| x | Quarterly                report under Section 13 or 15(d) of The Securities Exchange Act Of                1934 |
|---|-----------------------------------------------------------------------------------------------------------------|

| o | Transition                report under Section 13 or 15(d) of The Securities Exchange Act Of                1934 |
|---|------------------------------------------------------------------------------------------------------------------|

| Utah                                           | 34-1413104                                         |
|------------------------------------------------|----------------------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer Identification No) |
| Incorporation                or organization)  |                                               |

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**FOR      THE THREE MONTHS ENDED**

**DECEMBER      31, 2006**

**INDEX**

| **Part                I - FINANCIAL INFORMATION** |                                                                                                                                                                                          |   |
|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                              |                                                                                                                                                                                          |   |
| Item                1.                            | INTERIM                FINANCIAL STATEMENTS                                                                                                                                                   |   | 3 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Consolidated                Balance Sheets as of December 31, 2006 (Unaudited) and June 30,                2006                                                                               |   | F-1 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Consolidated                (Unaudited) Statements of Operations and Comprehensive Income for                the six                months and three months ended December 31, 2006 and 2005. |   | F-2 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Consolidated                (Unaudited) Statement of Stockholders’ Equity for the six months ended                December 31, 2006                                                     |   | F-3 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Consolidated                Statements of Cash Flow for the six months ended December 31, 2006                and                2005.                                                        |   | F-4 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Notes                to Interim Financial Statements                                                                                                                                          |   | F-5 |
|                                              |                                                                                                                                                                                          |   |   |
| Item                2.                            | MANAGEMENT'S                DISCUSSION AND ANALYSIS AND PLAN OF OPERATION                                                                                                                     |   | 4 |
|                                              |                                                                                                                                                                                          |   |   |
| Item                3.                            | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                     |   | 6 |
|                                              |                                                                                                                                                                                          |   |   |
| Item                4.                            | CONTROLS                AND PROCEDURES                                                                                                                                                        |   | 7 |
|                                              |                                                                                                                                                                                          |   |   |
| **Part                II - OTHER INFORMATION**    |                                                                                                                                                                                          |   |
|                                              |                                                                                                                                                                                          |   |   |
| Item                6.                            | EXHIBITS                AND REPORTS ON FORM 8-K                                                                                                                                               |   | 7 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Signatures.                                                                                                                                                                                   |   | 8 |
|                                              |                                                                                                                                                                                          |   |   |
|                                              | Certifications                                                                                                                                                                                |   |   |

----

**Part      I - FINANCIAL INFORMATION**

**Item      1**

**INTERIM      FINANCIAL STATEMENTS**

----

| **DIGITAL                  CREATIVE DEVELOPMENT CORPORATION AND                  SUBSIDIARY** |
|-----------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  BALANCE SHEETS**                                              |
| **DECEMBER                  31, 2006 AND JUNE 30,                  2006**                     |

