UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
DC 20549





FORM
10-Q





[X]
            Quarterly
      Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934For
      the quarterly period ended September 30,
      2008[  ]
            Transition
      Report pursuant to 13 or 15(d) of the Securities Exchange Act of
      1934For
      the transition period __________ to__________Commission
      File Number:  333-144101





Media Sentiment,
Inc.


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





Nevada
            20-5740705(State
      or other jurisdiction of incorporation or
    organization)
            (IRS
      Employer Identification No.)





825
      Van Ness Ave., Suite 406-407, 4th Floor
              San
      Francisco, CA(Address
      of principal executive offices)





(415)
      861-3421(Issuer’s
      telephone number)_______________________________________________________________(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 large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.





[ ]
      Large accelerated filer Accelerated filer
            [ ]
      Non-accelerated filer[X]
      Smaller reporting company





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





State the
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date: 3,640,650 common shares as of September 30,
2008.




Table of Contents





TABLEOF CONTENTS
            PagePART I – FINANCIAL
      INFORMATIONItem 1:
            Financial Statements
            3Item 2:
            Management’s Discussion and Analysis of Financial Condition and
      Results of Operations
            4Item 3:
            Quantitative and Qualitative Disclosures About Market
      Risk
            11Item 4T:
            Controls and Procedures
            11PART II – OTHER
      INFORMATIONItem 1:
            Legal Proceedings
            12Item 1A:
            Risk Factors
            12Item 2:
            Unregistered Sales of Equity Securities and Use of
      Proceeds
            12Item 3:
            Defaults Upon Senior Securities
            12Item 4:
            Submission of Matters to a Vote of Security
      Holders
            12Item 5:
            Other Information
            12Item 6:
            Exhibits
            12




2
 Table of Contents




PART
I - FINANCIAL INFORMATION





Item1.     Financial Statements





Our
      financial statements included in this Form 10-Q are as
      follows:F-1
            Balance Sheets as of September 30, 2008 (unaudited) and
      December 31, 2007 (audited);F-2
            Statements of Operations for the three and nine months ended
      September 30, 2008 and 2007 (unaudited);F-4
            Statement of Stockholders’ Equity (Deficit) for period from
      December 31, 2006 to September 30, 2008
(unaudited);F-5
            Statements of Cash Flows for the nine months ended September
      30, 2008 and 2007 (unaudited);F-6
            Notes to Unaudited Financial
  Statements;








These
unaudited financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and the SEC instructions to Form 10-Q.  In the
opinion of management, all adjustments considered necessary for a fair
presentation have been included.  Operating results for the interim
period ended September 30, 2008 are not necessarily indicative of the results
that can be expected for the full year.




3
 Table of Contents


MEDIASENTIMENT, INC.
 Balance
Sheets
 
 ASSETS
              September
      30, 2008
                (unaudited)
              
              December
      31, 2007
                (audited)Current
      assets:Cash
              $
              1,373
              
              $
              7,421Accounts
      receivable
              
              34,500
              
              
              32,000Prepaid
      expenses
              
              1,400
              
              
              3,80037,273
              
              
              43,221Product
      development, net of amortization
              
              0
              
              
              0$
              37,273
              
              $
              43,221LIABILITIES AND
      STOCKHOLDERS’ DEFICITCurrent
      liabilities:Accounts
      payable and accrued expenses
              $
              103,967
              
              $
              125,627Accounts
      payable - related party
              
              35,782
              
              
              12,000Notes
      payable to related parties
              
              241,000
              
              
              148,000380,749
              
              
              285,627Stockholders’
      deficitCommon
      stock
              
              3,640
              
              
              3,640Additional
      paid-in capital
              
              1,978,880
              
              
              1,978,880Accumulated
      deficit
              <2,325,996>
              
              <2,224,926><343,476>
              
              <242,406>$
              37,273
              
              $
              43,221
 
 The
accompanying notes are an integral part of the financial
statements.
 F-1
 Table of Contents
 MEDIASENTIMENT,INC.
 Statements
of Operations (unaudited)
 For
the Three Months ended September 30, 2008 and 2007
  Three
      months endingSeptember
      30, 2008
              
              September
      30, 2007Revenue
              $
              5,499
              
              $
              1,227ExpensesSelling
      and administrative costs
              
              1,226
              
              
              6,305Office
      and other operating costs
              
              25,903
              
              
              19,889Depreciation
      and amortization
              
              0
              
              
              16,80027,129
              
              
              42,994Net
      operating loss
              <21,630>
              
              <41,767>Other
      expenseTaxes
      on incomeInterest
      expense
              
              6,388
              
              
              06,388Net
      loss
              $
              <28,018>
              
              $
              <41,767>Basic
      net loss per share
              $
              <0>
              
              $
              <0.01>Shares
      used in basic net loss per sharecalculation
              
              3,640,440
              
              
              3,640,440Non-cash
      stock-based employee compensationincluded in selling
      and administrative costs
              $
              0
              
              $
              0
 
 The
accompanying notes are an integral part of the financial
statements.
 F-2
 Table of Contents
 MEDIA
SENTIMENT,INC.
 Statements
of Operations (unaudited)
 For
the Nine Months ended September 30, 2008 and 2007
 
