**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      DC 20549





**FORM
        10-QSB/A**





[X]
            Quarterly
                Report pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934For
                the quarterly period endedJune
                30, 2007[
                ]
            Transition
                Report pursuant to 13 or 15(d) of the Securities Exchange Act of
                1934For
                the transition period __________to__________Commission
                File Number:333-107300





Debut
      Broadcasting Corporation, Inc.


(Exact
      name of small business issuer as specified in its charter)





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




1209
                16thAvenue South, Nashville, TN 37212(Address
                of principal executive offices)





615-
                866-0530(Issuer’s
                telephone number)California
                News Tech, 825 Van Ness Avenue Suite 406-407, 4th Floor
              San
                Francisco, California 94109(Former
                name, former address and former fiscal year, if changed since last
                report)





Check
      whether the issuer (1) 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 issuer was required to file such reports),
      and
      (2) has been subject to such filing requirements for the past 90 days [X] Yes
      [
      ] No





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





State
      the
      number of shares outstanding of each of the issuer’s classes of common stock, as
      of the latest practicable date: 19,794,360  common
      shares as of June 30, 2007.





Transitional
      Small Business Disclosure Format (check one): Yes [ ] No [X]


Table
          of Contents




**EXPLANATORY
        NOTE**





Debut
        Broadcasting Corporation, Inc. (the “Company”) is filing this Amendment
        No. 1 on Form 10-QSB/A (this “Amendment”) to its Quarterly Report on Form
        10-QSB for the quarter ended June 30, 2007, which was originally filed with
        the Securities and Exchange Commission (the “SEC”) on August 20, 2007 (the
“Original Filing”), to amend and restate the Company’s consolidated financial
        statements (the “Restatement”) for the three and six months ended June 30,
        2007. The Company is amending and restating its consolidated financial
        statements to reflect that the Company did not control the operations of
        Media
        Sentiment, Inc., a wholly-owned subsidiary of the Company, effective as of
        May
        17, 2007, the date of the reverse merger discussed in the Original Filing
        and
        the Amendment. In
        addition, the Company determined that it should have recognized an accounting
        methodology change in the quarter ended June 30, 2007 and establish an accrual
        for uncollected producer sharing costs to more accurately match the national
        advertising agency revenue to its corresponding producer sharing expenses.
        The
        Company concluded that the cumulative effect on prior periods was considered
        immaterial; however, believed that is should have been recorded for the quarter
        ended June 30, 2007.





For
        the
        convenience of the reader, this Amendment sets forth the Original Filing
        in its
        entirety. However, this Amendment amends and restates Items 1, 2 and 3 of
        Part I as a result of, and to reflect, the Restatement and related matters.
        For a description of the Restatement, see Note 3 “Restatement of Financial
        Statements” to the accompanying interim consolidated financial statements
        contained in this Amendment. In addition, Exhibits 31.1, 31.2, 32.1 and 32.2
        of
        the Original Filing have been amended to contain currently dated certifications
        from the Company’s Chief Executive Officer and Chief Financial Officer. No other
        information in the Original Filing is amended hereby. The foregoing items
        have
        not been updated to reflect other events occurring after the filing of the
        Original Filing or to modify or update those disclosures affected by subsequent
        events. Except for the amended information related to the Restatement, the
        information in this Amendment is as of the date of the Original Filing and
        the
        Company has not updated the disclosure contained herein to reflect events
        that
        occurred as of a later date. Forward-looking statements in this Amendment
        have
        also not been updated from the Original Filing. Other events occurring after
        June 30, 2007 or other disclosures necessary to reflect subsequent events
        will be addressed in the Company’s Quarterly Report on Form 10-QSB for the
        quarter ended September 30, 2007, which will be filed after the date of this
        Amendment, and any reports filed with the SEC subsequent to the date of this
        filing.




2
 Table
          of Contents




TABLEOF
                  CONTENTS
              PagePART
                  I - FINANCIAL INFORMATIONItem
                  1.
              Financial
                  Statements
              4Item
                  2.
              Management’s
                  Discussion and Analysis or Plan of
                  Operation
              5Item
                  3.
              Controls
                  and Procedures
              20PART
                  II - OTHER INFORMATIONItem
                  1.
              Legal
                  Proceedings
              21Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of
                  Proceeds
              21Item
                  3.
              Defaults
                  Upon Senior Securities
              21Item
                  4.
              Submission
                  of Matters to a Vote of Security
                  Holders
              21Item
                  5.
              Other
                  Information
              21Item
                  6.
              Exhibits
              21





3
 Table
            of Contents





**PART
      I - FINANCIAL INFORMATION**





**Item1.**  **Financial
      Statements**





Our
                unaudited financial statements included in this Form 10-QSB are as
                follows:F-1
            Condensed
                Consolidated Balance Sheets as of June 30, 2007 and
                December 31, 2006;F-2
            Consolidated
                Statements of Operations for thequarter
                and six months ended June 30, 2007 and 2006;F-3
            Consolidated
                Statements of Cash Flows for the six months ended
                June 30, 2007 and 2006;








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-QSB. 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, 2007
      are
      not necessarily indicative of the results that can be expected for the full
      year.





4
 Table
            of Contents


**DEBUTBROADCASTING
        CORPORATION, INC.**
 **CONDENSED
        CONSOLIDATED BALANCE SHEETS**
  ASSETS
                June
                        30
                      2007
                      (Unaudited)
                
                December
                      31
                    2006Current
                    assetsCash
                    and cash equivalents
                $
                1,187,121
                
                $
                86,112Accounts
                    receivable, net
                
                466,635
                
                
                402,067Other
                    current assets
                
                97,880
                
                
                -Total
                    current assets
                
                1,751,636
                
                
                488,179Property
                    and equipment, net
                
                356,105
                
                
                62,026Goodwill
                
                64,999
                
                
                -FCC
                    licenses
                
                1,037,000
                
                
                -Other
                    intangible assets, net
                
                29,261
                
                
                -Total
                    assets
                $
                3,239,001
                
                $
                550,205LIABILITIES
                    AND STOCKHOLDERS' EQUITY (DEFICIT)Current
                    liabilitiesAccounts
                    payable
                $
                360,789
                
                $
                167,048Accrued
                    expenses and taxes
                
                269,582
                
                
                50,154Notes
                    payable
                
                6,756
                
                
                -Notes
                    payable to shareholders
                
                -
                
                
                215,158Lines
                    of credit
                
                240,375
                
                
                210,375Current
                    portion of long-term debt
                
                54,995
                
                
                -Total
                    current liabilities
                
                932,497
                
                
                642,735Long
                    term liabilitiesLong-term
                    debt
                
                550,903
                
                
                631,768Total
                    long term liabilities
                
                550,903
                
                
                631,768Total
                    liabilities
                
                1,483,400
                
                
                1,274,503Stockholders'
                    equity (deficit)Common
                    stock - $.003 par value, 100,000,000 shares authorized 19,794,360
                    and
                  19,794,360
                    issued and outstanding, respectively. (See
                    Note 4)
                
                30,383
                
                
                1,000Additional
                    paid in capital
                
                3,162,272
                
                
                -Accumulated
                    deficit
                
                (1,437,054)
                
                
                (725,298)Total
                    stockholders' equity (deficit)
                
                1,755,601
                
                
                (724,298)Total
                    liabilities and stockholders' equity (deficit)
                $
                3,239,001
                
                $
                550,205


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


Table
          of Contents
 **DEBUTBROADCASTING
          CORPORATION, INC.**
 **CONDENSED
          CONSOLIDATED STATEMENTS OF OPERATIONS**
 (Unaudited)


Three
                      months ended June 30,
                  
                  Six
                      months ended June 30,2007
                  
                  2006
                  
                  2007
                  
                  2006Net
                      Revenue
                  $
                  638,873
                  
                  $
                  684,995
                  
                  $
                  1,284,108
                  
                  $
                  1,093,354Operating
                      expensesAdvertising
                  
                  4,491
                  
                  
                  -
                  
                  
                  7,777
                  
                  
                  -Operating
                      expense
                  
                  957,937
                  
                  
                  656,675
                  
                  
                  1,593,889
                  
                  
                  1,136,796Depreciation
                      expense
                  
                  6,703
                  
                  
                  4,580
                  
                  
                  11,413
                  
                  
                  9,161Merger
                      and acquisition related expenses
                  
                  255,974
                  
                  
                  -
                  
                  
                  339,828
                  
                  
                  -Total
                      operating expenses
                  
                  1,225,105
                  
                  
                  661,255
                  
                  
                  1,952,907
                  
                  
                  1,145,957Operating
                      income
                  
                  (586,232)
                  
