U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                 Quarterly Report under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934


                       For the Period ended March 31, 2007

                        Commission File Number 333-135852


                               COASTAL MEDIA INC.
                 (Name of small business issuer in its charter)


        Nevada                        7812                      20-4952339
(State of incorporation)      (Primary SIC Number)      (IRS Employer ID Number)


                               1574 Gulf Road #139
                             Point Roberts, WA 98281
                    Phone: (360) 226-7310 Fax: (610) 643-9902
          (Address and telephone number of principal executive offices)


                             Jan Aaron Sigurgeirson
                               1574 Gulf Road #139
                             Point Roberts, WA 98281
                    Phone: (360) 226-7310 Fax: (610) 643-9902
            (Name, address and telephone number of agent for service)

Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period 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 whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [ ] No [X]

There were 3,600,000 shares of Common Stock outstanding as of March 31, 2007.
<PAGE>
                               COASTAL MEDIA, INC.

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

        Review Report                                                         3

        Balance Sheet                                                         4

        Statement of Operations                                               5

        Statement of Cash Flows                                               6

        Notes to Financial Statements                                         7

Item 2. Management's Discussion and Analysis or Plan of Operation            11

Item 3. Controls and Procedures                                              16

PART II. OTHER INFORMATION

Item 6. Exhibits                                                             17

Signatures                                                                   18

                                       2
<PAGE>
                               GEORGE STEWART, CPA
                     2301 SOUTH JACKSON STREET, SUITE 101-G
                            SEATTLE, WASHINGTON 98144
                        (206) 328-8554 FAX(206) 328-0383


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Coastal Media, Inc.

I have reviewed the condensed  balance sheet of Coastal Media,  Inc. as of March
31, 2007, and the related  condensed  statements of operations for the three and
nine months ended March 31, 2007and for the period from May 19, 2006 (inception)
to March 31, 2007,  and condensed  statements of cash flows for the six and nine
months ended March 31,  2007and for the period from May 19, 2006  (inception) to
March  31,  2007.  These  financial  statements  are the  responsibility  of the
company's management.

I conducted my review in  accordance  with the  standards of the Public  Company
Accounting  Oversight  Board  (United  States).  A review of  interim  financial
information  consists  principally of applying analytical  procedures and making
inquiries of persons  responsible  for financial and accounting  matters.  It is
substantially less in scope than an audit conducted in accordance with standards
of the Public Company Accounting  Oversight Board (United States), the objective
of which is the  expression of an opinion  regarding  the  financial  statements
taken as a whole. Accordingly, I do not express such an opinion.

Based on my review, I am not aware of any material  modifications that should be
made  to  the  accompanying  interim  financial  statements  for  them  to be in
conformity with generally accepted accounting principles in the United States of
America.

I have previously  audited,  in accordance with auditing standards of the Public
Company Accounting Oversight Board (United States), the balance sheet of Coastal
Media,  Inc. as of June 30,  2006,  and the related  statements  of  operations,
retained earnings and cash flows for the year then ended (not presented herein);
and in my report  dated July 13, 2006,  I expressed a going  concern  opinion on
those  financial  statements.  In my opinion,  the  information set forth in the
accompanying  condensed  balance sheet as of June 30, 2006, is fairly stated, in
all material  respects,  in relation to the balance sheet from which it has been
derived.


/s/ George Stewart, CPA
-------------------------------
Point Roberts, Washington
May 9, 2007

                                       3
<PAGE>
                               COASTAL MEDIA INC.
                          (A Development Stage Company)
                                  Balance Sheet
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                    As of              As of
                                                                   March 31,          June 30,
                                                                     2007               2006
                                                                   --------           --------
<S>                                                                <C>                <C>
                                     ASSETS

CURRENT ASSETS
  Cash                                                             $ 35,781           $  9,449
                                                                   --------           --------
TOTAL CURRENT ASSETS                                                 35,781              9,449

FIXED ASSETS
  Office Equipment                                                      393                 --
                                                                   --------           --------
TOTAL FIXED ASSETS                                                      393                 --
                                                                   --------           --------

      TOTAL ASSETS                                                 $ 36,174           $  9,449
                                                                   ========           ========

                       LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Loan Payable to a Director                                       $     --           $     --
                                                                   --------           --------