 Nine
      months endedSeptember 30, 2008
              
              September 30, 2007Revenue
              $
              14,852
              
              $
              12,214ExpensesSelling
      and administrative costs
              
              1,877
              
              
              59,965Office
      and other operating costs
              
              96,484
              
              
              105,322Depreciation
      and amortization
              
              0
              
              
              50,40098,360
              
              
              215,687Net
      operating loss
              <83,508>
              
              <203,474>Other
      expenseTaxes
      on income
              
              800
              
              
              0Interest
      expense
              
              16,762
              
              
              017,562
              
              
              0Net
      loss
              $
              <101,070>
              
              $
              <203,474>Basic
      net loss per share
              $
              <0.03>
              
              $
              <0.06>Shares
      used in basic net loss per sharecalculation
              
              3,640,440
              
              
              3,640,440Non-cash
      stock-based employee compensationincluded in selling
      and administrative costs
              $
              0
              
              $
              0
 
 The
accompanying notes are an integral part of the financial
statements.
 F-3
 Table of Contents
 MEDIASENTIMENT, INC.
 Statement
of Stockholders' Equity (Deficit) (unaudited)
  Common
      Stock
                
                Additional
                  Paid
      In
                
                AccumulatedShares
                
                Amount
                
                Capital
                
                Deficit
                
                TotalBalance,
      December 31, 2006
                
                3,640,440
                
                $
                10,923
                
                $
                1,783,500
                
                $
                1,694,144
                
                $
                100,279Par
      value adjustment
                
                
                
                
                (7,283)
                
                
                7,283
                
                
                
                
                
                0Sale
      of debenture
                
                
                
                
                
                
                
                66,156
                
                
                
                
                
                66,156Contribution
      to capital
                
                
                
                
                
                
                
                121,941
                
                
                
                
                
                121,941Net
      loss for the year ended December 31, 2007
                
                
                
                
                
                
                
                
                
                
                (530,782)
                
                
                (530,782)Balance,
      December 31, 2007
                
                3,640,440
                
                $
                3,640
                
                $
                1,978,880
                
                $
                (2,224,926)
                
                $
                (242,406)Net
      loss for the quarter ended March 31, 2008
                
                
                
                
                
                
                
                
                
                
                (40,788)
                
                
                (40,788)Ending
      balance March 31, 2008
                
                3,640,440
                
                $
                3,640
                
                $
                1,978,880
                
                $
                (2,265,714)
                
                $
                (283,194)Net
      loss for the quarter ended June 30, 2008
                
                
                
                
                
                
                
                
                
                
                (32,264)
                
                
                (32,264)Ending
      balance June 30, 2008
                
                3,640,440
                
                $
                3,640
                
                $
                1,978,880
                
                $
                (2,297,978)
                
                $
                (315,458)Net
      Loss for the quarter ended
                
                
                
                
                
                
                
                
                
                
                (28,018)
                
                
                (28,018)Ending
      balance September 30, 2008
                
                3,640,440
                
                $
                3,640
                
                $
                1,978,880
                
                $
                (2,325,996)
                
                $
                (343,476)
 
 The
accompanying notes are an integral part of the financial
statements.
 F-4
 Table of Contents
 MEDIASENTIMENT, INC.
 Statements
of Cash Flows (unaudited)
  Nine
      months ending:September
      30, 2008
              September
      30, 2007Cash
      flow from operations:
              $
              <101,070>
              
              $
              <203,474>Net
      lossAdjustments
      to reconcile net loss to net
      cash provided by operations:Depreciation
      and amortization
              
              
              
              
              50,400Change
      in accounts receivable
              
              <2,500>
              
              
              <16,612>Change
      in prepaid expenses
              
              2,400
              
              
              7,500Change
      in accounts payable
              
              2,122
              
              <20,193>Change
      in deferred revenue
              
              
              
              <1,638>Total
      adjustments
              
              2,022
              
              
              19,457Cash
      used by operations
              <99,048>
              
              <184,017>Cash
      provided by financing activities:Proceeds
      from Notes Payable
              
              93,000
              
              
              113,000Proceeds
      from sale of Debenture
              
              
              
              
              66,156Cash
      provided by financing activities:
              
              93,000
              
              
              179,156Net
      decrease in cash
              <6,048>
              
              <4,861>Cash
      at the beginning of the period
              
              7,421
              
              
              21,154Cash
      at the end of the period
              $
              1,373
              
              $
              16,293Supplemental
      cash flow information:Interest
      paid
              $
              7,776
              
              
              0Income
      taxes paid
              
              0
              
              
              0
 
 The
accompanying notes are an integral part of the financial
statements.
 F-5
 Table of Contents
 MEDIASENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 
 
 Note
1.     Description of Business
 
 Media
Sentiment Inc. (the Company) was incorporated during October 2006, under the
laws of the State of Nevada, as a wholly owned subsidiary of California News
Tech (CNT) to market the internet search tools developed by CNT.  All
of the assets of CNT were transferred to the Company.
 