                  
                  23,740
                  
                  
                  (668,799)
                  
                  
                  (52,603)Other
                      expense (income)Interest
                      expense
                  
                  26,159
                  
                  
                  31,141
                  
                  
                  53,074
                  
                  
                  60,304Interest
                      income
                  
                  (10,116)
                  
                  
                  -
                  
                  
                  (10,117)
                  
                  
                  -Total
                      other expenses
                  
                  16,043
                  
                  
                  31,141
                  
                  
                  42,957
                  
                  
                  60,304Net
                      (loss)
                  $
                  (602,275)
                  
                  $
                  (7,401)
                  
                  $
                  (711,756)
                  
                  $
                  (112,907)Loss
                      per common shareBasic
                      and diluted
                  $
                  (0.03)
                  
                  $
                  -
                  
                  $
                  (0.04)
                  
                  $
                  (0.01)Weighted
                      average number of shares outstanding, basic
                      and diluted
                  
                  19,794,360
                  
                  
                  19,794,360
                  
                  
                  19,794,360
                  
                  
                  19,794,360
 The
          accompanying notes are an integral part of these financial
          statements.
 Table
              of Contents
 **DEBUTBROADCASTING
            CORPORATION, INC.**
 **CONDENSED
            CONSOLIDATED STATEMENTS OF CASH FLOWS**
 (Unaudited)
  For
                        the Six Months Ended June 30,2007
                    
                    2006Operating
                        activities:Net
                      loss
                    $
                    (711,756)
                    
                    $
                    (112,907)Adjustments
                      to reconcile net loss to net cash provided by/(used
                      in) operating activities:Depreciation
                        and amortization
                    
                    11,413
                    
                    
                    9,161Changes
                        in operating assets and liabilities, net of effects of
                        acquisitions:(Increase)
                        decrease in accounts receivable
                    
                    (17,299)
                    
                    
                    205,466(Increase)
                        decrease in other current assets
                    
                    (97,880)
                    
                    
                    -Increase
                        (decrease) in accounts payable
                    
                    193,741
                    
                    
                    (8,107)Increase
                        (decrease) in accrued expenses and taxes
                    
                    219,428
                    
                    
                    (8,756)Net
                      cash provided by/(used in) operating activities
                    
                    (402,353)
                    
                    
                    84,857Investing
                        activities:Purchases
                        of property and equipment
                    
                    (136,753)
                    
                    
                    (13,026)Acquisition
                        of Shamrock Broadcasting
                    
                    (300,000)
                    
                    
                    -Acquisition
                        of River Broadcasting
                    
                    (1,037,134)
                    
                    
                    -Net
                      cash used in investing activities
                    
                    (1,473,887)
                    
                    
                    (13,026)Financing
                        activities:Net
                        proceeds from private placement of common stock
                    
                    2,976,497
                    
                    
                    -Proceeds
                        from bank credit facility
                    
                    30,000
                    
                    
                    -Procceds
                        from shareholder notes
                    
                    -
                    
                    
                    29,188Repayment
                        of long term debt
                    
                    (29,248)
                    
                    
                    (13,180)Net
                      cash provided by financing activities
                    
                    2,977,249
                    
                    
                    16,008Net
                        increase in cash and cash equivalents
                    
                    1,101,009
                    
                    
                    87,839Cash
                        and cash equivalents at beginning of period
                    
                    86,112
                    
                    
                    (7,910)Cash
                        and cash equivalents at end of period
                    $
                    1,187,121
                    
                    $
                    79,929
  The
          accompanying notes are an integral part of these financial
          statements.
 Table
              of Contents
 **DEBUT
          BROADCASTING CORPORATION, INC. AND SUBSIDIARIES** **CONDENSED
            CONSOLIDATED STATEMENTS OF CASH FLOWS**
 (Unaudited)
  For
                        the Six Months Ended June 30,2007
                    
                    2006Supplemental
                        disclosure of cash flow information:Cash
                        paid during the period for:Interest
                    $
                    53,074
                    
                    $
                    60,304Income
                        taxes
                    $
                    -
                    
                    $
                    -Schedule
                        of non-cash investing and financing activities:Issuance
                        of common stock in connection with conversion
                        of debenture
                        payable
                    $
                    100,000
                    
                    $
                    -Issuance
                        of common stock in connection with conversion of shareholder
                        notes payable
                    $
                    215,158
                    
                    $
                    -Purchase
                        of assets of Shamrock Broadcasting and assumption
                        of liabilities in the acquisition as follows:Fair
                        value of non-cash tangible assets acquired
                    $
                    310,134
                    
                    $
                    -Cash
                        paid
                    
                    (300,000)
                    
                    
                    -Liabilities
                        assumed
                    $
                    (10,134)
                    
                    $
                    -Purchase
                        of assets of River Broadcasting and assumption
                        of liabilities in the acquisition as follows:Fair
                        value of non-cash tangible assets acquired
                    $
                    972,134
                    
                    $
                    -Goodwill
                    
                    65,000
                    
                    
                    -Cash
                        paid
                    
                    (1,037,134)
                    
                    
                    -Liabilities
                        assumed
                    $
                    -
                    
                    $
                    -
  The
          accompanying notes are an integral part of these financial
          statements.
 Table
              of Contents
  **Note
        1 - Organization**
 
 Debut
        Broadcasting Corporation, Inc. (the “Company”) is located in Nashville, TN and
        conducts business from its principal executive office at 1209 16 th Avenue
        South, Nashville, TN 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 twenty-one
        radio
        programs, which are broadcast over approximately 1,100 radio station affiliates.
        These radio programs have an estimated 40 million U.S. listeners per week.
        In
        addition to its syndication services Debut Broadcasting Corporation, Inc.
        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,
        TN.
        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
          11 -
          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, registering
          100% of
          the issued and outstanding shares of MSI for the purpose of completing
          a
          spin-off of MSI by transferring all of the common shares of MSI to shareholders
          of record of California News Tech as of April 20, 2007. The Company anticipates
          completing the spin-off of MSI during the fourth quarter of
          2007.
 
 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 note payable in
          each of
          three months following completion of the transaction.
 
 On
          June
          19, 2007, the
          Company acquired three radio broadcast stations identified as WIQQ FM 102.3
          MHz
          in Leland, MS, WBAQ FM 97.9 MHz and WNIX AM 1330 kHz in Greenville, Mississippi,
          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.
  Table
            of Contents
  **Note
        2 - Basis of Presentation and Interim Results**
 
 The
        condensed consolidated financial statements include the accounts of Debut
        Broadcasting Corporation, Inc. (the “Company”), and its subsidiaries. The
        interim financial statements of Debut Broadcasting Corporation, Inc. have
        been
        prepared without audit.
 
 These
          interim results exclude the assets, liabilities and operations of MSI,
          a
          wholly-owned subsidiary, that the Company does not control and expects
          to spin
          off during the fourth quarter of 2007 (See Note 10 - Business
          Combinations).
 
 Certain
          information and footnote disclosures normally included in annual financial
          statements prepared in accordance with generally accepted accounting principles
          have been condensed or omitted. The company believes 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, 2006. 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.
 
 Revenue
        and Cost Recognition
 
 The
        Company recognizes it 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 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.
 
