**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-QSB**


(Mark
      One)




ý
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934




For
      the
      Quarterly Period Ended March 31, 2007




 ̈
            TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
                ACT




For
      the
      transition period from __________________ to __________________





Commission
      file number: 333-136468


**GLOBALOPTIONS
                GROUP, INC**(Exact
                Name of Small Business Issuer as Specified in Its
                Charter)Delaware
            
            73-1703260(State
                or Other Jurisdiction of Incorporation or Organization)
            
            (I.R.S.
                Employer Identification No.)75
                Rockefeller Plaza, 27thFloor
              New
                York, New York 10019
              (Address
                of Principal Executive Offices)
              
              (212)
                445-6262
              (Issuer’s
                Telephone Number, Including Area
                Code)







______________________________________________________


(Former
      Name, Former Address, and Formal Fiscal Year, if changed since last
      report)





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days.


Yes x No  ̈




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act)


Yes o No x





As
      of May
      10, 2007, there were 2,984,514 shares of the issuer’s common stock
      outstanding.




Transitional
      Small Business Disclosure Format (Check one):  Yes  ̈ No x













**GLOBALOPTIONS
      GROUP, INC. AND SUBSIDIARIES**


**Form
      10-QSB**


**March
      31, 2007**


**TABLE
      OF CONTENTS**





PART
                IFINANCIAL
                  INFORMATIONITEM
                  1. Condensed Consolidated Financial Statements
                  (unaudited):Condensed
                Consolidated Balance Sheet as of March 31, 2007
            
            
            
            
            
            1Condensed
                Consolidated Statements of Operations for the Three Months Ended
                March 31,
                2007 and 2006
            
            
            
            
            
            2Condensed
                Consolidated Statements of Stockholders’ Equity for the Three Months Ended
                March 31, 2007 and
                2006
            
            
            
            
            
            3Condensed
                Consolidated Statements of Cash Flows for the Three Months Ended
                March 31,
                2007 and 2006
            
            
            
            
            
            4Notes
                to Condensed Consolidated Financial Statements
            
            
            
            
            
            8ITEM
                2. Management’s Discussion and Analysis or Plan of
                Operation
            
            29ITEM
                3. Controls and Procedures
            
            39PART
                IIITEM
                1. Legal Proceedings
            
            
            
            
            
            41ITEM
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            
            
            
            
            41ITEM
                3. Defaults Upon Senior Securities
            
            
            
            
            
            41ITEM
                4. Submission of Matters to a Vote of Security Holders
            
            
            
            
            
            41ITEM
                5. Other Information
            
            
            
            
            
            41ITEM
                6. Exhibits
            
            
            
            
            
            42Signatures
            
            44Exhibits
                31.1 and 31.2Exhibits
                32.1 and 32.2











Part
          I -
          Financial Information
 Item
          1.
          Condensed Consolidated Financial Statements
  **Condensed
        Consolidated Balance Sheet**
 **March
        31, 2007**
 **(Unaudited)**
    **ASSETS**Current
                  assets:Cash
                  and cash equivalents
              
              $
              3,628,553Accounts
                  receivable, net of allowance for doubtful accounts of
                  $2,372,901
              
              
              32,996,952Inventories
              
              
              2,621,307Prepaid
                  expenses and other current assets
              
              
              510,553Total
                  current assets
              
              
              39,757,365Property
                  and equipment, net
              
              
              5,161,528Intangible
                  assets, net
              
              
              8,553,520Goodwill
              
              
              22,892,921Security
                  deposits and other assets
              
              
              361,497Total
                  assets
              
              $
              76,726,831**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  liabilities:Notes
                  payable for acquisitions
              
              $
              1,459,608Due
                  to former members of JLWA for earnout
              
              
              6,447,875Accounts
                  payable
              
              
              6,950,123Deferred
                  revenues
              
              
              344,319Accrued
                  compensation and related benefits
              
              
              2,741,271Other
                  current liabilities
              
              
              2,714,489Total
                  current liabilities
              
              
              20,657,685Long
                  term liabilities:Notes
                  payable for acquisitions, less current portion
              
              
              641,705Deferred
                  rent obligations
              
              
              281,630Total
                  long term liabilities
              
              
              923,335Total
                  liabilities
              
              
              21,581,020CommitmentsStockholders'
                  equity:Preferred
                  stock, $0.001 par value, 14,924,000 shares authorized, no shares
                  issued or
                  outstanding
              
              
              -Series
                  A convertible preferred stock, voting, $0.001 par value,16,000
                  shares authorized, 6,330 shares issued andoutstanding,
                  liquidation preference $6,330,000
              
              
              6Series
                  B convertible preferred stock, voting, $0.001 par value,60,000
                  shares authorized, 53,070 shares issued andoutstanding,
                  liquidation preference $53,070,000
              
              
              53Common
                  stock, $0.001 par value; 100,000,000 shares authorized;2,984,514
                  shares issued and outstanding
              
              
              2,983Additional
                  paid-in capital
              
              
              82,307,831Accumulated
                  deficit
              
              
              (27,165,062
              )Total
                  stockholders' equity
              
              
              55,145,811Total
                  liabilities and stockholders' equity
              
              $
              76,726,831
  See
        notes
        to these condensed consolidated financial statements.
 1




**GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
  **Condensed
        Consolidated Statements Of Operations**
 **(Unaudited)**
 For
                    the Three Months Ended
                    March
                      31,2007
                
                2006Revenues
                
                $
                21,387,980
                
                $
                6,234,825Cost
                    of revenues
                
                
                11,529,622
                
                
                3,344,155Gross
                    profit
                
                
                9,858,358
                
                
                2,890,670Operating
                    expenses:Selling
                    and marketing
                
                
                2,384,578
                
                
                814,431General
                    and administrative
                
                
                10,289,740
                
                
                3,127,034Total
                    operating expenses
                
                
                12,674,318
                
                
                3,941,465Loss
                    from operations
                
                
                (2,815,960
                )
                
                (1,050,795
                )Other
                    income (expense):Interest
                    income
                
                
                238,037
                
                
                -Interest
                    expense
                
                
                (25,902
                )
                
                (181,749
                )Other
                    income
                
                
                100,000
                
                
                -Other
                    income (expense), net
                
                
                312,135
                
                
                (181,749
                )Net
                    loss
                
                $
                (2,503,825
                )
                $
                (1,232,544
                )Basic
                    and diluted net loss per share
                
                $
                (0.88
                )
                $
                (0.67
                )Weighted
                    average number of common shares outstanding - basic and
                    diluted
                
                
                2,843,945
                
                
                1,835,230
 See
            notes
            to these condensed consolidated financial statements.
 2


**GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
  **Condensed
        Consolidated Statements of Stockholders' Equity**
 **For
        the Three Months Ended March 31, 2007**
 **(Unaudited)**
 
 **Series
                  A**
              
              **Series
                  B****Convertible**
              
              **Convertible****Common
                  Stock**
              
              **Preferred
                  Stock**
              
              **PreferredStock**
              
              **AdditionalPaid-in**
              
              **Accumulated****Shares**
              
              **Amount**
              
              **Shares**
              
              **Amount**
              
              **Shares**
              
              **Amount**
              
              **Capital**
              
              **Deficit**
              
              **Total**Balance,
                  January 1, 2007
              
              
              2,678,059
              
              $
              2,678
              
              
              6,380
              
              $
              6
              
              
              53,073
              
              $
              53
              
              $
              78,557,545
              
              $
              (24,661,237
              )
              $
              53,899,045Fractional shares
                  issued in connection
                with
                  reverse split
              
              
              42
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -Adjustment
                  to shares outstanding
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (3
              )
              
              -
              
              
              -
              
              
              -
              
              
              -Issuance
                    of common stock in connection
                  with
                    the purchase of On Line Consulting
              
              
              84,375
              
              
              84
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              1,399,916
              
              
              -
              
              
              1,400,000Issuance
                    of common stock in connection
                  with
                    purchase of Facticon
              
              
              87,500
              
              
              87
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              1,349,913
              
              
              -
              
              
              1,350,000Exercise
                  of stock options
              
              
              88,236
              
              
              88
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              47,912
              
              
              -
              
              
              48,000Cashless
                exercise of stock options
              
              
              39,706
              
              
              40
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (40
              )
              
              -
              
              
              -Stock
                    issued to employees pursuant to
                  Long
                    Term Incentive Plan
              
              
              3,471
              
              
              3
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              41,649
              
              
              -
              
              
              41,652Stock
                  based compensation - restricted
                stock
                  vested
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              136,719
              
              
              -
              
              
              136,719Amortization
                    of consultant stock option
                  costs
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              60,032
              
              
              -
              
              
              60,032Amortization
                  of employee stock options
                costs
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              714,188
              
              
              -
              
              
              714,188Issuance
                      of common stock in connection
                    with
                      the conversion of shares of Series AConvertible
                      Preferred Stock
              
              
              3,125
              
              
              3
              
              
              (50
              )
              
              -
              
              
              -
              
              
              -
              
              
              (3
              )
              
              -
              
              
              -Net
                  loss
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (2,503,825
              )
              
              (2,503,825
              )Balance,
                  March 31, 2007
              
              
              2,984,514
              
              $
              2,983
              
              
              6,330
              
              $
              6
              
              
              53,070
              
              $
              53
              
              $
              82,307,831
              
              $
              27,165,062
              
              $
              55,145,811
 
 See
          notes
          to these condensed consolidated financial statements.
 3
 **GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
 **Condensed
        Consolidated Statements of Cash Flows**
 **(Unaudited)**
  For
                  the Three Months EndedMarch
                  31,2007
              
              2006Cash
                  flows from operating activities:Net
                  loss
              
              $
              (2,503,825
              )
              $
              (1,232,544
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Provision
                  for bad debts
              
              
              479,917
              
              
              20,795Depreciation
                  and amortization
              
              
              872,732
              
              
              261,439Deferred
                  rent
              
              
              (2,777
              )
              
              -Stock
                  based compensation
              
              
              952,591
              
              
              350,319Changes
                  in operating assets:Accounts
                  receivable
              
              
              (7,024,865
              )
              
              (2,527,258
              )Inventories
              
              
              8,082
              
              
              -Prepaid
                  expenses and other current assets
              
              
              219,179
              
              
              (23,893
              )Security
                  deposits and other assets
              
              
              (47,052
              )
              
              (187,932
              )Changes
                  in operating liabilites:Accounts
                  payable
              
              
              1,996,101
              
              
              350,435Deferred
                  revenues
              
              
              197,622
              
              
              -Accrued
                  compensation and related benefits
              
              
              (83,168
              )
              
              193,028Due
                  to former stockholder of CBR
              
              
              -
              
              
              (117,469
              )Due
                  to former members of JLWA for earnout
              
              
              1,219,890
              
              
              496,040Other
                  current liabilites
              
              
              496,353
              
              
              159,959Total
                  adjustments
              
              
              (715,395
              )
              
              (1,024,537
              )Net
                  cash used in operating activities
              
              
              (3,219,220
              )
              
              (2,257,081
              )Cash
                  flows from investing activities:Purchases
                  of property and equipment
              
              
              (266,062
              )
              
              (9,999
              )Purchase
                  of client lists
              
              
              -
              
              
              (40,000
              )Acquisition
                  of On Line Consulting
              
              
              (750,000
              )
              
              -Acquisition
                  of Facticon
              
              
              (1,300,000
              )
              
              -Acquisition
                  of Bode, less cash acquired of $284,251
              
              
              (12,215,749
              )
              
              -Acquisition
                  of JLWA
              
              
              -
              
              
              (5,457,296
              )Restricted
                  cash escrow for the purchased of Safir
              
              
              -
              
              
              (2,000,000
              )Net
                  cash used in investing activities
              
              
              (14,531,811
              )
              
              (7,507,295
              )
 
 See
          notes
          to these condensed consolidated financial statements.
 4
 **GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
 **Condensed
        Consolidated Statements of Cash Flows, continued**
 **(Unaudited)**
   For
                  the Three Months EndedMarch 31,2007
              
              2006Cash
                  flows from financing activities:Net
                  proceeds from line of credit
              
              $
              -
              
              $
              278,634Proceeds
                  from convertible notes payable
              
              
              -
              
              
              12,500,000Repayment
                  of notes payable for acquisitions
              
              
              (487,506
              )
              
              -Proceeds
                  from exercise of stock options
              
              
              48,000
              
              
              -Collection
                  of accounts receivable due to seller
              
              
              285,709
              
              
              -Deferred
                  financing costs
              
              
              -
              
              
              (305,940
              )Net
                  cash (used in) provided by financing activities
              
              
              (153,797
              )
              
              12,472,694Net
                  increase (decrease) in cash and cash equivalents
              
              
              (17,904,828
              )
              
              2,708,318Cash
                  and cash equivalents - beginning of period
              
              
              21,533,381
              
              
              528,602Cash
                  and cash equivalents - end of period
              
              $
              3,628,553
              
              $
              3,236,920Supplemental
                  disclosure of cash flow information:Cash
                  paid during the period for interest
              
              $
              18,671
              
              $
              56,299Supplemental
                  disclosures of non-cash investing and financing
                  activities:Common
                  stock issued upon conversion ofSeries
                  A convertible prefered stock
              
              $
              3
              
              $
              -Common
                  stock issued upon the cashless exercise of stock options
              
              $
              40
              
              $
              -Deferred
                  financing costs incurred through the issuance of nots
                  payable
              
              $
              -
              
              $
              110,000
 See
          notes
          to these condensed consolidated financial statements.
 
 5
 **GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
 **Condensed
        Consolidated Statements of Cash Flows, continued**
 **(Unaudited)**
   For
                  the Three Months EndedMarch 31,2007
              
              2006Supplemental
                  non-cash investing and financing activity - acquisition of On Line
                  ConsultingAssets
                  acquired and liabilities assumed:Accounts
                  receivable
              
              $
              263,625
              
              $
              -Property
                  and equipment
              
              
              96,589
              
              
              -Intangible
                  assets
              
              
              1,199,000
              
              
              -Goodwill
                  recognized on purchase business combination
              
              
              1,320,229
              
              
              -Accounts
                  payable, accrued expenses and deferred revenues
              
              
              (175,726
              )
              
              -Other
                  current liabilities
              
              
              (45,717
              )
              
              -Total
                  purchase price
              
              
              2,658,000
              
              
              -Less:
                  Cash paid to acquire On Line Consulting
              
              
              (750,000
              )
              
              -Non-cash
                  consideration to seller
              
              $
              1,908,000
              
              $
              -Non-cash
                  consideration, consisted of:Common
                  stock issued to acquire On Line Consulting
              
              
              1,350,000
              
              
              -Notes
                  payable issued to seller
              
              
              558,000
              
              
              -Total
                  non-cash consideration
              
              $
              1,908,000
              
              $
              -Supplemental
                  non-cash investing and financing activity - acquisition of
                  Bode:Assets
                  acquired and liabilities assumed:Accounts
                  receivable
              
              $
              5,510,441
              
              
              -Inventories
              
              
              2,629,389
              
              
              -Other
                  current assets (including cash of $ 284,251)
              
              
              560,372
              
              
              -Property
                  and equipment
              
              
              4,133,338
              
              
              -Intangible
                  assets
              
              
              310,000
              
              
              -Goodwill
                  recognized on purchase business combination
              
              
              575,250
              
              
              -Accounts
                  payable, accrued expenses and deferred rent obligations
              
              
              (1,218,790
              )
              
              -Total
                  purchase price
              
              
              12,500,000
              
              
              -Less:
                  Cash acquired
              
              
              (284,251
              )
              
              -Cash
                  paid to acquire Bode
              
              $
              12,215,749
              
              
              -
 See
          notes
          to these condensed consolidated financial statements.
 