 On May 17, 2007, CNT completed a
reverse merger with Debut Broadcasting Corporation, Inc., a Tennessee
corporation (DBI) whereby it succeeded to the business of DBI and it changed its
name to Debut Broadcasting Corporation, Inc.  As a result of this
merger, however, it was determined that the two business operations would be
better served if operated and accounted for separately.  Consequently,
DBI’s board of directors approved the distribution of all of its Media Sentiment
shares to the CNT shareholders of record on April 20, 2007 on a pro-rata
basis.  DBI then, set aside all of its 3,640,440 outstanding shares of
Media Sentiment for this purpose.  See Note 8 for
details.
 
 Note
2.     Summary of Significant Accounting
Policies
 
 Use
of Estimates
 
 The preparation of financial statements
in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes.  Actual
results could differ from those estimates and could affect future operating
results.
 
 Equipment
 
 Equipment is recorded at cost, less
accumulated depreciation.  Depreciation is computed using the
straight-line method over estimated useful lives of three to five
years.  The straight-line method of depreciation is also used for
income tax purposes.
 
 Impairment
of Long-Lived Assets
 
 The Company evaluates the
recoverability of its equipment, product and website development costs and
recognizes the impairment of long-lived assets in the event the net book value
of such assets exceeds net realizable value.  The Company evaluates
asset recoverability at each balance sheet date or when an event occurs that may
impair recoverability of the asset.
 
 F-6
 Table of Contents
 MEDIA
SENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 Note
2.     Summary of Significant Accounting Policies
(Continued)
 
 Revenue
Recognition
 
 The Company recognizes net revenue when
the earnings process is complete, as evidenced by:
 
 ·
              an
      agreement with the customer;
 ·
              delivery
      to and acceptance of the product by the customer has
    occurred;
 ·
              the
      amount of the fees to be paid by the customer are fixed or determinable;
      and
 ·
              collection
      of these fees is probable.
 
 If an acceptance period is
contractually provided, license revenues are recognized upon the earlier of
customer acceptance or the expiration of that period.  In instances
where delivery is electronic and all other criteria for revenue recognition have
been achieved, the product is considered to have been delivered when the
customer is provided the access code to download the software from the
Internet.
 
 Because of possible price fluctuations
or technology obsolescence, subscription revenue will be deferred and recorded
on a monthly basis as earned. Delivery, selling or other costs billed to the
customers is included in net revenue and the related delivery, selling or other
costs is included in the cost of selling subscriptions.
 
 Product
Development
 
 Where there is reasonable assurance of
recovery, development costs are capitalized.  Capitalization of costs
ceases when the product is available for general release to
customers.  Annual amortization of capitalized costs is the greater of
amortization computed using the straight-line method over the remaining
estimated economic life of the product or computed using the ratio of the
product’s current and anticipated future gross revenue.
 
 Stock-based
Compensation Plans
 
 The
Company has no stock-based compensation plans.
 
 Interim
Financial Reporting
 
 The Company's interim financial
statements have been prepared, without audit, in accordance with generally
accepted accounting principles and are consistent with the presentation and
disclosures in the audited financial statements and notes thereto for the year
ended December 31, 2007.
  F-7
 Table of Contents
 MEDIA
SENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 Note
2.     Summary of Significant Accounting Policies
(Continued)
 
 Income
Taxes and Deferred Taxes
 
 The
Company utilizes the liability method of accounting for income
taxes.  Deferred tax liabilities or assets are recognized for the
expected future tax consequences of temporary differences between the book and
tax bases of assets and liabilities.  The Company regularly assesses
the likelihood that the deferred tax assets will be recovered from future
taxable income, and a valuation allowance is recorded to reduce the deferred tax
assets to the amounts that are believed to be realizable.
 
 A full
valuation allowance on any future tax benefits is being provided until the
Company can sustain a level of profitability that demonstrates the ability to
utilize these assets.
 
 Basic
and Fully-diluted Loss per Common Share
 
 Net loss
per common share is based on the weighted average number of shares outstanding
during the year.  Fully-diluted net loss per common share is not
reported because, under current conditions, the loss per share is
anti-dilutive.
 
 Certain
Significant Risks and Uncertainties
 
 The Company participates in the high
technology industry and believes that changes in any of the following areas
could have a material adverse effect on the Company’s future financial position,
results of operations or cash flows:  advances and trends in new
technologies; competitive pressures in the form of price reductions; market
acceptance of the Company’s services; development of sales channels; litigation
or claims against the Company based on intellectual property, regulatory or
other factors.
 
