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

                                   FORM 10-KSB

(Mark One)

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

                   For the fiscal year ended December 31, 2006

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

For the transition period from ____________ to _____________.

                       Commission File Number: 33-11986-LA

                              CROWN PARTNERS, INC.
             (Exact name of Registrant as specified in its charter)

                     Nevada                        91-2008803
         (State or other jurisdiction of          (IRS Employer
         incorporation or organization)      Identification Number)

                     27430 Riverside Lane, Valencia CA 91354
               (Address of principal executive offices)(Zip Code)

Company's telephone number, including area code: (661) 287-3772

Securities registered pursuant to Section 12(b) of the Act: None.

Name of each exchange on which registered: None.

Securities registered pursuant to Section 12(g) of the Act: None.

Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or such
shorter period of that the Registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes |X| No |_|

Check if there is no disclosure of delinquent filers to Item 405 of Regulation
S-B contained in this form, and if no disclosure will be contained, to the best
of the Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K. |_|

The number of shares outstanding of the Company's $.001 Par Value Common Stock,
as of December 31, 2006 was 23,587,983. The aggregate number of shares of the
voting stock held by non-affiliates was 8,661,343. The market value of these
shares, computed by reference to the market closing price on April 11, 2007 was
$692,907. For the purposes of the foregoing calculation only, all directors and
executive officers of the registrant have been deemed affiliates.

                   DOCUMENTS INCORPORATED BY REFERENCE: None.

<PAGE>

PART I

ITEM 1. BUSINESS

A) General

Crown Partners, Inc. (the "Company"), has been involved in several different
businesses. At present, it has three subsidiaries for which it is seeking
suitable merger candidates.

B) Narrative Description of Business

The Company has three subsidiaries of which it is the majority shareholder:
Crown Equity Holdings Inc. (formerly known as Micro Bio-Medical Waste Systems,
Inc. ("CEQN"), Universal Services & Acquisitions, Inc. ("USV"), and Sanitec
Services Ltd. ("SSH").

The Company owns 64% of CEQN, a Nevada corporation traded on the Electronic
Bulletin Board under "CEQN". CEQN is currently seeking acquisition or merger
candidates. In November, 2003, CEQN entered into an agreement with the Company
to purchase the Company's wholly owned subsidiary, Sanitec Services Ltd., a
Hawaii corporation. CEQN was not been able to pay the sum due to the Company
although it did pay a non-refundable deposit of $45,520 to the Company, part of
which was advanced to SSH for its operations and the balance of which the
Company advanced to CEQN to fund its operations. The proposed transaction with
SSH has been terminated due to CEQN inability to raise the funds necessary to
complete this transaction and SSH's subsequent ceasing of its operations. At the
present time, CEQN is seeking suitable acquisition candidates. Crown continues
to advance funds to CEQN to pay CEQN's expenses. The Company anticipates that it
will be repaid these advances and loans at the time that CEQN acquires an
operating business. At the end of the year, CEQN owed a total of approximately
$102,000 to the Company.

The Company owns 90% of the issued and outstanding shares of Universal Services
& Acquisitions, Inc. ("USV"), a Colorado corporation. USV is a dormant shell
company. In 2005, the Company received an investment of $15,000 from an investor
to defray the costs of bringing USV current in its financial statements and
other expenses so that the Company might locate a suitable acquisition candidate
for it. In return, the Company agreed to issue 150,000 shares of its common
stock to the shareholder. In May, 2006, the Company issued 150,000 shares of its
common stock to settle the stock payable liability.

In November, 2001, the Company acquired Sanitec(TM) Services of Hawaii, Inc.
("SSH"), a privately held Hawaiian corporation, developed to engage in medical
waste collection and treatment in Honolulu, Hawaii. The Company issued 1,333,334
shares of its common stock to the shareholder of SSH and SSH became a wholly
owned subsidiary of the Company. The Company borrowed funds and used capital it
raised in order to pay obligations of SSH during the year ended December 31,
2005. The operations of SSH ceased in May, 2005 when SSH was evicted from its
plant in Hawaii. At the present time, the Company is utilizing its limited
capital to fund its operations as it seeks business opportunities.

In July, 2005, the Company sold its interest in National Healthcare Technology,
Inc. ("NHT") for $500,000, which the Company received in two installments during
2005. The Company assumed all outstanding indebtedness of National Healthcare
which included accounts payable of approximately $58,000 and the officers and
directors of NHT, who were also the officers and directors of Crown Partners,
resigned. In addition, the Company received 905,438 restricted shares of
National Healthcare's common stock as part of this transaction. As of December
31, 2006, the company still had 87,111 shares of NHT which shares were sold
during the first quarter of 2007.


                                       1
<PAGE>

In April 2006, the Company issued 1,855,690 shares of common stock valued at
$278,354 to an officer and director of the Company in satisfaction of $185,569
in advances made by him to SSH. The excess value of $92,785 was recorded as
compensation expense.

In May 2006, the Company issued 2,000,000 shares of common stock valued at
$260,000 to related parties in satisfaction of $100,000 in debt. The excess
value of $160,000 was recorded as compensation expense.

In May 2006, a subsidiary of the Company issued common stock valued at $255,000
to a related party as satisfaction of debt totaling $181,671. The value of the
shares recorded exceeded the liability by $73,329, which was recorded as
compensation expense.

In May, 2006, the Company issued 150,000 shares of its common stock to settle a
stock payable from 2005.

During the year ended December 31, 2006, the Company issued 9,000,000 options to
certain officers, directors and consultants. The options are exerciseable over a
five year period at $.10 per share. In accordance with SFAS No. 123R, the
Company recorded $625,880 of expense in connection with the issuance of these
options.

Employees

As of December 31, 2006, the Company had no employees.

Item 2. Properties.

The Company is currently provided office space by its CEO at no charge for the
present time. The Company anticipates that this space is adequate for the
present time.

Item 3. Legal Proceedings.

There are presently no legal proceedings pending against the Company.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Market for Registrant's Common Equity and Related Shareholder Matters.

