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| 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.) |

| Large Accelerated Filer | o | Accelerated Filer         | o |
|-------------------------|---|---------------------------|---|
| Non-Accelerated Filer   | o | Smaller Reporting Company | x |

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|                           | Page                                                                                        |   |
|--------------------------------|---------------------------------------------------------------------------------------------|--------|
| PART I-- FINANCIAL INFORMATION |                                                                                        |   |
|                           |                                                                                        |   |   |
| Item 1.                        | Financial Statements                                                                        | 3      |   |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12     |   |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                  | 14     |   |
| Item 4T                        | Control and Procedures                                                                      | 14     |   |
|                           |                                                                                        |   |   |
| PART II-- OTHER INFORMATION    |                                                                                        |   |
|                           |                                                                                        |   |   |
| Item 1                         | Legal Proceedings                                                                           | 15     |   |
| Item 1A                        | Risk Factors                                                                                | 15     |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 15     |   |
| Item 3.                        | Defaults Upon Senior Securities                                                             | 15     |   |
| Item 4.                        | Submission of Matters to a Vote of Security Holders                                         | 15     |   |
| Item 5.                        | Other Information                                                                           | 15     |   |
| Item 6.                        | Exhibits                                                                                    | 15     |   |
|                           |                                                                                        |   |   |
| SIGNATURES                     | 16                                                                                          |   |

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|                                                                                                                                                                         |   | August 31, 2010 |                |   | November 30, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------------------|--------|-------------------|--------|
|                                                                                                                                                                                   |   | (Unaudited)     |                |   | (Audited)         |   |
| CURRENT ASSETS                                                                                                                                                                         |   |            |                |   |              |   |
| Cash                                                                                                                                                                                   |   | $               | 18,992              |   |              | $      | 160 |   |
| Subscription receivable                                                                                                                                                                |   |            | -                   |   |              |   | 200,000 |   |
| Other current assets                                                                                                                                                                   |   |            | 514                 |   |              |   | - |   |
|    TOTAL CURRENT ASSETS                                                                                                                                                 |   |            | 19,506              |   |              |   | 200,160 |   |
|                                                                                                                                                                                   |   |            |                |   |              |   |   |   |
| Intangible assets, net of $613 and $90 accumulated amortization as of August 31, 2010 and November 30, 2009, respectively                                                              |   |            | 2,527               |   |              |   | 3,140 |   |
| Film costs  (Note 9)                                                                                                                                                         |   |            | 93,250              |   |              |   | - |   |
| Other assets                                                                                                                                                                           |   |            | 10,130              |   |              |   | 9,700 |   |
|     TOTAL ASSETS                                                                                                                                                   |   | $               | 125,413             |   |              | $      | 213,000 |   |
|                                                                                                                                                                              |   |            |                |   |              |   |   |   |
| LIABILITIES & STOCKHOLDERS’ DEFICIT                                                                                                                                     |   |            |                |   |              |   |   |   |
|                                                                                                                                                                              |   |            |                |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                    |   |            |                |   |              |   |   |   |
| Accounts payable                                                                                                                                                                       |   | $               | 18,594              |   |              | $      | 5,111 |   |
| Accounts payable – related party                                                                                                                                                 |   |            | -                   |   |              |   | 6,150 |   |
| Accrued liabilities                                                                                                                                                                    |   |            | 118,657             |   |              |   | 5,620 |   |
| Note payable (Note 5)                                                                                                                                                                  |   |            | 60,000              |   |              |   | - |   |
| Common stock liability (Note 7)                                                                                                                                                        |   |            | -                   |   |              |   | 200,000 |   |
|        TOTAL CURRENT LIABILITIES                                                                                                                    |   |            | 197,251        |   |              |   | 216,881  |   |
|                                                                                                                                                                                   |   |            |                |   |              |   |   |   |
|     Convertible long-term debt – related party (Note 5)                                                                                                      |   |            |   447,256 |   |              |   | 305,430 |   |
|    TOTAL LIABILITIES                                                                                                                                                    |   |            | 644,507             |   |              |   | 522,311 |   |
|                                                                                                                                                                                   |   |            |                |   |              |   |   |   |
|     Commitments and contingencies (Note 6)                                                                                                                         |   |            | -                   |   |              |   | - |   |
|                                                                                                                                                                                   |   |            |                |   |              |   |   |   |
|     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, 78,851,077 and 68,530,952 shares issued and outstanding as of August 31, 2010 and November 30, 2009, respectively. |   |            | 78,851              |   |              |   | 68,531 |   |
| Additional paid-in capital                                                                                                                                                             |   |            | 5,183,481           |   |              |   | 4,589,816 |   |
| Accumulated deficit                                                                                                                                                                    |   |            | (5,781,426          | )      |              |   | (4,967,658 | ) |
|                                                                                                                                                                              |   |            |                |   |              |   |   |   |
| TOTAL STOCKHOLDERS’ DEFICIT                                                                                                                                                      |   |            | (519,094            | )      |              |   | (309,311 | ) |
| TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT                                                                                                                                    |   | $               | 125,413             |   |              | $      | 213,000 |   |

