Fuego Enterprises, Inc. (FUGI)

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3. SIGNIFICANT ACCOUNTING POLICIES
GOING CONCERN
Our financial statements have been presented on the basis that it is a going concern, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to
continue in existence is dependent on its ability to develop additional sources of capital, or achieve
profitable operations. We sustained losses in the last two years and we have deficits in working capital. Our
financial position at that date and presently is of great concern to us and our investors, however,
management’s plan is to obtain additional capital and to continue to develop, market and distribute musical
tracks through Fuego and its joint venture, Echo-Fuego Music Group, LLC. The accompanying financial
statements do not include any adjustments that might result from the outcome of this uncertainty.

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