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**WASHINGTON,      DC 20549**

**FORM      10-KSB/A**

**(Amendment      No. 1)**

**ARKADOS      GROUP, INC.**

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| **Delaware**                   (State                  or other jurisdiction of | **22-3586087**                   (I.R.S.                  Employer Identification No.)   |
|-------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|  incorporation                  or organization)                                     |                                                                                                    |

| **220                    Old New Brunswick Road, Piscataway, New Jersey**(Address                    of principal executive offices)  | **08854**                     (Zip                    Code)   |
|--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|

| Title                of each class           | Name                of each exchange on which registered  |
|---------------------------------------------------|----------------------------------------------------------------|
| ___________________________________________  | ___________________________________________               |
| ___________________________________________  | ___________________________________________               |

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| ITEM                  9. | DIRECTORS,                  EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS AND CORPORATE                  GOVERNANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE                  ACT |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Name**                              | **Age** | **Position**                                                                         |
|---------------------------------------|---------|--------------------------------------------------------------------------------------|
|                                  |    |                                                                                 |
| Andreas                    Typaldos   | 62      | Chairman                                                                             |
| William                    Carson*    | 60      | Director                                                                             |
| Gennaro                    Vendome*   | 60      | Director                                                                             |
| Oleg                    Logvinov      | 44      | Director,                    President and Chief Executive Officer                   |
| Barbara                    Kane-Burke | 53      | Chief                    Financial Officer, Secretary and Treasurer                  |
| Grant                    Ogata        | 52      | Executive                    Vice President, Worldwide                    Operations |

**Board        of Directors**

**Andreas        Typaldos**

**Gennaro        Vendome**

**William        Carson**

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**Oleg        Logvinov**

**Barbara        Kane-Burke**

**Grant        Ogata**

**Board        Meetings**

**Board        Committees**

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**Board        Nominations and Appointments**

**Communicating        with the Board of Directors**

**Compensation        of Directors**

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**Code        of Ethics**

**Section        16(a) Beneficial Ownership Reporting Compliance**

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**SUMMARY        COMPENSATION TABLE**

| **Name/**                                     |     |   |            |    |   | **Deferred** |   |    |            |   |   |                             |   |   |             |    |
|-----------------------------------------------|----------|--------|------------|---------|--------|--------------|--------|---------|-----------------|--------|--------|----------------------------------|--------|--------|------------------|---------|
| **Principal**                                 |     |   |       |    |   | **Salary**   |   |    | **Option**      |   |   | **All                    Other** |   |   | **Total**        |    |
| **Position**                                  | **Year** |   | **Salary** |    |   | **Paid**     |   |    | ** Award** |   |   | **Compensation**                 |   |   | **Compensation** |    |
|                                          |     |   |       |    |   |         |   |    |            |   |   |                             |   |   |             |    |
| Oleg                    Logvinov              | 2007     |   | $          | 225,000 |   |         | $      | 91,875  | (1)             |   | $      | 475,054                          |   |   | $                | — |   |   | $ | 791,929 |   |
| President,                    Chief Executive | 2006     |   | $          | 199,922 |   |         | $      | — |            |   | $      | —                          |   |   | $                | — |   |   | $ | 199.922 |   |
| Officer                  and Director    | 2005     |   | $          | 162,797 |   |         | $      | — |            |   | $      | 247,975                          |   |   | $                | — |   |   | $ | 410,772 |   |
|                                          |     |   |       |    |   |         |   |    |            |   |   |                             |   |   |             |    |   |   |   |   |   |
| Barbara                    Kane-Burke(2)      | 2007     |   | $          | 51,444  |   |         | $      | — |            |   | $      | 101,145                          |   |   | $                | — |   |   | $ | 152,590 |   |
| Chief                    Financial Officer    | 2006     |   | $          | — |   |         | $      | — |            |   | $      | —                          |   |   | $                | — |   |   | $ | — |   |
|                                          | 2005     |   | $          | — |   |         | $      | — |            |   | $      | —                          |   |   | $                | — |   |   | $ | — |   |
|                                          |     |   |       |    |   |         |   |    |            |   |   |                             |   |   |             |    |   |   |   |   |   |
| Grant                    Ogata(3)             | 2007     |   | $          | 93,333  |   |         | $      | — |            |   | $      | 567,293                          |   |   | $                | — |   |   | $ | 660,626 |   |
| Executive                    Vice President,  | 2006     |   | $          | — |   |         | $      | — |            |   | $      | —                          |   |   | $                | — |   |   | $ | — |   |
| Worldwide                    Operations       | 2005     |   | $          | — |   |         | $      | — |            |   | $      | —                          |   |   | $                | — |   |   | $ | — |   |