The Company's common stock has been traded on the OTC Electronic Bulletin Board
since Spring, 1996 under the symbol "TELM," since April, 1999, under the symbol
"SNHS" and since January, 2002, under the symbol "CRWP". The following table
reflects the high and low quarterly bid prices for 2006. This information was
provided to the Company by the National Association of Securities Dealers, Inc.
(the "NASD") and the Internet. These quotations reflect inter-dealer prices,
without retail mark-up or mark-down or commissions. These quotations may not
necessarily reflect actual transactions.

Period         High Bid   Low Bid
------------   --------   -------
1st Qtr 2006       .2        .1
2nd Qtr 2006       .2       .06
3rd Qtr 2006      .16       .07
4th Qtr 2006      .11       .06


                                       2
<PAGE>

As of December 31, 2006, the Company had 23,587,983 shares of its common stock
issued and outstanding, of which 8,661,343 were held by non-affiliates.

The Company's CUSIP number is 85847R108. The Company has authorized a total of
50,000,000 shares of common stock, par value $.001. The Company has authorized a
total of 10,000,000 shares of preferred stock, par value $10.00 and presently
has no shares of preferred stock issued and outstanding. The Company estimates
that it has in excess of 300 beneficial shareholders as of March 19, 2007.

Item 6. Management's Discussion and Analysis or Plan of Operation.

FORWARD-LOOKING STATEMENTS MAY NOT PROVE ACCURATE

When used in this Form 10-KSB, the words "anticipated", "estimate", "expect",
and similar expressions are intended to identify forward-looking statements.
Such statements are subject to certain risks, uncertainties and assumptions
including the possibility that the Company's will fail to generate projected
revenues. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or projected.

OVERVIEW

Due to the present and ongoing instability in the financial markets, the Company
experienced substantial losses in its trading activities in prior years. The
Company continues to seek business opportunities for itself and its subsidiaries
that will allow it and them to generate revenues to fund all their operations
but has no suitable candidates under review at the present time. The Company,
through its subsidiary, SSH, began generating revenues during 2003 which were
not enough to fund and support its Hawaiian operations in the short term and
resulted in the Company ceasing its Hawaii operations when the landlord evicted
SSH for failing to pay its rent.

The Company will continue to seek suitable merger candidates for its other
subsidiaries which should also result in revenues for the Company if mergers are
consummated.

The Company does not have adequate working capital for its current operations
and will need additional working capital in 2007.

NEED FOR ADDITIONAL FINANCING

The Company believes that its existing capital will not be sufficient to meet
the Company's cash needs, including the costs of compliance with the continuing
reporting requirements of the Securities Exchange Act of 1934, as amended, for
itself and its subsidiaries. The Company is seeking to locate other potential
acquisitions for its subsidiaries.

No commitments to provide additional funds have been made by management or other
stockholders. Accordingly, there can be no assurance that any funds will be
available to the Company to allow it to cover its expenses.


                                       3
<PAGE>

The Company might seek to compensate providers of services by issuances of stock
in lieu of cash.

The Company's balance sheet as of December 31, 2006 reflects limited assets and
limited liabilities. Further, there exist no agreements or understandings with
regard to loan agreements by or with the Officers, Directors, principals,
affiliates or shareholders of the Company.

RESULTS OF OPERATIONS

In 1999, the Company began operations after two years of being inactive. The
Company appointed new management after its initial acquisition and rented office
space. In early 2003, the Company, through its subsidiary SSH, began limited
operations in Hawaii, which ceased in May, 2005 when SSH was evicted from its
leased premises. In July, 2005, the Company sold its approximate 29% interest in
National Healthcare Technology, Inc. ("NHT") for $500,000. The Company assumed
the outstanding liabilities of NHT totaling approximately $58,000 and NHT's
officers and directors, who were also officers and directors of the Company,
resigned. In addition, the Company retained 22,800 shares of NHT common stock it
had previously been issued by NHT and was issued an additional 905,438 shares of
NHT restricted stock. As of December 31, 2006, the Company still owned 87,111
shares of its NHT shares, which it sold during the first quarter of 2007.

In April 2006, the Company issued 1,855,690 shares of common stock valued at
$278,354 to an officer and director of the Company in satisfaction of $185,569
in advances made by him to SSH. The excess value of $92,785 was recorded as
compensation expense.

In May 2006, the Company issued 2,000,000 shares of common stock valued at
$260,000 to related parties in satisfaction of $100,000 in debt. The excess
value of $160,000 was recorded as compensation expense.

In May 2006, a subsidiary of the Company issued common stock valued at $255,000
to a related party as satisfaction of debt totaling $181,671. The value of the
shares recorded exceeded the liability by $73,329, which was recorded as
compensation expense.

In May, 2006, the Company issued 150,000 shares of its common stock to settle a
stock payable from 2005.

During the year ended December 31, 2006, the Company issued 9,000,000 options to
certain officers, directors and consultants. The options are exerciseable over a
five year period at $.10 per share. In accordance with SFAS No. 123R, the
Company recorded $625,880 of expense in connection with the issuance of these
options.

For the year ended December 31, 2006, the Company realized a net loss of
$1,032,668, after a $205,762 gain on sale of securities, $5,463 in interest
income, interest expense of $14,930 and general and administrative expenses of
$603,083. In addition, the Company recorded $625,880 in expense related stock
option that were issued during the year. For the year ended December 31, 2005,
the Company realized a net profit before income taxes of approximately $241,317
on revenues of $36,982, a gain on sale of securities of $14,330, gain on sale of
equity investment of $440,866, net gain on debt settlement of $91,370, interest
income of $1,275, general and administrative expenses of $322,339, interest
expense of $20,994 and an unrealized loss on securities of $173. The net (loss)
profit per share for the years ended December 31, 2006 and 2005 was ($.05) and
$.01, respectively.


                                       4
<PAGE>

At December 31, 2006, shareholder's (deficit) totaled ($9,215,080) compared to
shareholder's deficit of ($8,182,412) at December 31, 2005. This increase in
shareholder's deficit is due primarily to the Company's continuing to pay its
subsidiaries expenses without sufficient income to support these expenses.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2006, the Company had total assets of $467,671, which consisted
entirely of cash, and working capital of $46,202. The Company's current
liabilities of $421,469 consisted of accounts payable and accounts payable to a
related party.

