----

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM          10-QSB/A**

**First          Amendment**

**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***

***MUSIC          REVENUES AND COSTS***

| **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.** | **COMPOSITION                  OF REVENUES** |
|--------|----------------------------------------------|

| **10.** | **SUBSEQUENT                  EVENTS** |
|---------|----------------------------------------|

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

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION**

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION - continued**

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION - continued**

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION - continued**

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION - continued**

----

**ITEM      2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS      OF OPERATION - continued**

**ITEM      3. CONTROLS AND PROCEDURES**

----

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

**PART      II: OTHER INFORMATION**

31.1      Certificate of Principal Executive      Officer

31.2      Certificate of Principal Accounting      Officer

32.1 Certification      Pursuant to 18 U.S.C. 1350, as      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002

32.2 Certification      Pursuant to 18 U.S.C. 1350, as      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002

----

**SIGNATURES**

**FUEGO      ENTERTAINMENT, INC.**

|                                      |                                                                       |                                     |
|-------------------------------------------|----------------------------------------------------------------------------|------------------------------------------|
|                                 |                                                                  |                                |
| Date: July                  31, 2007 | By:                                                              | /s/ Hugo                  M. Cancio |
|                                      | Hugo                  M. Cancio                                            |
|                                      | Title:                  Principal Executive                  Officer  |

|                                      |                                                            |                                     |
|-------------------------------------------|-----------------------------------------------------------------|------------------------------------------|
|                                 |                                                       |                                |
| Date: July                  31, 2007 | By:                                                   | /s/ Hugo                  M. Cancio |
|                                      | Hugo                  M. Cancio                                 |
|                                      | Title:  Principal                  Accounting Officer |

|                                           |                            |                                     |
|------------------------------------------------|---------------------------------|------------------------------------------|
|                                      |                       |                                |
| Date: July                  31, 2007 | By:                   | /s/ Hugo                  M. Cancio |
|                                           | Hugo                  M. Cancio |
|                                           | Title: Director            |

----