 

(919) 913-4762

(Registrants telephone number, including area code)

 



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No x


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.




Large accelerated filer o

 

Accelerated filer o

 

 

 

Non-accelerated filer o

 

Smaller reporting company x

(Do not check if a smaller reporting company)


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x


Indicate the number of shares outstanding of each of the registrants classes of common stock, as of the latest practicable date.  The number of shares outstanding of the registrants common stock as of May 14, 2014 was 19,981,021,800.






 

CROWN MARKETING


PART I.  FINANCIAL INFORMATION

Page(s)


Item 1.

Financial Statements


Unaudited Condensed Consolidated Balance Sheet

3Unaudited Condensed Consolidated Statements of Operations

4

Unaudited Condensed Consolidated Statement of Stockholders Deficiency

5Unaudited Condensed Consolidated Statements of Cash Flows

6Notes to the Unaudited Condensed Consolidated Financial Statements

7


Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

10


Item 3. Quantitative and Qualitative Disclosures About Market Risk

12


Item 4. 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. Mine Safety Disclosures

13


Item 5. Other Information

13


Item 6. Exhibits

13


Signatures

14





2


PART I FINANCIAL INFORMATION


Item 1.  Financial Statements.



CROWN MARKETING AND SUBSIDIARY

 (A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)
















March 31, 2014








(Unaudited)


Assets

Current assets:


Cash




$

-



Total current assets




-









Total assets



$

-









Liabilities and Stockholders Deficiency

Current liabilities:






Advances from related party



$

4,661



Total current liabilities




4,661









Deferred rent obligations




196,923

Total liabilities




201,584






Commitments and contingencies













Stockholders deficiency:






Common Stock, no par value; unlimited shares authorized; 19,981,021,800 shares issued and outstanding




-


Additional paid-in capital




-


Accumulated deficit




(201,584)



Total stockholders deficiency




-




Total liabilities and stockholders deficiency



$

-




See accompanying notes to the condensed consolidated financial statements.


3




CROWN MARKETING AND SUBSIDIARY(A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)












Three Months Ended March 31, 2014


For the Period From December 2, 2013 (Inception) to March 31, 2014



(Unaudited)


(Unaudited)






Operating expenses:





Selling, general and administrative expenses

$

151,693

$

201,584

Total costs and expenses


151,693


201,584

Loss before income tax expense


(151,693)


(201,584)

Income tax expense


-


-

Net loss

$

(151,693)

$

(201,584)






Net loss per common share





Net loss per common share basic

$

(0.00)

$

(0.00)

Net loss per common share diluted

$

(0.00)

$

(0.00)






Weighted average common shares outstanding basic


19,981,021,800


19,981,021,800

Weighted average common shares outstanding diluted


19,981,021,800


19,981,021,800















See accompanying notes to the condensed consolidated financial statements.


4



CROWN MARKETING AND SUBSIDIARY

 (A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIENCY

FROM DECEMBER 2, 2013 (INCEPTION) TO MARCH 31, 2014(UNAUDITED)




  

  

  




Additional

  

 Total


Common Stock

Paid In

Accumulated

 Stockholders


Shares

Amount

Capital

Deficit

Deficiency

Balance, December 1, 2013 (Inception)

  -

$

 -

$

  -

$

  -

$

   -











Shares issued on inception

16,155,746,000










Shares issued in Reverse merger

3,825,275,800


-


-


-  


-











Net loss

-


-


-


(201,584)


(201,584)











Balance, March 31, 2014 (Unaudited)

19,981,021,800

$

-

$

-

$

(201,584)

$

(201,584)

 






































See accompanying notes to the condensed consolidated financial statements.



5






CROWN MARKETING AND SUBSIDIARY(A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFROM DECEMBER 2, 2013 (INCEPTION) TO MARCH 31, 2014










For the Period From December 2, 2013 (Inception) to

March 31, 2014





(Unaudited)

Cash flows from operating activities:





Net income



$

(201,584)

Adjustments to reconcile net income to net cash provided by operating activities:





(Increase) decrease in:





Advances from related party




(4,661)

Deferred rent obligation




(196,923)

Net cash provided by operating activities




-






Net increase (decrease)




-

Balance at beginning of period




-

Balance at end of period



$

-






Supplemental disclosures of cash flow information:





Cash paid for:





Income taxes



$

-

Interest



$

-


























See accompanying notes to the condensed consolidated financial statements.