 Advertising
 
 The
        Company expenses advertising costs as they are incurred. Total advertising
        costs
        of $4,491 and $0 are included in the financial statements for the three months
        ended June 30, 2007 and June 30, 2006, respectively. Total advertising costs
        of
        $7,777 and $0 are included in the financial statements for the six months
        ended
        June 30, 2007 and June 30, 2006, respectively.
  Table
            of Contents
  **Note
          3 — Restatement of Financial Statements**
 
 As
          part
          of the Company’s financial review during the quarter ending September
          30, 2007, the Company determined that it had incorrectly included the
          assets, liabilities and operations of MSI in its consolidated financial
          statements. The Company determined that, pursuant to a Post-Merger Operating
          Agreement, dated as of May 17, 2007, it did not control MSI as of such
          date and,
          therefore, its consolidated financial statements should exclude MSI’s assets,
          liabilities and operations. The Company concluded that the inclusion of
          MSI’s
          assets, liabilities and operations in its consolidated financial statements
          for
          the three months and six months ended June 30, 2007 was a material error,
          necessitating the restatement of the Company’s financial statements for the
          quarter ended June 30, 2007. In addition, the Company determined that it
          should have recognized an accounting methodology change in the quarter
          ended
          June 30, 2007 and established an accrual for uncollected producer sharing
          costs
          to more accurately match the national advertising agency revenue to its
          corresponding producer sharing expenses. The Company concluded that the
          cumulative effect on prior periods was considered immaterial; however,
          believed
          that is should have been recorded for the quarter ended June 30,
          2007.
 
 The
          following tables summarize the effect of the restatement adjustments on
          the
          financial statements as of June 30, 2007 and for the three and six months
          ended
          June 30, 2007:
  Table
            of Contents
 **DEBUT
        BROADCASTING CORPORATION, INC.**
 **CONDENSED
        CONSOLIDATED BALANCE SHEETS**
 **(Unaudited)**
  ASSETS
                June
                    30
                  2007
                  (as
                    reported)
                
                Adjustments
                
                June
                    30
                  2007
                  (as
                    restated)Current
                  assetsCash
                    and cash equivalents
                $
                1,248,112
                
                $
                (60,991)
                
                $
                1,187,121Accounts
                    receivable, net
                
                469,145
                
                
                (2,510)
                
                
                466,635Other
                    current assets
                
                109,180
                
                
                (11,300)
                
                
                97,880Total
                    current assets
                
                1,826,437
                
                
                (74,801)
                
                
                1,751,636Property
                    and equipment, net
                
                356,105
                
                
                -
                
                
                356,105Goodwill
                
                124,933
                
                
                (59,934)
                
                
                64,999FCC
                    licenses
                
                1,037,000
                
                
                -
                    -
                
                
                1,037,000Other
                    intangible assets, net
                
                247,632
                
                
                (218,371)
                
                
                29,261Total
                    assets
                $
                3,592,107
                
                $
                (353,106)
                
                $
                3,239,001LIABILITIES
                    AND STOCKHOLDERS' EQUITY (DEFICIT)Current
                    liabilitiesAccounts
                    payable
                $
                460,135
                
                $
                (99,346)
                
                $
                360,789Accrued
                    expenses and taxes
                
                84,514
                
                
                185,068
                
                
                269,582Notes
                    payable
                
                6,756
                
                
                -
                
                
                6,756Notes
                    payable to shareholders
                
                148,000
                
                
                (148,000)
                
                
                -Lines
                    of credit
                
                240,375
                
                
                -
                
                
                240,375Current
                    portion of long-term debt
                
                54,995
                
                
                -
                
                
                54,995Total
                    current liabilities
                
                994,775
                
                
                (62,278)
                
                
                932,497Long
                    term liabilitiesLong-term
                    debt
                
                550,903
                
                
                -
                
                
                550,903Total
                    long term liabilities
                
                550,903
                
                
                -
                
                
                550,903Total
                    liabilities
                
                1,545,678
                
                
                (62,278)
                
                
                1,483,400Stockholders'
                    equity (deficit)Common
                    stock - $.003 par value, 100,000,000 shares authorized 19,794,360
                    and
                  19,794,360
                    shares issued and outstanding, respectively.
                
                30,383
                
                
                -
                
                
                30,383Additional
                    paid in capital
                
                3,364,204
                
                
                (201,932
                
                
                3,162,272Accumulated
                    deficit
                
                (1,348,158)
                
                
                (88,896)
                
                
                (1,437,054)Total
                    stockholders' equity (deficit)
                
                2,046,429
                
                
                (290,828)
                
                
                1,755,601Total
                    liabilities and stockholders' equity (deficit)
                $
                3,592,107
                
                $
                (353,106)
                
                $
                3,239,001
  Table
            of Contents
 **DEBUT
        BROADCASTING CORPORATION, INC.**
 **CONDENSED
        CONSOLIDATED STATEMENTS OF OPERATIONS**
 **(Unaudited)**
 
 Three
                    months ended June 30, 2007
                  (as
                    reported)
                
                Adjustments
                
                Three
                    months ended June 30, 2007
                  (as
                    restated)Net
                    Revenue
                $
                644,941
                
                $
                (6,068)
                
                $
                638,873Operating
                    expensesAdvertising
                
                4,491
                
                
                -
                
                
                4,491Operating
                    expense
                
                866,709
                
                
                91,228
                
                
                957,937Depreciation
                    expense
                
                15,103
                
                
                (8,400)
                
                
                6,703Merger
                    and acquisition related expenses
                
                255,974
                
                
                -
                
                
                255,974Total
                    operating expenses
                
                1,142,277
                
                
                82,828
                
                
                1,225,105Operating
                    income
                
                (497,336)
                
                
                (88,896)
                
                
                (586,232)Other
                    expense (income)Interest
                    expense
                
                26,159
                
                
                -
                
                
                26,159Interest
                    income
                
                (10,116)
                
                
                -
                
                
                (10,116)Total
                    other expenses
                
                16,043
                
                
                -
                
                
                16,043Net
                    (loss)
                $
                (513,379)
                
                $
                (88,896)
                
                $
                (602,275)Loss
                    per common shareBasic
                    and diluted
                $
                (0.03)
                
                $
                0.00
                
                $
                (0.03)Weighted
                    average number of shares outstanding, basic and diluted
                
                19,794,360
                
                
                19,794,360
                
                
                19,794,360
  Table
            of Contents
 **DEBUT
        BROADCASTING CORPORATION, INC.**
 **CONDENSED
        CONSOLIDATED STATEMENTS OF OPERATIONS**
 **(Unaudited)**
 
 Six
                    months ended
                  June
                    30, 2007
                  (as
                    reported)
                
                Adjustments
                
                Six
                    months ended
                  June
                    30, 2007
                  (as
                    restated)Net
                    Revenue
                $
                1,290,176
                
                $
                (6,068)
                
                $
                1,284,108Operating
                    expensesAdvertising
                
                7,777
                
                
                -
                
                
                7,777Operating
                    expense
                
                1,502,661
                
                
                91,228
                
                
                1,593,889Depreciation
                    expense
                
                19,813
                
                
                (8,400)
                
                
                11,413Merger
                    and acquisition related expenses
                
                339,828
                
                
                -
                
                
                339,828Total
                    operating expenses
                
                1,870,079
                
                
                82,828
                
                
                1,952,907Operating
                    income
                
                (579,903)
                
                
                (88,896)
                
                
                (668,799)Other
                    expense (income)Interest
                    expense
                
                53,074
                
                
                -
                
                
                53,074Interest
                    income
                
                (10,117)
                
                
                -
                
                
                (10,117)Total
                    other expenses
                
                42,957
                
                
                -
                
                
                42,957Net
                    (loss)
                $
                (622,860)
                
                $
                (88,896)
                
                $
                (711,756)Loss
                    per common shareBasic
                    and diluted
                $
                (0.03)
                
                $
                (0.00)
                
                $
                (0.04)Weighted
                    average number of shares outstanding, basic and diluted
                
                19,794,360
                
                
                19,794,360
                
                
                19,794,360
  Table
            of Contents
 **DEBUT
        BROADCASTING CORPORATION, INC. AND SUBSIDIARIES**
 **CONDENSED
        CONSOLIDATED STATEMENTS OF CASH FLOWS**
 **(Unaudited)**
  For
                    the Six Months Ended June 30, 2007
                  (as
                    reported)
                
                Adjustment
                
                For
                    the Six Months Ended June 30, 2007
                  (as
                    restated)Operating
                    activities:Net
                    loss
                $
                (622,860)
                
                $
                (88,896)
                
                $
                (711,756)Adjustments
                    to reconcile net loss to net cash provided by/(used
                    in) operating activities:Depreciation
                    and amortization
                
                19,813
                
                
                (8,400)
                
