----

**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              |   |

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|  PART                I:  |  FINANCIAL                INFORMATION                                                                                                                     |  Page |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                          |                                                                                                                                                           |       |
|  Item                1.  |  Financial                Statements:                                                                                                                     |  4    |
|                          |                                                                                                                                                           |       |
|                          |  Condensed                Balance Sheets February 28, 2007 (unaudited) and May 31,                2006                                                    |  4    |
|                          |                                                                                                                                                           |       |
|                          |  Unaudited                Condensed Statements of Operations for the three                and nine months ended February 28, 2007 and                2006 |  5    |
|                          |                                                                                                                                                           |       |
|                          |  Unaudited                Condensed Statements of Cash Flows for the nine                months ended February 28, 2007 and 2006                          |  6    |
|                          |                                                                                                                                                           |       |
|                          | Statement                  of Stockholders' (deficit) for the period from Inception                  to February 28, 2007 (unaudited)                          |  7    |
|                          |                                                                                                                                                           |       |
|                          |  Notes                to Financial Statements                                                                                                             |  8    |
|                          |                                                                                                                                                           |       |
|  Item                2.  |  Managements                Discussion and Analysis of Financial Condition and Plan of Operations                                                         |  12   |
|                          |                                                                                                                                                           |       |
|  Item                3.  |  Controls                and Procedures                                                                                                                   |  17   |
|                          |                                                                                                                                                           |       |
|  PART                II: |  OTHER                INFORMATION                                                                                                                         |  18   |
|                          |                                                                                                                                                           |       |
|  Item                1.  |  Legal                Proceedings                                                                                                                         |  18   |
|                          |                                                                                                                                                           |       |
|  Item                2.  |  Changes                in Securities                                                                                                                     |  18   |
|                          |                                                                                                                                                           |       |
|  Item                3.  |  Defaults                upon Senior Securities                                                                                                           |  18   |
|                          |                                                                                                                                                           |       |
|  Item                4.  |  Submission                of Matters for a Vote of Security Holders                                                                                      |  18   |
|                          |                                                                                                                                                           |       |
|  Item                5.  |  Other                Information                                                                                                                         |  18   |
|                          |                                                                                                                                                           |       |
|  Item                6.  |  Exhibits                and Reports on Form 8-K                                                                                                          |  18   |
|                          |                                                                                                                                                           |       |
|                          |  SIGNATURES                                                                                                                                               |  19   |

----

*This      Form 10-QSB contains forward-looking statements within the meaning of the "safe      harbor" provisions under Section 21E of the Securities Exchange Act of 1934.      We      use forward-looking statements in our description of our plans and objectives      for future operations and assumptions underlying these plans and objectives.      Forward-looking terminology includes the words "August," "expects," "believes,"      "anticipates," "intends," "projects," or similar terms, variations of such      terms      or the negative of such terms. These forward-looking statements are based on      management's current expectations and are subject to factors and uncertainties,      which could cause actual results to differ materially from those, described      in      such forward-looking statements. We expressly disclaim any obligation or      undertaking to release publicly any updates or revisions to any forward-looking      statements contained in this Form 10-QSB to reflect any change in our      expectations or any changes in events, conditions or circumstances on which      any      forward-looking statement is based. Factors, which could cause such results      to      differ materially from those described in the forward-looking statements, and      elsewhere,, are incorporated by reference into this Form 10-QSB.*