6


 CROWN MARKETING AND SUBSIDIARY

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  FOR THE PERIOD FROM DECEMBER 2, 2013 (INCEPTION) TO MARCH 31, 2014(UNAUDITED)



NOTE 1 NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

The Company

Okra, Inc., a Wyoming corporation (the "Company") was incorporated as Crown Marketing.  Pursuant to an Agreement and Plan of Reorganization dated December 2, 2013, the Company acquired all of the common stock of Okra Energy, Inc., a California corporation that was subscribed for on December 2, 2013 and then incorporated on December 18, 2013, in exchange for 16,155,746,000 shares of Common Stock of the Company (the "Common Stock") at the closing of the Agreement on December 3, 2013.  Immediately prior to the closing, there were approximately 3,825,275,800 shares of Common Stock outstanding.  After the closing, the beneficial owner of Okra Energy, Inc.s shareholder, Jay Hooper, owned approximately 98.8% of the outstanding shares of common stock of the Company.  The transaction was accounted for as a reverse merger (recapitalization) with Okra Energy, Inc. deemed to be the accounting acquirer and the Company deemed to be the legal acquirer.  The financial statements presented herein are those of the accounting acquirer.  The Company subsequently changed its name from Crown Marketing to Okra, Inc., but later changed the name of the Company back to Crown Marketing.   


Concurrently with the merger, Jay Hooper was appointed as the sole director and President of the Company.  


The Company is engaged in the business of operating a warehouse building in Rosemead, California, which is owned by a limited liability company controlled by Jay Hooper, and in acquiring commercial properties, with a focus on properties in Los Angeles County in need of environmental remediation.  


The Company has not realized revenues from its planned principal business purpose and is considered to be in its development state in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 915, Development Stage Entities.

These consolidated financial statements include the accounts of the Company and its subsidiary, Okra Energy, Inc.  Intercompany transactions and accounts have been eliminated in consolidation.


Basis of Presentation

The unaudited financial statements of the Company for the quarter ended March 31, 2014 and for the period December 2, 2013 (Inception) to March 31, 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K for scaled disclosures for smaller reporting companies. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements.  However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the Companys financial position and results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.  


Summary of Significant Accounting Policies


Revenue Recognition


The Company recognizes sales in accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 104, Revenue Recognition. The Company recognizes revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed or determinable and (iv) collection of the resulting receivable is reasonably assured. Revenue is not recognized until title and risk of loss is transferred to the customer, which generally occurs upon delivery of goods, and objective evidence exists that customer acceptance provisions have been met.

Development Stage Company


The Company is a development stage enterprise. All losses accumulated since the inception of the Company have been considered as part of the Companys development stage activities.



7


Income tax

We are subject to income taxes in the U.S.  Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. In accordance with FASB ASC Topic 740, Income Taxes, we provide for the recognition of deferred tax assets if realization of such assets is more likely than not.


Estimates


The preparation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of net sales and expenses during the reported periods.  Actual results may differ from those estimates and such differences may be material to the financial statements.  The more significant estimates and assumptions by management include among others, the fair value of shares of common stock issued for services. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.


Fair Value Measurements


Fair value measurements are determined using authoritative guidance issued by the FASB, with the exception of the application of the guidance to non-recurring, non-financial assets and liabilities as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:


Level 1Quoted prices in active markets for identical assets or liabilities.

Level 2Inputs, other than the quoted prices in active markets, are observable either directly or indirectly.

Level 3Unobservable inputs based on the Company's assumptions.


The Company is required to use observable market data if available without undue cost and effort.


The Companys financial instruments include cash and cash equivalents, accounts payable and accrued expenses. Management has estimated that the carrying amounts approximate their fair value due to the short-term nature.


