**SECURITIES
        AND EXCHANGE COMMISSION**
 WASHINGTON,
        D.C. 20549
 
 **FORM
        10-QSB**
 
 (Mark
        One)
 
 **QUARTERLY
        REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE**
 **ACT
        OF 1934**
 
 [X]
        For
        the quarterly period ended June 30, 2007 or
 
 **TRANSITION
        REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE**
 **ACT
        OF 1934**
 
 For
        the
        transition period from _______________ to ____________________
 
 *Commission
        File Number: 000-32467*
 
 **Global
        Realty Development
        Corp.**
 (Name
        of small business issuer in its charter)
   Delaware
              30-0360216(Jurisdiction
                  of
                  organization)
              (I.R.S.
                  Employer Identification
                  No.)
 
 11555
                  Heron Bay Boulevard, Suite 200
                Coral
                  Springs, Florida 33076
                (Address
                  of principal executive
                  offices)
                
                Issuer's
                  telephone number:
                (954)
                  603-0522
 
 
 Indicate
        by check mark whether the registrant (1) has filed all reports required to
        be
        filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
        the
        preceding 12 months (or for such shorter period that the registrant as required
        to file such reports) and (2) has been subject to such filing requirements
        for
        the past 90 days. YES X    NO __
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Securities Exchange Act of 1934).  YES
        __    NO X
 
 As
        of
        July 27, 2007, there were 96,689,497 shares of the registrant's common stock
        outstanding.
 
 Transitional
        Small Business Disclosure format (check one):  YES
        __    NO X
 
 
 
  **GLOBAL
        REALTY DEVELOPMENT CORP.**
 **TABLE
        OF CONTENTS**
 
 
 **PART
        I.**
 **FINANCIAL
        INFORMATION**
 
 **ITEM
                  1. FINANCIAL STATEMENTS**Consolidated
                  Balance Sheets at June 30, 2007 (Unaudited) and December 31,
                  2006
              1Consolidated
                  Statements of Operations for the Six Months
              2Ended
                  June 30, 2007 and 2006 (Unaudited)Consolidated
                  Statements of Cash Flows for the Three Months
              3Ended
                  June 30, 2007 and 2006 (Unaudited)Notes
                  to Financial Statements
              4**ITEM
                  2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
                  OPERATION**
              8**ITEM
                  3. CONTROLS AND PROCEDURES**
              13**PART
                  II.****OTHER
                  INFORMATION****ITEM
                  1. LEGAL PROCEEDINGS**
              14**ITEM
                  2**. **UNREGISTERED SALES OF EQUITY SECURITIES AND USE
                  OF
                  PROCEEDS**
              14**ITEM
                  3. DEFAULTS UPON SENIOR SECURITIES**
              14**ITEM
                  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                  HOLDERS**
              14**ITEM
                  5. OTHER INFORMATION**
              14**ITEM
                  6. EXHIBITS**
              14




2
  Item
          1.
          Financial Statements
  GLOBAL
        REALTY DEVELOPMENT CORP.
 CONSOLIDATED
        BALANCE SHEETS
 
 **June
                  30**
              
              
              **December
                  31,****2007**
              
              
              **2006****(Unaudited)****ASSETS**Cash
                  and cash equivalents
              
              $
              55,915
              
              
              $
              110,979Inventories-at
                  the lower of cost orfair
                  value-lots held for sale
              
              
              24,194,783
              
              
              
              29,469,111Receivables
              
              
              42,635
              
              
              
              219,827Deposits
              
              
              776,890
              
              
              
              -Receivable
                  from related party
              
              
              1,149,584
              
              
              
              2,611,369Prepaid
                  expenses
              
              
              151,869
              
              
              
              1,091,500Film
                  Rights
              
              
              618,000
              
              
              
              618,000Goodwill
              
              
              6,794,000
              
              
              
              6,794,000Property,
                  plant and equipment
              
              
              2,050,193
              
              
              
              1,911,514**TOTAL
                  ASSETS**
              
              $
              35,833,869
              
              
              $
              42,826,300**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****Liabilities:**Convertible
                  subordinated note
              
              $
              -
              
              
              $
              2,400,000Accounts
                  payable and other liabilities
              
              
              1,869,853
              
              
              
              1,332,083Mortgages
                  notes payable
              
              
              17,216,550
              
              
              
              19,924,616Accrued
                  interest expense
              
              
              240
              
              
              
              876,903Accrued
                  salaries and benefits
              
              
              528,419
              
              
              
              454,963Loans
                  from related parties-unsecured
              
              
              754,363
              
              
              
              585,041Income
                  taxes payable
              
              
              2,509,820
              
              
              
              2,302,729Other
                  taxes payable
              
              
              1,477,772
              
              
              
              1,619,837**Total
                  Liabilities**
              
              
              24,357,017
              
              
              
              29,496,172**Stockholders'
                  equity**Preferred
                  stock, $0.001 par value, 10,000,000 shares authorized,no
                  shares issued and outstanding
              
              
              
              
              
              
              -Common
                  stock, $0.001 par value, 500,000,000 shares authorized,96,689,497
                  and 99,532,742 shares issued and outstandingat
                  June 30, 2007 and December 31, 2006, respectively
              
              
              96,690
              
              
              
              99,533Paid
                  in capital
              
              
              35,812,462
              
              
              
              35,917,345Accumulated
                  other comprehensive income
              
              
              2,617,191
              
              
              
