UNITED
STATES


SECURITIES AND
EXCHANGE COMMISSION


Washington, D.C.
20549




FORM 10-Q




þ
            
            QUARTERLY REPORT PURSUANT TO
      SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the quarterly period ended June 30, 2010o
            
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
      OF 1934For
      the transition period from _________ to __________


Commission
file number 0001254371




DEBUT BROADCASTING CORPORATION,
INC.


(Exact name of
registrant as specified in its charter)




Nevada
            
            88-0417389(State or
      other jurisdiction of incorporation or
organization)
            
            (I.R.S. Employer
      Identification No.)




1011 Cherry Avenue, Nashville,
      TN
            
            37203(Address
      of principal executive  offices)
            
            (Zip
      Code)


(615) 301-0001


(Registrants
telephone number, including area code)




Securities
Registered Pursuant to Section 12(b) of the Act:


None




Securities
Registered Pursuant to Section 12(g) of the Act:


Common Stock, par value
$0.003 per share





(Former name, former address, and
formal fiscal year if changed since last report)


None




Indicate
by check mark 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 þ  No o




Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, pr a smaller reporting company. See
definition of “accelerated filer”, “large accelerated filer”, and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check
one):


Large accelerated
fileroAccelerated fileroNon-accelerated fileroSmaller Reporting Companyþ




Indicate
by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes o  No þ


As of
June 30, 2010, there were 33,241,886 shares of common stock issued and
outstanding.










TABLE OF CONTENTS


PagePART
      I - FINANCIAL INFORMATIONItem
      1.
            
            Financial
      Statements
            
            3Item
      2.
            
            Management’s
      Discussion and Analysis or Plan of Operation
            
            18Item
      3.
            
            Qualitative
      and Quantitative Disclosures About Market Risk.PART
      II - OTHER INFORMATIONItem
      1.
            
            Legal
      Proceedings
            
            23Item
      2.
            
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            
            23Item
      3.
            
            Defaults
      Upon Senior SecuritiesItem
      4.
            
            Submission
      of Matters to a Vote of Security Holders
            
            25Item
      5.
            
            Other
      InformationItem
      6.
            
            Exhibits
            
            25





-2-




PART
I - FINANCIAL INFORMATION




Item
1. Financial
Statements





Our
financial statements included in this Form 10-Q are as follows:





F-1
            
            Condensed
      Consolidated Balance Sheets as of June 30, 2010 (unaudited) and December
      31, 2009 (audited);F-2
            
            Consolidated
      Statements of Operations (unaudited) for the six months ended June 30 2010
      and 2009;F-3
            
            Consolidated
      Statements of Cash Flows (unaudited) for the six months ended June 30,
      2010 and 2009;




These
financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America for interim financial
information and the SEC instructions to Form 10-Q. In the opinion of management,
all adjustments considered necessary for a fair presentation have been included.
Operating results for the interim period ended June 30, 2010 are not necessarily
indicative of the results that can be expected for the full
year.   Balance sheet information as of December 31, 2009 was
derived from the Company’s audited financial statements for the year ended
December 31, 2009.




-3-




DEBUT
BROADCASTING CORPORATION, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS





June
      30
              2010
            
            
            December
      31
              20091(Unaudited)ASSETSCurrent
      assetsCash
      and cash equivalents
            
            $
            60,845
            
            
            $
            62,471Accounts
      receivable, net
            
            
            1,211,419
            
            
            
            835,302Prepaid
      expenses
            
            
            23,778
            
            
            
            23,777Unexercised
      stock warrants
            
            
            1,004,658
            
            
            
            1,004,658Total
      current assets
            
            
            2,300,700
            
            
            
            1,926,208Property
      and equipment, net
            
            
            629,645
            
            
            
            636,130Deposits
            
            
            3,528
            
            
            
            8,628Goodwill
            
            
            459,280
            
            
            
            459,280FCC
      licenses
            
            
            1,509,500
            
            
            
            1,509,500Other
      intangible assets, net
            
            
            1,972,309
            
            
            
            1,977,408Total
      assets
            
            $
            4,902,653
            
            
            $
            4,539,746LIABILITIES
      AND STOCKHOLDERS' DEFICITCurrent
      liabilitiesAccounts
      payable
            
            $
            867,875
            
            
            $
            932,121Accrued
      expenses and taxes
            
            
            721,076
            
            
            
            148,533Notes
      payable to shareholders
            
            
            375,000
            
            
            
            750,000Lines
      of credit
            
            
            757,856
            
            
            
            716,407Current
      portion of long-term debt
            
            
            620,567
            
            
            
            586,167Unrecognized
      stock warrant loss
            
            
            1,035,523
            
            
            
            1,035,523Total
      current liabilities
            
            
            4,377,897
            
            
            
            4,168,751Long
      term liabilitiesLeases  payable
            
            
            —
            
            
            
            2,445Long-term
      debt
            
            
            790,044
            
            
            
            820,767Total
      long term liabilities
            
            
            790,044
            
            
            
            823,212Total
      liabilities
            
            
            5,167,941
            
            
            
            4,991,963Stockholders'
      deficitCommon
      stock - $.003 par value, 100,000,000 shares authorized
            
            
            99,726
            
            
            
            64,601Additional
      paid in capital
            
            
            3,472,496
            
            
            
            3,137,621Accumulated
      deficit
            
            
            (3,837,510
            )
            
            
            (3,653,939
            )Total
      stockholders' deficit
            
            
            (265,288
            )
            
            
            (451,717
            )Total
      liabilities and stockholders' deficit
            
            $
            4,902,653
            
            
            $
            4,539,746







1




The
accompanying notes are an integral part of these financial
statements.




-4-




DEBUT
BROADCASTING CORPORATION, INC.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)




Three
      Months Ended
              30-Jun
            
            
            Six
      Months Ended
              30-Jun2010
            
            
            2009
            
            
            2010
            
            
            2009Net
      Revenue
            
            $
            533,490
            
            
            
            584,068
            
            
            
            939,803
            
            
            
            1,058,395Operating
      expensesAdvertising
            
            
            700
            
            
            
            2,931
            
            
            
            14,740
            
            
            
            9,671Operating
      expense
            
            
            360,779
            
            
            
            588,029
            
            
            
            993,118
            
            
            
            1,184,944Depreciation
      expense
            
            
            26,252
            
            
            
            46,835
            
            
            
            41,283
            
            
            
            87,274Total
      operating expenses
            
            
            387,731
            
            
            
            637,795
            
            
            
            1,049,141
            
            
            
            1,281,889Operating
      income (loss)
            
            
            145,748
            
            
            
            (53,727
            )
            
            
            (111,937
            )
            
            
            (223,494
            )Other
      income and expenseInterest
      expense
            
            
            60,101
            
            
            
            76,119
            
            
            
            92,620
            
            
            
            152,911Income
      Tax
            
            
            1300
            
            
            
            960
            
            
            
            1300
            
            
            
            960Interest
      income
            
            
            (686
            )
            
            
            (2,949
            )
            
            
            (4,186
            )
            
            
            (4,700
            )Total
      other income and expenses
            
            
            60,715
            
            
            
            74,130
            
            
            
            89,734
            
            
            
            149,171Net
      income (loss)
            
            $
            85,033
            
            
            
            (127,857
            )
            
            
            (199,071
            )
            
            
            (372,665
            )




The
accompanying notes are an integral part of these financial
statements.




-5-




DEBUT
BROADCASTING CORPORATION, INC.