 
 Note
3.     Going Concern and Liquidity
 
 Without
raising additional capital the Company will not continue
operations.  Historically, the Company has incurred significant losses
and negative cash flows from operations.  As of September 30, 2008,
the accumulated deficit was $ 2,325,996 and the negative working capital
was  $ 343,476. The negative working capital includes $ 241,000 in
current notes payable owed to related parties. The Company plans to fund
operations through private placements and a public offering.  There is
no assurance that these sources of capital will available to the Company in the
future.
  F-8
 Table of Contents
 MEDIA
SENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 Note
4.     Basic and Fully-diluted Net Loss per Common
Share
 
 Basic net loss per common share is
computed based on 3,640,440 shares issued and outstanding at June 30, 2008.
Fully-diluted net loss per common share is anti-dilutive and is not
reported.
   September 30,
      2008
                
                September 30,
      2007Basic
      net loss per common sharefor
      the three month period:
                $
                (0.00)
                
                $
                (0.01)Basic
      net loss per common sharefor
      the nine month period:
                $
                (0.03)
                
                $
                (0.06)
 Note
5.     Equipment
     September 30,
      2008
              
              September 30,
      2007Computer
      equipment
              $
              10,511
              
              $
              10,511Accumulated
      depreciation
              
              (10,511)
              
              
              (10,511)Net book
    value
              $
              0
              
              $
              0
  Note
6.     Intangible Assets
 
 Intangible assets consist of product
development and website development costs of $336,060. At the end of 2007 the
Company determined that the value of these assets was impaired and wrote off the
entire balance. With the Company's history of losses and the uncertainties in
financing its ongoing operations, there is no assurance that the products can be
successfully brought to market.
 
 
 Note
7.     Notes Payable to Related Parties
 
 The
notes payable of $241,000 at September 30, 2008 and $148,000 at September 30,
2007 are due to an officer and director of the Company, Marian Munz and his wife
Tunde Munz. These notes are convertible, at the option of the note holder, into
common and preferred shares of Media Sentiment, Inc at a price of $0.01 per
share, subject to adjustment for splits and reverse splits. During the fourth
quarter of 2008, Mr. and Mrs. Munz increased their lending to Media Sentiment
Inc to $251,000.
 
 F-9
 Table of Contents
 MEDIA
SENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 Note
8.     Business Combination
 
 On May 17, 2007, the Company entered
into an Agreement and Plan of Merger with DBI. As part of the reverse
merger, each share common stock of Debut Broadcasting, Inc., a Tennessee
Corporation, issued and outstanding immediately prior to the closing of the
merger was converted into the right to receive one share of common
stock.
 
 The
following table shows the transfer of assets and liabilities from California
News Tech as a consolidated entity to Media Sentiment Inc at December 31,
2006:
 
 California
      News Tech
              
              Media
      Sentiment, Inc
              
              ConsolidatingAdjustment
              
              ConsolidatedBalanceCash
              
              0
              
              
              21,153
              
              
              
              
              21,153Accounts
      receivable
              
              0
              
              
              15,388
              
              
              
              
              15,388Prepaid
      expense
              
              0
              
              
              11,300
              
              
              
              
              11,300Property
      and equipment
              
              0
              
              
              136
              
              
              
              
              136Product
      development
              
              0
              
              
              268,860
              
              
              
              
              268,860Investment
      in MSI
              
              3,640
              
              
              0
              
              
              (3,640)
              
              
              0Intercompany
      account
              
              232,792
              
              
              (232,792)
              
              
              
              
              
              0236,433
              
              
              84,045
              
              
              (3,640)
              
              
              316,837Accounts
      payable
              
              0
              
              
              (57,980)
              
              
              
              
              
              (57,980)Deferred
      revenue
              
              0
              
              
              (1,638)
              
              
              
              
              
              (1,638)Notes
      payable
              
              (121,940)
              
              
              (35,000)
              
              
              
              
              
              (156,940)Capital
      stock
              
              (10,923)
              
              
              (3,640)
              
              
              3,640
              
              
              (10,923)Additional
      paid-in capiral
              
              (1,783,500)
              
              
              0
              
              
              
              
              
              (1,783,500)Retained
      earnings
              
              1,679,931
              
              
              14,213
              
              
              
              
              
              1,694,144(236,433)
              
              
              (84,045)
              
              
              3,640
              
              
              (316,837)Revenue
              
              (70,675)
              
              
              (13,860)
              
              
              
              
              
              (84,535)Selling
      and administrative costs
              
              429,337
              
              
              14
              
              
              
              
              
              429,351Office
      and other costs
              
              291,639
              
              
              28,059
              
              
              
              
              
              319,698Depreciation
      and amortization
              
              68,095
              
              
              0
              
              
              
              
              
              68,095Interest
      income
              
              (804)
              
              
              0
              
              
              
              
              
              (804)717,592
              
              
              14,213
              
              
              
              
              
              731,805
 F-10
 Table of Contents
 MEDIA
SENTIMENT, INC.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2008
 
 Note
8.     Business Combination (continued)
 
 California News Tech is the predecessor
business of Media Sentiment Inc. On October 10, 2006 substantially all the
assets and liabilities of California News Tech were transferred to Media
Sentiment Inc and California News Tech ceased doing business. Therefore the
revenue and expenses for California News Tech were incurred during the period
from January 1, 2006 to October 10, 2006 and the revenue and expenses for Media
Sentiment Inc were incurred during the period from October 11, 2006 to December
31, 2006.
 