              2,321,164Retained
                  earnings (deficit)
              
              
              (27,049,491
              )
              
              
              (25,007,914
              )**Total
                  stockholders' equity**
              
              
              11,476,852
              
              
              
              13,330,128**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY**
              
              $
              35,833,869
              
              
              $
              42,826,300
 
 **See
        accompanying notes to financial statements.**
   3
     GLOBAL
        REALTY DEVELOPMENT CORP.
 CONSOLIDATED
        STATEMENTS OF OPERATIONS (UNAUDITED)
 
 **Three
                  Months Ended**
              
              
              **Six
                  Months Ended****June
                  30**
              
              
              **June
                  30****2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006****REVENUES**Land
                  sales
              
              $
              1,782,908
              
              
              $
              4,529,287
              
              
              $
              10,861,901
              
              
              $
              4,529,287Other
              
              
              89,948
              
              
              
              35,329
              
              
              
              136,491
              
              
              
              79,452**Total
                  Revenue**
              
              
              1,872,856
              
              
              
              4,564,616
              
              
              
              10,998,392
              
              
              
              4,608,739**EXPENSES**Cost
                  of sales
              
              
              1,257,580
              
              
              
              3,287,874
              
              
              
              9,367,831
              
              
              
              3,337,032Administrative
              
              
              937,105
              
              
              
              1,864,705
              
              
              
              3,232,225
              
              
              
              2,596,882Interest
              
              
              83,646
              
              
              
              658,206
              
              
              
              172,957
              
              
              
              727,722Depreciation
              
              
              2,646
              
              
              
              2,425
              
              
              
              5,161
              
              
              
              4,676**Total
                  Expenses**
              
              
              2,280,977
              
              
              
              5,813,210
              
              
              
              12,778,174
              
              
              
              6,666,312**Income
                  (loss) before income taxes**
              
              
              (408,121
              )
              
              
              (1,248,594
              )
              
              
              (1,779,782
              )
              
              
              (2,057,573
              )**Income
                  taxes**
              
              
              (261,795
              )
              
              
              -
              
              
              
              (261,795
              )
              
              
              -**Net
                  income (loss)**
              
              $
              (669,916
              )
              
              $
              (1,248,594
              )
              
              $
              (2,041,577
              )
              
              $
              (2,057,573
              )**Net
                  (loss) income per common share****(basic
                  & diluted)**
              
              $
              (0.007
              )
              
              $
              (0.014
              )
              
              $
              (0.021
              ))
              
              $
              (0.024
              )**Weighted
                  average common shares outstanding****(basic
                  & diluted)**
              
              
              96,675,596
              
              
              
              87,634,635
              
              
              
              96,734,414
              
              
              
              86,927,718
 
 **See
        accompanying notes to financial statements**
    4
   GLOBAL
        REALTY DEVELOPMENT CORP.
 CONSOLIDATED
        STATEMENTS OF CASH FLOWS (UNAUDITED)
   **For
                  the Six Months Ended****June
                  30, 2007****2007**
              
              
              **2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  income (loss)
              
              $
              (2,041,577
              )
              
              $
              (2,057,572
              )Adjustments
                  to reconcile net loss to net cashfrom
                  operating activities:Depreciation
                  and amortization
              
              
              5,161
              
              
              
              4,676Amortization
                  of prepaid consulting expenses
              
              
              1,031,500
              
              
              
              -Stock
                  based compensation
              
              
              623,531
              
              
              
              811,707Capital
                  contribution of income tax
              
              
              730,528Decrease
                  (increase) in assets:Accounts
                  Receivable
              
              
              177,192
              
              
              
              (927,741
              )Deposits
              
              
              (776,890
              )
              
              
              -Inventory
              
              
              5,274,328
              
              
              
              5,776,612Accounts
                  receivable to related party
              
              
              -
              
              
              
              (228,908
              )Prepaid
                  expenses
              
              
              (91,869
              )
              
              
              310,421Increase
                  (decrease) in liabilities:Accounts
                  payable
              
              
              537,770
              
              
              
              (202,440
              )Accrued
                  salaries and benefits
              
              
              73,456
              
              
              
              -Taxes
                  payable
              
              
              207,091
              
              
              
              712,081Accrued
                  interest
              
              
              (876,663
              )
              
              
              423,745Other
                  taxes payable
              
              
              (142,065
              )
              
              
              207,119**NET
                  CASH PROVIDED BY OPERATING ACTIVITIES**
              
              
              4,731,493
              
              
              
              4,829,700**CASH
                  FLOWS FROM INVESTING ACTIVITIES:**Capital
                  expenditures
              
              
              -
              
              
              
              (186,878
              )**NET
                  CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES**
              
              
              -
              
              
              
              (186,878
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**Notes payable
              
              
              (2,400,000
              )
              
              
              -Mortgages
                  payable, net
              
              
              (2,708,066
              )
              
              
              (5,631,209
              )Loans
                  from related parties, unsecured
              
              
              169,322
              
              
              
              787,988Loans
                  from related parties, secured
              
              
              -
              
              
              
              4,287**NET
                  CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES**
              
              
              (4,938,744
              )
              
              
              (4,838,934
              )**EFFECT
                  OF EXCHANGE RATE OF CASH**
              
              
              152,187
              
              
              
              182,572**NET
                  INCREASE (DECREASE) IN CASH**
              
              
              (55,064
              )
              
              
              (13,540
              )**CASH,**beginning of year
              
              
              110,979
              
              
              
              20,670**CASH,**
                  end of year
              
              $
              55,915
              
              
              $
              7,130**SUPPLEMENTAL
                  DATA:****Non
                  cash items**Issuance
                  of common stock for consulting fees to be recognized in future
                  periods
              
              $
              -
              
              
              $
              1,715,000Retirement
                  of stock in exchange for payment of Related Party
                  Receivable
              
              $
              1,461,785
              
              
              $
              -Capitalization
                  of Taxes Payable
              
              $
              730,528
   **See
        accompanying notes to financial statements**
    5
   GLOBAL
        REALTY DEVELOPMENT CORP.
 
