----

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**FUEGO      ENTERTAINMENT, INC.**

|  Nevada                                                                        |  20-2078925                                                |
|-------------------------------------------------------------------------------------|-----------------------------------------------------------------|
|  (State                or other jurisdiction of incorporation or organization) |   (I.R.S.                Employer Identification No.) |

|   |  19250                NW 89th Court                                           |   |
|--------|------------------------------------------------------------------------------------|--------|
|   |  Miami,                FL 33018                                               |   |
|   |  (Address,                including zip code, of principal executive offices) |   |
|   |                                                                               |   |
|   |  Issuer’s                telephone number : (305) 829-3777              |   |

----

|  PART                I:  |  FINANCIAL                INFORMATION                                                                                                            |  Page |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                          |                                                                                                                                                  |       |
|  Item                1.  |  Financial                Statements:                                                                                                            | 3          |
|                          |                                                                                                                                                  |       |
|                          |  Balance                Sheets as of November 30, 2007 (unaudited) and May 31,                2007                                               | 3          |
|                          |                                                                                                                                                  |       |
|                          |  Statements                of Operations for the three and six months ended November 30, 2007                and                2006 (unaudited) | 4          |
|                          |                                                                                                                                                  |       |
|                          |  Statements                of Cash Flows for the six months ended November 30, 2007 and                2006 (unaudited)                | 5          |
|                          |                                                                                                                                                  |       |
|                          | Statements                of Stockholders' Equity (Deficit) for the period from Inception                to November 30, 2007 (unaudited)   | 6          |
|                          |                                                                                                                                                  |       |
|                          |  Notes                to Financial Statements                                                                                                    | 7          |
|                          |                                                                                                                                                  |       |
|  Item                2.  |  Management's                Discussion and Analysis of Financial Condition and Plan of                Operations                                | 10         |
|                          |                                                                                                                                                  |       |
|  Item                3.  |  Controls                and Procedures                                                                                                          | 14         |
|                          |                                                                                                                                                  |       |
|  PART                II: |  OTHER                INFORMATION                                                                                                                | 14         |
|                          |                                                                                                                                                  |       |
|  Item                1.  |  Legal                Proceedings                                                                                                                | 14         |
|                          |                                                                                                                                                  |       |
|  Item                2.  |  Changes                in Securities                                                                                                            | 14         |
|                          |                                                                                                                                                  |       |
|  Item                3.  |  Defaults                upon Senior Securities                                                                                                  | 14         |
|                          |                                                                                                                                                  |       |
|  Item                4.  |  Submission                of Matters for a Vote of Security Holders                                                                             | 14         |
|                          |                                                                                                                                                  |       |
|  Item                5.  |  Other                Information                                                                                                                | 14         |
|                          |                                                                                                                                                  |       |
|  Item                6.  |  Exhibits                and Reports on Form 8-K                                                                                                 | 15         |
|                          |                                                                                                                                                  |       |
|                          |  SIGNATURES                                                                                                                                      | 15         |

