UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2019

[   ] Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 333-216180

CRONA CORP.

(Exact name of registrant as specified in its charter)

Nevada (State or Other Jurisdiction of Incorporation or Organization)	7380 (Primary Standard Industrial Classification Number)	35-2574778 (IRS Employer Identification Number)

Street: Strada Jean-Louis Calderon 31

City: Bucharest

ZIP: 030167

Country: Romania

+ 40371700107

management@corpcrona.com

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

  

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 ( )

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. (Check one):

 

Large accelerated filer ( )	Large accelerated filer  ( )	Non-accelerated filer ( )	Smaller reporting company (X)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  

Yes ( )       No (X)

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  6,087,500 common shares issued and outstanding as of September 24, 2020.

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Crona Corp.

QUARTERLY REPORT ON FORM 10-Q

Table of Contents

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PART I – FINANCIAL INFORMATION

Item 1.  Financial Statements

The accompanying interim financial statements of Crona Corp. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.

The interim financial statements are condensed and should be read in conjunction with the Company’s latest annual financial statements.

In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

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Crona Corp.

CONDENSED BALANCE SHEETS

March 31, 2019 and December 31, 2018

ASSETS
		March 31, 2019 (Unaudited)		December 31, 2018
Total Assets	$	-	$	-
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Liabilities
Current Liabilities
Accounts payable	$	1,900	$	1,600
Total Current Liabilities		1,900		1,600
Total Liabilities		1,900		1,600
Commitments and Contingencies (Note 5)
Stockholders’ (Deficit) Equity
Common stock, par value $0.001; 75,000,000 shares authorized, 6,087,500 shares issued and outstanding		6,088		6,088
Additional paid in capital		31,403		31,403
Accumulated deficit		(39,391)		(39,091)
Total Stockholders’ (Deficit) Equity		(1,900)		(1,600)
Total Liabilities and Stockholders’ (Deficit) Equity	$	-	$	-

See accompanying notes, which are an integral part of these condensed financial statements

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Crona Corp.

CONDENSED STATEMENTS OF OPERATIONS

Three months ended March 31, 2019 and 2018

UNAUDITED

		Three months ended March 31, 2019		Three months ended March 31, 2018
REVENUES	$	-	$	-
Gross Profit		-		-
OPERATING EXPENSES
General and Administrative Expenses		300		13,066
TOTAL OPERATING EXPENSES		300		13,066
LOSS ON SALE OF EQUIPMENT		-		2,047
NET LOSS FROM OPERATIONS		(300)		(15,113)
PROVISION FOR INCOME TAXES		-		-
NET LOSS	$	(300)	$	(15,113)
NET LOSS PER SHARE: BASIC AND DILUTED	$	(0.00)	$	(0.00)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED		6,087,500		6,087,500

See accompanying notes, which are an integral part of these condensed financial statements

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Crona Corp.

CONDENSED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY

Three months ended March 31, 2019 and 2018

UNAUDITED

 

See accompanying notes, which are an integral part of these condensed financial statements

 

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Crona Corp.

CONDENSED STATEMENTS OF CASH FLOWS

Three months ended March 31, 2019 and 2018

UNAUDITED

		Three months ended March 31, 2019		Three months ended March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(300)	$	(15,113)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		-		1,029
Loss on sale of equipment		-		2,047
Changes in operating assets and liabilities:
Prepaid expenses		-		2,662
Accounts payable		300		-
CASH FLOWS FROM OPERATING ACTIVITIES		-		(9,375)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party loan		-		9,375
CASH FLOWS FROM FINANCING ACTIVITIES		-		9,375
NET CHANGE IN CASH		-		-
Cash, beginning of period		-		31
Cash, end of period	$	-	$	31
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	-	$	-
Income taxes paid	$	-	$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
Related party loan paid through sale of equipment	$	-	$	17,675

 

See accompanying notes, which are an integral part of these condensed financial statements

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Crona Corp.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

March 31, 2019

The accompanying condensed financial statements of Crona Corp. are unaudited, but in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the Company’s financial position, results of operations, and cash flows as of and for the dates and periods presented. The condensed financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information.

 

These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in the Company’s Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the “Commission”) on August 11, 2020.

Note 1 – ORGANIZATION AND NATURE OF BUSINESS

Crona Corp.  (“the Company”) was incorporated in the State of Nevada on October 6, 2016. Crona Corp. was established for the purpose of quality sound recording needs. The Company is located in Romania and began its operations in early 2017.

The Company provides recording, studio and engineer/ producer services for record labels, music producers and recording artists.