 On June 27, 2007, the Company filed a
registration statement with the Securities and Exchange Commission with the
respect to the issued and outstanding shares of common stock for the purpose of
completing a spin-off of the Company by transferring all of the shares of common
stock to shareholders of record of California News Tech as of April 20, 2007. We
anticipate completing the spin-off during the third quarter of
2008.
 
 As part of the reverse merger, the
Company also entered into a Post-Merger Operating Agreement in which the Company
and DBI agreed to operate their respective businesses separately.
 Moreover, as part of this Post-Merger Operating Agreement, DBI agreed that
if for any reason California News Tech is unable to register the Media Sentiment
Inc. shares, that DBI would sell its Media Sentiment Inc shares to California
News Tech's former president and director, Marian Munz, for $1.00. As a
consequence, MSI has and will continue to operate completely separate from DBI
effective as of the date of the reverse merger.
 
 At the closing of the reverse merger,
the Company received $100,000. $32,000 remains in escrow; the balance has been
used for working capital.
 
 
 Note
9.     Share Capital
 
 At September 30, 2008, the Company’s
authorized share capital consists of 100,000,000 shares at $0.001 par value and
10,000,000 at $0.001 par value preference shares authorized. At September 30,
2008 there were 3,640,440 common shares and no preference shares issued and
outstanding.
 
 
 Note
10.     Stock Option Plans and Warrants
 
 The Company has no stock option plans.
The Company has no warrants authorized.
  F-11
 Table of Contents
 MEDIA
SENTIMENT, INC.
 Notes
to Financial Statements
 September
30, 2008
 
 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.
 
 As of
December 31, 2007, the Company had a net operating loss carry-forward for U.S.
federal income tax purposes of approximately $ 530,000.  The federal
net operating loss carry-forward, if not utilized, will expire in
2027.
 
 The cumulative tax effect at the
expected rate of 34% of significant items comprising our net deferred tax amount
is as follows:
  2007Deferred
      tax asset attributable to:Net
      operating loss carryover
              $
              180,200Valuation
      allowance
              
              (180,200)Net
      deferred tax asset
              $
              0
 
 Note
12.     Commitments and Contingencies
 
 At June 30, 2008, the State of
California Employment Development Department was engaged in an audit of the
Company’s personnel records.  The Employment Development Department
has made a determination that the Company owes $17,000 in payroll taxes. This
amount was paid in July of 2008. The Company disagrees with this determination
and has appealed.
 
 The
Company rents its office space on a month-to-month basis.


F-12
 Table of Contents




Item2.     Management’s Discussion and
Analysis of Financial Condition and Results of Operations





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.





Our
Business





Overview





We own
and operate an online news media analysis research service. The service is
called MediaSentimentTM and quantifies qualitative press coverage, or what we
refer to as Media Sentiment®. The central premise behind MediaSentimentTM is that
media reports about the American economy in general and about specific, publicly
traded companies contain important information which can be quantified, graphed,
and presented to our customers in a manner that helps them understand media
sentiment in order to make more informed decisions related to it. This can
benefit our customers as they interpret and track the potential impact of media
sentiment on the overall financial markets and as it may affect particular
companies.





Our
MediaSentimentTM research product assists our customers in quickly understanding
the cumulative sentiment reflected in media reports. Our proprietary tracking
software quickly scans available media reports for key words and provides an
assessment as to whether the overall tone of the news story is positive,
negative, or neutral.




4
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Currently,
our operations are substantially suspended and we have no current significant
marketing campaigns for our product and, if we do not obtain financing, we will
be forced to pursue other business opportunities.





Products
and Services





More and
more people are trading stocks by using online brokerage accounts. These
investors and traders have the ability to press on a submit button and execute
trades within seconds. Also, these online investors and traders have access to
real time news coming directly from the publicly traded companies the moment
they report their material events. We believe that there is a need for online
management tools capable of processing the news and information at these online
speeds.





We have
created the Media Sentiment® Pro package by bundling Heads UpTM, Upper HandTM and
Big MoversTM.We believe that MediaSentiment Pro is a unique product which adds
value to the online financial information market.





We use
external data providers for the data necessary to produce the Upper HandTM and
Big MoversTM signals. We use the data from Reuters MetaStock and QuoteCenter
platforms for the algorithms used to determine the Upper HandTM signals. We use
data from Knobias, Inc. for the algorithms used to determine the BigMoversTM
signals.





We have
been successful at introducing our tools to early adopters via direct marketing
activities. We have not had the necessary capital so far to market our new
products in such a way that would allow us to gain sufficient market share to
bring the company to profitability.





Our
intent is to bring the company to profitability during the following twelve
months through additional financing of the marketing and sales activities. We
will need to finance the marketing and sales activities through a combination of
sales, strategic partnerships and external financing. External financing sources
might include additional lines of credit or additional investments in the
company.  We will also continue to market the products directly to our
target market via online or offline direct marketing activities.





We
generate recurring revenues from direct subscriptions to the MediaSentiment Pro
product and from the MetaStock add-on product. MSI is currently conducting very
limited marketing and sales operations. The majority of the sales of
MediaSentiment Pro subscriptions at this time are sales of the add-on product.
Currently, MSI has no new significant marketing campaigns for its product based
on the financial condition of the company. If we are able to obtain necessary
financing we may be able to enter into a new marketing and distribution
arrangements and may be able to develop new advertising and direct marketing
campaigns. However, no such assurance can be given that we will be able to
obtain financing or enter into any new contracts.