----

**PART      I: FINANCIAL INFORMATION**

**Item      1. Financial Statements**

| **FUEGO                  ENTERTAINMENT, INC.**                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------|
| ** BALANCE                  SHEETS**                                                          |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   | **November                  30,** |   |   | **May                  31,** |   |
|                                                                                                                                  |   |   | **2007** |   |   | **2007** |   |
|                                                                                                                                  |   |   | (Unaudited) |   |   |   |   |
|  **ASSETS**                                                                                                                      |
|                                                                                                                                  |   |   |   |   |   |   |   |
|  CURRENT                  ASSETS                                                                                                 |   |   |   |   |   |   |   |
|       Cash                                                                                              |   |   | $ | - |   |   | $ | - |   |
|       Account                  receivable-trade, less allowance                                         |   |   |   |   |   |   |   |   |
|               for                  doubtful accounts of $90,000 |   |   | 19,460 |   |   |   | 29,308 |   |
|       Federal                  income tax refund receivable                                             |   |   | 12,115 |   |   |   | 12,115 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|  Total                  Current Assets                                                                                           |   |   | 31,575 |   |   |   | 41,423 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| EQUIPMENT,                  less accumulated depreciation                                                                             |   |   |   |   |   |   |   |   |
|              of                  $20,523 and $14,272, respectively   |   |   | 32,894 |   |   |   | 39,145 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|  OTHER                  ASSETS                                                                                                   |   |   |   |   |   |   |   |   |   |
|        Production                  costs-Video                                                     |   |   |   | 95,941 |   |   |   | 95,941 |   |
|        Production                  costs-Music                                                     |   |   |   | 42,500 |   |   |   | - |   |
|        Deposit                  on music library                                                   |   |   |   | 14,500 |   |   |   | 14,500 |   |
|        Deposit                  on web portal                                                      |   |   |   | 3,882 |   |   |   | - |   |
|        Logo,                  less accumulated amortization                                        |   |   |   |   |   |   |   |   |
|              of                  $ 1,440 and $ 1,170, respectively   |   |   | 1,260 |   |   |   | 1,530 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|  Total                  Other Assets                                                                                             |   |   | 158,083 |   |   |   | 111,971 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   | $ | 222,552 |   |   | $ | 192,540 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|  **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                             |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|       Accounts                  payable                                                                 |   |   | $ | 28,774 |   |   | $ | 24,092 |   |
|       Accounts                  payable - related parties                                               |   |   | 48,543 |   |   |   | 83,518 |   |
|       Accrued                  interest - related parties                                               |   |   | 41,118 |   |   |   | 17,646 |   |
|       Deferred                  revenue                                                                 |   |   |   | 6,659 |   |   |   | 6,659 |   |
|       Income                  taxes payable                                                             |   |   |   | 15,985 |   |   |   | 15,985 |   |
|       Other                  liabilities                                                                |   |   |   | 5,503 |   |   |   | 3,906 |   |
|       Payroll                  tax liabilities                                                          |   |   |   | 5,193 |   |   |   | - |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|        Total                  Current Liabilities                                                  |   |   |   | 151,775 |   |   |   | 151,806 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|      Long-Term                  Debt                                                                         |   |   |   |   |   |   |   |   |   |
|       Notes                  payable - related parties                                                  |   |   |   | 320,943 |   |   |   | 263,893 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|      Total                  Liabilities                                                                      |   |   |   | 472,718 |   |   |   | 415,699 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  EQUITY (DEFICIT)                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Common                  stock, par value $.001, 75,000,000                                                                            |   |   |   |   |   |   |   |   |
|   shares                  authorized, 37,454,353 and 36,639,353                                                             |   |   |   |   |   |   |   |   |
|   issued                  and outstanding, respectively                                                                     |   |   |   | 37,455 |   |   |   | 36,640 |   |
| Paid                  in capital                                                                                                      |   |   |   | 617,690 |   |   |   | 454,905 |   |
| Deferred                  charge                                                                                                      |   |   |   | (22,354 | ) |   |   | (122,979 | ) |
| Subsriptions                  payable                                                                                                 |   |   |   | 65,000 |   |   |   | - |   |
| Retained                  earnings(deficit)                                                                                           |   |   |   | (947,957 | ) |   |   | (591,724 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Total                  Stockholders' Equity (Deficit)                                                                                 |   |   |   | (250,166 | ) |   |   | (223,158 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   | $ | 222,552 |   |   | $ | 192,540 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS**                                                  |

