10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 _________

FORM 10-Q/A

_________

Amendment No. 1 

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

For the quarterly period ended June 30, 2012

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number 333-169501

CROWN DYNAMICS CORP.

(Exact name of registrant as specified in its charter)

Delaware	98-0665018
(State of incorporation)	(I.R.S. Employer Identification No.)

c/o Jeffrey Rassas

8399 East Indian School Road

Suite 202

Scottsdale, AZ 85251

(Address of principal executive offices)

(480) 463-4246

(Registrant’s telephone number) 

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     ☐ No

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     ☐ No (Not required)

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 ☐ Accelerated Filer ☐

Non-Accelerated Filer ☐ 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  ☑ No

As of June 30, 2012, there were 39,769,609 shares of the registrant’s $0.001 par value common stock issued and outstanding.

This form 10-Q/A amends the form 10-Q that was filed on September 14, 2012 to reflect changes in the financial statements resulting from a change in the accounting acquirer to Airware Holdings, Inc. from Crown Dynamics Corp. Consequently, the balance sheet for the year ended December 31, 2011 has been restated to reflect the change from presenting the Balance Sheet of Crown Dynamics, Corp. as the accounting acquirer to the unaudited Balance Sheet of the accounting acquirer, Airware Holdings, Inc.

Further changes have been made to correctly reflect the number of Options and Warrants outstanding, the par value of the stock and the number of shares outstanding.

Lastly, “ITEM 4. CONTROLS AND PROCEDURES” has been amended to reflect that our management, including our chief executive officer and chief financial officer, has included that our internal control over financial reporting is ineffective, as evidenced by our late and amended filings.

CROWN DYNAMICS CORP.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	4
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	22
ITEM 4.	CONTROLS AND PROCEDURES	22
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	23
ITEM 1A.	RISK FACTORS	23
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	23
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	23
ITEM 4.	MINE SAFETY DISCLOSURES	23
ITEM 5.	OTHER INFORMATION	24
ITEM 6.	EXHIBITS	25

Special Note Regarding Forward-Looking Statements

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Crown Dynamics Corp. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

*Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "CDYY" refers to Crown Dynamics Corp.

PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

INDEX	F-1
Unaudited Consolidated Balance Sheet for the Six months ended June 30, 2012 and Audited Consolidated Balance Sheet as of December 31, 2011	F-2
Unaudited Consolidated Statement of Operations for the Six Months Ended June 30, 2012 and 2011	F-3
Unaudited Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2012 and 2011	F-4
Notes to Condensed Consolidated Financial Statements Unaudited	F-5

F-1

CROWN DYNAMICS CORP.

BALANCE SHEET

AS OF JUNE 30, 2012 AND DECEMBER 31, 2011

	As of	As of
	June 30,	December 31,
	2012	2011
	(Unaudited)	(RESTATED)
ASSETS
Current Assets:
Cash and cash equivalent	$14,111	$ 8,186
Accounts receivable	-	6,814
Deposits	25,000	-
Prepaid expenses	6,612	5,000
Inventory	22,393	2,027
Total current assets	68,116	22,027
Other Assets:
Property and equipment, net	46,595	123,679
Intangible assets, net	334,061	351,134
Notes receivable - related party	-	218,344
Security deposits	2,400	12,303
Total Assets	$451,172	727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable	$1,370,396	$1,115,247
Accrued interest	43,694	17,888
Accrued expenses	179,043	109,305
Notes  payable	127,400	-
Notes payable to related parties	-	25,000
Loans payable to shareholders	40,000	-
Convertible notes payable - Current Portions	415,000	410,000
Convertible notes payable to related parties - current portion	658,315	523,480
Total current liabilities	2,833,848	2,200,920
Accrued interest to related parties	11,048	10,235
Notes payable to related party	47,520	275,694
Convertible notes payable - less current portion	100,000	-
Convertible notes payable to related parties, less current portion	5,000	145,000
Total liabilities	2,997,416	2,631,849
Commitments and Contingencies
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	3,977	1,284
Additional paid-in capital	9,285,961	7,106,199
Accumulated deficit	(11,836,182)	(9,011,845)
Total stockholders' (deficit)	(2,546,244)	(1,904,362)
Total Liabilities and Stockholders' (Deficit)	$ 451,172	$ 727,487

The accompanying notes to financial statements are an integral part of these financial statements

F-2

CROWN DYNAMICS CORP.

STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2012

(unaudited)

	Three Months Ended		Six Months Ended
	June 30,	June 30,	June 30,	June 30,
	2012	2011	2012	2011
Revenues, net	$         909	$     60,113	$       14,697	$       82,822
Cost of products sold	6,958	71,115	12,344	77,192
	(6,049)	(11,002)	2,353	5,630
Operating expenses
General and Administrative	393,767	268,430	2,560,353	404,368
Sales and Marketing	35,713	113,995	89,812	162,581
Total expenses	429,480	382,425	2,650,165	566,949
(Loss) from Operations	(435,529)	(393,427)	(2,647,812)	(561,319)
Other income (expense)
Interest income	2,007	838	2,661	1,629
Interest expense	(55,941)	(31,447)	(114,398)	(381,393)
Induced note conversion expense		(439,771)		(439,771)
Other income	-	1,397	-	30,844
Loss on disposition of property and equipment	(64,238)		(64,238)
Other expense	(550)	-	(550)	(18,671)
Total other income (expense)	(118,722)	(468,983)	(176,525)	(807,362)
Loss before income  taxes	(554,251)	(862,410)	(2,824,337)	(1,368,681)
Income tax expense	-	-	-	-
Net (Loss)	$(554,251)	$  (862,410)	$(2,824,337)	$(1,368,681)
Basic and diluted net loss per common share	$      (0.01)	$        (0.08)	$         (0.10)	$         (0.14)
Basic and diluted weighted average common
shares outstanding	39,769,609	10,495,003	28,228,327	9,534,834

The accompanying notes to financial statements are an integral part of these financial statements

F-3

CROWN DYNAMICS CORP.

STATEMENTS OF CASHFLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2012

(Unaudited)

	2012			2011
Operating Activities:
Net (loss)	$	(2,824,337	)	$	(1,368,681	)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation and amortization		29,110			36,103
Increase in notes receivable related party for interest earned		(655	)		(1,629	)
Common stock issued for services		1,898,646			2,500
Assets assumed in recapitalization with Airware Holding, Inc.		(123	)		—
Liabilities assumed in recapitalization with Airware Holdings, Inc.		39,806			—
Increase in notes payable issued for services		37,500			—
Amortization of debt discount to related parties		44,639			7,325
Notes payable to officer for compensation and accrued compensation		—			275,694
Reduction in accrued compensation from salary and option forfeitures to related party		—			144,580
Stock options issued for services		—			2,600
Loss on disposition of property and equipment		64,238			—
Induced conversion expense		—			439,771
Interest on notes converted to common stock		—			39,674
Changes in operating assets and liabilities:
Accounts receivable		6,814			(14,734	)
Inventory		36,303			9,608
Prepaid expenses		(1,612	)		(10,118	)
Deposits		(15,097	)		—
Accounts payable		255,149			29,696
Accrued interest		25,806			(6,848	)
Accrued expenses		69,738			(115,580	)
					—
Net cash (used in) operating activities		(334,075	)		(530,039	)
Investing Activities:
Purchases of property and equipment		(5,000	)		—
Notes payable to related parties		(35,000	)		(56,400	)
Net Cash Provided (used for) Investing Activities		(40,000	)		(56,400	)
Financing Activities:
Common Stock For Cash		5,000			433,500
Proceeds from convertible note payable to related party		—			145,000
Proceeds from convertible notes payable		105,000			—
Proceeds from convertible debenture - note payable		75,000			—
Proceeds from exercise of warrants		195,000			—
Net Cash Provided by Financing Activities		380,000			578,500
Net (Decrease) Increase in Cash		5,925			(7,939	)
Cash - Beginning of Period		8,186			61,972
Cash - End of Period	$	14,111		$	54,033
Interest paid in cash	$	25,000		$	25,000
Non-cash investing and financing activities:
Common stock issued for convertible notes	$	—		$	703,117
Common stock issued for convertible note to related party	$	—		$	1,140,000
Debt discount on note payable	$	10,100		$	—
Debt discount on related party note	$	—		$	38,029
Reduction in note payable related parties by notes reduction in notes receivable officers	$	(218,344	)	$	—

The accompanying notes to financial statements are an integral part of these financial statements

F-4

CROWN DYNAMICS CORP.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

1. Summary of Significant Accounting Policies and Use of Estimates

Basis of Presentation and Organization

Crown Dynamics Corp. (“Crown Dynamics,” Crown or the “Company”) is a Delaware corporation. The Company was incorporated under the laws of the State of Delaware on June 15, 2010.

On March 20, 2012, through an equity exchange agreement, the Company acquired all of the issued and outstanding stock of Airware Holdings, Inc., a Nevada corporation (“Airware”), in exchange for 21,844,136 shares of the Company’s newly-issued common stock. Airware was formed in February 2010 and is a non-prescription medical products company. The principal business purpose of the Company is to develop, manufacture and distribute nasal breathing devices. The Company targets prospective customers such as compassionate sleeping partners, individuals with allergies and athletic enthusiasts throughout the United States and the United Kingdom.

The share exchange has been accounted for as a recapitalization reverse merger between Airware Holdings, Inc. and Crown Dynamics, Corp. Airware is the accounting acquirer and Crown is the accounting acquiree. Consequently, the historical pre-merger financial statements of Airware are now those of the Company. The par value of the stock of Airware of $.001 per share has been adjusted to that of the Company of $.0001 per share with the par value difference of $39,319 charged to paid-in capital. The pre-merger deficit is that of Airware. Crown’s pre-merger accumulated deficit has been charged to paid-in capital. The pre-merger Airware outstanding shares have been adjusted to reflect the exchange, thus reducing the number of outstanding shares at December 31, 2011 from 25,670,000 total shares outstanding, including common and convertible preferred stock, to 12,835,250 shares of common stock. The pre-merger outstanding shares of Crown of 17,725,000 with a par value of $1,772 have been included in the issued and outstanding shares of the Company at June 30, 2012.

The Company has included the eleven days of Crown the acquiree operations within its Statement of Operations and Statement of Cash Flows for the six month period ending June 30, 2012. The Company’s losses for the period were increased by $239,144 as a result of including Crown the acquiree’s operating results for the eleven days. The Company’s cash flow was unchanged as a result of including Crown the acquiree’s cash flows for the eleven days.

Unaudited Interim Financial Statements

The interim financial statements of the Company as of June 30, 2012 and 2011, and for the periods then ended, are unaudited. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2012 and 2011 and the results of its operations and its cash flows for the periods then ended. These results are not necessarily indicative of the results expected for the calendar year ending December 31, 2012. The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States (U.S. “GAAP”).

Inventory

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts.

Property and Equipment

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts. 

The estimated useful lives of property and equipment are:

· Manufacturing equipment 3 years

· Office furniture and equipment     5-7 years

Intangible Assets

Intangible assets consist of patent and intellectual property and are amortized over the period that the Company believes best reflects the period in which the economic benefits will be consumed. The Company evaluates intangible assets with definite lives for recoverability when events or circumstances indicate that these assets might be impaired. The Company tests those assets for impairment by comparing their respective carrying values to estimates of the sum of the undiscounted future net cash flows expected to result from the assets. If the carrying amount of an asset exceeds the sum of the undiscounted net cash flows expected from that asset, the Company recognizes an impairment loss based on the amount by which the carrying value exceeds the fair value of the asset. Amortization expense for the six month period ended June 30, 2012 and 2011 amounted to $8,598 and $8,064 respectively, and is included in general and administrative expenses on the statement of operations.

Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses an estimate of the related undiscounted cash flows, excluding interest, over the remaining life of the property and equipment or other long-lived asset in assessing its recoverability. Impairment losses are recognized for the amount by which the carrying amount of the asset(s) exceeds the fair value of the asset(s). The Company primarily employs two methodologies for determining the fair value of a long-lived asset: (i) the amount at which the asset could be bought or sold in a current transaction between willing parties; or (ii) the present value of expected future cash flows grouped at the lowest level for which there are identifiable independent cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Revenue Recognition.

The Company recognizes revenue on the sale of products at the time of delivery and acceptance. Delivery is generally FOB shipping point. At the time of delivery, the following have occurred:

· Delivery has been evidenced by the appropriate signature on the delivery ticket;

· A price per unit has been determined; and

· Collectability has been reasonably assured.

Revenues are recorded net of slotting payments and co-operative advertising costs when applicable.

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, certain current maturities of long-term debt and accrued liabilities approximate fair value because of their short maturities or for long term debt based on borrowing rates currently available to the Company for loans with similar terms and maturities.

Long-term receivables with related parties are carried at an approximate fair value based on rates available to Company for risk free investments.

Earnings per Share

Basic earnings per share does not include dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Dilutive securities are not included in the weighted average number of shares when inclusion would be anti-dilutive. Due to the net losses for the periods ended June 30, 2012 and 2011, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.