 6
  **GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
 **Condensed
        Consolidated Statements of Cash Flows, continued**
 **(Unaudited)**
 
 For
                  the Three Months EndedMarch
                  31,2007
              
              2006Supplemental
                  non-cash investing and financing activity - acquisition of
                  Facticon:Assets
                  acquired and liabilities assumed:Accounts
                  receivable
              
              $
              759,147
              
              
              -Property
                  and equipment
              
              
              34,000
              
              
              -Intangible
                  assets
              
              
              120,000
              
              
              -Goodwill
                  recognized on purchase business combination
              
              
              2,420,181
              
              
              -Accounts
                  payable, accrued expenses and deferred revenues
              
              
              (533,328
              )
              
              -Total
                  purchase price
              
              
              2,800,000
              
              
              -Less:
                  Cash paid to acquire Facticon
              
              
              (1,300,000
              )
              
              -Non-cash
                  consideration to seller
              
              $
              1,500,000
              
              $
              -Non-cash consideration consisted of:Note
                  payable issued to seller
              
              
              100,000
              
              
              -Common
                  stock issued to acquire Facticon
              
              
              1,400,000
              
              
              -Total
                  non-cash consideration
              
              $
              1,500,000
              
              $
              -Supplemental
                  non-cash investing and financing activity - acquisition of
                  JLWA:Assets
                  acquired and liabilities assumed:Current
                  assets
              
              $
              -
              
              $
              6,607,538Property
                  and equipment
              
              
              -
              
              
              185,234Intangible
                  assets
              
              
              -
              
              
              4,930,000Goodwill
                  recognized on purchase business combination
              
              
              -
              
              
              883,183Security
                  deposits and prepaid expenses
              
              
              -
              
              
              60,385Accounts
                  payable, accrued expenses and deferred revenues
              
              
              -
              
              
              (2,483,920
              )Total
                  purchase price
              
              
              -
              
              
              10,182,420Less:
                  Cash paid to acquire JLWA
              
              
              -
              
              
              (5,457,296
              )Non-cash
                  consideration to seller
              
              $
              -
              
              $
              4,725,124Non-cash
                  consideration, consisted of:Common
                  stock issued to acquire JLWA
              
              $
              -
              
              $
              2,000,000Note
                  payable issued to seller
              
              
              -
              
              
              400,000Obligation
                  to seller in connection with working capital purchase price
                  adjustment
              
              
              -
              
              
              2,325,124Total
                  non-cash consideration
              
              $
              -
              
              $
              4,725,124


See
      notes
      to these condensed consolidated financial statements.




7





**GLOBALOPTIONS
      GROUP, INC. AND SUBSIDIARIES**


Notes
      to
      Condensed Consolidated Financial Statements


(Unaudited)


**1. 
      Nature of Operations**




Globaloptions
      Group, Inc. and Subsidiaries (collectively the “Company”) is a provider of risk
      mitigation services to Fortune 500 corporations, governmental organizations
      and
      high-profile individuals throughout the world.  The Company’s risk
      mitigation services currently include (1) risk management and security, (2)
      investigations and litigation support, and (3) crisis management and corporate
      governance.




On
      August
      14, 2005, the Company acquired Confidential Business Resources,
      Inc. (“CBR”), a privately-held nationwide investigations firm based in
      Nashville, Tennessee.




On
      March
      10, 2006, the Company acquired James Lee Witt Associates, LLC (“JLWA”), a
      nationwide crisis and emergency management consulting firm headquartered in
      Washington, D.C. with three additional offices nationwide.





On
      May
      12, 2006, the Company acquired Safir Rosetti, LLC (“Safir”). Safir is a security
      consulting, investigative and intelligence firm headquartered in New York
      City.





On
      May
      12, 2006, the Company acquired substantially all of the business and certain
      assets of Secure Source, Inc. (“Secure Source”), a Delaware corporation. Secure
      Source is an international risk consulting firm with offices in Washington,
      D.C.
      and Dallas, Texas.





On
      August
      10, 2006, the Company acquired substantially all of the business and assets
      of
      Hyperion Risk, Inc. (“Hyperion Risk”). Hyperion Risk is a security consulting,
      investigative and intelligence firm with its central corporate office located
      in
      Orlando, Florida.




On
      January 9, 2007, GlobalOptions Group purchased substantially all of the business
      and assets of SPZ Oakland Corporation, dba On Line Consulting Service, Inc.
      (“On
      Line Consulting”), a full service security and fire alarm consulting and design
      firm based in Oakland, California (See Note 4).





On
      February 28, 2007, GlobalOptions Group purchased all of the common stock of
      The
      Bode Technology Group, Inc. ("Bode"), a Virginia corporation. Bode is a leading
      provider of forensic DNA analysis and proprietary DNA collection tools, based
      in
      Lorton, Virginia (See Note 4).





On
      February 28, 2007, GlobalOptions Group acquired substantially all of the
      business and assets of Facticon, Inc. (“Facticon”), a Pennsylvania
      corporation. Facticon is a surveillance, investigative and intelligence firm
      based in Chadds Ford, Pennsylvania (See Note 4).





On
      March
      6, 2007, the Company executed a 1 for 8 reverse stock split and began trading
      under the symbol GOPG.OB. Accordingly, all share and per share information
      has
      been restated, giving effect to the 1 for 8 reverse stock
      split, within this report for the three months ended March 31,
      2006.





**2.
      Basis of Presentation**




The
      accompanying unaudited condensed consolidated financial statements have been
      prepared in accordance with United States generally accepted accounting
      principles for interim financial information and with the instructions to Form
      10-QSB. Accordingly, they do not include all of the information and footnotes
      required by United States generally accepted accounting principles. In the
      opinion of management, all adjustments (consisting of normal accruals)
      considered for a fair presentation have been included. Operating results for
      the
      three months ended March 31, 2007 are not necessarily indicative of the results
      that may be expected for the year ending December 31, 2007.  For further
      information, refer to the consolidated financial statements and footnotes
      thereto for GlobalOptions Group, Inc., included in the Company’s Form 10-KSB
      filed on April 2, 2007 for the year ended December 31, 2006.




8
 
 **GLOBALOPTIONS
        GROUP, INC. AND SUBSIDIARIES**
 Notes
        to
        Condensed Consolidated Financial Statements
 (Unaudited)
 
 **3. 
        Summary of Significant Accounting Policies**





***Revenue
      Recognition and Related Costs***





For
      investigation, crisis management and non-DNA related security, revenue is
      recognized as the services are performed pursuant to the applicable contractual
      arrangements. Revenue related to time and materials arrangements is recognized
      in the period in which the services are performed. Revenue related to fixed
      price arrangements are recognized based upon the achievement of certain
      milestones or progress points within the project plan. The impact of any
      revisions in estimated total revenue and direct contract costs is recognized
      in
      the period in which they become known. Expenses incurred by professional staff
      in the generation of revenue are billed to the client and recorded as revenue
      when incurred.




For
      DNA
      related revenues through Bode, revenue is recognized when it is realized or
      realizable and earned. The Company considers revenue realized or realizable
      and
      earned when it has persuasive evidence that an agreement exists, prices are
      fixed or determinable, services and products are provided to the customer,
      and
      collectibility is reasonably assured. The Company reduces revenue for estimated
      discounts and other allowances.





Revenues
      earned on Bode are derived from the following sources: (1) forensic DNA analysis
      (2) research and development projects, and (3) sales of DNA collection products.
      Bode recognizes revenues from forensic DNA analysis at the time tests are
      completed and the results are reported to the customer. Revenues from research
      and development projects are recognized as the related research is completed
      and
      when Bode has satisfied specific obligations under the terms of the respective
      agreements. Revenue from the sales of DNA collection products are recognized
      upon delivery of the products to the customer.





Forensic
      DNA analysis is billed on a per sample fixed fee arrangement. Research and
      development projects are billed on a cost plus fixed fee
      arrangement.





Costs
      incurred in the performance of forensic DNA analysis are recorded as inventories
      and charged to cost of revenues upon the completion of the project, which
      generally ranges from one to three months. Costs related to research and
      development projects are expensed as incurred and costs related to DNA
      collection products are maintained as inventory and charged to operations when
      the products are delivered.





***Inventories***





Inventories
      are stated at the lower of cost or market. Cost is determined by the first-in,
      first-out method.





The
      Company maintains inventories in connection with Bode. Raw materials consist
      mainly of reagents, primers, enzymes, chemicals and plates used in genotyping
      and components to manufacture kits. Work in progress consists mainly of
      databanking and casework not yet completed and kits that are in the production
      process. Finished goods consist mainly of kits that have been produced, but
      have
      not been shipped.


9
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)
  **3. 
        Summary of Significant Accounting Policies, continued**  ******





***Research
      and Development***





Costs
      incurred for research and product development, including salaries and related
      personnel costs, fees paid to consultants and outside service providers,
      material costs for prototypes and test units, are expensed as incurred. In
      addition, the Company recognizes research and development expenses in the period
      incurred and in accordance with the specific contractual performance terms
      of
      such research agreements. Costs incurred in obtaining technology licenses and
      development of software are charged to research and development expense if
      the
      technology licensed or the software has not reached technological feasibility.
      For the three months ended March 31, 2007, research and development costs of
      approximately $13,000 are included in general and administrative expense. For
      the three months ended March 31, 2006, there were no research and development
      costs.





***Income
      Taxes***





The
      Company accounts for income taxes using the liability method as required by
      SFAS
      No. 109, “Accounting for Income Taxes” (“SFAS 109”). Under this method, deferred
      tax assets and liabilities are determined based on differences between their
      financial reporting and tax basis of assets and liabilities. The Company
      establishes a valuation allowance for deferred tax assets. The Company was
      not
      required to provide for a provision for income taxes for the three months ended
      March 31, 2007 and 2006, respectively, as a result of losses incurred during
      these years.





Deferred
      tax assets pertaining to windfall tax benefits on exercise of non-qualified
      stock options and the corresponding credit to additional paid-in capital are
      recorded if the related tax amount either reduces income taxes payable or
      results in an income tax refund. The Company has elected the “with and without
      approach” regarding ordering of windfall tax benefits to determine whether the
      windfall tax benefit did reduce income taxes payable or resulted in an income
      tax refund in the current year. Under this approach, the windfall tax benefits
      would be recognized in additional paid-in capital only if an incremental income
      tax benefit is realized after considering all other income tax benefits
      presently available to the Company.





Effective
      January 1, 2007, the Company adopted the provisions of Financial Accounting
      Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in
      Income Taxes, an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48
      clarifies the accounting for uncertainty in income taxes recognized in the
      Company’s condensed consolidated financial statements in accordance with FASB
      Statement 109, “Accounting for Income Taxes”, and prescribes a recognition
      threshold and measurement process for financial statement recognition and
      measurement of a tax position taken or expected to be taken in a tax return.
      FIN
      48 also provides guidance on derecognition, classification, interest and
      penalties, accounting in interim periods, disclosure and
      transition.





Management
      has evaluated and concluded that there are no significant uncertain tax
      positions requiring recognition in the Company’s condensed consolidated
      financial statements as of January 1, 2007. The evaluation was performed for
      the
      tax years ended December 31, 2006, 2005, 2004 and 2003 for which 2006 is not
      yet
      filed and 2005, 2004 and 2003, remain subject to examination for federal, state,
      and local income tax purposes by various taxing authorities as of March 31,
      2007.





The
      Company’s policy is to classify assessments, if any, for tax related interest as
      interest expense and penalties as general and administrative
      expenses.





***Stock-Based
      Compensation***





The
      Company accounts for equity instruments issued to non-employees in accordance
      with the provisions of SFAS No. 123R “Share-Based Payment” (“SFAS 123R”) and the
      Emerging Issues Task Force (“EITF”) Issue No.  96-18, 
“Accounting  for  Equity  Instruments  That Are Issued to
      Other Than  Employees  for  Acquiring,  or In 
Conjunction  with Selling,  Goods or Services” (“EITF 96-18”) which
      require that such equity instruments are recorded at their fair value on the
      measurement date, which is typically the date the services are
      performed.  Stock-based compensation for non-employees is accounted for
      under EITF 96-18 and is reflected within general and administrative
      expenses.


10
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)
  **3. 
        Summary of Significant Accounting Policies, continued**  ******





***Stock-Based
      Compensation, continued***





The
      Company accounts for stock-based compensation in accordance with the provisions
      of SFAS No. 123R “Share Based Payment” (“SFAS 123R”).





The
      Company recognizes compensation costs over the requisite service period of
      the
      award, which is generally the vesting term of the options associated with the
      underlying employment agreement, where applicable.





***Net
      Loss Per Common Share***




Basic
      net
      loss per common share is computed based on the weighted average number of shares
      of common stock outstanding during the years presented. Common stock
      equivalents, consisting of stock options, warrants and Series A and B
      convertible preferred stock were not included in the calculation of the diluted
      loss per share because their inclusion would have been anti-dilutive.  The
      total common shares issuable upon the exercise of stock options, warrants,
      and
      the Series A and B convertible preferred stock as of March 31, 2007 and 2006
      was
      7,534,115 and 1,611,681, respectively.




***Recent
      Accounting Pronouncements***




In
      February 2006, the Financial Accounting Standards Board (“FASB”) issued
      SFAS No. 155 - Accounting for Certain Hybrid Financial Instruments (“SFAS 155”),
      which eliminates the exemption from applying SFAS 133 to interests in
      securitized financial assets so that similar instruments are accounted for
      similarly regardless of the form of the instruments. SFAS 155 also allows the
      election of fair value measurement at acquisition, at issuance, or when a
      previously recognized financial instrument is subject to a remeasurement event.
      Adoption is effective for all financial instruments acquired or issued after
      the
      beginning of the first fiscal year that begins after September 15, 2006.
      Early adoption is permitted. The adoption of SFAS 155 did not have a material
      effect on the Company’s consolidated financial position, results of operations
      or cash flows.





In
      March 2006, the FASB issued SFAS No. 156 - Accounting for Servicing of
      Financial Assets (“SFAS 156”), which requires all separately recognized
      servicing assets and servicing liabilities be initially measured at fair value.
      SFAS 156 permits, but does not require, the subsequent measurement of servicing
      assets and servicing liabilities at fair value. Adoption is required as of
      the
      beginning of the first fiscal year that begins after September 15, 2006.
      Early adoption is permitted. The adoption of SFAS 156 did not have a material
      effect on the Company’s consolidated financial position, results of operations
      or cash flows.