----

| **FUEGO                  ENTERTAINMENT, INC**             |
|-----------------------------------------------------------------------------------------------------------------------|
| **STATEMENTS                  OF OPERATIONS**             |
| **(Unaudited)**                                           |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   | **For                  the Three Months Ended** |   |   | **For                  the Six Months Ended**    |   |
|                                                                                                                  |   | **November                  30,** |   |   | **November                  30,** |   |   | **November                  30,** |   |   | **November                  30,** |   |
|                                                                                                                  |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|    Music                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|        Music                  sales, net                                           |   | $ | 575 |   |   | $ | 17,793 |   |   | $ | 11,951 |   |   | $ | 39,787 |   |
|    Filming                                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,550 |   |
|    Consulting                                                                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,800 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total                  Revenues                                                                     |   |   | 575 |   |   |   | 17,793 |   |   |   | 11,951 |   |   |   | 77,137 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS                  AND EXPENSES                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cost                  of music                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Royalties                  - related party                            |   |   | - |   |   |   | 5,351 |   |   |   | 2,844 |   |   |   | 10,849 |   |
|         Production                  costs                                     |   |   | 336 |   |   |   | - |   |   |   | 636 |   |   |   | - |   |
|    Cost                  of filming                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
|    Selling,                  general and administrative:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Stock                  based and contributed compensation                   |   |   | 93,863 |   |   |   | - |   |   |   | 157,675 |   |   |   | 75,258 |   |
|        Paid                  Compensation & Payroll Taxes                      |   |   | 16,393 |   |   |   | - |   |   |   | 16,393 |   |   |   | - |   |
|        Other                                                                       |   |   | 103,241 |   |   |   | 71,323 |   |   |   | 154,784 |   |   |   | 133,896 |   |
|    TV                  development                                                                     |   |   | - |   |   |   | 46,835 |   |   |   | - |   |   |   | 97,146 |   |
|    Interest                  expense - related parties                                                 |   |   | 17,824 |   |   |   | - |   |   |   | 28,608 |   |   |   | - |   |
|    Interest                  expense - other                                                           |   |   | 330 |   |   |   | - |   |   |   | 723 |   |   |   | - |   |
|    Depreciation                  and amortization                                                      |   |   | 3,192 |   |   |   | 3,163 |   |   |   | 6,521 |   |   |   | 5,828 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total                  costs and expenses                                                           |   |   | 235,179 |   |   |   | 126,672 |   |   |   | 368,184 |   |   |   | 327,977 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                  before income taxes                                                                           |   |   | (234,604 | ) |   |   | (108,879 | ) |   |   | (356,233 | ) |   |   | (250,840 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax expense (benefit)                                                                         |   |   | - |   |   |   |   |   |   |   | - |   |   |   | (19,426 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  (LOSS)                                                                                           |   | $ | (234,604 | ) |   | $ | (108,879 | ) |   | $ | (356,233 | ) |   | $ | (231,414 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS)                  PER SHARE - BASIC                                                                             |   |   | * |   |   |   | * |   |   |   | * |   |   |   | * |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   COMMON                  SHARES OUTSTANDING - BASIC                                                        |   |   | 35,579,774 |   |   |   | 35,520,441 |   |   |   | 36,951,020 |   |   |   | 35,450,758 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *  less                  than $.01 per share                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS**                                  |