|                                                                                                                                                                                                                                   |   | **December                  31,****2006** |        | **June                  30,****2006** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|---------------------------------------|--------|
|                                                                                                                                                                                                                                   |   |  **(Unaudited)**                     |        | **(Audited)**                         |   |
|                                                                                                                                                                                                                                   |   |  **(in                  thousands)** |        |
| **ASSETS**                                                                                                                                                                                                                             |   |                                      |        |                                  |   |
| **CURRENT                  ASSETS**                                                                                                                                                                                                    |   |                                 |        |                                  |   |
| Cash                  and cash equivalents                                                                                                                                                                                             |   | $                                         | 8.6         |                                  | $      | 73.4 |   |
| Marketable                  securities                                                                                                                                                                                                 |   |                                      | 1,092.0     |                                  |   | 1,302.0 |   |
| **TOTAL                  CURRENT ASSETS**                                                                                                                                                                                              |   |                                      | 1,100.6     |                                  |   | 1,375.4 |   |
| .                                                                                                                                                                                                                                      |   |                                      |        |                                  |   |   |   |
| **OTHER                  ASSETS**                                                                                                                                                                                                      |   |                                      |        |                                  |   |   |   |
| Marketable                  securities and non-marketable securities and advances, net of $                  300,000 at                  December 31 , 2006 and June 30, 2006                                                          |   |                                      | 7,807.5     |                                  |   | 9,565.1 |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
| **TOTAL                  ASSETS**                                                                                                                                                                                                      |   | **$**                                     | **8,908.1** |                                  | **$**  | **10,940.5** |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                              |   |                                      |        |                                  |   |   |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                                                                                               |   |                                      |        |                                  |   |   |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                |   | $                                         | 631.9       |                                  | $      | 599.9 |   |
| Current                  portion of notes payable—related                  parties                                                                                                                                               |   |                                      | 944.0       |                                  |   | 914.1 |   |
| **TOTAL                  CURRENT LIABILITIES**                                                                                                                                                                                         |   |                                      | 1,575.9     |                                  |   | 1,514.0 |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
| **STOCKHOLDERS'                  EQUITY**                                                                                                                                                                                              |   |                                      |        |                                  |   |   |   |
| Preferred                  Stock 2,000,000 Shares Authorized                                                                                                                                                                           |   |                                      |        |                                  |   |   |   |
| Series                  A Convertible, Par Value $ 1 ; 2,200 Shares Issued and Outstanding;                  Involuntary Liquidation Preference of $ 1 Per Share Plus Accrued                  and                  Unpaid Dividends   |   |                                      | 2.2         |                                  |   | 2.2 |   |
| Series                  C, Par Value $ 100 ; 9,900 Shares Issued and Outstanding; Involuntary                  Liquidation Preference of $ 100 Per Share Plus Accrued and Unpaid                  Dividends                            |   |                                      | 852.7       |                                  |   | 852.7 |   |
| Series                  D, Par Value $ 100 ; 4,000 Shares Issued and Outstanding; Involuntary                  Liquidation Preference of $ 100 Per Share Plus Accrued and Unpaid                  Dividends                            |   |                                      | 400.0       |                                  |   | 400.0 |   |
| Common                  Stock, Par Value $ .01; Authorized 75,000,000 Shares; Issued and                  Outstanding: 50,689,165 Shares at December 31, 2006 and 51,689,165                  Shares                  at June 30, 2006 |   |                                      | 506.9       |                                  |   | 516.9 |   |
| Additional                  paid in capital                                                                                                                                                                                            |   |                                      | 38,380.1    |                                  |   | 38,370.1 |   |
| Accumulated                  other comprehensive income                                                                                                                                                                                |   |                                      | 5,824.8     |                                  |   | 7,692.7 |   |
| Accumulated                  deficit                                                                                                                                                                                                   |   |                                      | (38,634.5   | )                                     |   | (38,408.1 | ) |
| **TOTAL                  STOCKHOLDERS' EQUITY**                                                                                                                                                                                        |   |                                      | 7,332.2     |                                  |   | 9,426.5 |   |
|                                                                                                                                                                                                                                   |   |                                      |        |                                  |   |   |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                                                                                                        |   | **$**                                     | **8,908.1** |                                  | **$**  | **10,940.5** |   |

**See        accompanying Notes to Consolidated Financial        Statements**

----

| **DIGITAL                CREATIVE DEVELOPMENT CORPORATION AND                SUBSIDIARY**        |
|--------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF OPERATIONS AND COMPREHENSIVE                INCOME** |
| **(Unaudited)**                                                                                  |