----

**PART          1: FINANCIAL INFORMATION**

|                                                                                                                               |   |   |                                      |   |   |                           |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------|--------|
| **FUEGO                    ENTERTAINMENT, INC.**                                                                                   |
| **BALANCE                    SHEETS**                                                                                              |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   | **February                    28,**  |   |   | **May                    31,** |   |
|                                                                                                                               |   |   | **2007**                                  |   |   | **2006**                       |   |
|                                                                                                                               |   |   | (unaudited)                          |   |   |                           |   |
| **ASSETS**                                                                                                                         |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| CURRENT                    ASSETS                                                                                                  |   |   |                                      |   |   |                           |   |
|     Cash                                                                                                       |   | $      | -                                         |   | $      | 152                            |   |
|     Account                    receivable-trade, less allowance                                                |   |   |                                      |   |   |                           |   |
|     of                    $11,833 and 0, respectively                                                          |   |   | 136,154                                   |   |   | 5,000                          |   |
|     Accrued                    federal Income Tax Refund Receivable                                            |   |   | 12,115                                    |   |   | -                              |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| Total                    Current Assets                                                                                            |   |   | 148,269                                   |   |   | 5,152                          |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| EQUIPMENT,                    less accumulated depreciation                                                                        |   |   |                                      |   |   |                           |   |
|     of                    $11,010 and $2,190, respectively                                                     |   |   | 42,407                                    |   |   | 33,531                         |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| OTHER                    ASSETS                                                                                                    |   |   |                                      |   |   |                           |   |
|     Production                    costs                                                                        |   |   | 100,739                                   |   |   | 93,431                         |   |
|     Logo,                    less accumulated amortization                                                     |   |   |                                      |   |   |                           |   |
|     of                    $1,035 and $630, respectively                                                        |   |   | 1,665                                     |   |   | 2,070                          |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| Total                    Other Assets                                                                                              |   |   | 102,404                                   |   |   | 95,501                         |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   | $      | 293,080                                   |   | $      | 134,184                        |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| **LIABILITIES                    AND STOCKHOLDERS' (DEFICIT)**                                                                     |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| CURRENT                    LIABILITIES                                                                                             |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|     Accounts                    payable                                                                        |   | $      | 25,834                                    |   | $      | 9,359                          |   |
|     Accounts                    payable-related party                                                          |   |   | 29,584                                    |   |   | 23,642                         |   |
|     Other                    Liabilities                                                                       |   |   | 3,217                                     |   |   | 1,630                          |   |
|     Income                    taxes payable                                                                    |   |   | 15,985                                    |   |   | 25,702                         |   |
|     Deferred                    revenue                                                                        |   |   | 6,659                                     |   |   | 6,659                          |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|     Total                    Current Liabilities                                                               |   |   | 81,279                                    |   |   | 66,992                         |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|     Long-Term                    Debt                                                                          |   |   |                                      |   |   |                           |   |
|     Notes                    payable - Related Parties                                                         |   |   | 260,617                                   |   |   | -                              |   |
|     Accrued                    Interest - Related Parties                                                      |   |   | 8,480                                     |   |   | -                              |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|     Total                    Liabilities                                                                       |   |   | 350,376                                   |   |   | 66,992                         |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| COMMITMENTS                    AND CONTINGENCIES                                                                                   |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| STOCKHOLDERS'                    DEFICIT                                                                                           |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| Common                      stock, par value $.001, 75,000,000 shares authorized, 35,609,441                      outstanding |   |   |                                      |   |   |                           |   |
| February                    28; 34,959,562 outstanding May 31                                                                      |   |   | 35,610                                    |   |   | 34,960                         |   |
| Paid                    in capital                                                                                                 |   |   | 279,426                                   |   |   | 118,398                        |   |
| Retained                    earnings(deficit)                                                                                      |   |   | (372,332                                  | )      |   | (86,166                        | )      |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| Total                    Stockholders' (Deficit)                                                                                   |   |   | (57,296                                   | )      |   | 67,192                         |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
|                                                                                                                               |   | $      | 293,080                                   |   | $      | 134,184                        |   |
|                                                                                                                               |   |   |                                      |   |   |                           |   |
| **SEE                    ACCOMPANYING NOTES TO FINANCIAL                    STATEMENTS**                                           |

