**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

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

**GLOBALOPTIONS      GROUP, INC**

| Delaware                                                                                        |   | 30-0342273                                          |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization)                   |   | (I.R.S.                Employer Identification No.) |
|                                                                                            |   |                                                |
| 75                Rockefeller Plaza, 27th                FloorNew                York, New York |   | 10019                                               |
| (Address                of Principal Executive Offices)                                         |   | (Zip                Code)                           |

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**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Form      10-Q**

**September      30, 2008**

**TABLE      OF CONTENTS**

| PART                I           |                                                                                                                                                                                    |   |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                 |                                                                                                                                                                                    |   |
| FINANCIAL                INFORMATION |                                                                                                                                                                                    |
|                                 |                                                                                                                                                                                    |   |
| ITEM                1.               | Financial                Statements.                                                                                                                                                    |   |
|                                 | Condensed                Consolidated Balance Sheets as of September 30, 2008 (Unaudited)                and                December 31, 2007                                           | 1      |
|                                 | Condensed                Consolidated Statements of Operations for the Three and Nine Months                Ended                September                30, 2008 and 2007 (Unaudited) | 2      |
|                                 | Condensed                Consolidated Statement of Stockholders’ Equity for the Nine Months Ended                September                30, 2008 (Unaudited)                    | 3      |
|                                 | Condensed                Consolidated Statements of Cash Flows for the Nine Months                Ended September                30, 2008 and 2007 (Unaudited)                     | 4      |
|                                 | Notes                to Condensed Consolidated Financial Statements (Unaudited)                                                                                                         | 8      |
|                                 |                                                                                                                                                                                    |   |
| ITEM                2.               | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations.                                                              | 27     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                3.               | Quantitative                and Qualitative Disclosures About Market Risk.                                                                                                              | 37     |
|                                 |                                                                                                                                                                                    |   |
| ITEM 4T.                        | Controls                and Procedures.                                                                                                                                                 | 37     |
|                                 |                                                                                                                                                                                    |   |
| PART                II          |                                                                                                                                                                                    |   |
|                                 |                                                                                                                                                                                    |   |
| OTHER                INFORMATION     |                                                                                                                                                                                    |
|                                 |                                                                                                                                                                                    |   |
| ITEM                1.               | Legal                Proceedings.                                                                                                                                                       | 38     |
|                                 |                                                                                                                                                                                    |   |
| ITEM 1A.                        | Risk                Factors.                                                                                                                                                            | 39     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                2.               | Unregistered                Sales of Equity Securities and Use of Proceeds.                                                                                                             | 39     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                3.               | Defaults                Upon Senior Securities.                                                                                                                                         | 39     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                4.               | Submission                of Matters to a Vote of Security Holders.                                                                                                                     | 39     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                5.               | Other                Information.                                                                                                                                                       | 40     |
|                                 |                                                                                                                                                                                    |   |
| ITEM                6.               | Exhibits.                                                                                                                                                                               | 41     |
|                                 |                                                                                                                                                                                    |   |
| SIGNATURES.                          | 42                                                                                                                                                                                      |

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**PART      I - Financial Information**

**Item      1. Condensed Consolidated Financial Statements**

**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Balance Sheets**

**(dollars      in thousands, except per share amount)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **September 30,** |    | **December 31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2008**               |    | **2007**              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **(unaudited)**        |    |                  |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   |    |                  |   |   |   |
| Current                assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   |    |                  |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                      | 2,969   |                  | $      | 4,426 |   |
| Accounts                receivable, net of allowance for doubtful accounts                of                $2,881                at                September 30, 2008 and $2,459 at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   | 31,287  |                  |   | 25,213 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   | 2,759   |                  |   | 2,326 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 896     |                  |   | 792 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Total                current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   | 37,911  |                  |   | 32,757 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Property                and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 5,528   |                  |   | 5,570 |   |
| Intangible                assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   | 7,878   |                  |   | 7,270 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 19,968  |                  |   | 19,768 |   |
| Security                deposits and other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   | 538     |                  |   | 578 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                      | 71,823  |                  | $      | 65,943 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                   |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   |    |                  |   |   |   |
| Line                of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                      | 6,000   |                  | $      | - |   |
| Notes                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                   | 499     |                  |   | 800 |   |
| Obligation                to issue common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                   | -       |                  |   | 2,160 |   |
| Accounts                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                   | 6,028   |                  |   | 5,723 |   |
| Deferred                revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   | 732     |                  |   | 543 |   |
| Accrued                compensation and related benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 5,120   |                  |   | 3,740 |   |
| Other                current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 4,262   |                  |   | 2,170 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Total                current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   | 22,641  |                  |   | 15,136 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Long-term                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   |    |                  |   |   |   |
| Notes                payable, less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   | -       |                  |   | 396 |   |
| Other                long-term obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 843     |                  |   | 454 |   |
| Total                long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 843     |                  |   | 850 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   | 23,484  |                  |   | 15,986 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Commitments                and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                   |    |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Stockholders'                equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Preferred                stock, $0.001 par value, 14,900,000 shares authorized; no shares                issued or                outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                   | -       |                  |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |    |                  |   |   |   |
| Series                D convertible preferred stock, non-voting, $0.001 par value, 100,000                shares authorized,                55,388.37 shares issued and outstanding at September 30, 2008 and                55,989.32 shares issued and outstanding at December 31,                2007, dividends do not accrue, no anti-dilution                protection,                convertible into 3,692,743 and 3,732,821 shares of common stock at                September 30, 2008 and December 31, 2007,                respectively, liquidation preference of $0.001 per share or                $0 |   |                   | -       |                  |   | - |   |
| Common                stock, $0.001 par value; 100,000,000 shares authorized;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                   |    |                  |   |   |   |
| 10,470,957                shares issued and 10,451,390 shares outstanding at September 30,                2008, and                9,660,269 shares issued and outstanding at December 31,                2007                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   | 10      |                  |   | 10 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 107,728 |                  |   | 102,537 |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   | (59,349 | )                     |   | (52,590 | ) |
| Treasury                stock; at cost, 19,567 and 0 shares at September 30, 2008 and December                31,                2007, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   | (50     | )                     |   | - |   |
| Total                stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   | 48,339  |                  |   | 49,957 |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                      | 71,823  |                  | $      | 65,943 |   |

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**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Operations**