Crown will attempt to increase its operating liquidity by exploring the
availability of outside debt and equity financing, to the extent that such
funding is available under reasonable terms and conditions.

There can be no assurances that these measures will result in an improvement in
Crown's operations or liquidity. To the extent that Crown's operations or
liquidity do not improve, Crown may be forced to reduce operations to a level
consistent with its available working capital resources. Crown may also have to
consider a formal or informal restructuring or reorganization.

As a result of these factors, Crown's independent accountants have expressed
substantial doubt about Crown's ability to continue as a going concern. The
accompanying consolidated financial statements have been prepared assuming that
Crown will continue as a going concern, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business. The
carrying amounts of assets and liabilities presented in the consolidated
financial statements do not purport to represent the realizable or settlement
values, nor include any adjustments that might result from the outcome of this
uncertainty.


                                       5
<PAGE>

Item 7. Financial Statements.

                                                                        Page
                                                                        ----

REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                 7-8

CONSOLIDATED BALANCE SHEET                                                 9

CONSOLIDATED STATEMENTS OF OPERATIONS                                     10

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)                 11

CONSOLIDATED STATEMENTS OF CASH FLOWS                                     12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                             13-19


                                       6
<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
  Crown Partner, Inc.
  Valencia, California

We have audited the accompanying statements of operations, stockholders'
deficit, and cash flows of Crown Partners, Inc. for the year ended December 31,
2005. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining on a
test basis, evidence supporting the amount and disclosures in the consolidated
financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the results of operations and cash flows of Crown
Partners, Inc. for the year ended December 31, 2005, in conformity with
accounting principles generally accepted in the United States of America.

As discussed in Note 3 to the financial statements, the Company's recurring
losses from operations and the need to raise additional financing in order to
satisfy its vendors and other creditors and execute its Business Plan raise
substantial doubt about its ability to continue as a going concern. Management's
plans as to these matters are also described in Note 3. The 2005 financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

LBB & Associates, Ltd., LLP
(formerly Lopez, Blevins, Bork & Associates, LLP)
Houston, Texas
April 28, 2006


                                       7
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
  Crown Partners, Inc.
  Valencia, California

We have audited the accompanying consolidated balance sheet of Crown Partners,
Inc. as of December 31, 2006, and the consolidated statements of operations,
stockholders' equity, and cash flows for the year then ended. These consolidated
financial statements are the responsibility of Crown's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Crown Partners,
Inc. as of December 31, 2006, and the consolidated results of its operations and
its cash flows for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming
that Crown Partners, Inc. will continue as a going concern. As discussed in Note
3 to the consolidated financial statements, Crown Partners has suffered
recurring losses from operations, which raises substantial doubt about its
ability to continue as a going concern. Management's plans regarding those
matters are described in Note 3. The consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.

Malone & Bailey, PC
Houston, Texas
April 10, 2007


                                       8
<PAGE>

                              CROWN PARTNERS, INC.
                           CONSOLIDATED BALANCE SHEET
                                December 31, 2006

                                ASSETS
Current assets
  Cash                                                     $   467,671
                                                           -----------
Total assets                                               $   467,671
                                                           ===========
                 LIABILITIES AND STOCKHOLDERS' EQUITY
  Accounts payable and accrued expenses                    $   273,517
  Accounts payable - related party                             147,952
                                                           -----------
    Total current liabilities                                  421,469
                                                           -----------
Commitments and contingencies
Stockholders' equity:
  Convertible preferred stock, $10 par value, 10,000,000
    shares authorized, no shares issued and outstanding             --
  Common stock, $.001 par value, 50,000,000 shares
    authorized, 23,587,983 shares issued and outstanding        23,588
    Additional paid in capital                               9,237,694
    Accumulated deficit                                     (9,215,080)
                                                           -----------
    Total stockholders' equity                                  46,202
                                                           -----------
Total liabilities and stockholders' equity                 $   467,671
                                                           ===========

                 See accompanying summary of accounting policies
                        and notes to financial statements


                                       9
<PAGE>

                              CROWN PARTNERS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                     Years Ended December 31, 2006 and 2005

                                              2006         2005
                                          -----------   -----------
Service revenue                           $        --   $    36,982
                                          -----------   -----------
  Total revenue                                    --        36,982
                                          -----------   -----------
Operating expenses:
  General and administrative                1,228,963       322,339
  Unrealized loss on securities                    --           173
                                          -----------   -----------
Total operating expenses                    1,228,963       322,512
                                          -----------   -----------
Net loss from continuing operations        (1,228,963)     (285,530)
                                          -----------   -----------
Other income (expense):
  Interest income                               5,463         1,275
  Interest expense                            (14,930)      (20,994)
  Gain on sale of equity investment                --       440,866
  Gain on sale of securities                  205,762        14,330
  Net gain on settlement of liabilities            --        91,370
                                          -----------   -----------
Total other income (expense)                  196,295       526,847
                                          -----------   -----------
Net income (loss)                         $(1,032,668)  $   241,317
                                          ===========   ===========
Net income (loss) per share:
  Basic and diluted                       $     (0.05)  $      0.01
Weighted average shares outstanding:
  Basic and diluted                        22,266,268    19,507,663

                 See accompanying summary of accounting policies
                        and notes to financial statements


                                       10
<PAGE>

                              CROWN PARTNERS, INC.
            CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                          Years Ended December 31, 2006

<TABLE>
<CAPTION>
                                               Common stock      Additional
                                          --------------------     paid in    Accumulated
                                            Shares      Amount     capital      deficit        Total
                                          ----------   -------   ----------   -----------   -----------
<S>                                       <C>          <C>       <C>          <C>           <C>
Balance,
  December 31, 2004                       19,462,293   $19,462   $7,742,183   $(8,423,729)  $  (662,084)
Issuance of common
  stock for debt                             120,000       120       16,680            --        16,800
Reclassification of prior
year imputed interest                             --        --       24,247            --        24,247
Imputed interest                                  --        --       18,764            --        18,764

