U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~March 31,~~September 30, 2010

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-53326

DRC VENTURES, INC. ~~(Exact name of registrant as specified in its charter)~~

(Exact name of registrant as specified in its charter)

Nevada		26-2423443
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

497 Willow Street, South Hempstead, New York 11550

(Address of principal executive offices)

(516) 594-4401

(Issuer's telephone number)

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

fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

¨ 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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)		Smaller reporting company x

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ¨ Yes ¨ No

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: At ~~May~~November 1215, 2010 there were 1,000,000 shares of common stock outstanding.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

	~~Page~~	Page
Balance Sheets as of March 31, 2010 (unaudited) and June 30, 2009 (audited)	F-1
Balance Sheets as of September 30, 2010 (unaudited) and June 30, 2010		F-1
Statements of Operations for the three months ended March 31, 2010 and 2009 and the period from April 15, 2008 (date of inception) to March 31, 2010 (unaudited)	F-2
Statements of Operations for the three months ended September 30, 2010 and 2009 and the period from April 15, 2008 (date of inception) to September 30, 2010 (unaudited)		F-2
Statements of Operations for the nine months ended March 31, 2010 and 2009 and the period from April 15, 2008 (date of inception) to March 31, 2010 (unaudited)	F-3
Statement of Stockholder’s Deficit as of September 30, 2010 (unaudited)		F-3
Statement of Stockholder’s Deficit as of March 31, 2010 (unaudited)	F-4
Statements of Cash Flows for the three months ended September 30, 2010 and 2009 and the period from April 15, 2008 (date of inception) to September 30, 2010 (unaudited)		F-4
Statements of Cash Flows for the nine months ended March 31, 2010 and 2009 and the period from January 22, 2008 (date of inception) to March 31, 2010 (unaudited)	F-5
Notes to Financial Statements		F-5
Notes to Financial Statements	F-6

DRC ~~Ventures~~ VENTURES, ~~Inc~~INC. ~~Balance Sheet (A Development Stage Company)~~

	As of
	March 31,			June 30,
	2010 (unaudited)			2009 (audited)
ASSETS
CURRENT ASSETS
Cash	$	11		$	520
TOTAL CURRENT ASSETS		11			520
TOTAL ASSETS		11			520
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
CURRENT LIABILITIES
Shareholder Loan	$	16,205		$	12,435
Accrued Expenses		1,820			1,043
TOTAL CURRENT LIABILITIES		18,025			13,478
TOTAL LIABILITIES		18,025			13,478
STOCKHOLDERS' DEFICIT
Preferred stock ($0.0001 par value; 10,000,000 shares authorized;
none issued and outstanding)		-			-
Common stock ($0.0001 par value; 100,000,000 shares authorized;
1,000,000 shares issued and outstanding)		100			100
Stock Subscription Receivable		(100	)		(100	)
Retained Deficit		(18,014	)		(12,958	)
TOTAL STOCKHOLDERS' DEFICIT		(18,014	)		(12,958	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	11		$	520

(A DEVELOPMENT STAGE COMPANY)

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

AS OF SEPTEMBER 30, 2010 AND JUNE 30, 2010

	September 30, 2010 (unaudited)			June 30, 2010
ASSETS
Current Assets
Cash and equivalents	$	1		$	1

TOTAL ASSETS	$	1		$	1

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities
Current Liabilities
Accrued expenses	$	1,750		$	3,750
Accrued interest – related party		2,496			2,136
Loan payable - related party		20,115			17,215
Total Liabilities		24,361			23,101

Stockholders’ Deficit
Common Stock, $.0001 par value, 100,000,000 shares authorized, 1,000,000 shares issued and outstanding		100			100
Preferred Stock, $.0001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding		0			0
Stock subscription receivable		0			(100	)
Deficit accumulated during the development stage		(24,460	)		(23,100	)
Total Stockholders’ Deficit		(24,360	)		(23,100	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1		$	1

See accompanying notes to financial statements.

