**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington, D.C.
      20549**




**FORM 10-Q**




**(Mark
                One)****þ**
            
            **QUARTERLY
                REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934****For
                the quarterly period ended September 30, 2008****o**
            
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d)**
              **OF
                THE SECURITIES EXCHANGE ACT OF 1934****For
                the transition period
                from          to**





**Commission
      file number 0-50762**




**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.)*







**1209
                16****th****Ave South, Nashville, TN**
            **37212***(Address
                of principal executive offices)*
            *(Zip
                Code)*


**(615) 301-0001**


*(Registrant’s
      telephone number, including area code)*





( *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, or a smaller reporting company.
      See
      definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





Large
      accelerated filer o Accelerated
      filer o Non-accelerated
      filer o Smaller
      Reporting Company þ




(Do
      not
      check if a smaller reporting company)





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
      September 30, 2008, there were 19,794,360 shares of common stock issued and
      outstanding.











**TABLE
      OF CONTENTS**





PagePART
                I - FINANCIAL INFORMATIONItem
                1.
            Financial
                Statements
            3Item
                2.
            Management’s
                Discussion and Analysis ofFinancial Condition and Results of Operations
            17Item
                4T.
            Controls
                and Procedures
            21PART
                II - OTHER INFORMATIONItem
                2.
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            23Item
                6.
            Exhibits
            23








2





**PART
      I - FINANCIAL INFORMATION**


**Item
      1.****Financial
      Statements**





**DEBUT
      BROADCASTING CORPORATION, INC.**


**CONDENSED
      CONSOLIDATED BALANCE SHEET****S**




September
                30,
            
            December
                31,2008
            
            2007ASSETS
            
            (Unaudited)
            
            (1)Current
              assetsCash
                and cash equivalents
            
            $
            70,561
            
            $
            8,643Accounts
                receivable, net
            
            
            1,396,030
            
            
            650,580Other
                current assets
            
            
            465,844
            
            
            45,723Total
                current assets
            
            
            1,932,435
            
            
            704,946Property
                and equipment, net
            
            
            777,835
            
            
            541,159Goodwill
            
            
            459,280
            
            
            79,280FCC
                licenses
            
            
            1,509,500
            
            
            1,037,000Other
                intangible assets, net
            
            
            34,012
            
            
            13,925Total
                assets
            
            $
            4,713,062
            
            $
            2,376,310LIABILITIES
                AND STOCKHOLDERS' EQUITYCurrent
                liabilitiesAccounts
                payable
            
            $
            498,920
            
            $
            339,734Accrued
                expenses and taxes
            
            
            1,180,127
            
            
            339,442Notes
                payable
            
            
            -
            
            
            -Notes
                payable to stockholders
            
            
            750,000
            
            
            -Lines
                of credit
            
            
            602,262
            
            
            239,297Current
                portion of long-term debt
            
            
            34,451
            
            
            85,600Total
                current liabilities
            
            
            2,814,400
            
            
            1,004,073Long-term
                liabilitiesLong-term
                debt
            
            
            1,471,298
            
            
            601,374Total
                long-term liabilities
            
            
            1,471,298
            
            
            601,374Total
                liabilities
            
            
            4,537,059
            
            
            1,605,447Stockholders'
                equityCommon
                stock - $.003 par value, 100,000,000 shares authorized; 19,794,360
                shares
                issued and outstanding
            
            
            30,383
            
            
            30,383Additional
                paid in capital
            
            
            3,162,272
            
            
            3,162,272Accumulated
                deficit
            
            
            (3,016,651
            )
            
            (2,421,792
            )Total
                stockholders' equity
            
            
            176,003
            
            
            770,863Total
                Liabilities & Equity
            
            $
            4,713,062
            
            $
            2,376,310




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





(1)
      Derived from the Company’s audited financial statements from the year ended
      December 31, 2007.





3


**DEBUT
      BROADCASTING CORPORATION, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT**


**(Unaudited)**





Three
                Months Ended September 30,
            
            Nine
                Months Ended September 30,2008
            
            2007
            
            2008
            
            2007*(restated)*
            
            
            
            *(restated)*Net
                Revenue
            
            $
            741,074
            
            $
            264,530
            
            $
            1,918,857
            
            $
            528,605Operating
                ExpensesAdvertising
            
            
            21,751
            
            
            6,580
            
            
            174,491
            
            
            36,595Operating
                Expense
            
            
            711,739
            
            
            683,003
            
            
            2,088,904
            
            
            1,234,620Depreciation
                Expense
            
            
            28,889
            
            
            26,611
            
            
            94,757
            
            
            38,023Merger
                and Acquisition Related Expenses
            
            
            10,405
            
            
            57,634
            
            
            11,300
            
            
            397,562Total
                Operating Expenses
            
            
            772,784
            
            
            1,343,567
            
            
            2,369,452
            
            
            2,276,539Operating
                Loss
            
            
            (31,711
            )
            
            (509,297
            )
            
            (450,596
            )
            
            (1,178,195
            )Other
                Income and ExpenseInterest
                Income
            
            
            (7,143
            )
            
            (8,239
            )
            
            (9,542
            )
            
            (18,356
            )Interest
                Expense
            
            
            46,200
            
            
            23,058
            
            
            153,795
            
            
            76,132Total
                Other Income and Expense
            
            
            39,057
            
            
            14,819
            
            
            144,253
            
            
            57,776Net
                Loss
            
            $
            (70,767
            )
            $
            (524,116
            )
            $
            (594,848
            )
            $
            (1,235,971
            )Accumulated
                Deficit at the Beginning of the Period
            