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)




Three
      Months Ended
                June
      30,
              
              
              Six
      Months Ended
                June
      30,2010
              
              
              2009
              
              
              2010
              
              
              2009Operating
      Activities:Net
      Income (Loss)
              
              
              85,043
              
              
              
              (127,857
              )
              
              
              (199,071
              )
              
              
              (372,665
              )Adjustments
      to reconcile net loss to net cash provided by/used in operating
      activities:Depreciation
      and amortization
              
              
              26,252
              
              
              
              55,584
              
              
              
              41,283
              
              
              
              104,774Changes
      in operating assets and liabilities, net effects of
      acquisitions(Increase)
      decrease in accounts receivable
              
              
              (324,389
              )
              
              
              (59,497
              )
              
              
              (381,505
              )
              
              
              149,133(Increase)
      decrease in other current assets
              
              
              42,649
              
              
              
              11,929
              
              
              
              10,487
              
              
              
              2,548Increase
      (decrease) in accounts payable
              
              
              (221,671
              )
              
              
              150,387
              
              
              
              (64,247
              )
              
              
              331,743Increase
      (decrease) in accrued expenses and taxes
              
              
              500,284
              
              
              
              14,821
              
              
              
              583,243
              
              
              
              (175,724
              )Net
      cash provided by (used in) operating activities
              
              
              108,167
              
              
              
              45,367
              
              
              
              (9,509
              )
              
              
              39,810Investing
      Activities:Purchases
      of property and equipment
              
              
              (23,931
              )
              
              
              22,013
              
              
              
              (34,798
              )
              
              
              11,201Net
      cash used in investing activities
              
              
              (23,931
              )
              
              
              22,013
              
              
              
              (34,798
              )
              
              
              11,201Financing
      Activities:Proceeds
      from issuance of stock warrants
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Proceeds
      from bank credit facility
              
              
              (12,553
              )
              
              
              (47,659
              )
              
              
              109,887
              
              
              
              (48,061
              )Proceeds
      from stockholder notes
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Repayment
      of long-term debt
              
              
              (35,970
              )
              
              
              (16,264
              )
              
              
              (442,205
              )
              
              
              (45,709
              )Proceeds
      from issuance of common stock
              
              
              -
              
              
              
              -
              
              
              
              375,000
              
              
              
              -Net
      cash provided by financing activities
              
              
              (48,523
              )
              
              
              (63,923
              )
              
              
              42,682
              
              
              
              (93,770
              )Net
      (decrease) increase in cash and cash equivalents
              
              
              35,713
              
              
              
              3,457
              
              
              
              (1,626
              )
              
              
              (42,759
              )Cash
      and cash equivalents at beginning of period
              
              
              25,132
              
              
              
              12,927
              
              
              
              62,471
              
              
              
              59,143Cash
      and cash equivalents at end of period
              
              
              60,685
              
              
              
              16,385
              
              
              
              60,685
              
              
              
              16,385




The
accompanying notes are an integral part of these financial
statements




-6-





DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


JUNE
30, 2010




Note
1 - Organization





Debut
Broadcasting Corporation, Inc. (the “Company”) is located in Nashville,
Tennessee and conducts business from its principal executive office at 1011
Cherry Avenue, Nashville, Tennessee 37203.  The Company relocated to
the current office location on May 1, 2010.  The Company produces and
distributes syndicated radio programs to radio stations across the United States
and Canada.  In addition, the Company owns and operates seven radio
stations in Mississippi.





The
Company maintains radio syndication in Nashville and produces and distributes 14
radio programs, which are broadcast over approximately 1,400 radio station
affiliates.  These radio programs have an estimated 40 million U.S.
listeners per week. In addition to its syndication services, the Company owns
and operates a multi-media studio with audio, video and on-line content
production capabilities.  This facility is located in Nashville,
Tennessee.  The Company also provides marketing, consulting and media
buying (advertising) for its radio broadcast station customers in the United
States.





Note
2 - Basis of Presentation and Interim Results





The
condensed consolidated financial statements include the accounts of the Company,
and its subsidiaries. The interim financial statements of the Company have been
prepared without audit.





Certain
information and footnote disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. We believe that the disclosures are adequate to
make the financial information presented not misleading. These condensed
financial statements should be read in conjunction with the audited consolidated
financial statements and the notes thereto for the year ended December 31, 2009.
All adjustments were of a normal recurring nature unless otherwise disclosed. In
the opinion of management, all adjustments necessary in order to make the
financial statements not misleading have been included. The results of
operations for such interim periods are not necessarily indicative of the
results for the full year.





Accounts
Receivable





We use
the allowance method for determining the collectability of our accounts
receivable.  The allowance method recognizes bad debt expense
following a review of the individual accounts outstanding in light of the
surrounding facts.  Accounts receivable are reported at their
outstanding unpaid principal balances reduced by an allowance for doubtful
accounts based on historical bad debts, factors related to specific customers’
ability to pay and economic trends.  We write off accounts receivable
against the allowance when a balance is determined to be
uncollectible.  Accounts receivable on the consolidated balance sheet
is stated net of our allowance for doubtful accounts.





Revenue
and Cost Recognition





The
Company recognizes its advertising and programming revenues for syndicated
programming when the Company’s radio shows air on its contracted radio station
affiliates.  Generally, the Company is paid by a national advertising
agency, which sells the commercial time provided by the
affiliate.





As the
Company earns its revenue from the national advertising agency, it also
recognizes any amounts due to the individual shows, which are based on the
audience level generated by the specific program.  Expenses are
accrued at the time the shows are run.





Consulting
projects are generally negotiated at a fixed price per project; however, if the
Company utilizes its advertising capacity as part of the consulting project, it
will charge the consulting client in the same manner as the affiliated stations
described more fully above.  Consulting fee income is recognized as
time is incurred under the terms of the contract
  -7-


DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


JUNE
30, 2010





Note 2 - Basis of
Presentation and Interim Results (continued)





The
Company recognizes its advertising and programming revenues for its owned and
operated radio broadcast stations when the advertising
airs.  Generally, the Company is paid by the local advertiser for
advertising coordinated  and contracted through a local employee sales
representative or sales manager.





Advertising





The
Company expenses advertising costs as they are incurred. Total advertising costs
of  $700 and $2,931 are included in the financial statements for the
three months ended June 30, 2010 and June 30, 2009, respectively. Total
advertising costs of $14,740 and $9,671 are including in the financial
statements for the six months ended June 30, 2010 and June 30, 2009,
respectively.





Financing





We will
require additional capital to execute on our plan to grow through the
acquisition of radio stations and radio station clusters. We do not presently
have sufficient capital to make additional acquisitions. We intend to raise
additional capital over the next twelve months through additional equity
offerings.





Although
we are and will be unable to predict the precise terms of any financing until
the time that such financing is actually obtained, it is likely that any such
financing will fit within the following parameters:




· None of the indebtedness to which the
Properties would be subject will be  recourse to the shareholders,
although some or all of the indebtedness may be recourse to  us.
However, each obligation will be secured by a first lien and/or second lien
security  interest in the financed Property. It is probable that all
of our Properties will be subject to  substantial security interests.
 
 · We expect any indebtedness will be
first repaid with the operating revenues of the  Properties. Operating
revenues will first be applied to the payment of interest,
principal  amortization (if any), and principal on primary
indebtedness. Next, operating revenues  will be applied to interest on
and principal of any subordinate financing.
 
 · Each of these financing arrangements
may be subject to acceleration in the event of default, including non-payment,
insolvency, or the sale of a Property. Upon an acceleration, if we are unable to
effect an immediate refinancing, we may lose one or more of our Properties by
foreclosure.





While
financing may initially be available only on a radio station by radio station
basis, we may eventually seek to refinance all of our Properties in one
non-recourse loan which will, in all likelihood, be secured by all of our
Properties.





In
connection with acquisitions, dispositions and financing, we will incur
appropriate accounting and legal fees.




-8-




DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010




Note 2 - Basis of
Presentation and Interim Results (continued)





Governmental Regulation of
Radio Broadcasting





The following is a brief summary of
certain provisions of the Communications Act, the Telecom Act, and related FCC
rules and policies (collectively, the "Communications Laws"). This description
does not purport to be comprehensive, and reference should be made to the
Communications Laws, public
notices, and decisions issued by the FCC for further information concerning the
nature and extent of federal regulation of radio broadcast stations. Failure to
observe the provisions of the Communications Laws can result in the imposition
of various sanctions, including monetary forfeitures and the grant of a
"short-term" (less than the maximum term) license renewal. For particularly
egregious violations, the FCC may deny a station's license renewal application,
revoke a station's license, or deny applications in which an applicant seeks to
acquire additional broadcast properties.





License Grant and Renewal.Radio broadcast licenses are granted and renewed for maximum terms of
eight years. Licenses are renewed by filing an application with the FCC.
Petitions to deny license renewal applications may be filed by interested
parties, including members of the public.