F-1

DRC ~~Ventures~~ VENTURES, ~~Inc~~INC. ~~(A Development Stage Company) Statement of Operations (unaudited)~~

							Cumulative
	For the three months ended						Since
	March 31,			March 31,			Inception
	2010			2009			April 15, 2008
REVENUES:
Income	$	-		$	-		$	-
Total Revenue		-			-			-
EXPENSES:
Professional Fees		1,500			1,000			14,695
Selling, General, and Administrative		-			303			1,499
Total Expenses		1,500			1,303			16,194
OTHER INCOME/(EXPENSE)
Interest Expense	$	(324	)	$	(317	)	$	(1,820	)
NET OTHER INCOME/(EXPENSE)		(324	)		(317	)		(1,820	)
NET LOSS	$	(1,824	)	$	(1,620	)	$	(18,014	)
Basic and fully diluted net loss per common share:	$	(0.00	)	$	(0.00	)	$	(0.02	)
Weighted average common shares outstanding		1,000,000			1,000,000			1,000,000

(A DEVELOPMENT STAGE COMPANY)

~~The~~STATEMENTS ~~accompanying~~OF ~~notes are an integral part of these financial statements.~~OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009

PERIOD FROM APRIL 15, 2008 (INCEPTION) TO SEPTEMBER 30, 2010

	Three months ended September 30, 2010			Three months ended September 30, 2009			Period from April 15, 2008 (Inception) to September 30, 2010

REVENUES	$	0		$	0		$	0

EXPENSES
Professional fees		1,000			0			20,445
General and administrative expenses		0			12			1,519
TOTAL EXPENSES		1,000			12			21,964

LOSS FROM OPERATIONS		(1,000	)		(12	)		(21,964	)

OTHER EXPENSES
Interest expense		360			(227	)		2,496

LOSS BEFORE PROVISION FOR INCOME TAXES		(1,360	)		(239	)		(24,460	)

PROVISION FOR INCOME TAXES		0			0			0

NET LOSS	$	(1,360	)	$	(239	)	$	(24,460	)

NET LOSS PER SHARE: BASIC AND DILUTED	$	(0.00	)	$	(0.00	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED		1,000,000			1,000,000

See accompanying notes to financial statements.

F-2

DRC ~~Ventures~~ VENTURES, ~~Inc~~INC. ~~(A Development Stage Company) Statement of Operations (unaudited)~~

							Cumulative
	For the nine months ended						Since
	March 31,			March 31,			Inception
	2010			2009			April 15, 2008
REVENUES:
Income	$	-		$	-		$	-
Total Revenue		-			-			-
EXPENSES:
Professional Fees		3,700			1,500			14,695
Selling, General, and Administrative		579			617			1,499
Total Expenses		4,279			2,117			16,194
OTHER INCOME/(EXPENSE)
Interest Expense	$	(777	)	$	(717	)	$	(1,820	)
NET OTHER INCOME/(EXPENSE)		(777	)		(717	)		(1,820	)
NET LOSS	$	(5,056	)	$	(2,834	)	$	(18,014	)
Basic and fully diluted net loss per common share:	$	(0.01	)	$	(0.00	)	$	(0.02	)
Weighted average common shares outstanding		1,000,000			1,000,000			1,000,000

(A DEVELOPMENT STAGE COMPANY)

~~The~~STATEMENT ~~accompanying~~OF ~~notes~~STOCKHOLDERS’ ~~are an integral part of these financial statements.~~DEFICIT

PERIOD FROM APRIL 15, 2008 (INCEPTION) TO SEPTEMBER 30, 2010

	Common Stock				Stock subscription			Deficit accumulated during the development
	Shares		Amount		receivable			stage			Total

Inception, April 15, 2008		0	$	0	$	0		$	0		$	0

Issuance of common stock to founders for stock subscription receivable @ $.0001		1,000,000		100		(100	)		-			0

Net loss for the period ended June 30, 2008		-		-		-			(9,195	)		(9,195	)

Balance, June 30, 2008		1,000,000		100		(100	)		(9,195	)		(9,195	)

Net loss for the year ended June 30, 2009		-		-		-			(3,763	)		(3,763	)

Balance, June 30, 2009		1,000,000		100		(100	)		(12,958	)		(12,958	)

Net loss for the year ended June 30, 2010		-		-		-			(10,142	)		(10,142	)

Balance, June 30, 2010		1,000,000		100		(100	)		(23,100	)		(23,100	)

Cash received for stock subscription receivable		-		-		100			-			100

Net loss for the three months ended September 30, 2010		-		-		-			(1,360	)		(1,360	)

Balance, September 30, 2010		1,000,000	$	100	$	0		$	(24,460	)	$	(24,360	)

See accompanying notes to financial statements.