Note 2 – GOING CONCERN

The accompanying condensed financial statements have been prepared in conformity with GAAP, which contemplate continuation of the Company as a going concern.  The Company generated no revenues for the three months ended March 31, 2019.  The Company currently has losses of $300 and $39,391 for the three months ended March 31, 2019 and the period from inception (October 6, 2016) to March 31, 2019, respectively, and has not completed its efforts to establish a stabilized source of revenue sufficient to cover operating costs over an extended period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

Note 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

Basis of presentation

The accompanying condensed financial statements have been prepared in accordance with GAAP. The Company’s year-end is December 31.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

 

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Crona Corp.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

March 31, 2019

Equipment

Equipment is stated at cost, net of accumulated depreciation.  The cost of equipment is depreciated using the straight-line method over 5 years. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the equipment's useful life are capitalized. Equipment sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and the resultant gain or loss is included in net income.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. An entity must also disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract.

The contract between the Company and the customer is signed without specific quantity of service to be used from the date of signing. The revenue depends on the hours spent on the recording services. The rates of the specific services are set out in the contract. The Company’s revenues are recognized at a point-in-time as ownership of track, mix or master (when it is approved by the customer) is transferred at a distinct point in time per the terms of a contract. The Company shall not be liable for any failure to perform its obligations if such failure is due to circumstances beyond its reasonable control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for services under the contract.

Advertising

The Company expenses advertising costs as incurred. During the three months ended March 31, 2019 and 2018 the Company incurred $0 and $1,987 of advertising expenses, respectively.

Basic Income (Loss) Per Share

The Company computes income (loss) per share in accordance with ASC 606 “Revenue from Contracts with Customers”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of March 31, 2019, there were no potentially dilutive debt or equity instruments issued or outstanding.

Reclassifications

Certain amounts in the 2018 financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported net loss, working capital, cash flows and stockholders’ (deficit) equity.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("Topic 606"). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company adopted this ASU on January 1, 2018, using the modified retrospective approach. The impact of adopting this ASU was not material to the financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current

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Crona Corp.

NOTES TO THE FINANCIAL STATEMENTS

March 31, 2019

model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this ASU on January 1, 2019.  The Company currently has no leases.

Note 4 – RELATED PARTY TRANSACTIONS

On March 21, 2018, the Company transferred all of the Company’s equipment to its sole director to repay the related party loan totaling $17,675.  This resulted in a loss on the equipment of $2,047.

Note 5 – COMMITMENTS AND CONTINGENCIES

The Company has entered into a one year rental agreement for a $225 monthly fee, starting on December 1, 2016. The term of the lease ended November 30, 2017, and prolonged till September 30, 2018, at which time it was not renewed. For the three months ended March 31, 2019 and 2018 rent expense was $0 and $675, respectively.

From time-to-time, the Company is subject to various litigation and other claims in the normal course of business. The Company establishes liabilities in connection with legal actions that management deems to be probable and estimable. No amounts have been accrued in the financial statements with respect to any matters.

Note 6 – INCOME TAXES

The Company adopted the provisions of uncertain tax positions as addressed in ASC 740 “Income Taxes” (“ASC 740”). As a result of the implementation of ASC 740, the Company recognized no increase in the liability for unrecognized tax benefits. As of March 31, 2019, the Company had net operating loss carry forwards of approximately $8,392 that may be available to reduce future years’ taxable income in varying amounts through 2037. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The valuation allowance at March 31, 2019 was approximately $8,392. The net change in valuation allowance for the three months ended March 31, 2019 was $63. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. 

The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of March 31, 2019. All tax years since inception remain open for examination by taxing authorities.

The provision for Federal income tax consists of the following: 

		As of March 31, 2019		As of December 31, 2018
Non-current deferred tax assets:
Net operating loss carry forward	$	(8,392)	$	(8,329)
Valuation allowance		8,392		8,329
Net deferred tax assets	$	-	$	-

 

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The actual tax benefit at the expected rate of 21% differs from the expected tax benefit for the periods as follows:

		As of March 31, 2019		As of December 31, 2018
Computed “expected” tax expense (benefit)	$	(63)	$	(4,093)
Change in valuation allowance		63		4,093
Actual tax expense (benefit)	$	-	$	-

The related deferred tax benefit on the above unutilized tax losses has a full valuation allowance not recognized against it as there is no certainty of its realization. Management has evaluated tax positions in accordance with ASC 740 and has not identified any significant tax positions, other than those disclosed.  

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward looking statement notice

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Financial information contained in this quarterly report and in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

DESCRIPTION OF BUSINESS

  

Brief description of Crona Corp. for last five years

  

On October 6, 2016, the Company was incorporated under the laws of the State of Nevada. We are engaged in recording services business.

  

Andrei Gurduiala has served as our President, Treasurer and as a Director, from October 6, 2016, until March 21, 2018.  On March 21, 2018, our board appointed Robert T.  Malasek as a Director, Chief Executive Officer, Chief Financial Officer and Secretary of the Company. Our board of directors is comprised of one person: Robert T.  Malasek.