----

| **FUEGO                  ENTERTAINMENT, INC**                                         |
|--------------------------------------------------------------------------------------------|
| **STATEMENTS                  OF OPERATIONS**                                         |
| **(unaudited)**                                                                       |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | **For                  The**  |   |   | **For                  The** |   |
|                                                                                       |   |   |  **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                       |   |   | **February                  28, 2007**  |   |   | **February                  28, 2006** |   |   | **February                  28, 2007** |   |   | **February                  28, 2006** |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Misc.                  Revenue                                                             |   | $ | - |   | $ | - |   | $ | - |   | $ | 19 |   |
| Music                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Music                  Sales,net of estimated returns                                      |   |   | 95,466 |   |   | - |   |   | 135,254 |   |   | - |   |
| Filming                                                                                    |   |   | - |   |   | 72,872 |   |   | 30,550 |   |   | 78,272 |   |
| Consulting                                                                                 |   |   | - |   |   | - |   |   | 6,800 |   |   | 13,400 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  Revenues                                                            |   |   | 95,466 |   |   | 72,872 |   |   | 172,604 |   |   | 91,691 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS                  AND EXPENSES                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Music                  Royalties - Related Party                                           |   |   | 25,123 |   |   | - |   |   | 35,972 |   |   | - |   |
| Cost                  of revenue - Filming                                                 |   |   | - |   |   | 8,800 |   |   | 5,000 |   |   | 8,800 |   |
| Cost                  of Affiliation Agreements                                            |   |   | 50,000 |   |   |   |   |   | 50,000 |   |   |   |   |
| Selling,                  general and administrative:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                  - Stock Based and Contributed                                |   |   | 20,470 |   |   | - |   |   | 95,728 |   |   | - |   |
| Other                                                                                      |   |   | (4,969 | ) |   | 22,745 |   |   | 178,036 |   |   | 82,478 |   |
| TV                  Development                                                            |   |   | - |   |   | - |   |   | 97,146 |   |   | - |   |
| Impairment                  of investmest                                                  |   |   | - |   |   | - |   |   | - |   |   | 57,400 |   |
| Interest                  Expense                                                          |   |   | 8,603 |   |   |   |   |   | 9,494 |   |   |   |   |
| Depreciation                  and amortization                                             |   |   | 3,397 |   |   | (379 | ) |   | 9,225 |   |   | 1,127 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  costs and expenses                                                  |   |   | 102,624 |   |   | 31,166 |   |   | 480,601 |   |   | 149,805 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (Loss) before income tax                                           |   |   | (7,158 | ) |   | 41,706 |   |   | (307,997 | ) |   | (58,114 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax (benefit)                                                      |   |   | (2,406 | ) |   | 8,057 |   |   | (21,832 | ) |   | (4,339 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  (LOSS)                                                                |   | $ | (4,752 | ) | $ | 33,649 |   | $ | (286,165 | ) | $ | (53,775 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS                  (LOSS) PER SHARE - BASIC                                         |   |   | * |   |   | * |   |   | (0.01 | ) |   | * |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMMON                  SHARES OUTSTANDING - BASIC                                         |   |   | 35,579,774 |   |   | 34,954,054 |   |   | 35,493,763 |   |   | 29,209,602 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *                  less than $.01 per share                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS** |

----

| **FUEGO                  ENTERTAINMENT, INC.**                                       |
|--------------------------------------------------------------------------------------|
| **STATEMENTS                  OF CASH FLOWS**                                        |
| **(unaudited)**                                                                      |
|                                                                                 |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |
|                                                                                 |   | **For                  The** |   | **For                  The** |   |
|                                                                                 |   | **Nine                  Months Ended** |   | **Nine                  Months Ended** |   |
|                                                                                 |   | **February                  28, 2007** |   | **February                  28, 2006** |   |
|                                                                                 |   |   |   | (restated) |   |
| **OPERATING                  ACTIVITIES**                                            |   |   |   |   |   |
| Net                  income (loss)                                                   |   | $                  (286,165) |   | $                  (53,775) |   |
| Adjustments                  to reconcile net income to net cash provided by         |   |   |   |   |   |
| operating                  activities                                                |   |   |   |   |   |
| Contributed                  services                                                |   | 40,339 |   | 27,264 |   |
| Impairment                  loss on investment                                       |   | - |   | 57,400 |   |
| Depreciation                  and amortization                                       |   | 9,225 |   | 1,127 |   |
| Stock                  Based Compensation                                            |   | 95,639 |   | - |   |
| Changes                  in operating assets and liabilities                         |   |   |   |   |   |
| Accounts                  receivable                                                 |   | (131,154) |   | (300) |   |
| Accrued                  federal Income Tax Refund Receivable                        |   | (12,115) |   | - |   |
| Deferred                  tax asset                                                  |   | - |   | (5,994) |   |
| Other                  current asset                                                 |   | - |   | 51 |   |
| Accounts                  payable                                                    |   | 22,417 |   | 21,455 |   |
| Income                  taxes payable                                                |   | (9,717) |   | 1,655 |   |
| Other                  current liabilities                                           |   | 1,586 |   | 1,120 |   |
| Deferred                  revenue                                                    |   | - |   | 5,617 |   |
| Production                  costs                                                    |   | (7,308) |   | (45,079) |   |
| **NET                  CASH (USED BY) OPERATING ACTIVITIES**                         |   | (277,253) |   | 10,541 |   |
|                                                                                 |   |   |   |   |   |
| **INVESTING                  ACTIVITIES**                                            |   |   |   |   |   |
| Purchased                  of equipment                                              |   | (17,696) |   | - |   |
| **NET                  CASH (USED BY) INVESTING ACTIVITIES**                         |   | (17,696) |   | - |   |
|                                                                                 |   |   |   |   |   |
| **FINANCING                  ACTIVITIES**                                            |   |   |   |   |   |
| Proceeds                  from sale of common stock                                  |   | 25,700 |   | 56,096 |   |
| Deferred                  financing costs                                            |   | - |   | (51,186) |   |
| Proceeds                  from (to) - Related Parties                                |   | 260,617 |   | (178) |   |
| Accrued                  Interest - Related Parties                                  |   | 8,480 |   |   |   |
| **NET                  CASH PROVIDED BY FINANCING ACTIVITIES**                       |   | 294,797 |   | 4,732 |   |
|                                                                                 |   |   |   |   |   |
| **NET                  DECREASE IN CASH**                                            |   | (152) |   | 15,273 |   |
|                                                                                 |   |   |   |   |   |
| **CASH,                  BEGINNING OF PERIOD**                                       |   | 152 |   | 7,479 |   |
|                                                                                 |   |   |   |   |   |
| **CASH,                  END OF PERIOD**                                             |   | $                  - |   | $                  22,752 |   |
|                                                                                 |   |   |   |   |   |  |   |
|                                                                                 |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS** |