As of June 30, 2012 there were 3,202,500 shares issuable upon conversion of notes payable, exercise of warrants and options that were not included in the earnings per share calculation as they were anti-dilutive. There is an additional convertible note that has a provision to convert to 5,000,000 shares upon default on the note at $.10 per share.

Shipping and Handling

Shipping and handling costs associated with the shipment of products to the customer are recorded as costs of revenue.

Advertising Costs

Costs associated with producing, communicating and advertising are capitalized and expensed when first viewed by the public.  There no cost capitalized or expensed for the periods ending June 30, 2012 and 2011 respectively. Advertising expense is included in selling and marketing expenses on the accompanying statements of operations.

Recent Accounting Pronouncements:

In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRSs")." Under ASU 2011-04, the guidance amends certain accounting and disclosure requirements related to fair value measurements to ensure that fair value has the same meaning in U.S. GAAP and in IFRS and that their respective fair value measurement and disclosure requirements are the same. ASU 2011-04 is effective for public entities during interim and annual periods beginning after December 15, 2011. The Company has adopted the requirements of this ASU.

There were various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries. None of the updates are expected to a have a material impact on the Company's financial position, results of operations or cash flows.

2. Going Concern:

The Company has incurred losses since inception and requires additional funds for future operating activities. The Company selling activity has not yet reached a level of revenue sufficient to fund its operating activities. These factors create an uncertainty as to how the Company will fund its operations and maintain sufficient cash flow to operate as a going concern.

In response to these financial difficulties, management is continuing to pursue financing from various sources, including private placements from investors and institutions. In addition, the Company has introduced an expanded product line and has had positive response to the product from a number of large potential customers. Management believes these efforts will contribute toward funding the Company’s activities until sufficient revenue can be earned from future operations. Management believes these combined efforts, if successful, will be sufficient to meet its working capital needs and its currently anticipated expenditure levels for the next year.

The Company’s ability to meet its cash requirements in the next year is dependent upon obtaining this financing and achieving improved sales level. If this is not achieved, the Company may be unable to obtain sufficient cash flow to fund its operations and obligations, and therefore, may be unable to continue as a going concern. The accompanying financial statements have been prepared on a going concern basis, and accordingly, do not include any adjustments relating to the recoverability and classification of recorded asset amounts; nor do they include adjustments to the amounts and classification of liabilities that might be necessary should the Company be unable to continue operations or be required to sell its assets.

3. Accounting Errors Corrections:

The Company’s financial statements included in the previously issued Form 10-Q for the quarterly period ended June 30, 2012 have been restated to correct for the following errors.

In the previous filings, the statements were prepared with management’s conclusion that the reverse capitalization merger, further detailed in Footnote 1, “Summary of Significant Accounting Policies and Use of Estimates,” that Crown Dynamics Corp. was the accounting acquirer. Upon further examination management concluded that its original conclusion was incorrect and that Airware Holdings, Inc. was the accounting acquirer. Accordingly, the financial statements have been restated to reflect the correction of this error. The change to the each item within the financial statements is detailed below in a comparison of the previously issued statements to those restated:

BALANCE SHEET
AS OF  DECEMBER 31, 2011
	As Originally						As
	Reported			Error			Restated
ASSETS
Current Assets:
Cash and cash equivalent	$	—		$	8,186		$	8,186
Accounts receivable		—			6,814			6,814
Inventory		—			2,027			2,027
Prepaid expenses		—			5,000			5,000
Total current assets		—			22,027			22,027
Other Assets:
Property and equipment, net		—			123,679			123,679
Intangible assets, net		—			351,134			351,134
Notes receivable - related party		—			218,344			218,344
Security deposits		—			12,303			12,303
Total Assets	$	—		$	727,487		$	727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable	$	5,000		$	1,110,247		$	1,115,247
Accrued interest		—			17,888			17,888
Accrued expenses		—			109,305			109,305
Notes payable to related parties		—			25,000			25,000
Convertible notes payable - current portion		—			410,000			410,000
Convertible notes payable to related parties - current portion, net of discount		—			523,480			523,480
Total current liabilities		5,000			2,195,920			2,200,920
Accrued interest to related parties		—			10,235			10,235
Notes payable to related party		—			275,694			275,694
Convertible notes payable to related parties, less current portion		—			145,000			145,000
Total liabilities		5,000			2,626,849			2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 12,835,250 shares issued and outstanding at December 31, 2011		1,650			(366	)		1,284
Discount on common stock		(600	)		600			—
Additional paid-in capital		54,250			7,051,949			7,106,199
Accumulated deficit		(60,300	)		(9,011,845	)		(9,011,845	)
Total stockholders' (deficit)		(5,000	)		(1,959,662	)		(1,904,362	)
Total Liabilities and Stockholders' (Deficit)	$	—		$	667,187		$	727,487

In the previous filing, general and administrative expenses of $2,312,610 were reported for the 6 month period ended June 30, 2012. The previous filing failed to include the general administrative expenses of Crown the acquiree of $247,743 for the six month period ended June 30, 2012. The revised total of the general and administrative expenses for the 6 months ended June 30, 2012 is $2,560,353.

STATEMENT OF OPERATIONS
AS OF  DECEMBER 31, 2011
	As Originally						As
	Reported			Error			Restated
Revenues, net	$	14,697		$	—		$	14,697
Cost of products sold		12,344			—			12,344
		2,353			—			2,353
Operating expenses
General and Administrative		2,312,610			247,743			2,560,353
Sales and Marketing		89,812			—			89,812
Total expenses		2,402,422			247,743			2,650,165
(Loss) from Operations		(2,400,069	)		(247,743	)		(2,647,812	)
Other income (expense)
Interest income		2,661			—			2,661
Interest expense		(114,398	)		—			(114,398	)
Loss on disposition of property and equipment		(64,238	)		—			(64,238	)
Other expense		(550	)		—			(550	)
Total other income (expense)		(176,525	)		—			(176,525	)
Loss before income  taxes		(2,576,594	)		(247,743	)		(2,824,337	)
Income tax expense		—			—			—
Net (Loss)	$	(2,576,594	)	$	(247,743	)	$	(2,824,337	)
Basic and diluted net loss per common share	$	(0.09	)	$	(0.01	)	$	(0.10	)
Basic and diluted weighted average common
shares outstanding		28,228,327			—			28,228,327

4. Notes Payable

Notes payable consists of the following:

20.00% notes payable, due March 8, 2012, interest payable at maturity, unsecured	$	37,500
7.00% note payable due April 4, 2011, interest payments are due annually, unsecured		25,000
24% convertible debenture due September 12, 2012, original issue of $75,000 and redeemable at $79,500 net of unamortized debt discount of $10,100		64,900
	$	127,400

5. Loans Payable to Shareholders

Loans payable to shareholders consists of the following:

Non-interest bearing loan due on demand, unsecured	$	15,000
Non-interest bearing loan due on demand, unsecured		25,000
	$	40,000

See “Subsequent Events,” Footnote 16, for additional information.

6. Convertible Notes Payable:

Convertible notes payable consist of the following:

8.00% notes payable, due dates ranging from August 22, 2012 to March 19,2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	$	405,000
6.50% note payable, due dates ranging from September 20, 2011 to October 19, 2011, convertible to common stock at $1.00 per share, interest payments are due annually, unsecured		10,000
6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured		50,000
6.50% note payable, due date August 31, 2010, convertible to common stock at $10.00 per share, interest payments are due annually, unsecured	$	50,000
		515,000
Less current portion		(415,000	)
		100,000

7. Notes Payable to Related Party:

Notes payable to party of the following:

3.00% note payable, due March 2021, interest due at maturity, unsecured  $47,520

8. Convertible Notes Payable to Related Parties:

Convertible notes payable to related parties consist of the following:

Dynamics Corp. common stock at $.10 per share, interest payments are due monthly. Debt is secured by substantially all of the assets of Airware Holdings, Inc.	$493, 315
8.00 % note payable due March 15, 2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	5,000
8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	20,000
6.50% note payable, due May 2, 2013 convertible to common stock at $2.00 per share, interest payment is due at maturity, unsecured	$145,000
	663,315
Less current portion	(658,315)
	5,000

See “Related Party Transactions,” Footnote 9, for additional information.

9. Related Party Transactions:

As detailed in Footnote 7, “Notes Payable to Related Party,” the Company has notes payable to its President and Board Member, David Dolezal. Certain convertible notes are with parties related to the Company are former officers and significant consultants, as further detailed in Footnote 8, “Convertible Notes Payable to Related Parties.” Certain other related party transactions are detailed in Footnote 14, “Subsequent Events.”

During the 6 month period ended June 30, 2012 the Company reduced notes payable to related parties by $218,344, with notes receivable and the related accrued interest receivable, from its President and Board Member, David Dolezal, and its Chief Executive Officer, Jeffrey Rassas.

10. Commitments and Contingencies:

The Company has agreed to indemnify its officers and director for certain events or occurrences that may arise as a result of the officers or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited.

The Company enters into indemnification provisions under its agreements with other companies in its ordinary course of business, typically with business partners, customers, landlords, lenders and lessors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited.

The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of June 30, 2012.

On August 10, 2011 the Company granted 700,000 stock options to a current employee and three consultants to the Company. The option grant was effective as of July 19, 2011 with the options vesting over one year in quarterly increments commencing on October 17, 2011 and continuing each quarter from that date forward.  These warrants are exercisable at $.50 per share of common stock over a 10 year term.  

On November 7, 2011 the Company was named as a defendant in a lawsuit alleging a default on a note payable of $50,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. The Company is working towards settling the litigation.

On December 22, 2011 the Company entered into a distribution agreement that provides for the issuance of common stock warrants, with an expiration date of 3 years, for the purchase of the Company’s common stock in an amount equal to 15% of the total products purchased by the distributor from the Company at the invoice price against the previous year’s purchases of paid invoices. The warrant price will be equal to the closing price of Crown Dynamics Corp.’s stock price at the anniversary date of the agreement.

On December 27, 2011, the Company was named as a defendant in a lawsuit alleging a default on a two notes payable total $75,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. Subsequent to June 30, 2012 a judgment was entered against the Company as a result of this lawsuit.

On June 8, 2012 the Company entered a 12 month lease for the rental of a new Company office. The commitment for the rental of the space is as follows:

FYE December 31	Annual Rent
2012	$16,800
2013	$12,000

11. Stockholders’ Equity:

Common Stock

As further detailed in Footnote 13, “Business Combination,” the Company issued 21,844,136 shares to effect the business combination with Airware Holding, Inc. on March 20, 2012. Airware Holdings, Inc. is the accounting acquirer for the purposes of the business combination and has treated the transaction as a recapitalization through a reverse merger process. As a consequence, the common stock of the company has been restated to reflect the differences in par values of the stock.

On December 1, 2011 the Company entered into employment agreements with its Chief Executive Officer Jeffrey Rassas and its President David Dolezal with annual compensation of $150,000 each. In addition, the agreements provided for options to purchase the Company’s Common Stock for $0.05 per share exercisable over a ten year period. Mr. Rassas and Mr. Dolezal total options under the agreement were 4,585,122 and 9,170,244 of Airware Holdings, Inc. common stock, respectively. The options were to vest at 25% immediately on December 1, 2011 and 25% per each subsequent three month period thereafter. On March 19, 2012 the Company terminated the aforementioned employment agreements, while leaving the annual compensation in place, and replaced the above noted options with the immediate issuance of common stock of 2,292,561 and 4,585,122 shares, the Crown share equivalent to the Airware shares provided for in the options under the agreement, to Mr. Rassas and Mr. Dolezal. The Company has valued the stock issued at $.50 per share for a total value of $1,146,281 and $2,292,561 for Mr. Rassas and Mr. Dolezal, respectively. The Company recognized $855,013 and $783,356 of Mr. Rassas’ and Mr. Dolezal’s total stock award of $1,146,281 and $2,292,561, respectively, as compensation for services for the six month period ended June 30, 2012.

During the six month period and three month period ended June 30, 2012 the Company issued 209,443 and 38,240 shares of the Company’s common stock, respectively, for consulting services. The shares were valued at the cost of the services provided.

On April 11, 2012, the Company issued 52,334 shares of the Company’s common stock in exchange for a convertible note of $25,000 and accrued interest of $1,167.

Under the terms of a Convertible Debenture agreement on June 12, 2012, as further detailed in Footnote 4, “Notes Payable,” the Company issued 10,000 shares of the Company’s common stock.

Warrants:

The balance of warrants outstanding for purchase of the Company’s common stock as of June 30, 2012 are as follows:

Name of Warrants	Common Share Issuable Upon Exercise of Warrants	Exercise Price of Warrants	Date Issued	Expiration Date
Warrants issued under a Unit Purchase Agreement	540,000	$0.50	5/18/2010	5/17/2013
Warrants issued under a Private Placement Memorandum	250,000	$1.00	4/26/2011	4/25/2014
Warrants issued under a Private Placement Memorandum	50,000	$1.00	4/27/2011	4/26/2014
Warrants issued under a Private Placement Memorandum	25,000	$1.00	4/28/2011	4/27/2014
Warrants issued under a Private Placement Memorandum	200,000	$1.00	5/3/2011	5/02/2014
Warrants issued for services	12,500	$0.50	3/23/2012	3/22/2013

During the six month period ended June 30, 2012 the Company issued 12,500 warrants exercisable for $.50 per share for the purchase of the Company’s common stock in exchange for services. The warrants were valued at $.50 per exercisable warrant.

