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**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549**___________________**FORM 10-Q**___________________

**ý                                QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

  

For the quarterly period endedJune 30, 2008

  

OR

  

** ̈                                TRANSITION REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

For the transition period from         to

  

Commissionfile number 333-131948  

**DATA CALLTECHNOLOGIES, INC.**(Exact Name Of RegistrantAs Specified In Its Charter)
| Nevada                                   | 30-0062823                           |
|------------------------------------------|--------------------------------------|
| (State of Incorporation)                 | (I.R.S. Employer Identification No.) |
|                                     |                                 |
| 600    Kenrick, Suite B-12, Houston, TX  | 77060                                |
| (Address of Principal Executive Offices) | (ZIP Code)                           |

 Registrant'sTelephone Number, Including Area Code: (832) 230-2376

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or forsuch shorter period that the registrant was required to file such reports), and (2) hasbeen subject to such filing requirements for the past 90 days. Yes x No  ̈Indicate by check mark whether the registrant is a shell company (asdefined in Rule 12b-2 of the Exchange Act). Yes  ̈ No x

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or anon-accelerated filer.
| Large accelerated    filer  ̈ | Accelerated filer  ̈  | Non-Accelerated    filer  ̈  | Smaller reporting    company x |
|----------------------------------|-------------------------------|--------------------------------------|------------------------------------|

At June 30, 2008,the Registrant had 76,243,100 shares of common stock outstanding.

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**TABLE OF CONTENTS**
| Item                                  |                          | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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| **PART I - FINANCIAL    INFORMATION** |
|                                  |
| ITEM 1.                               |      |    FINANCIAL    STATEMENTS.
    3  
ITEM 2.
    
   MANAGEMENT'S    DISCUSSION AND ANALYSIS AND RESULTS OF OPERATION.
    3   ITEM 3.   QUANTITATIVE    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK6
ITEM 4.
    
   CONTROLS    AND PROCEDURES.
    6     
**PART II - OTHER    INFORMATION**
  
ITEM 1.
    
   LEGAL    PROCEEDINGS.
    6  ITEM 1A.   RISK FACTORS6
ITEM 2.
    
   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF    PROCEEDS
    6   
ITEM 3.
    
   DEFAULT    UPON SENIOR SECURITIES.
    6   
ITEM 4.
    
   SUBMISSION    OF MATERS TO A VOTE OF SECURITY HOLDERS.
    7   
ITEM 5.
    
   OTHER    INFORMATION.
    7   ITEM 6.   EXHIBITS.7
 
****
**PART I - FINANCIAL INFORMATION**

ITEM1. FINANCIAL STATEMENTS****Back toTable of Contents

The Registrant's unaudited interim financial statementsare attached hereto. UnauditedInterim Financial Statements

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONBack to Table ofContents

Some of the statements contained in this quarterlyreport of Data Call Technologies, Inc., Nevada corporation (hereinafter referred to as"we", "us", "our", "Company" and the"Registrant") discuss future expectations, contain projections of our plan ofoperation or financial condition or state other forward-looking information.Forward-looking statements give our current expectations or forecasts of future events.You can identify these statements by the fact that they do not relate strictly tohistorical or current facts. They use of words such as "anticipate,""estimate," "expect," "project," "intend,""plan," "believe," and other words and terms of similar meaning inconnection with any discussion of future operating or financial performance. From time totime, we also may provide forward-looking statements in other materials we release to thepublic.

**OVERVIEW**
***WhatIs Digital Signage?

Plasma and LCD displays arerapidly replacing printed marketing materials such as signs and placards, as well as theold fashioned whiteboard, for product and corporate branding, marketing and assistedselling. The appeal of instantly updating product videos and promotional messages on oneor a thousand remotely located displays is driving the adoption of this exciting marketingtool. James Bickers, senior editor of Digital Signage Today magazine recently describeddigital signage as “any form of business communication where a dynamic messagingdevice is used to take the place of, or supplement, other forms of messaging.” Thekey word in this definition of digital signage is “dynamic.” Digital signagepresentations are typically comprised of repeating loops of information used to brand,market or sell the owner’s products and services. But once seen, this informationbecomes repetitive and the viewer tunes it out, resulting in low retention of theclient’s message. As digital signage comes of age, the “dynamic”characteristic of the presentation has taken center stage.**DigitalSignage Comes of Age