----

|                                                                                                                                                                                                                                      |   |      Three Months Ended August 31, |       |    | Nine Months Ended August 31, |   |       | For the Period from August 5, 2009 (Inception) to |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|---------|------------------------------|--------|------------|---------------------------------------------------|--------|
|                                                                                                                                                                                                                                      |   | 2010                                                   |       |    | 2009                         |   |       | 2010                                              |   |   | 2009 |   |   | August 31, 2010 |   |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                                                                                   |   | $                                                      | -          |    |                         | $      | -          |                                              |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                                                                                                                                       |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative, including share-based compensation of $238,467, $0, $64,000 and $0 for the three and nine months ended August 31, 2010 and 2009, respectively, and $396,047 for the period from Inception to August 31, 2010. |   |                                                   | 255,237    |    |                         |   | 99,915     |                                              |   |   | 757,076 |   |   |   | 99,915 |   |   |   |   1,152,065 |   |
| Selling expense, including share-based compensation of $20,000, $0, $20,000 and $0 for the three and nine months ended August 31, 2010 and 2009, respectively, and $20,000 for the period from Inception to August 31, 2010.         |   |                                                   | 36,698     |    |                         |   | 590        |                                              |   |   | 38,782 |   |   |   | 590 |   |   |   | 50,574 |   |
| Total operating expenses                                                                                                                                                                                                                  |   |                                                   | 291,935    |    |                         |   | 100,505    |                                              |   |   | 795,858 |   |   |   | 100,505 |   |   |   | 1,202,639 |   |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                                                                                                                                                                                                                  |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                                                                                                                                                                           |   |                                                   | -          |    |                         |   | -          |                                              |   |   | 225 |   |   |   | - |   |   |   | 225 |   |
|         Interest expense                                             |   |                                                   | (7,666     | )       |                         |   | (376       | )                                            |   |   | (18,135 | ) |   |   | (376 | )  |   |   | (22,133 | ) |
|     Total other income (expense)                                                                                                                                                                                      |   |                                                   | (7,666     | )  |                         |   | (376       | )                                            |   |   | (17,910 | )  |   |   | (376 | )  |   |   | (21,908 | ) |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations                                                                                                                                                                                                       |   |                                                   | (299,601   | )       |                         |   | (100,881   | )                                            |   |   | (813,768 | ) |   |   | (100,881 | )  |   |   | (1,224,547 | )  |
| Net loss from discontinued operations                                                                                                                                                                                                     |   |                                                   | -          |    |                         |   | (1,388,276 | )                                                 |   |   | - |   |   |   | (1,695,858 | ) |   |   | - |   |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                                                                                  |   | $                                                      | (299,601   | )       |                         | $      | (1,489,157 | )                                                 |   | $ | (813,768 | ) |   | $ | (1,796,739 | ) |   | $ | (1,224,547 | ) |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss from continuing operations per share                                                                                                                                                                               |   | $                                                      | -          | *       |                         | $      | -          | *                                                 |   | $ | (0.01 | ) |   | $ | (0.01 | ) |   |   |   |   |
| Basic and diluted loss from discontinued operations per share                                                                                                                                                                             |   | $                                                      | -          | *       |                         | $      | (0.04      | )                                                 |   | $ | - | * |   | $ | (0.08 | ) |   |   |   |   |
|                                                                                                                                                                                                                                      |   |                                                   |       |    |                         |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding                                                                                                                                                                                     |   |                                                   | 77,668,468 |    |                         |   | 34,751,984 |                                              |   |   | 74,293,189 |   |   |   | 19,974,642 |   |   |   |   |   |