                
                11,413Changes
                    in operating assets and liabilities, net of effects of
                    acquisitions:(Increase)
                    decrease in accounts receivable
                
                (17,299)
                
                
                -
                
                
                (17,299)(Increase)
                    decrease in other current assets
                
                (97,880)
                
                
                -
                
                
                (97,880)Increase
                    (decrease) in accounts payable
                
                224,989
                
                
                (31,248)
                
                
                193,741Increase
                    (decrease) in accrued expenses and taxes
                
                52,360
                
                
                167,068
                
                
                219,428Net
                    cash provided by/(used in) operating activities
                
                (440,877)
                
                
                38,524
                
                
                (402,353)Investing
                    activities:Purchases
                    of property and equipment
                
                (136,753)
                
                
                -
                
                
                (136,753)Acquisition
                    of California News Tech, net of acquired cash
                
                99,515
                
                
                (99,515)
                
                
                -Acquisition
                    of Shamrock Broadcasting
                
                (300,000)
                
                
                -
                
                
                (300,000)Acquisition
                    of River Broadcasting
                
                (1,037,134)
                
                
                -
                
                
                (1,037,134)Net
                    cash used in investing activities
                
                (1,374,372)
                
                
                (99,515)
                
                
                (1,473,887)Financing
                    activities:Net
                    proceeds from private placement of common stock
                
                2,976,497
                
                
                -
                
                
                2,976,497Proceeds
                    from bank credit facility
                
                30,000
                
                
                -
                
                
                30,000Proceeds
                    from shareholder notes
                
                -
                
                
                
                
                
                -Repayment
                    of long term debt
                
                (29,248)
                
                
                -
                
                
                (29,248)Net
                    cash provided by financing activities
                
                2,977,249
                
                
                -
                
                
                2,977,249Net
                    increase in cash and cash equivalents
                
                1,162,000
                
                
                (60,991)
                
                
                1,101,009Cash
                    and cash equivalents at beginning of period
                
                86,112
                
                
                
                
                
                86,112Cash
                    and cash equivalents at end of period
                $
                1,248,112
                
                $
                (60,991)
                
                $
                1,187,121
  Table
            of Contents
 
 **Note
          4 - Initial Adoption of FIN 48**
 
 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”), 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.
 
 **Note
          5 - Loss Per Share**
 
 All
        shares of common stock and prices have been restated in the accompanying
        consolidated financial statements and notes to give effect to the merger
        of the
        Company with California News Tech. Therefore, the calculation of Loss Per
        Share
        is equal to the number of common shares outstanding assuming the merger was
        completed on January 1, 2006. As of June 30, 2007, the Company had no stock
        options or securities convertible into any form of equity outstanding.
 
 **Note
          6 - 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 ten years. Property and
        equipment are summarized as follows:
 
 June
                  30, 2007
              
              Dec.
                  31, 2006Land
              $
              49,500
              
              $
              0Buildings
              
              63,500
              
              
              0Towers
                  and studio equipment
              
              225,506
              
              
              53,115Furniture
                  and fixtures
              
              27,745
              
              
              24,987Office
                  equipment
              
              9,963
              
              
              8,642Computer
                  hardware
              
              65,831
              
              
              57,268Computer
                  software
              
              9,671
              
              
              3,287Accumulated
                  depreciation
              
              (95,611)
              
              
              (85,273)Property
                  and equipment, net
              $
              356,105
              
              $
              62,026
 
 Of
          the
          $356,105 in Net Property and Equipment as of 6/30/07, $292,947 was added
          through
          the acquisition of five broadcast radio stations during the quarter including
          equipment purchases to support the newly acquired stations. (See Note 11
          -
          Business Combinations).
  Table
            of Contents
  **Note
          7 - 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 prime rate set by the Bank, 9.75% at June 30, 2007. The interest
        rate is adjusted based on changes in the Bank’s prime rate. The Note, which
        matured in April, 2005, was renewed twice, most recently on May 7, 2007 and
        matures on May 3, 2008. The balance of the Line of Credit at June 30, 2007
        and
        2006 was $75,000 and $75,000, respectively.
 
 The
        Company signed a Promissory Note on August 15, 2006 for $200,000 with Regions
        Bank to refinance existing debt. The Note matures on November 30, 2007 and
        requires monthly interest payments accruing at an initial rate of 7.58%.
        The
        rate is subject to monthly change based on an independent index plus 2.25%.
        The
        Note is secured by a 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 agreement. The principal balance
        as of June 30, 2007 was $165,375. See Note 7.
 
 **Note
          8 - Notes Payable to Shareholders**
 
 Debut
        Broadcasting Shareholder Notes
 
 Shareholder
        loans to the Company were made under various notes dated May 15, 2003 through
        May 17, 2006. Additional shareholder loans were made under various notes
        dated
        December 10, 2004 through May 17, 2006. The interest rate was at Prime.
        Principal and interest were payable upon shareholder demand. The total balance
        of these loans at June 30, 2007 and 2006 was $0 and $162,158,
        respectively.
 
 On
        June
        6, 2005, the Company entered into an unsecured loan agreement with Rush Capital,
        LLC for $50,000. Rush Capital is an entity owned and controlled by an officer
        and stockholder in the Company. The note, plus interest accrued at prime,
        was
        payable upon demand. The total balance of these loans at June 30, 2007 and
        2006
        was $0 and $50,000.
 
 On
        June
        5, 2006 the Company entered into a loan agreement with Rush Capital, LLC
        for
        $3,000. The note, plus interest accrued at prime, is payable upon demand.
        The
        total balance of these loans at June 30, 2007 and 2006 was $0 and
        $3,000.
 
 Effective
        with the Merger of the Company on May 17, 2007, the Rush Capital and other
        shareholder notes were converted into 430,316 shares of Common Stock in Debut
        Broadcasting Corporation, Inc. (See Note 11 - Business Combinations). Therefore,
        the balance of these loans at June 30, 2007 and 2006 was $0 and $215,158,
        respectively.
 
 Total
        interest expense associated with the shareholder loans was $2,243 and $6,680
        for
        the quarter and six months ended June 30, 2007, respectively. Accrued interest
        due to stockholders was $35,172 as of June 30, 2007. Total interest expense
        associated with the shareholder loans
  Table
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  was
        $4,392 and $8,196 for the quarter and six months ended June 30, 2006,
        respectively. Accrued interest due to stockholders was $19,204 as of June
        30,
        2006.
 
 **Note
          9 - Loans Payable**
 
 On
        August
        15, 2006 the Company signed a promissory note with Regions Bank for $300,000
        with an initial interest rate of 7.58%. The loan is secured by all inventory,
        chattel paper, accounts, equipment and general intangibles. The loan matures
        August 30, 2011 and is payable in monthly instalments of $6,058, including
        variable interest at 2.250% points per annum over the Index, which is the
        London
        Interbank Offered Rate (“LIBOR”) for the applicable Index Period.
 
 Total
          interest expense on the Regions Bank loan was $ 5,168 and $ 10,447 for
          the
          quarter and six months ended June 30, 2007, respectively. The balance of
          the
          note at June 30, 2007 was $258,407 of which $54,995 is the current
          portion.
 
 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 12%. The note was amended in April, 2003 requiring interest only payments
        indefinitely. The balance of the note at June 30, 2007 was
        $347,491.
  **Note
          10 - Shareholders’ Equity**
 
 In
          connection with the merger dated May 17, 2007 (See Note 11 - Business
          Combinations), all shares of common stock outstanding prior to the merger
          date
          were exchanged for 10,000,000 shares of the Company’s common stock.
 
 In
        addition, in connection with the merger, the Company completed a private
        placement of $3,000,000 consisting of 6,000,000 shares of the Company’s common
        stock at $0.50 per share. The transaction was recorded net of financing costs
        of
        $23,503.
 
 Finally
        in connection with the merger, Company converted notes payable to shareholders
        in the amount of $215,158 into 430,316 shares of the Company’s common stock at
        $0.50 per share.
 
 The
        pre-merger shareholders of the Company maintained 364,044 shares of the
        Company’s common stock.
 