F-3

DRC ~~Ventures~~ VENTURES, ~~Inc~~INC. ~~Statement of Stockholders' Deficit (unaudited) (A Development Stage Company)~~

									Additional
	Common Stock				Preferred stock				Paid-in		Deficit
	Shares		Amount		Shares		Amount		Capital		Accumulated
Balances, June 30, 2008		-	$	-		-	$	-	$	-	$	(9,195	)
Net income/(loss)		-		-		-		-		-		(3,763	)
Issuance of common shares		1,000,000		100		-		-		-		-
Balances, June 30, 2009		1,000,000	$	100		-	$	-	$	-	$	(12,958	)
Net income/(loss)		-		-		-		-		-		(5,056	)
Balances, March 31, 2010		1,000,000	$	100		-	$	-	$	-	$	(18,014	)

(A DEVELOPMENT STAGE COMPANY)

~~The~~STATEMENTS ~~accompanying~~OF ~~notes~~CASH ~~are an integral part of these financial statements.~~FLOWS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009

PERIOD FROM APRIL 15, 2008 (INCEPTION) TO SEPTEMBER 30, 2010

	Three months ended September 30, 2010			Three months ended September 30, 2009			Period from April 15, 2008 (Inception) to September 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(1,360	)	$	(239	)	$	(24,460	)
Change in non-cash working capital items:
Changes in assets and liabilities:
Increase (decrease) in accrued expenses		(2,000	)		0			1,750
Increase in accrued interest – related party		360			227			2,496
CASH FLOWS USED BY OPERATING ACTIVITIES		(3,000	)		(12	)		(20,214	)

CASH FLOWS FROM FINANCING ACTIVITIES
Loans received from related party		2,900			0			20,115
Proceeds from sales of common stock		100			0			100
NET CASH PROVIDED BY FINANCING ACTIVITIES		3,000			0			20,215

NET INCREASE (DECREASE) IN CASH		0			(12	)		1

Cash, beginning of period		1			520			0
Cash, end of period	$	1		$	508		$	1

SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	0		$	0		$	0
Income taxes paid	$	0		$	0		$	0
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued for subscription receivable	$	0		$	0		$	100

See accompanying notes to financial statements.

F-4

DRC ~~Ventures~~ VENTURES, ~~Inc~~INC. ~~(A Development Stage Company) Statement of Cash Flows (unaudited)~~

							Cumulative
	For the						Totals
	nine months ended						Since
	March 31,			March 31,			Inception
	2010			2009			April 15, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,056	)	$	(2,834	)	$	(18,014	)
Adjustments to reconcile net (loss) to net cash used in operations:
Changes in Assets and Liabilities:
(Increase)/Decrease in Accrued Expenses		777			717			1,820
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(4,279	)		(2,117	)		(16,194	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Note Payable to Related Party		3,770			2,125			16,205
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		3,770			2,125			16,205
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD		520			5			-
CASH AND CASH EQUIVALENTS, END OF THE PERIOD	$	11		$	13		$	11

(A DEVELOPMENT STAGE COMPANY)

~~The~~NOTES ~~accompanying~~TO ~~notes~~THE ~~are~~FINANCIAL ~~an integral part of these financial statements.~~STATEMENTS

SEPTEMBER 30, 2010

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

DRC Ventures, Inc. (“DRC Ventures” and the “Company”) was organized under the laws of the State of Nevada on April 15, 2008 as a corporation. The Company’s objective is to acquire or merge with a target business or company in a business combination.

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a June 30 fiscal year end.

Cash and Cash Equivalents

DRC Ventures considers all highly liquid investments with maturities of three months or less to be cash equivalents. At September 30 and June 30, 2010, the Company had $1 of cash.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accrued expenses, accrued interest – related party and loans payable to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

F-5

DRC VENTURES, INC. ~~NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010~~

~~NOTE~~ (A~~- BUSINESS~~ ~~ACTIVITY~~DEVELOPMENT STAGE COMPANY)

~~DRC~~NOTES ~~Ventures,~~TO ~~Inc.~~THE ~~(the~~FINANCIAL “Company”) was organized under the laws of the State of Nevada on April 15, 2008 as a corporation with a year end of June 30. The Company’s objective is to acquire or merge with a target business or company in a business combination.STATEMENTS

~~NOTE B—GOING~~SEPTEMBER ~~CONCERN~~30, 2010

~~The~~NOTE ~~accompanying~~1 ~~financial~~– ~~statements~~SUMMARY ~~have~~OF ~~been~~SIGNIFICANT ~~prepared~~ACCOUNTING onPOLICIES a going concern basis, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company has a deficit accumulated during the development stage of $17,654 used cash from operations of $16,194 since its inception, and has a negative working capital of $18,014 at March 31, 2010. (CONTINUED)