In
      September 2006, the staff of the SEC issued Staff Accounting Bulletin No. 108
      (“SAB 108”) which provides interpretive guidance on how the effects of the
      carryover or reversal of prior year misstatements should be considered in
      quantifying a current year misstatement. SAB 108 becomes effective in fiscal
      2007. Adoption of SAB 108 did not have a material impact on the Company’s
      consolidated financial position, results of operations or cash
      flows.





In
      December 2006, the FASB issued FASB Staff Position (“FSP”) EITF 00-19-2
“Accounting for Registration Payment Arrangements” (“FSP EITF 00-19-2”) which
      specifies that the contingent obligation to make future payments or otherwise
      transfer consideration under a registration payment arrangement should be
      separately recognized and measured in accordance with SFAS No. 5,
“Accounting for Contingencies.”    Adoption of FSP EITF 00-19-02
      is required for fiscal years beginning after December 15, 2006. Adoption of
      FSP EITF 00-19-2 did not have a material impact on the Company's consolidated
      financial position, results of operations or cash flows.





11
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**4.**  **Acquisitions**





***Acquisition
      of On Line Consulting***





On
      January 9, 2007, GlobalOptions Group purchased substantially all of the business
      and assets of On Line Consulting, a full service security and fire alarm
      consulting and design firm based in Oakland, California. The acquisition was
      made pursuant to a certain Asset Purchase Agreement dated January 9, 2007 (the
      “On Line Consulting Agreement”) between GlobalOptions Group and On Line
      Consulting. The aggregate purchase price for On Line Consulting’s business and
      assets was $2,658,000 and consisted of $1,308,000 in cash and 84,375 shares
      of
      common stock of GlobalOptions Group valued at $16.00 per share for a total
      value
      of $1,350,000. At closing, the Company paid $750,000 of the cash portion of
      the
      purchase price, and issued promissory notes for $417,000 due January 9, 2008,
      and $141,000 due on January 9, 2009. Further, at closing the Company delivered
      to the seller 46,875 shares of GlobalOptions common stock, with 37,500 shares
      which were held in escrow and to be delivered to the seller, 18,750
      shares on January 9, 2008, and 18,750 shares on January 9, 2009,
      respectively. The purchase price is subject to certain working capital purchase
      price adjustments.





All
      of
      the promissory notes issued in connection with the acquisition of On Line
      Consulting bear no stated interest rate. Each of the promissory note obligations
      were discounted at a market interest rate of 6% per annum and are recorded
      at
      their discounted values, reflecting discounts of $33,000 and $9,000 for the
      notes due January 9, 2008 and 2009, respectively.





The
      assets and liabilities of On Line Consulting were recorded in the Company’s
      condensed consolidated balance sheet at their fair values at the date of
      acquisition. As part of the purchase of On Line Consulting on January 9, 2007,
      the Company acquired identifiable intangible assets of approximately $1,199,000.
      Of the identifiable intangibles acquired, $70,000 has been assigned to trade
      names, $59,000 to non-compete agreements, and $1,070,000 to client
      relationships. The
      amounts of these intangibles have been estimated based upon information
      available to management and is subject to change based upon an outside appraisal
      being performed. The
      acquired intangibles have been assigned definite lives and are subject to
      amortization, as described in the table below. The Company collected On Line
      Consulting’s accounts receivables in the amount of approximately $285,000, the
      obligations for which are included in other current liabilities.





The
      following details amortization periods for the identifiable, amortizable
      intangibles:





Intangible
                Asset Category
            
            Amortization
                PeriodTrade
                names
            
            
            5
                yearsNon-compete
                agreements
            
            
            3
                yearsClient
                relationships
            
            
            7
                years





The
      following details the allocation of the purchase price for the acquisition
      of On
      Line Consulting:





Fair ValueAccounts
                receivable
            
            $
            263,625Property
                and equipment
            
            
            96,589Intangible
                asset - trade names
            
            
            70,000Intangible
                asset - non-compete agreements
            
            
            59,000Intangible
                asset - client relationships
            
            
            1,070,000Accounts
                payable
            
            
            (75,000
            )Accrued
                compensation and related benefits
            
            
            (60,901
            )Deferred
                revenues
            
            
            (39,825
            )Capital
                lease obligation
            
            
            (33,718
            )Other
                liabilities
            
            
            (11,999
            )Net
                fair values assigned to assets acquired andliabilities
                assumed
            
            
            1,337,771Goodwill
            
            
            1,320,229Total
            
            $
            2,658,000


12
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)
   **Acquisitions,
        continued**





***Acquisition
      of On Line Consulting, continued***




The
      following represents a summary of the purchase price consideration:





Cash
            
            $
            750,000Common
                stock
            
            
            1,350,000Notes
                payable
            
            
            558,000Total
                purchase price consideration
            
            $
            2,658,000





The
      results of operations for On Line Consulting for the period from January 10,
      2007 to March 31, 2007, are reflected in the Company’s results for the three
      months ended March 31, 2007 in the accompanying condensed consolidated
      statements of operations.





***Acquisition
      of Bode***





On
      February 28, 2007, the Company acquired all of the common stock of Bode. Bode
      provides forensic DNA analysis, proprietary DNA collection products, and related
      research services to law enforcement agencies, federal and state governments,
      crime laboratories and disaster management organizations and is based in Lorton,
      Virginia. Bode was a wholly-owned subsidiary of ChoicePoint Inc., a Georgia
      corporation ("ChoicePoint"). The acquisition was made pursuant to a certain
      Stock Purchase Agreement, dated February 28, 2007 (the "Bode Agreement"),
      between ChoicePoint Government Services Inc., ChoicePoint and the Company.
      The
      aggregate purchase price paid was $12,500,000 in cash paid at closing and is
      subject to a working capital purchase price adjustment. On March 8, 2007, Bode
      was reincorporated into Delaware.





The
      assets and liabilities of Bode have been recorded in the Company’s condensed
      consolidated balance sheet at their fair values at the date of
      acquisition.  As part of the purchase of Bode on February 28, 2007, the
      Company acquired identifiable intangible assets of approximately $310,000. 
Of the identifiable intangibles acquired, $200,000 has been assigned to trade
      names and $110,000 to developed technology. The amounts of these intangibles
      have been estimated based upon information available to management and is
      subject to change based upon an outside appraisal being performed. The acquired
      intangibles have been assigned definite lives and are subject to amortization,
      as described in the table below.





The
      following details amortization periods for the identifiable, amortizable
      intangibles:





Intangible
                Asset Category
            
            Amortization
                PeriodTrade
                names
            
            
            10
                yearsDeveloped
                technology
            
            
            5
                years


13
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)
   **Acquisitions,
        continued**





***Acquisition
      of Bode, continued***





The
      following details the allocation of the purchase price for the acquisition
      of
      Bode:





Fair
                ValueCash
                and cash equivalents
            
            $
            284,251Accounts
                receivable
            
            
            5,510,441Inventories
            
            
            2,629,389Other
                current assets
            
            
            276,121Property
                and equipment
            
            
            4,133,338Intangible
                asset - trade names
            
            
            200,000Intangible
                asset - development technology
            
            
            110,000Accounts
                payable
            
            
            (545,401
            )Deferred
                rent obligations
            
            
            (94,399
            )Accrued
                expenses
            
            
            (578,990
            )Net
                fair values assigned to assets acquired andliabilities assumed
            
            
            11,924,750Goodwill
            
            
            575,250Total
                purchase price in cash
            
            $
            12,500,000








The
      results of operations for Bode for the period from March 1, 2007 to March 31,
      2007, are reflected in the Company’s results for the three months ended March
      31, 2007 in the accompanying condensed consolidated statement of
      operations




***Acquisition
      of Facticon***





On
      February 28, 2007, GlobalOptions Group purchased substantially all of the
      business and assets of Facticon, Inc., a Pennsylvania
      corporation.   Facticon is a surveillance, investigative and
      intelligence firm located in Chadds Ford, Pennsylvania.





The
      acquisition was made pursuant to a certain Asset Purchase Agreement, dated
      February 28, 2007 (the "Facticon Agreement"), between the GlobalOptions Group
      and Facticon. The aggregate purchase price paid was $2,800,000, which consisted
      of $1,400,000 in cash and 87,500 shares of common stock in GlobalOptions
      Group, valued at $1,400,000. Of the total purchase price, $1,300,000 of the
      cash
      portion and $1,000,000 of the stock portion have been placed into an escrow
      account and pursuant to the escrow agreement (“Facticon Escrow Agreement”) shall
      be disbursed in satisfaction of the claims of certain tax jurisdictions and
      creditors of the seller. The Facticon Agreement further provides after one
      year
      from closing, the sellers’ delivery of audited financial statements acceptable
      to the Company and the release of certain tax liens deemed acceptable to the
      Company, then escrowed cash funds and common stock not paid out of escrow in
      satisfaction of claims, shall be released to seller.





Furthermore,
      subject to the terms of the Facticon Agreement, on February 28, 2008, $100,000
      of the cash portion and $200,000 in value of the stock portion of the purchase
      price shall be paid to or released from escrow to the seller. On February 28,
      2009, $200,000 of the stock portion of the purchase price shall be paid to
      the
      seller.


14
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


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





***Acquisition
      of Facticon, continued***





The
      assets and liabilities of Facticon have been recorded in the Company’s condensed
      consolidated balance sheet at their fair values at the date of
      acquisition.  As part of the purchase of Facticon on February 28, 2007, the
      Company acquired identifiable intangible assets of $120,000, consisting of
      $60,000 for a trade name and $60,000 for the value of client relationships.
       The amounts of these intangibles have been estimated based upon
      information available to management and is subject to change based upon an
      outside appraisal being performed. The acquired intangibles have been assigned
      definite lives and are subject to amortization, as described in the table
      below.





The
      following details the amortization periods for the identifiable, amortizable
      intangibles:





Intangible
                Asset Category
            
            Amortization
                PeriodTrade
                name
            
            
            5
                yearsClient
                relationships
            
            
            3
                years




The
      following details the allocation of the purchase price for the acquisition
      of
      Facticon:




Fair
                ValueAccounts
                receivable
            
            $
            759,147Property
                and equipment
            
            
            34,000Intangible
                assets - trade name
            
            
            60,000Intangible
                assets - client relationships
            
            
            60,000Accounts
                payable
            
            
            (185,463
            )Accrued
                compensation and related benefits
            
            
            (237,026
            )Accrued
                expenses
            
            
            (110,839
            )Net
                fair values assigned to assets acquired andliabilities assumed
            
            
            379,819Goodwill
            
            
            2,420,181Total
            
            $
            2,800,000





The
      following presents a summary of the purchase price consideration for the
      purchase of Facticon:





Cash
            
            $
            1,300,000Note
                issued to seller
            
            
            100,000Value
                of common stock issued
            
            
            1,400,000Total
                Purchase Price Consideration
            
            $
            2,800,000








The
      results of operations for Facticon for the period from March 1, 2007 to March
      31, 2007, are reflected in the Company’s results for the three months ended
      March 31, 2007 in the accompanying condensed consolidated statement of operations.




15
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


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





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





The
      following presents the unaudited pro-forma combined results of operations of
      the
      Company with the 2006 acquisitions, consisting of JLWA, Safir, Secure Source
      and
      Hyperion Risk, and the 2007 acquisitions, consisting of On Line Consulting,
      Bode
      and Facticon, included for the periods preceding the acquisition of their
      respective net assets or common stock. The respective acquisition dates are
      March 10, 2006 for JLWA, May 12, 2006 for both Safir and Secure Source, August
      10, 2006 for Hyperion Risk, January 9, 2007 for On Line Consulting and February
      28, 2007 for Bode and Facticon.




For
                  the Three Months Ended March 31,2007
            
            2006Revenues
            
            $
            24,620,000
            
            $
            22,712,000Net
                loss
            
            $
            (4,311,000
            )
            $
            (389,000
            )Pro-forma
                basic and diluted
              net
                loss per common share
            
            $
            (1.48
            )
            $
            (0.15
            )Pro-forma
                weighted average
              common
                shares outstanding
              -
                basic and diluted
            
            
            2,908,522
            
            
            2,580,626




The
      pro
      forma combined results are not necessarily indicative of the results that
      actually would have occurred if the acquisitions of JLWA, Safir, Secure Source,
      Hyperion Risk, On Line Consulting, Bode and Facticon had been completed as
      of
      the beginning of 2007 or 2006, nor are they necessarily indicative of future
      consolidated results.





**5.
      Inventories**





Inventories
      consisted of the following as of March 31, 2007:





Raw
                materials
            
            $
            1,355,985Work
                in progress - DNA analysis
            
            
            887,607Finished
                goods
            
            
            633,7152,877,307Less:
                reserves for obsolescence
            
            
            (256,000
            )Inventories,
                net
            
            $
            2,621,307


16
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**6.
      Intangible Assets and Goodwill**





***Intangible
      Assets***





Intangible
      assets consist of amounts related to the 2006 acquisitions, consisting of JLWA,
      Safir, Secure Source and Hyperion Risk, and the 2007 acquisitions, consisting
      of
      On Line Consulting, Bode and Facticon. Intangible assets at March 31, 2007
      consisted of the following:





Amount
            
            Weighted
                Average
              Amortization
                PeriodTrade
                names
            
            $
            2,820,000
            
            
            8.8Developed
                technology
            
            
            439,690
            
            
            3.1Non-compete
                agreements
            
            
            1,499,222
            
            
            3.0Client
                relationships
            
            
            6,510,000
            
            
            4.211,268,912Less: accumulated amortization
            
            
            (2,715,392
            )Intangible
                assets, net
            
            $
            8,553,520










The
      estimated amortization of amortizable intangible assets for the five years
      ending March 31, 2012 is as follows:


For
                the Years
              Ending
              March
                31,
            
            Total
            
            Trade
                Names
            
            Developed
              Technology
            
            Non-CompeteAgreements
            
            Client
              Relationships2008
            
            $
            2,656,750
            
            $
            351,000
            
            $
            151,136
            
            $
            498,241
            
            $
            1,656,3732009
            
            
            2,426,599
            
            
            351,000
            
            
            117,850
            
            
            401,728
            
            
            1,556,0212010
            
            
            1,050,697
            
            
            351,000
            
            
            22,000
            
            
            84,713
            
            
            592,9842011
            
            
            824,001
            
            
            341,000
            
            
            22,000
            
            
            -
            
            
            461,0012012
            
            
            467,456
            
            
            248,272
            
            
            20,108
            
            
            -
            
            
            199,076Totals
            
            $
            7,425,503
            
            $
            1,642,272
            
            $
            333,094
            
            $
            984,682
            
            $
            4,465,455







During
      the three months ended March 31, 2007 and 2006, the Company recorded
      amortization expense related to the acquired amortizable intangibles of
      $705,903, and $148,700, respectively.