Stock Options:

The balances of outstanding stock option for the Company’s stock as of June 30, 2012 are as follows:

275,000 stock options for the purchase of the Company’s common stock, to a former officer of the Company and 250,000 each to two former Senior Advisory Board Members of the Company. These options are exercisable at $.50 per share of common stock over a 10 year term expiring April 19, 2021.

On August 10, 2011 the Company granted 700,000 stock options to a current employee and three consultants to the Company. The option grant was effective as of July 19, 2011 with the options vesting over one year in quarterly increments commencing on October 17, 2011 and continuing each quarter from that date forward.  These warrants are exercisable at $.50 per share of common stock over a 10 year term.    

12. Significant Customer:

The Company generally sells through a limited number of large distributors. The Company invoices the distributors directly as opposed to the ultimate retail store. Consequently, the Company’s sales are to a small number of customers.

13. Business Combination:

On March 20, 2012 the Company entered into a share exchange agreement with Airware Holdings, Inc. (Airware) to exchange 21,844,136 of its newly-issued shares of common stock in exchange for 43,688,272 of the issued and outstanding shares and preferred stock of Airware, to exchange 1,065,000 Class A and B warrants of the Company for 2,130,000 Class A and B warrants of Airware and to exchange 1,475,000 Options to purchase the Company’s common stock , at $.50 per share for 2,950,000 Options to purchase Airware common shares at $.25 per share.

The Company has accounted for the business combination with Airware as the accounting acquirer and a recapitalization of Airware through a reverse merger. The net loss from Crown, the acquiree, from operations of $239,144 is included in the Company’s Statement of Operations for the six month period ending June 30, 2012.

The Company has recorded the assets of Crown the acquiree of $123 at book value, the estimated fair value and liabilities of $58,950 at their book value. The $58,950 consists of accounts payable to an entity controlled by a Crown shareholder. See Footnote 14, “Subsequent Events.”

14. Subsequent Events

On June 28, 2012 and effective August 29, 2012, the Company entered into a trade financing, guaranty and advance agreement that allows to Company to factor purchase orders and accounts receivable up to the total amount of $250,000 and $1,000,000, respectively. The Company will pay a fee equal to 4% for the first 30 days and 1.34% for every ten days thereafter against the face amount of each advance. As of September 14, 2012, the Company had received and repaid purchase order advances of $172,172. As of September 14, 2012, the Company had received and had outstanding accounts receivable advances of $544,922.

On July 26, 2012, the Company was named as a Defendant in a lawsuit alleging patent infringement. The Company believes the lawsuit is without merit and is seeking dismissal of the action.

On August 15, 2012 the Company executed an unsecured promissory note to a related party for $121,000 with a related party. The note is due together with any unpaid interest at a rate of 10% per month (120% per annum) on October 15, 2012. In addition, at the date of the note, the Company issued 10,000 shares of the Company’s common stock to the note holder.

On August 23, 2012 the Company entered into an agreement with its former President to modify an existing license agreement with Zorah LLC (“Zorah”), as further detailed in Footnote 1, “Summary of Significant Accounting Policies and Use of Estimates,”  from an exclusive license to a non-exclusive license. Among other requirements of the agreement, the former President agreed to surrender back to the Company 15,125,000 shares of the Company’s common stock.

In May and June of 2012, two shareholders of the Company provided loans to the Company totaling $40,000. In August 2012, the shareholders forgave the loans as well as the $58,950 due by the Company to an entity controlled by the shareholders.

End of Notes to Financials 

F-5

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following Management's Discussion and Analysis should be read in conjunction with Crown Dynamic’s financial statements and the related notes thereto. The Management's Discussion and Analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this Report on Form 10-Q. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Report on Form 10-Q.

The following discussion should be read in conjunction with our unaudited consolidated financial statements and related notes and other financial data included elsewhere in this report. See also the notes to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2011.

Critical Accounting Policies and Estimates

The discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with the Company’s Board of Directors, management has identified the following accounting policies that it believes are integral to understanding its financial statements. These are important accounting policies that require management’s most difficult, subjective judgments.

Discussion of Acquirer for Accounting Purposes

On March 20, 2012 Crown Dynamics Corp. (“Crown”) and AirWare Holdings, Inc. (“Airware”) executed a share exchange agreement (the “Exchange”) to effectively merge the two entities. Management originally believed that Crown was the accounting acquirer, but upon further review of the facts at the time of the merger and subsequent events, management now believes that based on the analysis under ASC 805-10-55-12 as detailed below that Airware is the accounting acquirer.

ASC 805-10-55-12 states in part that in business combination effected primarily by exchanging equity interest (as is the case in the instant combination) the acquirer usually is the entity that issues the equity interest. . However, in some business combinations, commonly called reverse acquisitions, the issuing entity is the acquiree. In our combination, Crown is the entity that issued the equity interest, pursuant to the Exchange.

ASC 805-10-55-12 further indicates that all pertinent facts and circumstances also shall be considered in identifying the acquirer in a business combination effected by or through an exchange of equity interest. Particularly those in ASC 805-10-55-12(a) through 12(e) and that additional facts and circumstances that may be pertinent should be considered as well as the relative size of the combining entities.

In the instant case, there are facts that would support either party as being the accounting acquirer; however a preponderance of the facts supports Airware as the acquirer. Specifically, as follows:

ASC 805-10-55 section 12(a) - The relative voting rights in the combined entity after the business combination.

The acquirer usually is the combining entity whose owners as a group retain or receive the largest portion of the voting rights of the combined entity. Here, the Exchange leaves the existing Crown shareholders with 22,725,000 shares and Airware shareholders with 21,844,136 shares before taking into account Airware’s options, warrants and convertible securities. There are no unusual voting arrangements. Airware options and warrants would add another 2,540,000 for Airware. In addition there are convertible notes that would result in issuance of another 6,022,500 shares for Airware. Since all of the warrants and options are “in the money” ultimately the Airware shareholders could have the controlling shares. If all of the options, warrants and notes converted Airware shareholders would have a total of 30,406,636 shares compared to Crown shareholders of 22,725,000.

ASC 805-10-55 section 12(b) - The existence of a large minority voting interest in the combined entity if no other owner or organized group of owners has a significant voting interest.

The acquirer usually is the combining entity whose owners or organized group of owners holds the largest minority voting interest in the combined entity.

The officers and Board members of Airware collectively, directly or indirectly, control 15,913,436 shares, when convertible notes are included. The holdings of this group exceed the largest holding of a single shareholder or group of Crown.

ASC 805-10-55 section 12(c) - The composition of the governing body of the combined entity.

The acquirer usually is the combining entity whose owners have the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity. At the time of Exchange, the Board of Directors was composed of three Board Members from the Crown group and three from the Airware group. Airware would have the ability to gain control of the Board as noted in 12(a) and 12(b) above.

ASC 805-10-55 section 12(d) - The composition of senior management of the combined entity.

The acquirer usually is the combining entity whose former management dominates the management of the combined entity. At the date of Exchange, the management consisted of Steve Aninye as CEO (Crown) and Jeffry Rassas, President (Airware). Steve Aninye resigned from both the Board and as an officer subsequent to the transaction.

ASC 805-10-55 section 12(e) - The terms of the exchange of equity interest.

The acquirer usually is the combining entity that pays a premium over the pre-combination fair value of the equity interest of the other combining entity. Crown paid a premium for the equity interest in Airware. Airware fair value at the time of the combination was equal to $.50 per share, taking into account the 2 - 1 exchange. Crown shares were publicly trading at that time for $2.40.

ASC 805-10-55-13 states that, “The acquirer usually is the combining entity whose relative size is significantly larger than that of the other combining entity.” Airware was the larger entity at the time of the transaction. Based upon this analysis, the preponderance of the facts noted above support management’s conclusion that Airware is the accounting acquirer.

Corporate Background

We were incorporated in Delaware on June 15, 2010 and are a development stage company. On July 15, 2010, we entered into an exclusive worldwide patent sale agreement (the "Patent Transfer and Sale Agreement ") with Illanit Appelfeld, (the “Seller”) in relation to a patented technology (U.S. Patent Number: 5,799,354) (the “Patent”) for a toothbrush having a handle and a brush head. The brush head comprises two sides with one central bristle of tufted bundles, each mounted to a respective separate base. The patent and technology were transferred to us in exchange of payment to Illanit Appelfeld (the Seller) of US $9,000 (Nine thousands United States Dollars), according to the terms and conditions specified in the Patent Transfer and Sale Agreement related to the U.S. Patent Number: 5,799,354.

Since 2010, we have migrated from dental technology to greater applications in home medical technology.  On January 20th, the company entered into a Technology License Agreement (the “Agreement”) with Zorah LLC (“Zorah”).  

Now, the Company has non-exclusive rights to Zorah’s Technology for development and distribution worldwide of Zorah’s technologies. These technologies include a wireless technology to remotely monitor senior citizens and special needs adults and the development of a transdermal blood sugar monitoring unit, which will allow people to take their blood sugar levels without pricking themselves.

On March 20, 2012, Crown Dynamics Corp., a Delaware Corporation (the "Company or CDYY"), executed a Share Exchange Agreement (the "Agreement") with Airware Holdings, Inc., a Nevada corporation (“AirWare”). Under the Terms of the Agreement, Crown would acquire Airware and their business for operating and accounting purposes.

.

Transfer Agent

We have engaged Nevada Agency and Trust as our stock transfer agent. Nevada Agency and Trust is located at 50 West Liberty Street, Reno, Nevada 89501. Their telephone number is (775) 322-0626 and their fax number is (775) 322-5623. The transfer agent is responsible for all record-keeping and administrative functions in connection with our issued and outstanding common stock.

Liquidity and Capital Resources

For the Six Months Ended June 30, 2012

During the six months ended June 30, 2012, net cash used in the Company’s operating activities totaled $334,075. Net cash used in investing activities during the six month period ended June 30, 2012 totaled $40,000. Net Cash provided from financing activities was $380,000 for the six month period ended June 30, 2012. For the six month period ended June 30, 2012, the Company’s cash balance decreased during the year by $5,925.

At June 30, 2012, the Company had cash of $14,111, accounts receivable of $25,000 and inventory of $22,393 that comprised the Company’s total current assets totaling $68,116. The Company’s property and equipment at June 30, 2012 had a net book value of $46,595. The Company also had intangible assets totaling $334,061 and security deposits of $2,400 at June 30, 2012, while the Company’s total assets at June 30, 2012 were $ 451,172.

At June 30, 2012, the Company had total current liabilities totaling $2,833,848 including $658,315 in convertible notes payable to related parties.

At June 30, 2012, the Company had total liabilities of $2,997,416. At the date of this filing the Company has released its new product line and has been successful in securing $1.2 million in purchase orders to date and anticipates a continued increase in sales of the new product. The Company anticipates that it will be able to handle its cash requirements through future sales as well as through future debt and equity funding.

RESULTS OF OPERATIONS

For the Six Months Ended June 30, 2012 versus June 30, 2011

Revenues and Gross Profit (Loss)

The Company’s had no induced note conversion expense for the three month ended June 30, 2012 as compared to a $439,771 expense for the three month period ended June 30, 2011. The number of convertible notes available for conversion has decreased for the 2012 period over the 2011 period. The company moved the location of its operations and reduced the amount of office space occupied during the six month period ended June 30, 2012. Consequently much of its office equipment and furniture was disposed of resulting in a loss on disposition of $64,238 compared to no loss for the three month period ended June 30, 2011.

The Company’s general and administrative expense for the six month ended June 30, 2012 was $2,560,353 compared to $404,368 for the six months ended June 30, 2011. The $2,155,985 increase in 2012 over the 2011 expense is primarily the result of stock compensation expense to Company officers of $1,638,369 and stock compensation to directors of $220,000. The Company’s interest expense for the six months ended June 30, 2012 was $114,398 compared to $381,393 for the six months ended June 30, 2011. The decrease in interest expense of $266,995 was primarily the result of the reduction in the amount of convertible notes payable from 2011 to 2012.

Going Concern Consideration

Our auditors have issued an opinion on our annual financial statements which includes a statement describing our going concern status. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills and meet our other financial obligations because we have not generated any revenues and no revenues are anticipated until we begin marketing the product. Accordingly, we must raise capital from sources other than the actual sale of the product. We must raise capital to implement our project and stay in business.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act").

Based on this evaluation, our principal executive and principal financial and accounting officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) were ineffective as of June 30, 2012.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes In Internal Control and Financial Reporting

Our management, including our chief executive officer and chief financial officer, has also evaluated our internal control over financial reporting. Based on management’s evaluation our internal control over financial reporting is currently ineffective as evidenced by our late and amended filings. We are currently reviewing and implementing improvements of the internal controls over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On November 7, 2011 Airware Holdings, Inc. was named as a defendant in a lawsuit alleging a default on a note payable of $50,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. The Company is working towards settling the litigation.