 NOTES
        TO
        CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
 June
        30,
        2007
 
 
 NOTE
        A –
CONDENSED FINANCIAL STATEMENTS
 
 In
        the
        opinion of the Company, the accompanying unaudited consolidated financial
        statements include all adjustments (consisting only of normal recurring
        accruals) which are necessary for a fair presentation of the results for
        the
        periods presented.  Certain information and footnote disclosure,
        normally included in the financial statements prepared in accordance with
        generally accepted accounting principles, have been condensed and
        omitted.  The results of operations for the three months ended June
        30, 2007 are not indicative of the results of operations for the year ended
        December 31, 2006.  The condensed financial statements should be read
        in conjunction with the Company’s financial statements included in its annual
        Form 10 KSB for the year ended December 31, 2006.
 
 NOTE
        B –
GOING CONCERN
 
 As
        indicated in the accompanying financial statements, the Company has an
        accumulated deficit of $27,049,491 at June 30, 2007.  Management’s
        plans include the raising of capital through the equity market and the
        generating of revenue through its business.  Failure to raise capital
        and generate sales revenues could result in the Company having to curtail
        or
        cease operations.  Additionally, even if the Company does raise
        sufficient capital to support its operating expenses and generate revenues,
        there can be no assurances that the revenue will be sufficient to enable
        it to
        develop business to a level where it will generate profits and cash flows
        from
        operations. These matters raise substantial doubt about the Company’s ability to
        continue as a going concern.  However, the accompanying financial
        statements have been prepared on a going concern basis, which contemplates
        the
        realization of assets and satisfaction of liabilities in the normal course
        of
        business.  These financial statements do not include any adjustments
        relating to the recovery of the recorded assets or the classification of
        the
        liabilities that might be necessary should the Company be unable to continue
        as
        a going concern.
 
 
 NOTE
        C –
RELATED PARTY
 
 
 During
        the quarter ended June 30, 2007, payments in the amount of $81,000 were made
        to
        Marino Investments Services Pty, Ltd, a company controlled by Peter Voss,
        a
        major shareholder and employee of the Company, to pay for additional expenses
        incurred with the potential acquisition of Pachinko Parlors.
 
 
 NOTE
        D –
STOCKHOLDERS’ EQUITY
 
 During
        the quarter ended March 31, 2007, the Company recorded $608,581 in stock
        based
        compensation representing the current period expense of employee stock options
        issued in 2006.
 
 On
        May
        25, 2007, the Company issued 23,000 shares of its common stock for professional
        fees incurred.  The shares were valued at $.65 per
        share.  Legal expense charged to operations as of June 30, 2007 was
        $14,950.
 
 During
        the quarter ended June 30, 2007, the Company received and retired 2,866,245
        shares of its common stock in partial settlement of the Related Party receivable
        from A-1 Financial Planners.  The shares were valued at $.51 per
        share.
   6
 
 In
        2003,
        the former principal shareholder contributed $2,435,095 to the Company from
        a
        personal trust and which was considered to be a capital
        contribution.  The distribution from the trust was a taxable
        transaction.  The capital contribution was recorded net of applicable
        income taxes under Australian tax laws.  During the quarter ended June
        30, 2007, as a result of the Company filing its returns for previous years,
        the
        Australian tax authorities allowed operating losses to offset such income
        and
        reduced the outstanding tax liability of the Company.  Accordingly,
        $730,528 was transferred to Additional Paid in Capital from Income Taxes
        payable.
  NOTE
        E –
SUBSEQUENT EVENTS
 
 **Sale
        of Offering Units**
  On
        July
        25, 2007, the Company sold an aggregate of 1,125,000 Offering Units to four
        investors for an aggregate purchase price of $1,125,000.  The Offering
        Units consist of (i) 12% senior secured promissory notes in an aggregate
        principal amount of $1,125,000, (ii) warrants to purchase an aggregate of
        3,375,000 shares of Company common stock, and (iii) subject to removal of
        certain contingencies, additional warrants (“Additional Warrants”) to purchase
        an aggregate of 1,125,000 shares of Company common stock.  In
        connection with the transaction and as part of the placement fee for the
        transaction, the Company paid certain cash fees and issued the following
        securities to Halpern Capital, Inc.: (i) a warrant to purchase 236,250 shares
        of
        Company common stock and (ii) subject to removal of certain contingencies
        and
        delivery of the Additional Warrants to the investors, an additional warrant
        to
        purchase 78,750 shares of Company common stock.
 
 **Purchase
        of Memorabilia Collection**
 
 On
        July
        25, 2007 the Company entered into an agreement with Focus Solutions
        International to purchase a memorabilia collection for 11,000,000 shares
        of
        common stock.  Such collection has been pledged as collateral for the
        12% senior promissory notes above.  This memorabilia has been
        purchased to be used in SMS Text Media campaigns and for resale.
 