 On
        May
        21, 2007, $100,000 of convertible debentures issued on May 15, 2007 were
        converted into 3,000,000 shares of the Company’s common stock.
  Table
            of Contents
  **Note
          11 - Business Combinations**
 
 **California
        News Tech**
 
 On
          May
          17, 2007, the Company entered into an Agreement and Plan of Merger with
          California News Tech. 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
          merger.
 
 As
          part
          of the reverse merger, each share 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
          merger was converted into the right to receive one share of common stock.
          As a
          result, the shareholders 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 the 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 shareholders of record of California
          News
          Tech as of April 20, 2007. The Company anticipates completing the spin-off
          of
          MSI during the fourth quarter of 2007.
 
 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, that
          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
  Table
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  common
          stock, would represent over an 80% interest and full voting control over
          MSI.
 
 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.
 
 The
          Company reported the details of the Agreement and Plan of Merger and the
          related
          transactions on a Form 8-K filed May 22, 2007.
 
 **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 note payable 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, MS, WBAQ FM 97.9 MHz and WNIX AM 1330 kHz in Greenville,
          Mississippi, 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.
  Table
            of Contents
  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
              
              65,000Total
              $
              1,037,134
 
 The
          Company reported its acquisition of these five radio stations on Form 8-K
          filed
          June 22, 2007.
 
 **Note
        11 - Income Taxes**
 
 The
        tax
        effect of significant temporary differences representing future tax assets
        and
        future tax liabilities has been fully offset by a valuation allowance. The
        Company has determined that realization is uncertain and therefore a valuation
        allowance has been recorded against this future income tax asset.


Table
          of Contents




**Item2.     Management’s
      Discussion and
      Analysis or Plan of Operation**





**Forward-Looking
      Statements**





Certain
      statements, other than purely historical information, including estimates,
      projections, statements relating to our business plans, objectives, and expected
      operating results, and the assumptions upon which those statements are based,
      are “forward-looking statements” within the meaning of the Private Securities
      Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933
      and Section 21E of the Securities Exchange Act of 1934. These
      forward-looking statements generally are identified by the words “believes,”
“project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,”
“may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and
      similar expressions. We
      intend
      such forward-looking statements to be covered by the safe-harbor provisions
      for
      forward-looking statements contained in the Private Securities Litigation Reform
      Act of 1995, and are including this statement for purposes of complying with
      those safe-harbor provisions. Forward-looking
      statements are based on current expectations and assumptions that are subject
      to
      risks and uncertainties which may cause actual results to differ materially
      from
      the forward-looking statements. Our
      ability to predict results or the actual effect of future plans or strategies
      is
      inherently uncertain. Factors which could have a material adverse affect on
      our
      operations and future prospects on a consolidated basis include, but are not
      limited to: changes in economic conditions, legislative/regulatory changes,
      availability of capital, interest rates, competition, and generally accepted
      accounting principles. These risks and uncertainties should also be considered
      in evaluating forward-looking statements and undue reliance should not be placed
      on such statements. We
      undertake no obligation to update or revise publicly any forward-looking
      statements, whether as a result of new information, future events or otherwise. Further
      information concerning our business, including additional factors that could
      materially affect our financial results, is included herein and in our other
      filings with the SEC.





**Overview**





We
      were
      originally incorporated in Nevada on January 22, 1999 as NewsSurfer.com
      Corporation. In January 2001, we changed our name to California News Tech and
      in
      November 2001 shifted our business plan to focus on providing online access
      to
      news media analysis for a subscription fee. On October 31, 2006, we moved all
      our assets and business to a new wholly-owned subsidiary, Media Sentiment,
      Inc.
      (“MSI”).





On
        May
        17, 2007, we issued a control block of our common stock to the former
        shareholders of Debut Broadcasting, Inc. (“Debut Broadcasting”), a privately
        held Tennessee corporation. Through a series of related transactions (the
        “Reverse Merger”), we acquired Debut Broadcasting, which became our wholly-owned
        subsidiary, and subsequently changed our name to Debut Broadcasting Corporation,
        Inc..





As
        part
        of the reverse merger, we also entered into a Post-Merger Operating Agreement
        in
        which we agreed to operate our respective businesses separately and we,
        specifically agreed that we would not interfere in any manner with the
        operations of MSI, have any rights to use, acquire or





5
 Table
            of Contents





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 our operations, have any rights to
        use,
        acquire or otherwise operate any of our assets or intellectual property of
        California News Tech or create any liabilities for which we would be
        obligated.





Moreover,
        as part of this Post-Merger Operating Agreement, we agreed that if for any
        reason California News Tech is unable to register the MSI shares, that the
        Company would sell our 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 us 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.





As
        a
        result, we consider MSI a non-controlled subsidiary and have not included
        any
        operating results, cash flow analysis or assets and liabilities of MSI in
        our
        consolidated financial statements.





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 shareholders of record of California News Tech as of April 20,
        2007.
        We anticipate completing the spin-off of MSI during the fourth quarter of
        2007.





**Existing
      Business Operations of Debut**





All
      of
      our current material business operations are conducted through our wholly-owned
      subsidiary, Debut Broadcasting.





***Existing
      Radio Syndication Business***





Our
      core
      business is the production and distribution of syndicated radio programming
      to
      radio stations in the U.S. and Canada. We have grown from a single radio program
      in 1999 to approximately 20 distinct programs and services currently offered
      to
      radio stations in the U.S. and Canada. A customer base of nearly 1,400 radio
      stations generates an audience nearly 40 million listeners each week in the
      US.
      Current programming focuses on country, Christian, and urban formats. Planned
      expansion includes adult contemporary and rock formats.





Revenue
      is generated from advertising and sponsorship sold in the syndicated radio
      programs, as well as revenue-sharing agreements with radio station affiliates.
      Key advertising relationships include Wal-Mart, Pfizer, GEICO Insurance, Johnson
      & Johnson, General Mills, Netflix, and others.





6
 Table
            of Contents





During
      the past decade, rapid consolidation of the radio industry resulted from
      government de-regulation of ownership limits. Companies that owned the maximum
      of 24 radio stations prior to 1996 are now free to own far more licenses. The
      larger companies own an average of 225 stations each and the largest, Clear
      Channel Communications, owns over 1,000 (although it is in the process of
      divesting from some smaller markets).





The
      process of consolidation has dramatically reduced staffing levels. Most radio
      stations now rely on automation systems and syndicated programming to fill
      airtime. The average number of employees dedicated to each on-air radio signal
      in 1996 was eight (8); today, that number is below three (3). We have exploited
      this need, providing radio stations with daily features and hourly weekend
      programming.





We
      intend
      to continue our rapid expansion of the programming and services we offer to
      radio stations, including increased penetration of larger markets with long-form
      programming. Specifically, we will focus on creating a new-generation of
      long-form, 24-hour programming in the following formats:





1.  Country


2.  Rock


3.  Urban


4.  Adult
      Contemporary





Relying
      on our Management’s experience with 24-hour programming, which has been
      historically delivered via satellite to radio station affiliates, we now utilize
      a more efficient delivery method facilitated by the Internet. The result is
      a
      more “hands-off” operation on the radio station end of the service;
      higher-quality; much greater flexibility; more localized programming for radio
      station affiliates; and more reliable delivery (eliminating vulnerabilities
      in
      the traditional satellite-delivery systems).





In
      addition, our planned expansion of program and service offerings
      includes:





1.  24-Hour
      Weather & On-Call Severe Weather Coverage


2.  Format-Specific
      News and Sports Reporters


3.  Production
      Music & Station Imaging





By
      increasing the rate of the expansion of our programming and services even
      further, we hope to acquire a higher number of radio station affiliates and
      earn
      increased ratings, which should translate into increased revenues.





**Diversification**





We
      have
      recently expanded our business plan to include the acquisition and management
      of
      radio stations (“Properties”) in small to mid-sized radio markets in the United
      States. Radio stations acquired by us will serve as flagships for the new
      24-hour programming and other programs and services provided by us. We further
      anticipate that these acquisitions will also increase margins and cash flow
      for
      the radio stations and existing syndication operations as we leverage
      unique





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synergies
      resulting from our existing lines of business. In furtherance of this strategy,
      during June 2007 we acquired and now own and operate five broadcast radio
      stations in the area of Greenville, Mississippi, identified as WIQQ FM 102.3
      MHz
      in Leland, Mississippi, WBAQ FM 97.9 MHz, WNIX AM 1330 kHz in Greenville,
      Mississippi, and WNLA FM 105.5 MHz and WNLA AM 1380 kHz in Indianola,
      Mississippi. We will continue to review the potential of additional acquisitions
      of radio stations in proximity to this area, although there is no assurance
      that
      we will be able to consummate such acquisitions.