| (1.)   | Consist                  of $91,875 of deferred salary payments. This payment was a consequence                  of                  our raising an aggregate of $3 million of financing since June                  2004,                  pursuant to our May 2004 employment agreement with our Chief Executive                  Officer, $91,875 of deferred salary payments for the period from                  May 2004                  to January 2006 representing 24.5% of his agreed salary for such                  period. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2.)   | Mrs.                  Kane-Burke joined us in January                  2007. |
|------------------|------------------------------------------------------------------------------|

| (3.)   | Mr.                  Ogata joined us as an employee in April 2007 and worked for us as a                  consultant from September 2006 through March                  2007. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**GRANTS            OF PLAN-BASED AWARDS IN FISCAL 2007**

| **Name**                            | **Grant**** Date** |   |   | **All                  other Option Awards: Number of Securities  Underlying                   Options (#)** |   |   |   |   | **Exercise                  or Base Price of  Option Awards ($/Sh)** |   |   |   |   | **Grant                  Date Fair**** Value                  of Stock**** and                  Option**** Awards                  ($)** |   |   |
|-------------------------------------|-------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                |                    |   |   |                                                                                                                        |   |   |   |   |                                                                      |   |   |   |   |                                                                                                                                                    |   |   |
| Oleg                  Logvinov      | 6/21/2006               |   |   | 350,000                                                                                                                     |   | (1)    |   | $      | 0.75                                                                      |   |   |   | $      | 137,900                                                                                                                                                 |   |   |
|                                | 3/26/2007               |   |   | 1,000,000                                                                                                                   |   | (2)    |   | $      | 0.33                                                                      |   |   |   |   | 337,154                                                                                                                                                 |   |   |
| Barbara                  Kane-Burke | 1/15/2007               |   |   | 100,000                                                                                                                     |   | (3)    |   | $      | 0.41                                                                      |   |   |   | $      | 33,715                                                                                                                                                  |   |   |
|                                | 4/18/2007               |   |   | 200,000                                                                                                                     |   | (4)    |   | $      | 0.40                                                                      |   |   |   | $      | 67,340                                                                                                                                                  |   |   |
| Grant                  Ogata        | 9/08/2006               |   |   | 300,000                                                                                                                     |   | (5)    |   | $      | 0.52                                                                      |   |   |   | $      | 297,570                                                                                                                                                 |   |   |
|                                | 3/26/2007               |   |   | 800,000                                                                                                                     |   | (6)    |   | $      | 0.38                                                                      |   |   |   | $      | 269,722                                                                                                                                                 |   |   |

| (1) | 116,666                  of the options granted to Mr. Logvinov vested on June 2, 2007;                  the                  remaining 233,334 are scheduled to vest in two equal annual increments                  beginning on June 2, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Options                  to Mr. Logvinov are scheduled to vest in three equal annual amounts                  beginning on March 26, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Options                  to Mrs. Kane-Burke are scheduled to vest in three equal annual                  amounts                  beginning on January 15, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Options                  to Mrs. Kane-Burke are scheduled to vest in three equal annual                  amounts                  beginning on April 18, 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Options                  to Mr. Ogata were granted when he was a consultant.  150,000 of                  these options vested on April 2, 2007; the remaining 150,000 are                  scheduled                  to vest in three equal annual amounts beginning on September 8,                  2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Options                  to Mr. Ogata are scheduled to vest in three equal annual amounts                  beginning                  on March 26, 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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**OPTION            EXERCISES AND STOCK VESTED IN 2007**