TOTAL CURRENT LIABILITIES                                                --                 --

      TOTAL LIABILITIES                                                  --                 --

STOCKHOLDERS' EQUITY
  Common stock, ($0.001 par value, 75,000,000 shares
   authorized; 3,600,000 and 2,000,000 shares issued and
   outstanding as of March 31, 2007 and December 31, 2006             3,600              2,000
  Additional paid-in capital                                         46,400              8,000
  Deficit accumulated during development stage                      (13,826)              (551)
                                                                   --------           --------
TOTAL STOCKHOLDERS' EQUITY                                           36,174              9,449
                                                                   --------           --------

      TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                     $ 36,174           $  9,449
                                                                   ========           ========
</TABLE>

                       See Notes to Financial Statements

                                       4
<PAGE>
                               COASTAL MEDIA INC.
                          (A Development Stage Company)
                             Statement of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                        May 19, 2006
                                             Nine Months          Three Months           (inception)
                                               Ended                 Ended                through
                                              March 31,             March 31,             March 31,
                                                2007                  2007                  2007
                                             -----------           -----------           -----------
<S>                                          <C>                   <C>                   <C>
REVENUES
  Revenues                                   $        --           $        --           $        --
                                             -----------           -----------           -----------
TOTAL REVENUES                                        --                    --                    --

PROFESSIONAL FEES                                  4,900                    --                 4,900
GENERAL & ADMINISTRATIVE EXPENSES                  8,375                 1,900                 8,926
                                             -----------           -----------           -----------
TOTAL GENERAL & ADMINISTRATIVE EXPENSES           13,275                 1,900                13,826
                                             -----------           -----------           -----------

NET INCOME (LOSS)                            $   (13,275)          $    (1,900)          $   (13,826)
                                             ===========           ===========           ===========

BASIC EARNINGS PER SHARE                     $     (0.01)          $     (0.00)
                                             ===========           ===========
WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING                     2,297,810             2,906,667
                                             ===========           ===========
</TABLE>


                       See Notes to Financial Statements

                                       5
<PAGE>
                               COASTAL MEDIA INC.
                          (A Development Stage Company)
                             Statement of Cash Flows
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                         May 19, 2006
                                                                    Nine Months       Three Months        (inception)
                                                                      Ended              Ended              through
                                                                     March 31,          March 31,          March 31,
                                                                       2007               2007               2007
                                                                     --------           --------           --------
<S>                                                                  <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                  $(13,275)          $ (1,900)          $(13,826)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:

  Changes in operating assets and liabilities:
    Loan Payable to a Director                                             --             (3,000)                --
                                                                     --------           --------           --------
        NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES           (13,275)            (4,900)           (13,826)

CASH FLOWS FROM INVESTING ACTIVITIES
  Office Equipment                                                       (393)              (393)              (393)
                                                                     --------           --------           --------
        NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES              (393)              (393)              (393)

CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of common stock                                              1,600              1,600              3,600
  Additional paid-in capital                                           38,400             38,400             46,400
                                                                     --------           --------           --------
        NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES            40,000             40,000             50,000
                                                                     --------           --------           --------

NET INCREASE (DECREASE) IN CASH                                        26,332             34,708             35,781

CASH AT BEGINNING OF PERIOD                                             9,449              1,074                 --
                                                                     --------           --------           --------

CASH AT END OF YEAR                                                  $ 35,781           $ 35,781           $ 35,781
                                                                     ========           ========           ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during year for:
  Interest                                                           $     --           $     --           $     --
                                                                     ========           ========           ========
  Income Taxes                                                       $     --           $     --           $     --
                                                                     ========           ========           ========
</TABLE>


                       See Notes to Financial Statements

                                       6
<PAGE>
                               COASTAL MEDIA INC.
                         (An Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 2007


NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Coastal Media Inc. (the Company) was incorporated under the laws of the State of
Nevada on May 19,  2006.  The  Company  was formed to engage in the  business of
manufacturing, marketing, distributing and selling its marine DVDs.

The  Company  is in the  development  stage.  Its  activities  to date have been
limited to capital formation, organization and development of its business plan.
The Company has not commenced operations.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING

The Company's  financial  statements  are prepared  using the accrual  method of
accounting. The Company has elected a June 30 year-end.

B. BASIC EARNINGS PER SHARE

In February 1997, the FASB issued  Statement of Financial  Accounting  Standards
("SFAS")  No.  128,  "Earnings  Per Share",  which  specifies  the  computation,
presentation  and  disclosure  requirements  for  earnings  (loss) per share for
entities with publicly held common stock. SFAS No. 128 supersedes the provisions
of APB No. 15, and requires the  presentation of basic earnings (loss) per share
and diluted earnings (loss) per share. The Company has adopted the provisions of
SFAS No. 128 effective May 19, 2006 (date of inception).