            
            (2,945,025
            )
            
            (1,437,052
            )
            
            (2,420,944
            )
            
            (725,197
            )Accumulated
                Deficit at the End of the Period
            
            $
            (3,015,792
            )
            $
            (1,961,168
            )
            $
            (3,015,792
            )
            $
            (1,961,168
            )Loss
                per common shareBasic
            
            $
            (0.01
            )
            $
            (0.03
            )
            $
            (0.03
            )
            $
            (0.04
            )Weighted
                average number of shares outstanding, basic
            
            
            19,794,360
            
            
            19,794,360
            
            
            19,794,360
            
            
            19,794,360





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





4





**DEBUT
      BROADCASTING CORPORATION, INC.**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**(Unaudited)**


Nine
                  Months Ended September 30,2008
              
              2007Operating
                  Activities:Net
                  Loss
              
              $
              (594,848
              )
              $
              (1,235,871
              )Adjustments
                  to reconcile net loss to net cashprovided
                  by/used in operating activities:Depreciation
                  and amortization
              
              
              94,770
              
              
              38,023Changes
                  in operating assets and liabilities, net effectsof
                  acquisitions(Increase)
                  in accounts receivable
              
              
              (687,929
              )
              
              (124,072
              )(Increase)
                  in other current assets
              
              
              (8,325
              )
              
              (46,437
              )Increase
                  in accounts payable
              
              
              159,186
              
              
              102,784Increase
                  in accrued expenses and taxes
              
              
              396,596
              
              
              295,962Net
                  cash (used in) operating activities
              
              
              (640,573
              )
              
              (969,611
              )Investing
                  Activities:Purchases
                  of property and equipment
              
              
              (280,094
              )
              
              (328,518
              )Acquisition
                  of Shamrock Broadcasting
              
              
              -
              
              
              (300,000
              )Acquisition
                  of River Broadcasting
              
              
              -
              
              
              (1,037,134
              )Acquisition
                  of WBBV FM
              
              
              (980,022
              )
              
              -Net
                  cash used in investing activities
              
              
              (1,260,116
              )
              
              (1,665,652
              )Financing
                  Activities:Proceeds
                  from issuance of stock warrants
              
              
              30,865
              
              
              -Proceeds
                  from bank credit facility
              
              
              1,241,304
              
              
              30,000Proceeds
                  from stockholder notes
              
              
              750,000
              
              
              -Repayment
                  of long-term debt
              
              
              (59,563
              )
              
              48,394Proceeds
                  from issuance of common stock
              
              
              -
              
              
              2,976,497Net
                  cash provided by financing activities
              
              
              1,962,606
              
              
              3,054,891Net
                  increase in cash and cash equivalents
              
              
              61,918
              
              
              419,628Cash
                  and cash equivalents at beginning of period
              
              
              8,643
              
              
              86,112Cash
                  and cash equivalents at end of period
              
              $
              70,561
              
              $
              505,740





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





5








**DEBUT
      BROADCASTING CORPORATION, INC.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**


**(Unaudited)**


Nine
                  Months Ended September 30,2008
              
              2007Supplemental
                  disclosure of cash flow informationCash
                  paid during the period for:Interest
              
              $
              137,969
              
              $
              53,074Income
                  Taxes
              
              $
              -
              
              $
              -Schedule
                  of non-cash investing and financing activities:Issuance
                  of common stock in connection with conversionof
                  debenture payable
              
              $
              -
              
              $
              100,000Issuance
                  of common stock in connection with conversionof
                  stockholder notes payable
              
              $
              -
              
              $
              215,158Purchase
                  of assets of WBBV FM andassumption
                  of liabilities in the acquisition as follows:Fair
                  value of non-cash tangible assets acquired
              
              $
              600,022
              
              $
              -Goodwill
              
              $
              380,000
              
              $
              -Cash
                  paid
              
              $
              (180,022
              )
              $
              -Liabilities
                  assumed
              
              $
              (800,000
              )
              $
              -Purchase
                  of assets of Shamrock Broadcasting andassumption
                  of liabilities in the acquisition as follows:Fair
                  value of non-cash tangible assets acquired
              
              $
              -
              
              $
              310,134Cash
                  paid
              
              $
              -
              
              $
              (300,000
              )Liabilities
                  assumed
              
              $
              -
              
              $
              (10,134
              )Purchase
                  of assets of River Broadcasting andassumption
                  of liabilities in the acquisition as follows:Fair
                  value of non-cash tangible assets acquired
              
              $
              -
              
              $
              957,854Goodwill
              
              $
              -
              
              $
              79,280Cash
                  Paid
              
              $
              -
              
              $
              (1,037,134
              )





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





6


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**Note
      1 - Organization**





Debut
      Broadcasting Corporation, Inc. (the “Company”) is located in Nashville,
      Tennessee and conducts business from its principal executive office at 1209
      16th
      Avenue South, Nashville, Tennessee 37212. The Company produces and distributes
      syndicated radio programs to radio stations across the United States and Canada.
      In addition, the Company owns and operates five radio stations in Mississippi.





The
      Company maintains radio syndication in Nashville and produces and distributes
      15
      radio programs, which are broadcast over approximately 1,400 radio station
      affiliates. These radio programs have an estimated 45 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 on Music Row in Nashville, Tennessee.
      The
      Company also provides marketing, consulting and media buying (advertising)
      for
      its radio broadcast station customers in the United States.