**(Unaudited)**

**(dollars      in thousands, except per share amounts)**

|                                                                                                   |   |  **For the Three Months Ended ** |      | **For the Nine Months Ended** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|---------------------------------------------------|--------|
|                                                                                                   |   |  **September 30, **                             |      | **September 30, **                      |   |
|                                                                                                   |   |  **2008**                                                 |      | **2007**                                          |   | **2008** |   | **2007** |   |
|                                                                                                   |   |                                                      |      |                                              |   |   |   |   |   |
| Revenues                                                                                               |   | $                                                              | 29,488    |                                              | $      | 21,574 |   | $ | 77,241 |   | $ | 65,428 |   |
|                                                                                                   |   |                                                           |      |                                              |   |  |   |   |   |   |   |  |   |
| Cost                of revenues                                                                        |   |                                                           | 16,876    |                                              |   | 11,479 |   |   | 44,349 |   |   | 35,833 |   |
| Gross                profit                                                                            |   |                                                           | 12,612    |                                              |   | 10,095 |   |   | 32,892 |   |   | 29,595 |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                                     |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Selling                and marketing                                                                   |   |                                                           | 3,154     |                                              |   | 1,358 |   |   | 8,374 |   |   | 12,258 |   |
|                                                                                                   |   |                                                           |      |                                              |   |  |   |   |   |   |   |  |   |
| General                and administrative                                                              |   |                                                           | 9,801     |                                              |   | 13,143 |   |   | 31,103 |   |   | 35,374 |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                                                                |   |                                                           | 12,955    |                                              |   | 14,501 |   |   | 39,477 |   |   | 47,632 |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Loss                from operations                                                                    |   |                                                           | (343      | )                                                 |   | (4,406 | ) |   | (6,585 | ) |   | (18,037 | ) |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                                 |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                         |   |                                                           | 2         |                                              |   | 16 |   |   | 24 |   |   | 268 |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Interest                (expense)                                                                      |   |                                                           | (74       | )                                                 |   | (540 | ) |   | (198 | ) |   | (745 | ) |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Other                income                                                                            |   |                                                           | -         |                                              |   | - |   |   | - |   |   | 100 |   |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Other                income (expense), net                                                             |   |                                                           | (72       | )                                                 |   | (524 | ) |   | (174 | ) |   | (377 | ) |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                |   | $                                                              | (415      | )                                                 | $      | (4,930 | ) | $ | (6,759 | ) | $ | (18,414 | ) |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net loss per share                                                    |   | $                                                              | (0.04     | )                                                 | $      | (1.45 | ) | $ | (0.70 | ) | $ | (6.21 | ) |
|                                                                                                   |   |                                                           |      |                                              |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding - basic and                diluted |   |                                                           | 9,734,067 |                                              |   | 3,406,520 |   |   | 9,660,684 |   |   | 2,963,709 |   |

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**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statement of Stockholders' Equity**

**For      the Nine Months Ended September 30, 2008**

**(Unaudited)**

**(dollars      in thousands)**

|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   | **Series D**     |   |                 |   |        |      |        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------------------------|--------|--------------------------|--------|-------------------|--------|-----------------------|--------|----------------------|--------|-------------|-----------|-------------|--------|
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   | **Convertible**       |   | **Additional ** |   |        |      |        |   |
|                                                                                                                                                |   | **Common Stock ** |       | **Treasury Shares** |   | **Preferred Stock** |   | **Paid-in ** |   | **Accumulated ** |   |                 |   |
|                                                                                                                                                |   | **Shares **            |       | **Amount**               |   | **Shares**               |   | **Amount**        |   | **Shares**            |   | **Amount**           |   | **Capital** |      | **Deficit** |   | **Total** |   |
| Balance,                January 1, 2008                                                                                                             |   |                        | 9,660,269  |                     | $      | 10                       |   |              | -      |                  | $      | -                    |   |        | 55,989.32 |        | $      | - |   | $ | 102,537 |   | $ | (52,590 | ) | $ | 49,957 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to consultants for services                                                                                             |   |                        | 26,984     |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 167 |   |   | - |   |   | 167 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                of treasury shares                                                                                                          |   |                        | -          |                     |   | -                        |   |              | 19,567 |                  |   | (50                  | )      |        | -         |        |   | - |   |   | - |   |   | - |   |   | (50 | ) |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock to sellers of JLWA in satisfaction of $2,160 obligation                to                issue common stock |   |                        | 225,000    |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 2,160 |   |   | - |   |   | 2,160 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |  |   |
| Issuance                of common stock to sellers of JLWA, subject to clawback                                                                     |   |                        | 75,000     |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock in connection with the conversion of Series D Convertible                Preferred Stock                    |   |                        | 40,064     |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | (600.95   | )           |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock to executive employees for future services                                                                  |   |                        | 437,500    |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock under employee stock purchase plan                                                                          |   |                        | 6,140      |                     |   | -                        |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   | 10 |   |   |   |   |   | 10 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                based compensation - restricted stock vested                                                                                   |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 926 |   |   | - |   |   | 926 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |  |   |
| Stock                based compensation - employee stock purchase plan                                                                              |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 3 |   |   | - |   |   | 3 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |  |   |
| Amortization                of consultant stock option costs                                                                                        |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 93 |   |   | - |   |   | 93 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of employee stock options costs                                                                                         |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 1,558 |   |   | - |   |   | 1,558 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of consultant restricted stock unit costs                                                                               |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   | 2 |   |   |   |   |   | 2 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of employee restricted stock unit costs                                                                                 |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | 272 |   |   | - |   |   | 272 |   |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                                                             |   |                        | -          |                     |   | -                        |   |              | -      |                  |   | -                    |   |        | -         |        |   | - |   |   | - |   |   | (6,759 | ) |   | (6,759 | ) |
|                                                                                                                                                |   |                        |       |                     |   |                     |   |              |   |                  |   |                 |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2008                                                                                                          |   |                        | 10,470,957 |                     | $      | 10                       |   |              | 19,567 |                  | $      | (50                  | )      |        | 55,388.37 |        | $      | - |   | $ | 107,728 |   | $ | (59,349 | ) | $ | 48,339 |   |

----

**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Cash Flows**

**(Unaudited)**

**(dollars      in thousands)**

|                                                                                                      |   |  **For the Nine Months Ended September 30, ** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |  **2008**                                                                        |   | **2007** |   |
| Cash                flows from operating activities:                                                      |   |                                                                                  |   |   |   |   |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Net                loss                                                                                   |   | $                                                                                     | (6,759 | ) | $ | (18,414 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                                                                                  |        |   |   |  |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Provision                for bad debts                                                                    |   |                                                                                  | 148    |   |   | 1,992 |   |
|                                                                                                      |   |                                                                                  |        |   |   |   |   |
| Depreciation                and amortization                                                              |   |                                                                                  | 3,262  |   |   | 2,917 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Deferred                rent                                                                              |   |                                                                                  | 439    |   |   | (21 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Stock-based                compensation                                                                   |   |                                                                                  | 3,021  |   |   | 2,659 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Loss                on disposition of equipment                                                           |   |                                                                                  | 27     |   |   | - |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Changes                in operating assets:                                                               |   |                                                                                  |        |   |   |  |   |
|                                                                                                      |   |                                                                                  |        |   |   |  |   |
| Accounts                receivable                                                                        |   |                                                                                  | (5,021 | ) |   | (4,663 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Inventories                                                                                               |   |                                                                                  | (433   | ) |   | (103 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Prepaid                expenses and other current assets                                                  |   |                                                                                  | (104   | ) |   | (60 | ) |
|                                                                                                      |   |                                                                                  |        |   |   |  |   |
| Security                deposits and other assets                                                         |   |                                                                                  | 40     |   |   | (261 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Changes                in operating liabilities:                                                          |   |                                                                                  |        |   |   |  |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Accounts                payable                                                                           |   |                                                                                  | 288    |   |   | (86 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Deferred                revenues                                                                          |   |                                                                                  | 189    |   |   | 259 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Accrued                compensation and related benefits                                                  |   |                                                                                  | 1,380  |   |   | 1,249 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Due                to former members of JLWA for earnout                                                  |   |                                                                                  | -      |   |   | 7,732 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Other                current liabilities                                                                  |   |                                                                                  | 355    |   |   | (635 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Other                long-term obligations                                                                |   |                                                                                  | (41    | ) |   | - |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Total                adjustments                                                                          |   |                                                                                  | 3,550  |   |   | 10,979 |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Net                cash used in operating activities                                                      |   |                                                                                  | (3,209 | ) |   | (7,435 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Cash                flows from investing activities:                                                      |   |                                                                                  |   |   |   |   |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Purchases                of property and equipment                                                        |   |                                                                                  | (921   | ) |   | (1,020 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Purchase                of intangible assets                                                              |   |                                                                                  | (42    | ) |   | - |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Acquisition                of FAIS                                                                        |   |                                                                                  | (2,548 | ) |   | - |   |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Acquisition                of On Line Consulting                                                          |   |                                                                                  | -      |   |   | (988 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Acquisition                of Facticon                                                                    |   |                                                                                  | -      |   |   | (1,300 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Acquisition                of Bode, less cash acquired of $284                                            |   |                                                                                  | -      |   |   | (12,216 | ) |
|                                                                                                      |   |                                                                                  |   |   |   |   |   |
| Net                cash used in investing activities                                                      |   |                                                                                  | (3,511 | ) |   | (15,524 | ) |