Loss Per Share


Basic loss per share has been computed using the weighted average number of common shares outstanding and issuable during the period. Diluted loss per share is computed based on the weighted average number of common shares and all common equivalent shares outstanding during the period in which they are dilutive. Common equivalent shares consist of shares issuable upon the exercise of stock options, warrants or other convertible securities such as convertible notes.  As of March 31, 2014, the weighted average common shares outstanding totaled 19,981,021,800.  There were no potentially dilutive shares as of March 31, 2014.


Stock-Based Compensation


The Company periodically issues stock instruments, including shares of its common stock, stock options, and warrants to purchase shares of its common stock to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option awards issued and vesting to employees in accordance with authorization guidance of the FASB whereas the value of stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Options to purchase shares of the Companys common stock vest and expire according to the terms established at the grant date.


The Company accounts for stock options and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either (a) the date at which a performance commitment is reached, or (b) at the date at which the necessary performance to earn the equity instruments is complete.


Recent Accounting Pronouncements


In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)."  ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations.  This new accounting guidance is effective for annual periods beginning after December 15, 2014.  The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.



8


On February 26, 2014, the FASB affirmed changes in a November 2013 Exposure Draft, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, and directed the staff to draft a final Accounting Standards Update for vote by the FASB.  This is intended to reduce the cost and complexity in financial reporting by eliminating inception-to-date information from the financial statements of development stage entities.  


Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.


NOTE 2 - GOING CONCERN


The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company is still in the development stage and has not yet been successful in establishing profitable operations.  The Company incurred a net loss of $151,693 and $201,584 for the quarter ended March 31, 2014 and for the period December 2, 2013 (inception) to March 31, 2014, and the Company's liabilities exceed its assets by $201,584 as of March 31, 2014, respectively.  The Company has not generated any revenues to date.  These factors create substantial doubt about the Company's ability to continue as a going concern.   The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company's management plans to continue as a going concern revolve around its ability to achieve profitable operations, as well as raise necessary capital to pay ongoing general and administrative expenses of the Company.  The ability of the Company to continue as a going concern is dependent on securing additional sources of capital and the success of the Company's plan.  There is no assurance that the Company will be successful in raising the additional capital or in achieving profitable operations.

 

NOTE 3 COMMITMENT AND CONTINGENCIES RELATED PARTY

Operating Lease Obligations


The Company leases a warehouse in El Monte, California, which is owned by a limited liability company controlled by the Companys President and majority shareholder, which it plans to sublease in 2014.  The lease commenced December 2, 2013, terminates May 31, 2020, and requires monthly lease payments of $30,000 beginning June 1, 2014.  The monthly lease payment increases to $40,000 on June 1, 2015, $50,000 on June 1, 2016, $60,000 on June 1, 2017, and $70,000 on June 1, 2019.  The lease includes a period of free rent from December 2, 2013 to May 31, 2014.  The Company recognizes rent expense on a straight-line basis over the entire lease period.  Accordingly, for the quarter ended March 31, 2014 and for the period December 2, 2013 (Inception) to March 31, 2014, the Company recorded $147,692 and $196,923 of rent expense, respectively, and a deferred rent liability related to the free rent.  The lease is an operating lease.    


At March 31, 2014, the Companys minimum operating lease commitments for the next five fiscal years are summarized below.






Years Ending June 30,

 

Amount

2014

$

30,000

2015

 

370,000

2016

 

490,000

2017

 

610,000

2018 and beyond

 

2,340,000

Total

$

3,840,000


NOTE 5 STOCKHOLDERS DEFICIENCY


The Company has authorized an unlimited number of shares of preferred stock, no par value, with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors. No shares of preferred stock are issued and outstanding at March 31, 2014.

Pursuant to an Agreement and Plan of Reorganization dated December 2, 2013, the Company agreed to acquire all of the common stock of Okra Energy, Inc., a California corporation, in exchange for 16,155,746,000 shares of Common Stock of the Company (the "Common Stock") at the Closing of the Agreement, which took place on December 3, 2013.  Immediately prior to the closing, there were approximately 3,825,275,800 shares of Common Stock outstanding.  After the closing, the beneficial owner of the shares of Okra Energy, Inc., Jay Hooper, owned approximately 98.8% of the outstanding shares of common stock of the Company.  The assets and liabilities of Crown Marketing were retained by prior ownership and the amounts were minor.