----

|                                                                                       |   |   Common Shares |       |   | Common Stock at Par Value |   |   | Additional Paid-in Capital |   |   | Shares Committed to be Issued |   |   | Accumulated Deficit |   |   | Total  |   |
|--------------------------------------------------------------------------------------------|--------|----------------------|------------|--------|---------------------------|--------|--------|----------------------------|--------|--------|-------------------------------|--------|--------|---------------------|--------|--------|--------|--------|
| 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 |   |
| On March 9, 2010 at $0.08 per share                                                        |   |                 | 375,000    |   |                      |   | 375    |                       |   |   | 29,625                        |   |   |                | -      |   |   |   | - |   |   |   | 30,000 |   |
| On May 27, 2010 at $0.032 per share                                                        |   |                 | 78,125     |   |                      |   | 78     |                       |   |   | 2,422                         |   |   |                | -      |   |   |   | - |   |   |   | 2,500 |   |
| Common shares issued to extinguish debt acquired from predecessors by Control Group member |   |                 | 5,900,000  |   |                      |   | 5,900  |                       |   |   | 49,368                        |   |   |                | -      |   |   |   | - |   |   |   | 55,268 |   |
| Shares committed to be issued                                                              |   |                 | 3,000,000  |   |                      |   | 3,000  |                       |   |   | 197,000                       |   |   |                | -      |   |   |   | - |   |   |   | 200,000 |   |
| Shares issued for services:                                                                |   |                 |       |   |                      |   |   |                       |   |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |
| On June 23, 2010 at $0.04 per share                                                        |   |                 | 600,000    |   |                      |   | 600    |                       |   |   | 23,400                        |   |   |                | -      |   |   |   | - |   |   |   | 24,000 |   |
| Share based compensation related to options issued granted during December 2009       |   |                 | -          |   |                      |   | -      |                       |   |   | 168,667                       |   |   |                | -      |   |   |   | - |   |   |   | 168,667 |   |
| Contributed services                                                                       |   |                 | -          |   |                      |   | -      |                       |   |   | 82,000                        |   |   |                | -      |   |   |   | - |   |   |   | 82,000 |   |
| Net loss                                                                                   |   |                 | -          |   |                      |   | -      |                       |   |   | -                             |   |   |                | -      |   |   |   | (813,768 | ) |   |   | (813,768 | ) |
|                                                                                       |   |                 |       |   |                      |   |   |                       |   |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |
| Balances at August 31, 2010                                                                |   |                 | 78,851,077 |   |                      | $      | 78,851 |                       |   | $      | 5,183,481                     |   |   | $                   |   |   |   | $      | (5,781,426 | ) |   | $ | (519,094 | ) |