On December 27, 2011, Airware Holding, Inc. was named as a defendant in a lawsuit alleging a default on a two notes payable total $75,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. The Company is working towards settling the litigation.

On July 26, 2012 the Company was named as a Defendant alleging patent infringement. The Company believes the lawsuit is without merit and is seeking dismissal of the action.

Other than those stated above, we know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

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

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

1. Quarterly Issuances:

On June 12, 2012 the Company entered into a Subscription and Purchase Agreement to sell 10 Units of an Original Issue Discount Convertible Debenture for a total of $75,000. The Debentures are redeemable and were redeemed in September, 2012 for $79,500. Each unit purchased entitled the holder to 1,000 shares, for a total of 10,000 shares of the Company’s common stock. The 10,000 shares have been issued.

On April 11, 2012 the Company issued 52,334 shares of the Company’s common stock in exchange for the payment of a $25,000 convertible note and $1,167 of accrued interest.

During the 3 months ended June 30, 2012 the company issued 38,140 shares of the Company’s commons stock in exchange for services.

2. Subsequent Issuances:

None.

  ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

N/A

ITEM 5. OTHER INFORMATION

1. Quarterly Events

On May 8, 2012, the Company received a Note Receivable from its Chief Executive Officer, Mr. Rassas, for $21,522 in exchange for periodic cash advances made to Mr. Rassas from December 2011 through March 2012. The note is due on May 7, 2015 with interest accrued at 2% per annum. Accrued interest included in the note on May 8, 2012 of $100 is included in the note receivable balance of $21,522. The portion of the note and accrued interest receivable that reflects advances made as of December 31, 2011 and 2010 have been reflected as notes receivable on the Company’s Balance Sheets as of those dates of $3,823 and $0, respectively. Subsequent to receipt of the note, the Note Receivable was deducted from accrued payroll due to the Officer; thus, repaying the Note Receivable in full.

On May 8, 2012, the Company received a Note Receivable from its President, Mr. Dolezal, for $131,202 in exchange for periodic cash advances made to Mr. Dolezal from December 2009 through March 2012. The note is due on May 7, 2015 with interest accrued at 2% per annum. Accrued interest included in the note on May 8, 2012 of $2,973 is included in the note receivable balance of $131,201. The portion of the note and accrued interest receivable that reflects advances made as of December 31, 2011 and 2010 have been reflected as notes receivable on the Company’s Balance Sheets as of those dates of $110,737 and $0, respectively. Subsequent to receipt of the note, the Note Receivable was deducted against a note payable to the Officer; thus, repaying the Note Receivable in full.

On May 10, 2012, the Company approved a resolution to enter into an Advisory and Consulting Agreement with Anderson Feldman LLC for consulting services for the corporation and that 20,000 shares of restricted common stock be issued as payment pursuant to the Consulting Agreement. Andersen Feldman, LLC shall act as the Company’s Advisor and Consultant in providing certain advisory services related to Company’s development of a private placement, financial forecast, business plan, strategic planning regarding, including but not limited to, capital strategies, strategies with regard to strategic alliances and/or mergers/acquisitions and possible divestitures or sales, and facilitating introductions to financial institutions and accredited investors

On May 10, 2012, the Company approved a resolution that the Company may issue shares of restricted stock in a capital raising effort under Rule 506 of Regulation D, wherein, the amount raised may not to exceed $5,000,000, and the time of the offering may not exceed 12 months. The corporation may take any steps necessary to begin the capital raising process described.

2. Subsequent Events

On June 8, 2012, the Company approved a resolution to enter into an Advisory and Consulting Agreement with Perigon Companies, LLC for consulting services for the corporation and to issue 500,000 shares of restricted Common Stock to Perigon Companies, LLC as payment pursuant to the approved consulting agreement. Perigon Companies, LLC will utilize its extensive experience in small business consultation and their background in consumer product industries to provide assistance and the introduction of industry contacts to Company Management as it develops the Company’s business strategies. Such services will include 1) assisting in preparing updated business plans, executive summaries and company presentation materials based on current market conditions and trends, 2) consulting with management and their advisors to formulate comprehensive business development strategies focused on rapidly monetizing intellectual property and other company capital, 3) providing expertise and guidance to management and its other, outside consultants regarding public relations and investor communication strategies, 4) introducing qualified candidates for key positions, including legal counsel, marketing, accounting, customer service, and public or investor relations, if and as needed, and 5) making personnel available to assist management in performing other various tasks.

On July 23, 2012, the Company approved a resolution that the Nevada Agency and Transfer Company be authorized by the Board of Directors to cancel and return to treasury 9,000,000 post-split shares of the Company’s Common Stock held by Chana Zehavi and Amir Rehavi, respectively represented by certificate number 001 and 0100.

On August 1, 2012, the Company approved a resolution that the Nevada Agency and Transfer Company be authorized by the Board of Directors to cancel and return to treasury 6,125,000 post-split shares of the Company’s Common Stock held by Steve Aninye and Zorah, LLC, which were undeliverable and held by custodian, respectively represented by certificate number 0155 and 0156. These shares are also to be cancelled pursuant to the Share Exchange Agreement dated March 20, 2012.

On August 16, 2012, the Company resolved that The Corporation may enter into a Non-Exclusive Licensing Agreement with Zorah Technology, a limited liability company, with offices at 5400 Laurel Springs Pkwy, Suite 107, Suwanee, GA 30024, for non-exclusive rights to Zorah's technology for development and distribution worldwide of Zorah's technologies which include a wireless technology to remotely monitor senior citizens and special needs adults, as well as the development of a transdermal blood sugar monitoring unit, which will allow people to take their blood sugar levels without pricking themselves. This Non-Exclusive License Agreement is meant to modify the existing license agreement originally entered into on January 20, 2012. Restricted shares of common stock of the Corporation may be issued pursuant to the Non-Exclusive Licensing Agreement as payment for license.

On August 16, 2012, the Company resolved that restricted shares of 10,000 shares of restricted common stock of the Corporation be issued pursuant to the Subscription and Purchase Agreement dated June 12, 2012 to Gary Berlin.

On August 30, 2012, the Company resolved that the Company be authorized to change the name of the Company to Airware Labs Corp. on the close of business on August 30, 2012, that the Secretary of the Corporation be instructed to forward a copy of the resolution notifying the Transfer Agent of the name change, and that Nevada Agency and Transfer Company, as the Corporation’s Transfer Agent, act in accordance with its general practice and regulation for the transfer and registration of stock and the disbursing of dividends.

ITEM 6. EXHIBITS

Exhibit Number	Description of Exhibit	Filing
3.01	Articles of Incorporation	Filed on Form S-1 on August 22, 2011
3.02	Bylaws	Filed on Form S-1 on August 22, 2011
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14	Filed Herewith
31.02	Certification of Principal Financial Officer Pursuant to Rule 13a-14	Filed Herewith
32.01	CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed Herewith
32.02	CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed Herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CROWN DYNAMICS CORP.

Dated:  October 25, 2012

/s/ Jeffrey Rassas

By: Jeffrey Rassas

Its: CEO

Dated:  October 25, 2012

/s/ John Glassgow

By: John Glassgow

Its: CFO

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Company and in the capacities and on the dates indicated.

Dated:  October 25, 2012

/s/Jeffrey Rassas

By: Jeffrey Rassas

Its: Director

Dated:  October 25, 2012

/s/ David Dolezal

By: David Dolezal

Its: Director

Dated:  October 25, 2012

/s/ Ron Miller, Jr.

By: Ron Miller, Jr.

Its: Director

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Commitments and Contingencies - Commitment for rental of space (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies
Annual Rent	$ 12,000	$ 16,800

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Notes Payable - Notes payable (Details) (USD $)	Sep. 12, 2012	Jun. 30, 2012	Mar. 08, 2012	Apr. 04, 2011
Other Liabilities Disclosure [Abstract]
Notes payable, amount			$ 37,500	$ 25,000
Notes payable, interest payments			2000.00%	700.00%
Convertible debenture, amount	64,900
Convertible debenture, percent	2400.00%
Convertible debenture, original issue	75,000
Convertible debenture, redeemable	79,500
Convertible debenture, unamortized debt discount	10,100
Total notes payable		$ 127,400

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Notes Payable to Related Party (Tables)

3 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Notes payable to party

3.00% note payable, due March 2021, interest due at maturity, unsecured  $47,520

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Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Feb. 29, 2012	Jun. 30, 2012	Jun. 12, 2012	Apr. 11, 2012	Mar. 20, 2012	Mar. 19, 2012	Dec. 01, 2011	Aug. 10, 2011
Common Stock
Issued shares to effect business combination with Airwave						21,844,136
CEO and President annual compensation								$ 150,000
Per share options for CEO and President to purchase Company Common Stock								$ 0.05
Options exercisable by CEO and President term								10 years
CEO total options of Airwave common stock								4,585,122
President total options of Airwave common stock								9,170,244
Options vested per each subsequent three month period thereafter		25.00%
Immediate issuance of common stock to CEO							2,292,561
Immediate issuance of common stock to President							4,585,122
Stock value issued per share							$ 0.05
Value of stock issued to CEO							1,146,281
Value of stock issued to President							2,292,561
Recognized compensation of CEO			855,013
Recognized compensation of President			783,356
Total stock award to CEO			1,146,281
Total stock award to President			2,292,561
Issued shares for consulting services	38,240		209,443
Shares of common stock issued in exchange for convertible note					52,334
Value of convertible note exchanged for common stock					25,000
Accrued interest of convertible note					$ 1,167
Common stock issued under terms of Convertible Debenture agreement				10,000
Warrants
Issued warrants exercisable			12,500
Warrants exercisable per share			$ 0.50
Value of warrants, per exercisable warrant			$ 0.50
Stock Options
Stock options for purchase of common stock to former officer	275,000		275,000
Stock options for purchase of common stock by two former Senior Advisory Board Members	250,000		250,000
Stock options for former officer and SABM exercisable, per share	$ 0.50		$ 0.50
Stock options for former officer and SABM term	10 years		10 years
Stock options to current employee and three consultants									700,000
Warrants to current employee and three consultants exercisable, per share									$ 0.50
Warrants to current employee and three consultants exercisable, term									10 years

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Convertible Notes Payable to Related Parties - Convertible notes payable to related parties (Details) (USD $)	Mar. 15, 2014	May 02, 2013	Aug. 26, 2012	Jun. 30, 2012
Debt Disclosure [Abstract]
Dynamics Corp. common stock				$ 493,315
Dynamics Corp. common stock per share				$ 0.10
Note payable to related parties	5,000	145,000	20,000
Note payable to related parties, interest	800.00%	650.00%	800.00%
Convertible common stock per share	$ 0.50	$ 2.00	$ 0.50
Total convertible notes payable to related parties				663,315
Less current portion				(658,315)
Total convertible notes payable to related parties, less current portion				$ 5,000

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Notes Payable

3 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Notes Payable

4. Notes Payable

Notes payable consists of the following:

20.00% notes payable, due March 8, 2012, interest payable at maturity, unsecured	$37,500
7.00% note payable due April 4, 2011, interest payments are due annually, unsecured	25,000
24% convertible debenture due September 12, 2012, original issue of $75,000 and redeemable at $79,500 net of unamortized debt discount of $10,100	64,900
	$127,400

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Business Combination (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012	Mar. 20, 2012
Exchange Agreement
Newly-issued shares of common stock		21,844,136
Shares exchanged for newly-issued stock		43,688,272
Class A and B warrants exchanged		1,065,000
Class A and B warrants		2,130,000
Options exchanged		1,475,000
Common stock exchanged for options, per share		$ 0.50
Options to purchase Airwave common shares		2,950,000
Airwave common shares, per share		$ 0.25
Business Combination
Net loss from Crown, from operations	$ 239,144
Assets of Crown, book value		123
Fair value and liabilities, book value		58,950
Accounts payable to an entity controlled by Crown shareholder		$ 58,950

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Summary of Significant Accounting Policies and Use of Estimates (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Mar. 20, 2012	Dec. 31, 2011
Basis of Presentation and Organization
Shares of newly-issued common stock			21,844,136
Par value of Airwave stock, per share			$ 0.001
Adjusment to par value of Airwave, per share			$ 0.0001
Par value difference charged to paid-in capital	$ 9,285,961		$ 39,319	$ 7,106,199
Total shares outstanding				25,670,000
Common and converted preferred stock to common stock				12,835,250
Pre-merger outstanding shares of Crown	17,725,000
Par value of pre-merger stock of Crown	1,772
Increased losses for the period	239,144
Intangible Assets
Amortization expense	8,598	8,064
Earnings per Share
Shares issuable upon conversion of notes payable	3,202,500
Additional convertible shares upon default on note	5,000,000
Conversion price of shares upon default, per share	$ 0.10
Advertising costs	$ 0	$ 0

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Stockholders' Equity (Tables)

3 Months Ended

Jun. 30, 2012

Equity [Abstract]