----

**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Cash Flows, continued**

**(Unaudited)**

**(dollars      in thousands)**

|                                                                                                                   |   | **For the Nine Months Ended September 30, ** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|
|                                                                                                                   |   | **2008**                                                                        |   | **2007** |   |
|                                                                                                                   |   |                                                                            |   |   |   |
| Cash                flows from financing activities:                                                                   |   |                                                                            |   |   |   |   |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Net                proceeds from line of credit                                                                        |   | $                                                                               | 6,000  |   | $ | 7,828 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Repayment                of notes payable for acquisitions                                                             |   |                                                                            | (700   | ) |   | (3,403 | ) |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Accretion                of OCS discounted notes                                                                       |   |                                                                            | 3      |   |   | - |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Proceeds                from exercise of stock options                                                                 |   |                                                                            | -      |   |   | 48 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Proceeds                from issuance of stock in connection with ESPP                                                 |   |                                                                            | 10     |   |   | - |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Repurchase                of common stock                                                                              |   |                                                                            | (50    | ) |   | - |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Deferred                offering costs                                                                                 |   |                                                                            | -      |   |   | (67 | ) |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Net                cash provided by financing activities                                                               |   |                                                                            | 5,263  |   |   | 4,406 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Net                decrease in cash and cash equivalents                                                               |   |                                                                            | (1,457 | ) |   | (18,553 | ) |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Cash                and cash equivalents - beginning of period                                                         |   |                                                                            | 4,426  |   |   | 21,533 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Cash                and cash equivalents - end of period                                                               |   | $                                                                               | 2,969  |   | $ | 2,980 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Supplemental                disclosure of cash flow information:                                                       |   |                                                                            |   |   |   |   |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Cash                paid during the period for interest                                                                |   | $                                                                               | 208    |   | $ | 558 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Supplemental                disclosures of non-cash investing and financing                activities:                 |   |                                                                            |   |   |   |   |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Common                stock issued to settle the obligation to issue common                stock                       |   | $                                                                               | 2,160  |   | $ | - |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Accrual                of deferred offering costs                                                                      |   | $                                                                               | -      |   | $ | 175 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Common                stock issued upon the cashless exercise of stock options                                         |   | $                                                                               | -      |   | $ | 318 |   |
|                                                                                                                   |   |                                                                            |   |   |   |   |   |
| Obligation                to issue common stock and notes payable issued to fund JLWA earnout                liability |   | $                                                                               | -      |   | $ | 12,960 |   |

----

**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Cash Flows, continued**

**(Unaudited)**

**(dollars      in thousands)**

|                                                                                                                      |   | **For the Nine Months Ended September 30, ** |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|
|                                                                                                                      |   | **2008**                                                                        |   | **2007** |   |
|                                                                                                                      |   |                                                                            |   |   |   |
| Supplemental                non-cash investing and financing activity - acquisition of                FAIS:               |   |                                                                            |   |   |   |   |   |
|                  Assets acquired and liabilities assumed:                                                            |   |                                                                            |   |   |   |   |   |
| Accounts                receivable                                                                                        |   | $                                                                               | 1,201  |   | $ | - |   |
| Property                and equipment                                                                                     |   |                                                                            | 102    |   |   | - |   |
| Intangible                assets                                                                                          |   |                                                                            | 2,790  |   |   | - |   |
| Accounts                payable                                                                                           |   |                                                                            | (17    | ) |   | - |   |
| Other                current liabilities                                                                                  |   |                                                                            | (322   | ) |   | - |   |
| Earnout                liability                                                                                          |   |                                                                            | (1,206 | ) |   | - |   |
|                                                                                                                      |   |                                                                            |        |   |   |  |   |
| Total                purchase price, paid in cash                                                                         |   | $                                                                               | 2,548  |   | $ | - |   |
|                                                                                                                      |   |                                                                            |   |   |   |   |   |
| Supplemental                non-cash investing and financing activity - acquisition of On Line                Consulting: |   |                                                                            |   |   |   |   |   |
|                  Assets acquired and liabilities assumed:                                                            |   |                                                                            |   |   |   |   |   |
| Property                and equipment                                                                                     |   | $                                                                               | -      |   | $ | 97 |   |
| Intangible                assets                                                                                          |   |                                                                            | -      |   |   | 1,199 |   |
| Goodwill                recognized on purchase business combination                                                       |   |                                                                            | 200    |   |   | 1,844 |   |
| Accounts                payable, accrued expenses and deferred revenues                                                   |   |                                                                            | -      |   |   | (198 | ) |
| Other                current liabilities                                                                                  |   |                                                                            | -      |   |   | (46 | ) |
|                                                                                                                      |   |                                                                            |   |   |   |   |   |
| Total                purchase price                                                                                       |   |                                                                            | 200    |   |   | 2,896 |   |
|                                                                                                                      |   |                                                                            |   |   |   |   |   |
| Less:                Cash paid to acquire On Line Consulting                                                              |   |                                                                            | -      |   |   | (974 | ) |
|  Non-cash                consideration to seller                                                                     |   | $                                                                               | 200    |   | $ | 1,922 |   |
|                                                                                                                      |   |                                                                            |   |   |   |   |   |
| Non-cash                consideration consisted of:                                                                       |   |                                                                            |   |   |   |   |   |
| Common                stock issued to acquire On Line Consulting                                                          |   | $                                                                               | -      |   | $ | 1,350 |   |
| Amount                due to seller                                                                                       |   |                                                                            | -      |   |   | 14 |   |
| Notes                payable issued to seller                                                                             |   |                                                                            | -      |   |   | 558 |   |
| Total                non-cash consideration                                                                               |   | $                                                                               | -      |   | $ | 1,922 |   |