***Goodwill***




A
      summary
      of goodwill as of March 31, 2007 is as follows:




CBR-Investigations
                and LitigationSupport
            
            JLWA-Crisis
                Management and CorporateGovernance
            
            Safir-
                Risk Managementand
                Security
            
            TotalBalance
                as of January 1, 2007
            
            $
            5,945,214
            
            $
            883,183
            
            $
            11,748,864
            
            $
            18,577,261Acquisition
                of On Line Consulting
            
            
            -
            
            
            -
            
            
            1,320,229
            
            
            1,320,229Acquisition
                of Bode
            
            
            -
            
            
            -
            
            
            575,250
            
            
            575,250Acquisition
                of Facticon
            
            
            2,420,181
            
            
            -
            
            
            -
            
            
            2,420,181Balance
                as of March 31, 2007
            
            $
            8,365,395
            
            $
            883,183
            
            $
            13,644,343
            
            $
            22,892,921


17
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**7. 
      Property and Equipment**




At
      March
      31, 2007, property and equipment is comprised of the following:





Computer
                equipment and software
            
            $
            1,603,037Laboratory
                equipment
            
            
            1,091,991Furniture
                and fixtures
            
            
            768,554Vehicles
            
            
            162,029Leasehold
                improvements
            
            
            2,286,6725,912,283Less:
                accumulated depreciation and amortization
            
            
            (750,755
            )Property
                and equipment, net
            
            $
            5,161,528




Depreciation
      and amortization of property and equipment for the three months ended March
      31,
      2007 and 2006 was $166,133 and $31,760 respectively. Included in property and
      equipment at March 31, 2007 are vehicles and equipment held under capital leases
      with a net book value of $73,679 .





**8.**  **Accrued
      Compensation and Related Benefits**





At
      March
      31, 2007, accrued compensation and related benefits is comprised of the
      following:





Accrued
                bonuses
            
            $
            566,515Accrued
                payroll and commissions
            
            
            1,497,543Accrued
                employee benefits
            
            
            677,213Total
                accrued compensation and related benefits
            
            $
            2,
                741,271





**9. 
      Line of Credit**




The
      Company has a line of credit agreement with a financial institution. Effective
      on October 12, 2006, the line of credit was amended to increase the facility
      amount to $5,000,000 and to extend the expiration date to October 11, 2007.
      At
      March 31, 2007, there was no balance outstanding under the line of credit (See
      also Note 18).




**10. 
      Due to Former Members of JLWA for Earnout**




At
      March
      31, 2007, the amount due to the former members of JLWA for the Earnout liability
      due under the JLWA
      Earnout Agreement was $6,447,875. The amounts charged to expense and included
      in
      selling and marketing expenses in the accompanying condensed
      consolidated statement of operations for the three months ended March 31,
      2007 and 2006 related to the Earnout  were $1,219,890 and $496,040,
      respectively (See also Note 18).


18
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**11.
      Notes Payable for acquisitions**





At
      March
      31, 2007, notes payable consists of the following:




Note
                payable to seller for Secure Source Acquisition (See Note
                4)
            
            $
            1,250,000Note
                payable to seller for Safir Acquisition (See Note 4)
            
            
            190,523Note
                payable to seller for Facticon Acquisition (See Note 4)
            
            
            100,000Note
                payable to seller for On Line ConsultingAcquisition
                (See Note 4)
            
            
            560,790Total
            
            
            2,101,313Less
                - current portion
            
            
            (1,459,608
            )Long-term
                portion
            
            $
            641,705





During
      the three months ended March 31, 2007, the Company repaid $400,000 and $90,296,
      respectively, related to notes payable for the Witt and Safir
      acquisitions.




The
      scheduled maturities of notes payable are shown in the following
      table:





For
                the YearsEnding
                March 31,
            
            Amount2008
            
            $
            1,459,6082009
            
            
            391,7052010
            
            
            250,000Total
            
            $
            2,101,313


19
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**12. 
      Commitments**




***Employment
      Agreements***





In
      January 2007, concurrently with the Company’s acquisition of On Line Consulting
      (See Note 4), GlobalOptions entered into a three year employment agreement
      with
      Sandor P. Zirulnik, the founder of On Line Consulting. Pursuant to the
      agreement, Mr. Zirulnik became the Senior Executive Officer of the division
      known as GlobalOptions/Safir Rosetti Security Division and agreed to perform
      such other duties and responsibilities as the Chief Executive Officer of the
      Company or his designee shall from time to time reasonably assign to
      him.   Mr. Zirulnik’s salary is $200,000 per annum for the first
      year; $210,000 per annum for the second year; and $225,000 for the third year
      and he shall be eligible for a discretionary bonus up to $100,000. The
      employment agreement may be terminated for cause by GlobalOptions, upon the
      death or disability of the executive, or upon 30-days’ notice by either party.
      In the event GlobalOptions terminates the employment agreement without cause
      during the initial term, it is required to pay Mr. Zurulnik his current base
      salary, bonus and certain benefits through January 31, 2010. The employment
      agreement also contains non-compete and non-solicitation provisions for 12
      months following termination, as well as confidentiality
      provisions.




In
      March
      2007, concurrently with the Company’s acquisition of Bode (See Note 4), Bode
      entered into a two year employment agreement with Maureen M.
      Loftus.   Pursuant to the agreement, Ms. Loftus became the
      President of the division known as GlobalOptions/Bode and agreed to other duties
      and responsibilities as the Chief Executive Officer of the Company or his
      designee, shall from time to time reasonably assign to her.   She
      has agreed to devote her full time to GlobalOptions at a salary
      of   $190,992 per annum and she shall be eligible for a bonus
      based upon approved goals.   The employment agreement may be
      terminated for cause by GlobalOptions, upon the death or disability of the
      executive, or upon 30-days’ notice by either party. In the event GlobalOptions
      terminates the employment agreement without cause during the initial term,
      it is
      required to pay Ms. Loftus her current base salary and certain benefits through
      March 2009. The employment agreement also contains non-compete and
      non-solicitation provisions for 12 months following termination, as well as
      confidentiality provisions.





In
      March
      2007, concurrent with GlobalOptions’ acquisition of Bode (See Note 4), Bode
      entered into a two-year employment agreement with Phillip E. Crowther. Pursuant
      to the agreement, Mr. Crowther became the Controller and Chief Financial Officer
      of the division known as GlobalOptions/Bode at a salary of $106,046 per annum,
      and is eligible for a bonus based upon approved goals. The employment agreement
      may be terminated for cause by GlobalOptions, upon the death or disability
      of
      the executive, or upon a 30-day notice by either party. In the event
      GlobalOptions terminates the employment agreement without cause during the
      initial term, it is required to pay Mr. Crowther his current base salary and
      certain benefits through March 2009. The employment agreement also contains
      non-compete and non-solicitation provisions for 12 months following termination,
      as well as confidentiality provisions.





In
      March
      2007, concurrently with the Company’s acquisition of Facticon (See Note 4),
      GlobalOptions entered into a three year employment agreement with Jim
      Jensen.   Pursuant to the agreement, Mr. Jensen became the
      Northeast Regional Vice President of the division known as
      GlobalOptions/Facticon and agreed to other duties and responsibilities as the
      Board of Directors shall from time to time reasonably assign to
      him.   Mr. Jensen has agreed to devote his full time to
      GlobalOptions at a salary of $100,000 per annum for the year 2007 (pro-rated),
      $110,000 per annum for the year 2008, and $120,000, per annum for the year
      2009 and shall be eligible for a bonus based upon approved
      goals.   The employment agreement may be terminated for cause by
      GlobalOptions, upon the death or disability of the executive, or upon 30-days’
notice by either party. In the event GlobalOptions terminates the employment
      agreement without cause during the initial term, it is required to pay Mr.
      Jensen his current base salary and certain benefits through March 2009. The
      employment agreement also contains non-compete and non-solicitation provisions
      for 12 months following termination, as well as confidentiality
      provisions.





In
      March
      2007, concurrently with the Company’s acquisition of
      Facticon,   GlobalOptions entered into a three year employment
      agreement with John Bullock.   Pursuant to the agreement, Mr.
      Bullock became the Northeast Regional Vice President of the division known
      as
      GlobalOptions/Facticon and agreed to other duties and responsibilities as the
      Board of Directors shall from time to time reasonably assign to
      him.   Mr. Bullock has agreed to devote his full time to
      GlobalOptions at a salary of $100,000 per annum for the year 2007 (pro-rated),
      $110,000 per annum for the year 2008, and $120,000 per annum for the year 2009
      and shall be eligible for a bonus based upon approved
      goals.   The employment agreement may be terminated for cause by
      GlobalOptions, upon the death or disability of the executive, or upon 30-days’
notice by either party. In the event GlobalOptions terminates the employment
      agreement without cause during the initial term, it is required to pay Mr.
      Bullock his current base salary and certain benefits through March 2009. The
      employment agreement also contains non-compete and non-solicitation provisions
      for 12 months following termination, as well as confidentiality
      provisions.




20
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**12. 
      Commitments, continued**





***Operating
      Leases***




Through
      the acquisition of On Line Consulting, the Company assumed the operating lease
      for office space located in Oakland, California.   The lease is
      for approximately $5,000 per month and extends through September
      2011.


******


Through
      the acquisition of Bode, the Company assumed the operating lease for office
      space, located in Lorton, Virginia.   The lease is for
      approximately $59,000 per month and has a remaining term through August
      2016.





In
      connection with the acquisitions of CBR, JLWA, Safir, Secure Source, Hyperion
      Risk, On Line Consulting and Bode, GlobalOptions assumed the obligations for
      various office leases. Such lease obligations expire at various dates through
      August 2016.





Future
      minimum lease payments under these leases are as follows:





For
                the Year
              Ending
                March 31,2008
            
            $
            2,684,4312009
            
            
            2,225,7482010
            
            
            2,180,1802011
            
            
            2,100,6142012
            
            
            1,563,395Thereafter
            
            
            4,455,954Total
            
            $
            15,210,322





Rent
      expense charged to operations amounted to approximately $1,408,000 and $503,000
      for the three months ended March 31, 2007 and 2006, respectively.





The
      terms
      of certain of the Company’s lease obligations provide for scheduled escalations
      in the monthly rent. In accordance with SFAS No. 13, “Accounting for Leases,”
the non-contingent rent increases are being amortized over the life of the
      leases on a straight line basis. Deferred rent obligations of $281,630
      represents the long term unamortized rent adjustment amount at March 31, 2007.
      In addition, the current portion of deferred rent obligations is $70,121 at
      March 31, 2007 and is reflected within other current liabilities in the
      condensed consolidated balance sheet.





******  **13.**  ******  **Stockholders’
      Equity**





***Common
      Stock***





During
      the three months ended March 31, 2007, the Company issued 3,125 shares of common
      stock in connection with the conversion of 50 shares of Series A Convertible
      Preferred Stock.





On
      January 1, 2007, through the 2006 Long Term Incentive Plan, the Company issued
      3,471 shares of common stock with a value of $41,652 to various
      employees.





During
      the three months ended March 31, 2007, the Company issued 88,236 shares of
      common stock in connection with the exercise of stock options resulting in
      proceeds of $48,000.




During
      the three months ended March 31, 2007, the
      Company issued 39,706 shares of common stock in connection with the cashless
      exercise of 110,294 options.




The
      Company issued common stock in connection with
      the acquisitions of On Line Consulting, Bode and Facticon (See Note
      4).


21
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)





**13.**  ******  **Stockholders’
      Equity, continued**





***Warrants
      (Series B-1 and Series B-2)***




During
      the three months ended March 31, 2007, as a result of adjustments with regard
      to
      anti-dilution protection, the number of outstanding Series B-2 warrants was
      increased from 1,160,906 to 1,185,872 and the warrant exercise price was reduced
      from $22.48 to $ 22.32.





A
      summary
      of the Company’s Series B-1 and B-2 warrants outstanding and fully exercisable
      at March 31, 2007 is presented in the table below, after the effect of the
      dilutive adjustment during such quarter:








Exercise
                Prices$
            17.20
            
            $
            22.32
            
            
            TotalSeries
                B-1
            
            
            1,160,918
            
            
            -
            
            
            1,160.918Series
                B-2
            
            
            -
            
            
            1,185,872
            
            
            1,185,872Outstandingand
                exercisable
            
            
            1,160,918
            
            
            1,185,872
            
            
            2,346,790




**14.
      Stock Options**




***2006
      Long-Term Incentive Plan***





During
      the three months ended March 31, 2007, in connection with expected performance
      under the bonus plan, a portion of the restricted stock became vested, resulting
      in an adjustment for stock-based compensation of $136,719.





***Stock-Based
      Compensation***





On
      November 18, 2005, the Company granted an option to a consultant who also serves
      as the Company’s Chief Financial Officer, to purchase 62,500 shares of common
      stock at $20.00 per share. This option has a term of five years, is
      non-forfeitable and vests over three years. This option was initially valued
      at
      approximately $865,000 utilizing the Black-Scholes option pricing model and
      is
      being amortized to stock-based compensation over the three year vesting period
      in accordance with Emerging Issues Task Force pronouncement No. 96-18 -
“Accounting for Equity Instruments That are Issued to Other than Employees for
      Acquiring, or in Conjunction with Selling, Goods or Services” (“EITF 96-18”). On
      a quarterly basis, the Company adjusts the unvested value on a mark-to-market
      basis, and the cumulative effect of the adjustment amount on amortization is
      reflected in current period amortization. During the three months ended March
      31, 2007, approximately $4,000 was amortized to stock-based compensation expense
      related to this option and recorded within general and administrative expenses.
      At March 31, 2007, the fair value of the option was approximately $377,000
      and
      the unamortized value was approximately $204,000.


22
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)





**14.
      Stock Options, continued**





***Stock-Based
      Compensation, continued***





****** On June
      12, 2006, the Company granted an option to its consultant who also serves as
      the
      Company’s Chief Financial Officer, to purchase 62,500 shares of common stock at
      $17.60 per share. This option has a term of five years, is non-forfeitable
      and
      vests over three years. This option was initially valued at
      approximately $779,000 utilizing the Black-Scholes option pricing model and
      is being amortized to stock-based compensation over the three year vesting
      period in accordance with EITF 96-18. On a quarterly basis, the Company adjusts
      the unvested value on a mark-to-market basis, and the cumulative effect of
      the
      adjustment amount on amortization, at the end of each vesting period, is
      reflected in current period amortization. During the three months ended March
      31, 2007, approximately $9,000 was amortized to stock-based compensation expense
      related to this option and recorded within general and administrative expenses.
      At March 31, 2007, the fair value of the option was approximately $346,000
      and
      the unamortized value was approximately $261,000.





On
      January 1, 2007, the Company granted, in the aggregate, options for the purchase
      of 18,750 shares of its common stock at an exercise price of $11.36 per share,
      under the 2006 Long-Term Incentive Plan, to three members of the Board of
      Directors. The options have a five year term and vest ratably at the end of
      each
      of the four quarterly periods following the date of grant.





On
      January 1, 2007, the Company issued stock options for the purchase of 13,750
      shares of its common stock at an exercise price of $11.36 per share, under
      the
      2006 Long Term Incentive Plan to certain members of its advisory boards in
      exchange for their advisory services to the Company.   The
      options have a five year term and vest ratably at the end of each of the four
      quarterly periods following the date of grant.





