DOMAIN MEDIA CORP

In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires capitalized debt issuance costs to be classified as a reduction to the carrying value of debt rather than a deferred charge, as is currently required. This update will be effective for the Company for all annual and interim periods beginning after December 15, 2015 and is required to be adopted retroactively for all periods presented, and early adoption is permitted. The Company is currently evaluating the expected impact of this new accounting standard on its financial statements.

On July 11, 2013, we engaged Eventus Consulting, P.C. to provide accounting, forecasting, financial reporting and CFO-type services to the Company that they will render to the Company over a one-year period.  As part of that engagement, we issued 500,000 forfeitable common shares to their affiliated entity, Eventus Advisory Group, LLC.  These shares vest over one-year period and were valued at a fair value consistent with the value of the stock over the period of vesting.  The total amount recorded in general and administrative expense for the three and nine month periods ending March 31, 2014 was $12,500 and $31,250, respectively, which was based on a total of 500,000 shares earned at a fair value of the stock of $0.05 for the first three months and then $0.10 thereafter.  The president of Eventus Consulting, P.C. and Manager of Eventus Advisory Group, LLC, was also appointed as a member of the Company’s Advisory Board on July 11, 2013.

On December 3, 2014, we entered into a consulting agreement for investor relations services for an eighteen month term.  Pursuant to this agreement, we agreed to issue a total of 1,602,830 shares of common stock to be paid in three equal monthly installments consisting of one-third on each of December 3, 2014, January 3, 2015 and February 3, 2015.  These shares vest over an eighteen-month period and were valued at a fair value consistent with the value of the stock over the period of vesting.  On March 5, 2015, we terminated this agreement and, upon mutual agreement, the consultant agreed to forfeit and return all of the shares to the Company.  The total amount recorded in general and administrative expense for the period ending March 31, 2015 was $19,242 that was based on a total value of the shares that would have been earned through the termination date of the agreement at a fair value of the stock of $0.10.

On April 10, 2015, we entered into a consulting agreement for business advisory services for twelve-month term.  Pursuant to this agreement, we agreed to issue to the consultant a one-time fee equal to $15,000 in restricted common stock of the Company, or 150,000 shares at $0.10 per share.

Operating expenses decreased by $20,699, or 35%, during the three months ended March 31, 2015, as compared to the three months ended March 31, 2014.  The decrease in operating expenses is primarily attributable the expense associated with the decreases in advertising, legal fees, accounting fees, and dues and subscriptions.  This was partially offset by increases in web hosting, website development, and marketing consulting.