----

**GLOBALOPTIONS      GROUP, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Cash Flows, continued**

**(Unaudited)**

**(dollars      in thousands)**

|                                                                                                            |   | **For                the Nine Months Ended September 30,** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                            |   | **2008**                                                   |   | **2007** |   |
|                                                                                                            |   |                                                       |   |   |   |
| Supplemental                non-cash investing and financing activity - acquisition of                Bode:     |   |                                                       |   |   |   |   |   |
|  Assets                acquired and liabilities assumed:                                                   |   |                                                       |   |   |   |   |   |
| Accounts                receivable                                                                              |   | $                                                          | -      |   | $ | 5,511 |   |
| Inventories                                                                                                     |   |                                                       | -      |   |   | 2,629 |   |
| Other                current assets (including cash of $284)                                                    |   |                                                       | -      |   |   | 561 |   |
| Property                and equipment                                                                           |   |                                                       | -      |   |   | 4,133 |   |
| Intangible                assets                                                                                |   |                                                       | -      |   |   | 310 |   |
| Goodwill                recognized on purchase business combination                                             |   |                                                       | -      |   |   | 1,267 |   |
| Accounts                payable, accrued expenses and deferred rent obligations                                 |   |                                                       | -      |   |   | (1,219 | ) |
|                                                                                                            |   |                                                       |   |   |   |   |   |
| Total                purchase price                                                                             |   |                                                       | -      |   |   | 13,192 |   |
|                                                                                                            |   |                                                       |   |   |   |   |   |
| Less:                Cash acquired                                                                              |   |                                                       | -      |   |   | (284 | ) |
| Less:                Cash paid to acquire Bode                                                                  |   |                                                       | -      |   |   | (12,216 | ) |
| Non-cash                consideration to seller                                                                 |   | $                                                          | -      |   | $ | 692 |   |
|                                                                                                            |   |                                                       |   |   |   |   |   |
| Supplemental                non-cash investing and financing activity - acquisition of                Facticon: |   |                                                       |   |   |   |   |   |
|  Assets                acquired and liabilities assumed:                                                   |   |                                                       |   |   |   |   |   |
| Accounts                receivable                                                                              |   | $                                                          | -      |   | $ | 759 |   |
| Property                and equipment                                                                           |   |                                                       | -      |   |   | 34 |   |
| Intangible                assets                                                                                |   |                                                       | -      |   |   | 120 |   |
| Goodwill                recognized on purchase business combination                                             |   |                                                       | -      |   |   | 2,420 |   |
| Accounts                payable, accrued expenses and deferred revenues                                         |   |                                                       | -      |   |   | (533 | ) |
|                                                                                                            |   |                                                       |        |   |   |  |   |
| Total                purchase price                                                                             |   |                                                       | -      |   |   | 2,800 |   |
|                                                                                                            |   |                                                       |        |   |   |  |   |
| Less:                Cash paid to acquire Facticon                                                              |   |                                                       | -      |   |   | (1,300 | ) |
|  Non-cash                consideration to seller                                                           |   | $                                                          | -      |   | $ | 1,500 |   |
|                                                                                                            |   |                                                       |   |   |   |   |   |
| Non-cash                consideration consisted of :                                                            |   |                                                       |   |   |   |   |   |
| Note                payable issued to seller                                                                    |   | $                                                          | -      |   | $ | 100 |   |
| Common                stock issued to acquire Facticon                                                          |   |                                                       | -      |   |   | 1,400 |   |
| Total                non-cash consideration                                                                     |   | $                                                          | -      |   | $ | 1,500 |   |

----

**1.       Nature of Operations**

.

----

**2.      Basis of Presentation**

**3.       Summary of Significant Accounting Policies**

***Income      Taxes***

***Net      Loss Per Common Share***

----

**3.       Summary of Significant Accounting Policies, continued**

***Reclassifications***

***Recently      Implemented Accounting Pronouncements***

***Recent      Accounting Pronouncements***

SFAS      141R      is      effective for business combinations with an acquisition date on or after the      beginning of the first annual reporting period beginning on or after December      15, 2008. The Company expects SFAS      141R      to      have an impact on the accounting for any future business acquisitions as of      the      effective date.   

----

| **3.** | **Summary                of Significant Accounting Policies,                continued** |
|--------|-----------------------------------------------------------------------------------------|

***Recent      Accounting Pronouncements, continued***

| **4.** | **Acquisitions** |
|--------|------------------|

| FAIS Revenue for the Twelve Months Ending April 20, 2009 |   | Amount to be Paid on the 90th Day from the FirstAnniversary of the Closing Date |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Less                  then $10,500                                                                    |   | $                                                                                                                                                     | -      |   |
| Between                  $10,500 and $12,500                                                          |   | $                                                                                                                                                     | 250    |   |
| Between                  $12,500 and $14,500                                                          |   | $                                                                                                                                                     | 1,000  |   |
| Greater                  than $14,500                                                                 |   | $                                                                                                                                                     | 2,000  |   |

----

**4.      Acquisitions, continued**

| Intangible Asset Category  |   | Amortization Periodin years |                   |
|-------------------------------------------|--------|---------------------------------------|------------------------|
| Non-compete                agreements     |   |                                  | 3                years |   |
| Client                relationships       |   |                                  | 7                years |   |

|                                                                                             |   | Fair Value |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------|--------|
| Accounts                receivable                                                               |   | $               | 1,201  |   |
| Property                and equipment                                                            |   |            | 102    |   |
| Intangible                asset –  non-complete agreements                            |   |            | 290    |   |
| Intangible                asset –  client relationships                               |   |            | 2,500  |   |
| Accounts                payable                                                                  |   |            | (17    | ) |
| Accrued                liabilities                                                               |   |            | (48    | ) |
| Cost                of exit activities                                                           |   |            | (274   | ) |
| Earnout                liability                                                                 |   |            | (1,206 | ) |
|                                                                                             |   |            |   |   |
| Net                fair value assigned to assets acquired and liabilities                assumed |   | $               | 2,548  |   |

----

**4.**
**Acquisitions,      continued**

|                                              |   | Fair Value |   |
|---------------------------------------------------|--------|-----------------|--------|
| Cash                                              |   | $               | 2,164  |   |
| Broker                fee                         |   |            | 350    |   |
| Legal                fee                          |   |            | 34     |   |
| Total                Purchase Price Consideration |   | $               | 2,548  |   |

***Unaudited      Pro-Forma Financial Information***

|                                                                                                                  |   | For the Three Months Ended September 30, |      | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |   | For the Nine Months Ended September 30, |      |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
|                                                                                                                  |   | 2008                                                                   |      | 2007                                                                   |   | 2008                                                                  |   | 2007                                                                  |      |
|                                                                                                                  |   |                                                                   |      |                                                                   |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Revenues                                                                                                              |   | $                                                                      | 29,488    |                                                                   | $      | 24,634                                                                |   | $                                                                     | 80,233    |   | $ | 68,620 |   |
|                                                                                                                  |   |                                                                   |      |                                                                   |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Net                loss                                                                                               |   | $                                                                      | (415      | )                                                                      | $      | (5,658                                                                | )      | $                                                                     | (7,916    | ) | $ | (20,208 | ) |
|                                                                                                                  |   |                                                                   |      |                                                                   |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro-forma                basic and diluted net loss per common share (not                rounded)                     |   | $                                                                      | (0.04     | )                                                                      | $      | (1.66                                                                 | )      | $                                                                     | (0.82     | ) | $ | (6.81 | ) |
|                                                                                                                  |   |                                                                   |      |                                                                   |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro-forma                weighted average common                shares outstanding - basic                and diluted |   |                                                                   | 9,734,067 |                                                                   |   | 3,406,520                                                             |   |                                                                  | 9,660,684 |   |   | 2,967,459 |   |