----

| **FUEGO                  ENTERTAINMENT, INC.**                                       |
|--------------------------------------------------------------------------------------|
| **STATEMENTS                  OF STOCKHOLDERS' (DEFICIT)**                           |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   | **Subscriptions**  |   |   | **Retained** |   |   |   |   |
|                                                                                 |   |   | **Common                  Stock**  |   |   | **Paid-in** |   |   | **Common** |   |   | **Amount** |   |   | **Earnings** |   |   |   |   |
|                                                                                 |   |   | **Shares**  |   |   | **Amount** |   |   | **Capital** |   |   | **Stock** |   |   | **Receivable** |   |   | **(Deficit** | **)** |   | **Total** |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  at inception**                                           |   |   | - |   | $ | - |   | $ | - |   |   | - |   | $ | - |   | $ | - |   | $ | - |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.001                  per share                                                     |   |   | 7,772,670 |   |   | 7,773 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,773 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.006                  per share                                                     |   |   | 5,500,000 |   |   | 5,500 |   |   | 24,350 |   |   |   |   |   |   |   |   |   |   |   | 29,850 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  stock subscribed                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 21,262,530                  shares @ $.001 per share                                 |   |   |   |   |   |   |   |   |   |   |   | 21,262 |   |   | (21,262 | ) |   |   |   |   | - |   |
| 295,450                  shares @ $.009 per share                                    |   |   |   |   |   |   |   |   |   |   |   | 2,955 |   |   | (2,955 | ) |   |   |   |   | - |   |
| 105,874                  shares @ $.179 per share                                    |   |   |   |   |   |   |   |   |   |   |   | 19,057 |   |   | (19,057 | ) |   |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed                  services                                                |   |   |   |   |   |   |   |   | 21,708 |   |   |   |   |   |   |   |   |   |   |   | 21,708 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 39,489 |   |   | 39,489 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **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 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **(unaudited)**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock for                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.18                  per share                                                      |   |   | 142,778 |   |   | 143 |   |   | 25,557 |   |   |   |   |   |   |   |   |   |   |   | 25,700 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  based compensation                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $.18                  per share                                                      |   |   | 418,101 |   |   | 418 |   |   | 74,840 |   |   |   |   |   |   |   |   |   |   |   | 75,258 |   |
| $.23                  per share                                                      |   |   | 89,000 |   |   | 89 |   |   | 20,292 |   |   |   |   |   |   |   |   |   |   |   | 20,381 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed                  services                                                |   |   |   |   |   |   |   |   | 40,339 |   |   |   |   |   |   |   |   |   |   |   | 40,339 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss) for the nine months                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (286,165 | ) |   | (286,165 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  February 28, 2007, (unaudited)**                         |   |   | 35,609,441 |   | $ | 35,610 |   | $ | 279,426 |   |   | - |   | $ | - |   | $ | (372,331 | ) | $ | (57,295 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **SEE                  ACCOMPANYING NOTES TO FINANCIAL                  STATEMENTS** |