Net profit                                        --        --           --       241,317       241,317
                                          ----------   -------   ----------   -----------   -----------
Balance,
  December 31, 2005                       19,582,293    19,582    7,801,874    (8,182,412)     (360,956)
Issuance of common
stock for settlement of a liability          150,000       150       14,850            --        15,000
Issuance of common
stock for settlement of a related
party liability                            2,000,000     2,000      258,000            --       260,000
Issuance of common
stock for settlement of a related party
liability                                  1,855,690     1,856      276,498            --       278,354
Issuance of common stock by subsidiary
for settlement of a related
party liability                                   --        --      255,000            --       255,000
Issuance of stock options                         --        --      625,880            --       625,880
Imputed interest on related party debt            --        --        5,592            --         5,592
Net loss                                          --        --           --    (1,032,668)   (1,032,668)
                                          ----------   -------   ----------   -----------   -----------
Balance, December 31, 2006                23,587,983   $23,588   $9,237,694   $(9,215,080)  $    46,202
                                          ==========   =======   ==========   ===========   ===========
</TABLE>

                 See accompanying summary of accounting policies
                        and notes to financial statements


                                       11
<PAGE>

                              CROWN PARTNERS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     Years Ended December 31, 2006 and 2005

<TABLE>
<CAPTION>
                                                          2006           2005
                                                      ------------   ------------
<S>                                                   <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                     $ (1,032,668)  $    241,317
Adjustments to reconcile net income (loss) to cash
  provided by (used in) operating activities:
    Depreciation and amortization                               --          8,852
    Write-off due to loss of equipment                          --         17,393
    Unrealized loss on securities                               --            173
    Realized gain on sale of marketable securities        (205,762)       (14,330)
    Imputed interest                                         5,592         18,764
    Net gain on settlement of debt                              --        (91,370)
  Stock options issued for services                        625,880             --
  Common stock of subsidiary issued in excess of
    related party liability                                 73,328            --
  Common stock issued in excess of related party
    liability                                              252,785             --
Changes in operating assets and liabilities:
  Increase (Decrease) in accounts payable                  (15,871)       113,162
  Investments in marketable securities                 (23,580,338)   (21,828,907)
  Proceeds from sale of marketable securities           23,854,580     21,774,584
  Increase in accounts payable - related party             148,312             --
                                                      ------------   ------------
Cash flows provided by (used in) operating
   activities                                              125,838        239,638
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from advances                                        --         16,181
  Payments on advances                                          --       (100,000)
                                                      ------------   ------------
Cash flows used in financing activities                         --        (83,819)
Net increase in cash                                       125,838        155,819
Cash, beginning of period                                  341,833        186,014
                                                      ------------   ------------
Cash, end of period                                   $    467,671   $    341,833
                                                      ============   ============
SUPPLEMENTAL CASH FLOW INFORMATION
  Interest paid                                       $         --   $         --
  Income taxes paid                                   $         --   $         --
NONCASH TRANSACTION:
  Common stock issued in satisfaction of related
    party debt                                        $    285,569   $     16,800
  Common stock issued by subsidiary in satisfaction
    of related party debt                                  181,672             --
  Common stock issued for stock payable                     15,000             --
Reclass of imputed interest from accounts payable
  to additional paid in capital                                 --         24,247
</TABLE>

                 See accompanying summary of accounting policies
                        and notes to financial statements


                                       12
<PAGE>

                              CROWN PARTNERS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - DESCRIPTION OF BUSINESS

Crown Partners, Inc. (the "Company" or "Crown"), a Nevada corporation, was
incorporated on November 3, 1986. Crown was originally incorporated as Ed
Phills, Inc. and its name was changed to Vegas Ventures, Inc., Telemall
Communications, Inc. and subsequently to Stein's Holdings, Inc. Crown was a
development stage company until 1999, when it acquired the following companies
and became an active company:

Crown Equity Holdings, Inc. (formerly Micro Bio-Medical Waste Systems, Inc.) -
Crown acquired 80% ownership in this company in March 1999. Crown currently
holds a 64% ownership interest.

In September 2000, Crown acquired 90% ownership in Universal Services and
Acquisitions, Inc.

In November 2001, Crown acquired 100% of Sanitec Services of Hawaii, Inc.

Nature of Business

Crown Partners, Inc.'s main activities and sources of income are derived from
daily trading in the stock markets.

In May, 2005, Sanitec Services of Hawaii was evicted from its premises in
Honolulu and has ceased operations.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of Crown's majority
owned, controlled subsidiaries. All significant intercompany transactions and
balances have been eliminated.

Cash and Cash Equivalents

Crown considers all highly liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.

Reclassification

Certain prior year amounts have been reclassified to conform to the current
year's presentation.

Investments

For publicly traded investments, the Company follows SFAS No. 115 "Accounting
for Certain Investments in Debt and Equity Securities". Under this method the
Company's investment in publicly traded securities are classified as trading
securities and are reported at fair value. Fair value is based on quoted market
prices as of the end of the reporting period. Unrealized gains and losses on
these investments are reported in net income during the period. Unrealized
losses related to investments in trading securities as of December 31, 2006, and
2005, aggregated $0 and $173, respectively. Net realized gains related to
investments in trading securities as of December 31, 2006 and 2005 aggregated
$205,762 and $14,330, respectively.


                                       13
<PAGE>

Concentrations of Credit Risk

Crown maintains its cash balances at financial institutions that are insured by
the Federal Deposit Insurance Corporation ("FDIC") up to $100,000. At December
31, 2006, Crown's cash balances exceeded the amount insured by the FDIC.
Management believes the risk of loss of cash balances in excess of the insured
limit to be low.

Property and Equipment

Property and equipment is valued at cost. Additions are capitalized and
maintenance and repairs are charged to expense as incurred. Gains and losses on
dispositions of equipment are reflected in operations. Depreciation is provided
using the straight-line method over the estimated useful lives of the assets,
which are three to five years. As of December 31, 2006, property and equipment
had been fully depreciated.

Revenue Recognition

Revenue earned from trading securities which is recognized on the day of the
trade - trade date basis.

Sales are recognized when persuasive evidence of an arrangement exists, delivery
has occurred, the sales price is fixed and determinable and collectibility is
probable. These criteria are generally met at the time product delivery is
complete or services are performed.

Use of Estimates

In preparing financial statements, management makes estimates and assumptions
that affect the reported amounts of assets and liabilities in the balance sheet
and revenue and expenses in the statement of expenses. Actual results could
differ from those estimates.