On
      January 10, 2007, the Company granted, in the aggregate, options for the
      purchase of 26,423 shares of its common stock at an exercise price of $11.36
      per
      share with a value of approximately $212,000 under the 2006 Long-Term Incentive
      Plan to employees and officers of On Line Consulting.   The
      options have a five year term and vest ratably upon the first, second and third
      anniversaries of the date of grant.





On
      February 28, 2007, the Company granted, in the aggregate, options for the
      purchase of 38,894 shares of its common stock at an exercise price of $10.80
      per
      share with a value of approximately $297,000 under the 2006 Long-Term Incentive
      Plan to employees and officers of Facticon.   The options have a
      five year term and vest ratably upon the first, second and third anniversaries
      of the date of grant.





On
      February 28, 2007, the Company granted, in the aggregate, options for the
      purchase of 62,504 shares of its common stock at an exercise price of $10.80
      per
      share with a value of approximately $476,000 under the 2006 Long-Term Incentive
      Plan to employees and officers of Bode.   The options have a five
      year term and vest ratably upon the first, second and third anniversaries of
      the
      date of grant.




At
      March
      31, 2007, the unamortized value of employee stock options under SFAS 123R was
      approximately $4,855,000. The unamortized portion will be expensed over a
      weighted average period of 1.56 years. For the three months ended March 31,
      2007
      and 2006, costs of approximately $714,000 and $278,000, respectively were
      recognized in connection with the vesting of these stock
      options.




Stock-based
      compensation for non-employees accounted for under EITF 96-18 was approximately
      $60,000 and $96,000 for the three months ended March 31, 2007 and 2006,
      respectively, and is reflected within general and administrative
      expenses.


23
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**14.
      Stock Options, continued**





***Stock-Based
      Compensation, continued***





The
      fair
      value of each option grant during the years ended March 31, 2007 and 2006 was
      estimated on the date of grant using the Black-Scholes option pricing model
      with
      the following assumptions used:





Three
                Months Ended March 31,2007
            
            2006Dividend
                yield
            
            
            0
            %
            
            0
            %Expected
                volatility
            
            
            87
            %
            
            87
            %Risk-free
                interest rate
            
            
            4.54
            %
            
            3.0
            %Expected
                lives
            
            
            5
                years
            
            
            5
                years





The
      weighted average fair value of the options on the date of grant, using the
      fair
      value based methodology for the three months ended March 31, 2007 and 2006
      was
      $7.86 and $12.47, respectively.




A
      summary
      of options outstanding for the three months ended March 31, 2007 is as
      follows:





**Number
                of Options**
            
            **Weighted**
              **Average**
              **Exercise**
              **Price**Options
                outstanding at January 1, 2007
            
            
            1,030,562
            
            $
            13.65Granted
            
            
            160,321
            
            
            11.00Exercised
            
            
            (198,530
            )
            
            2.93Forfeited
            
            
            (52,549
            )
            
            9.94Options
                outstanding at March 31, 2007
            
            
            939,804
            
            $
            14.88








24
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**14.
      Stock Options, continued**





***Stock-Based
      Compensation, continued***





A
      summary
      of the Company’s stock options outstanding and exercisable at March 31,
      2007 is presented in the table below:





TotalOption
                Exercise
              Price
                Range
            
            $
            4.80
            
            $
            5.44
            
            $
            6.80
            
            $
              $
            10.76
                -
              11.36
            
            $
              $
            16.08
                -
              20.00Outstanding
            
            
            79,897
            
            
            6,194
            
            
            7,353
            
            
            160,321
            
            
            686,039
            
            
            939,804Weighted
                average
              remaining
              contractual
                life of
              options
                outstanding
              (in
                years)
            
            
            2.4
            
            
            2.6
            
            
            1.3
            
            
            4.9
            
            
            3.9Exercisable
            
            
            61,314
            
            
            4,249
            
            
            7,353
            
            
            8,125
            
            
            179,482
            
            
            260,523








25
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**15.   Client
      and Segment Data**





The Company’s reportable operating segments services consisted of the
      following three business segments: CBR -Investigations and Litigation Support,
      JLWA-Crisis Management and Corporate Governance, and Safir - Risk
      Management and Security. The Company’s reportable segments are organized,
      managed and operated along key product lines. These product lines are provided
      to similar clients, are offered together as packaged offerings, generally
      produce similar margins and are managed under a consolidated operations
      management.




The
      CBR -
      Investigations and Litigation Support segment includes activities from
      litigation support, due diligence, inventory control, asset recovery, and
      business intelligence.





The
      JLWA
      - Crisis Management and Corporate Governance segment includes activities
      related to risk planning and response to natural disasters, kidnappings, labor
      disputes, bombings, product tampering and industrial espionage.




The
      Safir
      - Risk Management and Security segment includes activities from threat and
      vulnerability assessments; fraud prevention; IT security, technical
      systems/counter-measures both nationally and internationally, forensic DNA
      analysis, proprietary DNA collection products, and related research services
      to
      law enforcement agencies, federal and state governments, crime laboratories
      and
      disaster management organizations.





Total
      revenues by segment include revenues to unaffiliated clients. The Company
      evaluates performance based on income (loss) from
      operations.   Operating income (loss) is gross profit less
      operating expenses.





The
      following tables summarize financial information (in thousands) about the
      Company’s business segments for the three months ended March 31, 2007 and 2006.
 The Company’s segment information for the three months ended March 31,
      2007 is presented on a basis different then for the three months ended March
      31,
      2006:




**For
                the Three Months Ended March 31, 2007**CBR-Investigations
                and Litigation Support
            
            JLWA-Crisis
                Management and CorporateGovernance
            
            Safir-Risk
                Management andSecurity
            
            Corporate
            
            ConsolidatedRevenues
            
            $
            4,869
            
            $
            10,315
            
            $
            6,204
            
            $
            -
            
            $
            21,388(Loss)
                Income from
              Operations
            
            $
            (2,668
            )
            $
            492
            
            $
            (640
            )
            $
            -
            
            $
            (2,816
            )Depreciation
                and
              Amortization
            
            $
            314
            
            $
            305
            
            $
            254
            
            $
            -
            
            $
            873Interest
                Expense
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            26
            
            $
            26


26
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)





**15.
      Client and Segment Data, continued**




**For
                the Three Months Ended March 31, 2006**CBR-Investigations
                and LitigationSupport
            
            JLWA-Crisis
                Management and CorporateGovernance
            
            Safir-Risk
                Managementand
                Security
            
            Corporate
            
            ConsolidatedRevenues
            
            $
            3,165
            
            $
            2,919
            
            $
            151
            
            $
            -
            
            $
            6,235Loss
                from
              Operations
            
            $
            (634
            )
            $
            (423
            )
            $
            6
            
            $
            -
            
            $
            (1,051
            )Depreciation
                and
              Amortization
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            261
                -
            
            $
            261Interest
                Expense
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            182
            
            $
            182








**16.
      Major Clients/Customers**





Revenues
      from the Company’s services to a limited number of clients have accounted for a
      substantial percentage of the Company’s total revenues. The Company’s two
      largest clients accounted for approximately 42% and 13% of revenues for the
      three months ended March 31, 2007, of which the 42% of revenue from
      one client represented work performed under government contracts. The
      Company’s two largest clients also accounted for approximately 38% and 26% of
      the Company’s revenues for the three months ended March 31, 2006.





For
      the
      three months ended March 31, 2007, within the JLWA-Crisis Management and
      Corporate Governance segment, the largest client within the segment
      represented 42% of the Company’s overall revenue.   Within the
      CBR-Investigations and Litigation Support segment, the largest client
      within the segment represented 13% of the Company’s overall
      revenues.   Within the Safir-Risk Management and Security
      segment, the largest client represented 3% of the Company’s overall
      revenue.




For
      the
      three months ended March 31, 2007 and 2006, respectively, government contract
      clients as a whole represented 48% and 42% of the Company’s net revenues, the
      most significant of which represented 92% of the Company’s net revenues within
      the JLWA-Crisis Management and Corporate Governance segment.




**17.
      Related Party Transactions**





The
      Company also had a rental agreement with the QuanStar Group which expired during
      2006. The Company incurred rent expense with the QuanStar Group of approximately
      $27,100 for the three months ended March 31, 2006 for the Company’s
      administration headquarters.


27
 **GLOBALOPTIONS
          GROUP, INC. AND SUBSIDIARIES**
 Notes
          to
          Condensed Consolidated Financial Statements
 (Unaudited)


**18.
      Subsequent Events**


***JLWA
        Earnout Modification***
 
 On
        May
        11, 2007, the Company reached an agreement with the sellers of JLWA (“JLWA
        Sellers”) to enter into a second amendment to the January 13, 2006 asset
        purchase agreement, which was amended February 28, 2006 (“Seller Modification
        Agreement”).  Under the modification, the Company has agreed to make
        additional payments in the form of cash and common stock and to eliminate
        entirely the obligations under the earnout provisions of the agreement (which
        provided for a maximum additional payout of $15,400,000).
 
 The
        additional payments under the agreement consist of (i) a cash payment of
        $2,000,000  paid on May 14, 2007, (ii) a cash payment of principal of
        $4,500,000 plus interest at 5.65% per annum  under a promissory note which
        will be due on January 15, 2008,  subject to a 5% penalty fee if not paid
        on such due date, (iii) the issuance of 300,000 shares of common stock on
        January 15, 2008, which have been previously registered at the time of issuance
        and (iv) a cash payment of principal of $4,300,000 plus interest at 11.0%
        per
        annum under a promissory note which will be due on August 11, 2008,
  The JLWA Sellers may demand acceleration of this $4,300,000 cash
        payment upon the Company completing a qualifying capital raise, pursuant
        to the
        promissory note agreement.
 
 Further,
        in connection with the execution of the Seller Modification Agreement, the
        Company executed an amendment of the employment and non-competition agreement
        with Mr. Witt.  Under the terms of the modification, upon termination of
        employment without good reason, Mr. Witt would be obligated to reimburse
        the
        Company in an amount equal to (i) twenty five percent (25%) of the number
        of
        shares issued to JLWA Sellers within twelve months prior to such termination
        and
        (ii)  twenty five percent (25%) of the base salary of Mr. Witt paid within
        the twelve months prior to such termination.
 
 ***Note
        Payable Modification - Secure Source***
 
 On
        May
        10, 2007, the Company reached an agreement with the sellers of Secure Source
        to
        extend the due date to May 31, 2007 of the note payable installment in the
        amount of $750,000.
  ***Line
        of Credit Agreement Modification***
 
 On
        May
        14, 2007, the financial institution that provides the line of credit has
        increased to $15,000,000 the amount available under the line of credit. Pursuant
        to the agreement, the Company (including Bode) granted the financial institution
        a security interest in, and pledged and assigned to the Bank, substantially
        all
        of the Company’s current and future acquired personal property. Furthermore,
        GlobalOptions Group reaffirmed its unconditional guaranty originally made
        on
        March 8, 2006. Pursuant to the reaffirmation, the Company acknowledged that
        its
        guaranty of the loan provided to the Company and the corresponding grant
        of a
        security interest in all of its property apply to the subject financial
        institution’s loan agreements and any other agreements, assignments or
        instruments relating to such indebtedness. In connection with the modification,
        Bode entered into an Intellectual Property Security Agreement with the Bank
        (the
        "IP Security Agreement") pursuant to which Bode granted the financial
        institution a security interest in all of its rights, titles and interests
        in,
        to and under its intellectual property.







28




**ITEM
        2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
        OPERATION**
  *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**
 
 Information
        included or incorporated by reference in this Quarterly Report on Form 10-QSB
        may contain forward-looking statements. This information may involve known
        and
        unknown risks, uncertainties and other factors which may cause our actual
        results, performance or achievements to be materially different from the
        future
        results, performance or achievements expressed or implied by any forward-looking
        statements. Forward-looking statements, which involve assumptions and describe
        our future plans, strategies and expectations, are generally identifiable
        by use
        of the words "may," "should," "expect," "anticipate," "estimate," "believe,"
        "intend" or "project" or the negative of these words or other variations
        on
        these words or comparable terminology.
  This
        Quarterly Report Form 10-QSB contains forward-looking statements, including
        statements regarding, among other things, (a) our projected sales and
        profitability, (b) our growth strategies, (c) anticipated trends in our
        industry, (d) our future financing plans and (e) our anticipated needs for
        working capital. These statements may be found under "Management's Discussion
        and Analysis or Plan of Operations" and "Description of Business," as well
        as in
        this Quarterly Report. Actual events or results may differ materially from
        those
        discussed in forward-looking statements as a result of various factors,
        including, without limitation, the risks outlined under "Risk Factors" and
        matters described in this Quarterly Report. In light of these risks and
        uncertainties, there can be no assurance that the forward-looking statements
        contained in this Quarterly Report will in fact occur.
 
 **General**
  We
        are a
        provider of risk mitigation services to Fortune 500 corporations, governmental
        organizations and high-profile individuals throughout the world. Our risk
        mitigation services currently include investigations and litigation support,
        risk management, security, crisis management and corporate governance. Our
        investigations and litigation segment operates primarily domestically. We
        have
        many engagements in the remainder of our business that may take our staff
        around
        the world and are typically highly sensitive engagements where we are
        interacting with senior leaders in both corporations and governments. Our
        overall mission is to identify, evaluate, assess and prevent issues that
        may
        threaten people, organizations or strategic initiatives for companies and
        governments around the globe.
 
 Founded
        in 1998, the management, staff and advisory boards include security and
        terrorism experts from America’s elite military units, former intelligence and
        law enforcement officers, professional investigators, and legal and crisis
        communications specialists. We provide services to governments, law firms,
        private clients and corporations, including two of the ten largest corporations
        in the world.
 
 We
        have
        been awarded “approved” status as a vendor of consulting and related services to
        United States government agencies by the U.S. General Services Administration
        (GSA). We are a MOBIS (management, organizational and business improvement
        services) contractor and members of our staff have high-level security
        clearances.
 