----

**5.      Inventories**

|                                                        |   | As                  of             |   |
|-------------------------------------------------------------|--------|------------------------------------|--------|
|                                                        |   | September30,                  2008 |   | December                  31,                  2007 |   |
| Raw                  materials                              |   | $                                  | 1,327  |   | $ | 900 |   |
| Work                  in progress – DNA Analysis |   |                               | 300    |   |   | 480 |   |
| Finished                  goods                             |   |                               | 1,132  |   |   | 946 |   |
| Total                                                       |   | $                                  | 2,759  |   | $ | 2,326 |   |

** 6.       Intangible Assets and Goodwill**

***Intangible      Assets***

:

|                                                                                                |   | Trade                Names |   | Developed                Technology |   | Non-Compete                Agreements |   | Client                Relationships |   | Patents |   | Gross                Amounts |   | Accumulated                Amortization |   | Total  |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------|--------|-------------------------------------|--------|---------------------------------------|--------|-------------------------------------|--------|---------|--------|------------------------------|--------|-----------------------------------------|--------|--------|--------|
| Balance                as of January 1, 2008                                                        |   | $                          | 2,560  |                                | $      | 440                                   |   | $                                   | 1,499  |    | $      | 7,360                        |   | $                                       | 70     |   | $      | 11,929 |   | $ | (4,659 | ) | $ | 7,270 |   |
| Additions:                                                                                     |   |                       |   |                                |   |                                  |   |                                |   |    |   |                         |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition                of FAIS (See Note 4)                                                     |   |                       | -      |                                |   | -                                     |   |                                | 290    |    |   | 2,500                        |   |                                    | -      |   |   | 2,790 |   |   | - |   |   | 2,790 |   |
| Costs                of patents                                                                     |   |                       | -      |                                |   | -                                     |   |                                | -      |    |   | -                            |   |                                    | 42     |   |   | 42 |   |   | - |   |   | 42 |   |
| Amortization                                                                                        |   |                       | -      |                                |   | -                                     |   |                                | -      |    |   | -                            |   |                                    | -      |   |   | - |   |   | (2,224 | ) |   | (2,224 | ) |
|                                                                                                |   |                       |   |                                |   |                                  |   |                                |   |    |   |                         |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Balance                as of September 30, 2008                                                     |   | $                          | 2,560  |                                | $      | 440                                   |   | $                                   | 1,789  |    | $      | 9,860                        |   | $                                       | 112    |   | $      | 14,761 |   | $ | (6,883 | ) | $ | 7,878 |   |
|                                                                                                |   |                       |   |                                |   |                                  |   |                                |   |    |   |                         |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average amortization period at September 30, 2008 (in                years) |   |                       | 7.2    |                                |   | 2.8                                   |   |                                | 1.7    |    |   | 5.0                          |   |                                    | -      | (1)    |   |   |   |   |   |   |   |   |   |

----

**6.       Intangible Assets and Goodwill, continued**

***Goodwill***

|                                                           |   | PreparednessServices |   | Fraud                  andSIU                  Services** ** |   | SecurityConsulting andInvestigations |   | Consolidated |   |
|----------------------------------------------------------------|--------|----------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------|--------|--------------|--------|
| Balance                  as of December 31, 2007               |   | $                    | 883    |                                                              | $      | 6,022                                     |   | $            | 12,863 |   | $ | 19,768 |   |
| Purchase                  Price Adjustment- On Line Consulting |   |                 | -      |                                                              |   | -                                         |   |         | 200    |   |   | 200 |   |
| Balance                  as of September 30, 2008              |   | $                    | 883    |                                                              | $      | 6,022                                     |   | $            | 13,063 |   | $ | 19,968 |   |

**7.**
**Accrued      Compensation and Related Benefits**

|                                               |   | As                  of |   |
|----------------------------------------------------|--------|------------------------|--------|
|                                               |   | September 30,2008 |   | December                   31, 2007 |   |
| Accrued                  performance based bonuses |   | $                      | 2,139  |   | $ | 1,942 |   |
| Accrued                  payroll and commissions   |   |                   | 1,924  |   |   | 801 |   |
| Accrued                  employee benefits         |   |                   | 1,057  |   |   | 997 |   |
| Total                                              |   | $                      | 5,120  |   | $ | 3,740 |   |

**8.       Line of Credit**

----

**9.       Notes Payable**

|                                                                        |   | As                  of             |   |
|-----------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                        |   | September30,                  2008 |   | December                  31,2007 |   |
| Note                  payable to seller for Secure Source Acquisition       |   | $                                  | 250    |   | $ | 500 |   |
| Note                  payable to seller for Facticon Acquisition            |   |                               | 100    |   |   | 100 |   |
| Notes                  payable to seller for On Line Consulting Acquisition |   |                               | 149    |   |   | 596 |   |
|                                                                        |   |                               |        |   |   |  |   |
| Total                                                                       |   |                               | 499    |   |   | 1,196 |   |
| Less –                  current portion                          |   |                               | 499    |   |   | 800 |   |
| Long-term                  portion                                          |   | $                                  | -      |   | $ | 396 |   |

**10.      Commitments and Contingencies**

***Operating      Leases***

| For                the Year EndingSeptember                30, |   | Amount |   |
|----------------------------------------------------------------|--------|--------|--------|
| 2009                                                           |   | $      | 2,830  |   |
| 2010                                                           |   |   | 2,804  |   |
| 2011                                                           |   |   | 2,625  |   |
| 2012                                                           |   |   | 2,240  |   |
| 2013                                                           |   |   | 2,104  |   |
| Thereafter                                                     |   |   | 4,788  |   |
| Total                                                          |   | $      | 17,391 |   |

----

**10.      Commitments and Contingencies, continued**

***Operating      Leases, continued***

***Litigation,      Claims and Assessments***

*Anchondo      vs. Facticon*
*      Inc.      and GlobalOptions Group, Inc.*

*Wonsch,      et al. vs. Facticon*
*      Inc.      and GlobalOptions Group, Inc.*
* *
*Wonsch,*
*Anchondo*
*Anchondo      *
*Wonsch*

*Anchondo*
*Wonsch*
*Anchondo*
*Wonsch*

----

**11.**
*** ***
**Stockholders’      Equity**

***Common      Stock***

| **12.** | **Stock                Based Compensation** |
|---------|---------------------------------------------|

** **
***Amended      and Restated 2006 Long-Term Incentive Plan***

----

| **12.** | **Stock                Based Compensation,                continued** |
|---------|-----------------------------------------------------------------------|