On
      May
      17, 2007, the Company consummated a reverse merger with California News Tech,
      a
      public company that was organized in Nevada. Media Sentiment, Inc. (“MSI”), a
      wholly-owned subsidiary of California News Tech, held all of the assets and
      operations of California News Tech at the date of the merger (see Note 10 -
      Business Combinations). Pursuant to a Post-Merger Operating Agreement, dated
      as
      of May 17, 2007, MSI and the Company agreed to operate as separate businesses
      after the reverse merger, with neither entity exercising control over the assets
      or operations of the other.





On
      June
      27, 2007, MSI filed a registration statement with the SEC with respect to the
      issued and outstanding shares of common stock of MSI for the purpose of
      completing a spin-off of MSI by transferring all of the shares of common stock
      of MSI to stockholders of record of California News Tech as of April 20, 2007.
      The spin-off of MSI was completed during August of 2008.





**Note
      2 - Basis of Presentation and Interim Results**





These
      unaudited 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 September 30,
      2008
      are not necessarily indicative of the results that can be expected for the
      full
      year.  Balance sheet information as of December 31, 2007 was derived from
      the Company’s audited financial statements for the year ended December 31,
      2007.





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.





Restatements
      have been made to net revenue and operating expense for the three and nine
      months ended September 30, 2007. These restatements were made to reflect
      consistency with all other reporting periods, and have not affected the
      Company’s total net loss for such periods.





These
      interim results do not include the assets, liabilities and operations of the
      non-controlled subsidiary MSI, of which the Company completed the spin-off
      during the third quarter of 2008.





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,
      2007.
      All adjustments were of a normal recurring nature unless otherwise disclosed.
      In
      the opinion of management, all adjustments necessary for a fair statement of
      the
      results of operations for the interim period have been included. The results
      of
      operations for such interim periods are not necessarily indicative of the
      results for the full year.


7


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





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. On August 22, 2008, we
      accepted an acquisition and working capital loan for $500,000 from SunTrust
      Bank. We intend to raise additional capital over the next six months through
      equity offerings or by incurring debt.





**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. The following table shows
      activity in our allowance for doubtful accounts:








December
                31, 2007
            
            $
            20,299Charged
                to expense
            
            $
            24,831Deductions
            
            
            ($19,921
            )March
                31, 2008
            
            $
            15,389Charged
                to expense
            
            $
            31,301Deductions
            
            
            ($39,168
            )June
                30, 2008
            
            $
            20,256Charged
                to expense
            
            $
            17,979Deductions
            
            
            ($19,907
            )September
                30, 2008
            
            $
            22,184





**Revenue
      and Cost Recognition**





The
      Company recognizes its advertising and programming revenues 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 radio programs, which are based
      on
      the audience level generated by the specific program. Individual radio programs
      operate under revenue sharing agreements pursuant to which the Company retains
      a
      portion of revenue and disburses a pro rata share of revenue to licensors of
      any
      programming which the Company licenses. The relational billing, collections
      and
      expenses are disclosed providing transparency to licensors. For individual
      radio
      programs that are produced internally by the Company, a similar analysis and
      calculation is performed to determine the sustained viability of the production
      concept. Approximately half of the programming produced is wholly-owned by
      the
      Company, and the other half is licensed from various programming partners
      (licensors).





Under
      generally accepted accounting principles for accrual based accounting, expenses
      related to individual shows are accrued at the time the radio programs are
      run
      and the related revenue is recognized when advertising is billed from the
      national advertising agency. Disbursements are made monthly to third party
      producers based on current month collections. Twenty percent of outstanding
      collections delinquent over 90 days are held as an allowance for doubtful
      accounts.




Volume
      growth is achieved in national advertising revenue through the sale of
      syndicated programming to radio station affiliates. Advertising rates are
      affected by the overall audience size as determined by national radio ratings.
       The Company’s overall advertising revenue potential is largely a function
      of audience size and the quantity of advertising available for sale.


8





**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





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





**Revenue
      and Cost Recognition (continued)**





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 it charges the
      affiliated stations described more fully above. Consulting fee income is
      recognized as time is incurred under the terms of the contract.





**Advertising**





The
      Company expenses advertising costs as they are incurred. Total advertising
      costs
      of $21,751 and $6,580 are included in the financial statements for the three
      months ended September 30, 2008 and September 30, 2007, respectively. Total
      advertising costs of $174,491 and $36,595 are including in the financial
      statements for the nine months ended September 30, 2008 and September 30,
      2007.





**Note
      3 - Initial Adoption of FIN 48**





We
      adopted the provisions of Financial Accounting Standards Board Interpretation
      No. 48, *Accounting
      for Uncertainty in Income Taxes* - an
      interpretation of FASB Statement No. 109 (“FIN 48”), 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. We do
      not
      believe that the timing of the adoption of FIN 48 has created any material
      differences in comparability between the nine months ended September 30, 2007
      and the nine months ended September 30, 2008.





**Note
      4 - Loss Per Share**





We
      present basic loss per share on the face of the consolidated statements of
      operations. As provided by Statement of Financial Accounting Standards (“SFAS”)
      No. 128 *,
      Earnings Per Share* ,
      basic
      income 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.


9





**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**Note
      4 - Loss Per Share (continued)**





On
      June
      18, 2008, the Company issued to Wolcott Squared a warrant to purchase 18,408
      shares of Company common stock at an exercise price of $0.3925 per share, with
      an expiration date of December 17, 2017.





On
      June
      18, 2008, the Company issued to Wolcott Squared a warrant to purchase 22,279
      shares of Company common stock at an exercise price of $0.51 per share, with
      an
      expiration date of January 31, 2018.