Digital signage is coming of ageand DataCall Technologies has been there from the start. Four years ago, a company wantingto take the digital signage plunge was faced with a myriad of hardware and softwarecompanies, all offering their own “vision” of what digital signage should be.They were given the tools of digital signage, but were left pretty much left to their owndevices as to what to build. Those companies that took the early plunge where then facedwith the fact that no one had come before them to show the rights and wrongs, the dos anddon’ts of content development. But, even at this early stage of the game, DataCallrecognized that these pioneers of digital signage lacked a key component that would becomean integral part of any successful implementation—active content.
In the years since those early days of digital signage, the market hastaken care of weeding out the weaker providers of hardware and software. Companies nowhave a clearer understanding of what digital signage is, what is needed for a successfulimplementation and the best use of content space given their more-defined and attainablegoals. In the past two years, as the cost of platforms, supporting infrastructure anddisplays has fallen dramatically; digital signage has become more accessible to a widerrange of companies. And those companies are realizing that the initial, one-time cost ofgetting into the game is far outweighed by the cost of staying in the game, in the form ofongoing content development. As the cost of deployment decreased, companies began focusingon attention-grabbing content. Whether the goal of the presentation was product branding,marketing or assisted selling, content became king. Active content is on everyone’s“needs” list because it is proven to draw customers to the core message and keepcustomers engaged throughout the presentation, And DataCall stands ready to serve thisexploding market.
**The Needfor Speed--Active Content

Active content is that part of adigital signage presentation that is constantly updated with timely and relevantinformation. For instance, a typical presentation may contain ten 15-second loops thatprovide the primary message of the presentation, but the active content, such as thatprovided by DataCall, is updated with new information throughout the day. Those seeking toadd active content to their digital signage presentations are advised to employDataCall’s integrated content rather than shoehorning broadcast content into theirdigital signage presentation. 
However, by integrating DataCall’s active content alongside theirpresentations, companies can provide the entertainment content so necessary in dwell-timeretention without disrupting the core message of the presentation. Information categoriesprovided by DataCall include news, weather, sports, financial data and the latest trafficalerts. With such a broad range of offerings, companies have access to the active contentthey need, regardless of the market they are addressing. 
**DataCallOpportunities

The opportunities for DataCall inthe digital signage industry are countless. Many companies nowadays would outsource all orpart of their content creation. DataCall stands ready as their outsourced provider ofactive content data. Whether it’s general entertainment information (news, sports,stocks, etc.) or location-targeted active content (weather, traffic, etc), research isvalidating the long-held assumption--it is active content that draws viewers to digitalsignage and keeps them engaged throughout the presentation.
Over the past four years, DataCall has worked with the industry leadersin digital signage to develop the data formats and communication methods to allowDataCall’s active content to be easily integrated into their hardware and softwareproducts.
**The Stageis Set

The stage is set and the playersare on their marks. The experience and lessons learned by both providers and implementersof digital signage are converging at that point where explosive growth in the industry canbe realistically anticipated. DataCall is excited to be in the position they are, poisedto leverage their expertise and relationships in the digital signage industry to bring itsofferings to the next level.
Already, DataCall is actively developing the next generation in digitalsignage content. Delivering active content video is an opportunity that is in theimmediate future, as well as implementation of interactive digital signage. Whether it isthe use of radio frequency identification (RFID) to delivery active content directly tocustomers via their cell phone or engaging the customer to create their own digitalsignage experience via text messaging, DataCall will be at the forefront of the evolutionof digital signage--just as DataCall was at the forefront of the revolution of digitalsignage. DataCall is poised to ride this explosive growth in digital signage not just as aservice provider, but as a partner providing a key component to the most successfulimplementations of digital signage,
**Partners,Not Customers