~~The Company’s~~Basic ~~ability~~Income to(Loss) ~~continue as a going concern is dependent upon its ability~~Per to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The Company’s ability to continue as a going concern is also dependent on its ability to find a suitable target company and enter into a possible reverse merger with such company. Management’s plan includes obtaining additional funds by equity financing through a reverse merger transaction and/or related party advances; however there is no assurance of additional funding being available. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might arise as a result of this uncertainty.Share

~~NOTE~~Basic income ~~C—SUMMARY~~(loss) OFper share is calculated by dividing the Company’s net loss ~~SIGNIFICANT~~applicable ~~ACCOUNTING~~to ~~POLICIES~~common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of September 30, 2010.

~~Basis of Presentation~~Stock- ~~The financial statements included herein were prepared~~Based ~~under the accrual basis of accounting.~~Compensation

~~Cash~~Stock-based compensation ~~and~~is ~~Cash Equivalents-~~accounted ~~For~~for ~~purposes~~at offair ~~the~~value ~~Statement~~in ofaccordance ~~Cash~~with ~~Flows~~ASC Topic 718. To date, the Company ~~considers~~ ~~liquid~~has ~~investments~~not ~~with~~adopted ana ~~original~~stock ~~maturity~~option plan and has not granted any stock options. As of ~~three~~September ~~months~~30, or2010, ~~less~~the Company has not issued toany bestock-based ~~cash~~payments ~~equivalents~~to its employees.

~~Management’s~~Recent ~~Use of~~Accounting Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all of the costs of doing business.Pronouncements

DRC Ventures does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

NOTE 2 – ACCRUED EXPENSES

Accrued expenses at September 30 and June 30, 2010 consisted of amounts owed to the Company’s outside independent auditors.

NOTE 3 – LOAN PAYABLE – RELATED PARTY

The Company has signed a series of promissory notes with a related party. The total amount of the loans outstanding was $20,115 and $17,215 as of September 30, 2010 and June 30, 2010, respectively. The loans are payable upon demand, bear 8% interest and are unsecured.

Accrued interest on the above loans was $2,496 and $2,136 as of September 30, 2010 and June 30, 2010.

NOTE 4 – COMMON STOCK

The Company has 100,000,000 shares of $0.0001 par value common stock authorized.

During the period ended June 30, 2008, the Company issued 1,000,000 shares of common stock to its founders for a subscription receivable of $100. The receivable was paid in the quarter ended September 30, 2010.

As of September 30, 2010 and June 30, 2010 there were 1,000,000 shares of common stock issued and outstanding.

The Company also has 10,000,000 shares of $0.0001 par value preferred stock authorized.

As of September 30, 2010 and June 30, 2010 there were 0 shares of preferred stock issued and outstanding.

F-6

DRC VENTURES, INC. ~~NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010~~

~~NOTE C—SUMMARY OF~~(A ~~SIGNIFICANT~~DEVELOPMENT ~~ACCOUNTING~~STAGE ~~POLICIES—CONT’D~~COMPANY)

~~Revenue Recognition-~~NOTES ~~The~~TO ~~Company~~THE ~~applies~~FINANCIAL paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue realized or realizable and earned when all of the following criteria are met:STATEMENTS

~~(i) persuasive evidence of an arrangement exists~~SEPTEMBER 30, 2010

~~(ii)~~NOTE 5 ~~the~~– ~~services~~INCOME ~~have been rendered and all required milestones achieved,~~TAXES

~~(iii)~~As of September 30, 2010, the ~~sales~~Company ~~price~~had isnet ~~fixed~~operating orloss ~~determinable~~carry forwards of approximately $24,400 that may be available to reduce future years’ taxable income through 2030. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

~~(iv)~~The provision ~~collectability~~for isFederal ~~reasonably~~income ~~assured.~~tax consists of the following:

Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements.