|                                |   | **Option                  Awards**                                                                                                |    |   | **Stock                  Awards**                                                   |   |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|
| **Name**                            |   |  **Number                  of**** Shares**** Acquired                  on**** Exercise                  (#)** |    |   |  **Value                  Realized**** on                  Exercise ($)** |   |   |  **Number                  of**** Shares                  Acquired**** on                  Vesting (#)** |   |   |  **Value**** Realized                  on**** Vesting($)** |   |
|                                |   |                                                                                                                              |    |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Oleg                  Logvinov      |   |                                                                                                                              | — |   |                                                                                | $      | — |   |   |   | — |   |   | $ | — |   |
| Barbara                  Kane-Burke |   |                                                                                                                              | — |   |                                                                                | $      | — |   |   |   | — |   |   | $ | — |   |
| Grant                  Ogata        |   |                                                                                                                              | — |   |                                                                                | $      | — |   |   |   | — |   |   | $ | — |   |

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**OUTSTANDING        EQUITY AWARDS AT 2007 FISCAL YEAR-END**

**Option        Awards**

|                                |   | **Number of****securities****underlying****unexercised****options                  (#)****Exercisable** |    |   | **Number                  of****securities****Underlying****unexercised****options                  (#) Unexercisable** |   |      |      | **Equity                  Incentive Plan awards:****Number                  of****securities****Underlying                  unexercised****Unearned****Options                  (#)** |   |      | **Option****Exercise****Price                  ($)** |   | **Option****Expiration****Date** |
|-------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------------------------------------------------|--------|----------------------------------|
|                                |   |                                                                                                         |    |   |                                                                                                                    |   |      |      |                                                                                                                                                                                       |   |      |                                                 |   |                             |   |   |   |
| Oleg Logvinov                  |   |                                                                                                         | — |   |                                                                                                                    |   | 1,000,000 | (1)       |                                                                                                                                                                                       |   | 1,000,000 |                                                 |   | $                                | 0.33 |   | 3/25/2014 |
|                                |   |                                                                                                         | — |   |                                                                                                                    |   | 350,000   | (2)  |                                                                                                                                                                                       |   | 350,000   |                                                 |   | $                                | 0.75 |   | 6/2/2013 |
|                                |   |                                                                                                         | 250,000 |   |                                                                                                                    |   | —   |      |                                                                                                                                                                                       |   | 250,000   |                                                 |   | $                                | 1.20 |   | 8/11/2011 |
|                                |   |                                                                                                         | 460,000 |   |                                                                                                                    |   | —   |      |                                                                                                                                                                                       |   | 460,000   |                                                 |   | $                                | 1.20 |   | 5/23/2007 |
|                                |   |                                                                                                         | 920,000 |   |                                                                                                                    |   | —   |      |                                                                                                                                                                                       |   | 920,000   |                                                 |   | $                                | 0.01 |   | 5/23/2008 |
| Barbara                  Kane-Burke |   |                                                                                                         | — |   |                                                                                                                    |   | 200,000   | (3)       |                                                                                                                                                                                       |   | 225,000   |                                                 |   | $                                | 0.41 |   | 4/18/2010 |
|                                |   |                                                                                                         | — |   |                                                                                                                    |   | 100,000   | (4)       |                                                                                                                                                                                       |   | 100,000   |                                                 |   | $                                | 0.40 |   | 1/14/2010 |
| Grant                  Ogata        |   |                                                                                                         | — |   |                                                                                                                    |   | 800,000   | (5)       |                                                                                                                                                                                       |   | 800,000   |                                                 |   | $                                | 0.38 |   | 3/26/2010 |
|                                |   |                                                                                                         | 150,000 |   |                                                                                                                    |   | 150,000   | (6)       |                                                                                                                                                                                       |   | 300,000   |                                                 |   | $                                | 0.52 |   | 9/7/2009 |