Balance of warrants outstanding

Name of Warrants	Common Share Issuable Upon Exercise of Warrants	Exercise Price of Warrants	Date Issued	Expiration Date
Warrants issued under a Unit Purchase Agreement	540,000	$0.50	5/18/2010	5/17/2013
Warrants issued under a Private Placement Memorandum	250,000	$1.00	4/26/2011	4/25/2014
Warrants issued under a Private Placement Memorandum	50,000	$1.00	4/27/2011	4/26/2014
Warrants issued under a Private Placement Memorandum	25,000	$1.00	4/28/2011	4/27/2014
Warrants issued under a Private Placement Memorandum	200,000	$1.00	5/3/2011	5/02/2014
Warrants issued for services	12,500	$0.50	3/23/2012	3/22/2013

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Subsequent Events (Details Narrative) (USD $)	0 Months Ended	1 Months Ended	2 Months Ended
	Oct. 07, 2012	Sep. 28, 2012	Oct. 15, 2012	Sep. 14, 2012	Aug. 31, 2012	Aug. 29, 2012	Aug. 23, 2012	Aug. 15, 2012	Jun. 30, 2012	May 31, 2012
Subsequent Events [Abstract]
Company purchase orders						$ 250,000
Company accounts receivable						1,000,000
Fee against face amount of each advance	4.00%	4.00%
Received and repaid purchase order advances				172,172
Outstanding accounts receivable advances				544,922
Unsecured promissory note to a related party								121,000
Note, unpaid interest rate			10.00%
Issued shares of common stock to note holder								10,000
Shares of common stock surrendered by President							15,125,000
Company provided loans									40,000	40,000
Amount forgiven by company to an entity controlled by shareholders					$ 58,950				$ 40,000	$ 40,000

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Accounting Errors Corrections - Balance Sheet as of December 31, 2011 (Details) (USD $)	Jun. 30, 2012	Mar. 20, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalent	$ 14,111		$ 8,186
Accounts receivable			6,814
Inventory	22,393		2,027
Prepaid expenses	6,612		5,000
Total current assets	68,116		22,027
Other Assets:
Property and equipmnet, net	46,595		123,679
Intangible assets, net	334,061		351,134
Notes receivable - related party			218,344
Security deposits	2,400		12,303
Total Assets	451,172		727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable	1,370,396		1,115,247
Accrued interest	43,694		17,888
Accrued expenses	179,043		109,305
Notes payable to related parties			25,000
Convertible notes payable - Current Portions	415,000		410,000
Convertible notes payable to related parties - current portion, net of discount	658,315		523,480
Total current liabilities	2,833,848		2,200,920
Accrued interest to related parties	11,048		10,235
Notes payable to related party	47,520		275,694
Convertible notes payable to related parties, less current portion	5,000		145,000
Total liabilities	2,997,416		2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, repectively	3,977		1,284
Additional paid-in capital	9,285,961	39,319	7,106,199
Accumulated deficit	(11,836,182)		(9,011,845)
Total stockholders' (deficit)	(2,546,244)		(1,904,362)
Total Liabilities and Stockholders' (Deficit)	451,172		727,487
As Originally Reported
ASSETS
Cash and cash equivalent
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Other Assets:
Property and equipmnet, net
Intangible assets, net
Notes receivable - related party
Security deposits
Total Assets
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable			5,000
Accrued interest
Accrued expenses
Notes payable to related parties
Convertible notes payable - Current Portions
Convertible notes payable to related parties - current portion, net of discount
Total current liabilities			5,000
Accrued interest to related parties
Notes payable to related party
Convertible notes payable to related parties, less current portion
Total liabilities			5,000
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, repectively			1,650
Discount on common stock			(600)
Additional paid-in capital			54,250
Accumulated deficit			(60,300)
Total stockholders' (deficit)			(5,000)
Total Liabilities and Stockholders' (Deficit)
As Restated
ASSETS
Cash and cash equivalent			8,186
Accounts receivable			6,814
Inventory			2,027
Prepaid expenses			5,000
Total current assets			22,027
Other Assets:
Property and equipmnet, net			123,679
Intangible assets, net			351,134
Notes receivable - related party			218,344
Security deposits			12,303
Total Assets			727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable			1,110,247
Accrued interest			17,888
Accrued expenses			109,305
Notes payable to related parties			25,000
Convertible notes payable - Current Portions			410,000
Convertible notes payable to related parties - current portion, net of discount			523,480
Total current liabilities			2,195,920
Accrued interest to related parties			10,235
Notes payable to related party			275,694
Convertible notes payable to related parties, less current portion			145,000
Total liabilities			2,626,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, repectively			(366)
Discount on common stock			600
Additional paid-in capital			7,051,949
Accumulated deficit			(9,011,845)
Total stockholders' (deficit)			(1,959,662)
Total Liabilities and Stockholders' (Deficit)			667,187
Restatement Adjustment [Member]
ASSETS
Cash and cash equivalent			8,186
Accounts receivable			6,814
Inventory			2,027
Prepaid expenses			5,000
Total current assets			22,027
Other Assets:
Property and equipmnet, net			123,679
Intangible assets, net			351,134
Notes receivable - related party			218,344
Security deposits			12,303
Total Assets			727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable			1,115,247
Accrued interest			17,888
Accrued expenses			109,305
Notes payable to related parties			25,000
Convertible notes payable - Current Portions			410,000
Convertible notes payable to related parties - current portion, net of discount			523,480
Total current liabilities			2,200,920
Accrued interest to related parties			10,235
Notes payable to related party			275,694
Convertible notes payable to related parties, less current portion			145,000
Total liabilities			2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, repectively			1,284
Discount on common stock
Additional paid-in capital			7,106,199
Accumulated deficit			(9,011,845)
Total stockholders' (deficit)			(1,904,362)
Total Liabilities and Stockholders' (Deficit)			$ 727,487

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Accounting Errors Corrections - Statement of Operations for the 6 months ended June 30, 2012 (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues, net	$ 909	$ 60,113	$ 14,697	$ 82,822
Cost of products sold	6,958	71,115	12,344	77,192
Revenues	(6,049)	(11,002)	2,353	5,630
Operating expenses:
Sales and Marketing	35,713	113,995	89,812	162,581
Total expenses	429,480	382,425	2,650,165	566,949
(Loss) from Operations	(435,529)	(393,427)	(2,647,812)	(561,319)
Other income (expense)
Interest income	2,007	838	2,661	1,629
Interest expense	(55,941)	(31,447)	(114,398)	(381,393)
Loss of disposition of property and equipment	(64,238)		(64,238)
Other expense	(550)		(550)	(18,671)
Total other income (expense)	(118,722)	(468,983)	(176,525)	(807,362)
Loss before income taxes	(554,251)	(862,410)	(2,824,337)	(1,368,681)
Income tax expense
Net (Loss)	(554,251)	(862,410)	(2,824,337)	(1,368,681)
Basic and diluted net loss per common share	$ (0.01)	$ (0.08)	$ (0.10)	$ (0.14)
Basic and diluted weighted average common shares outstanding	39,769,609	10,495,003	28,228,327	9,534,834
Operating Segments [Member]
Revenues, net			14,697
Cost of products sold			12,344
Revenues			2,353
Operating expenses:
General and Administrative			2,312,610
Sales and Marketing			89,812
Total expenses			2,402,422
(Loss) from Operations			(2,400,069)
Other income (expense)
Interest income			2,661
Interest expense			(114,398)
Loss of disposition of property and equipment			(64,238)
Other expense			(550)
Total other income (expense)			(176,525)
Loss before income taxes			(2,576,594)
Income tax expense
Net (Loss)			(2,576,594)
Basic and diluted net loss per common share			$ (0.09)
Basic and diluted weighted average common shares outstanding			28,228,327
As Restated
Revenues, net
Cost of products sold
Revenues
Operating expenses:
General and Administrative			247,743
Sales and Marketing
Total expenses			247,743
(Loss) from Operations			(247,743)
Other income (expense)
Interest income
Interest expense
Loss of disposition of property and equipment
Other expense
Total other income (expense)
Loss before income taxes			(247,743)
Income tax expense
Net (Loss)			(247,743)
Basic and diluted net loss per common share			$ (0.01)
Basic and diluted weighted average common shares outstanding
Restatement Adjustment [Member]
Revenues, net			14,697
Cost of products sold			12,344
Revenues			2,353
Operating expenses:
General and Administrative			2,560,353
Sales and Marketing			89,812
Total expenses			2,650,165
(Loss) from Operations			(2,647,812)
Other income (expense)
Interest income			2,661
Interest expense			(114,398)
Loss of disposition of property and equipment			(64,238)
Other expense			(550)
Total other income (expense)			(176,525)
Loss before income taxes			(2,824,337)
Income tax expense
Net (Loss)			$ (2,824,337)
Basic and diluted net loss per common share			$ (0.10)
Basic and diluted weighted average common shares outstanding			28,228,327

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Accounting Errors Corrections

3 Months Ended

Jun. 30, 2012

Accounting Changes and Error Corrections [Abstract]

Accounting Errors Corrections

The Company’s financial statements included in the previously issued Form 10-Q for the quarterly period ended June 30, 2012 have been restated to correct for the following errors.

In the previous filings, the statements were prepared with management’s conclusion that the reverse capitalization merger, further detailed in Footnote 1, “Summary of Significant Accounting Policies and Use of Estimates,” that Crown Dynamics Corp. was the accounting acquirer. Upon further examination management concluded that its original conclusion was incorrect and that Airware Holdings, Inc. was the accounting acquirer. Accordingly, the financial statements have been restated to reflect the correction of this error. The change to the each item within the financial statements is detailed below in a comparison of the previously issued statements to those restated:

BALANCE SHEET
AS OF  DECEMBER 31, 2011
	As Originally		As
	Reported	Error	Restated
ASSETS
Current Assets:
Cash and cash equivalent	$              -	$      8,186	$      8,186
Accounts receivable	-	6,814	6,814
Inventory	-	2,027	2,027
Prepaid expenses	-	5,000	5,000
Total current assets	-	22,027	22,027
Other Assets:
Property and equipment, net	-	123,679	123,679
Intangible assets, net	-	351,134	351,134
Notes receivable - related party	-	218,344	218,344
Security deposits	-	12,303	12,303
Total Assets	$              -	$  727,487	$  727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable	$      5,000	$1,110,247	$1,115,247
Accrued interest	-	17,888	17,888
Accrued expenses	-	109,305	109,305
Notes payable to related parties	-	25,000	25,000
Convertible notes payable - current portion	-	410,000	410,000
Convertible notes payable to related parties - current portion, net of discount	-	523,480	523,480
Total current liabilities	5,000	2,195,920	2,200,920
Accrued interest to related parties	-	10,235	10,235
Notes payable to related party	-	275,694	275,694
Convertible notes payable to related parties, less current portion	-	145,000	145,000
Total liabilities	5,000	2,626,849	2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 12,835,250 shares issued and outstanding at December 31, 2011	1,650	(366)	1,284
Discount on common stock	(600)	600	-
Additional paid-in capital	54,250	7,051,949	7,106,199
Accumulated deficit	(60,300)	(9,011,845)	(9,011,845)
Total stockholders' (deficit)	(5,000)	(1,959,662)	(1,904,362)
Total Liabilities and Stockholders' (Deficit)	$              -	$  667,187	$  727,487

In the previous filing, general and administrative expenses of $2,312,610 were reported for the 6 month period ended June 30, 2012. The previous filing failed to include the general administrative expenses of Crown the acquiree of $247,743 for the six month period ended June 30, 2012. The revised total of the general and administrative expenses for the 6 months ended June 30, 2012 is $2,560,353. 