Service Areas.  The
area served by AM stations is determined by a combination of frequency,
transmitter power, antenna orientation, and soil conductivity. To determine the
effective service area of an AM station, the station’s power, operating
frequency, antenna patterns and its day/night operating modes are required. The
area served by an FM station is determined by a combination of transmitter power
and antenna height, with stations divided into classes according to these
technical parameters.




Class C
FM stations operate with the equivalent of 100 kilowatts of effective radiated
power (“ERP”) at an antenna height of up to 1,968 feet above average
terrain. They are the most powerful FM stations, providing service to a large
area, typically covering one or more counties within a state. Class B FM
stations operate with the equivalent of 50 kilowatts ERP at an antenna height of
up to 492 feet above average terrain. Class B FM stations typically
serve large metropolitan areas as well as their associated suburbs. Class A
FM stations operate with the equivalent of 6 kilowatts ERP at an antenna height
of up to 328 feet above average terrain, and generally serve smaller cities
and towns or suburbs of larger cities.




The
minimum and maximum facilities requirements for an FM station are determined by
its class. FM class designations depend upon the geographic zone in which the
transmitter of the FM station is located. In general, commercial FM stations are
classified as follows, in order of increasing power and antenna height:
Class A, B1, C3, B, C2, C1, C0, and C.


The
following table sets forth the market, call letters, FCC license classification,
antenna elevation above average terrain (for FM stations only), power and
frequency of all of our owned and operated stations as of June 30,
2009


Market
            
            Stations
            
            City of
      License
            
            Frequency
            
            
            Expiration Date of
      License
            
            FCC  Class
            
            Height Above Average Terrain
      (in feet)
            
            
            Power
      (in Watts)G
      Mississippi
            
            WNLA
      FM
            
            Indianola,
      MS
            
            
            105.5
            
            
            June
      1, 2012
            
            A
            
            
            190
            
            
            
            4400WBAQ
      FM
            
            Greenville,
      MS
            
            
            97.9
            
            
            June
      1, 2012
            
            C2
            
            
            502
            
            
            
            48000WIQQ
      FM
            
            Leland,
      MS
            
            
            102.3
            
            
            June
      1, 2012
            
            A
            
            
            446
            
            
            
            1650WNLA
      AM
            
            Indianola,
      MS
            
            
            1380
            
            
            June
      1, 2012
            
            D
            
            
            AM
            
            
            
            500WNIX
      AM
            
            Greenville,
      MS
            
            
            1330
            
            
            June
      1, 2012
            
            B
            
            
            AM
            
            
            
            1000WBBV
      FM
            
            Vicksburg,
      MS
            
            
            101.1
            
            
            June
      1, 2012
            
            C3
            
            
            394
            
            
            
            13000KLSM
      FM
            
            Tallulah,
      LA
            
            
            104.9
            
            
            June
      1, 2012
            
            A
            
            
            299
            
            
            
            3000




-9-




DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010





Note 2 - Basis of
Presentation and Interim Results (continued)





Compliance
with Environmental Laws





We have
not incurred and do not anticipate incurring any expenses associated with
environmental laws.





Note 3 - Initial Adoption of
FIN 48





We
adopted the provisions of Financial Accounting Standards Board (“FASB”)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109 (“FIN 48”)(“ASC 740-10”)(“ASC 810-10”),
on May 17, 2007. As required by the provisions for the topic of Accounting for
Uncertainty in Income Taxes of FASB ASC, our  interpretation increases
the relevancy and comparability of financial reporting by clarifying the way
companies account for uncertainty in income taxes. FIN 48 prescribes a
consistent recognition threshold and measurement attribute, as well as clear
criteria for subsequently recognizing, derecognizing and measuring such tax
positions for financial statement purposes. The interpretation also requires
expanded disclosure with respect to the uncertainty in income
taxes.  We do not believe that the timing of the adoption of FIN 46
has created any material differences in comparability between the six months
ended June 30, 2009, and the six months ended June 30, 2010.





Note 4 - Loss Per
Share





We
present basic loss per share on the face of the condensed consolidated balance
sheets.  As provided by SFAS No. 128, Earnings Per Share, basic loss
per share is calculated as income available to common stockholders divided by
the weighted average number of shares outstanding during the
period.





On January 2, 2008, the Company awarded
options to purchase 342,055 shares of its common stock to employees and valued
contractors.  These options were awarded at a strike price of $0.86
per share and vest ratably over five years.  The options will be
accounted for utilizing the Black-Scholes method of
valuation.





On
January 21, 2008, the Company issued to Remington Partners, Inc. a warrant to
purchase 62,500 shares of Company common stock at an exercise price of $1.00 per
share, with an expiration date three years after the date of
issuance.





On
February 26, 2008, the Company issued to Remington Partners, Inc. a warrant to
purchase 125,000 shares of Company common stock at an exercise price of $1.00
per share, with an expiration date three years after the date of
issuance.





On March
16, 2008, the Company issued to Holladay Broadcasting of Louisiana, LLC a
warrant to purchase 200,000 shares of Company common stock at an exercise price
of $1.00 per share, with an expiration date 10 years after the date of
issuance.





On June
18, 2008 the Company issued to Wolcott Squared a warrant to purchase 18,408
shares of our common stock at an exercise price of $0.3925 per share, with an
expiration date of December 17, 2017. The consideration received for this
warrant was services rendered in December of 2007 valued at $7,225.


On June
18, 2008, the Company issued to Wolcott Squared a warrant to purchase 22,279
shares of our common stock at an exercise price of $0.51 per share with an
expiration date of January 31, 2018.  The consideration received for
this warrant was services rendered in January of 2008 valued at
$11,362.





On June
18, 2008, the Company issued to Wolcott Squared a warrant to purchase 5,686
shares of our common stock at an exercise price of $0.51 per share with an
expiration date of February 29, 2018. The consideration received for this
warrant was services rendered in February of 2008 valued at $2,899.
  -10-





DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010





Note 4 - Loss Per Share
(continued)





On June
30, 2008, the Company issued to Politis Communications a warrant to purchase
10,254 shares of our common stock at an exercise price of $0.01 per share, with
an expiration date of June 29, 2018.  The consideration received for
this warrant was services rendered by Politis Communications.





On
September 22, 2008, the Company issued to Stephen Ross, a third party, a warrant
to purchase 18,000 shares of Company common stock at an exercise price of $0.50
per share, with an expiration date of January 31, 2011.  The
consideration we received for this warrant was legal services rendered by
Stephen Ross, Esq,





On
September 22, 2008, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date of September 30,
2011. The consideration we received for this warrant was legal services rendered
by Stephen Ross, Esq,





On
September 30, 2008, the Company issued  to Politis Communications a
warrant to purchase 5,495 shares of Company common stock at an exercise price of
$0.01 per share, with an expiration date of September 29, 2018.  The
consideration received for this warrant was public relations services rendered
by Politis Communications.





On
December 31, 2008, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date of December 31,
2011. The consideration we received for this warrant was legal services rendered
by Stephen Ross, Esq.





On
December 31, 2008, the Company issued to Politis Communications a warrant to
purchase 5,495 shares of Company common stock at an exercise price of $0.01 per
share, with an expiration date December 31, 2018.  The consideration
received for this warrant was public relations services rendered by Politis
Communications.





On April
1, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date
of  April 1, 2012. The consideration we received for this warrant was
legal services rendered by Stephen Ross, Esq.





On June
30, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date of  June
30, 2012. The consideration we received for this warrant was legal services
rendered by Stephen Ross, Esq.





On
September 30, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date
of  April 1, 2012. The consideration we received for this warrant was
legal services rendered by Stephen Ross, Esq.





On
December 31, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date of  June
30, 2012. The consideration we received for this warrant was legal services
rendered by Stephen Ross, Esq.





On
September 21, 2009, the Company issued to Riverfalls Financial Partners, LLC, an
option to purchase 30,000,000 shares of Company common stock at an exercise
price of $0.05 per share, with an expiration date of July 31,
2011.  This option was excluded from valuation as the volatility
associated with the stock price and the percentage of ownership this option
represents prevented an accurate valuation.  Should Riverfalls
Financial Partners, LLC execute this option their ownership would represent a
60% controlling interest in the company for an investment of
$1,500,00.