| (1) | Options                  to Mr. Logvinov are scheduled to vest in three equal annual amounts                  beginning on March 26, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 116,666                  of the options granted to Mr. Logvinov vested on June 2, 2007;                  the                  remaining 233,334 are scheduled to vest in two equal annual increments                  beginning on June 2, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Options                  to Mrs. Kane-Burke are scheduled to vest in three equal annual                  amounts                  beginning on April 18, 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Options                  to Mrs. Kane-Burke are scheduled to vest in three equal annual                  amounts                  beginning on January 15, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Options                  to Mr. Ogata are scheduled to vest in three equal annual amounts                  beginning                  on March 26, 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | 150,000                  of the options granted to Mr. Ogata vested on April 2, 2007; the                  remaining                  150,000 are scheduled to vest in three equal annual increments beginning                  on September 2, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Stock          Option Plans**

***200***
***4***
***Plan.***

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**Employment          Contracts and Consulting Agreements**

*Oleg        Logvinov *

*Barbara        Kane-Burke*

*Grant        Ogata*

*Andreas        Typaldos – *

| ITEM                  11. | SECURITY                  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED                  STOCKHOLDER MATTERS |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------------|

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|  Name                  and Address of Beneficial Owner                                                         | Amount                  and Natureof                  Beneficial Ownership | Percentof                  Class (1) |
|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                |                                                                       |                                 |
| Andreas                  Typaldos44                  West 77th                  StreetNew                  York, NY | 10,759,103(2)                                                              | 41%                                  |

| (1) | Based                  upon 26,082,221 shares of Common Stock outstanding as of November                  26, 2007                  and with respect to each stockholder, the number of shares which                  would be                  outstanding upon the exercise by such stockholder of outstanding                  rights to                  acquire stock, either upon exercise of outstanding options, warrants                  or                  conversion of other securities exercisable within 60                  days. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                  (i) 1,327,270 shares owned by Renee Typaldos, Mr. Typaldos’ wife, of which                  577,270 may be acquired upon the conversion of notes and exercise                  of                  warrants held by a limited liability company in which Mrs. Tyapldos                  has a                  1⁄2 interest; (ii) 5,390,167 shares owned by the Andreas Typaldos Family                  Limited Partnership, of which Mrs. Typaldos is the sole general                  partner;                  (iii) 2,000,000 shares owned by Patras Holdings LLC, a limited                  liability                  company of which Mr. Typaldos is the managing member; and (iv)                  750,000                  shares held by Mr. Typaldos’ minor child.  Does not include                  5,754,956 shares which may be obtained upon the conversion of outstanding                  notes and the exercise of outstanding warrants held by Mr. Typaldos                  and                  the Andreas Typaldos Family Limited Partnership which are subject                  to a                  contractual limiting conversion or exercise which can be waived                  on 60 days                  notice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                  of Beneficial Owner orNumber                  of Persons in Group | Amount                  and Nature ofBeneficial                  Ownership | Percent                  ofClass                  (1) |
|-----------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-------------------------------------------------------|
|                                                                                    |                                                                       |                                                  |
| Andreas                  Typaldos                                                       | 10,759,103(2)                                                              | 41%                                                   |
|                                                                                    |                                                                       |                                                  |
| Oleg                  Logvinov                                                          | 1,643,333(3)                                                               | 6%                                                    |
|                                                                                    |                                                                       |                                                  |
| William                  H. Carson                                                      | 389,845(4)                                                                 | 2%                                                    |
|                                                                                    |                                                                       |                                                  |
| Gennaro                  Vendome                                                        | 1,151,357(5)                                                               | 4%                                                    |
|                                                                                    |                                                                       |                                                  |
| Grant                  Ogata                                                            | 200,000(6)                                                                 | >1%                                                |
|                                                                                    |                                                                       |                                                  |
| Barbara                  Kane-Burke                                                     | 6,100                                                                      | >1%                                                |
|                                                                                    |                                                                       |                                                  |
|                                                                                    |                                                                       |                                                  |
|                                                                                    |                                                                       |                                                  |
| All                  executive officers and directors as a group (6 persons)            | 14,095,544(7)                                                              | 49%                                                   |