STATEMENT OF OPERATIONS
AS OF  DECEMBER 31, 2011	As Originally		As
	Reported	Error	Restated
Revenues, net	$      14,697	$             -	$      14,697
Cost of products sold	12,344	-	12,344
	2,353	-	2,353
Operating expenses
General and Administrative	2,312,610	247,743	2,560,353
Sales and Marketing	89,812	-	89,812
Total expenses	2,402,422	247,743	2,650,165
(Loss) from Operations	(2,400,069)	(247,743)	(2,647,812)
Other income (expense)
Interest income	2,661	-	2,661
Interest expense	(114,398)	-	(114,398)
Loss on disposition of property and equipment	(64,238)	-	(64,238)
Other expense	(550)	-	(550)
Total other income (expense)	(176,525)	-	(176,525)
Loss before income  taxes	(2,576,594)	(247,743)	(2,824,337)
Income tax expense	-	-	-
Net (Loss)	$(2,576,594)	$(247,743)	$(2,824,337)
Basic and diluted net loss per common share	$        (0.09)	$     (0.01)	$        (0.10)
Basic and diluted weighted average common
shares outstanding	28,228,327	-	28,228,327

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Accounting Errors Corrections (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Accounting Changes and Error Corrections [Abstract]
General and administrative expenses	$ 393,767	$ 268,430	$ 2,560,353	$ 404,368
General administrative expenses of Crown the acquiree			247,743
Revised general and administrative expenses			$ 2,560,353

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Commitments and Contingencies (Details Narrative) (USD $)	Jun. 08, 2012	Dec. 27, 2011	Dec. 22, 2011	Nov. 07, 2011	Aug. 10, 2011
Commitments and Contingencies
Granted stock options					700,000
Exercisable warrants per share					$ 0.50
Term of exercisable warrants					10 years
Note payable defaulted				$ 50,000
Amount of total products purchased by distributor			15.00%
Two notes payable defaulted		$ 75,000
Lease of new Company office	12 months

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BALANCE SHEET (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalent	$ 14,111	$ 8,186
Accounts receivable		6,814
Deposits	25,000
Prepaid expenses	6,612	5,000
Inventory	22,393	2,027
Total current assets	68,116	22,027
Other Assets:
Property and equipmnet, net	46,595	123,679
Intangible assets, net	334,061	351,134
Notes receivable - related party		218,344
Security deposits	2,400	12,303
Total Assets	451,172	727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable	1,370,396	1,115,247
Accrued interest	43,694	17,888
Accrued expenses	179,043	109,305
Notes payable	127,400
Notes payable to related parties		25,000
Loans payable to shareholders	40,000
Convertible notes payable - Current Portions	415,000	410,000
Convertible notes payable to related parties - current portion, net of discount	658,315	523,480
Total current liabilities	2,833,848	2,200,920
Accrued interest to related parties	11,048	10,235
Notes payable to related party	47,520	275,694
Convertible notes payable - less current portion	100,000
Convertible notes payable to related parties, less current portion	5,000	145,000
Total liabilities	2,997,416	2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 39,769,609 and 12,835,250 shares issued and outstanding at June 30, 2012 and December 31, 2011, repectively	3,977	1,284
Additional paid-in capital	9,285,961	7,106,199
Accumulated deficit	(11,836,182)	(9,011,845)
Total stockholders' (deficit)	(2,546,244)	(1,904,362)
Total Liabilities and Stockholders' (Deficit)	$ 451,172	$ 727,487

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Summary of Significant Accounting Policies and Use of Estimates

3 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Use of Estimates

1. Summary of Significant Accounting Policies and Use of Estimates

Basis of Presentation and Organization

Crown Dynamics Corp. (“Crown Dynamics,” Crown or the “Company”) is a Delaware corporation. The Company was incorporated under the laws of the State of Delaware on June 15, 2010.

On March 20, 2012, through an equity exchange agreement, the Company acquired all of the issued and outstanding stock of Airware Holdings, Inc., a Nevada corporation (“Airware”), in exchange for 21,844,136 shares of the Company’s newly-issued common stock. Airware was formed in February 2010 and is a non-prescription medical products company. The principal business purpose of the Company is to develop, manufacture and distribute nasal breathing devices. The Company targets prospective customers such as compassionate sleeping partners, individuals with allergies and athletic enthusiasts throughout the United States and the United Kingdom.

The share exchange has been accounted for as a recapitalization reverse merger between Airware Holdings, Inc. and Crown Dynamics, Corp. Airware is the accounting acquirer and Crown is the accounting acquiree. Consequently, the historical pre-merger financial statements of Airware are now those of the Company. The par value of the stock of Airware of $.001 per share has been adjusted to that of the Company of $.0001 per share with the par value difference of $39,319 charged to paid-in capital. The pre-merger deficit is that of Airware. Crown’s pre-merger accumulated deficit has been charged to paid-in capital. The pre-merger Airware outstanding shares have been adjusted to reflect the exchange, thus reducing the number of outstanding shares at December 31, 2011 from 25,670,000 total shares outstanding, including common and convertible preferred stock, to 12,835,250 shares of common stock. The pre-merger outstanding shares of Crown of 17,725,000 with a par value of $1,772 have been included in the issued and outstanding shares of the Company at June 30, 2012.

The Company has included the eleven days of Crown the acquiree operations within its Statement of Operations and Statement of Cash Flows for the six month period ending June 30, 2012. The Company’s losses for the period were increased by $239,144 as a result of including Crown the acquiree’s operating results for the eleven days. The Company’s cash flow was unchanged as a result of including Crown the acquiree’s cash flows for the eleven days.

Unaudited Interim Financial Statements

The interim financial statements of the Company as of June 30, 2012 and 2011, and for the periods then ended, are unaudited. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2012 and 2011 and the results of its operations and its cash flows for the periods then ended. These results are not necessarily indicative of the results expected for the calendar year ending December 31, 2012. The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States (U.S. “GAAP”).

Inventory

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts.

Property and Equipment

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts. 

The estimated useful lives of property and equipment are:

· Manufacturing equipment 3 years

· Office furniture and equipment     5-7 years

Intangible Assets

Intangible assets consist of patent and intellectual property and are amortized over the period that the Company believes best reflects the period in which the economic benefits will be consumed. The Company evaluates intangible assets with definite lives for recoverability when events or circumstances indicate that these assets might be impaired. The Company tests those assets for impairment by comparing their respective carrying values to estimates of the sum of the undiscounted future net cash flows expected to result from the assets. If the carrying amount of an asset exceeds the sum of the undiscounted net cash flows expected from that asset, the Company recognizes an impairment loss based on the amount by which the carrying value exceeds the fair value of the asset. Amortization expense for the six month period ended June 30, 2012 and 2011 amounted to $8,598 and $8,064 respectively, and is included in general and administrative expenses on the statement of operations.

Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses an estimate of the related undiscounted cash flows, excluding interest, over the remaining life of the property and equipment or other long-lived asset in assessing its recoverability. Impairment losses are recognized for the amount by which the carrying amount of the asset(s) exceeds the fair value of the asset(s). The Company primarily employs two methodologies for determining the fair value of a long-lived asset: (i) the amount at which the asset could be bought or sold in a current transaction between willing parties; or (ii) the present value of expected future cash flows grouped at the lowest level for which there are identifiable independent cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Revenue Recognition.

The Company recognizes revenue on the sale of products at the time of delivery and acceptance. Delivery is generally FOB shipping point. At the time of delivery, the following have occurred:

· Delivery has been evidenced by the appropriate signature on the delivery ticket;

· A price per unit has been determined; and

· Collectability has been reasonably assured.

Revenues are recorded net of slotting payments and co-operative advertising costs when applicable.

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, certain current maturities of long-term debt and accrued liabilities approximate fair value because of their short maturities or for long term debt based on borrowing rates currently available to the Company for loans with similar terms and maturities.

Long-term receivables with related parties are carried at an approximate fair value based on rates available to Company for risk free investments.

Earnings per Share

Basic earnings per share does not include dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Dilutive securities are not included in the weighted average number of shares when inclusion would be anti-dilutive. Due to the net losses for the periods ended June 30, 2012 and 2011, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.

As of June 30, 2012 there were 3,202,500 shares issuable upon conversion of notes payable, exercise of warrants and options that were not included in the earnings per share calculation as they were anti-dilutive. There is an additional convertible note that has a provision to convert to 5,000,000 shares upon default on the note at $.10 per share.

Shipping and Handling

Shipping and handling costs associated with the shipment of products to the customer are recorded as costs of revenue.

Advertising Costs

Costs associated with producing, communicating and advertising are capitalized and expensed when first viewed by the public.  There no cost capitalized or expensed for the periods ending June 30, 2012 and 2011 respectively. Advertising expense is included in selling and marketing expenses on the accompanying statements of operations.

Recent Accounting Pronouncements:

In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRSs")." Under ASU 2011-04, the guidance amends certain accounting and disclosure requirements related to fair value measurements to ensure that fair value has the same meaning in U.S. GAAP and in IFRS and that their respective fair value measurement and disclosure requirements are the same. ASU 2011-04 is effective for public entities during interim and annual periods beginning after December 15, 2011. The Company has adopted the requirements of this ASU.

There were various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries. None of the updates are expected to a have a material impact on the Company's financial position, results of operations or cash flows

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Convertible Notes Payable - Convertible notes payable (Details) (USD $)	1 Months Ended	19 Months Ended
	Oct. 19, 2011	Mar. 19, 2014	Jun. 30, 2012	Nov. 26, 2011	Aug. 31, 2010
Notes to Financial Statements
Notes payable, due dates ranging	$ 10,000	$ 405,000
Notes payable, due dates ranging interest payments	650.00%	800.00%
Convertible common stock per share, due dates ranging	$ 1.00	$ 0.50
Notes payable, due date				50,000	50,000
Notes payable, due date interest payment				650.00%	650.00%
Convertible common stock per share, due date				$ 2.00	$ 10.00
Total convertible notes payable			515,000
Less current portion			(415,000)
Total convertible notes payable, less current portion			$ 100,000

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Notes Payable (Tables)

3 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Notes payable

20.00% notes payable, due March 8, 2012, interest payable at maturity, unsecured	$37,500
7.00% note payable due April 4, 2011, interest payments are due annually, unsecured	25,000
24% convertible debenture due September 12, 2012, original issue of $75,000 and redeemable at $79,500 net of unamortized debt discount of $10,100	64,900
	$127,400

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Notes Payable to Related Party - Notes payable to party (Details) (USD $)	Mar. 31, 2021
Related Party Transactions [Abstract]
Note payable to related party	$ 47,520
Note payable to related party, interest	300.00%

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Convertible Notes Payable (Tables)

3 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Convertible notes payable

8.00% notes payable, due dates ranging from August 22, 2012 to March 19,2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	$ 405,000
6.50% note payable, due dates ranging from September 20, 2011 to October 19, 2011, convertible to common stock at $1.00 per share, interest payments are due annually, unsecured	10,000
6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured	50,000
6.50% note payable, due date August 31, 2010, convertible to common stock at $10.00 per share, interest payments are due annually, unsecured	$50,000
	515,000
Less current portion	(415,000)
	100,000

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Going Concern

3 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

2. Going Concern:

The Company has incurred losses since inception and requires additional funds for future operating activities. The Company selling activity has not yet reached a level of revenue sufficient to fund its operating activities. These factors create an uncertainty as to how the Company will fund its operations and maintain sufficient cash flow to operate as a going concern.

In response to these financial difficulties, management is continuing to pursue financing from various sources, including private placements from investors and institutions. In addition, the Company has introduced an expanded product line and has had positive response to the product from a number of large potential customers. Management believes these efforts will contribute toward funding the Company’s activities until sufficient revenue can be earned from future operations. Management believes these combined efforts, if successful, will be sufficient to meet its working capital needs and its currently anticipated expenditure levels for the next year.

The Company’s ability to meet its cash requirements in the next year is dependent upon obtaining this financing and achieving improved sales level. If this is not achieved, the Company may be unable to obtain sufficient cash flow to fund its operations and obligations, and therefore, may be unable to continue as a going concern. The accompanying financial statements have been prepared on a going concern basis, and accordingly, do not include any adjustments relating to the recoverability and classification of recorded asset amounts; nor do they include adjustments to the amounts and classification of liabilities that might be necessary should the Company be unable to continue operations or be required to sell its assets.

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BALANCE SHEET (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Stockholders' (Deficit):
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	39,769,609	12,835,250
Common stock, shares outstanding	39,769,609	12,835,250

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Significant Customer

3 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Significant Customer

12. Significant Customer:

The Company generally sells through a limited number of large distributors. The Company invoices the distributors directly as opposed to the ultimate retail store. Consequently, the Company’s sales are to a small number of customers.

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Document and Entity Information	3 Months Ended
	Jun. 30, 2012
Document And Entity Information
Entity Registrant Name	CROWN DYNAMICS CORP
Entity Central Index Key	0001500123
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	39,769,609
Amendment Description	This form 10-Q/A amends the form 10-Q that was filed on September 14, 2012 to reflect changes in the financial statements resulting from a change in the accounting acquirer to Airware Holdings, Inc. from Crown Dynamics Corp. Consequently, the balance sheet for the year ended December 31, 2011 has been restated to reflect the change from presenting the Balance Sheet of Crown Dynamics, Corp. as the accounting acquirer to the unaudited Balance Sheet of the accounting acquirer, Airware Holdings, Inc. Further changes have been made to correctly reflect the number of Options and Warrants outstanding, the par value of the stock and the number of shares outstanding. Lastly, ITEM 4. CONTROLS AND PROCEDURES has been amended to reflect that our management, including our chief executive officer and chief financial officer, has included that our internal control over financial reporting is ineffective, as evidenced by our late and amended filings.
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Business Combination

3 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combination

13. Business Combination:

On March 20, 2012 the Company entered into a share exchange agreement with Airware Holdings, Inc. (Airware) to exchange 21,844,136 of its newly-issued shares of common stock in exchange for 43,688,272 of the issued and outstanding shares and preferred stock of Airware, to exchange 1,065,000 Class A and B warrants of the Company for 2,130,000 Class A and B warrants of Airware and to exchange 1,475,000 Options to purchase the Company’s common stock , at $.50 per share for 2,950,000 Options to purchase Airware common shares at $.25 per share.

The Company has accounted for the business combination with Airware as the accounting acquirer and a recapitalization of Airware through a reverse merger. The net loss from Crown, the acquiree, from operations of $239,144 is included in the Company’s Statement of Operations for the six month period ending June 30, 2012.