Income Taxes

Crown recognizes deferred tax assets and liabilities based on differences
between the financial reporting and tax bases of assets and liabilities using
the enacted tax rates and laws that are expected to be in effect when the
differences are expected to be recovered. Crown provides a valuation allowance
for deferred tax assets for which it does not consider realization of such
assets to be more likely than not.

Earnings per Share

The basic net loss per common share is computed by dividing the net loss by the
weighted average number of common shares outstanding. Diluted net loss per
common share is computed by dividing the net loss adjusted on an "as if
converted" basis, by the weighted average number of common shares outstanding
plus potential dilutive securities. For the year ended December 31, 2006,
potential dilutive securities had an anti-dilutive effect and were not included
in the calculation of diluted net loss per common share.


                                       14
<PAGE>

Recent Accounting Pronouncements

Crown does not expect the adoption of recently issued accounting pronouncements
to have a significant impact on its results of operations, financial position or
cash flow.

Stock Based Compensation

Effective January 1, 2006, Crown adopted SFAS No. 123R, "Share-Based Payment,"
which was issued in December 2004. SFAS No. 123R revises SFAS No. 123
"Accounting for Stock Based Compensation," and supersedes APB No. 25,
"Accounting for Stock Issued to Employees," and its related interpretations.
SFAS No. 123R requires recognition of the cost of employee services received in
exchange for an award of equity instruments in the financial statements over the
period the employee is required to perform the services in exchange for the
award (presumptively the vesting period). SFAS No. 123R also requires
measurement of the cost of employee services received in exchange for an award
based on the grant-date fair value of the award.

NOTE 3 - GOING CONCERN

As shown in the accompanying financial statements, Crown incurred net losses of
$1,032,668 and had an accumulated deficit of $9,215,080 as of and for the period
ended December 31, 2006. These conditions raise substantial doubt as to Crown's
ability to continue as a going concern. Management is trying to raise additional
capital through sales of common stock or merger. The financial statements do not
include any adjustments that might be necessary if Crown is unable to continue
as a going concern.

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

                                  2006
                                --------
Medical waste equipment         $424,107
Computer equipment                37,491
                                --------
                                 461,598
Less accumulated depreciation    461,598
                                --------
                                $     --
                                ========

The depreciation expense for the years ended December 31, 2006 and 2005 was $0
and $8,852, respectively.

NOTE 5 - RELATED PARTY TRANSACTIONS

Crown has received advances from an officer and director of the company from
time-to-time. During the year ended December 31, 2006 there were no advances and
all advances were settled during the year. As a result, there were no advances
outstanding at December 31, 2006. Crown has imputed interest on the advance at
an annual rate of 8% during the years ended December 31, 2006 and 2005. Total
imputed interest on related party and third party advances for 2006 and 2005 was
$5,592 and $18,764, respectively.


                                       15
<PAGE>

The Company engages an officer of Crown for legal services. During the year
ended December 31, 2006, Crown incurred approximately $150,800 in related legal
fees. At December 31, 2006, the liability outstanding for these legal services
was $147,952.

NOTE 6 - SETTLEMENT OF LIABILITIES

During 2005 Crown returned $32,650 of equipment at cost to the vendor to settle
a payable for the same amount. The equipment had been fully depreciated
resulting in a gain on the settlement of $32,650.

In a prior year Crown received $45,520 as a non-refundable deposit from a third
party toward the purchase of it's wholly owned subsidiary, Sanitec Services of
Hawaii, Inc. and recorded it as a liability. During 2005 Sanitec Services of
Hawaii, Inc. ceased operations and the purchase was terminated. As a result the
deposit was taken into income in 2005 and is included in gain on settlement of
liabilities.

During 2005, Crown settled a $90,000 advance from a third party by paying
$60,000 in cash, and recognized a $30,000 gain on the settlement of the
liability.

During 2005 Crown settled $12,000 of advances from a third party by issuing
120,000 shares of common stock. The market value of the common stock at the date
the shares of common stock was issued was $16,800 resulting in a loss of $4,800.
Per the terms of the settlement agreement Crown has to issue additional shares
of stock if the proceeds recognized by the third party are less than $12,000.
Because of the uncertainty of the recognition of the $12,000 from the sale of
the common stock Crown has accrued a $12,000 which has been recorded against the
net gain on settlement of liabilities. This liability was outstanding at
December 31, 2006.

NOTE 7 - COMMON STOCK ISSUED BY SUBSIDIARY

In May 2006, Crown's majority owned subsidiary, Crown Equity Holdings Inc.
(formerly Micro Bio-Medical Waste Systems, Inc.) issued 500,000 shares of Crown
Equity's common stock valued at $255,000 for accounts payable to a related party
of $181,672. This is accounted for as a contribution to capital.

NOTE 8 - SHAREHOLDER'S EQUITY

Crown is authorized to issue up to 10,000,000 shares of Preferred Stock, par
value $10.00 per share. At December 31, 2006 there were no preferred shares
issued or outstanding.

Crown is authorized to issue up to 50,000,000 shares of Common Stock, par value
$0.001 per share. There were 23,587,983 and 19,582,293 shares outstanding at
December 31, 2006 and 2005 respectively.

In 2005, Crown issued 120,000 of its common stock in exchange for debt of
$12,000.

In 2005, in conjunction with the settlement of a liability to an officer and
director Crown reclassified $24,247 of imputed interest previously recorded as a
liability to additional paid in capital. Imputed interest for 2005 of $18,764
was recorded to additional paid in capital for 2005.


                                       16
<PAGE>

In April 2006, the Company issued 1,855,690 shares of common stock valued at
$278,354 to an officer and director of the Company in satisfaction of $185,569
in advances made by him to SSH. The excess value of $92,785 was recorded as
compensation expense.

In May 2006, the Company issued 2,000,000 shares of common stock valued at
$260,000 to related parties in satisfaction of $100,000 in debt. The excess
value of $160,000 was recorded as compensation expense.

In May 2006, a subsidiary of the Company issued common stock valued at $255,000
to a related party as satisfaction of debt totaling $181,671. The value of the
shares recorded exceeded the liability by $73,329, which was recorded as
compensation expense.