----

| **FUEGO                  ENTERTAINMENT, INC.**                                                          |
|----------------------------------------------------------------------------------------------------------------------------------|
| **STATEMENTS                  OF CASH FLOWS**                                                           |
| **(Unaudited)**                                                                                         |
|                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                             |   | **For                  the Six Months Ended**   |   |
|                                                                                                                             |   | **November                  30,** |   |   | **November                  30,** |   |
|                                                                                                                             |   | **2007** |   |   | **2006** |   |
|                                                                                                                             |   |   |   |   |   |   |
| **OPERATING                  ACTIVITIES**                                                                                        |   |   |   |   |   |   |
|     Net                  income (loss)                                                                       |   | $ | (356,233 | ) |   | $ | (231,414 | ) |
|     Adjustments                  to reconcile net income to net cash used by                                 |   |   |   |   |   |   |   |   |
|        operating                  activities                                                  |   |   |   |   |   |   |   |   |
|            Contributed                  services                          |   |   | 41,350 |   |   |   | 24,075 |   |
|            Depreciation                  and amortization                 |   |   | 6,521 |   |   |   | 5,828 |   |
|            Stock                  based compensation                      |   |   | 131,675 |   |   |   | 75,258 |   |
|     Changes                  in operating assets and liabilities                                             |   |   |   |   |   |   | - |   |
|            Accounts                  receivable                           |   |   | 9,849 |   |   |   | (39,787 | ) |
|            Accrued                  federal income tax refund receivable  |   |   | - |   |   |   | (19,426 | ) |
|            Accounts                  payable                              |   |   | (30,293 | ) |   |   | 12,041 |   |
|            Accrued                  interest - related parties            |   |   | 23,472 |   |   |   |   |   |
|            Other                  current liabilities                     |   |   | 1,597 |   |   |   | 1,400 |   |
|            Payroll                  tax liabilities                       |   |   | 5,193 |   |   |   | - |   |
| **NET                  CASH (USED BY) OPERATING ACTIVITIES**                                                                     |   |   | (166,869 | ) |   |   | (172,025 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **INVESTING                  ACTIVITIES**                                                                                        |   |   |   |   |   |   |   |   |
|            Production                  costs-Video                        |   |   | - |   |   |   | (7,308 | ) |
|            Production                  costs-Music                        |   |   | (42,500 | ) |   |   | - |   |
|            Deposit                  on web portal                         |   |   | (3,882 | ) |   |   | - |   |
|            Investments-Affiliation                  agreements            |   |   |   |   |   |   | (50,000 | ) |
|            Purchase                  of equipment                         |   |   | - |   |   |   | (17,696 | ) |
| **NET                  CASH (USED BY) INVESTING ACTIVITIES**                                                                     |   |   | (46,382 | ) |   |   | (75,004 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **FINANCING                  ACTIVITIES**                                                                                        |   |   |   |   |   |   |   |   |
|            Proceeds                  from sale of common stock            |   |   | 12,450 |   |   |   | 25,700 |   |
|            Common                  stock subscriptions payable            |   |   | 65,000 |   |   |   | - |   |
|            Common                  stock issued for debt reduction        |   |   | 78,750 |   |   |   | - |   |
|            Proceeds                  from notes payable - related parties |   |   | 74,733 |   |   |   | 221,177 |   |
|            Repayments                  of notes payable - related parties |   |   | (17,682 | ) |   |   |   |   |
| **NET                  CASH PROVIDED BY FINANCING ACTIVITIES**                                                                   |   |   | 213,251 |   |   |   | 246,877 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **NET                  (DECREASE) IN CASH**                                                                                      |   |   | - |   |   |   | (152 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **CASH,                  BEGINNING OF PERIOD**                                                                                   |   |   | - |   |   |   | 152 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **CASH,                  END OF PERIOD**                                                                                         |   | $ | - |   |   | $ | - |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS**                                             |