 **Company
        Overview**
  GlobalOptions
        Group, Inc. through its wholly-owned subsidiaries GlobalOptions, Inc. and
        The
        Bode Technology Group, Inc. (which was acquired on February 28, 2007) is
        a
        provider of high-end risk mitigation services to Fortune 500 corporations,
        governmental organizations and high-profile individuals throughout the world.
        Our risk mitigation services currently include risk management and security,
        investigations and litigation support, and crisis management and corporate
        governance. These engagements take our staff around the world and are typically
        highly sensitive engagements where we interact with senior leaders in both
        corporations and governments. Our overall mission is to identify, evaluate,
        assess and prevent issues that may threaten people, organizations or strategic
        initiatives for companies and governments around the globe.
  29
 Our
        management, staff and advisory boards include security and terrorism experts
        formerly in the military, former intelligence and law enforcement officers,
        professional investigators, and legal and crisis communications specialists.
        We
        provide services to governments, law firms, private clients and
        corporations.
  We
        have
        been awarded “approved” status as a vendor of consulting and related services to
        United States government agencies by the U.S. General Services Administration
        (GSA). We are a MOBIS (management, organizational and business improvement
        services) contractor and members of our staff have high-level security
        clearances.
  **Business
        Services by Segment**
  We
        are
        organized into three segments which are as follows:
 
 **Confidential
        Business Resources (“CBR”) - Investigations and Litigation
        Support**
  We
        believe that the difference between business success and failure is often
        information. Our investigative team includes highly educated and trained
        investigators who understand the complexities in uncovering factual
        circumstances surrounding sensitive investigations. Our specialists have
        extensive experience providing investigative and business intelligence services
        to law firms, corporations and individuals, both domestically and
        abroad.
  Our
        investigators have access to extensive public and proprietary databases and
        are
        experienced in developing case facts through on-site interviews and domestic
        and
        offshore searches. Our investigators provide reports and intelligence for
        clients on everything from country risk, unfair trade practices, new markets,
        political trends, economic forecasts, profiles on competitors and satellite
        reconnaissance.
  We
        have
        conducted investigations that impeach witnesses, disprove factual allegations
        and raise alternative theories of cause. We have investigated judicial
        corruption, jury tampering, questionable “expert witnesses,” conspiracies to
        defraud, industrial espionage, potential business investments, recovery of
        assets, defense against class action suits, trademark infringement, political
        opposition research and insurance fraud. Asbestos and product liability cases
        are our specialties and we work with a wide range of clients, especially
        in the
        automotive and related industries.
  During
        the three months ended March 31, 2007, we completed 3,415
        investigations and litigation support projects with an average revenue of
        $1,426
        which totaled $4.9 million, accounting for approximately 23% of our revenues.
        During the three months ended March 31, 2006, we completed 3,265 investigations
        and litigation support projects with an average of approximately $1,000 and
        totaling $3.2 million, accounting for approximately 51% of our revenues.
        Investigation projects are typically of a duration of less than one week
        and
        involve assisting corporations with managing claims risk and supporting
        corporations and law firms with investigations and litigation
        support.
 
 **James
        Lee Witt Associates (“JLWA”) - Crisis Management and Corporate
        Governance**
  We
        assist
        governments, corporations and individuals in the development and implementation
        of crisis management and emergency response plans. Our staff is attuned to
        regional, national and international political issues and has government
        and
        media contacts worldwide. We believe that while public relations firms provide
        media expertise, they generally do not offer other critical skills, such
        as our
        ability to put management, security and communication resources on the ground
        in
        an expedited manner.
 
 We
        have
        implemented comprehensive security measures nationally at a major corporation
        targeted by animal rights activists, set up a 24/7 emergency hotline for
        employees of a large retail organization, conducted searches and rescue missions
        for kidnapped persons, and collected critical intelligence about foreign
        bribery
        efforts that threatened billions of dollars in United States sales.
  We
        work
        with clients to establish command procedures, train employees, coordinate
        rescue
        efforts and keep operations running. Whether dealing with a labor strike,
        security breach, natural disaster, cyber attack, kidnapping, family crisis,
        arrest, stolen intellectual property, or school or workplace violence issue,
        we
        believe we have the resources that can provide expert assistance.
 
 30
 During
        the three months ended March 31, 2007, we completed 36 crisis
        management and corporate governance projects with an average revenue of $287,000
        which totaled $10.3 million, accounting for approximately 48% of our revenues.
        During the three months ended March 31, 2006, we completed 29 crisis management
        and corporate governance projects with an average size of more than $111,000
        which totaled $2.9 million, accounting for approximately 47% of our
        revenues.
 
 **SafirRosetti
        (“Safir”) - Risk Management and Security**
 
 We
        help
        clients solve problems that fall outside the scope of mainstream management
        resources by providing highly specialized and customized security services.
        We
        provide security assessments, executive protection, anti-terrorism training,
        threat analyses, fraud prevention techniques, special event security, protection
        from stalkers, private travel management and the design, implementation and
        management of total security systems. On February 28, 2007, we acquired Bode,
        which has enabled us to expand our security business to include DNA
        analysis.
  We
        have
        performed risk assessments of corporate headquarters, chemical weapon
        stockpiles, nuclear installations and reactors, factories, yachts, private
        aircraft, homes, transportation systems, government facilities, political
        conventions, sports stadiums and sporting events.
  During
        the three months ended March 31, 2007, we completed 685 risk
        management and security projects with an average
        revenue of approximately $9,000 which totaled $6.2 million, accounting
        for approximately 29% of our revenues. During the three months ended March
        31,
        2006, we completed 6 risk management and security projects with an average
        revenue of nearly $25,000 and totaling $151,000, accounting for approximately
        2%
        of our revenues.
 
 **Growth
        Strategy**
  We
        seek
        to build a significant integrated enterprise risk mitigation company. To
        realize
        our goal, we are pursuing a set of defined activities to achieve what we
        hope
        will be a market-leading industry position.
  We
        seek
        to leverage our industry relationships in order to identify complementary
        platform targets, raise capital, bring in a highly qualified management team
        and
        build synergies to execute our vision.
  We
        believe we have a management team and advisory boards in place that can help
        us
        execute our vision. We currently have a pipeline of acquisition candidate
        firms
        in the risk mitigation industry for which we are conducting due diligence.
  With
        virtually all the acquisition targets being private concerns, we expect that
        the
        negotiations would generally be with owner-operators that will not only bring
        new services to our Company but, also, highly capable management.
  Creating
        a well-known senior advisory board has given our management the experience
        and
        reputation beyond management’s own achievements to gain introductions at high
        levels of government and Fortune 500 companies. We expect the initial platform
        acquisitions to provide additional relationships with companies and individuals.
        We intend to make later product and service acquisitions that will help fill
        in
        product gaps, create more regional coverage and mass and, in turn, drive
        our organic revenue growth.
  Our
        business from our formation through August 2005 consisted of investigation,
        risk
        management and security operations conducted out of our office in Washington,
        D.C.
 
 On
        January 9, 2007, we acquired substantially all of the business and assets
        of SPZ
        Oakland Corporation, dba On Line Consulting Service, Inc. (“On Line
        Consulting”), a California corporation. On Line Consulting is a full service
        security and fire alarm consulting and design firm based in Oakland, California.
        The acquisition was made pursuant to a certain Asset Purchase Agreement dated
        January 9, 2007 (the “On Line Consulting Agreement”) between On Line Consulting
        and us. The aggregate purchase price paid for On Line Consulting’s business and
        assets was $2,658,000 and consisted of $1,308,000 in cash and $1,350,000
        in our
        common stock consisting of 84,375 shares at $16.00 per share and the assumption
        of certain liabilities. At closing, the Company paid $750,000 of the cash
        portion of the purchase price, and issued promissory notes for $417,000 due
        January 9, 2008, and $141,000 due on January 9, 2009. Further, at closing
        the
        Company delivered to the seller 46,875 shares of GlobalOptions common stock,
        with 37,500 shares to be held in escrow and delivered to the seller, 18,750
        shares on January 9, 2008, and 18,750 shares on January 9, 2009,
        respectively.
 
 On
        February 28, 2007, we acquired the common stock of The Bode Technology Group,
        Inc. ("Bode"), a Virginia corporation. Bode provides forensic DNA analysis,
        proprietary DNA collection products, and related research services to law
        enforcement agencies, federal and state governments, crime laboratories and
        disaster management organizations and is based in Lorton, Virginia. Bode
        was a
        wholly-owned subsidiary of ChoicePoint Inc., a Georgia corporation
        ("ChoicePoint"). The acquisition was made pursuant to a certain Stock Purchase
        Agreement, dated February 28, 2007 (the "Bode Agreement"), between ChoicePoint
        Government Services Inc., ChoicePoint and us. The aggregate purchase price
        paid
        was $12.5 million in cash and is subject to certain purchase price adjustments,
        as defined in the Bode Agreement. On March 8, 2007, Bode was reincorporated
        into
        Delaware.
 
 31
 On
        February 28, 2007, we acquired substantially all of the business and assets
        of
        Facticon, Inc. ("Facticon"), a Pennsylvania corporation. Facticon is a
        surveillance, investigative and intelligence firm based in Chadds Ford,
        Pennsylvania. The acquisition was made pursuant to a certain Asset Purchase
        Agreement, dated February 28, 2007 (the "Facticon Agreement"), between Facticon
        and us. The aggregate purchase price paid was $2,800,000, which consisted
        of
        $1,300,000 in cash, $100,000 in the form of an escrow note and $1,400,000
        in our
        common stock consisting of 87,500 shares at $16.00 per share and the assumption
        of certain liabilities.
 
 **Corporate
        History**
 
 GlobalOptions,
        Inc. (“GlobalOptions”), our wholly-owned subsidiary, was initially formed in
        November 1998 as a limited liability company (“LLC”) in the state of Delaware.
        On January 24, 2002, the LLC was converted into a Delaware
        corporation.
 
 On
        June 24, 2005, we completed a reverse merger transaction, in which
        GlobalOptions Acquisition Corp., a Delaware corporation and our newly-created,
        wholly-owned subsidiary (“GlobalOptions Acquisition”), merged with and into our
        operating company, GlobalOptions. At the time of the reverse merger, our
        corporate name was Creative Solutions with Art, Inc. (“Creative Solutions”).
        Following the reverse merger we changed our name to GlobalOptions Group,
        Inc.
        (“GlobalOptions Group”). As a result of the reverse merger, GlobalOptions became
        our wholly-owned operating subsidiary, with GlobalOptions’ former security
        holders acquiring a majority of the outstanding shares of our common stock,
        par
        value $.001 per share. The reverse merger was consummated under Delaware
        law and
        pursuant to an Agreement and Plan of Merger, dated June 24,
        2005.
 
 On
        December 8, 2006, we completed a “reincorporation merger” whereby we changed our
        state of incorporation from Nevada to Delaware. On March 6, 2007, the Company
        executed a 1 for 8 reverse stock split and began trading under the symbol
        GOPG.OB.
  **Overview**
  We
        experienced an increase in revenues of approximately $15,153,000 (243%) and
        reported operating losses of approximately $2,816,000 and $1,051,000 and
        net
        losses of $2,504,000 and $1,233,000 for the three months ended March 31,
        2007
        and 2006, respectively. The increase in revenues for the three months ended
        March 31, 2007 is primarily attributable to the full quarter revenues of
        our
        2006 acquisitions consisting of JLWA, Safir, Secure Source and Hyperion Risk
        and
        our 2007, acquisitions consisting of On Line Consulting, Bode and
        Facticon.
  Although
        we do have some long-term relationships with our clients, our ability to
        generate revenue is generally dependent upon obtaining many new projects
        each
        year, most of which are relatively short-term. Accordingly, period-to-period
        comparisons within a given year or between years will need to take this normal
        fluctuation into consideration.
 
 Our
        gross
        profit percentage was 46% for both of the three months ended March 31, 2007
        and
        2006.
 
 32
  While
        the
        financial results show a net loss for the three months ended March 31, 2007,
        we
        believe that we represent a unique opportunity to be a profitable global
        leader
        in the highly fragmented risk mitigation industry. GlobalOptions Group will
        serve as our nexus for a series of acquisitions that we believe will deliver
        capabilities, products and services designed to meet the ever increasing
        demand
        for the assessment and management of risk. We see no indication that the
        drivers
        of increased risk mitigation spending are likely to dissipate any time in
        the
        near future. Risk mitigation providers on both the product and services side
        are
        still fragmented and ripe for consolidation with no clear market leader or
        dominant brand. We believe there is an opportunity to provide comprehensive
        solutions which can drive increased revenues for a company that can build
        a
        comprehensive platform. We expect GlobalOptions Group to be that
        company.
  Our
        strategic vision is to build the first truly integrated enterprise risk
        mitigation company by selectively acquiring the best companies in the industry
        with proven management teams and a strategic long-term vision. Platform
        acquisitions will be geographically diverse and offer solutions in different
        risk mitigation segments to gain scope and synergies. Targets will have a
        combination of existing clients, revenue, significant channel presence and/or
        a
        high margin core business. From August 2005 through February 2007, we acquired
        CBR, JLWA, Safir, Secure Source, Hyperion Risk, On Line Consulting, Bode
        and
        Facticon. We continue to seek appropriate acquisition candidates.
 
 Because
        of the personal and sensitive nature of risk mitigation and investigative
        engagements, the ability to provide services and retain clients is driven
        largely by reputation and personal relationships. Under the leadership of
        Harvey
        W. Schiller, Ph.D., executive Chairman of the Board of Directors and Chief
        Executive Officer of GlobalOptions Group, Jeffrey O. Nyweide, our Chief
        Financial Officer, Executive Vice President-Corporate Development and Secretary,
        Thomas P. Ondeck, President of Global International, Halsey R. Fischer,
        President of Investigations of GlobalOptions, James Lee Witt, Chief Executive
        Officer of the GlobalOptions/James Lee Witt Division and Howard Safir, Senior
        Chief Executive Officer of GlobalOptions/Safir Rosetti Division. GlobalOptions
        Group provides not only vision, management and leadership, but strong
        relationships with leaders in both corporate and government markets.
        GlobalOptions Group has the relationships to bring in high-margin, well-known
        clients, while our operational experience allows for execution of these
        sensitive and critical engagements. Once these projects are completed, there
        are
        a variety of annuity-based, long-term products and services that can be combined
        into a comprehensive suite of solutions to evolve the business into a more
        profitable and recurring revenue product-based business.
 
 Acquired
        companies will give GlobalOptions Group a substantial revenue base, a wide
        array
        of products and services, geographic reach into almost every country in the
        world and experienced operators that will complement the current GlobalOptions
        Group team. Our objective is to sell bundled solutions and services through
        each
        acquired companies’ channels. To achieve revenue growth targets, GlobalOptions
        Group will use its own and acquired companies’ relationships to attain high-end,
        well-known risk mitigation engagements to accelerate our internal growth
        rate.
        The expectation is to leverage other GlobalOptions Group members, as opposed
        to
        using sub-contractors and joint ventures, to perform solutions and services,
        thereby keeping higher internal margins.
  We
        will
        also use a shared corporate services approach in administrative areas to
        keep
        indirect costs reasonable and to help us achieve profitability sooner. We
        expect
        to find savings in shared services such as global marketing, human resources,
        finance, information technology, mergers and acquisitions, business integration
        and development, compliance and legal fees.
 