***Amended      and Restated 2006 Employee Stock Purchase Plan***

*** ***

|                                                                                                                    |   | For                the Three Months Ended September 30, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                                                    |   | 2008                                                    |   | 2007 |   |
|                                                                                                                    |   | EITF96-18                                               |   | SFAS123R |   |  Total |   | EITF96-18 |   | SFAS                123R |   |  Total |   |
| Stock                options                                                                                            |   | $                                                       | 22     |   | $ | 133 |   | $ | 155 |   | $ | 8 |   | $ | 548 |   | $ | 556 |   |
| RSUs                                                                                                                    |   |                                                    | 2      |   |   | 256 |   |   | 258 |   |   | - |   |   | - |   |   | - |   |
| Stock                purchase plan                                                                                      |   |                                                    | -      |   |   | 3 |   |   | 3 |   |   | - |   |   | - |   |   | - |   |
| Vesting                of restricted shares under performance                based executive                bonus award |   |                                                    | -      |   |   | 342 |   |   | 342 |   |   | - |   |   | 297 |   |   | 297 |   |
| Total                                                                                                                   |   | $                                                       | 24     |   | $ | 734 |   | $ | 758 |   | $ | 8 |   | $ | 845 |   | $ | 853 |   |

|                                                                                                                    |   | For                the Nine Months Ended September 30, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                                                                    |   | 2008                                                   |   | 2007 |   |
|                                                                                                                    |   | EITF96-18                                              |   | SFAS123R |   |  Total |   | EITF96-18 |   | SFAS                123R |   |  Total |   |
| Stock                options                                                                                            |   | $                                                      | 93     |   | $ | 1,558 |   | $ | 1,651 |   | $ | 54 |   | $ | 1,953 |   | $ | 2,007 |   |
| RSUs                                                                                                                    |   |                                                   | 2      |   |   | 272 |   |   | 274 |   |   | - |   |   | - |   |   | - |   |
| Stock                purchase plan                                                                                      |   |                                                   | -      |   |   | 3 |   |   | 3 |   |   | - |   |   | - |   |   | - |   |
| Vesting                of restricted shares under performance                based executive                bonus award |   |                                                   | -      |   |   | 926 |   |   | 926 |   |   | - |   |   | 543 |   |   | 543 |   |
| Total                                                                                                                   |   | $                                                      | 95     |   | $ | 2,759 |   | $ | 2,854 |   | $ | 54 |   | $ | 2,496 |   | $ | 2,550 |   |

----

**12.        Stock Based Compensation, continued**

***Stock      Options***

|                                   |   | For the Three Months EndedSeptember 30, |                   | For the Nine Months EndedSeptember 30, |   |
|----------------------------------------|--------|------------------------------------------------------------------|------------------------|-----------------------------------------------------------------|--------|
|                                   |   | 2008                                                             |                   | 2007                                                            |   | 2008 |  | 2007 |   |
| Dividend                yield          |   |                                                             | 0%                     |                                                            |   | 0% |   |   | 0% |   |   | 0% |   |
| Expected                volatility     |   |                                                             | 99.8%                  |                                                            |   | 87% |   |   | 87.0% |   |  | 87.0% |   |
| Risk-free                interest rate |   |                                                             | 3.37%                  |                                                            |   | 4.20% |   |   | 2.97% |   |   | 4.34% |   |
| Expected                lives          |   |                                                             | 4                years |                                                            |   | 5                years |   |   | 5                years |  |   | 5                years |   |

----

**12.        Stock Based Compensation, continued**

***Stock      Options, continued***

----

**12.      Stock Based Compensation, continued**

***Stock      Options, continued***

|                                                       |   | Number ofOptions |       | WeightedAverageExercisePrice |   | WeightedAverageRemainingContractualLife |   | IntrinsicValue |   |
|------------------------------------------------------------|--------|-----------------------|------------|------------------------------|--------|-----------------------------------------|--------|----------------|--------|
|                                                       |   |                  |       | (per                  share) |   | (in                  years)             |   |           |   |
| Options                  outstanding at December 31, 2007  |   |                  | 1,191,665  |                         | $      | 13.72                                   |   |           | 3.6    |   |   |   |   |
| Granted                                                    |   |                  | 619,334    |                         |   |                                    |   |           |   |   |   |   |   |
| Forfeited                                                  |   |                  | (38,888    | )                            |   |                                    |   |           |   |   |   |   |   |
| Canceled                                                   |   |                  | (1,105,188 | )                            |   |                                    |   |           |   |   |   |   |   |
| Options                  outstanding at September 30, 2008 |   |                  | 666,923    |                         | $      | 3.44                                    |   |           | 4.3    |   |   | 89 |   |
| Exercisable                  September 30, 2008            |   |                  | 152,303    |                         | $      | 5.68                                    |   |           | 4.1    |   |   | - |   |

***Restricted      Stock Units (“RSUs”)***

----

**12.      Stock Based Compensation, continued**

|                                                                                          |   |  Total |    | Weighted Average Grant Date Fair Value |   |
|-----------------------------------------------------------------------------------------------|--------|-------------|---------|-----------------------------------------------------------------|--------|
| Nonvested                at January 1, 2008                                                   |   |        | -       |                                                            |   | - |   |
| RSUs                issued upon cancellation of optionstendered,                June 26, 2008 |   |        | 368,475 |                                                            | $      | 2.12 |   |
| RSUs                vested                                                                    |   |        | -       |                                                            |   |   |   |
| RSUs                forfeited                                                                 |   |        | (42     | )                                                               |   |   |   |
| Nonvested                at September 30, 2008                                                |   |        | 368,433 |                                                            | $      | 2.12 |   |

***Stock      Purchase Plan***

***Vesting      of Restricted Shares under Performance Based Executive Bonus      Award***

----

**13.   Client        and Segment Data**

|                                               |   | Preparedness Services |   | Fraud & SIU Services |   | Security Consulting & Investigations |   | Corporate |   | Consolidated |   |
|----------------------------------------------------|--------|----------------------------|--------|-----------------------------------------|--------|---------------------------------------------------------|--------|-----------|--------|--------------|--------|
|                                               |   |                       |   |                                    |   |                                                    |   |      |   |         |   |   |   |   |   |   |
| Revenues                                           |   | $                          | 11,820 |                                    | $      | 8,657                                                   |   | $         | 9,011  |         | $      | - |   | $ | 29,488 |   |
|                                               |   |                       |   |                                    |   |                                                    |   |      |   |         |   |   |   |   |   |   |
| Income                (loss) from Operations  |   | $                          | 1,191  |                                    | $      | (1,117                                                  | )      | $         | (417   | )            | $      | - |   | $ | (343 | ) |
|                                               |   |                       |   |                                    |   |                                                    |   |      |   |         |   |   |   |   |   |   |
| Depreciation                and Amortization       |   | $                          | 320    |                                    | $      | 383                                                     |   | $         | 432    |         | $      | - |   | $ | 1,135 |   |
|                                               |   |                       |   |                                    |   |                                                    |   |      |   |         |   |   |   |   |   |   |
| Interest                Expense , net              |   | $                          | -      |                                    | $      | -                                                       |   | $         | -      |         | $      | 72 |   | $ | 72 |   |