The Company has recorded the assets of Crown the acquiree of $123 at book value, the estimated fair value and liabilities of $58,950 at their book value. The $58,950 consists of accounts payable to an entity controlled by a Crown shareholder. See Footnote 14, “Subsequent Events.”

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STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Revenues, net	$ 909	$ 60,113	$ 14,697	$ 82,822
Cost of products sold	6,958	71,115	12,344	77,192
Revenues	(6,049)	(11,002)	2,353	5,630
Operating expenses:
General and Administrative	393,767	268,430	2,560,353	404,368
Sales and Marketing	35,713	113,995	89,812	162,581
Total expenses	429,480	382,425	2,650,165	566,949
(Loss) from Operations	(435,529)	(393,427)	(2,647,812)	(561,319)
Other income (expense)
Interest income	2,007	838	2,661	1,629
Interest expense	(55,941)	(31,447)	(114,398)	(381,393)
Induced note conversion expense		(439,771)		(439,771)
Other income		1,397		30,844
Loss of disposition of property and equipment	(64,238)		(64,238)
Other expense	(550)		(550)	(18,671)
Total other income (expense)	(118,722)	(468,983)	(176,525)	(807,362)
Loss before income taxes	(554,251)	(862,410)	(2,824,337)	(1,368,681)
Income tax expense
Net (Loss)	$ (554,251)	$ (862,410)	$ (2,824,337)	$ (1,368,681)
Basic and diluted net loss per common share	$ (0.01)	$ (0.08)	$ (0.10)	$ (0.14)
Basic and diluted weighted average common shares outstanding	39,769,609	10,495,003	28,228,327	9,534,834

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Notes Payable to Related Party

3 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Notes Payable to Related Party

7. Notes Payable to Related Party:

Notes payable to party of the following:

3.00% note payable, due March 2021, interest due at maturity, unsecured  $47,520

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Convertible Notes Payable

3 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Convertible Notes Payable

6. Convertible Notes Payable:

Convertible notes payable consist of the following:

8.00% notes payable, due dates ranging from August 22, 2012 to March 19,2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	$ 405,000
6.50% note payable, due dates ranging from September 20, 2011 to October 19, 2011, convertible to common stock at $1.00 per share, interest payments are due annually, unsecured	10,000
6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured	50,000
6.50% note payable, due date August 31, 2010, convertible to common stock at $10.00 per share, interest payments are due annually, unsecured	$50,000
	515,000
Less current portion	(415,000)
	100,000

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Loans Payable to Shareholders (Tables)

3 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Loans payable to shareholders

Non-interest bearing loan due on demand, unsecured	$15,000
Non-interest bearing loan due on demand, unsecured	25,000
	$40,000

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Subsequent Events

3 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On June 28, 2012 and effective August 29, 2012, the Company entered into a trade financing, guaranty and advance agreement that allows to Company to factor purchase orders and accounts receivable up to the total amount of $250,000 and $1,000,000, respectively. The Company will pay a fee equal to 4% for the first 30 days and 1.34% for every ten days thereafter against the face amount of each advance. As of September 14, 2012, the Company had received and repaid purchase order advances of $172,172. As of September 14, 2012, the Company had received and had outstanding accounts receivable advances of $544,922.

On July 26, 2012, the Company was named as a Defendant in a lawsuit alleging patent infringement. The Company believes the lawsuit is without merit and is seeking dismissal of the action.

On August 15, 2012 the Company executed an unsecured promissory note to a related party for $121,000 with a related party. The note is due together with any unpaid interest at a rate of 10% per month (120% per annum) on October 15, 2012. In addition, at the date of the note, the Company issued 10,000 shares of the Company’s common stock to the note holder.

On August 23, 2012 the Company entered into an agreement with its former President to modify an existing license agreement with Zorah LLC (“Zorah”), as further detailed in Footnote 1, “Summary of Significant Accounting Policies and Use of Estimates,”  from an exclusive license to a non-exclusive license. Among other requirements of the agreement, the former President agreed to surrender back to the Company 15,125,000 shares of the Company’s common stock.

In May and June of 2012, two shareholders of the Company provided loans to the Company totaling $40,000. In August 2012, the shareholders forgave the loans as well as the $58,950 due by the Company to an entity controlled by the shareholders.

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Commitments and Contingencies

3 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Commitments and Contingencies

10. Commitments and Contingencies:

The Company has agreed to indemnify its officers and director for certain events or occurrences that may arise as a result of the officers or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited.

The Company enters into indemnification provisions under its agreements with other companies in its ordinary course of business, typically with business partners, customers, landlords, lenders and lessors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited.

The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of June 30, 2012.

On August 10, 2011 the Company granted 700,000 stock options to a current employee and three consultants to the Company. The option grant was effective as of July 19, 2011 with the options vesting over one year in quarterly increments commencing on October 17, 2011 and continuing each quarter from that date forward.  These warrants are exercisable at $.50 per share of common stock over a 10 year term.  

On November 7, 2011 the Company was named as a defendant in a lawsuit alleging a default on a note payable of $50,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. The Company is working towards settling the litigation.

On December 22, 2011 the Company entered into a distribution agreement that provides for the issuance of common stock warrants, with an expiration date of 3 years, for the purchase of the Company’s common stock in an amount equal to 15% of the total products purchased by the distributor from the Company at the invoice price against the previous year’s purchases of paid invoices. The warrant price will be equal to the closing price of Crown Dynamics Corp.’s stock price at the anniversary date of the agreement.

On December 27, 2011, the Company was named as a defendant in a lawsuit alleging a default on a two notes payable total $75,000 plus accrued interest. The note and accrued interest are reflected in the Company’s Balance Sheet as of March 31, 2012. Subsequent to June 30, 2012 a judgment was entered against the Company as a result of this lawsuit.

On June 8, 2012 the Company entered a 12 month lease for the rental of a new Company office. The commitment for the rental of the space is as follows:

FYE December 31	Annual Rent
2012	$16,800
2013	$12,000

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Convertible Notes Payable to Related Parties

3 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Convertible Notes Payable to Related Parties

8. Convertible Notes Payable to Related Parties:

Convertible notes payable to related parties consist of the following:

Dynamics Corp. common stock at $.10 per share, interest payments are due monthly. Debt is secured by substantially all of the assets of Airware Holdings, Inc.	$493, 315
8.00 % note payable due March 15, 2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	5,000
8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	20,000
6.50% note payable, due May 2, 2013 convertible to common stock at $2.00 per share, interest payment is due at maturity, unsecured	$145,000
	663,315
Less current portion	(658,315)
	5,000

See “Related Party Transactions,” Footnote 9, for additional information.

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Related Party Transactions

3 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Related Party Transactions

9. Related Party Transactions:

As detailed in Footnote 7, “Notes Payable to Related Party,” the Company has notes payable to its President and Board Member, David Dolezal. Certain convertible notes are with parties related to the Company are former officers and significant consultants, as further detailed in Footnote 8, “Convertible Notes Payable to Related Parties.” Certain other related party transactions are detailed in Footnote 14, “Subsequent Events.”

During the 6 month period ended June 30, 2012 the Company reduced notes payable to related parties by $218,344, with notes receivable and the related accrued interest receivable, from its President and Board Member, David Dolezal, and its Chief Executive Officer, Jeffrey Rassas.

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Stockholders' Equity

3 Months Ended

Jun. 30, 2012

Equity [Abstract]

Stockholders' Equity

11. Stockholders’ Equity:

Common Stock

As further detailed in Footnote 13, “Business Combination,” the Company issued 21,844,136 shares to effect the business combination with Airware Holding, Inc. on March 20, 2012. Airware Holdings, Inc. is the accounting acquirer for the purposes of the business combination and has treated the transaction as a recapitalization through a reverse merger process. As a consequence, the common stock of the company has been restated to reflect the differences in par values of the stock.

On December 1, 2011 the Company entered into employment agreements with its Chief Executive Officer Jeffrey Rassas and its President David Dolezal with annual compensation of $150,000 each. In addition, the agreements provided for options to purchase the Company’s Common Stock for $0.05 per share exercisable over a ten year period. Mr. Rassas and Mr. Dolezal total options under the agreement were 4,585,122 and 9,170,244 of Airware Holdings, Inc. common stock, respectively. The options were to vest at 25% immediately on December 1, 2011 and 25% per each subsequent three month period thereafter. On March 19, 2012 the Company terminated the aforementioned employment agreements, while leaving the annual compensation in place, and replaced the above noted options with the immediate issuance of common stock of 2,292,561 and 4,585,122 shares, the Crown share equivalent to the Airware shares provided for in the options under the agreement, to Mr. Rassas and Mr. Dolezal. The Company has valued the stock issued at $.50 per share for a total value of $1,146,281 and $2,292,561 for Mr. Rassas and Mr. Dolezal, respectively. The Company recognized $855,013 and $783,356 of Mr. Rassas’ and Mr. Dolezal’s total stock award of $1,146,281 and $2,292,561, respectively, as compensation for services for the six month period ended June 30, 2012.

During the six month period and three month period ended June 30, 2012 the Company issued 209,443 and 38,240 shares of the Company’s common stock, respectively, for consulting services. The shares were valued at the cost of the services provided.

On April 11, 2012, the Company issued 52,334 shares of the Company’s common stock in exchange for a convertible note of $25,000 and accrued interest of $1,167.

Under the terms of a Convertible Debenture agreement on June 12, 2012, as further detailed in Footnote 4, “Notes Payable,” the Company issued 10,000 shares of the Company’s common stock.

Warrants:

The balance of warrants outstanding for purchase of the Company’s common stock as of June 30, 2012 are as follows:

Name of Warrants	Common Share Issuable Upon Exercise of Warrants	Exercise Price of Warrants	Date Issued	Expiration Date
Warrants issued under a Unit Purchase Agreement	540,000	$0.50	5/18/2010	5/17/2013
Warrants issued under a Private Placement Memorandum	250,000	$1.00	4/26/2011	4/25/2014
Warrants issued under a Private Placement Memorandum	50,000	$1.00	4/27/2011	4/26/2014
Warrants issued under a Private Placement Memorandum	25,000	$1.00	4/28/2011	4/27/2014
Warrants issued under a Private Placement Memorandum	200,000	$1.00	5/3/2011	5/02/2014
Warrants issued for services	12,500	$0.50	3/23/2012	3/22/2013

During the six month period ended June 30, 2012 the Company issued 12,500 warrants exercisable for $.50 per share for the purchase of the Company’s common stock in exchange for services. The warrants were valued at $.50 per exercisable warrant.

Stock Options:

The balances of outstanding stock option for the Company’s stock as of June 30, 2012 are as follows:

275,000 stock options for the purchase of the Company’s common stock, to a former officer of the Company and 250,000 each to two former Senior Advisory Board Members of the Company. These options are exercisable at $.50 per share of common stock over a 10 year term expiring April 19, 2021.

On August 10, 2011 the Company granted 700,000 stock options to a current employee and three consultants to the Company. The option grant was effective as of July 19, 2011 with the options vesting over one year in quarterly increments commencing on October 17, 2011 and continuing each quarter from that date forward.  These warrants are exercisable at $.50 per share of common stock over a 10 year term.    