NOTE 6 RELATED PARTY TRANSACTIONS


The Company's costs of operations have been provided without charge by Mr. Jay Hooper, Chief Executive Officer. Services related to the reverse merger were provided by shareholders at no cost to the Company. Such costs were not material to the financial statements and accordingly, have not been reflected herein.


9


Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations.


Forward Looking Statement Notice


Certain statements made in this Quarterly Report on Form 10-Q are forward-looking statements  (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Crown Marketing,( we,  us,  our or the Company) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company.  Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this Quarterly Report will prove to be accurate.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.


Operating Lease


The Company leases a warehouse in El Monte, California, which is owned by a limited liability company controlled by the Company's President and majority shareholder. The Company plans to sublease the warehouse in 2014. The lease commenced December 2, 2013, terminates May 31, 2020, and requires monthly lease payments of $30,000 beginning June 1, 2014. The monthly lease payment increases to $40,000 on June 1, 2015, $50,000 on June 1, 2016, $60,000 on June 1, 2017, and $70,000 on June 1, 2019. The lease includes a period of free rent from December 2, 2013 to May 31, 2014. The Company recognizes rent expense on a straight-line basis over the entire lease period.  Accordingly, for the quarter ended March 31, 2014 and the period December 2, 2013 (Inception) to March 31, 2014, the Company recorded $147,692 and $196,923 of rent expense, respectively, and a deferred rent liability related to the free rent. The lease is an operating lease.


Results of Operations


The Company is engaged in the business of operating a warehouse building in Rosemead, California and in acquiring commercial properties, with a focus on properties in Los Angeles County in need of environmental remediation.  We had a loss of $151,693 and $201,584 for the quarter ended March 31, 2014 and for the period December 2, 2013 (inception) to March 31, 2014, respectively. We expect that our level of operating expenses will increase during fiscal 2014.


Liquidity


The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company is still in the development stage and has not yet been successful in establishing profitable operations. The Company incurred a net loss of $151,693 for quarter ended March 31, 2014 and $201,584 for the period December 2, 2013 (inception) to March 31, 2014, and the Company's liabilities exceed its assets by $201,584 as of March 31, 2014.  The Company has not recorded any revenues to date.  These factors create substantial doubt about the Company's ability to continue as a going concern.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Companys management plans to continue as a going concern revolve around its ability to achieve profitable operations, as well as raise necessary capital to pay ongoing general and administrative expenses of the Company.   The ability of the Company to continue as a going concern is dependent on securing additional sources of capital and the success of the Company's plan.  There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. 


Critical Accounting Policies


Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.


We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. In general, managements estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.


We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our condensed consolidated financial statements.


10

Development Stage Company


The Company is a development stage enterprise pursuant to applicable guidance of the Financial Accounting Standards Board (FASB), and is devoting substantially all of its present efforts to establishing a new business and has produced limited revenues from its operations.


7

Use of Estimates


The preparation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of net sales and expenses during the reported periods.  Actual results may differ from those estimates and such differences may be material to the financial statements.  The more significant estimates and assumptions by management include among others, the fair value of shares of common stock issued for services. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.


Revenue Recognition


The Company recognizes sales in accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 104, Revenue Recognition. The Company recognizes revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed or determinable and (iv) collection of the resulting receivable is reasonably assured. Revenue is not recognized until title and risk of loss is transferred to the customer, which generally occurs upon delivery of goods, and objective evidence exists that customer acceptance provisions have been met.


Recent Accounting Pronouncements


In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)."  ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations.  This new accounting guidance is effective for annual periods beginning after December 15, 2014.  The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.



On February 26, 2014, the FASB affirmed changes in a November 2013 Exposure Draft, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, and directed the staff to draft a final Accounting Standards Update for vote by the FASB.  This is intended to reduce the cost and complexity in financial reporting by eliminating inception-to-date information from the financial statements of development stage entities.  


Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.