 **Critical
        Accounting Policies**
 
 GlobalOptions
        Group’s significant accounting policies, including the assumptions and judgments
        underlying them, are more fully described in our “Notes to Condensed
        Consolidated Financial Statements” included in this Form 10-QSB for the three
        months ended March 31, 2007. Some of our accounting policies require the
        application of significant judgment by management in the preparation of the
        condensed consolidated financial statements, and as a result, they are subject
        to a greater degree of uncertainty. In applying these policies, management
        uses
        its judgment to determine the appropriate assumptions to be used in calculating
        estimates that affect the reported amounts of assets, liabilities, revenues
        and
        expenses. Management bases its estimates and assumptions on historical
        experience and on various other factors that are believed to be reasonable
        under
        the circumstances. GlobalOptions Group has identified certain of its accounting
        policies as the ones that are most important to the portrayal of our
        consolidated financial condition and results of operations and which require
        management to make its most difficult and subjective judgments, often as
        a
        result of the need to make estimates of matters that are inherently uncertain.
        GlobalOptions Group’s critical accounting policies include the
        following:
  33
 Revenue
        Recognition and Related Costs
 
 For
        investigation, crisis management and non-DNA related security, revenue is
        recognized as the services are performed pursuant to the applicable contractual
        arrangements. Revenue related to time and materials arrangements is recognized
        in the period in which the services are performed. Revenue related to fixed
        price arrangements are recognized based upon the achievement of certain
        milestones or progress points within the project plan. The impact of any
        revisions in estimated total revenue and direct contract costs is recognized
        in
        the period in which they become known. Expenses incurred by professional
        staff
        in the generation of revenue are billed to the client and recorded as revenue
        when incurred.
 
 For
        DNA
        related revenues through Bode, revenue is recognized when it is realized
        or
        realizable and earned. The Company considers revenue realized or realizable
        and
        earned when it has persuasive evidence that an agreement exists, prices are
        fixed or determinable, services and products are provided to the customer,
        and
        collectibility is reasonably assured. The Company reduces revenue for estimated
        discounts and other allowances.
 
 Revenues
        earned on Bode are derived from the following sources: (1) forensic DNA analysis
        (2) research and development projects, and (3) sales of DNA collection products.
        Bode recognizes revenues from forensic DNA analysis at the time tests are
        completed and the results are reported to the customer. Revenues from research
        and development projects are recognized as the related research is completed
        and
        when Bode has satisfied specific obligations under the terms of the respective
        agreements. Revenue from the sales of DNA collection products are recognized
        upon delivery of the products to the customer.
 
 Forensic
        DNA analysis is billed on a per sample fixed fee arrangement. Research and
        development projects are billed on a cost plus fixed fee
        arrangement.
 
 Costs
        incurred in the performance of forensic DNA analysis are recorded as inventories
        and charged to cost of revenues upon the completion of the project, which
        generally ranges from one to three months. Costs related to research and
        development projects are expensed as incurred and costs related to DNA
        collection products are maintained as inventory and charged to operations
        when
        the products are delivered.
 
 *Intangible
        Assets, Goodwill and Impairment*
 
 In
        accordance with the requirements of Statement of Financial Accounting Standards
        No. 141 (“SFAS No. 141”), “Business Combinations”, the Company recognizes
        certain intangible assets acquired in acquisitions, primarily goodwill, trade
        names, covenants not to compete, and client relationships.  In
        accordance with the provisions of SFAS No. 142, “Goodwill and Other Intangible
        Assets”, on a regular basis, the Company performs impairment analysis of the
        carrying value of goodwill and certain other intangible assets by assessing
        the
        recoverability when there are indications of potential impairment based on
        estimates of undiscounted future cash flows.
  *Allowance
        for Doubtful Accounts*
 
 The
        number of clients that comprise the Company’s client base, along with the
        different industries and geographic regions, including foreign clients, in
        which
        the Company’s clients operate, limits concentrations of credit risk with respect
        to accounts receivable. The Company does not generally require collateral
        or
        other security to support client receivables, although the Company does require
        retainers, up-front deposits or irrevocable letters-of-credit in certain
        situations. The Company has established an allowance for doubtful accounts
        based
        upon facts surrounding the credit risk of specific clients and past collections
        history. Credit losses have been within management’s expectations.
 
 34
 *Stock-Based
        Compensation*
 
 The
        Company accounts for equity instruments issued to non-employees in accordance
        with the provisions of SFAS 123R “Share-Based Payment” (SFAS 123R”) and the
        Emerging Issues Task Force (“EITF”) Issue No.  96-18, 
“Accounting  for  Equity  Instruments  That Are Issued to
        Other Than  Employees  for  Acquiring, or In 
Conjunction  with Selling,  Goods or Services” (“EITF 96-18”) which
        require that such equity instruments are recorded at their fair value on
        the
        measurement  date, which is typically the date the services are
        performed.  Stock based compensation for non-employees is accounted for
        under EITF 96-18 and is reflected within general and administrative
        expenses.
 
 The
        Company accounts for stock-based compensation in accordance with the provisions
        of SFAS 123R.
 
 The
        Company recognizes compensation costs over the requisite service period of
        the
        award, which is generally the vesting term of the options associated with
        the
        underlying employment agreement, where applicable.
  Option
        valuation models require the input of highly subjective assumptions including
        the expected life of the option. Because the Company's employee stock options
        have characteristics significantly different from those of traded options,
        and
        because changes in the subjective input assumptions can materially affect
        the
        fair value estimate, in management's opinion, the existing models do not
        necessarily provide a reliable single measure of the fair value of its employee
        stock options. The fair value of the stock based instruments was estimated
        on
        the date of grant using the model.
  **GlobalOptions
        Group’s Three Months Ended March 31, 2007 Compared to Three Months Ended March
        31, 2006**
 
 **CBR
        - Investigations and Litigation Support Segment Revenues**
 
 In
        the
        investigations/litigation support segment, we had revenues of $4,869,000
        for the
        three months ended March 31, 2007, as compared to revenues of 3,165,000 for
        the
        three months ended March 31, 2006, for an increase of $1,704,000 or
        approximately 54%. All of the investigations/litigation support revenues
        reported in the three months ended March 31, 2007 were domestic. The increase
        in
        investigations/litigation support segment revenues for the three months ended
        March 31, 2007 was primarily attributable to the expansion of our client
        base
        through the acquisitions of Hyperion Risk and Facticon for which all revenues
        are included in this segment.
  **JLWA
        - Crisis Management and Corporate Governance Segment
        Revenues**
 
 In
        the
        crisis management segment, we had revenues of $10,315,000 for the three months
        ended March 31, 2007, as compared to revenues of $2,919,000 for the three
        months
        March 31, 2006, for an increase of $7,396,000 or approximately 253%. All of
        the crisis management revenue during the three months ended March 31, 2007
        are
        attributable to revenues from the JLWA operations, which were acquired on
        March
        10, 2006.
 
 **Safir
        - Security Segment Revenues**
  In
        the
        security segment, we had revenues of $6,204,000 for the three months ended
        March
        31, 2007, as compared to revenues of $151,000 for the three months ended
        March
        31, 2006, for an increase of $6,053,000 or approximately 4,008%. Of the security
        segment revenues reported in the three months ended March 31, 2007, all were
        domestic. The increase in security revenues is attributable to the acquisitions
        of Safir and Secure Source, which were acquired in April 2006. The increase
        in
        crisis management revenues for the three months ended March 31, 2007 is
        primarily attributable to the recognition of revenue for the full quarter
        in
        2007 from JLWA.
 
 **Revenues**
  We
        had
        overall revenues of approximately $21,388,000 for the three months ended
        March
        31, 2007, as compared to revenues of approximately $6,235,000 for the three
        months ended March 31, 2006, for an increase of $15,153,000 or approximately
        243%. Substantially, all of the revenues reported in the three months ended
        March 31, 2007, were from domestic clients. The increase in revenue for the
        three months ended March 31, 2007 was primarily attributable to the 2007
        acquisitions of On Line Consulting, Bode and Facticon and the 2006 acquisitions
        of JLWA, Safir, Secure Source and Hyperion Risk for the full three month
        period
        in the first quarter of 2007.
 
 35
 **Cost
        of Revenues and Gross Profit**
  Our
        consolidated cost of revenues increased $8,185,000 or approximately 245%
        from
        $3,344,000 in the three months ended March 31, 2006 to $11,530,000 in the
        three
        months ended March 31, 2007. This increase is attributable to the additional
        volume from the CBR, JLWA, Safir, Secure Source, Hyperion Risk, On Line
        Consulting, Bode and Facticon acquisitions.
 
 **Operating
        Expenses**
  We
        experienced a 193% increase in selling and marketing expenses for the three
        months ended March 31, 2007, when compared to the same period in 2006. Selling
        and marketing expenses for the three months ended March 31, 2007 were
        $2,385,000, compared to $815,000 for the three months ended March 31, 2006,
        for
        an increase of $1,570,000. This increase is primarily attributable to the
        earnout obligation accrued during the months ended March 31, 2007 of
        approximately $1,220,000 related to the JLWA acquisition, as well as to the
        selling and marketing expenses for the companies acquired in 2006 of JLWA,
        Safir, Secure Source and Hyperion Risk.
  We
        experienced a 229% increase in general and administrative expenses for the
        three
        months ended March 31, 2007, when compared to the same period in 2006. General
        and administrative expenses for the three months ended March 31, 2007 were
        $10,290,000 compared to $3,127,000 for the three months ended March 31, 2006.
        This increase is attributable to 2007 and 2006 acquisitions, legal, accounting,
        and other professional fees incurred in order to fulfill our responsibilities
        as
        a public company and costs incurred for due diligence related to fulfillment
        of
        our growth plan.
 
 **CBR** - **Investigations
        and Litigation Support Segment Results**
  Our
        investigations segment had an operating loss of $2,668,000 for the three
        months
        ended March 31, 2007, as compared to operating loss of $634,000 for the three
        months ended March 31, 2006, for an increase in our loss of $2,034,000 or
        approximately 321%. The investigations segment general and administrative
        expenses have increased by 321%, as compared to the three months ended March
        31,
        2006. This is attributable in part to the increased infrastructure associated
        with the Company’s acquisitions and in part to the increased corporate overhead
        costs of operating a public company.
 
 **JLWA
        - Crisis Management and Corporate Governance Segment
        Revenues Segment Results**
  Our
        crisis management segment had an operating profit of approximately $492,000
        for
        the three months ended March 31, 2007, as compared to an operating loss of
        $423,000 for the three months ended March 31, 2006, for an increased operating
        profit of $915,000 or approximately 216%. The significant increase in operating
        profit for the three months ended March 31, 2007 was primarily due to the
        full
        quarter operations of JLWA, and its Louisiana client engagement providing
        support for the disbursement of public assistance funds.
 
 **Safir
        - Security Segment Results**
  Our
        security segment had an operating loss of $640,000 for the three months ended
        March 31, 2007, as compared to an operating profit of $6,000 for the three
        months ended March 31, 2006. The increased loss is attributable primarily
        to the
        additional overhead costs incurred with the acquisitions of Safir and Secure
        Source.
 
 **Interest
        Income**
  Interest
        income for the three months ended March 31, 2007 and 2006 was $238,000 and
        $0,
        respectively, resulting from the interest earned on cash and cash
        equivalents.
 
 **Interest
        Expense**
  Interest
        expense decreased by $156,000 or 86% to $26,000 for the three months ended
        March
        31, 2007 from $182,000 for the three months ended March 31, 2006. The decrease
        in interest expense is attributable to having adequate cash and cash equivalents
        which alleviated borrowing against our line of credit.
 
 36
 **Income
        Taxes**
  Although
        we have federal, state and local net operating losses available for income
        tax
        purposes that may be carried forward to offset future taxable income, the
        deferred tax assets are subject to a 100% valuation allowance because it
        is more
        likely than not that the deferred tax assets will not be realized as of March
        31, 2007. Our ability to use our net operating loss (“NOL’s”) carryforwards are
        subject to an annual limitation in future periods pursuant to Section 382
        of the
        Internal Revenue Code.
 
 The
        Company accounts for income taxes using the liability method as required
        by SFAS
        No. 109, “Accounting for Income Taxes” (“SFAS 109”). Under this method, deferred
        tax assets and liabilities are determined based on differences between their
        financial reporting and tax basis of assets and liabilities. The Company
        establishes a valuation allowance for deferred tax assets. The Company was
        not
        required to provide for a provision for income taxes for the three months
        ended
        March 31, 2007 and 2006, respectively, as a result of losses incurred during
        the
        years.
 
 Deferred
        tax assets pertaining to windfall tax benefits on exercise of non-qualified
        stock options and the corresponding credit to additional paid-in capital
        are
        recorded if the related tax amount either reduces income taxes payable or
        results in an income tax refund. The Company has elected the “with and without
        approach” regarding ordering of windfall tax benefits to determine whether the
        windfall tax benefit did reduce income taxes payable or resulted in an income
        tax refund in the current year. Under this approach, the windfall tax benefits
        would be recognized in additional paid-in capital only if an incremental
        income
        tax benefit is realized after considering all other income tax benefits
        presently available to the Company.
 
 Effective
        January 1, 2007, the Company adopted the provisions of Financial Accounting
        Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in
        Income Taxes, an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48
        clarifies the accounting for uncertainty in income taxes recognized in the
        Company’s condensed consolidated financial statements in accordance with FASB
        Statement 109, “Accounting for Income Taxes”, and prescribes a recognition
        threshold and measurement process for financial statement recognition and
        measurement of a tax position taken or expected to be taken in a tax return.
        FIN
        48 also provides guidance on derecognition, classification, interest and
        penalties, accounting in interim periods, disclosure and
        transition.
 
 Management
        has evaluated and concluded that there are no significant uncertain tax
        positions requiring recognition in the Company’s condensed consolidated
        financial statements as of January 1, 2007. The evaluation was performed
        for the
        tax years ended December 31, 2006, 2005, 2004 and 2003 for which 2006 is
        not yet
        filed and 2005, 2004 and 2003 remain subject to examination for federal,
        state,
        and local income tax purposes by various taxing authorities as of March 31,
        2007.
 
 The
        Company’s policy is to classify assessments, if any, for tax related interest as
        interest expense and penalties as general and administrative
        expenses.
  **Other
        Income**
 
 Other
        income for the three months ended March 31, 2007 represents a $100,000 gain
        recognized upon the termination of a building lease.
 
 **Net
        Loss**
  Net
        losses for the three months ended March 31, 2007 and 2006 were $2,504,000
        and
        $1,233,000, respectively, an increase of $1,271,000 or 103%. For the three
        months ended March 31, 2007 and 2006, we realized an overall gross profit
        of
        46%. The gross profit amounts for the three months ended March 31, 2007 and
        2006
        were $9,858,000 and $2,891,000, respectively, an increase of $6,967,000 or
        241%.
        This increased gross profit is offset by an increase in operating expenses
        of
        $8,733,000 for the same period.
 
 Basic
        net
        loss per share is computed based on the weighted average number of shares
        of
        common stock outstanding during the periods presented. Common stock equivalents,
        consisting of options, warrants, Series A and Series B convertible
        preferred stock were not included in the calculation of the diluted net losses
        per share because their inclusion would have been anti-dilutive. Basic and
        diluted net losses per share available to common stockholders was $0.88 for
        the three months ended March 31, 2007 as compared to $0.67 in the corresponding
        2006 period.
  37
 **Liquidity
        and Capital Resources**
  We
        had
        cash balances on hand of approximately $3,629,000 as of March 31, 2007.
 
