RESTATEMENT OF PRIOR PERIOD

3 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Intangible Assets

The original accounting for intangible assets failed to appropriately record the write-off of certain domain names that were not renewed based on changes and circumstances in their fair value, current industry trends that relate to the domain name, existing web-based projects being undertaken for our owned and operated websites and/or those of our clients, if the domain names have a minimum amount of monthly organic search traffic, if the keyword terms associated with a domain name are of high value, or if we believe the domain name will maintain a reasonable to high resale value.

The effect of these changes did not have a significant impact to the condensed consolidated balance sheet, the condensed consolidated statements of operations and cash flows for the quarter ended September 30, 2013. The effect of these restatements on previously issued interim financial statements was insignificant. Accordingly, the consolidated balance sheets and statements of operations and cash flows for the periods described in the preceding sentence have been retroactively adjusted as summarized below:

Beneficial Conversion Feature

The original accounting for the beneficial conversion feature failed to appropriately value the BCF consistent with the estimated fair value of the Company’s common stock. Accordingly, the Company recalculated the BCF and recorded the related change in the restated financial statements for period ended September 30, 2013.

The effect of these changes impacted the condensed consolidated statements of operations and cash flows for the quarter ended September 30, 2013. Accordingly, the condensed consolidated balance sheet and statement cash flows for the period described in the preceding sentence have been retroactively adjusted as summarized below:

Effect of Correction	As Previously Reported		Adjustment		As Restated

Statement of Operations for the period ended September 30, 2013:
Interest expense	$	(314,489)	$	307,937	$	(6,552)
Net Loss		(333,080)		307,937		(25,143)
Net Loss Available to common shareholders		(333,080)		307,937		(25,143)
EPS, Basic and Diluted	$	(0.01)	$	0.01	$	-

Statement of Cash flows for the period ended September 30, 2013:
Net Loss	$	(333,080)	$	307,937	$	(25,143)
Interest expense related to beneficial conversion feature	$	(314,489)	$	307,937	$	(6,552)

DOMAIN MEDIA CORP 10-Q