In May, 2006, Crown issued 150,000 shares of its common stock to settle a
$15,000 stock payable liability incurred in 2005.

NOTE 9 - INCOME TAXES

Crown uses the liability method, where deferred tax assets and liabilities are
determined based on the expected future tax consequences of temporary
differences between the carrying amounts of assets and liabilities for financial
and income tax reporting purposes. During 2006 and 2005, Crown incurred net
losses and, therefore, has no tax liability. The net deferred tax asset
generated by the loss carry-forward has been fully reserved. The cumulative net
operating loss carry-forward is approximately $6,100,000 at December 31, 2006,
and will expire in the years 2013 through 2025. The Company's valuation
allowance increased by $27,429 and $82,000 in 2006 and 2005, respectively.

At December 31, 2006, deferred tax assets consisted of the following:

Deferred tax assets
  Net operating losses         $ 2,088,429
  Less:  valuation allowance    (2,088,429)
                               -----------
Net deferred tax asset         $         0
                               ===========

NOTE 10 - COMMITMENTS AND CONTINGENCIES

Crown shares office space with its attorney in California at no charge. There
are no commitments going-forward and the rent expense for the years ended
December 31, 2006 and 2005 were $0 and $48,823 respectively.

NOTE 11 - STOCK OPTION PLAN

In 2006, Crown adopted the Crown Partners, Inc. 2006 Stock Option Plan "2006
Plan"). The Plan provides for the granting of stock options and other stock
grants to certain directors, key employees and certain independent contractors
of Crown. Options granted under the Plan may be either incentive stock options
or nonqualified stock options. Incentive stock options ("ISO") may be granted
only to Company employees (including officers and directors who are also
employees). Nonqualified stock options ("NSO") may be granted to Company
employees and consultants. Crown has reserved 10,000,000 shares of common stock
for issuance under the Plan.


                                       17
<PAGE>

Options under the Plan may be granted for periods of up to ten years and at an
exercise price equal to the estimated fair value of the shares on the date of
grant as determined by the Board of Directors, provided, however, that the
exercise price of an ISO and NSO granted to a 10% shareholder shall not be less
than 110% of the estimated fair value of the shares on the date of grant. To
date, options granted generally are exercisable immediately as of the effective
date of the option agreement.

Summary information regarding options is as follows:

<TABLE>
<CAPTION>
                                                                        Weighted
                                               Weighted                  average
                                                average   Aggregate     remaining
                                               exercise   intrinsic    contractual
                                    Options      price      value     life (years)
                                   ---------   --------   ---------   ------------
<S>                                <C>           <C>         <C>          <C>
Outstanding at January 1, 2006            --     $  --       $--           --
Granted                            9,000,000      0.10        --          5.0
Exercised                                 --        --        --           --
Forfeited                                 --        --        --           --
Expired                                   --        --        --           --
                                   ---------     -----       ---          ---
Outstanding at December 31, 2006   9,000,000     $0.10       $--          5.0
Exercisable at December 31, 2006   9,000,000        --        --           --
</TABLE>

We adopted SFAS No. 123R effective January 1, 2006. In our statement of
operations for the year ended December 31, 2006, we recorded $625,880 of
compensation cost for stock option share-based payment arrangements. No stock
options were exercised during the year ended December 31, 2006.

During the year ended December 31, 2006 the fair value of each stock option
award was determined as of the date of grant using the Black-Scholes
option-pricing model with the following assumptions:

Expected Volatility       245.2%
Expected term (years)         5
Risk-free interest rate    4.51%
Expected dividend yield      --

Expected volatility is based solely on historical volatility of our common stock
over the period commensurate with the expected term of the stock options. We
rely solely on historical volatility because we do not have traded options. The
expected term calculation for stock options is based on the actual vesting
period of the options. The risk-free interest rate is based on the U.S. Treasury
yield in effect at the time of grant for an instrument with a maturity that is
commensurate with the expected term of the stock options. The dividend yield of
zero is based on the fact that we have never paid cash dividends on our common
stock, and we have no present intention to pay cash dividends.


                                       18
<PAGE>

NOTE 12 - SALE OF EQUITY INVESTMENT

In July, 2005, Crown sold its approximate 29% interest (unrestricted common
stock) in National Healthcare Technology, Inc. ("NHT") to an unrelated party for
$500,000 cash and assumed third party liabilities of NHT of $57,894. Costs
associated with the transaction were $1,240. Crown had written off its
investment in NHT in prior years, resulting in a gain from the sale of $440,866.
In addition, Crown retained 22,800 shares of common stock in NHT common stock it
had been previously issued and received an additional 905,438 shares of NHT
common stock. All the shares of common stock owned by Crown were restricted as
of December 31, 2005. During 2006, Crown sold most of the remaining shares of
NHT and recognized a gain of $124,511. At December 31, 2006, the Company held
87,111 shares of NHT, which shares were sold during the first quarter of 2007.

Item 10. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

There were no disagreements with accountants on accounting and financial
disclosure during the relevant period.

ITEM 9. CONTROLS AND PROCEDURES

(a)  Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined
in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"),
our principal executive officer and principal financial officer have concluded
that as of the end of the period covered by this annual report on Form 10-KSB
such disclosure controls and procedures were not effective to ensure that
information required to be disclosed by us in reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in Securities and Exchange Commission rules and
forms, because of several adjustments required by our auditors predominantly in
the areas of debt and equity. Specifically, our independent auditors identified
deficiencies in our internal controls and disclosure controls expense
recognition and issuances of our stock and stock options. Appropriate
adjustments and footnote disclosures have been recorded and disclosed in our
Annual Report on Form 10-KSB. We are in the process of improving our internal
controls in an effort to remediate these deficiencies through the implementation
of better controls and procedures over expense recognition and stock and stock
option issuances, and improving supervision and training of our accounting
staff. We are continuing our efforts to improve and strengthen our control
processes and procedures to fully remedy these deficiencies. Our management and
directors will continue to work with our auditors and other outside advisors to
ensure that our controls and procedures are adequate and effective.