Based on
the operational developments described above and the lack of financing,
management is currently evaluating our business. We will not be able to continue
in the business of selling Media Sentiment® until we obtain financing. If we are
unable to obtain financing, we will be forced to continue other business
opportunities. The management believes that it could continue a significantly
lower level of operations for up to 12 months. These minimal operations would be
financed either by lines of credit obtained from commercial banks or from Marian
Munz, our president or his family.




5
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Raising
$1 million in equity financing would give us adequate financing for 12 months
and would allow us to create a full time team and start significant marketing
activities.  We estimate that the use of the $1 million in equity
financing would be: 45% Marketing & Sales, 40% General and Administrative
and 15% Research and Development.





Corporate
Background





Our prior
parent corporation, Debut Broadcasting Corporation, Inc. (“DBI”), was originally
incorporated in Nevada on January 22, 1999, as NewsSurfer.com Corporation. In
January 2001, it changed its name to California News Tech, and in November 2001
it shifted its business plan to focus on providing online access to news media
analysis for a subscription fee. On October 31, 2006, this business operation
and its assets were transferred to us as a wholly owned subsidiary under the
name Media Sentiment, Inc. (“MSI” or “Media Sentiment”).





On May
17, 2007, our prior parent corporation completed a reverse merger with a private
company known as Debut Broadcasting Corporation, Inc. (“Debut”), a Tennessee
corporation, whereby it succeeded to the business of Debut and it changed its
name to Debut Broadcasting Corporation, Inc. The intent of the merger was to
create value for the shareholders of both our company and Debut. Our company
received the proceeds of a debenture, the conversion of which was conditional
upon the consummation of a merger such as the one which occurred with
Debut.  DBI signed a $100,000 debenture with a company known as JWA
Ventures. The proceeds went to us but the debenture obligations remained with
DBI.  The shareholders of Debut gained liquidity in the public markets
that would grant their company access to opportunities in the public markets to
finance their expected growth. In anticipation of this merger, our business
operations were placed in Media Sentiment, a wholly owned subsidiary of Debut,
to be spun off as soon as practicable.   The pre-Merger
shareholders of DBI as of April 20, 2007, the “April 20 Shareholders,” are the
sole shareholders of Media Sentiment, Inc. after the
spinoff.   April 20, 2007 was chosen as the record date during
the negotiations leading up to the merger, so that those shareholders who
pre-dated the commencement of negotiations would remain as shareholders
following the spinoff. As part of the merger agreements, the parent company set
aside into an escrow account the total of 3,640,650 outstanding shares.
Contractually, only the pre-merger shareholders of record on April 20, 2007
received these shares.





We filed
a registration statement on Form S-1/A to register the spinoff of the 3,640,650
shares. This registration statement went effective on August 12, 2008 and
registered the issuance of the 3,640,650 shares of our common stock by DBI as a
dividend to the April 20 Shareholders on the basis of one share of our common
stock for each one share of DBI common stock. The April 20 Shareholders are
considered underwriters in the offering. The spinoff is now completed and our
outstanding stock consists of the 3,640,650 shares of common stock.




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Critical
Accounting Policies





We have
included a discussion regarding our Critical Accounting Policies below, placing
particular emphasis on those areas where significant levels of judgment are
required and where judgments and uncertainties affecting the application of the
policies and selection of estimates could result in materially different amounts
being reported under different conditions or using different
assumptions.





Revenue
Recognition





We
recognize net revenue when the earnings process is complete, as evidenced
by:





§
            an
      agreement with the customer;


§
            delivery
      to and acceptance of the product by the customer has
    occurred;


§
            the
      amount of the fees to be paid by the customer are fixed or determinable;
      and


§
            collection
      of these fees is probable.





If an
acceptance period is contractually provided, license revenues are recognized
upon the earlier of customer acceptance or the expiration of that period. In
instances where delivery is electronic and all other criteria for revenue
recognition have been achieved, the product is considered to have been delivered
when the customer is provided the access code to download the software from the
Internet.





Because
of possible price fluctuations or technology obsolescence, subscription revenue
will be deferred and recorded on a monthly basis as earned. Delivery, selling or
other costs billed to the customers is included in net revenue and the related
delivery, selling or other costs is included in the cost of selling
subscriptions.





Deferred
Revenue





Deferred
revenue is customer deposits for unearned subscriptions.





Product
Development





Where
there is reasonable assurance of recovery, development costs are capitalized.
Capitalization of costs ceases when the product is available for general release
to customers. Annual amortization of capitalized costs is the greater of
amortization computed using the straight-line method over the remaining
estimated economic life of the product or computed using the ratio of the
product’s current and anticipated future gross revenue.