  

We are authorized to issue 75,000,000 shares of common stock, par value $0.001 per share. On November 25, 2016, Andrei Gurduiala, our former President and a Director purchased an aggregate of 5,000,000 shares of common stock at $0.001 per share, for aggregate proceeds of $5,000.

On March 20, 2020, our board appointed initial Incorporator of the Company Andrei Gurduiala as a Director, President, Treasurer and Secretary of the Company. As of date these financial statements were issued, our board of directors is comprised of one person: Andrei Gurduiala.

  

General description of our activity

We were incorporated on October 6, 2016 in the State of Nevada, USA. The Company’s business operations are located in Romania. As of March 31, 2019, Crona Corp. has generated revenues of $36,210 in Romania, Bucharest revenues. We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings.

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We can book as little as one hour or as many as 24 hours per day, allowing the business to focus on providing recording services for record labels, music producers, and recording artists. The facility and its equipment are rented on either an hourly, daily, weekly, or monthly basis as dictated by the clients’ needs. In addition to studio and engineer/producer services, and in the course of ongoing business, it is customary in the recording industry that the Studio will occasionally enter into certain licensing agreements that will provide revenue over and above the rental and services income. There is no particular standard as to the frequency or amount of this revenue and it is negotiated on an individual basis. These licensing agreements can include, but are not limited to, production agreements, writer agreements, and performing agreements, all yielding a percentage of revenue earned through the exploitation of the product produced.

Our target markets are artists, organizers of various events and representatives of various industries of show business (TV, cinema, and entertainment clubs).

We expect to face strong competition from well-established companies and small independent companies like our self that may result in price reductions and decreased demand for service of music studio. There are several companies in Romania in our industry, such as: DAW.RO, INES Studios, and Harmonix Recording Studio.  Management believes that we can develop ourselves in the industry, once we attract customers and become profitable.

Licensing

From time to time the Company may enter into licensing agreements with music production and distribution companies.

The license agreements may typically grant the production and distribution company rights to a music single or all of an act's music in a particular country or region with a term of three to fifteen years. The production or distribution company can then distribute the music in record or CD format, mp3, ring tone, or any other music media licensed in the agreement.

The Company will typically receive royalties of a negotiated percentage between 18% and 75% of sales of the production and Distribution Company’s published dealer price less certain packaging deductions. In addition, the Company may receive between 18% and 75% of net royalty receipts received in the particular nation or region. In connection with the license agreement, the Company may receive a cash advance.

Crona Corp. signed a Recording Studio Contract with the following customers: NM & Mike J Production, Vent Event Romania, World Music Ltd. and MALISTIRNO SRL.

   

rona Corp. has generated revenues of $36,210 for providing recording service to our customers.

STARTUP EQUIPMENT

We believe that a lot of talented people will be interested in our service. The Company has purchased initially needed equipment for the recording purposes, which is presented as following:

·

Sound System tp20000Q power amplifier 2100W* 4CH

·

Professional recording sound card USB audio interface Hot Roland AU-53

·

Sound Recording Microphone BM-680

·

Karaoke audio mixer player 4K Ultra

·

Mixer Large Sound Console LX9-20

·

Closed monitoring headphone

·

Professional Studio Broadcasting Recording Condenser Microphone Kit with Microphone stand- NM-650

·

Studio Monitor Speakers One Pair FMUSER FU-584 100W

·

2-Way Active Studio monitor Speaker- Hivi X3

·

Screen display stand desktop lift multi-screen- D7T Three

·

Electric Guitar Hollow Body Wine Red G5122-1965

·

NUX MG-20 Guitar Modeling Processor Drum Pattern

·

Bass Guitar Black Color 4002

·

Practical guitar transposer

·

African drum sheepskin for drum heads professional

·

UpBright Adapter for M-Audio Keystation Line MAudio Key Station Pro

·

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Connector Power adapter NAC3FCA PowerCon 20A AC Cable 20pcs

·

Nylon cable ties HWEXPRESS, 100 PCS 3 x100 (mm) Self

·

HAMA Cables

·

MOGAMI CP12S/HR4P

·

4pin Adapter cable for DSLR Rig Power V-Mount Limit

·

Sound Card/6 channel Audio Card CMI8738-6CH PCI-E

·

Voice recording software GoldWave

·

Voice recording software Mixcraft

·

Voice recording software Blaze Media Pro

On March 21, 2018, the Company transferred all the equipment to Andrei Gurduiala. The Company is unable to conduct its business currently, as the equipment was its core production tool. The Company expects to expand its operations in Romania to conquer the market during 2021.