DataCall’s approach tocustomer relations is to not accumulate customers, but to build partnerships. EachDataCall partner is as unique as the digital signage market they service—and each hastheir own requirements for active content. In developing active content for digitalsignage, DataCall identified three factors that had to be addressed—reliability,objectivity and ease of implementation. To address the reliability requirement, DataCallopted to license information from the leaders news, weather, sports and financial datarather than “scrapping” information from the Internet (which can be illegal) orpulling RSS feeds (which may come and go at the provider’s whim). Licensing data fromthese providers also satisfied the second requirement—objectivity. The Internet is aslittered of slanted opinions and hidden agendas as there are users of the Internet, Soarbitrarily allowing these “news” sources to go unchecked into DataCall’sactive content was completely unacceptable. Finally, the third requirement—ease ofimplementation—was address by both DataCall’s licensing of data and the methodby which it was disseminated to their partners.
DataCall understood that digital signage implementers had larger issuesto tackle than the multitude of licenses that would need to be managed and the varyingformats of the source data to be dealt with if active content was obtained from multiplevendors. DataCall offers a “one stop shop” for all of their active contentrequirements covered by a single license. Ease of implementation also would require thatthe multiple formats of all DataCall’s data providers be distilled into a singleformat. Because active content may be displayed in a multitude of ways (banners, tickers,scrolls or artistically integrated with the overall presentation), DataCall produced a setof common data layouts in the industry-standard XML (extensible markup language) format.Many partners find these formats to be easily integrated into their products, but inseveral cases, DataCall has produced customized data formats to the exact requirements oftheir partners. This customization ensures the highest level of reliable and ease ofintegration possible.
**Go ForLaunch

The stage is set and the playersare on their marks. Market demand, opportunity and technology converge at a single pointin time, and DataCall is there. Digital signage platforms are evolving to meet mass marketrequirements, costs for hardware and software are falling to the point of becomingcommodities and the markets for digital signage are clarifying through historical trialand error.**RESULTS OF OPERATIONS

The following discussion should be read in conjunction with ourfinancial statements.

Since our filing of our annual report, we have implemented numerouscost management measurements to reduce monthly expenditures. Our current rate of monthlycash expenditures are now averaging approximately $57,000 per month, compared to anapproximate monthly average of $104,000 for the six-month period ended June 30, 2007. Thisrepresents a 5% reduction in expenses over six months of the prior year. Furthermore, thisis a 5% reduction from the previous quarter. We will continue to maintain these efforts tostreamline operations, as we focus on increasing sales and gross revenues over the next 12months. We currently have no initial plans to increase the number of employees we employ.However, as new opportunities present themselves, we may find it necessary to bring humanresources on staff to accommodate the preparations for those opportunities.

Recent partner, marketing and/or customer agreements have allowed us toexpand our product line into the Public Access Broadcast arena (i.e. Leightronix), as wellas providing our product line to an industry leader in the ad-revenue based model ofdigital signage (i.e., AdTek Media). Additionally, we recently engaged Lamar Advertising,to provide Data Call content to their digital billboard solutions being implementedthroughout the country. Moving forward, we feel these three vertical market opportunitieswill provide strong positive growth over the next 36 months. 

Assuming we have sufficient working capital moving forward, we plan tocontinue to grow our business and market our Direct Lynk System to potential customersover the course of the next twelve months by marketing our technology to digital signagemanufacturers, trade magazines, trade shows and call centers. We will also continue, on alimited basis, our practice of providing potential customers free trials of the DirectLynk System, for which we will receive no revenue, in an attempt to build both productawareness for the Direct Lynk System and to potentially drive sales in the future, whichin the opinion of management, has been successful in building brand awareness for theDirect Lynk System and in bringing in new clients for subscriptions.

We are planning and negotiating with current vendors and partners, toexpand our offering to other lateral markets. Hardware, software, and sales processes arecurrently being modified and/or developed. Additionally, we are negotiating with anational broadcast news group to provide localized and repurposed video clips, through aData Call Technologies licensing agreement, to the digital signage space.

Projected revenue for Q3-2008 is $107,000. This represents a 27%increase over the previous quarter. Projected cash expenses for Q3-2008 is $109,000.Projected revenue for the next twelve (12) months of operations is $1,100,000, withprojected cash expenses of $770,000. The Company’s operations are projected to enter a cashflow positive position in the fourth quarter of 2008.
**Three and Six Months Ended June 30, 2008 Compared to Three and Six Months Ended June30, 2007**
Sales revenue for the three and six months ended June 30, 2008 were$83,745 and $154,372, respectively, compared to $47,373 and $55,413, respectively, for thethree and six-month periods ended June 30, 2007 representing an increase of 76.78% and178.58%, respectively, from the prior period. The increase in sales revenue was mainly dueto an increase subscriptions from current customers and new customer subscriptions.