 **Acquisition
        of SMS Text Media, Inc.**
  On
        July
        30, 2007, the Company consummated the closing of, and became obligated under,
        an
        acquisition agreement dated July 19, 2007 with SMS Text Media, Inc., a Nevada
        Corporation ("SMS"), and the stockholders of SMS (the "Selling Stockholders").
        Pursuant to the Acquisition Agreement, the Company agreed to purchase 100%
        of
        the authorized, issued and outstanding common stock of SMS in consideration
        for:
        (a) $3,000,000 in cash to the Selling Stockholders; (b) 10,000,000 shares
        of the
        Company's common stock to the Selling Stockholders; (c) a $1,500,000 line
        of
        credit to SMS at an interest rate of no greater than 12% per annum; and (d)
        contingent payments to the Selling Stockholders from earned income from SMS
        operations.
  Under
        the
        terms of the Acquisition Agreement, the Selling Stockholders deposited the
        SMS
        Shares in escrow with an escrow agent, the Company agreed to make payments
        of
        Cash to the Selling Stockholders in installments, and the Selling Stockholders
        agreed to deliver the SMS Shares to the Company in proportionate installments
        upon the Selling Stockholders' receipt of the Cash payments. On July 30,
        2007,
        the Company delivered all of the Company Shares to the Selling Stockholders
        and
        paid the sum of $530,000 in Cash to the Selling Stockholders as the initial
        installment of the Cash payments. The Company received 69.125% of the SMS
        Shares
        on July 30. The Company is obligated to purchase the remaining SMS Shares
        pursuant to the terms of the Acquisition Agreement within ninety (90) days
        after
        July 30, 2007. If the Company has not paid the full $3,000,000 Cash payments
        to
        the Selling Stockholders by such Date, then the Company will issue the Selling
        Stockholders a promissory note for the balance of Cash which has not been
        made.
        The outstanding principal amount of the promissory note will be subject to
        a
        penalty interest rate of 15% per year from the date of the promissory note
        through the date on which the principal balance is repaid. Until the promissory
        note is paid in full (principal plus interest), (i) all dividends and other
        distributions to stockholders of SMS, if any, shall be paid 50.1% to the
        Company
        and 49.9% to the Selling Stockholders, regardless of actual stock ownership
        in
        SMS, and (ii) all dividends and distributions to be made by SMS to the Company
        shall be paid over to the Selling Stockholders to be applied to principal
        and
        interest on the SMS Note. Once the promissory note is paid in full (principal
        plus interest), the remaining SMS Shares in escrow will be delivered to the
        Company.
    7
  **ITEM
        2.MANGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
        OPERATION**
 
 **INTRODUCTION**
 
 The
        following discussion should be read in conjunction with the Financial Statements
        and Notes thereto. Our fiscal year ends December
        31.******This document contains certain
        forward-looking statements including, among others, anticipated trends in
        our
        financial condition and results of operations and our business strategy.
        (See
“Factors Which May Affect Future Results”). These forward-looking statements are
        based largely on our current expectations and are subject to a number of
        risks
        and uncertainties. Actual results could differ materially from these
        forward-looking statements. Important factors to consider in evaluating such
        forward-looking statements include (i) changes in external factors or in
        our
        internal budgeting process which might impact trends in our results of
        operations; (ii) unanticipated working capital or other cash requirements;
        (iii)
        changes in our business strategy or an inability to execute our strategy
        due to
        unanticipated changes in the industries in which the Company operates; and
        (iv)
        various competitive market factors that may prevent us from competing
        successfully in the marketplace.
 
 **Overview**
 
 The
        primary objective of the Company's management is to maximize shareholder
        value.
        The Company attempts to accomplish this objective by acquiring companies
        in the
        entertainment and gaming areas.  Management believes revenues and
        earned income can be increased by (1) acquiring Pachinko Parlors and
        entertainment companies.
 
 The
        Company to date has been primarily a commercial and residential land development
        company with properties located in Australia. The principal activities of
        the
        Company and its consolidated subsidiaries include: obtaining zoning and other
        entitlements for land it owns or controls through purchase or purchase options
        and improving the land for commercial and residential development by building
        roads, putting in utilities and subdividing the land.   Once the
        land owned by the Company is entitled, the Company may either sell unimproved
        land to other developers or homebuilders or sell improved land to other
        developers or homebuilders.
 
 During
        the third quarter of 2006, the United States operations of the Company directed
        its attention toward building an entertainment and gaming company.  To
        that end on August 29, 2006 the Company purchased MJD Films and on October
        4,
        2006 the Company purchased a 51% interest in the TFM Group, a newly-formed
        joint
        venture formed to develop television, film and music production
        projects.
  **Entertainment**
  The
        Company acquired MJD Films (“MJD”).  In exchange for all of the
        outstanding common stock of MJD Films, the Company issued to MJD Shareholders
        an
        aggregate of 4,000,000 shares of common stock and 2,000,000 Warrants to purchase
        common stock at market price, exercisable up to three years. Such shares
        and
        warrants are restricted securities (as such term is defined in Rule 144 under
        the U.S. Securities Act of 1933, as amended (the "Securities Act").
 