	September 30, 2010
Federal income tax benefit attributable to:
Current Operations	$	446
Less: valuation allowance		(446	)
Net provision for Federal income taxes	$	0

~~Net Income per Common~~The ~~Share-~~cumulative ~~Net~~tax ~~loss~~effect ~~per~~at ~~common share is computed pursuant to section 260-10-45 of~~ the ~~FASB~~expected ~~Accounting~~rate ~~Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number~~ of ~~shares~~34% of ~~common~~significant ~~stock outstanding during the period. Diluted net~~items ~~loss~~comprising ~~per~~our ~~share is computed by dividing~~ net ~~loss~~deferred bytax ~~the~~amount ~~weighted~~is ~~average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares outstanding~~ as ~~of March 31, 2010.~~follows:

Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

	September 30, 2010			June 30, 2010
Deferred tax asset attributable to:
Net operating loss carryover	$	8,300		$	7,854
Less: valuation allowance		(8,300	)		(7,854	)
Net deferred tax asset	$	0		$	0

~~Fair~~Due ~~Value~~to the change in ownership provisions of ~~Financial Instruments-~~the ~~The~~Tax ~~carrying~~Reform ~~amounts~~Act ~~reported~~of in1986, ~~the~~net ~~balance~~operating loss ~~sheet~~carry ~~for~~forwards ~~cash~~of $24,400 for Federal income tax reporting purposes are ~~accounts~~subject ~~receivable~~to ~~and~~annual ~~payable~~limitations. ~~approximate~~Should ~~fair~~a ~~value~~change ~~based~~in onownership ~~the~~occur ~~short-term~~net operating ~~maturity~~loss ofcarry ~~these~~forwards ~~instruments~~may be limited as to use in future years.

~~Accounts Receivable-~~NOTE ~~Accounts~~6 ~~deemed~~– ~~uncollectible~~LIQUIDITY ~~are~~AND ~~written~~GOING ~~off in the year they become uncollectible. As of March 31, 2010, the balance in Accounts Receivable was $0.~~CONCERN

~~Impairment of Long-Lived~~DRC ~~Assets-~~Ventures ~~The~~has ~~Company~~negative ~~evaluates~~working ~~the~~capital, ~~recoverability~~has ofincurred ~~its~~losses ~~fixed~~since ~~assets~~inception, and ~~other~~has ~~assets~~not inyet ~~accordance~~received ~~with~~revenues ~~section~~from ~~360-10-15~~sales of ~~the~~products ~~FASB Accounting Standards Codification for disclosures about Impairment~~ or ~~Disposal of Long-Lived Assets~~services. ~~Disclosure requires recognition of impairment of~~ These ~~long-lived~~factors ~~assets~~create insubstantial ~~the~~doubt ~~event~~about the ~~net~~Company’s ~~book~~ability ~~value~~to ofcontinue ~~such~~as ~~assets exceeds its~~a ~~expected~~going ~~cash flows~~concern. The Iffinancial ~~so,~~statements itdo isnot ~~considered~~include toany beadjustment ~~impaired and is written down~~that tomight ~~fair~~be ~~value,~~necessary ~~which~~if isthe ~~determined based on either discounted future cash flows or appraised values. The~~ Company ~~adopted~~is ~~the~~unable ~~statement~~to oncontinue ~~inception.~~as ~~No impairments~~a ~~of these types of assets were recognized during the period ended~~going ~~March 31, 2010~~concern.

The ability of DRC Ventures to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.

F-7

DRC VENTURES, INC. ~~NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010~~

~~NOTE C—SUMMARY OF~~(A ~~SIGNIFICANT~~DEVELOPMENT ~~ACCOUNTING~~STAGE ~~POLICIES—CONT’D~~COMPANY)

~~Stock-Based~~NOTES ~~Compensation-~~TO ~~The~~THE ~~Company~~FINANCIAL accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.STATEMENTS

~~Fair Value for Financial~~SEPTEMBER Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP)30, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:2010

~~Level~~NOTE 7 1– ~~Quoted~~COMMITMENTS ~~market~~AND ~~prices available in active markets for identical assets or liabilities as of the reporting date.~~CONTINGENCIES

~~Level~~The Company 2neither ~~Pricing~~owns ~~inputs~~nor ~~other~~leases ~~than~~any ~~quoted~~real ~~prices~~or inpersonal ~~active~~property. ~~markets~~An ~~included~~officer inhas provided ~~Level~~office 1,services ~~which~~without ~~are~~charge. There ~~either~~is ~~directly~~no orobligation ~~indirectly~~for ~~observable~~the officer asto ofcontinue this arrangement. Such costs are immaterial to the financial ~~reporting~~statements ~~date~~and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

~~Level~~NOTE 8 3– ~~Pricing~~SUBSEQUENT ~~inputs that are generally observable inputs and not corroborated by market data.~~EVENTS