Costs of sales for the three and six months ended June 30, 2008 were$9,952 and $23,869, respectively, compared to $13,462 and $20,207, respectively, for thethree and six-month periods ended June 30, 2007. Costs of sales do not increase indirector proportion to an increase in sales revenue because costs of sales are related tothe amount bandwidth required to provide the subscription services.

Gross margins for the three and six months ended June 30, 2008 were88.1% and 84.5%, respectively, compared to 71.6% and 63.5%, respectively, for the threeand six-month periods ended June 30, 2007. The increase in gross margin is directlyrelated to the explanation of decreases in costs of sales in the paragraph directly above.

Operating expenses for the three and six months ended June 30, 2008were $179,253 and $463,959, respectively, compared to $288,800 and $889,375, respectively,for the three and six-month periods ended June 30, 2007 representing a decrease of$109,547 or 37.9% and $425,416 or 47.8% decrease from the prior period. The significantdecrease in operating expenses is due to a decrease in employee compensation. Employeecompensation were 46.8% and 50.4% of total operating expenses for the three and six monthsended June 30, 2008, respectively, compared to 70.7% and 66.5%, respectively, for thethree and six-month periods ended June 30, 2007.

Net losses for the three and six months ended June 30, 2008 were $105,460 and $333,456,respectively, compared to $254,889 and $854,169, respectively, for the three and six-monthperiods ended June 30, 2007. The significant decrease net losses are due to the increasein sale revenues and a decrease in operating expenses as noted above.
**Liquidity and Capital Resources**
We had total current assets of $45,382, consisting of $3,820 of cash, $40,273 ofaccounts receivable and $1,289 if prepaid expenses. We had total current liabilities of$176,002 as of June 30, 2008, which represented $57,655 of accounts payable and $118,347in accrued salaries.

We had total non-current liabilities of $204,400 as of June 30, 2008,consisting of redeemable common stock. Redeemable common stock consisted of shares ofcommon stock sold to certain investors from 2003-2006, which investors may have ongoingrescission rights, even though those investors previously rejected our rescission offer tothem to return their shares of our common stock for their original subscription cost plusstatutory interest. While we are obligated to carry the $204,400 in redeemable commonstock on our balance sheet as a liability, we believe that the likelihood of any of theshareholders who hold those shares exercising their remaining rescission rights, if any,is very small.

We had working capital of $130,620 and a deficit accumulated during the developmentstage of $8,092,751 as of June 30, 2008.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKBack to Table ofContents

We have not enteredinto, and do not expect to enter into, financial instruments for trading or hedgingpurposes.

ITEM 4.CONTROLS AND PROCEDURES****Back to Table ofContents

*Evaluation of disclosure controls andprocedures.* As of June 30, 2008, the Company's chief executive officer and chieffinancial officer conducted an evaluation regarding the effectiveness of the Company'sdisclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) underthe  Exchange Act. Based upon the evaluation of these controls and procedures, ourchief executive officer and chief financial officer concluded that our disclosure controlsand procedures were effective as of the end of the period covered by this report.
***Management’sAnnual Report on Internal Controls Over Financial Reporting*

Our management is responsible forestablishing and maintaining adequate internal control over financial reporting, asdefined by SEC rules adopted under the Securities Exchange Act of 1934, as amended. Ourinternal control over financial reporting is designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. It consists of policies and procedures that:

1. Pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect our transactions anddisposition of our assets;2. Provide reasonable assurance that our transactions are recorded as necessary to permitpreparation of our financial statements in accordance with generally accepted accountingprinciples, and that our receipts and expenditures of our Company are being made only inaccordance with authorizations of our management and our directors; and3. Provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition, use, or disposition of our assets that could have a material effect on ourfinancial statements.

Under the supervision and withthe participation of management, including the Chief Executive Officer (CEO) and ChiefFinancial Officer (CFO), we made an assessment of the effectiveness of our internalcontrol over financial reporting as of June 30, 2008. In making this assessment, we usedthe criteria established in *Internal Control — Integrated Framework*issued bythe Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on ourevaluation, we concluded that our internal control over financial reporting was effectiveas of June 30, 2008.
*Changes in internal controls.*During the quarterly period covered by this report, no changes occurred in our internalcontrol over financial reporting that materially affected, or is reasonably likely tomaterially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

ITEM 1. LEGALPROCEEDINGS****  Back to Table ofContents

None.