 Cash
        used
        in operating activities amounted to approximately $3,219,000 and $2,257,000
        during the three months ended March 31, 2007 and 2006, respectively. The
        use of
        funds in operations is primarily due to the net losses 2007 and 2006 reduced
        by
        charges for non cash items included in the operating losses and decrease
        in
        amounts due to former members of JLWA for earnout offset by the use of funds
        in
        financing accounts receivable. In 2007 and 2006, the net losses were
        approximately $2,504,000 and $1,233,000, respectively. The non cash charges
        included amounts for depreciation and amortization of approximately, $873,000
        and $261,000, charges for stock-based compensation of approximately $953,000
        and
        $350,000, respectively. In addition, we utilized cash in funding working
        capital
        primarily funding an increase in accounts receivable of $7,025,000 and
        $2,527,000 offset by decreases in amounts due to former members of JLWA for
        earnout of $1,220,000 and $496,000, respectively.
  Cash
        used
        in investing activities for the three months ended March 31, 2007 of
        approximately $14,532,000 consisted primarily of approximately $14,266,000
        related to our purchases of On Line Consulting, Bode and Facticon.
 
 On
        January 9, 2007, we acquired substantially all of the business and assets
        of On
        Line Consulting. The acquisition was made pursuant to the On Line Consulting
        Agreement. The aggregate purchase price paid for On Line Consulting’s business
        and assets was $2,658,000 and consisted of $1,308,000 in cash and $1,350,000
        in
        our common stock consisting of 84,375 shares at $16.00 per share and the
        assumption of certain liabilities. At closing, the Company paid $750,000
        of the
        cash portion of the purchase price, and issued promissory notes for $417,000
        due
        January 9, 2008, and $141,000 due on January 9, 2009. Further, at closing
        the
        Company delivered to the seller 46,875 shares of GlobalOptions common stock,
        with 37,500 shares to be held in escrow and delivered to the seller, 18,750
        shares on January 9, 2008 and 18,750 shares on January 9, 2009,
        respectively. The purchase price is subject to certain working capital purchase
        price adjustments.
 
 On
        February 28, 2007, we acquired the common stock of Bode. The acquisition
        was
        made pursuant to the Bode Agreement. The aggregate purchase price paid was
        $12.5
        million in cash and is subject to certain purchase price adjustments, as
        defined
        in the Bode Agreement. On March 8, 2007, Bode was reincorporated into
        Delaware.
 
 On
        February 28, 2007, we acquired substantially all of the business and assets
        of
        Facticon. Facticon is a surveillance, investigative and intelligence firm
        based
        in Chadds Ford, Pennsylvania. The acquisition was made pursuant to the Facticon
        Agreement. The aggregate purchase price paid was $2,800,000, which consisted
        of
        $1,400,000 in cash and $1,400,000 in the common stock GlobalOptions Group
        consisting of 87,500 shares at $16.00 per share and the assumption of certain
        liabilities.
 
 Financing
        activities used net funds of approximately $154,000 and provided funds of
        $12,473,000 during the three months ended March 31, 2007 and 2006, respectively.
        The net cash used during this period in 2007 was primarily due to the repayment
        of acquisition related notes payable of $488,000, offset by the collection
        of
        accounts receivable due to seller of $286,000. The cash provided during this
        period in 2006 was primarily due to the proceeds from convertible notes payable
        $12,500,000.
  On
          May
          11, 2007, the Company reached an agreement with the sellers of JLWA (“JLWA
          Sellers”) to enter into a second amendment to the January 13, 2006 asset
          purchase agreement, which was amended February 28, 2006 (“Seller Modification
          Agreement”).  Under the modification, the Company has agreed to make
          additional payments in the form of cash and common stock and to eliminate
          entirely the obligations under the earnout provisions of the agreement
          (which
          provided for a maximum additional payout of $15,400,000).
 
 The
          additional payments under the agreement consist of (i) a cash payment of
          $2,000,000  paid on May 14, 2007, (ii) a cash payment of principal of
          $4,500,000 plus interest at 5.65% per annum  under a promissory note which
          will be due on January 15, 2008,  subject to a 5% penalty fee if not paid
          on such due date, (iii) the issuance of 300,000 shares of common stock
          on
          January 15, 2008, which have been previously registered at the time of
          issuance
          and (iv) a cash payment of principal of $4,300,000 plus interest at 11.0%
          per
          annum under a promissory note which will be due on August 11, 2008,
  The JLWA Sellers may demand acceleration of this $4,300,000 cash
          payment upon the Company completing a qualifying capital raise, pursuant
          to the
          promissory note agreement.
 
 Further,
          in connection with the execution of the Seller Modification Agreement,
          the
          Company executed an amendment of the employment and non-competition agreement
          with Mr. Witt.  Under the terms of the modification, upon termination of
          employment without good reason, Mr. Witt would be obligated to reimburse
          the
          Company in an amount equal to (i) twenty five percent (25%) of the number
          of
          shares issued to JLWA Sellers within twelve months prior to such termination
          and
          (ii)  twenty five percent (25%) of the base salary of Mr. Witt paid within
          the twelve months prior to such termination.
 
 On
          May
          14, 2007, the financial institution that provides the line of credit has
          increased to $15,000,000 the amount available under the line of credit.
          Pursuant
          to the agreement, the Company (including Bode) granted the financial institution
          a security interest in, and pledged and assigned to the Bank, substantially
          all
          of the Company’s current and future acquired personal property. Furthermore,
          GlobalOptions Group reaffirmed its unconditional guaranty originally made
          on
          March 8, 2006. Pursuant to the reaffirmation, the Company acknowledged
          that its
          guaranty of the loan provided to the Company and the corresponding grant
          of a
          security interest in all of its property apply to the subject financial
          institution’s loan agreements and any other agreements, assignments or
          instruments relating to such indebtedness. In connection with the modification,
          Bode entered into an Intellectual Property Security Agreement with the
          Bank (the
          "IP Security Agreement") pursuant to which Bode granted the financial
          institution a security interest in all of its rights, titles and interests
          in,
          to and under its intellectual property.
  We
        historically have met our operating cash needs by using borrowings under
        our
        line of credit arrangement and through our private placement of equity and
        debt
        securities. At March 31, 2007, we had working capital of approximately
        $19,100,000. We currently believe that cash on hand, cash flows from operations
        and our available borrowings under our line of credit facility, even after
        having expended cash of $14,266,000 to make the above described acquisitions
        of
        On Line Consulting, Bode and Facticon, will be sufficient to finance our
        operations through March 31, 2008.
 
 **Off-Balance
        Sheet Arrangements**
  We
        have
        not entered into any transactions with unconsolidated entities in which we
        have
        financial guarantees, subordinated retained interests, derivative instruments
        or
        other contingent arrangements that expose us to material continuing risks,
        contingent liabilities or any other obligations under a variable interest
        in an
        unconsolidated entity that provides us with financing, liquidity, market
        risk or
        credit risk support.
  38
 ***Recent
        Accounting Pronouncements***
 
 In
        February 2006, the Financial Accounting Standards Board (“FASB”) issued
        SFAS No. 155 - Accounting for Certain Hybrid Financial Instruments (“SFAS 155”),
        which eliminates the exemption from applying SFAS 133 to interests in
        securitized financial assets so that similar instruments are accounted for
        similarly regardless of the form of the instruments. SFAS 155 also allows
        the
        election of fair value measurement at acquisition, at issuance, or when a
        previously recognized financial instrument is subject to a remeasurement
        event.
        Adoption is effective for all financial instruments acquired or issued after
        the
        beginning of the first fiscal year that begins after September 15, 2006.
        Early adoption is permitted. The adoption of SFAS 155 did not have a material
        effect on the Company’s condensed consolidated financial position, results of
        operations or cash flows.
 
 In
        March 2006, the FASB issued SFAS No. 156 - Accounting for Servicing of
        Financial Assets (“SFAS 156”), which requires all separately recognized
        servicing assets and servicing liabilities be initially measured at fair
        value.
        SFAS 156 permits, but does not require, the subsequent measurement of servicing
        assets and servicing liabilities at fair value. Adoption is required as of
        the
        beginning of the first fiscal year that begins after September 15, 2006.
        Early adoption is permitted. The adoption of SFAS 156 did not have a material
        effect on the Company’s condensed consolidated financial position, results of
        operations or cash flows.
 
 In
        July
        2006,  the FASB  issued  FASB  Interpretation  No.
        48,  "Accounting  for Uncertainty in Income Taxes - an 
interpretation  of FASB Statement No. 109" ("FIN 48"),  which 
clarifies the accounting  for  uncertainty  in tax
        positions.  This Interpretation  requires  that the Company
        recognize in its consolidated financial  statements,  the impact
        of a tax  position,  if that  position  is more  likely
        than not of being sustained  on  audit,  based  on 
the  technical  merits  of the  position.  The
        provisions of FIN 48 are effective as of the beginning of the
        Company's 2007 fiscal year, with the cumulative effect of the change in
        accounting principle recorded as an adjustment to opening retained
        earnings. The adoption of FIN 48 did not have a material effect on the Company’s
        condensed consolidated financial position, results of operations or cash
        flows.
 
 In
        December 2006, the FASB issued FASB Staff Position (“FSP”) EITF 00-19-2
“Accounting for Registration Payment Arrangements” (“FSP EITF 00-19-2”) which
        specifies that the contingent obligation to make future payments or otherwise
        transfer consideration under a registration payment arrangement should be
        separately recognized and measured in accordance with SFAS No. 5,
“Accounting for Contingencies.”    Adoption of FSP EITF 00-19-02
        is required for fiscal years beginning after December 15, 2006. Adoption of
        FSP EITF 00-19-2 did not have a material impact on the Company's condensed
        consolidated financial position, results of operations or cash
        flows.
 
 **Item
        3.     Controls and Procedures**
 
 *Evaluation
        of our Disclosure Controls and Internal Controls*
  As
        of the
        period covered by this quarterly report, we carried out an evaluation of
        the
        effectiveness of the design and operation of our disclosure controls and
        procedures (as defined in Exchange Act Rule 13-d 15(e) and 15d-15(e)). Based
        upon that evaluation, our Chief Executive Officer (“CEO”) and Chief Financial
        Officer (“CFO”) concluded that as of the end of the period covered by this
        quarterly report on Form 10-QSB our disclosure controls and procedures were
        not
        effective.
  *Officers’
        Certifications*
  Appearing
        as exhibits to this quarterly report are “Certifications” of the CEO and the
        CFO. The Certifications are required pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This section of
        the quarterly report contains information concerning the Controls Evaluation
        referred to in the Section 302 Certifications and this information should
        be
        read in conjunction with the Section 302 Certifications for a more complete
        understanding of the topics presented.
 
 *Disclosure
        Controls and Internal Controls*
  Disclosure
        controls are procedures that are designed with the objective of ensuring
        that
        information required to be disclosed in our reports filed under the Securities
        Exchange Act of 1934, as amended (the “Exchange Act”), such as this quarterly
        report, is recorded, processed, summarized and reported within the time periods
        specified in the SEC’s rules and forms. Disclosure controls are also designed
        with the objective of ensuring that such information is accumulated and
        communicated to our management, including the CEO and CFO, as appropriate
        to
        allow timely decisions regarding required disclosure. Internal controls are
        procedures which are designed with the objective of providing reasonable
        assurance that (1) our transactions are properly authorized, recorded and
        reported; and (2) our assets are safeguarded against unauthorized or improper
        use, to permit the preparation of our consolidated financial statements in
        conformity with United States generally accepted accounting
        principles.
  39
 We
        are not an accelerated filer (as defined in the Exchange Act) and are not
        required to deliver management’s report on internal controls over our financial
        reporting until our year ending December 31, 2007. We became a public company
        on
        June 24, 2005. In our efforts to comply with Section 404 of the Sarbanes-Oxley
        Act of 2002, during the first half of 2005, we initially identified certain
        matters that would constitute material weakness (as such term is defined
        under
        the Public Company Accounting Oversight Board Auditing Standard No. 2) in
        our
        internal controls over financial reporting that continue to apply as of the
        quarterly period covered by this report. The material weakness relates to
        the
        financial closing process, a lack of segregation of financial responsibilities
        and the need for additional qualified financial accounting
        personnel.
  *Remediation
        of Material Weaknesses and Significant Deficiencies*
 
 During
        the three months ended March 31, 2007, we have taken specific actions to
        remediate the reportable conditions and material weakness, including the
        devotion of additional resources to the quarterly and year-end closing
        processes, the hiring of additional qualified financial accounting personnel,
        the investment in integrated general software applications, and realignment
        of
        certain financial responsibilities to achieve stronger segregation of financial
        duties. We intend to expand our accounting staff and continue to further
        strengthen our controls and procedures regarding the closing process. There
        is
        no assurance that this effort will be adequate.
 
 *Changes
        in Internal Control Over Financial Reporting*
 
 Other
        than expressly noted above in this Item 3, there were no significant changes
        in
        our internal controls over financial reporting that occurred during the
        quarterly period ended March 31, 2007 that have materially affected, or are
        reasonably likely to materially affect, our internal controls over financial
        reporting.
 
 40
 **PART
        II.**
 
 **Other
        Information**
  **Item
        1.     Legal Proceedings.**
  None.
  **Item
        2.     Unregistered Sales of Equity Securities and Use of
        Proceeds.**
 
 During
        the three months ended March 31, 2007, the Company issued 3,125 shares of
        common
        stock in connection with the conversion of 50 shares of Series A Convertible
        Preferred Stock.
  **Item
        3.     Defaults Upon Senior
        Securities.**
  None.
  **Item
        4.     Submission of Matters to a Vote of Security
        Holders.**
 
 None.
 
 **Item
        5.     Other Information.**
  None.
  
 41
  **Item
        6.**  **Exhibits.**
  The
        exhibits listed in the following Exhibit Index are filed as part of this
        Report.
  **Exhibit
                  No.**
              
              **Description**31.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 302 of The Sarbanes-Oxley
                  Act of 2002.31.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 302 of The Sarbanes-Oxley
                  Act of 2002.32.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley
                  Act of 2002.32.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley
                  Act of 2002.
 
  42
 EXHIBIT
        INDEX
 
 **Exhibit
                  No.**
              
              **Description**31.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 302 of The Sarbanes-Oxley
                  Act of 2002.31.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 302 of The Sarbanes-Oxley
                  Act of 2002.32.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley
                  Act of 2002.32.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley
                  Act of 2002.
 
 
 
 43
 
 **SIGNATURES**
  Pursuant
        to the requirements of the Exchange Act, the registrant has caused this report
        to be signed on its behalf by the undersigned, thereunto duly
        authorized.
 
 
 GLOBALOPTIONS
                  GROUP, INC.Dated:
                  May 16, 2007
              By:
              /s/ Harvey
                  W. SchillerHarvey
                  W. Schiller
                Chairman
                  of the Board and Chief Executive Officer
                (Principal
                  Executive Officer)
 
 Dated:
                  May 16, 2007
              By:
              /s/ Jeffrey
                  O. NyweideJeffrey
                  O. Nyweide
                Chief
                  Financial Officer, Executive Vice
                President,
                  Corporate Development
                  and
                    Secretary (Principal Financial Officer and
                  Principal
                    Accounting Officer)
 
 
  
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