Basic net loss per share  amounts is computed  by  dividing  the net loss by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic  earnings  per share due to the lack of dilutive  items in
the Company.

C. CASH EQUIVALENTS

The Company considers all highly liquid  investments  purchased with an original
maturity of three months or less to be cash equivalents.

D. USE OF ESTIMATES AND ASSUMPTIONS

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates. In accordance with FASB 16 all
adjustments are normal and recurring.

                                       7
<PAGE>
                               COASTAL MEDIA INC.
                         (An Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 2007


NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

E. INCOME TAXES

Income  taxes are  provided in  accordance  with SFAS No. 109,  "Accounting  for
Income  Taxes".  A deferred tax asset or liability is recorded for all temporary
differences   between  financial  and  tax  reporting  and  net  operating  loss
carryforwards. Deferred tax expense (benefit) results from the net change during
the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion of all of the deferred
tax assets will be realized.  Deferred tax assets and  liabilities  are adjusted
for the effects of changes in tax laws and rates on the date of enactment.

F. PROPERTY AND EQUIPMENT

Property  and  equipment  are  stated  at cost  less  accumulated  depreciation.
Depreciation  is  provided  principally  on the  straight-line  method  over the
estimated  useful lives of the assets,  which are  generally 3 to 27 years.  The
amounts  of  depreciation  provided  are  sufficient  to charge  the cost of the
related assets to operations  over their  estimated  useful lives.  Upon sale or
other disposition of a depreciable property,  cost and accumulated  depreciation
are removed from the accounts and any gain or loss is reflected in other income.

The  Company  periodically  evaluates  whether  events  and  circumstances  have
occurred that may warrant  revision of the estimated useful life of fixed assets
or  whether  the  remaining  balance of fixed  assets  should be  evaluated  for
possible  impairment.  The Company uses an estimate of the related  undiscounted
cash  flows  over the  remaining  life of the fixed  assets in  measuring  their
recoverability.

NOTE 3. GOING CONCERN

The  accompanying  financial  statements are presented on a going concern basis.
The Company had limited  operations during the period from May 19, 2006 (date of
inception) to March 31, 2007 and generated a net loss of $13,826. This condition
raises  substantial  doubt  about the  Company's  ability to continue as a going
concern.  Because  the Company is  currently  in the  development  stage and has
minimal expenses, management believes that the company's current cash of $35,781
is  sufficient  to cover the  expenses  they will incur  during the next  twelve
months in a limited operations scenario or until they raise additional funding.

                                       8
<PAGE>
                               COASTAL MEDIA INC.
                         (An Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 2007


NOTE 4. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of
common stock.

NOTE 5. RELATED PARTY TRANSACTIONS

The Company neither owns nor leases any real or personal  property.  The Company
has been  paying a Jon Suk, a director,  $50 per month for use of his boat.  The
Company also paid Jan Aaron Sigurgeirson,  President,  $100 per month for use of
office space and services from  inception  until October 2006.  The officers and
directors of the Company may, in the future,  become  involved in other business
opportunities  as they become  available,  they may face a conflict in selecting
between the Company and their other business opportunities.  The Company has not
formulated a policy for the resolution of such conflicts.

NOTE 6. INCOME TAXES

                                                            As of March 31, 2007
                                                            --------------------
     Deferred tax assets:
     Net operating tax carryforwards                             $ 13,826
     Tax Rate                                                          34%
                                                                 --------
     Gross deferred tax assets                                      4,701
     Valuation allowance                                           (4,701)
                                                                 --------

     Net deferred tax assets                                     $      0
                                                                 ========

Realization of deferred tax assets is dependent upon  sufficient  future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce  taxable  income.  As the  achievement of
required  future taxable income is uncertain,  the Company  recorded a valuation
allowance.

NOTE 7. NET OPERATING LOSSES

As of March 31, 2007,  the Company has a net  operating  loss  carryforwards  of
approximately $13,826. Net operating loss carryforward expires twenty years from
the date the loss was incurred.