                                       19
<PAGE>

Inherent Limitations on Control Systems

Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues and instances of
fraud, if any, will be or have been detected. These inherent limitations include
the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of simple error or mistake. Additionally, controls
can be circumvented by the individual acts of some persons, by collusion of two
or more people, or by management override of the control. The design of any
system of controls also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions;
over time, control may become inadequate because of changes in conditions, or
the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over
financial reporting identified in connection with the evaluation required by
paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our
fourth fiscal quarter that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.

Part III

Item 10. Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.

Identification of Directors and Executive Officers of the Company

The following table sets forth the names and ages of all directors and executive
officers of the Company and all persons nominated or chosen to become a
director, indicating all positions and offices with the Company held by each
such person and the period during which he has served as a director:

The principal executive officers and directors of the Company are as follows:

Name                  Position             Term(s) of Office
----                  --------             -----------------
Claudia Zaman         Director, CEO, CFO   Sept 9, 2006 to the present

Dr. Sadegh Salmassi   Director             November, 2003 to the present

Steven Onoue          Director             July, 2002 to the present

Family Relationships. There are no family relationships between any of the
officers and directors.

Business Experience. The following is a brief account of the business experience
during at the least the last five years of the directors and executive officers,
indicating their principal occupations and employment during that period, and
the names and principal businesses of the organizations in which such
occupations and employment were carried out.


                                       20
<PAGE>

CLAUDIA ZAMAN. Ms. Zaman is an attorney in private practice in Los Angeles,
California. Ms. Zaman has been a sole practitioner in California since 1996. Ms.
Zaman graduated from the University of Denver School of Law and is licensed to
practice in California and Colorado. Ms. Zaman has a Bachelor of Arts in
International Relations and a Bachelor of Science in Computer Science from
Florida International University.

Ms. Zaman is presently CEO and CFO of Crown Equity Holdings Inc., a subsidiary
of the Company which trades on the OTC Electronic Bulletin Board under the
symbol "CEQN."

SADEGH SALMASSI, M.D. Dr. Salmassi is a physician in private practice in Delano,
California. Dr. Salmassi graduated from Pahlavi University School of Medicine in
1973 and came to the United States in 1975 to complete his residency training at
the University of Illinois in Chicago, Illinois. Dr. Salmassi began practicing
medicine in Illinois in 1978. Dr. Salmassi is Board Certified by the American
Board of Pathology in Anatomic and Clinical Pathology as well as being Board
certified by the American Board of General Practice in General Medicine and
Surgery. Dr. Salmassi is a Fellow in the College of American Pathologists, a
Fellow of the American College of International Physicians and a Fellow in the
American Academy of Family Physicians.

Dr. Salmassi is presently a director of Crown Equity Holdings Inc., a subsidiary
of the Company which trades on the OTC Electronic Bulletin Board under the
symbol "CEQN."

STEVEN ONOUE. Mr. Onoue has been employed as vice president and manager of
Sanitec(TM) Services of Hawaii, Inc., a wholly-owned subsidiary of Crown
Partners, Inc., since 2000. Prior to that, Mr. Onoue was the president of Cathay
Atlantic Trading Company in Honolulu, Hawaii which traded in hard commodities
and acted as consultant to many construction and renovation projects. Mr. Onoue
acts as a community liaison and legislative analyst to Rep. Suzuki of the State
of Hawaii. Mr. Onoue has been a registered securities professional as well as a
being involved in real estate in Hawaii for more than 15 years.

Mr. Onoue is presently an officer and director of Crown Equity Holdings Inc., a
subsidiary of the Company which trades on the OTC Electronic Bulletin Board
under the symbol "CEQN."

Identification of Certain Significant Employees. The Company does not employ any
persons who make or are expected to make significant contributions to the
business of the Company.

CONFLICTS OF INTEREST

Most of the Officers and Directors of the Company will devote only a small
portion of their time to the affairs of the Company, estimated to be no more
than approximately 5 hours per month. There will be occasions when the time
requirements of the Company's business conflict with the demands of their other
business and investment activities. Such conflicts may require that the Company
attempt to employ additional personnel. There is no assurance that the services
of such persons will be available or that they can be obtained upon terms
favorable to the Company.


                                       21
<PAGE>

There is no procedure in place which would allow the Officers and Directors to
resolve potential conflicts in an arms-length fashion. Accordingly, they will be
required to use their discretion to resolve them in a manner which they consider
appropriate.

The Company's Officers and Directors may actively negotiate or otherwise consent
to the purchase of a portion of their common stock as a condition to, or in
connection with, a proposed merger or acquisition transaction. It is anticipated
that a substantial premium over the initial cost of such shares may be paid by
the purchaser in conjunction with any sale of shares by the Company's Officers
and Directors which is made as a condition to, or in connection with, a proposed
merger or acquisition transaction. The fact that a substantial premium may be
paid to the Company's Officers and Directors to acquire their shares creates a
potential conflict of interest for them in satisfying their fiduciary duties to
the Company and its other shareholders. Even though such a sale could result in
a substantial profit to them, they would be legally required to make the
decision based upon the best interests of the Company and the Company's other
shareholders, rather than their own personal pecuniary benefit.

Item 11. Executive Compensation.

During fiscal 2006, and as of the date of the filing of this report, none of the
Company's officers were paid any compensation by the Company except for Claudia
Zaman. Ms. Zaman receives compensation for the legal services she provides the
Company. During 2006, the Company also issued 1,800,000 shares of its common
stock to Ms. Zaman as partial compensation for her past legal services.
Directors are entitled to reimbursement for reasonable travel and other
out-of-pocket expenses incurred in connection with attendance at meeting of the
Board of Directors.

The Company has no material bonus or profit-sharing plans pursuant to which cash
or non-cash compensation is or may be paid to the Company's directors or
executive officers.

The Company has no compensatory plan or arrangements, including payments to be
received from the Company, with respect to any executive officer or director,
where such plan or arrangement would result in any compensation or remuneration
being paid resulting from the resignation, retirement or any other termination
of such executive officer's employment or from a change-in-control of the
Company or a change in such executive officer's responsibilities following a
change-in-control and the amount, including all periodic payments or
installments where the value of such compensation or remuneration exceeds
$100,000 per executive officer.

During the last completed fiscal year, no funds were set aside or accrued by the
Company to provide pension, retirement or similar benefits for Directors or
Executive Officers.

The Company has no written employment agreements.