We
      believe that ownership of radio stations has the potential to increase our
      margins and cash flow. Management believes we are uniquely capable of more
      cost-efficient operation of radio stations than other owners because of our
      ability to generate the programming out of our existing syndication operation
      in
      Nashville, overlay national advertising revenues, and then localize the content
      in each market.





Further,
      this strategy blends elements of the new and old economies to diversify risk
      in
      three key ways:





1.  HD
      Radio
& Webcasting





The
      FCC
      approved digital radio (known as HD Radio) in March 2007. Similar to digital
      television, HD Radio allows broadcasters to transmit two channels digitally
      through the equivalent of one analog channel.





We
      anticipate that the years 2008 - 2010 will see rapid proliferation of HD Radio.
      Many radio stations in the top 50 markets have already converted to the new
      broadcast format, and major retailers, including Radio Shack, Best Buy, and
      Wal-Mart, carry the receivers, which already compete favorably with hardware
      prices for satellite radio and should continue to drop.





HD
      Radio
      will provide a wide range of new free listening options to consumers without
      the
      monthly subscription charged by satellite radio. All existing FM license-holders
      have the right to convert to HD Radio without further approval from the
      FCC.





Further,
      the growth potential offered by the new technologies of HD Radio and webcasting
      into the future provide additional diversification opportunities. The radio
      industry has created an educational website that explains the current and future
      potential of HD Radio at www.HDRadio.com .





2.  Diversification
      of Revenue Streams and the Future Potential of New Technologies





While
      revenues from syndication and radio station operations are both primarily
      derived from advertising, budgets and clients are quite separate. By
      diversifying revenues to include both national syndication revenues and
      local-market revenues, we are less vulnerable to any potential changes in future
      market conditions.





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3.  Diversification
      of assets





Ownership
      of radio stations also adds hard assets to our balance sheet (such as licenses,
      real estate, towers, etc.) in addition to the extensive intellectual assets
      we
      have in our content and brands.





**Strategy
      for Investing In Radio Stations**





Our
      management and members of our Board have extensive experience in the radio
      industry, ranging from programming, sales, and management to acquisitions and
      financing. That experience has been key to our success in syndication, and
      is
      the genesis of our unique and proprietary radio station acquisition
      strategy.




Radio
      has
      always provided a short turnaround cycle and near-term horizon for ROI for
      investors who focus on strong operational fundamentals. As the largest radio
      companies in the US consolidate into the top 100 markets, prices in medium
      and
      small markets have reached levels where Management feels that stations are
      greatly undervalued and attractive for investment when certain other conditions
      exist.





The
      largest radio companies (Clear Channel, Cumulus, Citadel, CBS, etc.) are
      increasingly focused on larger markets because they have determined that they
      find the greatest cost-efficiency there. We perceive that there is a virtual
      absence of and need for a company with an effective strategy for medium and
      small markets - a successful and repeatable business model for radio stations
      that relies primarily on local, direct advertising revenues.





We
      intend
      to create shareholder value by investing in medium- and small-market radio
      stations that we perceive are not taking advantage of modern operational
      strategies designed to maximize revenue and minimize cost. It is our view that
      many such stations are underperforming financially because of poor sales
      strategies and inefficient costs of operation.





By
      investing only in radio stations that are under-performing, we anticipate that
      we can capture the gap between low purchase prices (typically 2 times net
      revenue or 4 times broadcast cash flow) and the public market for healthy
      stations (estimated at between 12-15 times broadcast cash flow). A recent
      article in the trade publication *Inside
      Radio* reported
      on a Kagan study that showed the largest transactions in 2006 averaging as
      high
      as 17 times broadcast cash flow. The worst state, Louisiana, averaged 8.2 times
      broadcast cash flow. Management believes the benchmark 12-15 times multiple
      is
      holding up against market trends. Management has strong confidence in its
      recommendation to selectively acquire radio stations because industry
      researchers like Kagan continue to report a robust flow of private capital
      into
      both large and small acquisitions within the radio industry.





In
      broad
      terms, our investment criteria include:





1.
            Consolidation.
                The opportunity to consolidate multiple Properties in a single market
                is a
                key investment criteria because it offers immediate cost
                savings.





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2.
            Dominance.
                The opportunity to own a substantial majority of the Properties competing
                for advertising in a single market (the maximum number allowed by
                FCC
                ownership limits or close to it) is a key investment criteria for
                competitive reasons. Markets where Clear Channel, Citadel, Cumulus,
                CBS,
                or other major national competitors are present will be
                avoided.





3.
            Good
                Infrastructure.
                Radio stations that are broken, abused, or neglected can be turned
                around
                quickly with good management. Others that we determine are in particularly
                poor physical condition will require too much time and resources
                to turn
                around and therefore will not meet our acquisition
                criteria.





4.
            Demographics
                and the Local Economy.
                High-priority acquisition markets will have positive growth trends
                for
                population, retail sales, and other lifestyle and economic factors
                because
                the extent of the turnaround can be more accurately projected on
                these
                bases.





**Sales
      and Programming Strategies**





Management’s
      experience is that Radio station turn-arounds are achieved most quickly with
      a
      combination of revenue growth and cost-cutting. We believe that we have the
      potential to accomplish both in some new, unique ways based on synergies with
      our existing lines of business.





Our
      sales
      plan for our radio station acquisitions is to expand revenue from a single
      source to three distinct revenue streams:





1.
            Local
                Advertising.
                This is typically the existing revenue stream for any acquisition.
                By
                utilizing tighter structure, ongoing training, and new technology
                (i.e.
                presentation and sales tracking software), we hope to make account
                executives more effective. There can be no assurance that we will
                be
                successful in achieving similar increases with Properties we
                acquire.





2.
            Event
                & Promotion Revenues.
                It has been our management’s experience that overall revenues have the
                potential to increase as much as 20 percent with the addition of
                event and
                promotion revenues. This also has the effect of generating new revenues
                from non-traditional advertisers, such as employers, professional
                services
                companies, and smaller advertisers who are typically priced out of
                standard radio advertising. There is no assurance that we will be
                successful in generating new event and promotion
                revenues.





3.
            National
                Advertising.
                Because we have an existing national advertising sales plan, we anticipate
                that any acquired radio stations will immediately be able to access
                this
                new revenue stream, increasing overall sales by 10-15 percent within
                30
                days. There can be no assurance that we will be
                successful.





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The
      programming plan for the radio station acquisitions will be centered around
      our
      expansion into 24-hour syndicated music programming. Our existing syndication
      operation in Nashville will provide the music, imaging, and most of the air
      talent. We anticipate that the result will be a better-sounding radio station
      at
      a reduced expense. Localized staffing at the radio station level will
      concentrate on localization of the content (i.e. weather, news and information,
      promotions, remotes and community events).





Taking
      advantage of the latest technology, we anticipate that approximately 90 percent
      of each radio station acquired can be programmed from a central studio location
      in Nashville. As a result, the local staff in each market can concentrate on
      serving the local audience by localizing the content, marketing the radio
      stations, and generating revenue through ad sales and promotional events. This
      represents a more efficient use of resources and is more cost-efficient than
      current practice.





**The
      Overall Impact of Our Acquisitions**




We
      anticipate that the impact on margins and cash flow will become even greater
      as
      more acquisitions are made. Fixed costs of programming on a per station basis
      continue to fall as the expense is distributed over a larger number of radio
      stations, and new revenue streams - particularly “non-traditional” forms of
      revenue - increase as the scale of our business increases. Also, as we acquire
      additional radio stations, the impact on the existing syndication operation
      also
      increases because of added revenue potential from the Owned and Operated
      (“O&O”) radio stations.





Members
      of Management and the Board have extensive networks of contacts within the
      radio
      industry that we believe will generate a consistent and reliable flow of
      potential deals for evaluation, as well as extensive experience in radio station
      operation, acquisition, and financing.