| (1) | Based                  upon 26,082,221 shares of Common Stock outstanding as of November                  26, 2007                  and with respect to each stockholder, the number of shares which                  would be                  outstanding upon the exercise by such stockholder of outstanding                  rights to                  acquire stock, either upon exercise of outstanding options, warrants                  or                  conversion of other securities exercisable within 60                  days. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                  (i) 1,327,270 shares owned by Renee Typaldos, Mr. Typaldos’ wife, of which                  577,270 may be acquired upon the conversion of notes and exercise                  of                  warrants held by a limited liability company in which Mrs. Tyapldos                  has a                  1⁄2 interest; (ii) 5,390,167 shares owned by the Andreas Typaldos Family                  Limited Partnership, of which Mrs. Typaldos is the sole general                  partner;                  (iii) 2,000,000 shares owned by Patras Holdings LLC, a limited                  liability                  company of which Mr. Typaldos is the managing member; and (iv)                  750,000                  shares held by Mr. Typaldos’ minor child.  Does not include                  5,754,956 shares which may be obtained upon the conversion of outstanding                  notes and the exercise of outstanding warrants held by Mr. Typaldos                  and                  the Andreas Typaldos Family Limited Partnership which are subject                  to a                  contractual limiting conversion or exercise which can be waived                  on 60 days                  notice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                  1,393,333 shares which may be acquired within 60 days of November                  26, 2007                  upon the exercise of outstanding                  options. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes                  160,000 shares held jointly with his wife, 10,000 shares owned                  by his son                  and 80,000 shares which may be acquired within 60 days of November                  26,                  2007 upon the exercise of outstanding                  options. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes                  120,000 shares which may be acquired upon the exercise of outstanding                  options and 550,173 which may be acquired upon the conversion of                  notes and                  exercise of warrants held by a limited liability company in which                  Mr.                  Vendome has a 1⁄2 interest. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Consists                  entirely of 200,000 shares issuable upon exercise of currently                  exercisable                  warrants and/or options. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes                  a total of 3,150,345 shares which may be obtained by the named                  executive                  officers and directors or person whose ownership is attributed                  to them                  upon the exercise of outstanding options, warrants and conversion                  of                  outstanding convertible securities.  See Notes (2) through                  (6) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM                  12. | CERTAIN                  RELATIONSHIPS AND RELATED                  TRANSACTIONS |
|---------------------------|----------------------------------------------------------------------------------|

| Name                  & Relationship                                                                                                                                                | Date                  Issued                 | Principal                  Amount                       | Interest                  Added to Principal                                                                                                   | Long                  Term Warrants1 | Short                  Term Warrants |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|---------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------------------------------------|
| Cargo                  Holdings LLC, a limited liability company, owned equally by the                  wife of                  Andreas Typaldos and Genarro Verdone, another director | 3/31/2006                                    | $500,000.00                                             | $38,260.83                                                                                                                                     | 276,816                              | 235,294                              |
|                                                                                                                                                                                    |                                         |                                                    |                                                                                                                                           |                                 |                                 |
| Andreas                  Typaldos, our chairman                                                                                                                                         | 6/30/20065/30/2007                           | $360,000.002$70,000.00                                  | $21,985.80$                      711.67                                                                                    | 199,30838,754                        | 169,412                         |
|                                                                                                                                                                                    |                                         |                                                    |                                                                                                                                           |                                 |                                 |
| Andreas                  Typaldos Family Limited Partnership, a limited partnership in which                  our                  chairman’s wife is sole general partner        | 6/30/20061/8/20072/28/20075/30/20075/31/2007 | $413,470.00$288,000.00$127,000.00$380,000.00$484,106.00 | $25,251.36$                   7,612.34$                   3,356.83$                   3,293.33$                   2,504.21 | 170,088159,44770,312210,381268,018   | 144,575135,53059,765178,824227,815   |

| 1   | As                  adjusted July, 2007 as a result of anti-dilution provision in the                  warrants. |
|---------------|------------------------------------------------------------------------------------------------------------------|

| 2 | Issued                  in satisfaction of unpaid consulting                  fees. |
|---|-------------------------------------------------------------------------------------|