|                                                                   |   | **For                  the Six Months Ended****December                  31 ,** |       | **For                  the Three Months Ended****December                  31,** |   |
|------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------|--------|
|                                                                   |   | **2006**                                                                        |       | **2005**                                                                         |   | **2006** |   | **2005** |   |
|                                                                   |   | **(in                  thousands)**                                             |       | **(in                  thousands)**                                              |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |
| **REVENUE**                                                            |   | $                                                                               | -          |                                                                             | $      | 0.2 |   | $ | - |   | $ | 0.2 |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **OPERATING                  EXPENSES**                                |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| General                  and administrative expenses                   |   |                                                                            | 137.8      |                                                                             |   | 125.3 |   |   | 105.0 |   |   | 38.3 |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **LOSS                  FROM OPERATIONS**                              |   |                                                                            | (137.8     | )                                                                                |   | (125.1 | ) |   | (105.0 | ) |   | (38.1 | ) |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE)**                            |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| Interest                  expense, net and other                       |   |                                                                            | (66.1      | )                                                                                |   | (74.3 | ) |   | (26.6 | ) |   | (52.8 | ) |
| Realized                  gains net of unrealized gain on investments  |   |                                                                            | 115.0      |                                                                             |   | 30.0 |   |   | 102.5 |   |   | 30.0 |   |
| Other                  settlements                                     |   |                                                                            | (137.5     | )                                                                                |   | - |   |   | - |   |   |   |   |
| **TOTAL                  OTHER INCOME (EXPENSE)**                      |   |                                                                            | (88.6      | )                                                                                |   | (44.3 | ) |   | 75.9 |   |   | (22.8 | ) |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **NET                  LOSS**                                          |   | **$**                                                                           | **(226.4** | **)**                                                                            | **$**  | **(169.4** | **)** | **$** | **(29.1** | **)** | **$** | **(60.9** | **)** |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **UNDECLARED                  PREFERRED STOCK DIVIDENDS**              |   |                                                                            | (72.8      | )                                                                                |   | (72.8 | ) |   | (36.4 | ) |   | (36.4 | ) |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **Net                  Loss available to common shareholders**         |   | **$**                                                                           | **(299.2** | **)**                                                                            | **$**  | **(242.2** | **)** | **$** | **(65.5** | **)** | **$** | **(97.3** | **)** |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **WEIGHTED                  AVERAGE NUMBER OF OUTSTANDING SHARES FOR** |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **BASIC                  AND DILUTED EARNINGS PER SHARE**              |   |                                                                            | 50,689.2   |                                                                             |   | 51,679.3 |   |   | 50,689.2 |   |   | 51,689.2 |   |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **BASIC                  AND DILUTED INCOME (LOSS) PER SHARE**         |   | $                                                                               | (0.006     | )                                                                                | $      | (0.005 | ) | $ | (0.001 | ) | $ | (0.002 | ) |
|                                                                   |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME (LOSS)**                                 |   | $                                                                               | (226.4     | )                                                                                | $      | (169.4 | ) | $ | (29.1 | ) | $ | (60.9 | ) |
| **Other                  comprehensive operations**                    |   |                                                                            |       |                                                                             |   |   |   |   |   |   |   |   |   |
| **Unrealized                  gain (loss) on marketable securities**   |   |                                                                            | (1,867.9   | )                                                                                |   | (1,872.2 | ) |   | 2,047.6 |   |   | (1,619.0 | ) |
| **Comprehensive                  net income (loss)**                   |   | $                                                                               | (2,094.3   | )                                                                                | $      | (2,041.6 | ) | $ | 2,018.5 |   | $ | (1,679.9 | ) |

**See      accompanying Notes to Consolidated Financial Statements**

----

| **DIGITAL                CREATIVE DEVELOPMENT CORPORATION AND                SUBSIDIARY** |
|-------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF STOCKHOLDERS' EQUITY**                        |
| **FOR                THE SIX MONTHS ENDED DECEMBER 31, 2006**                             |
| **(Unaudited)**                                                                           |
|                                                                                      |
| **(in                thousands)**                                                         |

|                                                    |   |                               |    |            |   |            |   |                |      |                   |   | **Accumulated**                 |   |                       |         |      |   |
|---------------------------------------------------------|--------|------------------------------------|---------|-----------------|--------|-----------------|--------|---------------------|-----------|------------------------|--------|---------------------------------|--------|----------------------------|--------------|-----------|--------|
|                                                    |   | **Preferred                Stock** |    |                 |   | **Additional**  |   | **Other**           |      |                        |   |                            |   |
|                                                    |   | **Series****A**                    |    | **Series****C** |   | **Series****D** |   | **Common****Stock** |      | **Paid-in****Capital** |   | **Comprehensive****Operations** |   | **Accumulated****Deficit** |         | **Total** |   |
|                                                    |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |
| **Balance                at June 30, 2006 (Audited)**   |   | **$**                              | **2.2** |            | **$**  | **852.7**       |   | **$**               | **400.0** |                   | **$**  | **516.9**                       |   | **$**                      | **38,370.1** |      | **$**  | **7,692.7** |   | **$** | **(38,408.1** | **)** | **$** | **9,426.5** |   |
|                                                    |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |   |   |   |   |   |   |   |   |
| Unrealized                loss on investments      |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   | (1,867.9 | ) |   |   |   |   | (1,867.9 | ) |
|                                                    |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |   |   |   |   |   |   |   |   |
| Cancellation of                common shares  |   |                               |    |            |   |            |   |                |      |                   |   | (10.0                           | )      |                       | 10.0         |      |   |   |   |   |   |   |   |   |   |
|                                                    |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |   |   |   |   |   |   |   |   |
| Net                loss                            |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |   |   |   | (226.4 | ) |   | (226.4 | ) |
|                                                    |   |                               |    |            |   |            |   |                |      |                   |   |                            |   |                       |         |      |   |   |   |   |   |   |   |   |   |
| **Balance                at December 31, 2006**         |   | **$**                              | **2.2** |            | **$**  | **852.7**       |   | **$**               | **400.0** |                   | **$**  | **506.9**                       |   | **$**                      | **38,380.1** |      | **$**  | **5,824.8** |   | **$** | **(38,634.5** | **)** | **$** | **7,332.2** |   |

