----

----

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

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| MASS HYSTERIA ENTERTAINMENT COMPANY, INC.         |
|---------------------------------------------------|
| (Exact name of registrant as specified in Charter |

| Nevada                                                         |   | 000-53739             |   | 20-3107499                        |
|----------------------------------------------------------------|--------|-----------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (Commission File No.) |   | (IRS Employee Identification No.) |

----

|                           |                                                                                        | Page   |   |
|--------------------------------|---------------------------------------------------------------------------------------------|--------|--------|
| PART I-- FINANCIAL INFORMATION |                                                                                        |   |   |
|                           |                                                                                        |   |   |   |
| Item 1.                        | Financial Statements                                                                        |   |   | 1 |   |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |   | 9 |   |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                  |   |   | 11 |   |
| Item 4T                        | Control and Procedures                                                                      |   |   | 11 |   |
|                           |                                                                                        |   |   |   |   |
| PART II-- OTHER INFORMATION    |                                                                                        |   |   |   |
|                           |                                                                                        |   |   |   |   |
| Item 1                         | Legal Proceedings                                                                           |   |   | 12 |   |
| Item 1A                        | Risk Factors                                                                                |   |   | 12 |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   |   | 12 |   |
| Item 3.                        | Defaults Upon Senior Securities                                                             |   |   | 12 |   |
| Item 4.                        | Submission of Matters to a Vote of Security Holders                                         |   |   | 12 |   |
| Item 5.                        | Other Information                                                                           |   |   | 12 |   |
| Item 6.                        | Exhibits                                                                                    |   |   | 12 |   |
|                           |                                                                                        |   |   |   |   |
| SIGNATURES                     |                                                                                        |   | 13     |   |