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| Lender                  Date        |   | Amount |    |
|-------------------------------------|--------|--------|---------|
| July                  10, 2007      |   | $      | 215,000 |   |
| August                  3, 2007     |   |   | 150,000 |   |
| August                  22, 2007    |   |   | 50,000  |   |
| August                  27, 2007    |   |   | 20,000  |   |
| August                  31, 2007    |   |   | 50,000  |   |
| September                  28, 2007 |   |   | 100,000 |   |
| October                  16, 2007   |   |   | 60,000  |   |
| October                  30, 2007   |   |   | 90,000  |   |
| November                  7, 2007   |   |   | 70,000  |   |
| November                  19, 2007  |   |   | 50,000  |   |
| Total                               |   | $      | 855,000 |   |

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| ITEM                  13. | EXHIBITS |
|---------------------------|----------|

|                                |                                                                                                                                                            | **Incorporated                  by Reference** |                             |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|----------------------------------|
| **Exhibit                  Number** | **Exhibit                  Description**                                                                                                                        | **Form**                                       | **File                  Number** | **Exhibit** | **Filing****Date** | **Filed                  Herewith** |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.1                                 | Articles                  of Incorporation of the Registrant.                                                                                                   | 10-SB                                          | 0-27587                          | 3.1 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.2                                 | Amendment                  to the Articles of Incorporation.                                                                                                    | 10-SB                                          | 0-27587                          | 3.2 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.3                                 | By-Laws                  of the Registrant.                                                                                                                     | 10-SB                                          | 0-27587                          | 3.3 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.4                                 | Certificate                  of Merger of the Registrant.                                                                                                       | 10-SB                                          | 0-27587                          | 3.4 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.5                                 | Amendment                  to the Articles of Incorporation.                                                                                                    | 10-SB                                          | 0-27587                          | 3.5 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.6                                 | Amended                  and Restated Series A Designation                                                                                                      | 10-QSB                                         | 0-27587                          | 3.1 | 2/14/03 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.7                                 | Amendment                  to Certificate of Incorporation (Reverse Split ) filed November                  31,                  2003.                          | 10-QSB                                         | 0-27587                          | 3.1 | 2/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 3.8                                 | Certificate                  of Amendment to Certificate of Incorporation                                                                                       | 10-QSB                                         | 0-27587                          | 3.2 | 2/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 4.1                                 | Specimen                  of Common Stock Certificate.                                                                                                          | 10-SB                                          | 0-27587                          | 4.1 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 4.2*                                | Form                  of Stock Option Grant Agreement under the CDKnet.com, Inc. 2004                  Stock                  Option and Restricted Stock Plan. | 10-KSB                                         | 0-27587                          | 4.7 | 9/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 9.1                                 | Stockholders                  and Voting Agreement dated as of May 21, 2004 by and among CDKnet.com,                  Inc. and several stockholders.            | 10-KSB                                         | 0-27587                          | 9.1 | 9/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 10.1*                               | Technology                  Horizons Corp. 1998 Equity Incentive Plan.                                                                                          | 10-SB                                          | 0-27587                          | 10.1 | 10/7/99 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 10.2*                               | Consulting                  Agreement dated as of May 21, 2004 between CDKnet.Com, Inc. and                  Kirk M.                  Warshaw.                  | 10-KSB                                         | 0-27587                          | 10.16 | 9/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |
| 10.3                                | Registration                  Rights Agreements dated as of May 21, 2004 between CDKnet.Com,                  Inc. and                  several stockholders.   | 10-KSB                                         | 0-27587                          | 10.17.110.17.2 | 9/17/04 |   |
|                                |                                                                                                                                                            |                                           |                             |   |   |   |