In August, 2005, the Company approved the Non-Employee Directors, Advisors and
Consultants Retainer Stock Plan for 2005. The Plan reserves 2,000,000 shares of
the Company's common stock for issuance to non-employees, advisors and
consultants. The Company registered the stock under the Plan in August, 2005 and
issued the shares in May, 2006 to Ms. Zaman and to an outside consultant.


                                       22
<PAGE>

Termination of Employment and Change of Control Arrangement. Except as noted
herein, the Company has no compensatory plan or arrangements, including payments
to be received from the Company, with respect to any individual names above from
the latest or next preceding fiscal year, if such plan or arrangement results or
will result from the resignation, retirement or any other termination of such
individual=s employment with the Company, or from a change in control of the
Company or a change in the individual=s responsibilities following a change in
control.

Compensation Pursuant to Plans. Other than disclosed above, the Company has no
plan pursuant to which cash or non-cash compensation was paid or distributed
during the last fiscal year, or is proposed to be paid or distributed in the
future, to the individuals and group described in this item.

Item 12. Security Ownership of Certain Beneficial Owners and Management.

There were 23,587,983 shares of the Company's common stock issued and
outstanding on December 31, 2006. No preferred shares were issued and
outstanding at December 31, 2006. The following tabulates holdings of shares of
the Company by each person who, subject to the above, at the date of this
Report, holds or owns or is known by Management to own beneficially more than
five percent (5%) of the Common Shares of the Company and, in addition, by all
directors and officers of the Company individually and as a group.

                                   Amount
Name and Address of           of Common Shares
Beneficial Owner               Currently Owned   Percent
---------------------------   ----------------   -------
Cede & Co                        8,387,238        35.56
27430 Riverside Lane
Valencia CA 91354

Tisa Capital Corp.               5,670,116        24.04
27430 Riverside Lane
Valencia CA 91354

Steven Onoue (1)                 2,163,190         9.17
27430 Riverside Lane
Valencia CA 91354

Claudia Zaman(1)(2)              2,106,000         8.93
27430 Riverside Lane
Valencia, CA  91354

Dr. Sadegh Salmassi(1)               6,350         0.03
27430 Riverside Lane
Valencia, CA  91354

Phoenix Consulting Services      3,733,334        15.83
27430 Riverside Lane
Valencia CA 91354

Zaman & Company(2)               1,250,000         5.30
27430 Riverside Lane
Valencia CA 91354

All directors and officers
as a group(3)                    4,275,540        18.13

(1)  Denotes officer and/or director.


                                       23
<PAGE>

(2)  Ms. Zaman is an officer and director of Zaman & Company but disclaims
     beneficial ownership of its shares of the Company's common stock.

Changes in Control. There are no arrangements known to the Company, including
any pledge of securities of the Company, the operation of which may at a
subsequent date result in a change of control of the Company.

Item 13. Certain Relationships and Related Transactions.

The Company presently leases no office space of its own but shares office space
with its CEO at no cost to it. The Company anticipates that this space is
sufficient for the near future.

During the year ended December 31, 2006, the Company continued to pay certain
expenses and obligations of its subsidiaries in order that they could continue
to operate. In the event that these subsidiaries are acquired or merged into
other entities, the Company anticipates being repaid for these advances.
However, in the event that these companies are never merged or acquired, the
Company may never be repaid. In addition, the Company may not continue to have
the ability to continue advancing funds for operations for these entities. In
the event that the Company cannot continue to fund their operations, these
subsidiaries may cease to operate and exist.

The Company entered into an agreement with an investor to invest $15,000 to the
Company to be used to bring USI's audits current so that USI can seek a merger
acquisition. The Company received $10,000 and the balance of $5,000 was paid to
USI's attorney for legal fees. As part of the agreement, the Company agreed to
issue 150,000 shares of the Company's common stock, in restricted form, to the
investor. The Company issued the shares in May, 2006.

When the Company sold its interest in NHT, it assumed NHT's outstanding accounts
payable as of the date of the transaction. At that time, the accounts payable
were approximately $59,000. As of December 31, 2006, that amount had been
satisfied and no further owed.

The Company reached an agreement with Steven Onoue, an officer and director, to
settle obligations owed to him by SSH through the issuance of stock of the
Company. Per the terms of the agreement the Company's recorded obligations to
Mr. Onoue were reduced from $207,051 to $185,569 which the parties agreed to
settle for the issuance of 1,855,569 shares of the Company's common stock. The
shares were issued in April, 2006. The Company recognized a gain on the
settlement of the liabilities of $92,785

In 2004, the Company received a non-refundable deposit of $45,520 from its
subsidiary, Micro Bio-Medical Waste Systems, Inc. ("CEQN") in connection with
CEQN proposed acquisition of Sanitec Services of Hawaii, Inc. ("SSH") and
recorded this liability on its books. Due to the cessation of SSH operations in
May, 2005, the Company recorded income of $45,520 from this transaction and
extinguished this liability.


                                       24
<PAGE>

In May, 2006, the Company issued 1,800,000 shares of its common stock to its
current CEO and attorney, Claudia Zaman, for past due legal services which the
Company owed her. As of December 31, 2006, the Company still owed Ms. Zaman over
$80,000 for legal services.

Item 14. Exhibits and Reports on Form 8-K.

(a)  Financial Statements and Schedules

The following financial statements and schedules are filed as part of this
report:

Independent Auditors Report dated April 10, 2007
Consolidated Balance Sheet
Consolidated Statements of Operations
Consolidated Statement of Changes in Stockholders' Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

List of Exhibits

The following exhibits are filed with this report.

Financial Statements for the Year Ended December 31, 2006.

(b) There were no Reports filed on Form 8-K during the fourth quarter of the
Company's fiscal year ended December 31, 2006.

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

April 13, 2007                            CROWN PARTNERS, INC.


                                          /s/ Claudia Zaman
                                          --------------------------------------
                                          Claudia Zaman, CEO, CFO, Director


April 13, 2007                            /s/ Dr. Sadegh Salmassi
                                          --------------------------------------
                                          Dr. Sadegh Salmassi, Director


April 13, 2007                            /s/ Steven Onoue
                                          --------------------------------------
                                          Steven Onoue, Director


                                       25