-11-




DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010





Note 4 - Loss Per Share
(continued)





The
Company revalues all warrants quarterly utilizing the Black-Scholes
method.





All of
these warrants were issued in reliance upon the exemption from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”),
as set forth in Section 4(2) under the Securities Act and Rule 506 of Regulation
D promulgated thereunder relating to sales by an issuer not involving any public
offering, to the extent an exemption from such registration was
required.





On
December 5, 2008, Politis Communications exercised a warrant to purchase 8,500
shares of Company common stock at $0.01 per share.  The shares were
authorized by Politis Communications as compensatory gifts to a number of
employees of Politis Communications.  No underwriters were involved in
this warrant exercise.  The underlying shares are restricted and carry
piggy-back registration rights.





On
December 5, 2008, The Company issued  a stock certificate to Mohammed
Rahman for 22,026 shares of our common stock at $0.07 per share.  We
issued the shares of common stock to Mohammed Rahman in exchange for services
rendered.  No underwriters were involved in this sale of
securities.  Outside of the existing vendor client relationship the
investor has no prior relationship to the company.  The underlying
shares are restricted and carry piggy-back registration rights.





On
December 3, 2008, The Company issued  a stock certificate to an
officer for 42,000 shares of our common stock at $0.07 per share.  We
issued the shares of common stock to the officer as a compensatory bonus for
services rendered in the role of Chief Financial Officer.  The
underlying shares are restricted and carry piggy-back registration
rights.





On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for his personal guaranties of
company debt according to the terms of his executive employment agreement dated
May 7, 2009.  The underlying shares are restricted and carry
piggy-back registration rights.





On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for his personal guaranties of
company debt according to the terms of his executive employment agreement dated
May 7, 2009.  The underlying shares are restricted and carry
piggy-back registration rights.





On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for her personal guaranties of
company debt according to the terms of her executive employment agreement dated
May 7, 2009. The underlying shares are restricted and carry piggy-back
registration rights.





On
January 7, 2010, we issued stock certificates to various members of Remington
Partners for 3,750,000 shares of common stock of the company at $0.10 per share
as conversion of $375,000 of long term debt of the company.





On March,
31, 2010 we issued a stock certificate to an officer for 250,000 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for his personal guaranties of company
debt according to the terms of his executive employment agreement dated May 7,
2009.  The underlying shares are restricted and carry piggy-back
registration rights.





On March
31, 2010, we issued a stock certificate to an officer for 250,000 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for her personal guaranties of company
debt according to the terms of her executive employment agreement dated May 7,
2009. The underlying shares are restricted and carry piggy-back registration
rights.




-12-





DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010





On March
31, 2010, we issued a stock certificate to an officer for 62,500 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for his personal guaranties of company
debt according to the terms of his executive employment agreement dated May 7,
2009.  The underlying shares are restricted and carry piggy-back
registration rights.





On March
31, 2010, we issued a stock certificate to an officer for 62,500 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as compensation for his services as Chief Executive
Officer.  The underlying shares are restricted and carry piggy-back
registration rights





The
Company issued the above-described shares of our common stock in reliance upon
the exemption from the registration requirements of the Securities Act of 1933,
as amended, as set forth in Section 4(2) under the Securities Act and Rule 506
of Regulation D promulgated thereunder relating to sales by an issuer not
involving any public offering, to the extent an exemption from such registration
was required. The purchasers represented to us that they were accredited
investors as defined in Rule 501(a) of the Securities Act and that the
securities issued pursuant thereto were being acquired for investment purposes.
The sales of these securities were made without general solicitation or
advertising.





Note 5 - Property and
equipment





Property
and equipment are stated at cost less accumulated depreciation. Depreciation of
property and equipment are computed using the straight-line method based upon
estimated lives of assets ranging between three to thirty years. Property and
equipment are summarized as follows:





Estimated
                Useful
      Life
            
            June
      30, 2010
            
            
            December
      31,
                2009Land
            
            
            
            $
            49,500
            
            
            $
            49,500Buildings
      and building improvements
            
            5 –
      10 years
            
            
            153,817
            
            
            
            138,705Towers
      and studio equipment
            
            5 -
      30 years
            
            
            412,176
            
            
            
            412,176Furniture,
      fixtures and equipment
            
            3 –
      7 years
            
            
            305,249
            
            
            
            285,563Automotive
            
            3 -
      5 years
            
            
            153,553
            
            
            
            153,383Accumulated
      depreciation
            
            
            
            
            (444,650
            )
            
            
            (403,296
            )Property
      and equipment, net
            
            
            
            $
            629,645
            
            
            $
            636,130




-13-


DEBUT
BROADCASTING CORPORATION, INC.
 NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
 June
30, 2010


Of the
$629,645  in Net Property and Equipment as of June 30, 2010, $35,000
was added through the acquisition of the radio broadcast station WBBV FM during
the third quarter of 2008 including equipment purchases to support the acquired
stations.





Note 6 - Lines of
Credit


On May 3,
2002 and amended on April 26, 2004, the Company entered into an unsecured
promissory note establishing a revolving line of credit with the Bank of America
for $75,000.  The note requires monthly interest payments and the interest
rate is based on the bank’s prime rate, which was 7.5% at June 30, 2009. The
balance was paid off in full on December 18, 2009.  The balance of the line
of credit at June 30, 2010 and 2009 was $0 and $75,000,
respectively.
  The
Company signed a promissory note and established a revolving line of credit on
February 27, 2004 for $200,000 with Regions Bank to refinance existing debt. The
note matured on August 31, 2009, and required monthly interest payments accruing
at an initial rate of 7.58% and a current rate of 4.35938% at March 31, 2009.
The rate is subject to monthly changes based on an independent index plus
2.25%.




The note
was secured by personal guarantee of certain officers of the Company and all
inventory, chattel paper, accounts, equipment and general intangibles existing
or purchased after the signing of the related agreement. The balance was paid
off in full on December 18, 2009. The principal balance of the note at June 30,
2010 and 2009 was $0 and $199,297, respectively.




The
Company signed a promissory note and established a revolving line of credit on
August 22, 2008 for $500,000 with SunTrust Bank to facilitate the acquisition of
WBBV.  The note matured on August 22, 2009 and was converted to a term
loan.




The note
was secured by personal guarantee of certain officers of the Company and all
inventory, chattel paper, accounts, equipment and general intangibles existing
or purchased by the wholly-owned subsidiary entity, Debut Broadcasting
Mississippi, after the signing of the related agreement.  The balance of
the loan at June 30, 2010 and  2009 was $0 and
$496,142,  respectively.




On
December 18, 2009, the Company signed a promissory note with Crestmark Bank for
$400,000.  The loan is secured by all inventory, chattel paper, accounts,
equipment and general intangibles of the Company.  The loan matures August
30, 2011 and is payable in variable monthly installments at a rate of prime plus
2.75% for the applicable index period.  The balance of the loan at June 30,
2010 and 2009 was $285,152 and $0 respectively




The note
is secured by personal guarantee of certain officers of the Company and all
inventory, chattel paper, accounts, equipment and general intangibles existing
or purchased by the wholly-owned subsidiary entity, The Marketing Group, after
the signing of the related agreement.




Note 7 - Notes Payable to
Stockholders





Debut
Broadcasting Stockholder Notes





On
January 21, 2008 the Company issued to Remington Partners, Inc. warrants to
purchase 62,500 shares of Company common stock in exchange for a loan in the
amount of $250,000 with a $2,000 loan origination fee and interest of 18% per
annum due monthly.  The promissory note plus any accrued interest is
payable on July 31, 2009.





On
February 26, 2008 the Company issued to Remington Partners, Inc. warrants to
purchase 125,000 shares of Company common stock in exchange for a loan in the
amount of $500,000, with a $2,000 loan origination fee and interest of 18% per
annum due monthly.  The promissory note plus any accrued interest is
payable on July 31, 2009.
  -14-


DEBUT
BROADCASTING CORPORATION, INC.
 NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
 June
30, 2010
  On
January 7, 2010 the company converted $375,000 of the outstanding balance of the
Remington Capital Partners loan to shares of common stock of the
company.  The remaining $375,000 balance is to be paid interest only
at a rate of 12% per year through 2010, at which time it will automatically
convert to a term loan.