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|   |                                                                                                                                                                                           |   |    |   |     |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|----------|--------|
| 10.4*  | Consulting                  Agreement dated as of May 21, 2004 between CDKnet.Com, Inc. and                  Andreas                  Typaldos.                                                | 10-KSB | 0-27587 | 10.18  | 9/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.5*  | Employment                  Agreement dated as of May 23, 2004 between CDKnet.Com, Inc. and                  Oleg                  Logvinov.                                                   | 10-KSB | 0-27587 | 10.19  | 9/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.6   | Letter                  Agreement dated November 19, 2003 between CDKnet.Com, Inc. and                  certain                  holders of Series A Preferred Stock                           | 10-QSB | 0-27587 | 10.1   | 2/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.7   | Development                  Agreement between Enikia LLC and Leviton Manufacturing Co., Inc.                  dated                  July 14, 2003                                            | 10-KSB | 0-27587 | 10.21  | 9/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.8   | Agreement                  made June 28, 2004 between Arkados, Inc. and Leviton Manufacturing                  Co.,                  Inc.                                                      | 10-KSB | 0-27587 | 10.22  | 9/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.9   | Silicon                  Product Development Production Collaboration Agreement dated August                  ___,                  2004 between GDA Technologies, Inc. and Arkados, Inc.      | 10-KSB | 0-27587 | 10.23  | 9/17/04  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.10  | Consulting                  Agreement dated October 20, 2004 between  CDKnet.com Inc.                  andInvestor                  Relations Services, Inc., a Delaware corporation | 10-QSB | 0-27587 | 10.1   | 10/22/04 |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.11  | Payment                  Agreement dated October 20, 2004 between CDKnet.com, Inc. and Summit                  Trading Limited, a Bermuda company                                              | 10-QSB | 0-27587 | 10.2   | 10/22/04 |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.12  | Grid                  Promissory Note due December 15, 2004 to Steven Horowitz                                                                                                                 | 10-QSB | 0-27587 | 10.3   | 10/22/04 |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.13  | Settlement                  Agreement dated January 25, 2005 between CDKnet.com, Inc. and Summit                  Trading Limited                                                              | 10-QSB | 0-27587 | 10.1   | 1/25/05  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.14  | Settlement                  Agreement dated January 25, 2005 between CDKnet.com, Inc. and Investor                  Relations Services, Inc.                                                   | 10-QSB | 0-27587 | 10.2   | 1/25/05  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.15  | Form                  of 10% convertible extendible note due June 8, 2005 in the aggregate                  authorized principal amount of $750,000                                            | 10-QSB | 0-27587 | 10.1   | 4/19/05  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.16  | Form                  of three year warrant exercisable at $0.67                                                                                                                               | 10-QSB | 0-27587 | 10.2   | 4/19/05  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.17  | Form                  of registration rights agreement relating to the 10% convertible                  extendible notes and three year warrants                                               | 10-QSB | 0-27587 | 10.3   | 4/19/05  |   |
|   |                                                                                                                                                                                           |   |    |   |     |   |
| 10.18  | Amendment                  dated April 15, 2005 to 10% grid note payable to the Andreas Typaldos                  Family Limited Partnership                                                   | 10-QSB | 0-27587 | 10.4   | 4/19/05  |   |

