Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2013 | |
Document and Entity Information: | ||
Entity Registrant Name | CROWN MARKETING | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | TRUE | |
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 | Q3 | |
Entity Common Stock, Shares Outstanding | 19,981,725,800 | |
Entity Public Float | $3,825,725,800 | |
Amendment Description | xbrl |
CROWN_MARKETING_AND_SUBSIDIARY
CROWN MARKETING AND SUBSIDIARY - CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $2,484 | |
Deposits | 40,500 | |
Total current assets | 62,984 | |
Total Assets | 62,984 | |
Accounts payable related parties | 81,262 | 8,661 |
Accrued rent due to related parties | 300,000 | 30,000 |
Total current liabilities | 381,262 | 38,661 |
Retained earnings | -830,470 | -353,276 |
Total Equity | -805,970 | -353,376 |
LIABILITIES AND EQUITY | $62,984 | |
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 | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Income | ||||
Rent expense-related party | $147,692 | $147,692 | $443,077 | $196,923 |
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 $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Cash Flows | ||
Net loss | ($477,194) | ($201,584) |
(Increase)decrease in deposits | -16,000 | |
(Increase)decrease in advances from related parties | 270,000 | |
Increase(decrease) in accounts payable and accrued expenses | 72,601 | 4,661 |
Increase(decrease) in deferred rent obligation to related party | 173,077 | 196,923 |
Net cash provided by/(used in) operating activities | 22,484 | |
Net increase in cash and cash equivalents | 22,484 | |
Cash and cash equivalents- end of period | $22,484 |
Note_1_Nature_of_Business_and_
Note 1 - Nature of Business and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2015 | |
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. | |
The Company continues to expand its business activities. In January 2015, the Company’s 100% owned subsidiary, Crown Laboratory Inc., was formed to develop and market Chinese and other herbal remedies. Initial capitalization of $10,000 was provided by a loan from an entity controlled by the Company’s President. The loan is due on demand and bears interest at 4%. We expect to require additional funding for this business segment and have already commenced obtaining FDA approval for our products. | |
In March 2015, the Company 50% owned subsidiary, Crown Mobile, was formed. Crown Mobile is a MVNO (mobile virtual network operator) and markets Crown Mobile prepaid mobile telephone service using T-Mobile’s wireless network. Crown Mobile intends to offer ancillary services such as a proprietary debit card. At March 31, 2015, the Company has a controlling financial interest in Crown Mobile. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2015 | |
Notes | |
Basis of Presentation | Basis of Presentation |
The unaudited financial statements of the Company for the period ended March 31, 2015 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 | 9 Months Ended |
Mar. 31, 2015 | |
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 March 31, 2015, the weighted average common shares outstanding totaled 19,981,021,800. There were no potentially dilutive shares as of March 31, 2015. | |
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 May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing 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 interim and annual periods beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Early adoption is not permitted, and either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company’s financial statements and disclosures. | |
In August 2014, the FASB issued ASU 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. | |
In February, 2015, the FASB issued ASU No. 2015-02 (ASU 2015-02), Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. | |
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 | 9 Months Ended |
Mar. 31, 2015 | |
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 has not yet been successful in establishing profitable operations. The Company incurred a net loss of $476,315 for the nine months ended March 31, 2015, and the Company's liabilities exceed its assets by $829,591 as of March 31, 2015. 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 March 31, 2015 were primarily met by advance of $81,262 from our majority shareholder. As of March 31, 2015, we had a cash balance of $39,363. 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 | 9 Months Ended |
Mar. 31, 2015 | |
Notes | |
Note 3 - Advances - Related Party | NOTE 3 - ACCOUNTS PAYABLE - RELATED PARTY |
As of March 31, 2015 and June 30, 2014, $81,262 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. Advances of $71,262 are non-interest bearing, unsecured, and due on demand. A loan of $10,000 is unsecured, due on demand, and bears interest at 4%. In view of the Company’s limited operations and resources, Mr. Hooper did not receive any compensation from the Company for the nine months ended March 31, 2015. | |
NOTE 5 – ADVANCED RENT DUE – 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. As of December 31, 2014 and June 30, 2014, the Company owed $210,000 and $30,000, respectively, under this lease obligation. The Company recognizes rent expense on a straight-line basis over the entire lease period. Accordingly, for the nine months ended December 31, 2014, the Company recorded $443,077 of rent expense and a deferred rent liability as of March 31, 2015 of $487,692 related to the free rent. As of March 31, 2015 and June 30, 2014, the Company owed $300,000 and $30,000, respectively, under this lease obligation. | |