Total
interest expense associated with the stockholder loans for the three months
ended June 30, 2010 and 2009 was $11,250 and $34,397
respectively.  Accrued interest due to stockholders was $0 and $0 as
of June 30, 2010 and 2009, respectively.





Note 8 - Loans
Payable


Regions
Bank Loan


On August
15, 2006, the Company signed a promissory note with Regions Bank for $300,000
with an initial interest rate of 7.58% and a current rate of 2.58313% as of
March 31, 2009. The loan was secured by all inventory, chattel paper, accounts,
equipment and general intangibles of the Company.  The loan would have
matured on  August 30, 2011 and was payable in monthly installments of
$6,058, including variable interest at 2.25% points per annum over the London
Interbank Offered Rate for the applicable index period.
  The
balance was settled on December 18, 2009.   Total interest expense on
the Regions Bank loan for the three months ended June 30, 2010 and 2009 was $0
and $1,000, respectively.  Total interest expense for the six months ended
June 30, 2010 and 2009 was $0 and $2,153, respectively. The balance of the loan
at June 30, 2009 was $141,120, of which $41,365 was classified as current
portion of long-term debt.  The balance of the loan at June 30, 2010
was $0.




Citadel
Communications Loan




On August
28, 2002, the Company signed an unsecured promissory note with Citadel
Communications for $430,415.  The loan has no maturity date and accrues
interest at a rate of 12%.  The note was amended in April, 2003 requiring
interest only payments indefinitely.  The company negotiated a
settlement of $24,322 to be paid to Citadel Communications in one lump sum,
which was accepted on September 21, 2009 by Citadel Communications.Total interest expense on
the Citadel Communications loan for each of the three months ended June 30, 2010
and 2009 was $0 and $10,428, respectively.  The balance of the loan at June
30, 2010 and 2009 was $0 and $347,491, respectively.




SunTrust
Bank Loan




On August
28, 2009, the company converted an existing line of credit with SunTrust Bank
into a new term loan.  The note requires monthly interest payment accruing
at an initial rate of 6.0% and a current rate of 6.0% at March 31, 2010. The
rate is subject to monthly changes based on an independent index plus 1.00%, and
matures on August 28, 2011.




The note
is secured by personal guarantee of certain officers of the Company and all
inventory, chattel paper, accounts, equipment and general intangibles existing
or purchased by the wholly-owned subsidiary entity, Debut Broadcasting
Mississippi, after the signing of the related agreement.  Total interest
expense on the SunTrust Bank loan for the three months ended June 30, 2010 and
2009 was $7,279 and $7,349 respectively.  Total interest expense on the
SunTrust Bank loan for the six months ended June 30, 2010 and 2009 was $14,603
and $14,668 respectively.  The balance of the loan at June 30,
2010 and 2009 was $472,705 and $496,142, respectively.




Riverfalls
Financial Services LLC




On
September 21, 2009, the Company signed an unsecured convertible promissory note
with Riverfalls Financial for $1,500,000.  The loan matures on July 31,
2010 and requires interest to be paid on maturity at a rate of 12%.  The
balance of the loan at June 30, 2010 and 2009 was $600,000 and $0.  The
Riverfalls Financial loan additionally guaranties options to purchase 30,000,000
shares of common stock of the company on or before July 31, 2011 at a strike
price of $0.05 per share.




-15-


DEBUT
BROADCASTING CORPORATION, INC.
 NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
 June
30, 2010


Vehicle
Loans




On August
28, 2007, the Company signed a direct purchase money loan and security agreement
with DaimlerChrysler for the purchase of two vehicles for $50,068 with an
effective interest rate of 7.3%. The corresponding promissory note is to be paid
over a five-year period with a monthly payment of $1,011.  In April of
2009, these two vehicles were disposed of through sales to third parties for
$12,000 and $13,300 respectively.  The direct purchase money loan was paid
in full and the security interest DaimlerChrysler held in the vehicles was
released.




On
September 25, 2007, the Company signed a retail installment sale contract with
GMAC for the purchase of two vehicles for $47,498 with an effective interest
rate of 5.0%.  The corresponding promissory note is to be paid over a
three-year period with a monthly payment of $1,424. The purchased vehicles are
used in conjunction with the radio broadcast operations.




On May 1,
2008, the Company signed a retail installment sale contract with Daimler
Chrysler Financial Services for the purchase of a vehicle for $23,137 with an
effective interest rate of 7.49%.  The corresponding promissory note is to
be paid over a five-year period with a monthly payment of $463.  The
purchased vehicle is used in conjunction with the radio broadcast
operations.




On May
15, 2008, the Company signed a retail installment sale contract with Daimler
Chrysler Financial Services for the purchase of a vehicle for $19,303 with an
effective interest rate of 11.25%.  The corresponding promissory note is to
be paid over a five-year period with a monthly payment of $367.  The
purchased vehicle is used in conjunction with the radio broadcast
operations.




-16-




DEBUT
BROADCASTING CORPORATION, INC.


NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS


June
30, 2010


On May
30, 2008, the Company signed a retail installment sale contract with GMAC for
the purchase of a vehicle for $25,256 with an effective interest rate of
9.5%.  The corresponding promissory note is to be paid over a five-year
period with a monthly payment of $530.  The purchased vehicle is used in
conjunction with the radio broadcast operations.


Total interest expense on the vehicle
loans for the quarter ended June 30, 2010 and 2009 was $1,313 and $1,831,
respectively.  Total interest expense on the vehicle loans for the six
months ended June 30, 2009 and 2008 was $2,567 and $4,707, respectively. The
principal balance of the vehicle loans as of June 30, 2010 and 2009 was $51,978
and $78,264, respectively.  At June 30, 2010, $17,638 was classified as the
current portion of the loans.




Capital
Lease




On
December 5, 2007, the Company entered into a capital lease arrangement with
National City Media Finance to acquire studio equipment for $15,009 with a fixed
interest rate of 7.5%. The lease term is for three years with monthly payments
of $464, with a $1 buyout option at the end of the lease term.




Total
interest expense on studio equipment for the quarters ended June 30, 2010 and
2009 was $68 and $107, respectively. Total interest expense on studio equipment
for the six months ended June 30, 2010 and 2009 was $161 and $169,
respectively.  The principal balance of the capital lease as of June 30,
2010 and 2009 was $3,185 and $3,281, respectively.  At June 30, 2010,
$3,185 was classified as the current portion of the lease.




Note 9 - Stockholders’
Equity





In
connection with the reverse merger on May 17, 2007, all shares of common stock
of Debut Broadcasting (as hereinafter defined) outstanding prior to the merger
were exchanged for 10,000,000 shares of Company common stock (See Note 10.
Business Combinations).





In
addition, in connection with the reverse merger, the Company completed a private
placement of 6,000,000 shares of Company common stock at $0.50 per
share.  The transaction was recorded net of financing costs of
$23,502.





Finally,
in connection with the reverse merger, the Company converted notes payable to
stockholders in the amount of $215,158 into 430,316 shares of Company common
stock at $0.50 per share.





The
pre-merger stockholders of the Company maintained 364,044 shares of Company
common stock.





On May
21, 2007, $100,000 of convertible debentures issued on May 15, 2007 were
converted into 3,000,000 shares of Company common stock.





On
January 7, 2010, $375,000 of long term debt of the company was converted into
3,750,000 shares of Company common stock.





Note 10 - Business
Combinations





Grace
Media Company





On August
15, 2008, the Company entered into a Local Marketing Agreement for a radio
broadcast station identified as WQBC AM 1420 Khz in Vicksburg, Mississippi with
Grace Media Company, including all of the facilities, equipment, licenses and
intellectual property necessary to operate these stations.  The
Company maintains the station including all revenues and
expenses.  Grace Media Company has retained ownership of all assets
and liabilities of the station as of August 22, 2008.  We attribute
$39,340 of the net loss incurred during the six months ended June 30, 2009 to
the operation of WQBC AM.  In response to the evaluation of losses
incurred through the operation of  WQBC AM, the company advised Grace
Media Company of its decision to exercise a 90 day cancellation clause in the
Local Marketing Agreement.  WQBC AM was taken off the air at 11:59pm
on May 31, 2009.  Operations will revert to Grace Media Company on
September 1, 2009.