                                       9
<PAGE>
                               COASTAL MEDIA INC.
                         (An Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 2007


NOTE 8. STOCK TRANSACTIONS

Transactions,  other than  employees'  stock  issuance,  are in accordance  with
paragraph  8 of  SFAS  123,  "Share-Based  Payment".  Thus  issuances  shall  be
accounted  for  based  on  the  fair  value  of  the   consideration   received.
Transactions  with  employees'  stock issuance are in accordance with paragraphs
(16-44) of SFAS 123.  These  issuances  shall be accounted for based on the fair
value of the consideration  received or the fair value of the equity instruments
issued, or whichever is more readily determinable.

On May 19, 2006 the Company  issued a total of 2,000,000  shares of common stock
to two  directors  for cash in the  amount  of  $0.005  per share for a total of
$10,000.

On February 9, 2007 the Company  completed  its SB-2 offering and issued a total
of 1,600,000 shares of common stock to twenty eight unrelated investors for cash
in the amount of $0.025 per share for a total of $40,000.

As of March 31, 2007 the Company had 3,600,000 shares of common stock issued and
outstanding.

NOTE 9. STOCKHOLDERS' EQUITY

The  stockholders'  equity section of the Company contains the following classes
of capital stock as of March 31, 2007:

Common stock, $ 0.001 par value: 75,000,000 shares authorized;  3,600,000 shares
issued and outstanding.

                                       10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are still in our development stage and have no revenues to date.

We incurred operating expenses of $1,900 and $13,275 for the three and nine
month periods ended March 31, 2007, respectively. These expenses consisted of
general operating expenses incurred in connection with the day to day operation
of our business and compliance with filing requirements.

Our net loss for the three and nine months ended March 31, 2007 was $1,900 and
$13,275, respectively. Since we have only been incorporated since May 19, 2006,
no comparisons are included in this report to previous years.

Cash provided by financing activities since inception through March 31, 2007 was
$50,000. Funds in the amount of $10,000 resulted from the sale of common stock
to our directors, Mr. Jan Aaron Sigurgeirson and Mr. Suk, who each purchased
1,000,000 shares of common stock at $.005 on June 14, 2006.

In order to achieve our business plan goals, we required the funding from the
offering of registered shares pursuant to our SB-2 Registration Statement filed
with the SEC under file number 333-135852 which became effective on September
13, 2006. On February 9, 2007 the offering was closed after selling 1,600,000
shares at the offering price of $.025 for total proceeds of $40,000.

Our auditors have expressed their doubt about our ability to continue as a going
concern unless we are able to generate profitable operations.

LIQUIDITY AND CAPITAL RESOURCES

We expect that our current cash balance of $35,781 will allow us to complete the
next 6 months of our business plan without additional funds, at which time
revenues are expected to support continued operations. Our directors have
verbally agreed to loan the company funds to continue operations in a limited
scenario until sales will support operations. We currently have no plans to hire
additional employees in the next twelve months unless sales are sufficient to
cover the cost.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

                                      11
<PAGE>
PLAN OF OPERATION

COMPLETED MILESTONES TO IMPLEMENT OUR OPERATIONS

JUNE - AUGUST 2006:

Jon Suk secured the domain name coastalmarinemedia.com for our internet website.

Jan Aaron Sigurgeirson and Jon Suk began preparing M.V. Karmel Bar for
operations with hull preparation, powerplant and transmission general
maintenance. Jon Suk designed company logo and selected colors for marketing
collateral and researched and hired a professional video editor to gather advice
on appropriate techniques for gathering video footage. Jan Aaron Sigurgeirson
researched the availability of books and DVDs similar in subject matter to our
planned product.

Jon Suk and Jan Aaron Sigurgeirson conducted initial photography and videography
of the Ganges Harbour area of Salt Spring Island, B.C. for DVD content
development. Purchased and reviewed books and DVDs deemed to be in our similar
target market, for competitive research. Researched and purchased print media
magazines appropriate for potential advertising outlets for our products.
Researched advertising rates. Researched over the internet, online stores that
market and sell similar products. Jon Suk began to design graphics for company
uniform, consisting of baseball-style hats and golf shirts and t-shirts to be
worn by crew for all photography and videography in which our crew will appear.

SEPTEMBER - DECEMBER 2006:

Jon Suk and Jan Aaron Sigurgeirson continued photography and videography of Salt
Spring Island area and approaching passages. The imagery collected during our
marine operations will be used to develop visual content for the DVD and also to
populate our corporate website and planned online store.

Jon Suk researched and selected--on a per project basis--an artist skilled in
Adobe/Macromedia Flash to program the Flash portion of the DVD content. Marine
safety equipment was purchased for installation on the vessel.