Forward Looking Statements


Information included in this report includes forward looking statements, which can be identified by the use of forward-looking terminology such as may, expect, anticipate, believe, estimate, or continue, or the negative thereof or other variations thereon or comparable terminology. The statements in "Risk Factors" and other statements and disclaimers in this report constitute cautionary statements identifying important factors, including risks and uncertainties, relating to the forward-looking statements that could cause actual results to differ materially from those reflected in the forward-looking statements.


11

Since we have not yet generated any significant revenues, we are a development stage company as that term is defined in Section 915 - Development Stage Entities, of the FASB Accounting Standards Codification.   Our activities have mostly been devoted to seeking capital; seeking supply contracts and development of a business plan.  We do not believe that conventional financing, such as bank loans, is available to us due to these factors.  We have no bank line of credit available to us.  Management believes that it will be able to raise the required funds for operations from one or more future offerings, in order to affect our business plan.


Our future operating results are subject to our attaining certain milestones, including:


-     our success in subleasing the warehouse property;

-     our ability to obtain additional financing; and

-     other risks which we identify in future filings with the SEC.


Any or all of our forward looking statements in this filing and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Consequently, no forward looking statement can be guaranteed. In addition, we undertake no responsibility to update any forward-looking statement to reflect events or circumstances which occur after the date of this report.


Contractual Obligations and Off-Balance Sheet Arrangements


We do not have any contractual obligations or off balance sheet arrangements.


Item 3.  Quantitative and Qualitative Disclosures About Market Risk.


As a smaller reporting company as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.


Item 4.  Controls and Procedures.


Evaluation of Disclosure Controls and Procedures


The Companys principal executive officer and its principal financial officer, performed an evaluation of the Companys disclosure controls and procedures (as defined in Exchange Act Rules 13a-14(c) and 15d -14 (c) as of December 31, 2013. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective to enable us to accurately record, process, summarize and report certain information required to be included in the Companys periodic SEC filings within the required time periods, and to accumulate and communicate to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.


Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.


Changes in Internal Controls


There have been no changes in our internal controls over financial reporting during the period ended March 31, 2014 that have materially affected or are reasonably likely to materially affect our internal controls.


12


PART II OTHER INFORMATION


Item 1.  Legal Proceedings.


We are not a party to or otherwise involved in any legal proceedings.


In the ordinary course of business, we are from time to time involved in various pending or threatened legal actions.  The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations.  However, in the opinion of our management, other than as set forth herein, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.


Item 1A.  Risk Factors.


As a smaller reporting company as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.


Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.


Pursuant to an Agreement and Plan of Reorganization dated December 2, 2013, the Company agreed to acquire all of the common stock of Okra Energy, Inc. in exchange for 16,155,746,000 shares of Common Stock of the Company (the "Common Stock") at the Closing of the Agreement, which took place on December 3, 2013. Immediately prior to Closing, and giving effect to the issuance of 3,635,208,200 shares in conversion of debt, there were approximately 3,825,275,800 shares of Common Stock outstanding.  After the closing, the Company had outstanding 19,981,021,800 shares of Common Stock.  After the reverse merger was completed, the Okra Energy, Inc. shareholder owned approximately 98% of the outstanding shares of common stock of the Company.  The transaction was accounted for as a reverse merger (recapitalization) with Okra Energy, Inc. deemed to be the accounting acquirer and the Company deemed to be the legal acquirer.


Item 3.  Defaults Upon Senior Securities.


There have been no events which are required to be reported under this Item.


Item 4.  Mine Safety Disclosures.


Not applicable.


Item 5.  Other Information.


None.


Item 6.  Exhibits.


3.4 Articles of Amendment to Articles of Incorporation. Filed herewith.

31. Certification of CEO and CFO. Filed herewith.

32. Certification pursuant to 18 U.S.C. Section 1350 of CEO and CFO. Filed herewith.








13


SIGNATURES


Pursuant to 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 MARKETING

  

  

  

Dated:  May 13, 2014

By:

/s/ Jay Hooper

  

  

Jay Hooper

  

  

President and Chief Financial Officer (chief financial and accounting officer and duly authorized officer)

14












2