 MJD
        has
        produced the full feature documentary “Seed of Faith”. The film provides a
        portrait into the life of Pope John Paul II.    “SEED of Faith” is
        finished and packaged (DVD) and offered in both English and Spanish.  It’s
        supporting CD Soundtrack features Grammy Award winning artist Yanni, Academy
        Award winning composer Ennio Marriconne and many other contributing musical
        artists.   Second, MJD is in the process of producing a
        Horror/Thriller film “The Devil Exists” based on The Manson Family.
 
 On
        October 4, 2006, the Company entered into an Operating Agreement for the
        formation of TFM Group, L.L.C., a Delaware limited liability company, along
        with
        the Roy Sciacca Group and Mariano Rivera. The Company received 51% of TFM
        Group,
        L.L.C. for an initial contribution of 6,000,000 shares of common stock of
        the
        Company to the Roy Sciacca Group and 3,000,000 warrants to purchase shares
        of
        the Company’s common stock, with an exercise price of $1.00 per share. Such
        shares and warrants are restricted securities (as such term is defined in
        Rule
        144 under the Securities Act.
   8
 
 This
        joint venture entity was created to develop television, film and music
        productions including a new reality television show, “Battle of the
        Americas”.
 
 **Real
        Estate**
 
 The
        Company currently has on-going Australian projects on various seaboard cities
        of
        the Eastern coastal regions of Australia.  The Company plans to sell
        off its real estate to provide cash flow for its gaming and entertainment
        businesses.
 
 Real
        estate held for current development or sale and land held for future development
        (real estate properties) are carried at the lower of cost or fair market
        value.  The Company’s real estate properties are subject to a number
        of uncertainties which can affect the values of those assets. These
        uncertainties include litigation or appeals of regulatory approvals and
        availability of adequate capital, financing and cash flow. In addition, future
        values may be adversely affected by increases in property taxes, increases
        in
        the costs of labor and materials and other development risks, changes in
        general
        economic conditions, including higher mortgage interest rates, and other
        real
        estate risks such as the general demand for housing and the supply of
        competitive products. Real estate properties do not constitute liquid assets
        and, at any given time, it may be difficult to sell a particular property
        for an
        appropriate price.
 
 **CRITICAL
        ACCOUNTING POLICIES**
 
 The
        Securities and Exchange Commission ("SEC") defines "critical accounting
        policies" as those that require application of management's most difficult,
        subjective or complex judgments, often as a result of the need to make estimates
        about the effect of matters that are inherently uncertain and may change
        in
        subsequent periods.
 
 Not
        all
        of the accounting policies require management to make difficult, subjective
        or
        complex judgments or estimates. However, the following policies could be
        deemed
        to be critical within the SEC definition.
 
 **Revenue
        and Cost Recognition**
 
 Revenue
        on product sales is recognized when persuasive evidence of an arrangement
        exists, such as when a purchase order or contract is received from the customer,
        the price is fixed, title to the goods has changed and there is a reasonable
        assurance of collection of the sales proceeds. The Company obtains written
        purchase authorizations from its customers for a specified amount of product
        at
        a specified price and considers delivery to have occurred at the time of
        shipment. Revenue is recognized at shipment and the Company records a reserve
        for estimated sales returns, which is reflected as a reduction of revenue
        at the
        time of revenue recognition.
 
 Revenues
        from research and development activities relating to firm fixed-price contracts
        are generally recognized on the percentage-of-completion method of accounting
        as
        costs are incurred (cost-to-cost basis). Revenues from research and development
        activities relating to cost-plus-fee contracts include costs incurred plus
        a
        portion of estimated fees or profits based on the relationship of costs incurred
        to total estimated costs. Contract costs include all direct material and
        labor
        costs and an allocation of allowable indirect costs as defined by each contract,
        as periodically adjusted to reflect revised agreed upon rates. These rates
        are
        subject to audit by the other party. Amounts can be billed on a bi-monthly
        basis. Billing is based on subjective cost investment factors.
 
 9
  **Use
        of Estimates:**
  The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States requires management to make estimates
        and assumptions that affect the reported amounts of assets and liabilities
        and
        the disclosure of contingent assets and liabilities at the date of the financial
        statements as well as the reported amounts of revenues and expenses during
        the
        reporting period. Actual results could differ from those estimates. These
        estimates and assumptions relate to recording net revenue, collectibility
        of
        accounts receivable, and the realizability of other intangible assets, accruals,
        income taxes, inventory realization and other factors. Management has exercised
        reasonable judgment in deriving these estimates; however, actual results
        could
        differ from these estimates. Consequently, change in conditions could affect
        our
        estimates.
  **Fair
        Value of Financial Instruments:**
  The
        Company considers all highly liquid interest-earning investments with a maturity
        of three months or less at the date of purchase to be cash equivalents.
        Investments with maturities beyond one year may be classified as short-term
        based on their highly liquid nature and because such marketable securities
        represent the investment of cash that is available for current operations.
        All
        cash and short-term investments are classified as available for sale and
        are
        recorded at market value using the specific identification method; unrealized
        gains and losses (excluding other-than-temporary impairments) are reflected
        in
        other income.
  