**See      accompanying Notes to Consolidated Financial Statements**

----

| **DIGITAL                CREATIVE DEVELOPMENT CORPORATION AND                SUBSIDIARY** |
|-------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                  |
| **(Unaudited)**                                                                           |

|                                                                                                                    |   | **For                  the Six Months Ended****December                  31,** |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                                                                                    |   | **2006**                                                                       |   | **2005** |   |
|                                                                                                                    |   | **(in                  thousands)**                                            |   |
|                                                                                                                    |   |                                                                           |   |   |   |
| CASH                  FLOWS FROM OPERATING ACTIVITES:                                                                   |   |                                                                           |   |   |   |
| Net                  loss                                                                                               |   | $                                                                              | (226.4 | ) | $ | (169.4 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities:      |   |                                                                           |   |   |   |   |   |
|  Realized                  (gain) on investments net of unrealized gains on                  investments           |   |                                                                           | (115.0 | ) |   | (30.0 | ) |
|  Issuance                  of stock for services                                                                   |   |                                                                           | -      |   |   | 5.6 |   |
| Changes                  in assets and liabilities:                                                                |   |                                                                           |   |   |   |   |   |
|  Increase                  (decrease) in accounts payable, accrued expenses and other                  liabilities |   |                                                                           | 56.8   |   |   | (12.3 | ) |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| NET                  CASH USED IN OPERATING ACTIVITIES                                                                  |   |                                                                           | (284.6 | ) |   | (206.1 | ) |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITES:                                                                   |   |                                                                           |   |   |   |   |   |
| Proceeds                  from sale of investments                                                                 |   |                                                                           | 189.9  |   |   | 144.8 |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| NET                  CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES                                                    |   |                                                                           | 189.9  |   |   | 144.8 |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITES:                                                                   |   |                                                                           |   |   |   |   |   |
| Proceeds                  from issuance of notes payable—related                  parties                    |   |                                                                           | 90.0   |   |   |   |   |
| Payments                  of note payable                                                                          |   |                                                                           | (60.1  | ) |   | (50.2 | ) |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| NET                  CASH PROVIDED BY FINANCING ACTIVITIES                                                              |   |                                                                           | 29.9   |   |   | (50.2 | ) |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| NET                  CHANGE IN CASH AND CASH EQUIVALENTS                                                                |   | $                                                                              | (64.8  | ) | $ | (111.5 | ) |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| CASH                  AND EQUIVALENTS, beginning of year                                                                |   |                                                                           | 73.4   |   |   | 111.5 |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| CASH                  AND EQUIVALENTS, end of year                                                                      |   | $                                                                              | 8.6    |   | $ | - |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| Cash                  payments for:                                                                                     |   |                                                                           |   |   |   |   |   |
| Interest                  expense                                                                                       |   | $                                                                              | -      |   | $ | 22.6 |   |
| Income                  taxes                                                                                           |   | $                                                                              | -      |   | $ | - |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| **Supplemental                  disclosure of noncash transactions:**                                                   |   |                                                                           |   |   |   |   |   |
|                                                                                                                    |   |                                                                           |   |   |   |   |   |
| None                                                                                                                    |   | $                                                                              | -      |   | $ | - |   |

