City Media, Inc.

During the quarter ended March 31, 2015, the Company acquired a 30% interest in Las Vegas Cannabis Info Center, Inc. in exchange for $25,000 cash and 25,000 shares of the Company’s common stock valued at $1 per share.   This transaction was booked at Fair Market Value based upon the market price of the Company’s common stock and value of the consideration paid.

Since these investments exceed 20% and/or allow us to exercise significant influence over management, the Company is following the guidance of ASC 323 for the equity method of recording investments.

With the recent addition of Ed Rosenthal as the Company’s president, the Company has begun research on plant terpenes and is investigating the feasibility and marketability of terpene based natural products.  The Company intends to acquire and/or develop hemp based products in 2015.

During the quarter ended June 30, 2015, the Company sold the majority of its hempcoin assets Rocky Mountain Ayre, Inc. (RMTN) in exchange for an approximate 8,745,000 shares of RMTN.  We believe the transaction brings value to the Company through ownership of RMTN and the Company’s continued ownership approximately 899,074,298 Hempcoins (HMP).  Additionally, the Company plans to expand into related additional areas they believe would be profitable for the Company and benefit its shareholders.  One such area is the cultivation and sale of industrial hemp.

Limited personnel; Reliance on third party.  During the fiscal quarter, our only personnel resources were the Company’s former president, chief executive officer, our treasurer and a third party accounting vendor.  We have terminated the accounting vendor during the fiscal quarter. The Company has now brought the accounting function directly under the CFO and hired an outside accounting advisor.  However, even with these additions, the company remains minimally staffed and has limited funds for staffing.  This could result in future errors or material misstatements.