On
      June
      18, 2008, the Company issued to Wolcott Squared a warrant to purchase 5,686
      shares of Company common stock at an exercise price of $0.51 per share, with
      an
      expiration date of February 29, 2018.





On
      June
      30, 2008, the Company issued to Politis Communications a warrant to purchase
      10,254 shares of Company common stock at an exercise price of $0.91 per share,
      with an expiration date of June 29, 2018.





On
      June
      30, 2008, the Company issued to Rubicon Capital Partners, a warrant to purchase
      20,714 shares of Company common stock at an exercise price of $1.05 per share,
      with an expiration date of June 29, 2018.





On
      June
      30, 2008, the Company issued to Rubicon Capital Partners, a warrant to purchase
      1,312 shares of Company common stock at an exercise price of $0.50 per share,
      with an expiration date of June 29, 2018.





On
      September 22, 2008, the Company issued to 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.





On
      September 22, 2008, the Company issued to 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.





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 $0.91
      per
      share, with an expiration date of September 29, 2018.





Warrants
      are accounted for under the guidelines of SFAS No. 133, *Accounting
      for Derivative Instruments and Hedging Activities* (“SFAS
      133”) *.*




As
      of
      September 30, 2008, all warrants include registration rights, but have not
      yet
      been registered. The Company revalues warrants quarterly utilizing the
      Black-Scholes method.





All
      shares of common stock and prices have been restated in the accompanying
      consolidated financial statements and notes to give effect to the reverse merger
      of the Company with California News Tech. Therefore, the calculation of income
      per share is based on the number of shares of Company common stock outstanding
      assuming the reverse merger was completed on January 1, 2006.


10





**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**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 30 years. Property and
      equipment are summarized as follows:








Estimated
                Useful Life
            
            September
                30, 2008
            
            December
                31, 2007Land
            
            
            
            
            $
            49,500
            
            $
            49,500Buildings
                and building improvements
            
            
            5
                - 10 years
            
            
            135,298
            
            
            71,810Towers
                and studio equipment
            
            
            5
                - 30 years
            
            
            360,313
            
            
            314,666Furniture,
                fixtures and equipment
            
            
            3
                - 7 years
            
            
            270,440
            
            
            150,515Automotive
            
            
            3
                - 5 years
            
            
            187,391
            
            
            101,858Accumulated
                depreciation
            
            
            
            
            
            (225,108
            )
            
            (147,190
            )Property
                and equipment, net
            
            
            
            
            $
            777,835
            
            $
            541,159





Of
      the
      $777,835 in net property and equipment as of September 30, 2008, $35,000 was
      added through the acquisition of WBBV FM during the third quarter of 2008
      including equipment purchases to support the acquired station.





**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 6.5% at September 30, 2008. The
      note matures on May 3, 2009. The balance of the line of credit at both September
      30, 2008 and 2007 was $75,000.





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 matures on December 31, 2008, and requires monthly interest payments
      accruing at an initial rate of 7.58% and a current rate of 4.73875% at September
      30, 2008. The rate is subject to monthly changes based on an independent index
      plus 2.25%.





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 after the signing of the related agreement. The principal balance
      of the note at September 30, 2008 and 2007 was $200,123 and $165,375,
      respectively.




11


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**








**Note
      7 - Notes Payable to Stockholders**








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
      January 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
      February 28, 2009.





Total
      interest expense associated with the stockholder loans for the three months
      ended September 30, 2008 and 2007 was $33,334 and $0 respectively. As of
      September 30, 2008 all accrued interest associated with the stockholder loans
      was paid out with a corresponding balance of $0. Total interest expense
      associated with the stockholder loans was $81,170 and $6,680 for the nine months
      ended September 30, 2008 and 2007.





**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 4.7375% as of
      September 30, 2008. 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 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.





Total
      interest expense on the Regions Bank loan for the three months ended September
      30, 2008 and 2007 was $2,363 and $5,006, respectively. Total interest expense
      for the nine months ended September 30 2008 and 2007 was $8,487 and $15,453,
      respectively. The balance of the loan at September 30, 2008 was $190,790 of
      which $11,733 was classified as current portion of long-term debt. The balance
      of the loan at September 30, 2007 was $245,239, of which $55,787 was classified
      as current portion of long-term debt.





**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. Total interest expense on the Citadel Communications
      loan
      for each of the three months ended September 30, 2008 and 2007 was
      $10,428 .
      The
      balance of the loan at both September 30, 2008 and 2007 was $347,491.





**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.





12


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**Note
      8 - Loans Payable (continued)**





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.





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 September 30, 2008
      and 2007 was $2,286 and $0, respectively. Total interest expense on the vehicle
      loans for the nine months ended September 30, 2008 and 2007 was $3,107 and
      $0,
      respectively. The principal balance of the vehicle loans as of September 30,
      2008 and 2007 was $132,232 and $97,566, respectively. At September 30, 2008,
      $7,268 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 September 30, 2008
      and 2007 was $175 and $0, respectively. Total interest expense on studio
      equipment for the nine months ended September 30, 2008 and 2007 was $710 and
      $0,
      respectively. The principal balance of the capital lease as of September 30,
      2008 and 2007 was $6,237 and $0, respectively. At September 30, 2008, $1,316
      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.





13


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**Note
      9 - Stockholders’ Equity (continued)**








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.