**See        accompanying Notes to Consolidated Financial Statements**

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited**

**NOTE      1- BASIS OF PRESENTATION **

**NOTE      2- PRINCIPLES OF CONSOLIDATION **

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited**

**NOTE      3- MARKETABLE SECURITIES **

|                                                    |   | December                31, 2006 |    | June                30, 2006 |   |
|---------------------------------------------------------|--------|----------------------------------|---------|------------------------------|--------|
|                                                    |   | (in                  thousands)  |    |
| Marketable                Securities - current:         |   |                             |    |                         |   |
| Broadcaster                (formerly IMSI)              |   | $                                | 380.4   |                         | $      | 380.4 |   |
|                                                    |   |                             |    |                         |   |   |   |
| Other                marketable securities              |   |                             | -       |                         |   | - |   |
|                                                    |   |                             | 380.4   |                         |   | 380.4 |   |
| Unrealized                gain on marketable securities |   |                             | 711.6   |                         |   | 921.6 |   |
| Total                                                   |   | $                                | 1,092.0 |                         | $      | 1,302.0 |   |
|                                                    |   |                             |    |                         |   |   |   |
| Marketable                Securities - non-current:     |   |                             |    |                         |   |   |   |
| Broadcaster                (formerly IMSI)              |   | $                                | 2,719.4 |                         | $      | 2,794.3 |   |
| Access                Propeller Holdings , Inc.         |   |                             | 300.0   |                         |   | 300.0 |   |
| Sub                total                                |   |                             | 3,019.4 |                         |   | 3,094.3 |   |
| Unrealized                gain on marketable securities |   |                             | 5,088.1 |                         |   | 6,770.8 |   |
| Less:                allowance for impairments          |   |                             | (300.0  | )                            |   | (300.0 | ) |
| Total                                                   |   | $                                | 7,807.5 |                         | $      | 9,565.1 |   |

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited)**

**NOTE      4- ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

**NOTE      5-. NOTES PAYABLE - RELATED PARTIES **

|                                                                                                  |   | December                31, 2006 |   | June                30, 2006 |   |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|------------------------------|--------|
|                                                                                                  |   | (in                thousands)    |   |
| Secured                Promissory Note with Interest at 15%                                           |   | $                                | 325.0  |                         | $      | 325.0 |   |
| $345,000                Secured Promissory Notes with Interest at 10%, net of                discount |   |                             | 345.0  |                         |   | 345.0 |   |
| Notes                payable to certain former executives and related parties                         |   |                             | 199.4  |                         |   | 140.7 |   |
| Debt                due to former employees in conjunction with settlement                agreement   |   |                             | 74.6   |                         |   | 103.4 |   |
|                                                                                                  |   |                             | 944.0  |                         |   | 914.1 |   |
|                                                                                                  |   |                             |   |                         |   |   |   |
| Less:                Current portion                                                                  |   |                             | 944.0  |                         |   | 914.1 |   |
| Long-term                portion                                                                      |   | $                                | -      |                         | $      | - |   |

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited)**

----

**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited)**

**NOTE      6- COMMITMENTS AND CONTINGENCIES **

**NOTE      7- SUBSEQUENT EVENTS **

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**DIGITAL      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**

**NOTES      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2006**

**(Unaudited)**

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**ITEM      2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**PLAN      OF OPERATION**

| · | unforeseen                obligations or liabilities; |
|--------|-------------------------------------------------------|

| · | difficulty                assimilating the acquired operations and                personnel; |
|--------|----------------------------------------------------------------------------------------------|

| · | risks                of entering markets in which we have little or no direct prior                experience; |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | potential                impairment of relationships with employees or customers as a result                of                changes in management; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Potential                dilutive issuances of equity, large and immediate write-offs, the                incurrence of debt, and amortization of goodwill or other intangible                assets. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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** **

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**ITEM      3.**
**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

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**ITEM      4. CONTROLS AND PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in Internal Controls**

**PART      II. OTHER INFORMATION**

**Item      1.**

** **

**Legal      Proceedings.**

**Item      2.**

** **

**Unregistered      Sales of Equity Securities and Uses of Proceeds.**

**Item      3. Defaults upon Senior Securities**

**Item      4.**

** **

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

**Item      5.**

** **

**Other      Information.**

**Item      6.**

** **

**Exhibits      And Reports On Form 8-K**

|   | (a) | Exhibits:                None. |
|--------|-----|--------------------------------|

|   | 31     | Certification                pursuant to Rule 13a-14(a) of the Exchange Act                                                                                                                                               |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                      |
|   | 32     | Certification                pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section                1350,                as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

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**SIGNATURES**

|                                                            |                                                            |                     |
|-----------------------------------------------------------------|-----------------------------------------------------------------|--------------------------|
|                                                            | DIGITAL                CREATIVE DIGITAL CORPORATION             |
|                 Dated:                October 9, 2007 |                                                       |                |
|                                                            |                                                            |                     |
|                                                                 | By:                                                   | Gary              Herman |
|                                                            | Name:                Gary HermanTitle:                President |

|        |                                                                                     |                            |
|--------|------------------------------------------------------------------------------------------|---------------------------------|
|        | By:                                                                            | Vincent              De Lorenzo |
|   | Name:                  Vincent De LorenzoTitle:                  Chief Financial Officer |

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