----

|                                                                                                                                                                           |   | February 28, 2010 |       |   | November 30, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                                |   | (Unaudited)       |       |   | (Audited)         |   |
| CURRENT ASSETS                                                                                                                                                                      |   |              |       |   |              |   |
| Cash                                                                                                                                                                                |   | $                 | 137,773    |   |              | $      | 160 |   |
| Subscription receivable                                                                                                                                                             |   |              | -          |   |              |   | 200,000 |   |
| Total Current Assets                                                                                                                                                                |   |              | 137,773    |   |              |   | 200,160 |   |
|                                                                                                                                                                                |   |              |       |   |              |   |   |   |
| Intangible assets, net                                                                                                                                                              |   |              | 3,050      |   |              |   | 3,140 |   |
|      Other assets                                                                                                                                          |   |              | 9,700      |   |              |   | 9,700 |   |
|      TOTAL ASSETS                                                                                                                                          |   | $                 | 150,523    |   |              | $      | 213,000 |   |
|                                                                                                                                                                           |   |              |       |   |              |   |   |   |
| LIABILITIES & STOCKHOLDERS’ DEFICIT                                                                                                                                  |   |              |       |   |              |   |   |   |
|                                                                                                                                                                           |   |              |       |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                 |   |              |       |   |              |   |   |   |
| Accounts payable                                                                                                                                                                    |   | $                 | 5,111      |   |              | $      | 5,111 |   |
| Accounts payable – related party                                                                                                                                              |   |              | 6,150      |   |              |   | 6,150 |   |
| Accrued liabilities                                                                                                                                                                 |   |              | 57,798     |   |              |   | 5,620 |   |
| Common stock liability (Note 6)                                                                                                                                                     |   |              | 200,000    |   |              |   | 200,000 |   |
|                                                                                                                                                                                |   |              |       |   |              |   |   |   |
| Total current liabilities                                                                                                                                                           |   |              | 269,059    |   |              |   | 216,881 |   |
|                                                                                                                                                                                |   |              |       |   |              |   |   |   |
| Convertible long- term debt – related party (Note 4)                                                                                                                          |   |              | 338,362    |   |              |   | 305,430 |   |
| TOTAL LIABILITIES                                                                                                                                                                   |   |              | 607,421    |   |              |   | 522,311 |   |
|                                                                                                                                                                                |   |              |       |   |              |   |   |   |
| Commitments and contingencies                                                                                                                                                       |   |              | -          |   |              |   | - |   |
|                                                                                                                                                                                |   |              |       |   |              |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                                                                                                                         |   |              |       |   |              |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding                                                                                   |   |              | -          |   |              |   | - |   |
| Common stock, $0.001 par value, 140,000,000 shares authorized, 73,797,952 and 68,530,952 shares issued and outstanding as of February 28, 2010 and November 30, 2009, respectively. |   |              | 73,798     |   |              |   | 68,531 |   |
| Additional paid-in capital                                                                                                                                                          |   |              | 4,730,034  |   |              |   | 4,589,816 |   |
| Deficit accumulated during the development stage                                                                                                                                    |   |              | (5,260,730 | )      |              |   | (4,967,658 | ) |
|                                                                                                                                                                           |   |              |       |   |              |   |   |   |
| TOTAL STOCKHOLDERS’ DEFICIT                                                                                                                                                   |   |              | (456,898   | )      |              |   | (309,311 | ) |
| TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT                                                                                                                                 |   | $                 | 150,523    |   |              | $      | 213,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three Months Ended February 28, |       |   | For the Period from August 5, 2009 (Inception) to   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010                            |       |   | 2009                                                          |   |   | February 28, 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |
| Sales revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                               | -          |   |                                                          |   | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| General and administrative, including share-based compensation of $90,217 and $0 for the three months ended February 28, 2010 and 2009, respectively; and $247,797 for the period from Inception to February 28, 2010.                                                                                                                                                                                                                                                                                      |   |                            | 284,489    |   |                                                          |   | - |   |   |   |     679,478 |   |
| Selling expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                            | 3,949      |   |                                                          |   | - |   |   |   | 15,740 |   |
| Total operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                            | 288,438    |   |                                                          |   | - |   |   |   | 695,218 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Other income (expenses):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
|      Interest expense                                                                            |   |                            | (4,634     | )      |                                                          |   | - |   |   |   | (8,634 | ) |
| Total other income and expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                            | (4,634     | )      |                                                          |   | - |   |   |   | (8,634 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Net loss from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                            | (293,072   | )      |                                                          |   | - |   |   |   | (703,852 |   |
| Net loss from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            | -          |   |                                                          |   | (297,573 | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                               | (293,072   | )      |                                                          | $      | (297,573 | ) |   | $ | (703,852 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Basic and diluted loss from continuing operations per share                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                               | (0.00      | )      |                                                          | $      | - |   |   |   |   |   |
| Basic and diluted loss from discontinued operations per share                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                               | -          |   |                                                          | $      | (0.02 | )  |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                            |       |   |                                                          |   |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            | 70,999,841 |   |                                                          |   | 12,367,500 |   |   |   |   |   |