----

**13.   Client      and Segment Data, continued**

| For                the Three Months Ended September 30, 2007 |   |
|--------------------------------------------------------------|--------|
|                                                         |   |  Preparedness                Services |   | Fraud                & SIU Services |   | Security                Consulting                & Investigations |   | Corporate |   | Consolidated |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                     |   | $ | 6,769 |   | $ | 6,384 |   | $ | 8,421 |   | $ | - |   | $ | 21,574 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from Operations                 |   | $ | (686 | ) | $ | (1,547 | ) | $ | (2,173 | ) | $ | - |   | $ | (4,406 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and Amortization                 |   | $ | 314 |   | $ | 251 |   | $ | 490 |   | $ | - |   | $ | 1,055 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense, net                         |   | $ | - |   | $ | - |   | $ | - |   | $ | 524 |   | $ | 524 |   |

| For                the Nine Months Ended September 30, 2008 |   |
|-------------------------------------------------------------|--------|
|                                                        |   |  Preparedness Services |   | Fraud & SIU Services |   | Security Consulting &Investigations |   | Corporate |   | Consolidated |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                    |   | $ | 27,070 |   | $ | 24,173 |   | $ | 25,998 |   | $ | - |   | $ | 77,241 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from Operations           |   | $ | 962 |   | $ | (3,466 | ) | $ | (4,081 | ) | $ | - |   | $ | (6,585 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and Amortization                |   | $ | 948 |   | $ | 1,036 |   | $ | 1,278 |   | $ | - |   | $ | 3,262 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense, net                        |   | $ | - |   | $ | - |   | $ | - |   | $ | 174 |   | $ | 174 |   |

| For                the Nine Months Ended September 30, 2007 |   |
|-------------------------------------------------------------|--------|
|                                                        |   | Preparedness Services |   | Fraud & SIU Services |   | Security Consulting &Investi                gations |   | Corporate |   | Consolidated |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                    |   | $ | 24,032 |   | $ | 18,248 |   | $ | 23,148 |   | $ | - |   | $ | 65,428 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from Operations                |   | $ | (7,659 | ) | $ | (5,493 | ) | $ | (4,885 | ) | $ | - |   | $ | (18,037 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and Amortization                |   | $ | 930 |   | $ | 861 |   | $ | 1,126 |   | $ | - |   | $ | 2,917 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense, net                        |   | $ | - |   | $ | - |   | $ | - |   | $ | 477 |   | $ | 477 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income                                 |   | $ | 100 |   | $ | - |   | $ | - |   | $ | - |   | $ | 100 |   |

----

**14.      Major Clients/Customers **

**15.      Subsequent Events **

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**(Amounts      contained in this Item 2 are in thousands, except share and per share      amounts).**

*The      following discussion of results of operations and financial condition is based      upon, and should be read in conjunction with, our condensed consolidated      financial statements and accompanying notes thereto included elsewhere      herein.*

**Forward-Looking      Statements**

**Overview**

|   | • |   | *Preparedness                Services*                develops and implements crisis management and emergency response                plans for                disaster mitigation, continuity of operations and other emergency                management issues for governments, corporations and individuals.                Services                we provide include preparedness, response and recovery services,                threat                and impact assessments, business continuity plans and emergency exercises                and training programs. The Preparedness Services unit is led by former                Federal Emergency Management Agency Director James Lee Witt. |
|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | *Fraud                and Special Investigative Unit (“SIU”) Services*                provides investigative surveillance, anti-fraud solutions and business                intelligence services to the insurance industry, law firms and                multinational organizations. Services we provide include fraud reporting,                anti-fraud training, insurance claims investigations, surveillance,                background investigations, corporate investigations for liability,                on-scene accident investigations and regulatory compliance. The Fraud                and                SIU Services unit is led by Halsey Fischer, an 19-year industry veteran                and former President and Chief Executive Officer of Confidential                Business                Resources (“CBR”). |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | *Security* *Consulting                and Investigations*                delivers specialized security and investigative services to governments,                corporations and individuals. Services we provide include forensic                DNA                analysis, facilities and IT security, litigation support, business                intelligence, IT and accounting forensics, executive protection,                independent monitoring and regulatory compliance. The Security Consulting                and Investigations unit is led by Howard Safir, former New York City                Police Commissioner. |
|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | *International                Strategies*                provides multidisciplinary, international risk management and business                solutions to foreign and domestic governments, corporations and                individuals. Services we provide include crisis management, facilities                security, investigations and litigation support, global business                intelligence, corporate governance compliance, personal protection                and                emerging market services. The International Strategies unit is led                by                Thomas Ondeck, a founder of GlobalOptions,                Inc. |
|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | For                the Three MonthsEnded                September                30, |   | For                the Nine MonthsEnded                September                30, |   |
|-------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|
| Segment                                               |   | 2008                                                                                 |   | 2007                                                                                |   | 2008 |   | 2007 |   |
| Preparedness                Services                  |   |                                                                                 | 40.1   | %                                                                                   |   | 31.4 | % |   | 35.0 | % |   | 36.7 | % |
| Fraud                and SIU Services                 |   |                                                                                 | 29.4   |                                                                                |   | 29.6 |   |   | 31.3 |   |   | 27.9 |   |
| Security                Consulting and Investigations |   |                                                                                 | 30.5   |                                                                                |   | 39.0 |   |   | 33.7 |   |   | 35.4 |   |
| Total                                                 |   |                                                                                 | 100.0  | %                                                                                   |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |

**Growth      Strategy **

*Leverage      Our Relationships and Expertise*

*Cross-sell      and Integrate Businesses*

*Selectively      Acquire Companies*

*Develop      New Solutions*

*Expand      Internationally*

----

**Corporate      Developments **

***Modification      to the Line of Credit Agreement***

***Acquisition***

----

***Registration      of Additional Shares for Resale***

***Conversion      of Series D Convertible Preferred Stock***

***Stock      Options Exchanged for Restricted Stock***

***Amended      and Restated 2006 Long-Term Incentive Plan***

***Amended      and Restated 2006 Employee Stock Purchase Plan***

***Registration      of Additional Shares Issuable Under Incentive Plan and Stock Purchase      Plan***

***Election      of Directors***

----

***Ratification      of Independent Registered Public Accounting Firm***

***Restricted      Stock Awards***

***Purchase      Price Adjustment - Acquisition of On Line***

**Statements      of Operations**

***Revenues***

***Gross      Profit***
** **

***Operating      Expense***
**s      **

----

**Results      of Operations **

|                                          |   |  For                the Three Months Ended                September 30, |   |  For                the Nine Months Ended                September 30, |   |
|-----------------------------------------------|--------|------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                          |   | 2008                                                                         |   | 2007                                                                        |   | 2008 |   | 2007 |   |
| Revenues                                      |   |                                                                         | 100    | %                                                                           |   | 100 | % |   | 100 | % |   | 100 | % |
| Cost                of revenues               |   |                                                                         | 57     |                                                                        |   | 53 |   |   | 57 |   |   | 55 |   |
| Gross                profit                   |   |                                                                         | 43     |                                                                        |   | 47 |   |   | 43 |   |   | 45 |   |
| Operating                expenses:            |   |                                                                         |   |                                                                        |   |   |   |   |   |   |   |   |   |
| Selling                and marketing expenses |   |                                                                         | 11     |                                                                        |   | 6 |   |   | 11 |   |   | 19 |   |
| General                and administrative     |   |                                                                         | 33     |                                                                        |   | 61 |   |   | 40 |   |   | 54 |   |
| Total                operating expenses       |   |                                                                         | 44     |                                                                        |   | 67 |   |   | 51 |   |   | 73 |   |
| Loss                from operations           |   |                                                                         | (1     | )                                                                           |   | (20 | ) |   | (8 | ) |   | (28 | ) |
| Other                income (expense), net    |   |                                                                         | -      |                                                                        |   | (3 | ) |   | - |   |   | - |   |
| Net                loss                       |   |                                                                         | (1     | )%                                                                          |   | (23 | )% |   | (8 | )% |   | (28 | )% |

