In a large saucepan, heat 3 tablespoons olive oil over medium heat. Add garlic and cook 1 minute.
Add crushed tomatoes, tomato sauce, 1/4 teaspoon dried oregano, 1/4 teaspoon salt, and crushed red pepper flakes.
Simmer sauce for 10 to 15 minutes, stirring occasionally. Remove from heat and set aside.
Preheat oven to 350 degrees and grease a 9x13-inch baking pan.
Place crackers in a large zip-top bag and crush until finely crushed.
In a large bowl, combine crackers crumbs and egg. Stir to mix.
Set aside 1/2 cup of the parmesan cheese and add the rest to the large bowl with the cracker mixture. Also add the garlic powder, pepper, remaining oregano, 1 teaspoon of salt and the ground chicken.
Mix with your hands until evenly combined. Shape mixture into 18 meatballs. You can use a 1/4 cup measuring cup to help you get them the right size.
Place meatballs in prepared baking dish. Pour sauce over them.
Arrange the mozzarella cheese on top of the meatballs.
Bake for 40 to 45 minutes.
While the meatballs bake, stir together the remaining 2 tablespoons of oil, the panko crumbs and remaining 1/4 teaspoon of salt in a small bowl.
Heat a small nonstick skillet over medium heat. Add panko crumb mixture and cook, stirring frequently, until golden.
When meatballs are done cooking, sprinkle the remaining Parmesan cheese on them and then sprinkle on the Panko crumb mixture.
Sprinkle with basil and serve.
Notes
Do not use 99% lean ground chicken. It doens't have enough fat in it and it will make dry meatballs.