**The
      Greenville, MS Acquisitions**





In
      June,
      2007, we completed the initial two radio station acquisitions consisting of
      five
      (5) radio stations in and around Greenville, MS, which we are assembling into
      a
      station cluster (the “Greenville Cluster”).





The Market:
            Greenville, MSDMA:
            Greenville-Greenwood, MSRank:
            184




On
      June
      7, 2007, we acquired two radio broadcast stations identified as WNLA FM 105.5
      MHz and WNLA AM 1380 kHz in Indianola, MS, 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 cash. In a
      separate agreement the Company purchased the accounts receivable of Shamrock
      Broadcasting through issuance of a $10,134 note payable in three equal
      instalments made in each of three months following completion of the
      transaction.





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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








On
      June
      19, 2007, we acquired three radio broadcast stations identified as WIQQ FM
      102.3
      MHz in Leland, MS, 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 cash
      of $
      1,037,134.





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
            
            65,000Total
            $
            1,037,134





Negotiations
      are ongoing with a third potential seller for two additional stations within
      the
      market, but there is no assurance that any additional acquisitions will be
      consummated in the Greenville, MS area.





Greenville,
      MS falls into the Greenville-Greenwood, MS DMA, which is rated by Arbitron.
      Although there is no rating book specifically prepared for Greenville, MS,
      we
      will have the option to make Greenville a rated market at any time by simply
      entering into a subscription agreement with Arbitron. Management currently
      sees
      no need to do so immediately because it is expected that several formats will
      change upon acquisition.





We
      selected these Properties for investment for a number of reasons. First, they
      are in close proximity to each other and they operate in the same market.
      Second, each of the stations, each of the two station groups, and the stations
      collectively have underperformed fiscally in recent years in terms of revenue
      generation and operating income.





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The
      third
      factor in our investment decision was the community of Greenville, MS, and
      the
      surrounding area. An estimated 130,000 listeners live within the range of the
      stations of the Greenville Cluster. A smaller market would not be able to
      support the advertising necessary to make this a profitable cluster, and a
      significantly larger market would likely already have Station Clusters owned
      by
      competing groups, as opposed to fragmented station ownership by individuals,
      making our entrance into the market significantly more difficult.





The
      final
      factor in our decision to invest in the Greenville Cluster is the fact that
      we
      are able to assemble enough Properties to create a Station Cluster. By creating
      a Station Cluster, we expect to be able to consolidate the operations of the
      stations and eliminate redundancies, thus cutting our per-station operational
      costs. A Station Cluster also allows us program multiple, advertiser-friendly
      formats to reach a cross-section of key demographic and lifestyle groups within
      the community. By simultaneously selling all the stations as a single offering
      to advertisers, we anticipate that market share and overall revenues will
      increase.





We
      intend
      to achieve cost reductions through the elimination of redundant management
      and
      administrative positions, consolidation of facilities, and the use of technology
      to reduce programming and technical expenses.





The
      Company expects to take an aggressive stance on HD Radio; with plans to install
      HD transmitters in mid-to-late 2008 as long as current sales trends for HD
      receivers continue. At that time, we will have at least three (3) additional
      terrestrial signals for delivery of content to consumers.





While
      we
      have successfully acquired five (5) stations in our plan for creating the
      Greenville Cluster, and management anticipates ability to consummate additional
      acquisitions in the Greenville, MS area, there can be no assurance that any
      additional acquisitions will be completed or that the resulting Station Cluster
      will be profitable.





**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.





We
      have
      made our initial radio station acquisitions without taking on any additional
      debt financing. However, debt financing may be advisable and attractive as
      we
      contemplate future additional acquisitions.





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.





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•  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.





**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 and antenna orientation. 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.





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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 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.





**Compliance
      with Environmental Laws**





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





**Spin** **-off
        of the Company’s Pre-existing Subsidiary**





Prior
        to
        the Reverse Merger and subsequent to our assignment of all of our then assets
        and operations in October 2006, our operations were conducted through a
        wholly-owned subsidiary, MSI. Our pre-existing subsidiary will be spun off
        as
        soon as practicable.





Upon
        the
        spin-off of MSI, our shareholders of record as of April 20, 2007 will be
        the
        sole shareholders of MSI and we will have no interest in or right to shares
        of
        MSI common stock or its business operations or revenue following the spin-off.
        This spin-off will be consummated as soon as practicable after the effectiveness
        of the registration statement MSI filed with the SEC on June 19, 2007 to
        register the shares of MSI common stock that we hold.





**Results
      of Operations**





**For
      the three months ended June 30, 2007 and 2006**





On
        a
        consolidated basis, we
        generated $638,873 in net revenue for the quarter ended June 30, 2007, a
        decrease of $46,122 or 6.7%, compared to $684,995 for the quarter ended June
        30,
        2006. The 2006 net revenue included approximately $138,000 from a non-recurring
        project for one customer. Excluding this, the net revenue increased
        approximately $92,000. Approximately $71,000 of this increase relates to
        increases in core syndication net revenues, and approximately $21,000 relates
        to
        the Mississippi radio station acquisitions .





On
      a
      consolidated basis, advertising expense was $4,491 for the quarter ended June
      30, 2007. There were no advertising expenses incurred during the quarter ended
      June 30, 2006. The Company did not begin advertising for syndication services
      until the third quarter of 2006 creating the variance between the three months
      ended June 30, 2007 and 2006.





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On
        a
        consolidated basis, operating expense was $ 957,937 for the quarter ended
        June
        30, 2007, an increase of $301,262 or 45.8%, compared to $656,675 for the
        quarter
        ended June 30, 2006. Of the total increase in operating expenses, $21,000
        relates to the Mississippi radio acquisitions, which did not have operations
        recorded in 2006. During the quarter ended June 30, 2007, the Company recognized
        a change in accounting methodology whereby it established an accrual for
        uncollected producer sharing costs to more accurately match the national
        advertising agency revenue to its corresponding producer sharing expenses.
        The
        one-time adjustment booked during the second quarter was $185,068. Of the
        remaining increase, $40,000 pertains to bad debt expense related to two specific
        write offs, $20,000 relates to additional costs associated with the company’s
        public trading status, and $35,000 relates to additions in personnel to manage
        the radio and syndication businesses.





On
        a
        consolidated basis, depreciation and amortization expense was $6,703 for
        the
        quarter ended June 30, 2007, an increase of $2,123 or 46.3%, compared to
        $4,580
        for the quarter ended June 30, 2006. The increase relates primarily to the
        new
        assets acquired as part of the Shamrock and River
        acquisitions.





During
      the quarter ended June 30, 2007, the Company recorded $255,974 in non-recurring
      merger and acquisition related expenses.





As
        a
        result of the foregoing revenue and expenses, our overall net loss for the
        three
        month period ending June 30, 2007 and June 30, 2006 was $602,275 and $7,401,
        respectively.





**For
      the six months ended June 30, 2007 and 2006**





On
        a
        consolidated basis, we generated $1,284,108 in revenue for the six months
        ended
        June 30, 2007, an increase of $190,754 or 17.4%, compared to $1,093,354 for
        the
        six months ended June 30, 2006. The 2006 net revenue included approximately
        $157,000 from a non-recurring project for one customer. Excluding this, the
        net
        revenue increased approximately $347,000. Approximately $326,000 of this
        increase relates to increases in core syndication net revenues, and
        approximately $21,000 relates to the Mississippi radio station acquisitions.





On
      a
      consolidated basis, advertising expense was $7,777 for the six months ended
      June
      30, 2007. There were no advertising expenses incurred during the six months
      ended June 30, 2006. The Company did not begin advertising for syndication
      services until the third quarter of 2006 creating the variance between the
      six
      months ended June 30, 2007 and 2006.