----

| **FUEGO                  ENTERTAINMENT, INC.**                                       |
|--------------------------------------------------------------------------------------|
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIT)**                    |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **(Deferred** |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   | **Subscriptions**    |   |   | **Charge)** |   |   | **Retained** |   |   |   |   |
|                                                                                 |   | **Common                  Stock**    |   |   | **Paid-in** |   |   | **Common** |   |   | **Amount** |   |   | **Amortization                  of** |   |   | **Earnings** |   |   |   |   |
|                                                                                 |   | **Shares** |   |   | **Amount** |   |   | **Capital** |   |   | **Stock** |   |   | **Receivable** |   |   | **Deferred                  Charge** |   |   | **(Deficit)** |   |   | **Total** |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  May 31, 2005**                                           |   |   | 13,272,670 |   |   | $ | 13,273 |   |   | $ | 46,058 |   |   | $ | 43,274 |   |   | $ | (43,274 | ) |   | $ | - |   |   | $ | 39,489 |   |   | $ | 98,820 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  received from subscribed shares                            |   |   | 21,658,977 |   |   |   | 21,659 |   |   |   | 29,412 |   |   |   | (51,072 | ) |   |   | 51,072 |   |   |   |   |   |   |   |   |   |   |   | 51,071 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.18                  per share                                                      |   |   | 27,915 |   |   |   | 28 |   |   |   | 4,997 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,025 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|     53,111                  shares @.179 per share               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,561 |   |   |   | (9,561 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscriptions canceled                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 10,000                  shares @ .001 per share                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (10 | ) |   |   | 10 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 40,500                  shares @ .009 per share                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (405 | ) |   |   | 405 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   7,488                  shares @ .179 per share                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,348 | ) |   |   | 1,348 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed                  services                                                |   |   |   |   |   |   |   |   |   |   | 37,931 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 37,931 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss) for the year                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (125,655 | ) |   |   | (125,655 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  May 31, 2006**                                           |   |   | 34,959,562 |   |   | $ | 34,960 |   |   | $ | 118,398 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | (86,166 | ) |   | $ | 67,192 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.18                  per share                                                      |   |   | 102,778 |   |   |   | 103 |   |   |   | 18,397 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 18,500 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  based compensation                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.12                  per share                                                      |   |   | 25,000 |   |   |   | 25 |   |   |   | 2,975 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,000 |   |
| $.15                  per share                                                      |   |   | 60,000 |   |   |   | 60 |   |   |   | 8,940 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,000 |   |
| $.18                  per share                                                      |   |   | 488,013 |   |   |   | 488 |   |   |   | 87,354 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 87,842 |   |
| $.23                  per share                                                      |   |   | 89,000 |   |   |   | 89 |   |   |   | 20,381 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 20,470 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  Issued for debt reduction                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.18                  per share                                                      |   |   | 40,000 |   |   |   | 40 |   |   |   | 7,160 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,200 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  issued for Future Services                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.15                  per share                                                      |   |   | 875,000 |   |   |   | 875 |   |   |   | 130,375 |   |   |   |   |   |   |   |   |   |   |   | (122,979 | ) |   |   |   |   |   |   | 8,271 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed                  services                                                |   |   |   |   |   |   |   |   |   |   | 60,925 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 60,925 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss) for the year                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (505,558 | ) |   |   | (505,558 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  May 31,  2007**                                |   |   | 36,639,353 |   |   | $ | 36,640 |   |   | $ | 454,905 |   |   | $ | - |   |   | $ | - |   |   | $ | (122,979 | ) |   | $ | (591,724 | ) |   | $ | (223,158 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **(Unaudited)**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.15                  per share                                                      |   |   | 83,000 |   |   |   | 83 |   |   |   | 12,367 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 12,450 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  based compensation                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.12                  per share                                                      |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| $.15                  per share                                                      |   |   | 207,000 |   |   |   | 207 |   |   |   | 30,843 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 31,050 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  Issued for debt reduction                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.15                  per share                                                      |   |   | 525,000 |   |   |   | 525 |   |   |   | 78,225 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 78,750 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                  of Deferred Charges                                    |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 100,625 |   |   |   |   |   |   |   | 100,625 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed                  services                                                |   |   |   |   |   |   |   |   |   |   | 41,350 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 41,350 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss) for the six months                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (356,233 | ) |   |   | (356,233 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  Nov 30,  2007 (Unaudited)**                    |   |   | 37,454,353 |   |   | $ | 37,455 |   |   | $ | 617,690 |   |   |   | - |   |   | $ | - |   |   | $ | (22,354 | ) |   | $ | (947,957 | ) |   | $ | (315,166 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS** |

----

**FUEGO            ENTERTAINMENT, INC.**

**NOTES            TO FINANCIAL STATEMENTS**

| **1.** | **BASIS                  OF PRESENTATION** |
|--------|--------------------------------------------|

| **2.** | **NATURE                  OF BUSINESS** |
|--------|-----------------------------------------|

| **3.** | **SIGNIFICANT                  ACCOUNTING POLICIES** |
|--------|------------------------------------------------------|

***GOING        CONCERN***

| **4.** | **RELATED                  PARTY TRANSACTIONS** |
|--------|-------------------------------------------------|

|   | · | Ciocan                  is an entertainment company, owned by our President/CEO, that creates                  products for the Latino Market worldwide and anticipates using us to                  market, promote and commercialize some of its products (music,                  films,                  documentaries, artist, etc) for the Anglo and international                  markets.  During                  the six months ended November 30, 2007, Ciocan did not advance                  any funds                  leaving a balance owing as of November 30, 2007, of $24,800, and                  accrued                  interest of $4,314. In addition Ciocan was owed a total of $40,798                  for                  music royalties as of November 30, 2007.  There were no music                  royalties accrued to Ciocan during the current three month period,                  and                  there were $2,844 of music royalties accrued for the six months                  ended                  November 30, 2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**FUEGO              ENTERTAINMENT, INC.**