Professional video editors were interviewed and a candidate was selected to
assist with editing of footage and composing video and sound for the DVD.

JANUARY - APRIL 2007:

In order to continue achieving our operational goals, our activities during this
period was directed toward securing funding via our SB-2 share offering.

Vessel maintenance for marine operations for the spring season was performed.
Draft design for the initial DVD's product packaging was developed. A plan for
the DVD's menu-driven user interface was developed.

                                       12
<PAGE>
FUTURE MILESTONES:

MAY 2007:

Jon Suk will design packaging insert and disc graphics for printing and
inclusion into the package of the final product. As we are test marketing the
product, the discs will be manufactured in-house utilizing recordable DVD media
and generic jackets, into which printed inserts will be placed. As each disc is
recorded singly, the company will issue in effect, a series of prototypes that
are refined continually. Until sales volumes exceed approximately 250 discs per
month, it is expected that the manufacturing can be retained in-house. When the
volume is exceeded, an outside manufacturer may be engaged to replicate the
discs. Jon Suk, who has experience working with disc duplication, will manage
this process once it becomes necessary to engage an outside vendor to produce
discs in quantity. Jon Suk will design layouts for print advertising to be sent
to magazines such as "Pacific Yachting" and "Sea." Jan Aaron Sigurgeirson will
conduct test marketing of the DVD at local sales outlets such as Volume 2 Books,
which specializes in marine-oriented publications and the online store. DVD
content will be revised by Jan Aaron Sigurgeirson as necessary according to
feedback received during test marketing. Jan Aaron Sigurgeirson is to conduct a
vessel haul-out for visual inspection of the hull and undertake any necessary
maintenance such as debris removal, repairs, replacement of zinc sacrificial
anodes, and application of anti-fouling coating. Jon Suk plans to build the
visual content of the website with existing images compiled to date, along with
stock images to be purchased from stock photo providers in order to continue to
develop a website that is visually engaging and consistent with the marketing
efforts of the company.

JUNE 2007:

Jon Suk and Jan Aaron Sigurgeirson will begin marine operations to develop new
content for inclusion in a planned follow-up release of a DVD covering the
Southern Gulf Islands of British Columbia and San Juan Islands of Washington
State. Key Southern Gulf Islands destinations include Bedwell Harbour, Montague
Harbour, and Tsehum Harbour. Key San Juan Islands destinations include Friday
Harbor and Roche Harbor. Jan Aaron Sigurgeirson plans to expand our local
exposure by sending samples of our products to marine specialty retailers in our
local target market areas such as Nikka Industries, in the Vancouver area, and
West Marine in the Victoria area. Company will continue placement of print
advertising in "Pacific Yachting" and "Sea" with Jon Suk managing the
communication with the publications. Jon Suk will launch an online store with a
secure shopping cart. To support internet store sales, keyword advertising
campaigns will be conducted by Jan Aaron Sigurgeirson via Google and other
online outlets. Our products will be made available for shipping to online
customers in Canada, the U.S., and internationally. To enable credit card
payment processing, we plan to enroll with PayPal which provides payment
processing for a commission, normally at 3.5% of the total sale.

JULY 2007:

We will continue placement of print advertising with Jon Suk managing the
communication with the publications. Depending on order/production requirements
a part-time production assistant may be needed to help manufacture DVDs, process
orders and payments, ship orders, order supplies and perform customer service

                                       13
<PAGE>
duties. There is currently no budget for staff and one will be hired for this
purpose if the sales volume and resultant revenue make staff necessary. Jan
Aaron Sigurgeirson will begin a direct marketing campaign to contacts made at
boat shows by mailing sample product to retailers in our target markets. Nikka
Fishing and Marine, Steveston Marine and Hardware, and West Marine are among the
key retailers we plan to solicit. Follow-up contact will be made by phone or
e-mail by Jan Aaron Sigurgeirson and Jon Suk. Jon Suk and Jan Aaron Sigurgeirson
will continue marine operations at the planned areas of coverage as the weather
will be optimal for ease and quality of photography. Jan will install a radar
system for the vessel and compile footage for the all weather and instrument
assisted navigation portions of the DVD.