----

|   |                                                                                                                                                     |   |    |   |    |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|
| 10.19* | Stock                  Option Grant Agreement dated June 21, 2005                                                                                        | 8-K    | 0-27587 | 10.1   | 6/24/05 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 10.20  | Form                  of Securities Purchase Agreement                                                                                                   | 8-K    | 0-27587 | 10.1   | 7/14/05 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 10.21  | Form                  of 6% Convertible Subordinated Note due July 7, 2007 in the aggregate                  authorized principal amount of $2.4 million | 8-K    | 0-27587 | 10.2   | 7/14/05 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 10.22  | Form                  of three year warrant exercisable at $0.35                                                                                         | 8-K    | 0-27587 | 10.3   | 7/14/05 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 14.1   | Code                  of Business Conduct and Ethics                                                                                                     | 10-KSB | 0-27587 | 14.1   | 9/17/04 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 14.2   | Code                  of Ethics for Financial Executives                                                                                                 | 10-KSB | 0-27587 | 14.2   | 9/17/04 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 16.1   | Letter                  dated March 24, 2005 from Radin, Glass & Co., LLP                                                                            | 8-K    | 0-27587 | 16.1   | 3/24/05 |   |
|   |                                                                                                                                                     |   |    |   |    |   |
| 21     | Subsidiaries                  of the Registrant.                                                                                                         |   |    |   |    |   |
|   |                                                                                                                                                     |   |    |   |    |   |

| 31.1   | Certification                  of Chief Executive Officer of Periodic Report pursuant to Rule                  13a-14a and                  Rule 15d-14(a). | 10-KSB | 0-27587 | 31.1   | 9/13/07 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|
|   |                                                                                                                                                        |   |    |   |    |   |
| 31.2   | Certification                  of Chief Financial Officer of Periodic Report pursuant to Rule                  13a-14a and                  Rule 15d-14(a). | 10-KSB | 0-27587 | 31.2   | 9/13/07 |   |
|   |                                                                                                                                                        |   |    |   |    |   |

| 31.3   | Certification                    of Chief Executive Officer of Periodic Report pursuant to Rule                    13a-14a and                    Rule 15d-14(a). | 10-KSB | 0-27587 | 31.3   |   | X      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|
|   |                                                                                                                                                              |   |    |   |   |   |
| 31.4   | Certification                    of Chief Financial Officer of Periodic Report pursuant to Rule                    13a-14a and                    Rule 15d-14(a). | 10-KSB | 0-27587 | 31.4   |   | X      |
|   |                                                                                                                                                              |   |    |   |   |   |

| 32.1   | Certification                  of Chief Executive Officer of pursuant to 18 U.S.C. - Section                  1350. | 10-KSB | 0-27587 | 32.1   | 9/13/07 |   |
|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|
|   |                                                                                                                |   |    |   |    |   |
| 32.2   | Certification                  of Chief Financial Officer of pursuant to 18 U.S.C. - Section                  1350. | 10-KSB | 0-27587 | 32.2   | 9/13/07 |   |
|   |                                                                                                                |   |    |   |    |   |
| 99.1   | Audit                  Committee Charter                                                                            |   |    |   |    | X      |
|   |                                                                                                                |   |    |   |    |   |
| 99.2   | Compensation                  Committee Charter                                                                     |   |    |   |    | X      |

----

**SIGNATURES**

|   | **ARKADOS                    GROUP, Inc.** |                                                                                                        |
|--------|--------------------------------------------|-------------------------------------------------------------------------------------------------------------|
|   |                                       |                                                                                                        |
|   |                                       |                                                                                                        |   |
|   | By:                                        | /s/ Oleg                  Logvinov                                                                     |   |
|   |                                       | Oleg                    LogvinovPresident                    and Chief                    Executive Officer |   |
|   |                                       |                                                                                                        |   |
|   |                                       |                                                                                                        |   |

|                                                        |   |                                                                                                                                                 |
|-------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |   |                                                                                                                                                 |
|                                                        |   |                                                                                                                                                 |   |
|                                                        | By:    | /s/ Barbara                    Kane-Burke                                                                                                       |   |
|                                                        |   | Barbara                      Kane-BurkeChief                      Financial Officer (PrincipalFinancial                      and Accounting Officer) |   |
|                                                        |   |                                                                                                                                                 |   |
| Date:   November                    28, 2007 |   |                                                                                                                                                 |   |

----