-17-





Item
2.     Management’s Discussion and Analysis of
Financial Condition and Results of Operations





Forward-Looking
Statements





Certain
statements contained in this report may not be based on historical facts and are
“forward-looking statements” within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended.  The forward-looking statements may be identified by
reference to a future-period(s) or by the use of forward-looking terminology,
such as “anticipate,” “believe,” “estimate,” “expect,” “foresee,” “may,”
“might,” “will,” “intend,” “could,” “would,” or “plan” or future or conditional
verb tenses, and variations or negatives of such terms.





These
forward-looking statements include, without limitation, the basis of
presentation of our financial statements, charges to consulting clients, the
impact of recent accounting pronouncements, the impact of radio station
acquisitions, radio advertising growth, pending acquisitions, the future use of
Black-Scholes method of valuation, market trends, our need for additional
capital, our ability to raise capital through debt and equity financing, the
terms of any financing the we may obtain, the incurrence of accounting and legal
fees in connection with acquisitions and the effectiveness of our disclosure
controls and procedures.





We
caution you not to place undue reliance on the forward-looking statements
contained in this report, in that actual results could differ materially from
those indicated in such forward-looking statements as a result of a variety of
factors.  These factors include, but are not limited to, our ability
to provide and market competitive service and products, our ability to diversify
revenue, our ability to attract, train and retain qualified personnel, our
ability to operate and integrate new technology, changes in consumer preference,
changes in our operating or expansion strategy, changes in economic conditions,
fluctuation in prevailing interest rates, our ability to identify and
effectively integrate potential acquisitions, FCC and government approval of
potential acquisition, our inability to renew one or more of our broadcast
licenses, our ability to manage growth and effectively serve an expanding
customer and market base, geographic concentrations of our assets and
susceptibility to economic downturns in that area, availability of and costs
associated with maintaining and/or obtaining adequate and timely sources of
capital and liquidity, our ability to compete with other companies that produce
and distribute syndicated radio programs and/or own radio stations, shifts in
populations and other demographics, changes in governmental regulations, laws
and regulations as the affect companies that produce and distribute syndicated
radio programs and/or own radio stations, industry conditions, the popularity of
radio as a broadcasting and advertising medium, cancellation, disruption or
postponements of advertising schedules in response to national or world events,
possible adverse ruling, judgments, settlements, and other outcomes of pending
or threatened litigation, other factors generally understood to affect the
financial condition or results of companies that produce and distribute
syndicated radio programs and/or own radio stations and other factors detailed
from time to time in our press releases and filings with the Securities and
Exchange Commission.  We undertake no obligation to update these
forward-looking statements to reflect events or circumstances that occur after
the date of this report.





Overview





A Veronis
Suhler Stephenson (VSS) report issued in August of 2010 indicated that radio
advertising has increased on average by 3.5% in 2010 over 2009.  VSS
indicated that radio growth will be steady, but sluggish between 2010 and 2014
with a total estimated growth rate of only 6.1% in the four year
period.  This projection is a downgrade from prior projections which
estimated that radio sales would return to the 2008 level in 2010.  If
the VSS report is accurate, year over year revenue may not recover completely
and show growth until after 2015. We have been affected by the prior year
declines with a decrease in sales from advertisers in key groups of casino and
automotive.  Management believes that the small markets will recover
with more speed than the broader national markets, but that has not left the
small markets immune to recession.  Non-broadcast radio revenue
(“non-spot revenue”) remained steady during the second quarter of 2010, and
realized growth.  We realized growth of almost 25% in national
syndication sales, far outpacing the market. Our small market focus allows us to
capitalize on the growth in local markets and non-spot revenue as we participate
as active members in the communities in which we operate. For the six months
ended June 30, 2010, combined net revenue from radio, multi-media, media
purchasing and syndication decreased 8.7% compared to the same period in 2009,
which is fully attributable to the LMA agreement between Debut Broadcasting and
Delta Radio, LLC whereby revenue and corresponding operational expenses from the
radio broadcast stations WBAQ, WIQQ, and WNIX are no longer reported by Debut
Broadcasting.





Our
management team remains focused on our strategy of pursuing growth through
acquisition. However, acquisitions are closely evaluated to ensure that they
will generate stockholder value and our management is committed to completing
only those acquisitions that it believes will increase our share
price.




-18-




Results
of Operations




For
the Three Months Ended June 30, 2010 and 2009




We
generated $533,490  in net revenue for the quarter ended June 30, 2010, a
decrease of $50,578 or 8.7%, compared to $584,068 for the quarter ended June 30,
2009.  On April 1, 2010 Debut Broadcasting entered into an LMA agreement
with Delta Radio LLC for the operation of the Broadcast radio stations WNIX,
WBAQ, and WIQQ.  100% of the decrease in revenue corresponds to this
LMA agreement, as revenue from the Greenville market is no longer reflected in
the Debut Broadcasting Financials.




Advertising
expense was $700 for the quarter ended June 30, 2010, a decrease of $2,231 or
76.1%, compared to $2,931 for the quarter ended June 30, 2009.  This
decrease is attributable the expiration of contracts that we entered into with
Agoracom for investor relations services.




Operating
expense was $360,779 for the quarter ended June 30, 2010, a decrease of $227,250
or 38.6%, compared to $588,029 for the quarter ended June 30, 2009. Of the total
decrease in operating expenses, approximately $36,000 related to company wide
staffing implemented in the first quarter of 2010. Additional reasons for the
decrease in operating expenses relate the LMA agreement between Debut
Broadcasting Corporation and Delta Radio LLC for the operation of the Broadcast
radio stations WNIX, WBAQ, and WIQQ.  Delta Radio LLC is responsible
for all operating expenses of the stations.




Depreciation
and amortization expense was $26,252 for the quarter ended June 30, 2010, a
decrease of $20,583, or 43.9%, compared to $46,835 for the quarter ended June
30, 2009. The primary reason for the increase relates to recalculation of
amortization in conjunction with auditor review at the end of 2009.




Interest
expense was $60,101 for the quarter ended June 30, 2010, a decrease of $16,018
or 21% compared to $76,119 for the quarter ended June 30, 2009.  The
primary source of the interest expenditures were interest payments associated
with the two term loans from Remington Partners, Inc, and the Regions Bank
loans.




As a
result of the foregoing revenue and expenses, our overall net income for the
three-month period ending June 30, 2010 was $85,033 and the net loss for the
three month period ending June 30, 2009 was $127,857.




For
the Six Months Ended June 30, 2010 and 2009




We
generated $939,803 in net revenue for the six months ended June 30, 2010, a
decrease of $118,586, or 11.2%, compared to $1,058,395 for the six months ended
June 30, 2009.  On April 1, 2010 Debut Broadcasting entered into an LMA
agreement with Delta Radio LLC for the operation of the Broadcast radio stations
WNIX, WBAQ, and WIQQ.  100% of the decrease in revenue corresponds to
this LMA agreement, as revenue from the Greenville market is no longer reflected
in the Debut Broadcasting Financials.




Advertising
expense was $14,740 for the six months ended June 30, 2010 an increase of $5,069
or 52.4% compared to $9,671 for the six months ended June 30, 2009.  This
increase is attributable to a contract that we entered into during 2009 with
Agoracom for investor relations services.




Operating
expense was $993,118 for the six months ended June 30, 2010, a decrease of
$191,826 or 16.2%, compared to $1,184,944 for the six months ended June 30,
2009. Of the total decrease in operating expenses, approximately $36,000 related
to company wide staffing implemented in the first quarter of 2010. Additional
reasons for the decrease in operating expenses relate the LMA agreement between
Debut Broadcasting Corporation and Delta Radio LLC for the operation of the
Broadcast radio stations WNIX, WBAQ, and WIQQ.  Delta Radio LLC is
responsible for all operating expenses of the stations.