 **Results
        of Operations**
 **Three
                  Months Ended**
              
              
              **Six
                  Months Ended****June
                  30**
              
              
              **June
                  30****2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006****REVENUES**Land
                  sales
              
              $
              1,782,908
              
              
              $
              4,529,287
              
              
              $
              10,861,901
              
              
              $
              4,529,287Other
              
              
              89,948
              
              
              
              35,329
              
              
              
              136,491
              
              
              
              79,452**Total
                  Revenue**
              
              
              1,872,856
              
              
              
              4,564,616
              
              
              
              10,998,392
              
              
              
              4,608,739**EXPENSES**Cost
                  of sales
              
              
              1,257,580
              
              
              
              3,287,874
              
              
              
              9,367,831
              
              
              
              3,337,032Administrative
              
              
              937,105
              
              
              
              1,864,705
              
              
              
              3,232,225
              
              
              
              2,596,882Interest
              
              
              83,646
              
              
              
              658,206
              
              
              
              172,957
              
              
              
              727,722Depreciation
              
              
              2,646
              
              
              
              2,425
              
              
              
              5,161
              
              
              
              4,676**Total
                  Expenses**
              
              
              2,280,977
              
              
              
              5,813,210
              
              
              
              12,778,174
              
              
              
              6,666,312**Income
                  (loss) before income taxes**
              
              
              (408,121
              )
              
              
              (1,248,594
              )
              
              
              (1,779,782
              )
              
              
              (2,057,573
              )**Income
                  taxes**
              
              
              (261,795
              )
              
              
              -
              
              
              
              (261,795
              )
              
              
              -**Net
                  income (loss)**
              
              $
              (669,916
              )
              
              $
              (1,248,594
              )
              
              $
              (2,041,577
              )
              
              $
              (2,057,573
              )
 
   10
  **THREE
        MONTHS ENDED JUNE 30, 2007 VS. THREE MONTHS ENDED JUNE 30,
        2006**
  Revenues
        of $1,872,856 for the three month period ended June 30, 2007 as compared
        to $
        4,564,616          for the
        three month period ended June 30, 2006 reflect the results principally from
        the
        sale of property.
 
 The
        cost
        of sales of $1,257,580 for the three month period ended June 30, 2007 as
        compared to the cost of sales of $3,287,874 for the three month period ended
        June 30, 2006 represents the cost of sales of land.
 
 Expenses
        from operations were $937,105 for the three month period ended June 30, 2007
        as
        compared with $1,864,705 for the respective prior year period. The decrease
        from
        2007 to 2006 is due primarily to decreases in expenses related to the
        amortization of pre-paid consulting services and stock based
        compensation.
 
 During
        the three month period ended June 30, 2007 the Company had net interest expense
        of $83,646 as compared with net interest expense of $658,206 during the three
        month period ended June 30, 2006, respectively.  This was due to the
        retirement of a convertible subordinated note.
 
 The
        Company had taxes of 261,795 for the three month period ended June 30, 2007
        as
        compared to taxes of $0 for the three month period ended June 30,
        2006.
 
 During
        the three month period ended June 30, 2007 the Company had a net loss of
        $669,916as compared
        to a net loss of $1,248,594 for the three month period ended June 30,
        2006.
 
 The
        Company had $24,357,017 in accounts payable and other liabilities for the
        period
        ended June 30, 2007 as compared to $41,673,312 in accounts payable and other
        liabilities for the period ended June 30, 2006.
 
 Stockholders'
        equity was $11,476,852 for the period ending June 30, 2007 compared to
        $7,845,809 for the period ended June 30, 2006.
 
 **SIX
        MONTHS ENDED JUNE 30, 2007 VS. SIX MONTHS ENDED JUNE 30,
        2006**
  Revenues
        of $10,998,392for the six month period ended June 30, 2007 as compared to
        $4,608,739
        for the six month period ended June 30, 2005 reflect the results from the
        sale
        of properties.
 
 The
        cost
        of sales of $9,367,831
        forthe six month period ended June 30, 2007 as compared to the cost of
        sales
        of $3,337,032 for the six month period ended June 30, 2006 represents the
        cost
        of sales of properties sold.
 
 Expenses
        from operations were $3,232,225for
        the six month period ended June 30, 2007 as compared with $2,596,882 for
        the
        respective prior year period. The increase from 2007 to 2006 is due primarily
        to
        increases in employees, consulting fees and related costs including legal
        and
        accounting fees.
 
 During
        the six month period ended June 30, 2007 the Company had net interest expense
        of
        $172,957as
        compared with net interest expense of $727,722 during the six month
        period ended June 30, 2006, respectively.   This was due to the
        retirement of a convertible subordinated note.
 
 The
        Company has $261,795 in income taxes for the six month period ended June
        30,
        2007 as compared to income taxes of $0 for the six month period ended June
        30,
        2006.
 
 During
        the six month period ended June 30, 2007 the Company had a net loss of $2,041,577
        as
        compared to a net loss of $2,057,573 for the six month period ended June
        30,
        2006.
 