ITEM 1A.RISK FACTORS

In addition to the otherinformation set forth in this report, you should carefully consider the factors discussedin Part I, “Item 1. Description of Business, subheading Risk Factors” inour Annual Report on Form 10-KSB for the year ended December 31, 2007, whichcould materially affect our business, financial condition or future results. The risksdescribed in our Annual Report on Form 10-KSB are not the only risks facing ourcompany. Additional risks and uncertainties not currently known to us or that we currentlydeem to be immaterial also may materially adversely affect our business, financialcondition and/or operating results. 

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSBack to Table ofContents

None.

ITEM3. DEFAULTS UPON SENIOR SECURITIES****Back to Table ofContents

None.

ITEM4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSBack to Table ofContents

None.

ITEM5. OTHER INFORMATION****Back to Table ofContents

None.

ITEM6. EXHIBITS****Back to Table ofContents

(a) The following documentsare filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Anydocument incorporated by reference is identified by a parenthetical reference to the SECfiling that included such document.

Exhibit    No.Description31.1Certification of CEO pursuant    to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the    Sarbanes-Oxley Act of 2002.31.2Certification of CFO pursuant    to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the    Sarbanes-Oxley Act of 2002.32.1Certification of CEO pursuant    to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of    2002.32.2Certification of CFO pursuant    to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of    2002.
SIGNATURES

Pursuant to therequirements of the Securities Exchange Act of 1934, this report has been signed below bythe following persons on behalf of the registrant and in the capacities and on the dateindicated.