Depreciation
and amortization expense was $41,283 for the six months ended June 30, 2010, a
decrease of $45,991 or 52.7% compared to $87,274 for the six months ended June
30, 2009. The primary reason for the increase relates to recalculation of
amortization in conjunction with auditor review at the end of 2009.




Interest
expense was $92,620  for the six months ended June 30, 2010, a decrease of
$60,291 or 39.4% compared to $152,911 for the six months ended June 30,
2009.  The primary source of the increase was interest payments associated
with the two term loans from Remington Partners, Inc.  An additional
increase in interest expense was attributable to the vehicles which have been
financed for the radio station operations.




As a
result of the foregoing revenue and expenses, our overall net loss for the
six-month period ending June 30, 2010 and June 30, 2009 was $199,071 and
$372,665, respectively.




-19-




Financial
Condition




Accounts receivable, net of allowance for doubtful accounts was
$1,211,419 at June 30, 2010, an increase of $376,117 or 45% compared to $835,302
at December 31, 2009.  The increase in sales revenue from the syndication
business is largely attributable to the increase in the accounts receivable
balance.




Unexercised Stock warrants were $1,004,658 at June 30, 2010 and at December 31,
2009, respectively.  In accordance with FAS 133, we record an associated
asset and liability for the issuance of warrants, which is adjusted quarterly
using the Black-Scholes method of derivative valuation.




In the second quarter of 2009, we disposed of a Dodge Magnum and a Nissan Xterra
through sales to third parties for $12,000 and $13,300 respectively. As a result
of these disposals and accumulated depreciation on our existing assets, our
property and equipment, net of depreciation, fell to $629,645 compared to
$636,130 at December 31, 2009.




Accounts payable at June 30, 2010 was $867,875, a decrease of $64,246 or 6.9%
compared to $932,121 at December 31, 2009.  This decrease in accounts
payable is attributable to adjustment of accounts payables and accruals pending
analysis of payables attributable to vendors who are in
bankruptcy.




Accrued expenses and taxes at June 30, 2010 were $721,076, an increase of
$572,543 from December 31, 2009.  This increase is attributable an increase
in syndication revenue, as well as to adjustment of accounts payables and
accruals pending analysis of payables attributable to vendors who are in
bankruptcy.




In January and February of 2009, we exercised two loans with Remington Partners,
Inc. for a total of $750,000 in notes payable to stockholders. In the first
quarter of 2010 the loans were modified.  $375,000 was converted to
common stock of the company.  As a result, our notes payable to
stockholders were $375,000 at June 30, 2010 and $750,000 at December 31, 2009,
respectively.




Liquidity and
Capital Resources




As of
June 30, 2010, our current assets in the amount of $2,300,700, consisted of
$60,845 in cash and cash equivalents, $1,211,419 in accounts receivable, $23,778
in prepaid expenses and $1,004,658 in unexercised stock warrants. As of June 30,
2010, our current liabilities in the amount of $4,377,897, consisted of $867,875
in accounts payable, $721,076  in accrued expenses and taxes, $375,000 in
notes payable to stockholders, $757,856 in lines of credit and $620,567 in
current portion of long term debt, and $1,035,523 in unexercised stock warrant
loss. This combination of assets and liabilities resulted in a working capital
deficit in the amount of $2,077,197.




We will
require additional capital to execute our plan to grow through the acquisition
of radio stations and radio station clusters. We do not presently have
sufficient capital to make additional acquisitions. We are in ongoing
negotiations for LMA’s and acquisitions of radio broadcast stations that we
anticipate will grow our revenue and lower our working capital
deficite.  We anticipate releasing details of these purchase and LMA
agreements through form 8K’s in the third quarter of 2010.




Recent
Events





Pending
Acquisitions




During
the second quarter of 2010, we signed letters of intent to purchase additional
radio stations in three separate markets in the Southeast United States, Eastern
United States, and Midwest.





We
anticipate signing LMA agreements to begin operating these stations in the third
and fourth quarters of 2010, and will sign asset purchase agreements, and filing
for FCC license transfers within two years for the additional
stations.




-20-





Off
Balance Sheet Arrangements





As of
June 30, 2010, there were no off balance sheet arrangements.





Critical
Accounting Policies





Revenue and Cost
Recognition





We
recognize advertising and programming revenues when our radio programs air with
our contracted radio station affiliates.  Generally, we are paid by a
national advertising agency, which sells the commercial time provided by the
affiliate.





We earn
revenue from the national advertising agency, we also recognize any amounts
attributable to the individual radio programs, which are based on the audience
level generated by the specific program.  Expenses are accrued at the
time the radio programs are run.





Consulting
projects are generally negotiated at a fixed price per project; however, if we
utilize our advertising capacity as part of the consulting project, we will
charge the consulting client in the same manner as the affiliated stations
described more fully above.  Consulting fee income is recognized as
time is incurred under the terms of the contract.





Advertising





We
expense advertising costs as they are incurred.





New Accounting
Pronouncements





The
Company adopted the provisions of Financial Accounting Standards Board (“FASB”)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an
interpretation of FASB Statement No. 109 (“FIN 48”)(“ASC 740-10”)(“ASC 810-10”),
on May 17, 2007.  This interpretation increases the relevancy and
comparability of financial reporting by clarifying the way companies account for
uncertainty in income taxes.  FIN 48 prescribes a consistent
recognition threshold and measurement attribute, as well as clear criteria for
subsequently recognizing, derecognizing and measuring such tax positions for
financial statement purposes.  The interpretation also requires
expanded disclosure with respect to the uncertainty in income taxes





Item
4T.   Controls and Procedures




As
required by Rule 13a-15 of the Securities Exchange Act of 1934, our principal
executive officer and principal financial officer evaluated our company's
disclosure controls and procedures (as defined in Rules 13a-15(e) of the
Securities 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 that as of the end of the period covered by this
report, these disclosure controls and procedures were not effective to ensure
that the information required to be disclosed by our company in reports it files
or submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities Exchange Commission and to ensure that such information is
accumulated and communicated to our company's management, including our
principal executive officer and principal financial officer, to allow timely
decisions regarding required disclosure. The conclusion that our disclosure
controls and procedures were not effective was due to the presence of the
following material weaknesses in internal control over financial reporting which
are indicative of many small companies with small staff: inadequate segregation
of duties and effective risk assessment.  Management anticipates that
such disclosure controls and procedures will not be effective until the material
weaknesses are remediated.




-21-




We plan
to take steps to enhance and improve the design of our internal controls over
financial reporting. During the period covered by this quarterly report on Form
10-Q, we have not been able to remediate the material weaknesses identified
above.  We will be unable to remediate these material weaknesses until
we achieve a growth level sufficient to support financial and accounting staff
to adequately segregate duties.  We do not anticipate remediating this
weakness in 2010.




Because
of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues, if any, within our
company have been detected. These inherent limitations include the realities
that judgments in decision-making can be faulty and that breakdowns can occur
because of simple error or mistake.




Changes
in Internal Control over Financial Reporting




There has
been no change in the internal control over financial reporting identified in
connection with the evaluation required by paragraph (d) of ss.240.13a -15 or
ss.240.15d -15 of the Exchange Act that occurred during the Company's last
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial
reporting.




-22-




PART
II - OTHER INFORMATION





Item 1.     Legal Proceedings





None





Item
2.     Unregistered Sales of Equity Securities and Use
of Proceeds





On May
17, 2007, we completed a private placement of 6,430,316 shares of our common
stock at $0.50 per share.  430,316 shares were sold to existing
shareholders in exchange for conversion of their notes to the Predecessor
Company.  The remaining 6,000,000 shares were sold to a number of
investors with no prior relationship to the company.   No
underwriters were involved in this sale of securities. We issued the shares of
common stock to the investors in exchange for a combination of cash and debt
reduction. The transaction was recorded net of financing costs of $23,503. We
used the net proceeds from the private offering for the acquisition of Shamrock
Broadcasting and River Broadcasting Group.