----

|                                                                                      |   | Common Shares |       |   | Common Stock at Par Value |   |   | Additional Paid-in Capital |   |   | Deficit Accumulated During the Development Stage |   |   | Total  |       |
|-------------------------------------------------------------------------------------------|--------|---------------|------------|--------|---------------------------|--------|--------|----------------------------|--------|--------|--------------------------------------------------|--------|--------|--------|------------|
|                                                                                      |   |          |       |   |                      |   |   |                       |   |   |                                             |   |   |   |       |
| Balances at August 5, 2009                                                                |   |          | 25,013,500 |   |                      |   | 25,014 |                       |   |   | 4,468,253                                        |   |   |   | (2,915,639 | )  |   |   | 1,577,628 |   |
| Shares issued in recapitalization                                                         |   |          | 42,015,452 |   |                      |   | 42,015 |                       |   |   | (42,015                                          | )      |   |   | -          |   |   |   | - |   |
| Contribution to capital                                                                   |   |          | -          |   |                      |   | -      |                       |   |   | 7,500                                            |   |   |   | -          |   |   |   | 7,500 |   |
| Shares issued for services:                                                               |   |          |       |   |                      |   |   |                       |   |   |                                             |   |   |   |       |   |   |   |   |   |
| on August 24, 2009 at $0.31 per share                                                     |   |          | 200,000    |   |                      |   | 200    |                       |   |   | 61,800                                           |   |   |   | -          |   |   |   | 62,000 |   |
| on September 29, 2009 at $0.43 per share                                                  |   |          | 100,000    |   |                      |   | 100    |                       |   |   | 42,900                                           |   |   |   | -          |   |   |   | 43,000 |   |
| on October 6, 2009 at $0.42 per share                                                     |   |          | 100,000    |   |                      |   | 100    |                       |   |   | 41,900                                           |   |   |   | -          |   |   |   | 42,000 |   |
| on October 16, 2009 at $0.29 per share                                                    |   |          | 2,000      |   |                      |   | 2      |                       |   |   | 578                                              |   |   |   | -          |   |   |   | 580 |   |
| on November 29, 2009 at $0.10 per share                                                   |   |          | 100,000    |   |                      |   | 100    |                       |   |   | 9,900                                            |   |   |   |       |   |   |   | 10,000 |   |
| Stock issued for cash, November 30, 2009 at $0.20 per- share (Note 6)                     |   |          | 1,000,000  |   |                      |   | 1,000  |                       |   |   | (1,000                                           | )      |   |   | -          |   |   |   | - |   |
| Net loss                                                                                  |   |          | -          |   |                      |   | -      |                       |   |   | -                                                |   |   |   | (2,052,019 | ) |   |   | (2,052,019 | ) |
| Balances at November 30, 2009                                                             |   |          | 68,530,952 |   |                      | $      | 68,531 |                       |   | $      | 4,589,816                                        |   |   | $      | (4,967,658 | ) |   | $ | (309,311 | ) |
| Shares issued for services:                                                               |   |          |       |   |                      |   |   |                       |   |   |                                             |   |   |   |       |   |   |   |   |   |
|         On December 10, 2009 at $0.10 per share        |   |          | 152,000    |   |                      |   | 152    |                       |   |   | 15,048                                           |   |   |   | -          |   |   |   | 15,200 |   |
| On January 10, 2010 at $0.07 per share                                                    |   |          | 20,000     |   |                      |   | 20     |                       |   |   | 1,380                                            |   |   |   | -          |   |   |   | 1,400 |   |
| On January 28, 2010 at $0.18 per share                                                    |   |          | 50,000     |   |                      |   | 50     |                       |   |   | 8,950                                            |   |   |   | -          |   |   |   | 9,000 |   |
|         On February 22, 2010 at $0.11 per share        |   |          | 145,000    |   |                      |   | 145    |                       |   |   | 15,805                                           |   |   |   | -          |   |   |   | 15,950 |   |
| Common shares issued to extinguish debtacquired from predecessors by Control Group member |   |          | 5,900,000  |   |                      |   | 5,900  |                       |   |   | 49,368                                           |   |   |   | -          |   |   |   | 55,268 |   |
| Share based compensation related to options issued granted during December 2009.          |   |          | -          |   |                      |   | -      |                       |   |   | 48,667                                           |   |   |   | -          |   |   |   | 48,667 |   |
| Shares returned to treasury from predecessors on January 1, 2010                          |   |          | (1,000,000 | )      |                      |   | (1,000 | )                     |   |   | 1,000                                            |   |   |   | -          |   |   |   | - |   |
| Net loss                                                                                  |   |          | -          |   |                      |   | -      |                       |   |   | -                                                |   |   |   | (293,072   | ) |   |   | (293,072 | ) |
|                                                                                      |   |          |       |   |                      |   |   |                       |   |   |                                             |   |   |   |       |   |   |   |   |   |
| Balances at February 28, 2010                                                             |   |          | 73,797,952 |   |                      | $      | 73,798 |                       |   | $      | 4,730,034                                        |   |   | $      | (5,260,730 | ) |   | $ | (456,898 | ) |