**NOTES              TO FINANCIAL STATEMENTS**

| **4.** | **RELATED                  PARTY TRANSACTIONS***-                  continued* |
|--------|-------------------------------------------------------------------------------|

|   | · | Our                  President/CEO is owed $296,143 as of November 30, 2007 for cash                  advances                  to the company for a variety of general and administrative expenses                  and                  the development of TV station programming. During the six months                  ended                  November 30, 2007 he advanced $74,733 and was repaid $17,682. No                  interest                  was paid on this date which accrues at 15 percent per annum and                  is payable                  on June 1, 2008. Accrued interest totaled $36,804 as of November                  30,                  2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fees                  incurred in the six month period ended November 30, 2007 for a                  related                  party accounting firm totaled $38,199. The accounting firm received                  525,000 shares in full payment of outstanding invoices for accounting,                  tax                  and financial statement preparation services since September,                  2006.  There was no amount owed to the firm as of November 30,                  2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **INCOME                  TAXES** |
|--------|-----------------------------------|

|                                               |   | For                  the six months ended November 30, 2007 |     |   | For the                  six months ended November 30, 2006 |   |
|----------------------------------------------------|--------|-------------------------------------------------------------|----------|--------|----------------------------------------------------------------------------|--------|
|                                               |   |                                                        |     |   |                                                                       |   |
| Current                  tax expense (benefit):    |   |                                                        |     |   |                                                                       |   |
| Federal                  tax at 34% statutory rate |   | $                                                           | (121,119 | )      |                                                                       | $      | (85,286 | ) |
| Benefit                  of surtax exemptions      |   |                                                        | -0-      |   |                                                                       |   | 59,139 |   |
| Valuation                  allowance               |   |                                                        | 107,060  |   |                                                                       |   | (1,571 | ) |
| Permanent                  differences             |   |                                                        | 14,059   |   |                                                                       |   | 8,292 |   |
| Income                  tax expense                |   | $                                                           | -0-      |   |                                                                       | $      | (19,426 | ) |

|                                |   | For                  the six months                  ended November 30, 2007 |   |   | For the                  sixmonths                  ended November 30, 2006 |   |
|-------------------------------------|--------|-----------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|
|                                |   |                                                                              |   |   |                                                                                  |   |
| Current                             |   | $                                                                                 | -0-    |   |                                                                                  | $      | (19,426 | ) |
| Deferred                            |   |                                                                              | -0-    |   |                                                                                  |   | -0- |   |
| Income                  tax expense |   | $                                                                                 | -0-    |   |                                                                                  | $      | (19,426 | ) |

----

**FUEGO            ENTERTAINMENT, INC.**

**NOTES              TO FINANCIAL STATEMENTS**

| **5.** | **INCOME                  TAXES***- continued* |
|--------|------------------------------------------------|

|                                                   |   | For                  the six months                  ended November 30, 2007 |     |   | For the                  sixmonths                  ended November 30, 2006 |   |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------|----------|--------|----------------------------------------------------------------------------------|--------|
| Deferred                  tax asset, beginning of year |   | $                                                                                 | -0-      |   |                                                                             | $      | -0- |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
| Net                  operating loss carryforward       |   |                                                                              | 98,806   |   |                                                                             |   |   |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
|  Allowance                  for doubtful accounts |   |                                                                              | -0-      |   |                                                                             |   | -0- |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
| Interest                  Expense related party        |   |                                                                              | 7,980    |   |                                                                             |   | -0- |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
|  Depreciation                                     |   |                                                                              | (274     | )      |                                                                             |   | 1,571 |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
| State                  income taxes                    |   |                                                                              | -0-      |   |                                                                             |   | -0- |   |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
|  Valuation                  allowance             |   |                                                                              | (107,060 | )      |                                                                             |   | (1,571 | ) |
|                                                   |   |                                                                              |     |   |                                                                             |   |   |   |
|  Deferred                  tax asset, end of year |   | $                                                                                 | -0-      |   |                                                                             | $      | -0- |   |

