From what I can find:
Storm Moon Press is brand new and is putting together its first titles for 2010 release. Website here: http://stormmoonpress.com
Its owner/editor, S. L. Armstrong, has self published a few gay-male-erotica stories, and has been pretty vocal about the evils, real and imaginary, associated with commercial publishing such as agents/editors controlling what gets published ("tons of good books languish in slush piles and rejection bins because they arenít part of the current hot trend"), authors making little money on their works ("the publisher, on the other hand, is netting 10-15 times as much as the author"), and the snobbery inherent in the industry ("the sense of elitism that the publishers manage to foster").
So she has started up Storm Moon Press to publish not only her own works but also those of outside authors, (which, um, makes SMP a commercial publisher, right?). They're open to erotic romance submissions featuring gay, lesbian, menage, and poly in all genres. Authors will receive 25% on net for print and 40% on net for e-book, which is pretty much in line with most small presses (AFAIK). They'll release titles in both electronic and print form, using the POD model (LSI) for the latter.
So far, it looks to me like most start up micro presses -- a self publisher expanding a bit within his/her niche genre, using POD, paying standard royalty rates, becoming the editor as well as the publisher, etc. Except for this bit:
And here's where I wave my hand and say "Veinglory? Is this for real?"Accepted submissions will be offered a $1,000 advance against royalties. 25% of the advance will be paid upon signing of the contract, 50% given upon publication, and the remaining 25% will be given upon the author earning out the initial 75% of their advance.
How likely is it that a new startup micropress selling gay erotic romance is going to sell enough copies to net the author $1000 per title?