**Note
      10 - Business Combinations**





**California
      News Tech**





On
      May
      17, 2007, the Company entered into an Agreement and Plan of Merger with
      California News Tech, a public company that was incorporated in Nevada. The
      merger was accounted for as a reverse merger using the purchase method of
      accounting. Accordingly, the acquisition has been treated as an acquisition
      of
      California News Tech by the Company. MSI held all of the assets and operations
      of California News Tech at the date of the reverse merger.





As
      part
      of the reverse merger, each share of common stock of Debut Broadcasting, Inc.,
      a
      Tennessee corporation formerly known as The Marketing Group (“Debut
      Broadcasting”), issued and outstanding immediately prior to the closing of the
      reverse merger was converted into the right to receive one share of common
      stock. As a result, the stockholders of Debut Broadcasting received 10,000,000
      newly issued shares of common stock.





Also
      as
      part of the reverse merger, the Company issued 6,430,316 shares of Company
      common stock to investors as a result of closing a private offering that was
      exempt from registration under Rule 506 of Regulation D of the Securities Act
      of
      1933. The shares were issued for a combination of cash and debt reduction.





On
      June
      27, 2007, MSI filed a registration statement with the Securities and Exchange
      Commission with respect to the issued and outstanding shares of common stock
      of
      MSI for the purpose of completing a spin-off of MSI by transferring all of
      the
      shares of common stock of MSI to stockholders of record of California News
      Tech
      as of April 20, 2007. The Company completed the spin-off of MSI during August
      of
      2008.





As
      part
      of the reverse merger, the Company also entered into a Post-Merger Operating
      Agreement in which the Company and MSI agreed to operate their respective
      businesses separately and the Company specifically agreed that it would not
      interfere in any manner with the operations of MSI, have any rights to use,
      acquire or otherwise operate any of the assets or intellectual property of
      MSI
      or create any liabilities for which MSI would be obligated. In addition, MSI
      agreed that it would not interfere in any manner with the operations of the
      Company, have any rights to use, acquire or otherwise operate any of the assets
      or intellectual property of the Company or create any liabilities for which
      the
      Company would be obligated.





Moreover,
      as part of this Post-Merger Operating Agreement, the Company agreed that if
      for
      any reason California News Tech is unable to register the MSI shares, the
      Company would sell its MSI shares to the Company’s former president and
      director, Marian Munz, for $1.00. As a consequence, MSI has and will continue
      to
      operate completely separate from the Company effective as of the date of the
      reverse merger.





In
      addition, at the time of the reverse merger, the Company was released from
      certain liabilities to its former president and director, Mr. Munz, and his
      spouse; however, these liabilities continued as the sole responsibility of
      MSI
      in the form of two separate convertible promissory notes. These notes remain
      outstanding but, if converted under their terms into shares of MSI common stock,
      would represent over an 80% interest and full voting control over MSI.








14


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**Note
      10 - Business Combinations (continued)**





As
      a
      result, the Company considers MSI a non-controlled subsidiary and has not
      included any operating results, cash flow analysis or assets and liabilities
      of
      MSI in its consolidated financial statements.





**Shamrock
      Broadcasting, Inc.**





On
      June
      7, 2007, the Company acquired two radio broadcast stations identified as WNLA
      FM
      105.5 MHz and WNLA AM 1380 kHz in Indianola, Mississippi, from Shamrock
      Broadcasting, Inc., including all of the facilities, equipment, licenses and
      intellectual property necessary to operate these stations, in exchange for
      $300,000. In a separate agreement, the Company purchased the accounts receivable
      of Shamrock Broadcasting through issuance of a $10,134 promissory note payable
      in equal installments made in each of three months following completion of
      the
      transaction.





The
      purchase price was allocated as follows:





Description
            
            AmountAccounts
                receivable
            
            $
            10,134Land
            
            
            14,500Buildings
                and structures
            
            
            13,500Equipment
            
            
            30,000FCC
                licenses
            
            
            237,000Non-compete
                agreement
            
            
            5,000Liabilities
                assumed
            
            
            (10,134
            )Total
            
            $
            300,000





**River
      Broadcasting Company**





On
      June
      19, 2007, the Company acquired three radio broadcast stations identified as
      WIQQ
      FM 102.3 MHz in Leland, Mississippi, WBAQ FM 97.9 MHz and WNIX AM 1330 kHz
      in
      Greenville, MS, from River Broadcasting Company, including all of the
      facilities, equipment, licenses and intellectual property necessary to operate
      these stations, in exchange for $1,037,134. In
      September 2007, the Company identified a $14,280 liability that was not recorded
      as of the closing date of the transaction. This was recorded as an adjustment
      to
      goodwill.





The
      purchase price was allocated as follows:





Description
            
            AmountAccounts
                receivable
            
            $
            37,134Land
            
            
            35,000Buildings
                and structures
            
            
            50,000Equipment
            
            
            25,000FCC
                licenses
            
            
            800,000Non-compete
                agreement
            
            
            25,000Goodwill
            
            
            79,280Liabilities
                assumed
            
            
            (14,280
            )Total
            
            $
            1,037,134








We
      reported our acquisition of these five radio stations on a Form 8-K filed June
      22, 2007.


15


**DEBUT
      BROADCASTING CORPORATION, INC.**


**NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008**





**WBBV
      FM**





On
      August
      27, 2008, the Company acquired a radio broadcast station from Holladay
      Broadcasting of Louisiana, LLC identified as WBBV FM 101.3 MHz in Vicksburg,
      Mississippi, including all of the facilities, equipment, licenses and
      intellectual property necessary to operate this station, in exchange for
      $180,022.