AUGUST 2007:

Jon Suk and Jan Aaron Sigurgeirson will continue marine operations at the
planned areas of coverage which include the Southern Gulf Islands of British
Columbia and San Juan Islands of Washington State. Planned areas of focus for
this stage of the production cycle will be passages and approaches important to
the visitors of the Southern Gulf Islands which are Active Pass, Dodd Narrows,
Porlier Pass, and Boundary Pass. Jan Aaron Sigurgeirson will write the
accompanying script for the new visual footage. Company will continue placement
of print advertising, to be conducted by Jon Suk. We plan to continue expansion
of retail outlets for the DVDs in Canada and the U.S. through wholesale and
consignment with Jan Aaron Sigurgeirson managing the communications with
prospective customers.

SEPTEMBER 2007:

Jon Suk and Jan Aaron Sigurgeirson will continue marine operations at the
planned areas of coverage which include the Southern Gulf Islands of British
Columbia and San Juan Islands of Washington State. Key Southern Gulf Islands
destinations include Maple Bay, Wallace Island, and Winter Cove. Key San Juan
Islands destinations include Eastsound and Lime Kiln. Jon Suk and Jan Aaron
Sigurgeirson plan to collaborate on the composition of scripts for planned video
sections of the disc. Friends and associates in the marine industry will be
engaged to provide information or footage as appropriate to the sections of the
disc. Jan Aaron Sigurgeirson to conduct periodic maintenance of the vessel to
keep it in optimal operating condition. Planned tasks are visual inspection of
the vessel structure, powerplant operation, electrical system operation, safety
systems such as life vests and fire extinguishers, and changing of required
engine oil and components subject to wear-and-tear.

CRITICAL ACCOUNTING POLICIES

The un-audited financial statements as of March 31, 2007 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our June 30, 2006 audited financial statements and notes

                                       14
<PAGE>
thereto, which can be found in our Form SB-2 Registration Statement on the SEC
website at www.sec.gov under our SEC File Number 333-135852.

A. BASIS OF ACCOUNTING

The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected that June 30 end the accounting year.

B. BASIC EARNINGS PER SHARE

In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share", which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities with publicly held common stock. SFAS No. 128
supersedes the provisions of APB No. 15, and requires the presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective May 19, 2006 (date of
inception).

Basic net loss per share amounts is computed by dividing the net loss by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic earnings per share due to the lack of dilutive items in
the Company.

C. CASH EQUIVALENTS

The Company considers all highly liquid investments purchased with an original
maturity of three months or less to be cash equivalents.

D. USE OF ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. In accordance with FASB 16 all
adjustments are normal and recurring.

E. INCOME TAXES

Income taxes are provided in accordance with Statement of Financial Accounting
Standards No. 109 (SFAS 109), Accounting for Income Taxes. A deferred tax asset
or liability is recorded for all temporary differences between financial and tax
reporting and net operating loss carryforwards. Deferred tax expense (benefit)
results from the net change during the year of deferred tax assets and
liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted
for the effects of changes in tax laws and rates on the date of enactment.

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<PAGE>
Our Management does not believe that any recently issued, but not yet effective
accounting standards if currently adopted, would have a material effect on the
our current financial statements.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have no identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS

The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Form SB-2
Registration Statement, filed under SEC File Number 333-135852, at the SEC
website at www.sec.gov:

     Exhibit No.                          Description
     -----------                          -----------

        3.1          Articles of Incorporation*
        3.2          Bylaws*
       31.1          Sec. 302 Certification of Principal Executive Officer
       31.2          Sec. 302 Certification of Principal Financial Officer
       32.1          Sec. 906 Certification of Principal Executive Officer
       32.2          Sec. 906 Certification of Principal Financial Officer

                                       17
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of Section 13(a) 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.

                             Coastal Media Inc., Registrant


May 10, 2007                 By: /s/ Jan Aaron Sigurgeirson
                                 -----------------------------------------------
                                 Jan Aaron Sigurgeirson, Director, President and
                                 Principal Executive Officer


May 10, 2007                 By: /s/ Jon Suk
                                 -----------------------------------------------
                                 Jon Suk, Director, Treasurer,
                                 Chief Financial Officer and Principal
                                 Accounting Officer

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

                             Coastal Media Inc., Registrant


May 10, 2007                 By: /s/ Jan Aaron Sigurgeirson
                                 -----------------------------------------------
                                 Jan Aaron Sigurgeirson, Director, President and
                                 Principal Executive Officer


May 10, 2007                 By: /s/ Jon Suk
                                 -----------------------------------------------
                                 Jon Suk, Director, Treasurer,
                                 Chief Financial Officer and Principal
                                 Accounting Officer

                                       18