 The
        Company had a $5,139,155 decrease in accounts payable and other liabilities
        for
        the period ended June 30, 2007 as compared with a $3,698,429 decrease in
        accounts payable and other liabilities for the period ended June 30,
        2006.
  Stockholders'
          equity decreased by $1,853,276 to $11,476,852 for the period ending June
          30,
          2007 compared to an increase of $651,706 for the period ended June 30,
          2006.
 11
 **LIQUIDITY
        AND CAPITAL RESOURCES**
 
 The
        Company’s ability to meet its obligations in the ordinary course of business is
        dependent upon its ability to establish profitable operations.  For
        the 6 month period of 2007, the Company had limited operating abilities,
        and, as
        a result, had negative cash flow from operations. The Company sold a property
        on
        January 5, 2007 which resulted in approximately $5.3 million in net cash
        flow.  The Company used $2.6 million of these funds to pay the
        Sapphire Note. The Company is seeking to raise additional financing through
        private equity financing for the purposes of acquiring entertainment related
        companies; financing existing entertainment related projects; acquisition
        of
        Pachinko parlors and further development of its existing
        properties.  Global also intends to sell properties to increase cash
        flows. We cannot predict whether we will be successful in obtaining sufficient
        capital to fund the further development of existing real estate projects,
        the
        acquisition of Pachinko Parlors, or the further development of our entertainment
        properties. If we are unable to obtain sufficient funds in the near future,
        such
        event will delay the further development of existing properties, the acquisition
        of Pachinko Parlors, and the further development of our entertainment projects
        and likely will have a material adverse impact on us and our business
        prospects.
 
 Global’s
        cash and cash equivalents decreased $55,064 during the six months ended June
        30,
        2007. Cash flows provided by operating activities of $4,731,493plus
        the effect of the exchange rate of $152,187were
        less than cash flows used by financing activities of $4,938,744.
 
 Cash
        flows from operating activities increased primarily from the sale of the
        Eggersdorf and Mountain Top properties for the six months ended June 30,
        2007.
        Financing activities used $2,400,000 in cash flow to pay off the Sapphire
        convertible secured note and $2,708,066 of these funds to reduce mortgages
        payable.   The Company increased by $169,322 loans from related
        parties.
 
 **EFFECT
        OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**
 
 In
        June 2006, the Financial Accounting Standards Board (“FASB”) issued
        Interpretation 48, “Accounting for Income Tax Uncertainties” (“FIN 48”). FIN 48
        defines the threshold for recognizing the benefits of tax return positions
        in
        the financial statements as “more-likely-than-not” to be sustained by the taxing
        authority. Recently issued literature also provides guidance on the
        de-recognition, measurement and classification of income tax uncertainties,
        along with any related interest and penalties. FIN 48 also includes guidance
        concerning accounting for income tax uncertainties in interim periods and
        increases the level of disclosures associated with any recorded income tax
        uncertainties. FIN 48 is effective for fiscal years beginning after
        December 15, 2006.  The Company expects to adopt the provisions
        of FIN 48 beginning in the first quarter of 2007.  The Company adopted
        the provisions of FIN 48 with no material impact.
 
 In
        September 2006, the FASB issued SFAS
        No. 157, “Fair Value Measurements,” which defines fair value, establishes a
        framework for measuring fair value under other accounting pronouncements
        that
        permit or require fair value measurements, changes the methods used to measure
        fair value and expands disclosures about fair value measurements. In particular,
        disclosures are required to provide information on the extent to which fair
        value is used to measure assets and liabilities; the inputs used to develop
        measurements; and the effect of certain of the measurements on earnings (or
        changes in net assets). SFAS No. 157 is effective for fiscal years beginning
        after November 15, 2007 and interim periods within those fiscal years. Early
        adoption, as of the beginning of an entity’s fiscal year, is also permitted,
        provided interim financial statements have not yet been issued. The Company
        expects to adopt the provisions of FIN 48 beginning in the first quarter
        of
        2008.  The Company is currently evaluating the potential impact, if
        any, that the adoption of SFAS No. 157 will have on its consolidated financial
        statements.
 
 In
        September 2006, the FASB issued SFAS
        No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
        Postretirement Plans - an amendment of FASB Standards No. 87, 88, 106, and
        132
        (R).”  which requires an employer to recognize the overfunded or
        underfunded status of a defined benefit plan as an asset or liability in
        its
        condensed consolidated balance sheet.  Under SFAS No. 158, actuarial
        gains and losses and prior service costs or credits that have not yet been
        recognized through earnings as net periodic benefit cost will be recognized
        in
        other comprehensive income, net of tax, until they are amortized as a component
        of net periodic benefit cost.  SFAS No. 158 is effective as of the end
        of the fiscal year ending after December 15, 2006 and shall not be applied
        retrospectively.  The Company believes at this time that the adoption
        of SFAS No. 158 will not have a material impact on its condensed consolidated
        financial statements as the Company does not have any defined benefit pension
        or
        other postretirement plans.
 
   12
 In
          September 2006, the Securities and
          Exchange Commission issued Staff Accounting Bulletin No. 108, “Considering the
          Effects of Prior Year Misstatements when Quantifying Misstatements in Current
          Year Financial Statements” (“SAB No. 108”). SAB No. 108 provides guidance on how
          prior year misstatements should be considered when quantifying misstatements
          in
          the current year financial statements. SAB No. 108 requires registrants
          to
          quantify misstatements using both a balance sheet and an income statement
          approach and evaluate whether either approach results in quantifying a
          misstatement that, when all relevant quantitative and qualitative factors
          are
          considered, is material. SAB No. 108 does not change the guidance in SAB
          No. 99,
“Materiality,” when evaluating the materiality of misstatements.
 SAB
        No. 108 is effective for fiscal
        years ending after November 15, 2006. Upon initial application, SAB No. 108
        permits a one-time cumulative effect adjustment to beginning retained earnings.
        The Company adopted SAB No. 108 for the fiscal year ended December 31,
        2006.
 