----

|                                                                                      |   | February 28, 2010 |     |   | February 28, 2009 |   |     | For the Period from August 5, 2009 (Inception) to February 28, 2010 |   |
|-------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|----------|---------------------------------------------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |              |     |   |              |   |     |                                                                |   |
| Net loss                                                                                  |   | $                 | (293,072 | )      |              | $      | (297,573 | )                                                                   |   | $ | (703,852 | ) |
| Adjustments to reconcile net loss to cash used in operating activities:                   |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| Depreciation                                                                              |   |              | 90       |   |              |   | -        |                                                                |   |   | 90 |   |
| Share-based compensation                                                                  |   |              | 90,217   |   |              |   | 270,000  |                                                                |   |   | 247,797 |   |
| Contributed services                                                                      |   |              |  -  |   |              |   |  -  |                                                                |   |   |  7,500 |   |
| Imputed rent expense                                                                      |   |              | -        |   |              |   | 900      |                                                                |   |   | - |   |
| Imputed interest on debt                                                                  |   |              | -        |   |              |   | 1,158    |                                                                |   |   | - |   |
| Gain on settlement of convertible notes                                                   |   |              |  -  |   |              |   |  -  |                                                                |   |   |  (14,000 | )  |
| Changes in:                                                                               |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| Inventory                                                                                 |   |              | -        |   |              |   | 283      |                                                                |   |   | - |   |
| Accounts payable                                                                     |   |              | -        |   |              |   | 20,548   |                                                                |   |   | 21,732 |   |
| Accrued  liabilities                                                            |   |              | 52,179   |   |              |   | 325      |                                                                |   |   | 41,300 |   |
| Bank credit line                                                                          |   |              | -        |   |              |   | -        |                                                                |   |   | (1,156 | ) |
| NET CASH USED IN OPERATING ACTIVITIES                                                     |   |              | (150,586 | )      |              |   | (4,359   | )                                                                   |   |   | (400,589 | ) |
|                                                                                      |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| Loans from stockholders                                                                   |   |              | -        |   |              |   | 5,000    |                                                                |   |   | - |   |
| Payment on Bank Credit Line Payable                                                       |   |              | -        |   |              |   | (471     | )                                                                   |   |   | - |   |
| Proceeds from sale of common stock                                                        |   |              | 200,000  |   |              |   | -        |                                                                |   |   | 200,000 |   |
|      Proceeds from convertible long term loans - related parties |   |              | 88,199   |   |              |   | -        |                                                                |   |   | 338,362 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                            |   |              | 288,199  |   |              |   | 4,529    |                                                                |   |   | 538,362 |   |
|                                                                                 |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| NET CHANGE IN CASH                                                                        |   |              | 137,613  |   |              |   | 170      |                                                                |   |   | 137,773 |   |
|   Cash balance, beginning of period                                             |   |              | 160      |   |              |   | 186      |                                                                |   |   | - |   |
|                                                                                 |   |              |     |   |              |   |     |                                                                |   |   |   |   |
|   Cash balance, end of period                                                   |   | $                 | 137,773  |   |              | $      | 356      |                                                                |   |   | 137,773 |   |
|                                                                                      |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| Supplemental Disclosures:                                                                 |   |              |     |   |              |   |     |                                                                |   |   |   |   |
|    Cash paid for interest                                                  |   | $                 | -        |   |              | $      | 2,224    |                                                                |   |   | - |   |
|   Cash paid for income taxes                                                    |   | $                 | -        |   |              | $      | -        |                                                                |   |   | - |   |
|                                                                                      |   |              |     |   |              |   |     |                                                                |   |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:                     |   |              |     |   |              |   |     |                                                                |   |   |   |   |
|   Conversion of short-term convertible notes into common stock                  |   | $                 | 55,268   |   |              | $      | -        |                                                                |   |   | 73,268 |   |
|                                                                                      |   |              |     |   |              |   |     |                                                                |   |   |   |   |

----

----

----

| 1.   | Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding; and, |
|----------------|---------------------------------------------------------------------------------------------------------|

| 2.   | Common stock, $0.001 par value, 140,000,000 shares authorized, 73,797,952 and 68,530,952 shares issued and outstanding as of February 28, 2010 and November 30, 2009, respectively. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Fair value of stock options awarded: |   | 2009   |   |
|--------------------------------------|--------|--------|--------|
|                                 |   |   |   |
| Assumptions:                         |   |   |   |
| Expected volatility                  |   |   | 238    | % |
| Dividend yield                       |   |   | 0      | % |
| Expected option life (years)         |   |   | 6.5    |   |
| Risk-free interest rate              |   |   | 2.24   | % |
| Market price of option               |   | $      | 0.06   |   |

----

----

----

| -   | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with the U.S. GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                  | MASS HYSTERIA ENTERTAINMENT COMPANY, INC.                                                                                                            |
|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                 |
| DATED: April __, 2010 | By: /s/ Daniel Grodnik                      |
|                  | Daniel GrodnikChief Executive Officer and Principal Accounting Officer                                                                          |