The
      purchase price was allocated as follows:





Description
            
            AmountAccounts
                receivable
            
            $
            57,522Land
            
            
            0.00Buildings
                and structures
            
            
            25,000Equipment
            
            
            10,000FCC
                licenses
            
            
            472,500Non-compete
                agreement
            
            
            35,000Goodwill
            
            
            380,000Liabilities
                assumed
            
            
            (800,000
            )Total
            
            $
            180,022





**Holladay
      Broadcasting Company**





On
      March
      16, 2008, the Company entered into a Local Marketing Agreement for a radio
      broadcast station identified as KLSM FM 105.5 MHz in Tallulah, Louisiana with
      Holladay Broadcasting Company, including all of the facilities, equipment,
      licenses and intellectual property necessary to operate this station. The
      Company maintains the station including all revenues and expenses. Holladay
      Broadcasting Company has retained ownership of all assets and liabilities of
      the
      station as of March 16, 2008.





**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.


16


**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 separate operations of MSI,
      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, our lack
      of
      control over MSI, 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
      Radio
      Advertising Bureau report issued in September 2008 indicated that local
      advertisers, the largest advertisers which are served in small markets,
      decreased their overall advertising by 10% during the third quarter. Despite
      this report, we realized growth in our markets while the industry as a whole
      declined. Management believes that local market advertisers and automotive
      dealerships are advertising more in our markets in order to compete during
      the
      economic slowdown. Non-broadcast radio revenue (“non-spot revenue”) remained
      steady during the third quarter of 2008. Our rural 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 nine months
      ended September 30, 2008, combined net revenue from radio, multi-media, media
      purchasing and syndication increased 263% compared to the same period in
      2007.





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.




17





**Results
      of Operations**





**For
      the Three Months Ended September 30, 2008 and 2007**





We
      generated $741,074 in net revenue for the quarter ended September 30, 2008,
      an
      increase of $476,544 or 180%, compared to $264,530 for the quarter ended
      September 30, 2007. Approximately $220,000 of the increase relates to improved
      performance in our Greenville, Mississippi radio stations and the acquisition
      of
      WBBV, FM in Vicksburg, Mississippi. The remainder of the increase is
      attributable to growth in our core syndication revenue.





Advertising
      expense was $21,751 for the quarter ended September 30, 2008, an increase of
      $15,171 or 230%, compared to $6,580 for the quarter ended September 30, 2007.
      This increase is partially attributable to a public relations contract that
      we
      entered into with Politis Communications during the quarter ended September
      30,
      2008. Of the advertising expense, $5,000 was a non-cash expenditure evidenced
      by
      the issuance of warrants to purchase shares of our common stock.





Operating
      expense was $711,739 for the quarter ended September 30, 2008, an increase
      of
      $28,736 or 4%, compared to $683,003 for the quarter ended September 30, 2007.
      The increase in operating expense is attributable to the newly acquired
      Mississippi radio station, WBBV FM.





Depreciation
      and amortization expense was $28,889 for the quarter ended September 30, 2008,
      an increase of $2,278, or 8.6%, compared to $26,611 for the quarter ended
      September 30, 2007. The primary reason for the increase relates to certain
      assets purchased to keep equipment and facilities at our radio stations
      current.





During
      the quarter ended September 30, 2008, we recorded $10,405 in non-recurring
      merger and acquisition related expenses in connection with the acquisition
      of
      WBBV FM. During the quarter ended September 30, 2007, we recorded $57,634 in
      connection with the reverse merger with California News Tech and the
      acquisitions of Shamrock Broadcasting Company and River Broadcasting
      Company.





Interest
      expense was $46,200 for the quarter ended September 30, 2008, an increase of
      $23,142 or 100% compared to $23,058 for the quarter ended September 30, 2007.
      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 vehicles we lease for radio station
      operations.





Interest
      income was $7,143 for the quarter ended September 30, 2008, a decrease of 1,096
      or 13% compared to $8,239 for the quarter ended September 30, 2007. The primary
      sources of interest income for the quarter ended September 30, 2008 were finance
      charges assessed to customers in response to the slowed collection
      cycle.





As
      a
      result of the foregoing revenue and expenses, our overall net loss for the
      three-month period ending September 30, 2008 and September 30, 2007 was $70,767
      and $524,116, respectively.




**For
      the Nine Months Ended September 30, 2008 and 2007**





We
      generated $1,918,857 in net revenue for the nine months ended September 30,
      2008, an increase of $1,390,252, or 263%, compared to $528,605 for the nine
      months ended September 30, 2007. Approximately $713,000 of this increase relates
      to the six Mississippi radio station acquisitions, and approximately $677,000
      of
      the increase relates to the core syndication business.





Advertising
      expense was $174,491 for the nine months ended September 30, 2008 an increase
      of
      $137,896 or 377% compared to $36,595 for the nine months ended September 30,
      2007. This increase is partially attributable to a public relations contract
      that we entered into with Politis Communications. Additionally contributing
      to
      the increase were contracts that we entered into with Agoracom for investor
      relations services, as well as public relations contracts with Dutton Associates
      and Rubicon Capital Partners. Of the advertising expense, $35,739 was a non-cash
      expenditure evidenced by the issuance of warrants to purchase shares of our
      common stock.





18


Operating
      expense was $2,088,904 for the nine months ended September 30, 2008, an increase
      of $854,284 or 69%, compared to $1,234,620 for the nine months ended September
      30, 2007. Of the total increase in operating expenses, $570,551 related to
      the
      Mississippi radio acquisitions that began operations at the end of the second
      quarter of 2007. Additional reasons for the increase in operating expenses
      relate to $332,817 in costs associated with our public trading status.





