Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information: | |
Entity Registrant Name | Crown Marketing |
Document Type | 10-Q |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Entity Central Index Key | 1098009 |
Current Fiscal Year End Date | -24 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q2 |
Entity Common Stock, Shares Outstanding | 19,981,021,800 |
Entity Public Float | $3,825,875,800 |
CROWN_MARKETING_AND_SUBSIDIARY
CROWN MARKETING AND SUBSIDIARY - CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $39,572 | |
Total current assets | 39,572 | |
Total Assets | 39,572 | |
Accounts payable related parties | 71,262 | 8,661 |
Accrued rent due to related parties | 210,000 | 30,000 |
Total current liabilities | 281,262 | 38,661 |
Retained earnings | -671,690 | -353,276 |
LIABILITIES AND EQUITY | $39,572 | |
Preferred Stock, Shares Authorized | 999,999,999,999 | 999,999,999,999 |
Common Stock, Shares Authorized | 999,999,999,999 | 999,999,999,999 |
Common Stock, Shares Issued | 19,981,021,800 | 19,981,021,800 |
Common Stock, Shares Outstanding | 19,981,021,800 | 19,981,021,800 |
CROWN_MARKETING_AND_SUBSIDIARY1
CROWN MARKETING AND SUBSIDIARY - STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Income | ||||
Rent expense-related party | $147,692 | $49,230 | $295,385 | $49,230 |
Basic and diluted-actual | 19,981,031,800 | 19,981,031,800 | 19,981,031,800 | 19,981,031,800 |
Basic and diluted-actual per share | $0 | $0 | $0 | $0 |
CROWN_MARKETING_AND_SUBSIDIARY2
CROWN MARKETING AND SUBSIDIARY - STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows | ||
Net loss | ($318,414) | ($49,891) |
(Increase)decrease in advances from related parties | 180,000 | |
Increase(decrease) in accounts payable and accrued expenses | 62,601 | 661 |
Increase(decrease) in deferred rent obligation to related party | 111,385 | 49,230 |
Net cash provided by/(used in) operating activities | 39,572 | |
Net increase in cash and cash equivalents | 39,572 | |
Cash and cash equivalents- end of period | $39,572 |
Note_1_Nature_of_Business_and_
Note 1 - Nature of Business and Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 1 - Nature of Business and Significant Accounting Policies | NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES |
The Company | |
Crown Marketing is a Wyoming corporation (the "Company"). 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. 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 single member limited liability company owned by Jay Hooper, and in acquiring commercial properties, with a focus on properties in Los Angeles County in need of environmental remediation. | |
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
Basis of Presentation | 6 Months Ended |
Dec. 31, 2014 | |
Notes | |
Basis of Presentation | Basis of Presentation |
The unaudited financial statements of the Company for the period ended December 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 Company’s 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_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2014 | |
Notes | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Rental Revenue | |
At lease inception, the Company reviews all necessary criteria under ASC 840-10-25 to determine proper lease classification. The Company will recognize rental income from tenants on the straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. | |
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 1—Quoted prices in active markets for identical assets or liabilities. | |
Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly. | |
Level 3—Unobservable inputs based on the Company's assumptions. | |
The Company is required to use observable market data if available without undue cost and effort. | |
The Company’s financial instruments include cash, 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 December 31, 2014, the weighted average common shares outstanding totaled 19,981,021,800. There were no potentially dilutive shares as of December 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 Company’s 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 June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 (ASU 2014-10), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. ASU 2014-10 eliminates the requirement to present inception-to-date information about income statement line items, cash flows, and equity transactions, and clarifies how entities should disclosure the risks and uncertainties related to their activities. ASU 2014-10 also eliminates an exception provided to development stage entities in Consolidations (ASC Topic 810) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The presentation and disclosure requirements in Topic 915 will no longer be required for interim and annual reporting periods beginning after December 15, 2014, and the revised consolidation standards will take effect in annual periods beginning after December 15, 2015. Early adoption is permitted. The Company adopted the provisions of ASU 2014-10 effective for its financial statements for the interim period ended June 30, 2014, and will no longer present the inception-to-date information formally required. | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08 (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. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2014-15 on the Company’s financial statement presentation and disclosures. | |
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
Note 2 - Going Concern | 6 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 2 - Going Concern | 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 $318,414 for the six months ended December 31, 2014, and the Company's liabilities exceed its assets by $671,690 as of December 31, 2014. 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. | |
Primarily as a result of our recurring losses and our lack of liquidity, we received a report from our independent registered public accounting firm for our financial statements for the year ended June 30, 2014 that includes an explanatory paragraph describing the uncertainty as to our ability 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. | |
Our cash needs for the quarter ended December 31, 2014 were primarily met by extension of loans of $71,262 from our majority shareholder. As of December 31, 2014, we had a cash balance of $39,572. Our majority shareholder is providing all of our working capital and will continue to do so until at least June 30, 2015. We will require approximately $1 million and up to 12 months to complete remediation and building refit prior to being able to re-lease our warehouse space to customers. Due to our limited operating history, we believe that we will need to sell common equity to raise the required funds. We have no arrangement or understanding pursuant to which we might obtain such funding. | |
Note_3_Advances_Related_Party
Note 3 - Advances - Related Party | 6 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 3 - Advances - Related Party | NOTE 3 – ADVANCES - RELATED PARTY |
As of December 31, 2014 and June 30, 2014, $71,262 and $8,661, respectively, was due the Company’s President and majority shareholder, Mr. Jay Hooper, for advances made to the Company to pay for operating expenses. The advances are non-interest bearing and due on demand. In view of the Company’s limited operations and resources, Mr. Hooper did not receive any compensation from the Company for the six months ended December 31, 2014. | |
NOTE 4 – COMMITMENT AND CONTINGENCIES – RELATED PARTY | |
Operating Lease Obligation to Related Party | |
The Company leases a warehouse in El Monte, California, which is owned by a single member limited liability company owned by the Company’s President and majority shareholder, which it plans to sublease in 2015. 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 lease is an operating lease. The Company recognizes rent expense on a straight-line basis over the entire lease period. Accordingly, for the six months ended December 31, 2014, the Company recorded $295,385 of rent expense and a deferred rent liability as of December 31, 2014 of $430,000 related to the free rent. As of December 31, 2014 and June 30, 2014, the Company owed $210,000 and $30,000, respectively, under this lease obligation. As of December 31, 2014 and June 30, 2014, the Company owed $210,000 and $30,000, respectively, under this lease obligation. | |