----

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

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

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

***GOING        CONCERN***

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

|   | · | For                  the nine month period ended February 28, 2007, Ciocan advanced                  us a total                  of $32,300 for accounting, legal and other fees, and was owed a                  total of                  $30,970 for music royalties. As of February 28, 2007 Ciocan was                  owed                  $63,270, which is included in Long Term Debt, Notes payable-related                  parties. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For                  the nine month period ended February 28, 2007, Mr. Cancio advanced                  to and                  is owed by the Company a total of $197,348 for audit fees, operating                  expenses, TV development expenses, and the $50,000 advanced for                  the                  purchase of affiliation agreements from VSCN which acquisition                  is                  presently being finalized. This amount is included in Long-Term                  Debt,                  Notes payable-related parties as of February 28,                  2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fees                  incurred in the nine month period end February 28, 2007 for a related                  party accounting firm totaled $23,303. The total amount owed to                  the firm                  as of November 30, 2006 was $28,244. which is included in the category,                  accounts payable-related parties, in the accompanying balance                  sheet. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                                         |   | **For                  the nine****months                  ended Feb 28, 2007** |     | **For                  the nine****months                  ended Feb 28, 2006** |   |
|--------------------------------------------------------------|--------|---------------------------------------------------------------------------------|----------|---------------------------------------------------------------------------------|--------|
|                                                         |   |                                                                            |     |                                                                            |   |
| Current                  tax expense:                        |   |                                                                            |     |                                                                            |   |   |   |
| Federal                  tax at statutory rates              |   | $                                                                               | (104,719 | )                                                                               | $      | (19,759 | ) |
| State                  income taxes less federal tax benefit |   |                                                                            | 0        |                                                                            |   | 0 |   |
| Benefit                  of surtax exemptions                |   |                                                                            | 73,879   |                                                                            |   | 5,495 |   |
| Adjustment                  to 5/31/06 tax liability         |   |                                                                            | 9,717    |                                                                            |   | 0 |   |
| Valuation                  allowance                         |   |                                                                            | 4,335    |                                                                            |   | 0 |   |
| Permanent                  differences                       |   |                                                                            | 14,382   |                                                                            |   | 9,925 |   |
| Income                  tax expense                          |   | $                                                                               | (2,406   | )                                                                               | $      | (4,339 | ) |

|                                |   |   | **For                  the nine months ended Feb 28, 2007**  |   |   | **For                  the nine****months                  ended Feb 28, 2006** |   |
|-------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|
|                                |   |   |                                                              |   |   |                                                                            |   |
| Current                             |   | $      | (2,406                                                            | )      |   | 5,030                                                                           |   |
| Deferred                            |   |   | -                  0 -                                            |   |   | (9,369                                                                          | )      |
| Income                  tax expense |   | $      | (2,406                                                            | )      | $      | (4,339                                                                          | )      |

----

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

|                                                         |   |   | **For                  the nine**** months                  ended**** Feb                  28, 2007**  |   |   | **For                  the nine****months                  ended**** Feb                  28, 2006** |   |
|--------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------|--------|
|                                                         |   |   |                                                                                                                  |   |   |                                                                                                      |   |
| Allowance                  for Doubtful Accounts             |   |   | (1,705                                                                                                                | )      |   | 0                                                                                                         |   |
| Interest                  Expense to Related Parties         |   |   | (2,877                                                                                                                | )      |   | 0                                                                                                         |   |
| Impairment                  of Investment                    |   |   |                                                                                                                  |   |   | 9,253                                                                                                     |   |
| Depreciation                                                 |   |   | 248                                                                                                                   |   |   | 116                                                                                                       |   |
| Valuation                  allowance                         |   |   | 4,334                                                                                                                 |   |   | 0                                                                                                         |   |
| Deferred                  tax asset (liability), end of year |   |   | **-0-**                                                                                                               |   |   | 9,369                                                                                                     |   |

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

| **7.** | **ISSUANCE                  OF RESTRICTED COMMON STOCK** |
|--------|----------------------------------------------------------|

----

| **8.** | **NOTES                  PAYABLE - RELATED PARTIES** |
|--------|------------------------------------------------------|

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

**Gross        sales of CDs after February 28, 2007 were approximately $75,000 representing        approximately 7,000 CDs.**

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**ITEM        3. CONTROLS AND        PROCEDURES**

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**ITEM        3. CONTROLS AND PROCEDURES - continued**

**PART          II: OTHER INFORMATION**

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**SIGNATURES**

**FUEGO          ENTERTAINMENT, INC.**

|                                         |                                                        |                                       |
|----------------------------------------------|-------------------------------------------------------------|--------------------------------------------|
|                                    |                                                   |                                  |
| Date: April                    23, 2007 | By:                                               | /s/ Hugo                    M. Cancio |
|                                         | Hugo                    M. Cancio                           |
|                                         | Title:                    Principal Executive Officer  |

|                                         |                                                              |                                       |
|----------------------------------------------|-------------------------------------------------------------------|--------------------------------------------|
|                                    |                                                         |                                  |
| Date: April                    23, 2007 | By:                                                     | /s/ Hugo                    M. Cancio |
|                                         | Hugo                    M. Cancio                                 |
|                                         | Title:  Principal                    Accounting Officer |

|                                             |                              |                                       |
|--------------------------------------------------|-----------------------------------|--------------------------------------------|
|                                        |                         |                                  |
| Date: April                    23 2007 | By:                     | /s/ Hugo                    M. Cancio |
|                                             | Hugo                    M. Cancio |
|                                             | Title: Director              |

----