/s/ Timothy E.VanceTimothy E. Vance   *CEO**   Dated: August 19, 2008*

/s/ Larry MosleyLarry Mosley   *CFO**   Dated: August 19, 2008*

**Unaudited Interim Financial    Statements**Back to    Table of Contents  **DATA CALL TECHNOLOGIES, INC.**(A Development Stage Company)**Balance Sheets**June 30, 2008 (Unaudited) and December 31, 2007 (Audited)  
Assets  **June 30, 2008**
**December 31, 2007**(Audited**)**Current assets:      Cash$3,820$30,413      Accounts receivable40,27320,644      Prepaid expenses1,289-     Total current    assets45,38251,057  Property    and equipment118,304118,304   Less accumulated    depreciation and amortization76,35663,200     Net property and    equipment41,94855,104  Other    assets5,2555,255       Total assets$92,585$111,416  
Liabilities    and Stockholders' Deficiency  Current    liabilities:      Accounts payable 57,65569,073  Accrued salaries    and related liabilities118,34752,550     Total current    liabilities176,002121,623Redeemable    common stock204,400204,400          Total liabilities380,402326,023  Stockholders'    equity:      Preferred stock, $.001 par value. Authorized 10,000,000 shares: None issued- -    Common stock, $.001    par value. Authorized 200,000,000 shares:     76,243,100 shares    issued and outstanding at June 30, 2008,     73,068,100 shares    issued and outstanding at    December 31, 200776,24373,068      Additional paid-in capital7,933,9707,744,565      Deficit    accumulated during the development stage(8,092,751)(7,759,295)  (82,538)58,338      Deferred    stock compensation(205,279)(272,945)        Total stockholders' equity (deficit)(287,817)(214,607)          Total liabilities and stockholders' equity $92,585$111,416  The accompanying notes are an integral part of these    financial statements.**DATA CALL TECHNOLOGIES, INC.**(A Development Stage Company)**Statements of Operations**Three and Six Months Ended June 30, 2008 and 2007    (Unaudited)**Cumulative****Three Months****Three Months****Six Months****Six Months****totals from****Ended****Ended****Ended****Ended****inception to****June 30, 2008****June 30, 2007****June 30, 2008****June 30, 2007****June 30, 2008**  Revenues   Sales$83,745$47,373$154,372$55,413$358,914   Cost of sales9,95213,46223,86920,207124,566     Gross margin73,79333,911130,50335,206234,348  Operating expenses:   Employee    compensation83,921204,093233,970591,5744,676,577   Contractual    services---25,000916,074   Legal and accounting46,10832,30882,323119,673879,924   Product development    costs81-2,65915,056409,574   Travel13,75124,69123,03576,643414,613   Office and    equipment rental8,6516,33620,19816,751158,269   Office supplies and    expenses5,2706,9815,9708,624178,748   Telephone5,9675,81311,59313,831118,969   Advertising4,6222,00057,5212,000367,444   Other4,077-13,5347,067130,551   Depreciation expense6,8056,57813,15613,15676,356     Total operating    expenses179,253288,800463,959889,3758,327,099            Net loss    before income taxes(105,460)(254,889)(333,456)(854,169)(8,092,751)  Provision for income taxes- - - - -        Net loss$(105,460)$(254,889)$(333,456)$(854,169)$(8,092,751)  Net loss per common share - basic and diluted: Net loss applicable to common shareholders$(0.00)$(0.00)$(0.00)$(0.01)    Weighted average common shares:    Basic and Diluted76,243,10063,325,60075,429,35062,015,984     The accompanying notes are an integral part of these    financial statements.**DATA CALL TECHNOLOGIES INC.**(A Development Stage Company)**Statements of Cash Flows**Six Months Ended June 30, 2008 and 2007 (Unaudited)** ****Cumulative****Six Months****Six Months****totals    from****Ended****Ended****inception    to****June 30, 2008****June 30, 2007****June    30, 2008**Cash flows from operating activities:      Net loss$(333,456)$(854,169)$(8,092,751)      Adjustments to reconcile net loss to net cash used in operating activities:    Depreciation13,15613,15776,356    Common stock issued    for services27,250125,0003,434,832       Stock options and warrants issued for services25,330130,271208,385    Amortization of    deferred compensation67,6669,723223,267      (Increase) decrease in operating assets:     Accounts    receivable(19,629)(25,546)(40,273)       Prepaid expenses(1,289)-(1,289)    Other assets-- (5,255)   Increase (decrease)    in operating liabilities:     Accounts payable(11,418)(13,990)57,655        Accrued salaries and related liabilities65,797-118,347          Net cash used in operating activities (166,593)(615,554)(4,020,726)  Cash flows    from investing activities      Purchase of property and equipment- -(118,304)          Net cash used in investing activities- -(118,304)  Cash flows    from financing activities:      Proceeds from issuance of common shares under private placement140,000400,0003,888,450      Proceeds from issuance of redeemable common shares under private placement- - 204,400  Proceeds from    short-term borrowing from shareholder- -50,000          Net cash provided by financing activities140,000400,0004,142,850            Net increase (decrease) in cash (26,593)(215,554)3,820Cash at    beginning of year30,413281,699- Cash at    end of year$3,820$66,145$3,820  Supplemental schedule of cash flow information:   Non-cash financing transactions:     Issuance of 500,000    common shares for conversion of short-term note payable to shareholder$-$50,000$50,000  The    accompanying notes are an integral part of these financial statements.
**DATA CALL TECHNOLOGIES, INC.**(A Development Stage Company)**Notes to Financial Statements**June 30, 2008
**(1) General**
Data Call Technologies, Inc. (the "Company") was incorporatedunder the laws of the State of Nevada in 2002. The Company's mission is to integratecutting-edge information delivery solutions that are currently deployed by the media, andput them within the control of retail and commercial enterprises. The Company's softwareand services put its clients in control of real-time advertising, news, and other content,including emergency alerts, within one building or 10,000, local or thousands of milesaway. The Company is as development stage company.

The accompanying unaudited financial statements have been prepared inaccordance with U. S. generally accepted accounting principles (“GAAP”) forinterim financial information and with the instructions to Form 10-QSB. Accordingly, theydo not include all of the information and footnotes required by GAAP for completefinancial statements. In the opinion of management, all adjustments (consisting of normalrecurring adjustments) considered necessary for a fair presentation have been included.Operating results for the six-month period ended June 30, 2008 are not indicative of theresults that may be expected for the year ending December 31, 2008.