Depreciation
      and amortization expense was $94,757 for the nine months ended September 30,
      2008, an increase of $56,734 or 149% compared to $36,595 for the nine months
      ended September 30, 2007. The primary reason for the increase relates to the
      assets acquired as part of the Shamrock Broadcasting, Inc. and River
      Broadcasting Company acquisitions.





During
      the nine months ended September 30, 2008, we recorded $11,300 in non-recurring
      merger and acquisition related expenses in connection with the acquisition
      of
      WBBV FM. During the nine months ended September 30, 2007 we recorded $339,928
      in
      non-recurring merger and acquisition related expenses in connection with the
      reverse merger with California News Tech.





Interest
      expense was $153,795 for the nine months ended September 30, 2008, an increase
      of $77,663 or 102% compared to $76,132 for the nine months ended September
      30,
      2007. 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 that have been financed for
      the radio station operations.





Interest
      income was $9,542 for the nine months ended September 30, 2008, a decrease
      of
      $8,814 or 48% compared to $18,356 for the nine months ended September 30, 2007.
      The primary cause of the decrease is a decreased balance in an interest earning
      investment account in 2008.





As
      a
      result of the foregoing revenue and expenses, our overall net loss for the
      nine-month period ending September 30, 2008 and September 30, 2007 was $594,848
      and $1,235,971, respectively.





**Financial
      Condition**





Accounts
      receivable, net of allowance for doubtful accounts was $1,396,030 at September
      30, 2008, an increase of $745,180 or 114% compared to $650,580 at December
      31,
      2007. The combination of our sales growth in syndication revenues and local
      radio advertising, combined with a slower collection cycle resulting from the
      economic downturn has contributed to the increase in the accounts receivable
      balance.





Other
      current assets were $465,844 at September 30, 2008, an increase of $420,121
      compared to $45,723 at December 31, 2007 related to the issuance of 12 warrants
      to purchase shares of our common stock. In accordance with SFAS 133, we recorded
      an associated asset and liability for the issuance of warrants, which will
      be
      adjusted quarterly using the Black-Scholes method of derivative
      valuation.





In
      the
      first and second quarters of 2008, we relocated our studio and offices in
      Greenville, Mississippi to a new office location. All leasehold improvements
      at
      the prior office location were fully depreciated at December 31, 2007. During
      the third quarter of 2008, we acquired the radio broadcast station identified
      as
      WBBV FM. As a result of the move and the acquisition, we acquired additional
      fixed assets, increasing our property and equipment, net of depreciation, to
      $777,835 compared to $541,159 at December 31, 2007.





Accounts
      payable at September 30, 2008 was $498,920, an increase of $159,186 or 47%
      compared to $339,734 at December 31, 2008. This increase in accounts payable
      is
      attributable to additional liabilities associated with the acquisition of WBBV
      FM in Vicksburg, Mississippi and the local marketing agreements with KLSM FM in
      Tallulah, Louisiana and WQBC
      in Vicksburg, Mississippi.





Accrued
      expenses and taxes at September 30, 2008 were $1,180,127, an increase of
      $840,685 from December 31, 2007. Approximately half of this increase is related
      to the separate issuance of 12 warrants to purchase shares of our common stock.
      In accordance with SFAS 133, we recorded an associated asset and liability
      for
      the issuance of warrants, which will be adjusted quarterly using the
      Black-Scholes method of derivative valuation. The remaining increase in accrued
      expenses and taxes is predominantly an accrual for revenue sharing among our
      syndication affiliates. This accrued expense was directly associated with the
      increase in accounts receivable.


19


In
      January and February of 2008, we exercised two loans with Remington Partners,
      Inc. for a total of $750,000 in notes payable to stockholders. As a result,
      our
      notes payable to stockholders were $750,000 at September 30, 2008 compared
      to $0
      at December 31, 2007.





**Liquidity and
      Capital Resources**





As
      of
      September 30, 2008, we had current assets in the amount of $1,932,435 and
      current liabilities in the amount of $2,814,400. This resulted in a working
      capital deficit in the amount of $881,965. 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. Our board of directors has given management the approval to seek
      reasonable and necessary debt and equity financing during the fourth quarter
      ended December 31, 2008. We intend to raise additional capital over the next
      six
      months through equity offerings or by incurring debt.





We
      made
      our initial radio station acquisitions without taking on any additional debt
      financing. However, we did incur debt financing in connection with the
      acquisition of WBBV FM. Debt financing may also be advisable and attractive
      as
      we contemplate future additional acquisitions.





Although
      we are 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 stockholders, 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 expect to incur
      appropriate accounting and legal fees.





**Recent
      Events**





*Pending
      Acquisitions*




During
      the fourth quarter of 2007, we signed letters of intent to purchase seven
      additional radio stations in two markets. During the third quarter of 2008,
      we
      finalized the acquisition of one of these stations, WBBV FM. An additional
      station, KLSM FM was placed under a local marketing agreement on March 16,
      2008.





On
      August
      22, 2008, we placed WQBC AM under a local marketing agreement. We have not
      yet
      signed a letter of intent to purchase this station.





20


These
      markets complement the geography of our existing radio stations and will create
      a super-regional clusterTM resulting in an anticipated reduction in operating
      costs of up to 17% incrementally. We anticipate signing asset purchase
      agreements, and filing for FCC license transfers for the six additional stations
      during the fourth quarter of 2008 and first quarter of 2009. Management believes
      that these acquisitions, if completed, will represent overall growth in radio
      operations of 140% year over year.