Results
of Operations for the Three Months Ended September 30, 2008 and
2007





For the
quarter ended September 30, 2008, we had revenue of $5,499 compared to revenue
in the amount of $1,227 for the quarter ended September 30, 2007. The $4,272
increase in revenue is primarily attributable to the overall increase in focus
on sales of our primary products and the discontinuation of marketing and sales
activities for our mailing and e-mailing distribution lists, barter and product
licensing activities.   The past revenues resulting from
marketing and sales of our mailing and e-mailing distribution list were
essentially reducing the overall costs of the marketing and sales activities of
our MediaSentimentTM product.  The company decided to discontinue those
activities in order to focus its remaining resources on improving and updating
the main products.  The increase in revenues for the third quarter
were due also to a change in the product pricing structure, from a $99.95 annual
subscription fee for HeadsUp only to $49.95 per month or $480 per year in
subscriptions fees for MediaSentiment Pro, with a 30 day free
trial.




7
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Of the
$5,499 we earned in revenue during the quarter ended September 30, 2008, all is
attributable to sales of our research product, MediaSentimentTM while $1,399 of
the revenue during the third quarter of the prior year is attributable to sales
of our research product, MediaSentimentTM, with the offsetting credit of
$172  attributable to the termination of sales of our mailing and
e-mailing distribution lists.





Our
operating expenses decreased $15,865 from $42,994 for the quarter ended
September 30, 2007 to $27,129 for the quarter ended September 30, 2008. Our
expenses for the quarter ended September 30, 2007 consisted of selling and
administrative costs of $6,305, office and other operating costs of $19,889, and
depreciation and amortization expense in the amount of $16,800.  Our
expenses for the quarter ended September 30, 2008 consisted of selling and
administrative costs of $1,226, and office and other operating costs of
$25,903.  . The decrease in expenses from the third quarter of 2007 to
the third quarter of 2008 reflects our significantly reduced operating activity.
The decrease in depreciation and amortization expense from the quarter of 2007
to the third quarter of 2008 was due to writing off the Product Development
intangible asset at December 31, 2007.





The other
expenses increased from $0 in for the quarter ended September 30, 2007 to $6,388
for the quarter ended September 30, 2008.  This increase is
attributable to interest and finance charges.





Our net
loss decreased by $20,137 from $41,767 for the quarter ended September 30, 2007
to $21,630 for the quarter ended September 30, 2008. The decrease in our net
loss was primarily attributable to lower expenditures due to significantly
reduced operating activity in the three months ended September 30, 2008, as
compared with the same period in 2007.





Results
of Operations for the Nine Months Ended September 30, 2008 and 2007





For the
nine months ended September 30, 2008, we had revenue of $14,852 compared to
revenue in the amount of $12,214 for the nine months ended September 30, 2007.
The decrease in revenue is primarily attributable to the overall decrease in
marketing and sales activities and the discontinuation of marketing and sales
activities for our mailing and e-mailing distribution lists, barter and product
licensing activities.   The past revenues resulting from
marketing and sales of our mailing and e-mailing distribution list were
essentially reducing the overall costs of the marketing and sales activities of
our MediaSentimentTM product.  The company decided to discontinue those
activities in order to focus its remaining resources on improving and updating
the main products.  The decrease in revenues for this time period were
due also to a change in the product pricing structure, from a $99.95 annual
subscription fee for HeadsUp only to $49.95 per month or $480 per year in
subscriptions fees for MediaSentiment Pro, with a 30 day free
trial.    Discontinuance of the marketing and sales
activities for our mailing and e-mailing distribution list eliminated that
source of revenue for the company.  The company will be reliant on
revenue from the sentiment products alone.




8
 Table of Contents





Of the
$14,852 we earned in revenue during the nine months ended September 30, 2008,
all is attributable to sales of our research product, MediaSentimentTM while
$11,901 of the $12,214 we earned in revenue during the first nine months of the
prior year is attributable to sales of our research product, MediaSentimentTM,
with the balances attributable to rental fees for the use of our mailing and
e-mailing distribution lists.





Our
operating expenses decreased $117,327 from $215,687 for the nine months ended
September 30, 2007 to $98,360 for the nine months ended September 30, 2008. Our
expenses for the nine months ended September 30, 2007 consisted of selling and
administrative costs of $59,965, office and other operating costs of $105,322,
and depreciation and amortization expense in the amount of
$50,400.  Our expenses for the nine months ended September 30, 2008
consisted of selling and administrative costs of $1,887, and office and other
operating costs of $96,484.  The decrease in expenses from the first
nine months of 2007 to the first nine months of 2008 reflects our significantly
reduced operating activity. The decrease in depreciation and amortization
expense from the nine months of 2007 to the first nine months of 2008 was due to
writing off the Product Development intangible asset at December 31,
2007





The other
expenses increased from $0 in for the nine months ended September 30, 2007 to
$17,562 for the nine months ended September 30, 2008,  $16,762 of this
increase is attributable to interest and finance charges; the balance is
attributable to state minimum taxes.





Our net
loss decreased by $102,404, from $203,474 for the nine months ended September
30, 2007 to $101,070 for the nine months ended September 30, 2008. The decrease
in our net loss was primarily attributable to significantly reduced operating
activity in the nine months ended September 30, 2008, as compared with the same
period in 2007.