 In
        February 2007, the FASB issued SFAS
        No. 159, *The Fair Value Option for Financial Assets and Financial
        Liabilities*(“SFAS 159”).  SFAS 159 allows entities to
        measure at fair value many financial instruments and certain other assets
        and
        liabilities that are not otherwise required to be measured at fair value.
        SFAS 159 is effective for fiscal years beginning after November 15,
        2007. We have not determined what impact, if any, that adoption will have
        on our
        results of operations, cash flows or financial position.
 
 
 **ITEM
        3. CONTROLS AND PROCEDURES**
 
 a)
              Evaluation
                  of Disclosure Controls and
                  Procedures.  As of June 30, 2007, the Company’s management
                  carried out an evaluation, under the supervision of the Company’s Chief
                  Executive Officer and the Chief Financial Officer, of the effectiveness
                  of
                  the design and operation of the Company’s system of disclosure controls
                  and procedures pursuant to Rules 13a-15(d) and 15d-15(d) under
                  the
                  Securities Exchange Act of 1934 (the “Exchange Act”).  Based
                  upon that evaluation, the Chief Executive Officer and Chief Financial
                  Officer concluded that the Company’s disclosure controls and procedures
                  were effective, as of the date of their evaluation, for the purposes
                  of
                  recording, processing, summarizing and timely reporting material
                  information required to be disclosed in reports filed by the Company
                  under
                  the Exchange Act.
 
 b)
              Changes
                  in internal controls. There were no changes in the Company’s internal
                  controls over financial reporting, that occurred during the period
                  covered
                  by this report that have materially affected, or are reasonably
                  likely to
                  materially effect, the Company’s internal control over financial
                  reporting.
  
 13
  **PART
        II. OTHER INFORMATION**
 
 **ITEM
        1 LEGAL PROCEEDINGS**
 
 From
        time to time, the Company may
        become involved in various lawsuits and legal proceedings which arise in
        the
        ordinary course of business. However, litigation is subject to inherent
        uncertainties, and an adverse result in these or other matters may arise
        from
        time to time that may harm the Company's business. Except as otherwise
        disclosed herein, the Company is currently not aware of any such legal
        proceedings or claims that it believes will have, individually or in the
        aggregate, a material adverse affect on its business, financial condition
        or
        operating results.
 
 **ITEM
        2 UNREGISTERED SALES OF EQUITY SECURITIES
        AND USE OF PROCEEDS.**
 
 On
        April
        25, 2007, the Company agreed to issue 100,000 of its common shares to a
        consultant as consideration for professional fees incurred.  The
        Company relied upon the exemption from registration as set forth in Section
        4(2)
        of the Securities Act and/or Rule 506 of Regulation D for the issuance of
        these
        securities.
 
 **ITEM
        3DEFAULTS UPON SENIOR SECURITIES.**
 
 There
        have not been any defaults on any senior securities during the three-months
        ended June 30, 2007.
 
 **ITEM
        4SUBMISSION OF MATTERS TO A VOTE OF SECURITY
        HOLDERS**
 
 No
        matters were submitted to the security holders of the Company for a vote
        during
        the three-months ended June 30, 2007.
 
 **ITEM
        5OTHER
        INFORMATION**
 
 The
        Company has no other information to report for the three-months ended June
        30,
        2007.
 
 **ITEM
        6EXHIBITS**
 
 ***Exhibits:***
 
 **Number**
              
              **Exhibit**3.1
              
              Certificate
                  of Incorporation (incorporated by reference to Exhibit 3.1 to the
                  Company’s Registration Statement on Form SB-2, filed on July 21,
                  2000)3.2
              
              Amendment
                  to Certificate of Incorporation (incorporated by reference to Exhibit
                  3.2
                  to the Company’s Registration Statement on Form SB-2, filed on July 21,
                  2000)3.3
              
              By-Laws
                  (incorporated by reference to Exhibit 3.3 to the Company’s Registration
                  Statement on Form SB-2, filed on July 21, 2000)3.4
              
              Amendment
                  to Certificate of Incorporation (incorporated by reference to Exhibit
                  3.3
                  to the Company’s Registration Statement on Form SB-2/A, filed on October
                  31, 2000)3.5
              
              Amendment
                  to Certificate of Incorporation (incorporated by reference to Exhibit
                  3.5
                  to the Company’s Annual Report on Form 10-KSB, filed on April 14,
                  2004)3.6
              
              Amendment
                  to Certificate of Incorporation  (incorporated by reference to
                  Exhibit 3.6 to the Company’s Annual Report on Form 10-KSB, filed on May
                  19, 2005)3.7
              
              Certificate
                  of Ownership and Merger (incorporated by reference to Exhibit 3.3
                  to the
                  Company’s Quarterly Report on Form 10-QSB, filed on August 19,
                  2005)3.8
              
              Amendment
                  to Certificate of Incorporation (incorporated by reference to Exhibit
                  3.1
                  to the Company’s Current Report on Form 8-K, filed on January 30,
                  2006)31.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
                  Act of 200231.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
                  Act of 200232.1
              
              Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 2002 (Chief Executive
                  Officer)32.2
              
              Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 2002 (Chief Financial
                  Officer)
 
 
 14
 
 
 **SIGNATURES**
 
 Pursuant
        to the requirements of the Exchange Act, the registrant caused this report
        to be
        signed on its behalf by the undersigned, thereunto duly authorized.
  **GLOBAL
                  REALTY DEVELOPMENT CORP.**
                **(Registrant)**Date:  August
                10,
                2007
              By:
              /s/ Robert
                KohnRobert
                Kohn,Chief
                Executive Officer