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Loans Payable to Shareholders - Loans payable to shareholders (Details) (USD $)	Jun. 30, 2012
Payables and Accruals [Abstract]
Non-interest bearing loan due on demand, unsecured (first)	$ 15,000
Non-interest bearing loan due on demand, unsecured (second)	25,000
Total loans payable to shareholders	$ 40,000

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Accounting Errors Corrections (Tables)

3 Months Ended

Jun. 30, 2012

Accounting Changes and Error Corrections [Abstract]

Balance Sheet as of December 31, 2011

BALANCE SHEET
AS OF  DECEMBER 31, 2011
	As Originally		As
	Reported	Error	Restated
ASSETS
Current Assets:
Cash and cash equivalent	$              -	$      8,186	$      8,186
Accounts receivable	-	6,814	6,814
Inventory	-	2,027	2,027
Prepaid expenses	-	5,000	5,000
Total current assets	-	22,027	22,027
Other Assets:
Property and equipment, net	-	123,679	123,679
Intangible assets, net	-	351,134	351,134
Notes receivable - related party	-	218,344	218,344
Security deposits	-	12,303	12,303
Total Assets	$              -	$  727,487	$  727,487
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable	$      5,000	$1,110,247	$1,115,247
Accrued interest	-	17,888	17,888
Accrued expenses	-	109,305	109,305
Notes payable to related parties	-	25,000	25,000
Convertible notes payable - current portion	-	410,000	410,000
Convertible notes payable to related parties - current portion, net of discount	-	523,480	523,480
Total current liabilities	5,000	2,195,920	2,200,920
Accrued interest to related parties	-	10,235	10,235
Notes payable to related party	-	275,694	275,694
Convertible notes payable to related parties, less current portion	-	145,000	145,000
Total liabilities	5,000	2,626,849	2,631,849
Stockholders' (Deficit):
Common stock, par value $.0001 per share, 200,000,000 shares authorized; 12,835,250 shares issued and outstanding at December 31, 2011	1,650	(366)	1,284
Discount on common stock	(600)	600	-
Additional paid-in capital	54,250	7,051,949	7,106,199
Accumulated deficit	(60,300)	(9,011,845)	(9,011,845)
Total stockholders' (deficit)	(5,000)	(1,959,662)	(1,904,362)
Total Liabilities and Stockholders' (Deficit)	$              -	$  667,187	$  727,487

Statement of Operations as of December 31, 2012

STATEMENT OF OPERATIONS
AS OF  DECEMBER 31, 2011	As Originally		As
	Reported	Error	Restated
Revenues, net	$      14,697	$             -	$      14,697
Cost of products sold	12,344	-	12,344
	2,353	-	2,353
Operating expenses
General and Administrative	2,312,610	247,743	2,560,353
Sales and Marketing	89,812	-	89,812
Total expenses	2,402,422	247,743	2,650,165
(Loss) from Operations	(2,400,069)	(247,743)	(2,647,812)
Other income (expense)
Interest income	2,661	-	2,661
Interest expense	(114,398)	-	(114,398)
Loss on disposition of property and equipment	(64,238)	-	(64,238)
Other expense	(550)	-	(550)
Total other income (expense)	(176,525)	-	(176,525)
Loss before income  taxes	(2,576,594)	(247,743)	(2,824,337)
Income tax expense	-	-	-
Net (Loss)	$(2,576,594)	$(247,743)	$(2,824,337)
Basic and diluted net loss per common share	$        (0.09)	$     (0.01)	$        (0.10)
Basic and diluted weighted average common
shares outstanding	28,228,327	-	28,228,327

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Convertible Notes Payable to Related Parties (Tables)

3 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Convertible notes payable to related parties

Dynamics Corp. common stock at $.10 per share, interest payments are due monthly. Debt is secured by substantially all of the assets of Airware Holdings, Inc.	$493, 315
8.00 % note payable due March 15, 2014, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	5,000
8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due annually, unsecured	20,000
6.50% note payable, due May 2, 2013 convertible to common stock at $2.00 per share, interest payment is due at maturity, unsecured	$145,000
	663,315
Less current portion	(658,315)
	5,000

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Stockholders' Equity - Balance of warrants outstanding (Details) (USD $)	Jun. 30, 2012
Common Share Issuable Upon Exercise of Warrants
Name of Warrants
Warrants issued under a Unit Purchase Agreement	$ 540,000
Warrants (one) issued under a Private Placement Memorandum	250,000
Warrants (two) issued under a Private Placement Memorandum	50,000
Warrants (three) issued under a Private Placement Memorandum	25,000
Warrants (four) issued under a Private Placement Memorandum	200,000
Warrants issued for Services	12,500
Exercise Price of Warrants
Name of Warrants
Warrants issued under a Unit Purchase Agreement, exercise price	$ 0.50
Warrants (one) issued under a Private Placement Memorandum	1.00
Warrants (two) issued under a Private Placement Memorandum	1.00
Warrants (three) issued under a Private Placement Memorandum	1.00
Warrants (four) issued under a Private Placement Memorandum	$ 1.00
Warrants issued for Services, exercise price	$ 0.50
Date Issued
Name of Warrants
Warrants issued under a Unit Purchase Agreement, terms	May 18, 2010
Warrants (one) issued under a Private Placement Memorandum, terms	Apr. 26, 2011
Warrants (two) issued under a Private Placement Memorandum, terms	Apr. 27, 2011
Warrants (three) issued under a Private Placement Memorandum, terms	Apr. 28, 2011
Warrants (four) issued under a Private Placement Memorandum, terms	May 03, 2011
Warrants issued for Services, terms	2012-03-23
Expiration Date
Name of Warrants
Warrants issued under a Unit Purchase Agreement, terms	May 17, 2013
Warrants (one) issued under a Private Placement Memorandum, terms	Apr. 25, 2014
Warrants (two) issued under a Private Placement Memorandum, terms	Apr. 26, 2014
Warrants (three) issued under a Private Placement Memorandum, terms	Apr. 27, 2014
Warrants (four) issued under a Private Placement Memorandum, terms	May 02, 2014
Warrants issued for Services, terms	2013-03-22

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STATEMENTS OF CASHFLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities:
Net (loss)	$ (2,824,337)	$ (1,368,681)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation and amortization	29,110	36,103
Increase in notes receivable related party for interest earned	(655)	(1,629)
Common stock issued for services	1,898,646	2,500
Assets assumed in recapitalization with Airware Holding, Inc	(123)
Liabilities assumed in recapitalization with Airware Holdings, Inc	39,806
Increase in notes payable issued for services	37,500
Amortization of debt discount to related parties	44,639	7,325
Notes payable to officer for compensation and accrued compensation		275,694
Reduction in accrued compensation from salary and option forfeitures to related party		144,580
Stock options issued for services		2,600
Loss on disposition of property and equipment	64,238
Induced conversion expense		439,771
Interest on notes converted to common stock		39,674
Changes in operating assets and liabilities:
Accounts receivable	6,814	(14,734)
Inventory	36,303	9,608
Prepaid expenses	(1,612)	(10,118)
Deposits	(15,097)
Accounts payable	255,149	29,696
Accrued interest	25,806	(6,848)
Accrued expenses	69,738	(115,580)
Net cash (used in) operating activities	(334,075)	(530,039)
Investing Activities:
Purchases of property and equipment	(5,000)
Notes payable to related parties	(35,000)	(56,400)
Net Cash Provided (used for) Investing Activities	(40,000)	(56,400)
Financing Activities:
Common Stock For Cash	5,000	433,500
Proceeds from convertible note payable to related party		145,000
Proceeds from convertible notes payable	105,000
Proceeds from convertible debenture - note payable	75,000
Proceeds from exercise of warrants	195,000
Net Cash Provided by Financing Activities	380,000	578,500
Net (Decrease) Increase in Cash	5,925	(7,939)
Cash - Beginning of Period	8,186	61,972
Cash - End of Period	14,111	54,033
Interest paid in cash	25,000	25,000
Non-cash investing and financing activities:
Common stock issued for convertible notes		703,117
Common stock issued for convertible note to related party		1,140,000
Debt discount on note payable	10,100
Debt discount on related party note		38,029
Reduction in note payable related parties by notes reduction in notes receivable officers	$ (218,344)

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Loans Payable to Shareholders

3 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Loans Payable to Shareholders

5. Loans Payable to Shareholders

Loans payable to shareholders consists of the following:

Non-interest bearing loan due on demand, unsecured	$15,000
Non-interest bearing loan due on demand, unsecured	25,000
	$40,000

See “Subsequent Events,” Footnote 16, for additional information.

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Commitments and Contingencies (Tables)

3 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Commitment for rental of space

FYE December 31	Annual Rent
2012	$16,800
2013	$12,000

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Related Party Transactions (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012
Notes to Financial Statements
Reduced notes payable to related parties	$ 218,344

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Summary of Significant Accounting Policies and Use of Estimates (Policies)

3 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Organization

Basis of Presentation and Organization

Crown Dynamics Corp. (“Crown Dynamics,” Crown or the “Company”) is a Delaware corporation. The Company was incorporated under the laws of the State of Delaware on June 15, 2010.

On March 20, 2012, through an equity exchange agreement, the Company acquired all of the issued and outstanding stock of Airware Holdings, Inc., a Nevada corporation (“Airware”), in exchange for 21,844,136 shares of the Company’s newly-issued common stock. Airware was formed in February 2010 and is a non-prescription medical products company. The principal business purpose of the Company is to develop, manufacture and distribute nasal breathing devices. The Company targets prospective customers such as compassionate sleeping partners, individuals with allergies and athletic enthusiasts throughout the United States and the United Kingdom.

The share exchange has been accounted for as a recapitalization reverse merger between Airware Holdings, Inc. and Crown Dynamics, Corp. Airware is the accounting acquirer and Crown is the accounting acquiree. Consequently, the historical pre-merger financial statements of Airware are now those of the Company. The par value of the stock of Airware of $.001 per share has been adjusted to that of the Company of $.0001 per share with the par value difference of $39,319 charged to paid-in capital. The pre-merger deficit is that of Airware. Crown’s pre-merger accumulated deficit has been charged to paid-in capital. The pre-merger Airware outstanding shares have been adjusted to reflect the exchange, thus reducing the number of outstanding shares at December 31, 2011 from 25,670,000 total shares outstanding, including common and convertible preferred stock, to 12,835,250 shares of common stock. The pre-merger outstanding shares of Crown of 17,725,000 with a par value of $1,772 have been included in the issued and outstanding shares of the Company at June 30, 2012.

The Company has included the eleven days of Crown the acquiree operations within its Statement of Operations and Statement of Cash Flows for the six month period ending June 30, 2012. The Company’s losses for the period were increased by $239,144 as a result of including Crown the acquiree’s operating results for the eleven days. The Company’s cash flow was unchanged as a result of including Crown the acquiree’s cash flows for the eleven days.

Unaudited Interim Financial Statements

Unaudited Interim Financial Statements

The interim financial statements of the Company as of June 30, 2012 and 2011, and for the periods then ended, are unaudited. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2012 and 2011 and the results of its operations and its cash flows for the periods then ended. These results are not necessarily indicative of the results expected for the calendar year ending December 31, 2012. The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States (U.S. “GAAP”).

Inventory

Inventory

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts.

Property and Equipment

Property and Equipment

Inventory at June 30, 2012 consists of finished goods and raw materials and is stated at the lower of cost, determined by the first-in, first-out method, or market. Inventories are determined by physical counts. 

The estimated useful lives of property and equipment are:

· Manufacturing equipment 3 years

· Office furniture and equipment     5-7 years

Intangible Assets

Intangible Assets

Intangible assets consist of patent and intellectual property and are amortized over the period that the Company believes best reflects the period in which the economic benefits will be consumed. The Company evaluates intangible assets with definite lives for recoverability when events or circumstances indicate that these assets might be impaired. The Company tests those assets for impairment by comparing their respective carrying values to estimates of the sum of the undiscounted future net cash flows expected to result from the assets. If the carrying amount of an asset exceeds the sum of the undiscounted net cash flows expected from that asset, the Company recognizes an impairment loss based on the amount by which the carrying value exceeds the fair value of the asset. Amortization expense for the six month period ended June 30, 2012 and 2011 amounted to $8,598 and $8,064 respectively, and is included in general and administrative expenses on the statement of operations.

Long-Lived Assets

Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses an estimate of the related undiscounted cash flows, excluding interest, over the remaining life of the property and equipment or other long-lived asset in assessing its recoverability. Impairment losses are recognized for the amount by which the carrying amount of the asset(s) exceeds the fair value of the asset(s). The Company primarily employs two methodologies for determining the fair value of a long-lived asset: (i) the amount at which the asset could be bought or sold in a current transaction between willing parties; or (ii) the present value of expected future cash flows grouped at the lowest level for which there are identifiable independent cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Revenue Recognition.

Revenue Recognition.

The Company recognizes revenue on the sale of products at the time of delivery and acceptance. Delivery is generally FOB shipping point. At the time of delivery, the following have occurred:

· Delivery has been evidenced by the appropriate signature on the delivery ticket;

· A price per unit has been determined; and

· Collectability has been reasonably assured.

Revenues are recorded net of slotting payments and co-operative advertising costs when applicable.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, certain current maturities of long-term debt and accrued liabilities approximate fair value because of their short maturities or for long term debt based on borrowing rates currently available to the Company for loans with similar terms and maturities.

Long-term receivables with related parties are carried at an approximate fair value based on rates available to Company for risk free investments.

Earnings per Share

Earnings per Share

Basic earnings per share does not include dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Dilutive securities are not included in the weighted average number of shares when inclusion would be anti-dilutive. Due to the net losses for the periods ended June 30, 2012 and 2011, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.

As of June 30, 2012 there were 3,202,500 shares issuable upon conversion of notes payable, exercise of warrants and options that were not included in the earnings per share calculation as they were anti-dilutive. There is an additional convertible note that has a provision to convert to 5,000,000 shares upon default on the note at $.10 per share.

Shipping and Handling

Shipping and Handling

Shipping and handling costs associated with the shipment of products to the customer are recorded as costs of revenue.

Advertising Costs

Advertising Costs

Costs associated with producing, communicating and advertising are capitalized and expensed when first viewed by the public.  There no cost capitalized or expensed for the periods ending June 30, 2012 and 2011 respectively. Advertising expense is included in selling and marketing expenses on the accompanying statements of operations.

Recent Accounting Pronouncements:

Recent Accounting Pronouncements:

In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRSs")." Under ASU 2011-04, the guidance amends certain accounting and disclosure requirements related to fair value measurements to ensure that fair value has the same meaning in U.S. GAAP and in IFRS and that their respective fair value measurement and disclosure requirements are the same. ASU 2011-04 is effective for public entities during interim and annual periods beginning after December 15, 2011. The Company has adopted the requirements of this ASU.

There were various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries. None of the updates are expected to a have a material impact on the Company's financial position, results of operations or cash flows