~~The~~Management has ~~carrying~~evaluated ~~amounts~~subsequent ofevents ~~the~~through ~~Company’s financial~~November ~~assets and liabilities~~15, ~~such as cash and accrued expenses~~2010, ~~approximate their fair values because of~~ the ~~short~~date ~~maturity of~~ these ~~instruments. The~~ ~~Company’s~~financial ~~note~~statements ~~payable~~were ~~approximates~~issued, ~~the~~and ~~fair~~has ~~value~~determined ofit ~~such~~does ~~instrument~~not ~~based~~have ~~upon~~any ~~management’s~~material ~~best~~subsequent ~~estimate~~events ~~of interest rates that would be available~~ to ~~the Company for similar financial arrangement at March 31, 2010~~disclose.

The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at March 31, 2010, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the interim period ended March 31, 2010.

F-8

DRC VENTURES, INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010

NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

Recent Accounting Pronouncements- In June 2009, the FASB approved the “FASB Accounting Standards Codification” (the “Codification”) as the single source of authoritative nongovernmental U.S. GAAP which commenced on July 1, 2009. The Codification does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents will be superseded and all other accounting literature not included in the Codification will be considered non-authoritative. The Codification is effective for interim and annual periods ending after September 15, 2009. The adoption did not have a material impact on the Company’s financial position, results of operations or cash flows.

In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-04, Accounting for Redeemable Equity Instruments - Amendment to Section 480-10-S99, which represents an update to section 480-10-S99, distinguishing liabilities from equity, per EITF Topic D-98, Classification and Measurement of Redeemable Securities. The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-05, Fair Value Measurement and Disclosures Topic 820 – Measuring Liabilities at Fair Value, which provides amendments to subtopic 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of liabilities. This Update provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: 1. A valuation technique that uses: a. The quoted price of the identical liability when traded as an asset b. Quoted prices for similar liabilities or similar liabilities when traded as assets. 2. Another valuation technique that is consistent with the principles of topic 820; two examples would be an income approach, such as a present value technique, or a market approach, such as a technique that is based on the amount at the measurement date that the reporting entity would pay to transfer the identical liability or would receive to enter into the identical liability. The amendments in this Update also clarify that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendments in this Update also clarify that both a quoted price in an active market for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows.

In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-08, Earnings Per Share – Amendments to Section 260-10-S99, which represents technical corrections to topic 260-10-S99, Earnings per share, based on EITF Topic D-53, Computation of Earnings Per Share for a Period that includes a Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock and EITF Topic D-42, The Effect of the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock. The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows.

In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-09, Accounting for Investments-Equity Method and Joint Ventures and Accounting for Equity-Based Payments to Non-Employees. This Update represents a correction to Section 323-10-S99-4, Accounting by an Investor for Stock-Based Compensation Granted to Employees of an Equity Method Investee. Additionally, it adds observer comment Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other Than Employees to the Codification. The Company does not expect the adoption to have a material impact on its consolidated financial position, results of operations or cash flows.

F-9

DRC VENTURES, INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010

NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

Recent Accounting Pronouncements (Cont’d)

In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-12, Fair Value Measurements and Disclosures Topic 820 – Investment in Certain Entities That Calculate Net Assets Value Per Share (or Its Equivalent), which provides amendments to Subtopic 820-10, Fair Value Measurements and Disclosures-Overall, for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). The amendments in this Update permit, as a practical expedient, a reporting entity to measure the fair value of an investment that is within the scope of the amendments in this Update on the basis of the net asset value per share of the investment (or its equivalent) if the net asset value of the investment (or its equivalent) is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entity’s measurement date, including measurement of all or substantially all of the underlying investments of the investee in accordance with Topic 820. The amendments in this Update also require disclosures by major category of investment about the attributes of investments within the scope of the amendments in this Update, such as the nature of any restrictions on the investor’s ability to redeem its investments at the measurement date, any unfunded commitments (for example, a contractual commitment by the investor to invest a specified amount of additional capital at a future date to fund investments that will be make by the investee), and the investment strategies of the investees. The major category of investment is required to be determined on the basis of the nature and risks of the investment in a manner consistent with the guidance for major security types in U.S. GAAP on investments in debt and equity securities in paragraph 320-10-50-1B. The disclosures are required for all investments within the scope of the amendments in this Update regardless of whether the fair value of the investment is measured using the practical expedient. The Company does not expect the adoption to have a material impact on its consolidated financial position, results of operations or cash flows.