RESEARCH AND DEVELOPMENT EXPENDITURES

  

We have not incurred any research expenditures since our incorporation.

  

BANKRUPTCY OR SIMILAR PROCEEDINGS

  

There has been no bankruptcy, receivership or similar proceeding.

  

REORGANIZATIONS, PURCHASE OR SALE OF ASSETS

  

The Company transferred all the equipment to Andrei Gurduiala on March 21, 2018.

  

COMPLIANCE WITH GOVERNMENT REGULATION

  

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the construction and operation of any facility in any jurisdiction which we would conduct activities.

  

We do not believe that any existing or probable government regulation on our business, including any applicable export or import regulation or control imposed by China or Romania will have a material impact on the way we conduct our business.

  

FACILITIES

  

Our previously leased office was located at Strada C. A. Rosetti 5, Bucharest 030167 Romania. Our current office is provided by our sole director Andrei Gurduiala rent-free at the following address: Jean-Louis Calderon 31, Bucharest, 030167, Romania. Our telephone number is +40371700093.

EMPLOYEES AND EMPLOYMENT AGREEMENTS

  

We have no employees as of the date of this prospectus. Our sole officer and director, Andrei Gurduiala, currently devotes approximately 20 hours per week to company matters. After receiving funding, Andrei Gurduiala plans to devote, as much time to the operation of the Company as he determines is necessary for him to manage the affairs of the Company. As our business and operations increase, we will assess the need for full time management and administrative support personnel.

  

LEGAL PROCEEDINGS

  

There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company.

COMMON STOCK

The Company has 75,000,000, $0.001 par value shares of common stock authorized.

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On November 25, 2016, the Company issued 5,000,000 shares of common stock to a director for cash proceeds of $5,000 at $0.001 per share.

During May 2017, the Company issued 1,087,500 shares of common stock to shareholders for cash proceeds of $32,490 at $0.03 per share.

There were 6,087,500 shares of common stock issued and outstanding as of March 31, 2019.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

  

This section includes a number of forward-looking statements that reflect our current views regarding the future events and financial performance of Crona Corp.

  

We qualify as an “emerging growth company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

Have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

Comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis) unless the SEC determines that the application of such additional requirements is necessary or appropriate in the public interest, after considering protection of investors, and whether the action will promote efficiency, competition and capital formation; Submit certain executive compensate on matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and Disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.

  

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

  

We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or  the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

RESULTS OF OPERATION

Results of Operations for the three months ended March 31, 2019 and 2018:

 

Revenue and cost of goods sold

 

For the three months ended March 31, 2019 and 2018 Crona Corp. had not generated any revenue.

Operating expenses

 

Total operating expenses for the three months ended March 31, 2019 were $300. The operating expenses for the three months ended March 31, 2019 included professional fees of $300.

Total operating expenses for the three months ended March 31, 2018 were $13,066. The operating expenses for the three months ended March 31, 2018 included advertising expense of $1,987 audit fees of $9,375; depreciation of $1,029 and rent expense of $675. The Company had a loss on asset sale of $2,047 for the three months ended March 31, 2018.

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Net Loss

The net loss for the three months ended March 31, 2019 and 2018 was $300 and $15,113, respectively. The changes are related to decrease in operating expenses.

 

Liquidity and capital resources

As at March 31, 2019, our total assets were $0.

As at March 31, 2019, our current liabilities were $1,900.

As at March 31, 2019, we had a working capital deficit of $1,900.

CASH FLOWS FROM OPERATING ACTIVITIES

We have not generated positive cash flows from operating activities. For the three months ended March 31, 2019 net cash flows used in operating activities was $0.

CASH FLOWS FROM INVESTING ACTIVITIES

For the three months ended March 31, 2019 we generated $0 in investing activities.

CASH FLOWS FROM FINANCING ACTIVITIES

For the three months ended March 31, 2019 net cash flows from financing activities was $0.

OFF-BALANCE SHEET ARRANGEMENTS

  

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

  

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None

ITEM 4. CONTROLS AND PROCEDURES

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2019. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

Changes in Internal Controls over Financial Reporting

There was no change in the Company’s internal control over financial reporting during the quarterly period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II.  OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS

We are not involved in any pending legal proceeding nor are we aware of any pending or threatened litigation against us.

ITEM 1A.	RISK FACTORS

None

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

None

ITEM 5.	OTHER INFORMATION

None

ITEM 6.	EXHIBITS

The following exhibits are included as part of this report by reference:

31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

SIGNATURES

  

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the Bucharest, Romania on September 24, 2020.

  

	Crona Corp.
	By:	/s/	Andrei Gurduiala
		Name:	Andrei Gurduiala
		Title:	President, Treasurer, Secretary and Director
			(Principal Executive, Financial and Accounting Officer)

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