As contemplated by the Securities and Exchange Commission (SEC) underRules of Regulation S-B, the accompanying financial statements and related footnotes havebeen condensed and do not contain certain information that will be included in theCompany's annual financial statements and footnotes thereto. For further information,refer to the Company's audited consolidated financial statements and related footnotesthereto included in the Company's annual report on Form 10-KSB for the year ended December31, 2007.
**(2) Use of Estimates**
The preparation of financial statements in conformity with U. S. GAAPrequires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during thereporting period. Actual results could vary from those estimates.
**(3) Recent Accounting Pronouncements**
In February 2007, the FASB issued SFAS No. 159, *“The Fair ValueOption for Financial Assets and Financial Liabilities – Including an amendment ofFASB Statement No. 115,”* which is effective for fiscal years beginning afterNovember 15, 2007. This statement permits entities to choose to measure many financialinstruments and certain other items at fair value. This statement also establishespresentation and disclosure requirements designed to facilitate comparisons betweenentities that choose different measurement attributes for similar types of assets andliabilities. Unrealized gains and losses on items for which the fair value option iselected would be reported in earnings.

In December 2007, the FASB issued SFAS No. 141R, *"BusinessCombinations"*. SFAS 141R requires the acquiring entity in a businesscombination to record all assets acquired and liabilities assumed at their respectiveacquisition-date fair values, changes the recognition of assets acquired and liabilitiesassumed arising from contingencies, changes the recognition and measurement of contingentconsideration, and requires the expensing of acquisition-related costs as incurred.SFAS 141R also requires additional disclosure of information surrounding a businesscombination, such that users of the entity's financial statements can fully understand thenature and financial impact of the business combination. SFAS 141R appliesprospectively to business combinations for which the acquisition date is on or after thebeginning of the first annual reporting period beginning on or after December 15, 2008. Anentity may not apply it before that date.

In December 2007, the FASB issued SFAS No. 160. *“NoncontrollingInterests in Consolidated Financial Statements-and Amendment of ARB No. 51.”* SFAS160 establishes accounting and reporting standards pertaining to ownership interests insubsidiaries held by parties other than the parent, the amount of net income attributableto the parent and to the noncontrolling interest, changes in a parent’s ownershipinterest, and the valuation of any retained noncontrolling equity investment when asubsidiary is deconsolidated. This statement also establishes disclosure requirements thatclearly identify and distinguish between the interests of the parent and the interests ofthe noncontrolling owners. SFAS 160 is effective for fiscal years beginning on or afterDecember 15, 2008.

Management has reviewed these new standards and believes that they haveno impact on the financial statements of the Company at this time; however, they may applyin the future.
**(4) Capital Stock, Options and Warrants**
The Company is authorized to issue up to 10,000,000 shares of PreferredStock, $.001 par value per share, of which none are presently outstanding. The PreferredStock may be issued in one or more series, the terms of which may be determined at thetime of issuance by the Board of Directors, without further action by stockholders, andmay include voting rights (including the right to vote as a series on particular matters),preferences as to dividends and liquidation, conversion, redemption rights and sinkingfund provisions.

The Company is authorized to issue up to 200,000,000 shares of CommonStock, of which 76,243,100 shares were issued and outstanding at June 30, 2008, and17,600,000 shares were reserved for issuance pursuant to the exercise of outstanding stockoptions and warrants as of June 30, 2008.

In addition to the amount of common shares issued and outstanding asnoted above, 2,044,000 shares were issued and are in the hands of shareholders at June 30,2008; however, these shares are not included in the Company’s permanent equity atJune 30, 2008. These shares are considered “Redeemable Common Stock” and areincluded in the financial statements as a long-term liability.

The following table summarizes information about options and warrantsoutstanding at June 30, 2008 and 2007:

**Shares**
**Weighted Average Exercise Price june 30, 2008**
**Shares**
**Weighted Average Exercise Price June 30, 2008**
Outstanding at    beginning of period
17,600,000
$
.10
3,500,000
$
.10
Granted
-
.10
12,050,000
.10
Exercised
-
-
-
-
Canceled
-
-
-
-
Outstanding at    end of period
17,600,000
$
.10
15,550,000
$
.10
Weighted average    fair value of options and warrants granted    during the period
.10
.10
None
$
.10Exercisable    at end of period
17,600,000
$
.10
15,550,000
.10
Stock-based compensation is composed of the following for thesix-months ended June 30, 2008 and 2007:

**2008**
**2007**
Stock-based    compensation at fair value
$
77,250
$
125,000
Options and    warrants
25,330
130,271
Amortization of    deferred stock    compensation
67,666
9,723Cancellation of previously issued    shares
(50,000)
-
Total    stock-based compensation expense
$
120,246
$
264,994******************* |