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

NOTE D-SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental disclosures of cash flow information for the period ended March 31, 2010 and 2009 is summarized as follows:

Cash paid during the period ended March 31, 2010 and 2009 for interest and income taxes:

	2010		2009
Interest	$	-	$	-
Taxes	$	-	$	-

NOTE E-SEGMENT REPORTING

The Company follows the guidance set forth by section 280-10 of the FASB Accounting Standards Codification for reporting and disclosure on operating segments of the Company. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of March 31, 2010.

F-10

DRC VENTURES, INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010

NOTE F-INCOME TAXES

Due to the operating loss and the inability to recognize an income tax benefit there is no provision for current or deferred federal or state income taxes for year ended June 30, 2009

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.

The Company’s total deferred tax asset, calculated using federal and state effective tax rates, as of June 30, 2009 is as follows:

Total Deferred Tax Asset	$	4,405
Valuation Allowance		(4,405	)
Net Deferred Tax Asset		-

The reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes for the tax years ended June 30, 2009 and 2008 is as follows:

	2009			2008
Income tax computed at the federal statutory rate		34	%		34	%
State income tax, net of federal tax benefit		0	%		0	%
Total		34	%		34	%
Valuation allowance		-34	%		-34	%
Total deferred tax asset		0	%		0	%

Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased (decreased) by approximately $1,279 and $3,126 for the years ending June 30, 2009 and 2008, respectively.

As of June 30, 2009, the Company had a federal and state net operating loss carry forward in the amount of approximately $ 12,958 which expires in the year ending June 30, 2029.

NOTE G-CAPITAL STOCK

The Company is authorized to issue 100,000,000 common shares at $0.0001 par value per share.

During the periods ended March 31, 2010, the Company issued no shares of common stock.

As of March 31, 2010, the Company had the following shares of common stock outstanding:

Name	Number of shares		Cash or Services	Price per share		Total value
David Powell		500,000	founder shares	$	0.0001	$	50
Ronald Williams		500,000	founder shares	$	0.0001	$	50
		1,000,000				$	100

The Company is authorized to issue 10,000,000 preferred shares at $0.0001 per share.

During the period ended March 31, 2010, the Company issued no preferred stock.

As of March 31, 2010, the Company had no preferred shares outstanding.

F-11

DRC VENTURES, INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2010

NOTE H-DEVELOPMENT STAGE COMPANY

The Company is in the development stage as of March 31, 2010 and to date has had no significant operations. Recovery of the Company assets is dependent on future events, the outcome of which is indeterminable. In addition, successful completion of the Company’s development program and its transition, ultimately, to attaining profitable operations is dependent upon obtaining adequate financing to fulfill its development activities and achieving a level of sales adequate to support the Company’s cost structure.

NOTE I—SHAREHOLDER LOAN/RELATED PARTY

The Company has signed a series of promissory notes with a related party. The total amount of loan outstanding is $16,205 and it is payable upon demand, the annual interest rate on this note is 8%. Accrued interest, but not paid as of March 31, 2010 is 1,820.

F-12

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

Overview.

DRC Ventures, Inc. (“we”, “us” or the “Company”) was organized in the State of Nevada on April 15, 2008. We are a developmental stage company and have not generated any revenues to date. We were organized to serve as a vehicle for a business combination through a capital stock exchange, merger, reverse acquisition, asset acquisition or other similar business combination (a “Business Combination”) with an operating or development stage business (the “Target Business”) which desires to utilize our status as a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We are in the process of identifying and evaluating targets for a Business Combination. We are not presently engaged in, and will not engage in, any substantive commercial business operations unless and until we consummate a Business Combination.

Our management has broad discretion with respect to identifying and selecting a prospective Target Business. We have not established any specific attributes or criteria (financial or otherwise) for prospective Target Businesses. Our sole officer and director has never served as an officer or director of a development stage public company with the business purpose of entering into a transaction such as that contemplated by our Company. Accordingly, he may not successfully identify a Target Business or conclude a Business Combination.

Any entity with which we consummate a Business Combination will be subject to numerous risks in connection with its operations. To the extent we affect a Business Combination with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, we may be affected by numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. If we consummate a Business Combination with a foreign entity, we will be subject to all of the risks attendant to foreign operations. Although our management will endeavor to evaluate the risks inherent in a particular Target Business, we cannot assure you that we will properly ascertain or assess all significant risk factors.