----

|                                                                          |   | August 31, 2010 |         |   | August 31, 2009 |    |       | For the Period from August 5, 2009 (Inception) toAugust 31, 2010 |   |
|------------------------------------------------------------------------------------|--------|-----------------|--------------|--------|-----------------|---------|------------|------------------------------------------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                               |   |            |         |   |            |    |       |                                                             |   |
| Net loss                                                                           |   | $               | (813,768     | )      |            | $       | (1,796,739 | )                                                                |   | $ | (1,224,547 | ) |
| Adjustments to reconcile net loss to cash used in operating activities:            |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Depreciation                                                                       |   |            | 613          |   |            |    | 90         |                                                             |   |   | 613 |   |
| Share-based compensation                                                           |   |            | 258,467      |   |            |    | 510,000    |                                                             |   |   | 416,047 |   |
|         Contributed services                    |   |            | 82,000       |   |            |    |  -    |                                                             |   |   |  89,500 |   |
| Loss on extinguishment of debt                                                     |   |            | -            |   |            |    | 1,144,000  |                                                             |   |   | - |   |
|         Gain on settlement of convertible notes |   |            |  -      |   |            |    |  -    |                                                             |   |   |  (14,000 | ) |
| Imputed rent expense                                                               |   |            | -            |   |            |    | 1,800      |                                                             |   |   | - |   |
| Imputed interest on debt                                                           |   |            | -            |   |            |    | 3,349      |                                                             |   |   | - |   |
| Changes in:                                                                        |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Prepaid expenses                                                                   |   |            | (430         | )      |            |    | (64        | )                                                           |   |   | (430 | ) |
| Miscellaneous receivables                                                          |   |            | (514         | )      |            |    | -          |                                                             |   |   | (514 | ) |
| Inventory                                                                          |   |            | -            |   |            |    | 4,401      |                                                             |   |   | - |   |
| Accounts payable                                                              |   |            | 7,333        |   |            |    | 63,157     |                                                             |   |   | 29,067 |   |
| Accrued  liabilities                                                     |   |            | 58,037       |   |            |    | -          |                                                             |   |   | 47,156 |   |
| Bank credit line                                                                   |   |            | -            |   |            |    | -          |                                                             |   |   | (1,156 | ) |
| NET CASH USED IN OPERATING ACTIVITIES                                              |   |            | (408,262     | )      |            |    | (70,006    | )                                                                |   |   | (658,264 | ) |
|                                                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Film costs                                                                         |   |            | (30,000      | )      |            |    | -          |                                                             |   |   | (30,000 | ) |
| Purchase of intangibles                                                            |   |            |   -     |   |            |    | (3,230     | )                                                                |   |   |   - |   |
| NET CASH USED IN INVESTING ACTIVITIES                               |   |            | (30,000      | )      |            |    | (3,230     | )                                                                |   |   | (30,000 | ) |
|                                                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Short-term debt                                                                    |   |            | 60,000       |   |            |    | -          |                                                             |   |   | 60,000 |   |
| Loans from stockholders                                                            |   |            | -            |   |            |    | 89,032     |                                                             |   |   | - |   |
| Principal payments on loans from stockholders                                      |   |            | -            |   |            |    | (15,982    | )                                                           |   |   | - |   |
| Proceeds from sale of common stock                                                 |   |            | 200,000      |   |            |    | -          |                                                             |   |   | 200,000 |   |
| Proceeds from convertible long-term debt - related party                      |   |            | 197,094      |   |            |    | -          |                                                             |   |   | 447,256 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                     |   |            | 457,094      |   |            |    | 73,050     |                                                             |   |   | 707,256 |   |
|                                                                          |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| NET CHANGE IN CASH                                                                 |   |            | 18,832       |   |            |    | (186       | )                                                           |   |   | 18,992 |   |
| Cash balance, beginning of period                                                  |   |            | 160          |   |            |    | 186        |                                                             |   |   | - |   |
|                                                                          |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Cash balance, end of period                                                        |   | $               | 18,992       |   |            | $       | -          |                                                             |   | $ | 18,992 |   |
|                                                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Supplemental Disclosures:                                                          |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Cash paid for interest                                                             |   | $               | -            |   |            | $       | -          |                                                             |   | $ | - |   |
| Cash paid for income taxes                                                         |   | $               | -            |   |            | $       | -          |                                                             |   | $ | - |   |
|                                                                               |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:              |   |            |         |   |            |    |       |                                                             |   |   |   |   |
| Common stock issued in lieu of cash payment for script costs                       |   | $               | 48,250       |   |            | $       | -          |                                                             |   | $ | 48,250 |   |
| Capitalization of accrued liabilities for script costs                             |   | $               |  15,000 |   |            | $       |  -    |                                                             |   | $ |  15,000 |   |
| Conversion of short-term convertible notes into common stock                       |   | $               | 55,268       |   |            | $       | -          |                                                             |   | $ | 73,268 |   |
| Accrued salaries waived as contributed services                                    |   | $               | 82,000       |   |            | $  |   -   |                                                             |   | $  | 82,000 |   |

----

----

|                      |   | August 31, 2010 |    |   | November 30,2009 |   |
|---------------------------|--------|---------------------------|---------|--------|------------------|--------|
|                      |   |                      |    |   |             |   |
| Accrued interest          |   | $                         | 22,135  |   |             | $      | - |   |
| Accrued consulting fees   |   |                      | 63,000  |   |             |   | - |   |
| Accrued legal fees        |   |                      | 3,075   |   |             |   | - |   |
| Accrued payroll taxes     |   |                      | 18,800  |   |             |   | - |   |
| Other accrued expenses    |   |                      | 11,647  |   |             |   | 5,620 |   |
|                      |   |                      |    |   |             |   |   |   |
| Total accrued liabilities |   | $                         | 118,657 |   |             | $      | 5,620 |   |

----

| 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, 78,851,077 and 68,530,952 shares issued and outstanding as of August 31, 2010 and November 30, 2009, respectively. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 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: October 13, 2010 | By: /s/ Daniel Grodnik                      |
|                    | Daniel GrodnikChief Executive Officer and Principal Accounting Officer                                                                          |