On June
18, 2008, we issued to Wolcott Squared a warrant to purchase 18,408 shares of
our common stock at an exercise price of $0.3925 per share, with an expiration
date of December 17, 2017. The consideration received for this warrant was
services rendered in December of 2007 valued at $7,225.


On June
18, 2008, we issued to Wolcott Squared a warrant to purchase 22,279 shares of
our common stock at an exercise price of $0.51 per share with an expiration date
of January 31, 2018.  The consideration received for this warrant was
services rendered in January of 2008 valued at $11,362.


On June
18, 2008, we issued to Wolcott Squared a warrant to purchase 5,686 shares of our
common stock at an exercise price of $0.51 per share with an expiration date of
February 29, 2018. The consideration received for this warrant was services
rendered in February of 2008 valued at $2,899.


On June
30, 2008, we issued to Politis Communications a warrant to purchase 10,254
shares of our common stock at an exercise price of $0.01 per share, with an
expiration date of June 29, 2018.  The consideration received for this
warrant was services rendered by Politis Communications.




On
September 22, 2008, we  issued to Stephen Ross, a third party, a
warrant to purchase 18,000 shares of Company common stock at an exercise price
of $0.50 per share, with an expiration date of January 31, 2011.  The
consideration we received for this warrant was legal services rendered by
Stephen Ross, Esq,




On
September 22, 2008, we issued to Stephen Ross, a third party,  a
warrant to purchase 27,000 shares of Company common stock at an exercise price
of $0.50 per share, with an expiration date of September 30, 2011. The
consideration we received for this warrant was legal services rendered by
Stephen Ross, Esq,




On
September 30, 2008, we  issued to Politis Communications a warrant to
purchase 5,495 shares of Company common stock at an exercise price of $0.01 per
share, with an expiration date of September 29, 2018.  The
consideration received for this warrant was public relations services rendered
by Politis Communications.




On
December 31, 2008, we issued to Stephen Ross, a third party,  a
warrant to purchase 27,000 shares of Company common stock at an exercise price
of $0.50 per share, with an expiration date of December 31, 2011. The
consideration we received for this warrant was legal services rendered by
Stephen Ross, Esq,




On
December 31, 2008, we  issued to Politis Communications a warrant to
purchase 5,495 shares of Company common stock at an exercise price of $0.01 per
share, with an expiration date December 31, 2018.  The consideration
received for this warrant was public relations services rendered by Politis
Communications.




On April
1, 2009, we issued to Stephen Ross, a third party,  a warrant to
purchase 27,000 shares of Company common stock at an exercise price of $0.50 per
share, with an expiration date of  March 31, 2012.The consideration we
received for this warrant was legal services rendered by Stephen Ross,
Esq,




On June
30, 2009, we issued to Stephen Ross, a third party,  a warrant to
purchase 27,000 shares of Company common stock at an exercise price of $0.50 per
share, with an expiration date of  June 29, 2012.The consideration we
received for this warrant was legal services rendered by Stephen Ross,
Esq,




On
September 30, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date
of  April 1, 2012. The consideration we received for this warrant was
legal services rendered by Stephen Ross, Esq.




On
December 31, 2009, the Company issued  to Stephen Ross, a third
party,  a warrant to purchase 27,000 shares of Company common stock at
an exercise price of $0.50 per share, with an expiration date of  June
30, 2012. The consideration we received for this warrant was legal services
rendered by Stephen Ross, Esq.




-23-





On
September 21, 2009, the Company issued to Riverfalls Financial Partners, LLC, an
option to purchase 30,000,000 shares of Company common stock at an exercise
price of $0.05 per share, with an expiration date of July 31,
2011.  This option was excluded from valuation as the volatility
associated with the stock price and the percentage of ownership this option
represents prevented an accurate valuation.  Should Riverfalls
Financial Partners, LLC execute this option their ownership would represent a
60% controlling interest in the company for an investment of
$1,500,00.





We
revalue warrants quarterly utilizing the Black-Scholes method.





All of
these warrants were issued in reliance upon the exemption from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”),
as set forth in Section 4(2) under the Securities Act and Rule 506 of Regulation
D promulgated thereunder relating to sales by an issuer not involving any public
offering, to the extent an exemption from such registration was
required.





On
December 5, 2008, Politis Communications exercised a warrant to purchase 8,500
shares of our common stock at $0.01 per share.  The shares were
authorized by Politis Communications as compensatory gifts to a number of
employees of Politis Communications.  No underwriters were involved in
this warrant exercise.  The underlying shares are restricted and carry
piggy-back registration rights.




On
December 5, 2008, we issued a stock certificate to Mohammed Rahman for 22,026
shares of our common stock at $0.07 per share.  We issued the shares
of common stock to Mohammed Rahman in exchange for services
rendered.  No underwriters were involved in this sale of
securities.  Outside of the existing vendor client relationship the
investor has no prior rela tionship
to the company.  The underlying shares are restricted and carry
piggy-back registration rights.




On
December 3, 2008, we issued a stock certificate to Sariah Hopkins for 42,000
shares of our common stock at $0.07 per share.  We issued the shares
of common stock to Sariah Hopkins as a compensatory bonus for services rendered
in the role of Chief Financial Officer.  The underlying shares are
restricted and carry piggy-back registration rights.




On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for his personal guaranties of
company debt according to the terms of his executive employment agreement dated
May 7, 2009.  The underlying shares are restricted and carry
piggy-back registration rights.




On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for his personal guaranties of
company debt according to the terms of his executive employment agreement dated
May 7, 2009.  The underlying shares are restricted and carry
piggy-back registration rights.




On
December 31, 2009, we issued a stock certificate to an officer for 500,000
shares of common stock at $0.003 per share.  We issued the shares of
common stock to the officer as consideration for her personal guaranties of
company debt according to the terms of her executive employment agreement dated
May 7, 2009. The underlying shares are restricted and carry piggy-back
registration rights. On January 7, 2010, we issued stock certificates to various
members of Remington Partners for 3,750,000 shares of common stock of the
company at $0.10 per share as conversion of $375,000 of long term debt of the
company.




On March,
31, 2010 we issued a stock certificate to an officer for 250,000 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for his personal guaranties of company
debt according to the terms of his executive employment agreement dated May 7,
2009.  The underlying shares are restricted and carry piggy-back
registration rights.




On March
31, 2010, we issued a stock certificate to an officer for 250,000 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for her personal guaranties of company
debt according to the terms of her executive employment agreement dated May 7,
2009. The underlying shares are restricted and carry piggy-back registration
rights.




On March
31, 2010, we issued a stock certificate to an officer for 62,500 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as consideration for his personal guaranties of company
debt according to the terms of his executive employment agreement dated May 7,
2009.  The underlying shares are restricted and carry piggy-back
registration rights.




On March
31, 2010, we issued a stock certificate to an officer for 62,500 shares of
common stock at $0.003 per share.  We issued the shares of common
stock to the officer as compensation for his services as Chief Executive
Officer.  The underlying shares are restricted and carry piggy-back
registration rights




-24-




We issued
the above-described shares of our common stock in reliance upon the exemption
from the registration requirements of the Securities Act of 1933, as amended, as
set forth in Section 4(2) under the Securities Act and Rule 506 of Regulation D
promulgated thereunder relating to sales by an issuer not involving any public
offering, to the extent an exemption from such registration was required. The
purchasers represented to us that they were accredited investors as defined in
Rule 501(a) of the Securities Act and that the securities issued pursuant
thereto were being acquired for investment purposes. The sales of these
securities were made without general solicitation or advertising.





Item 4.     Submission of Matters to a Vote of
Security Holders





None.





Item
6.      Exhibits





Exhibit
      Number
            
            Description
      of Exhibit31.1
            
            Certification
      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 302 of the Sarbanes-Oxley Act of
  200231.2
            
            Certification
      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 302 of the Sarbanes-Oxley Act of
  200232.1
            
            Certification
      of Chief Executive Officer and Chief Financial Officer pursuant to 18
      U.S.C. Section 1350, as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002





-25-





SIGNATURES





Purusant to the requirements 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.




DEBUT
      BROADCASTING CORPORATION, INC.August
      13, 2010
              
              /s/
      Sariah HopkinsSariah
      HopkinsChief
      Financial Officer
  -26-