| **6.** | **CONTRIBUTED                  CAPITAL** |
|--------|------------------------------------------|

| **7.** | **DEFERRED                  CHARGE** |
|--------|--------------------------------------|

| **8.** | **ISSUANCE                  OF RESTRICTED COMMON STOCK** |
|--------|----------------------------------------------------------|

| **9.** | **SUBSEQUENT                  EVENTS** |
|--------|----------------------------------------|

----

**Item      2. Management's Discussion and Analysis or Plan of      Operation**

**MANAGEMENT'S        DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF        OPERATION**

**PLAN        OF OPERATION**

----

**Item        2. Management's Discussion and Analysis or Plan of Operation**
*-        continued*

| -- | Latin                  Billboard Awards 2004: Más Flow -- "Tropical Album of the Year /                  Duo                  or Group;"  |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| -- | Latin                  Billboard Awards 2004: Más Flow -- "Tropical Album of the Year                  / New                  Generation;"  |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -- | Reggaeton                  People's Choice Awards 2004: Luny Tunes -- "Producer of                  the Year";  |
|----|---------------------------------------------------------------------------------------------------------------------------|

| -- | Latin                  Grammy Awards 2005: Barrio Fino -- "Best Album of the Year                  / Urban"                  (as producers);  |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| -- | Reggaeton                  People's Choice Awards 2005: Luny Tunes -- "Producer of                  the Year;"  |
|----|---------------------------------------------------------------------------------------------------------------------------|

| -- | Reggaeton                  People's Choice Awards 2005: Mayor Que Yo -- "Best Song of                  the Year;"  |
|----|------------------------------------------------------------------------------------------------------------------------------|

| -- | Reggaeton                  People's Choice Awards 2005: Mas Flow 2 -- Best Album of                  the Year;"  |
|----|----------------------------------------------------------------------------------------------------------------------------|

| -- | Latin                  Billboard Awards 2006: Luny Tunes -- "Producer of the Year;"  |
|----|-------------------------------------------------------------------------------------------|

| -- | Premios                  Lo Nuestro Awards 2006: Mas Flow 2 -- "Best Album of the Year                  / Urban                  Category;" and,  |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -- | Musica                  Furia 2007: Luny Tunes -- "Reggaeton Producers of the                  Year |
|----|-----------------------------------------------------------------------------------------------------|

**QUARTER        ENDED NOVEMBER 30, 2007**

----

**Item        2. Management's Discussion and Analysis or Plan of Operation**
*-        continued*

**QUARTER        ENDED NOVEMBER 30, 2007 COMPARED TO THE QUARTER ENDED NOVEMBER 30,        2006**

----

**Item        2. Management's Discussion and Analysis or Plan of Operation**
*-        continued*

**SIX        MONTHS ENDED NOVEMBER 30, 2007 COMPARED TO THE SIX MONTHS ENDED NOVEMBER        30,        2006**

**OFF-BALANCE        SHEET ARRANGEMENTS**

**MATERIAL        COMMITMENTS**

**LIQUIDITY        AND CAPITAL RESOURCES**

----

**Item        3. Controls and Procedures**

**PART          II: OTHER INFORMATION**

**Item          1. Legal Proceedings**

**Item          2. Changes in Securities**

**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**

|                                                |                                                        |                                       |
|-----------------------------------------------------|-------------------------------------------------------------|--------------------------------------------|
|                                           |                                                   |                                  |
| Date: January                    22, 2008 | By:                                               | /s/ Hugo                    M. Cancio |
|                                                | Hugo                    M. Cancio                           |
|                                                | Title:                    Principal Executive Officer  |

|                                           |                                                              |                                       |
|------------------------------------------------|-------------------------------------------------------------------|--------------------------------------------|
|                                      |                                                         |                                  |
| Date: January                    22, 2008 | By:                                                     | /s/ Hugo                    M. Cancio |
|                                           | Hugo                    M. Cancio                                 |
|                                           | Title:  Principal                    Accounting Officer |

|                                           |                              |                                       |
|------------------------------------------------|-----------------------------------|--------------------------------------------|
|                                      |                         |                                  |
| Date: January                    22, 2008 | By:                     | /s/ Hugo                    M. Cancio |
|                                           | Hugo                    M. Cancio |
|                                           | Title: Director              |

----