**GlobalOptions      Group Three Months Ended September 30, 2008 Compared to the Three Months Ended      September 30, 2007 **

**Revenues**

----

**Gross      Profit**

**Operating      Expenses**

**GlobalOptions      Group Nine Months Ended September 30, 2008 Compared to the Nine Months Ended      September 30, 2007 **

**Revenues**

----

**Gross      Profit**

**Operating      Expenses**

**Liquidity      and Capital Resources **

***For      the Nine Months Ended September 30, 2008***

----

**Off-Balance      Sheet Arrangements**

**Critical      Accounting Policies**

***Revenue      Recognition and Related Costs***

----

***Intangible      Assets, Goodwill and Impairment***

***Allowance      for Doubtful Accounts***

***Stock-Based      Compensation***

----

**Item      3**
**Quantitative      and Qualitative Disclosures About Market Risk.**

**Item      4T. Controls and Procedures.**

*Disclosure      Controls and Procedures*

| ·  | In                connection with the filing of this Form 10-Q, we have been utilizing                a more formal disclosure process for the Board and management resulting                in                a more detailed chronology and more detailed documentation of the                discussions and analyses taking place, including a checklist of items                we                routinely consider, such as variances between financial results and                forecasts, changes in relationships with key vendors, customers,                lenders                etc., company-wide initiatives, related party issues, new/emerging                risks,                credit agreement covenant adherence, tax, accounting, internal controls,                governmental or other investigations, Management Discussion and Analysis                discussions, and other matters. In addition, sub-certifications have                been                adopted to ensure accountability by the controllers and executives                of each                of our business units. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Management                has continued to retain an independent third-party consulting firm                to                assist with our preparation, documentation and testing of our compliance                efforts with Section 404 of the Sarbanes Oxley Act.  We performed                testing to sustain compliance that both expanded the depth of our                coverage                in complex areas (e.g. intangibles, equity, revenue and financial                reporting) and breadth by incorporating acquisitions such as Bode,                which                were exempted from the disclosure controls and procedures analysis                in                2007. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Changes      in Internal Control Over Financial Reporting*

----

**PART      II**

**OTHER      INFORMATION**

**Item      1. Legal Proceedings. **

**(Amounts      contained in this Item 1 are in thousands, except for share      amounts).**

*Anchondo      vs. Facticon*
*      Inc.      and GlobalOptions Group, Inc.*

*Wonsch,      et al. vs. Facticon*
*      Inc.      and GlobalOptions Group, Inc.*
* *
*Wonsch,*
*Anchondo*
*Anchondo      *
*Wonsch*

*Anchondo*
*Wonsch*
*Anchondo*
*Wonsch*

----

**Item      1A. Risk Factors.**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

|   Period |   | (a)Total Number of Shares (or Units) Withheld |    | (b)Average Price Paid per Share (or Unit) |   | (c)Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Withheld Under the Plans or Programs |   |
|--------------------|--------|-----------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 7/1/08-7/31/08     |   |                                                                        |  - |                                                                    |   |  -                                                                                                                                                                                                                  |   |   |  - |   |
| 8/1/08-8/31/08     |   |                                                                        | 15,704  | (1)                                                                     | $      | 2.09                                                                                                                                                                                                                     | (2)    |   | - | (3) |
| 9/1/08-9/30/08     |   |                                                                        |  - |                                                                    |   |  -                                                                                                                                                                                                                  |   |   |  - |   |
| Total              |   |                                                                        | 15,704  | (1)                                                                     | $      | 2.09                                                                                                                                                                                                                     | (2)    |   | - | (3) |

**Item      3. Default Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

|                                     | Shares                For |   | Shares                Withheld |
|------------------------------------------|---------------------------|--------|--------------------------------|
| Harvey                W. Schiller, Ph.D. | 4,602,922                 |   | 2,435,281                      |
| Per-Olof                Lööf   | 4,603,881                 |   | 2,434,322                      |
| John                P. Oswald            | 4,764,079                 |   | 2,274,124                      |
| Ronald                M. Starr           | 4,605,331                 |   | 2,432,872                      |
| John                P. Bujouves          | 5,309,721                 |   | 1,728,482                      |

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e      Company’s stockholders voted to adopt and approve the Incentive Plan by the      following votes:

|     | Shares    |
|----------|-----------|
| For:     | 3,601,080 |
| Against: | 2,018,881 |
| Abstain: | 269,275   |

|     | Shares    |
|----------|-----------|
| For:     | 3,937,946 |
| Against: | 1,697,615 |
| Abstain: | 253,675   |

|     | Shares    |
|----------|-----------|
| For:     | 7,023,445 |
| Against: | 412       |
| Abstain: | 14,346    |

**Item      5. Other Information.**

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**Item      6. Exhibits.**

**EXHIBIT      INDEX**

| **Exhibit                No.** |   | **Description**                                                                                                                      |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |                                                                                                                                 |
| 31.1                           |   | Certification                of Principal Executive Officer pursuant to Section 302 of The                Sarbanes-Oxley Act of 2002 |
| 31.2                           |   | Certification                of Principal Financial Officer pursuant to Section 302 of The                Sarbanes-Oxley Act of 2002 |
| 32.1                           |   | Certification                of Principal Executive Officer pursuant to Section 906 of The                Sarbanes-Oxley Act of 2002 |
| 32.2                           |   | Certification                of Principal Financial Officer pursuant to Section 906 of The                Sarbanes-Oxley Act of 2002 |

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**SIGNATURES**

|                                                          | GLOBALOPTIONS                GROUP, INC. |
|---------------------------------------------------------------|------------------------------------------|
|                                                     |                                |                    |
| Dated:                                 November 12, 2008 | By:                            | /s/                Harvey W. Schiller |
|                                                          |                                     |   |
|                                                          |                                     | Harvey                W. SchillerChairman,                Chief Executive Officerand                Director(Principal                Executive Officer) |
|                                                     |                                |                    |
| Dated:                                 November 12, 2008 | By:                            | /s/                Jeffrey O. Nyweide |
|                                                          |                                     |   |
|                                                          |                                     | Jeffrey                O. NyweideExecutive                Vice President-Corporate Development,Chief                Financial Officer, Secretary (Principal                Financial Officer and Principal Accounting                Officer) |

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