**Off
      Balance Sheet Arrangements**





As
      of
      September 30, 2008, 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.





Accounting
      Pronouncements





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”), 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.**





We
      carried out an evaluation of the effectiveness of the design and operation
      of
      our disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) as of September 30, 2008. This evaluation was carried
      out under the supervision and with the participation of our Chief Executive
      Officer, Mr. Steve Ludwig, and our Chief Financial Officer, Ms. Sariah Hopkins.
      Based upon that evaluation, our Chief Executive Officer and Chief Financial
      Officer concluded that, as of September 30, 2008, our disclosure controls and
      procedures were effective.





Disclosure
      controls and procedures are controls and other procedures that are designed
      to
      ensure that information required to be disclosed in our reports filed or
      submitted under the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”) are recorded, processed, summarized and reported, within the time periods
      specified in the SEC's rules and forms. Disclosure controls and procedures
      include, without limitation, controls and procedures designed to ensure that
      information required to be disclosed in our reports filed under the Exchange
      Act
      is accumulated and communicated to management, including our Chief Executive
      Officer and Chief Financial Officer, to allow timely decisions regarding
      required disclosure.


21





Limitations
      on the Effectiveness of Disclosure Controls and Procedures





Our
      management does not expect that our disclosure controls and procedures will
      necessarily prevent all fraud and material error. Our disclosure controls and
      procedures are designed to provide reasonable assurance of achieving our
      objectives and our Chief Executive Officer and Chief Financial Officer concluded
      that our disclosure controls and procedures are effective at that reasonable
      assurance level. Further, the design of a control system must reflect the fact
      that there are resource constraints, and the benefits of controls must be
      considered relative to their costs. Because of the inherent limitations in
      all
      control systems, no evaluation of controls can provide absolute assurance that
      all control issues and instances of fraud, if any, within the 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. Additionally, controls can be circumvented by the individual
      acts of some persons, by collusion of two or more people, or by management
      override of the internal control. The design of any system of controls also
      is
      based in part upon certain assumptions about the likelihood of future events,
      and there can be no assurance that any design will succeed in achieving its
      stated goals under all potential future conditions. Over time, control may
      become inadequate because of changes in conditions, or the degree of compliance
      with the policies or procedures may deteriorate.








22


**PART
      II - OTHER INFORMATION**





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





On
      September 22, 2008, we issued to a third party a warrant to purchase 18,000
      shares of our 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.





On
      September 22, 2008, we issued to a third party a warrant to purchase 27,000
      shares of our 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.





On
      September 30, 2008, we issued to Politis Communications a warrant to purchase
      5,495 shares of our common stock at an exercise price of $0.91 per share, with
      an expiration date of September 29, 2018. The consideration received for this
      warrant was public relations services rendered by Politis
      Communications.





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.





**Item
      6.      Exhibits**





**Exhibit
                Number**
            ****
            **Description
                of Exhibit**10.1
            
            Time
                Brokerage Agreement with Grace Media International, dated as of August
                15,
                2008 (incorporated herein by reference to exhibit 10.1 of our Current
                Report on Form 8-K, filed on August 28, 2008).10.2
            
            Commercial
                Note, dated August 22, 2008, issued to SunTrust Banks, Inc. (incorporated
                herein by reference to exhibit 10.1 of our Current Report on
                Form 8-K, filed on August 28, 2008).10.3
            
            Security
                Agreement, dated August 22 2008, issued to SunTrust Banks, Inc.
                (incorporated herein by reference to exhibit 10.2 of our Current
                Report on
                Form 8-K, filed on August 28, 2008).10.4
            
            Collateral
                Letter, dated August 22 2008, from SunTrust Banks, Inc. (incorporated
                herein by reference to exhibit 10.3 of our Current Report on
                Form 8-K, filed on August 28, 2008).10.5
            
            Promissory
                Note, dated August 31, 2008, issued to Holladay Broadcasting Company
                of
                Louisiana, LLC (incorporated herein by reference to exhibit 10.2
                of our
                Current Report on Form 8-K, filed on September 9,
                2008).31.1
            
            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





23


**SIGNATURES**





Pursuant
      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.November
              13, 2008
            
            /s/ Sariah
              HopkinsSariah
                Hopkins
              Chief
                Financial Officer


24


INDEX
      TO
      EXHIBITS





**Exhibit
                Number**
            ****
            **Description
                of Exhibit**10.1
            
            Time
                Brokerage Agreement with Grace Media International, dated as of August
                15,
                2008 (incorporated herein by reference to exhibit 10.1 of our Current
                Report on Form 8-K, filed on August 28, 2008).10.2
            
            Commercial
                Note, dated August 22, 2008, issued to SunTrust Banks, Inc. (incorporated
                herein by reference to exhibit 10.1 of our Current Report on
                Form 8-K, filed on August 28, 2008).10.3
            
            Security
                Agreement, dated August 22 2008, issued to SunTrust Banks, Inc.
                (incorporated herein by reference to exhibit 10.2 of our Current
                Report on
                Form 8-K, filed on August 28, 2008).10.4
            
            Collateral
                Letter, dated August 22 2008, from SunTrust Banks, Inc. (incorporated
                herein by reference to exhibit 10.3 of our Current Report on
                Form 8-K, filed on August 28, 2008).10.5
            
            Promissory
                Note, dated August 31, 2008, issued to Holladay Broadcasting Company
                of
                Louisiana, LLC (incorporated herein by reference to exhibit 10.2
                of our
                Current Report on Form 8-K, filed on September 9,
                2008).31.1
            
            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