On
        a
        consolidated basis, operating expense was $1,593,889 for the six months ended
        June 30, 2007, an increase of $457,093 or 40.2%, compared to $1,136,796 for
        the
        six months ended June 30, 2006. Of the total increase in operating expenses,
        $21,000 relates to the Mississippi radio acquisitions, which did not have
        operations recorded in 2006. Additional reasons for our increase in operating
        expenses relate to increases of $129,000 in producer sharing arrangements
        and
        agency commissions related to corresponding increases in net revenues and
        a
        $40,000 bad debt expense related to two specific write offs that were recorded
        during the six months ended June 30, 2007.
        As
        noted previously, during the quarter ended June 30, 2007, the Company recognized
        a change in accounting methodology whereby it established an accrual for
        uncollected producer sharing costs to





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more
        accurately match the national advertising agency revenue to its corresponding
        producer sharing expenses. The one-time adjustment booked during the second
        quarter was $185,068. Of the remaining increase, $20,000 relates to additional
        costs associated with the company’s public trading status, and $62,000 relates
        to additions in personnel to manage the radio and syndication
        businesses.





On
        a
        consolidated basis, depreciation and amortization expense was $11,413 for
        the
        six months ended June 30, 2007, an increase of $2,252 or 24.6%, compared
        to
        $9,161 for the six months ended June 30, 2006. The increase relates primarily
        to
        the new assets acquired as part of the Shamrock and River
        acquisitions.





During
      the six months ended June 30, 2007, the Company recorded $339,828 in
      non-recurring merger and acquisition related expenses.





As
        a
        result of the foregoing revenue and expenses, our overall net loss for the
        six
        month period ending June 30, 2007 and June 30, 2006 was $711,756 and $112,907,
        respectively. The total net loss includes $339,828 in one time non recurring
        merger and acquisition related costs as well as $185,068 for a one-time
        adjustment establishing a producer sharing accrual.





**Liquidity** **** **and
      Capital Resources**





As
        of
        June 30, 2007, we had current Assets in the amount of $1,751,636, consisting
        of
        $1,187,121 in Cash and Cash Equivalents, $466,635 in Accounts Receivable,
        $97,880 in Other Current Assets. As of June 30, 2007, we had Current Liabilities
        in the amount of $932,497, consisting of $360,789 in Accounts Payable,
        $269,582in Accrued Expenses and Taxes, $6,756 in notes payable, $240,375
        in
        Lines of Credit and $54,995 in Current Portion of Long Term Debt. This
        combination of assets and liabilities resulted in working capital in the
        amount
        of $819,139 for our operations.





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 intend to raise
      additional capital over the next twelve months through equity offerings or
      by
      incurring debt.





**Recent
      Events**





On
        April
        19, 2007, our auditor, Jewell & Langsdale, the former auditor of California
        News Tech, advised that it was requesting withdrawal from registration with
        the
        Public Company Accounting Oversight Board and therefore could not remain
        as our
        independent registered public accounting firm.





As
        a
        result, on June 19, 2007 we replaced Jewell & Langsdale with Ronald N.
        Silberstein, CPA, PLLC. We have engaged Ronald N. Silberstein, CPA, PLLC
        as our
        principal accountant effective June 19, 2007. The decision to change accountants
        was approved by our board of directors. We did not consult with Ronald N.
        Silberstein, CPA, PLLC on any matters prior to retaining such firm as our
        principal accountant. On July 2, 2007, Mr. Silberstein merged his practice
        with
        Maddox Ungar, PLLC, to form Maddox Unger Silberstein, PLLC, which is our
        present
        auditor. We reported the merger on a Form 8-K filed July 6,
        2007.





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On
      May
      15, 2007, we issued a Debenture in the face amount of $100,000 to JWA Ventures,
      LLC, the essential terms of which had been previously disclosed in our filing
      on
      Form 8 -K
      on
      October 30, 2006. The proceeds of this Debenture were used to pay down the
      debts
      of the wholly owned subsidiary Media Sentiment, Inc.. On May 21, 2007, we
      converted the debenture into 3,000,000 shares of our common stock.





On
      May
      17, 2007, we closed the Agreement and Plan of Merger by among us, our
      wholly-owned acquisition subsidiary, DB Acquisition, Inc. and Debut Broadcasting
      in which:





·  Each
      share of Debut Broadcasting common stock issued and outstanding immediately
      prior to the closing of the Merger was converted into the right to receive
      one
      share of our common stock. As a result, the shareholders of Debut Broadcasting
      received 10,000,000 newly issued shares of our common stock.





·  We
      issued
      6,430,316 shares of our common stock to investors as a result of closing a
      private offering 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.





·  Our
      board
      of directors was reconstituted to consist of Robert Marquitz, Steven Ludwig,
      Frank Wood, and Stephen Rush, who prior to the Merger were the directors of
      Debut Broadcasting. Our sole pre-Merger director, Marian Munz, resigned. The
      resignation of Mr. Munz and the appointment of our new directors was effective
      June 1, 2007, ten days following our mailing a notice to our shareholders on
      form 14F-1.





·  Our
      pre-Merger officers, Marian Munz and William White, resigned and were replaced
      by the officers of Debut Broadcasting.





We
      reported the details of the Agreement and Plan of Merger and the related
      transactions on a Form 8-K filed May 22, 2007.





On
        June
        7, 2007, we acquired two radio broadcast stations identified as WNLA FM 105.5
        MHz and WNLA AM 1380 kHz in Indianola, MS, 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 note payable in three equal instalments made
        in
        each of three months following completion of the transaction.





On
        June
        19, 2007, we acquired three radio broadcast stations identified as WIQQ FM
        102.3
        MHz in Leland, MS, 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.





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





**Off
      Balance Sheet Arrangements**





As
      of
      June 30, 2007, there were no off balance sheet arrangements.





**Critical
      Accounting Policies**





In
      December 2001, the SEC requested that all registrants list their most “critical
      accounting polices” in the Management Discussion and Analysis. The SEC indicated
      that a “critical accounting policy” is one which is both important to the
      portrayal of a company’s financial condition and results, and requires
      management’s most difficult, subjective or complex judgments, often as a result
      of the need to make estimates about the effect of matters that are inherently
      uncertain. We believe that the following accounting policies fit this
      definition.





Revenue
      and Cost Recognition





The
      Company recognizes it 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 shows, which are based on the
        audience level generated by the specific programs. 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.





During
      the quarter ended June 30, 2007 the Company recognized a change in accounting
      methodology whereby it established an accrual for uncollected producer sharing
      costs to more accurately match the national advertising agency revenue to its
      corresponding producer sharing expenses. The one-time adjustment booked during
      the second quarter was $185,068.





Advertising





The
      Company expenses advertising costs as they are incurred. Total advertising
      costs
      of $4,491 and $0 are included in the financial statements for the quarter ended
      June 30, 2007 and June 30, 2006, respectively.





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**Recently
      Issued Accounting Pronouncements**





**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”), 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.





**Item3.     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 June 30, 2007. 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. Shannon Farrington.
      Based
      upon that evaluation, our Chief Executive Officer and Chief Financial Officer
      concluded that, as of June 30, 2007, our disclosure controls and procedures
      are
      effective. There have been no changes in our internal controls over financial
      reporting during the quarter ended June 30, 2007.





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 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.





Limitations
        on the Effectiveness of 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.





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**PART
      II - OTHER INFORMATION**





**Item1.     Legal
      Proceedings**





We
      are
      not a party to any pending legal proceeding. We are not aware of any pending
      legal proceeding to which any of our officers, directors, or any beneficial
      holders of 5% or more of our voting securities are adverse to us or have a
      material interest adverse to us.





**Item2.     Unregistered
      Sales of Equity
      Securities and Use of Proceeds**





As
      part
      of the transactions consummated in connection with our acquisition of Debut
      Broadcasting, on May 17, 2007, we issued 6,430,316 shares of our common stock
      to
      investors as a result of closing a private offering 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. We previously reported
      the
      details of this private placement on a Form 8-K filed May 22, 2007.





**Item3.     Defaults
      upon Senior
      Securities**





None





**Item4.     Submission
      of Matters to a Vote
      of Security Holders**





No
      matters have been submitted to our security holders for a vote, through the
      solicitation of proxies or otherwise, during the quarterly period ended June
      30,
      2007.





**Item5.     Other
      Information**





None.





**Item6.      Exhibits**





**Exhibit****Number**
            **Description
                of Exhibit**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




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            of Contents




**SIGNATURES**





In
      accordance with the requirements of the Securities and 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.**Date:
              November
                  14, 2007By:       /s/
                  Steven Ludwig
                Steven
                  Ludwig
                Title:**Chief
                  Executive Officer and
                  Director**