We expect that in connection with any Business Combination, we will issue a significant number of shares of our common stock (equal to at least 80% of the total number of shares outstanding after giving effect to the transaction and likely a significantly higher percentage) in order to ensure that the Business Combination qualifies as a tax-free transaction under federal tax laws. The issuance of additional shares of our capital stock will:

significantly reduce the equity interest of our stockholders prior to the transaction; and

cause a change in control and likely result in the resignation or removal of our present officers and directors.

Our management anticipates that our Company likely will affect only one Business Combination, due primarily to our financial resources and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management's plan to offer a controlling interest to a Target Business in order to achieve a tax-free reorganization. This lack of diversification should be considered a substantial risk in investing in us because it will not permit us to offset potential losses from one venture against potential gains from another.

Liquidity and Capital Resources.

At ~~March~~ 31September 30, 2010, we had a de minimus amount of cash on hand. Our available ~~existing~~ cash ~~reserves~~ will not be sufficient to cover our operating costs and expenses ~~over~~ over the next twelve months which we anticipate will comprise costs and expenses in in connection with the preparation and filing of reports under the Exchange Act, the identification and evaluation of targets for a Business Combination and, possibly, a Business Combination, and we will require funds therefor.

To date, we have funded our operations through loans from our stockholders and, as of ~~March~~September 3130, 2010, we had borrowed an aggregate of $1620,~~205~~115 from them, including $32,~~770~~900 during the ~~nine~~three months then ended. Our stockholder has advised us that it expects to fund additional costs and expenses that we will incur through loans or further investment in the Company, as and when necessary.

We cannot provide investors with any assurance that we will have sufficient capital resources to identify a suitable Target Business, to conduct effective due diligence as to any Target Business or to consummate a Business Combination. As a result of our negative working capital, our losses since inception, and failure to generate revenues from operations, our financial statements include a note in which our auditor has expressed doubt about our ability to continue as a "going concern."

Results of Operations.

Since our inception, we have not generated any revenues. We reported a net loss for the three ~~and~~months ~~nine month periods~~ ended ~~March~~September 3130, 2010 of $1,~~824~~360 and ~~$5,056, respectively, and~~ a net loss since inception of $1820,~~014~~215. The Company has used cash from operations of $1624,~~194~~ 460 since its inception, consisting primarily of professional fees, and has a negative working capital of $1824,~~014~~360 at ~~March~~September 3130, 2010.

We do not expect to engage in any substantive activities unless and until such time as we enter into a Business Combination, if ever. We cannot provide investors with any assessment as to the nature of a Target Business’s operations or speculate as to the status of its products or operations, whether at the time of the Business Combination it will be generating revenues or its future prospects.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable.

Item 4(T). Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of ~~March~~September 3130, 2010, the Company’s management carried out an evaluation, under ~~the~~ the supervision and with the participation of the Company’s Chief Executive Officer, who is the Company’s principal executive officer and principal ~~financial~~ financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), pursuant to Exchange Act Rule 13a-15. Based on ~~such~~ such evaluation, the Company’s Chief Executive Officer has concluded that the Company's disclosure controls and procedures were effective.

Changes in Internal Controls

There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) during the three months ended ~~March~~September 3130, 2010 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not a party to any legal proceeding or litigation.

Item 1A. Risk Factors.

Smaller reporting companies are not required to provide the information required by this item.

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

(a) During the three months ended ~~March~~September 3130, 2010, the Company did not issue any securities.

(b) Not applicable.

(c) During the three months ended ~~March~~September 3130, 2010, neither the issuer nor any "affiliated purchaser," as defined in Rule 10b-18(a)(13), purchased any shares or other units of any class of the issuer's equity securities.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. (Removed and Reserved)

Item 5. Other Information.

(a) None.

(b) The Company has not adopted any procedures by which security holders may recommend nominees to the registrant's board of directors.

Item 6. Exhibits.

Exhibit		Description
31.1		Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended ~~March~~September 3130, 2010.
32.1*		Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

* Pursuant to Commission Release No. 33-8238, this certification will be treated as “accompanying” this Quarterly Report on Form 10-Q and not “filed” as part of such report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of Section 18 of the Securities Exchange Act of 1934, as amended, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused the Report to be signed on its behalf by the undersigned thereunto duly authorized.

		DRC VENTURES, INC.
Dated: May 12, 2010	By:	/s/ Ronald Williams
Dated: November 16, 2010	By:	/s/ Ronald Williams
	Name:	Ronald Williams
	Title:	President, Principal Executive Officer and Principal Financial Officer

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