Based
upon the operational developments described above and the lack of financing,
management is currently evaluating our business.  We will not be able
to continue in the business of selling MediaSentimentTM until we obtain
financing.





2008
Liquidity and Capital Resources





As of
September 30, 2008, we had current assets of $37,273 and current liabilities in
the amount of $380,749. This resulted in a deficit in working capital in the
amount of $343,476. $241,000 of the current liabilities are owed to related
parties.





Cash used
by operations:


Operating
activities used $30,663 in cash for the three months ended September 30, 2008,
as compared to using $78,854 for the same period the previous year. Our net loss
of $28,108 was the primary reason for our negative operating cash flow for the
three months ended September 30, 2008.




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Operating
activities used $99,048 in cash for the nine months ended September 30, 2008, as
compared to using $184,017 for the same period the previous year. Our net loss
of $101,070 was the primary reason for our negative operating cash flow for the
nine months ended September 30, 2008.





Cash
provided by financing activities


There
were $19,000 net cash flows provided by financing activities during the three
months ended September 30, 2008, compared to $66,156 provided by financing
during the three months ended September 30, 2007. During the third quarter of
2008 and 2007 the financing was obtained by increases in notes payable to Marian
and Tunde Munz, the CEO and his wife.





There
were $93,000 net cash flows provided by financing activities during the nine
months ended September 30, 2008, compared to $179,156 provided by financing
during the nine months ended September 30, 2007. During the nine months ended
2008, the financing was obtained by increases in notes payable to Marian and
Tunde Munz, the CEO and his wife.





Cash used
in investing activities:


The
Company did not use cash for investing activities during the three months ending
September 30, 2008 and 2007.





The
Company did not use cash for investing activities during the nine months ending
September 30, 2008 and 2007.





MSI
currently faces a multitude of problems which have a significant impact on our
operations. These problems each stem from a lack of financing and are
interrelated. As a result of not having adequate financing for sales and
marketing activities we have not been able to generate significant revenues. In
addition, if we are not able to obtain adequate financing we will not be able to
engage in any future sales or marketing activities and it is unlikely that other
companies will be willing to offer our products to their user base. We will not
be able to continue in the business of selling Media Sentiment® until we obtain
financing. If we are unable to obtain financing, we will be forced to continue
other business opportunities.





Management
believes that it could continue a significantly lower level of operations for up
to 12 months. These minimal operations would be financed either by lines of
credit obtained from commercial banks and from Marian Munz, our president or his
family. Raising adequate equity financing would allow us to create a full time
team and start significant marketing activities.  We estimate that the
use of the $1 million in equity financing would be: 45% Marketing & Sales,
40% General and Administrative and 15% Research and Development.





If we are
unable to obtain financing, we will be forced to continue other business
opportunities. If we are forced to consider other business opportunities, we
intend to seek out opportunities in the business services related industry in
which we have some experience.  However, it is impossible to predict
the nature of business opportunity in which Media Sentiment, Inc. may
participate in the future.  As of this date, we have not searched out
any such opportunity.   We may be forced to enter an industry in
which we do not already participate to continue as a going concern




10
 Table of Contents





Going
Concern





The
accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplate continuation of our
company as a going concern. However, the business has experienced recurring
operating losses since inception. We have a significant working capital deficit
and our continued existence is dependent upon our ability to increase operating
revenues and/or raise money from equity and debt financing. For these reasons
our auditors have raised substantial doubt in their audit report of our ability
to continue as a going concern.





Off
Balance Sheet Arrangements





As of
September 30, 2008, there were no off balance sheet arrangements.





Item3.     Quantitative and Qualitative
Disclosures About Market Risk





A smaller
reporting company is not required to provide the information required by this
Item.





Item4T.     Controls and
Procedures





We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of September 30, 2008.  This evaluation
was carried out under the supervision and with the participation of our Chief
Executive Officer, Mr. Marian Munz, and our Chief Financial Officer, William
White.  Based upon that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded that, as of September 30, 2008, our disclosure
controls and procedures are effective.  There have been no changes in
our internal controls over financial reporting during the quarter ended
September 30, 2008.





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 Internal Controls





Our
management does not expect that our disclosure controls and procedures or our
internal control over financial reporting 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.





11
 Table of Contents





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.





Item1A:  Risk Factors





A smaller
reporting company is not required to provide the information required by this
Item.





Item2.     Unregistered Sales of Equity
Securities and Use of Proceeds





On August
12, 2008, the registration statement filed on Form S-1 (Commission file number
333-144101) was declared effective by the SEC. This registration statement
registered 3,640,650 in connection with a spin-off of our company to
shareholders of Debut Broadcasting Corporation, Inc. (fka California News Tech)
as of April 20, 2007.  We will receive no proceeds in connection with
this offering.





Item 3.     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
September 30, 2008.





Item5.     Other Information





None





Item6.      Exhibits





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





12
 Table 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.





Media
      Sentiment, Inc.Date:
            November
      18, 2008By:       /s/ Marian
      Munz
              Marian
      Munz
              Title:Chief
      Executive Officer and
Director