**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-QSB**

|   | [X]  Quarterly                  Report under Section 13 or 15(d) of the Securities Exchange Act                  of                  1934. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

**September 30, 2007**

|   | [   ]  Transition                  Report under Section 13 or 15(d) of the  Exchange                  Act |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

**3**
**33-120908**

**GLOBAL        MUSIC INTERNATIONAL, INC.**

|                                                                            |                                           |
|---------------------------------------------------------------------------------|------------------------------------------------|
| **Florida**                                                                     | **20-1354562**                                 |
| (State                  or other jurisdiction of incorporation or organization) | (I.R.S.                  Employer I.D. Number) |

**30        Grassy Plain Street, Suite 7, Bethel, Connecticut 06801**

**(203)        730-0888**

----

**INDEX**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Page                  No. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| **PART                  1.  FINANCIAL INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  1.                      Financial                  Statements                                                                                                                                                                                                                                                                                                                                                                                                                             | 3                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Condensed                  Balance Sheets,                  September 30, 2007 (unaudited) and June 30, 2007 (audited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 3                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Condensed                  Statements of                  Operations, for the three  month periods ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |
| September                  30 2007 and 2006 and                  Cumulative from Inception (July 1, 2004) to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                      |
| September                  30, 2007                  (unaudited)                                                                                                                                                                                                                              | 4                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Condensed                  Statement of Changes in                  Stockholders’ Deficiency, Cumulative from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                      |
| Inception                  (July 1, 2004) to                  September 30, 2007 (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 5                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Condensed                  Statements of Cash                  Flows, for the three month periods ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                      |
| September                  30, 2007 and 2006 and                  Cumulative from Inception (July 1, 2004) to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                      |
| September                  30, 2007                  (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 6                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Notes                  to Condensed Financial                  Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 7                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  2.                      Management’s                  Discussion and Analysis or Plan of Operation                                                                                                                                                                                                                                                                                                                                                                                  | 14                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  3A(T).             Controls                  and                  Procedures                                                                                                                                                                                                                                    | 15                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| **PART                  II.  OTHER INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  1.                      Legal                  Proceedings                                                                                                                                                                                                                                                                | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  2.                      Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                      | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  3.                      Defaults                  Upon Senior                  Securities                                                                 | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  4.                      Submission                  of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                              | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  5.                      Other                  Information                                                                                                                                                                                                                                                                                                                                                                                                                                | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
| Item                  6.                      Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 17                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |
|                Signatures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 18                        |

----

| **PART                1.**                          | **FINANCIAL                INFORMATION** |   |   |   |   |   |   |
|-----------------------------------------------------|------------------------------------------|--------|--------|--------|--------|--------|--------|
| **Item                1.**                          | **Financial                Statements**  |   |   |   |   |   |   |
|                                                |                                     |   |   |   |   |   |   |
| **GLOBAL                MUSIC INTERNATIONAL, INC.** |                                     |
| **(A                DEVELOPMENT STAGE COMPANY)**    |                                     |
| **CONDENSED                BALANCE SHEETS**         |                                     |
|                                                |                                     |
| **ASSETS**                                          |                                     |
|                                                |                                     |   |   |   |   |   |   |

|                                                                                                                    |   |       | **September                30, 2007** |   |   | **June                30, 2007** |        |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------|---------------------------------------|--------|--------|----------------------------------|-------------|
|                                                                                                                    |   |       | **(unaudited)**                       |   |   | **(audited)**                    |        |
| **                    Cash**                                                                        |   |       | $                                     | 6,769  |   |                             | $           | 81,786 |   |
| **Prepaid                License Fees**                                                                                 |   |       | 116,200                               |   |   |                             | 50,000      |   |
| **Other                Current Assets**                                                                                 |   |       | 1,994                                 |   |   |                             | 2,600       |   |
| **Total                Current Assets**                                                                                 |   |       | 124,963                               |   |   |                             | 134,386     |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |   |
| **Property                and Equipment, net**                                                                          |   |       | 25,303                                |   |   |                             | 25,681      |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |
| **TOTAL                ASSETS**                                                                                         |   | **$**      | **150,266**                           |   |   | **$**                            | **160,067** |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIENCY**                                                             |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |   |
| **LIABILITIES**                                                                                                         |   |       |                                  |   |   |                             |        |   |
| **Accounts                Payable**                                                                                     |   | $          | 190,000                               |   |   | $                                | 25,500      |   |
| **Accrued                Expenses**                                                                                     |   |       | 47,252                                |   |   |                             | 20,168      |   |
| **Accrued                Compensation**                                                                                 |   |       | 162,500                               |   |   |                             | 125,000     |   |
| **Convertible                Debt**                                                                                     |   |       | 2,272,950                             |   |   |                             | 2,119,609   |   |
| **Total                Current Liabilities**                                                                            |   |       | 2,672,702                             |   |   |                             | 2,290,277   |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |   |
| **COMMITMENTS                AND CONTINGENCIES (Note 8)**                                                               |   | ** ** | **-**                                 |   |   | ** **                       | **-**       |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |   |
| **STOCKHOLDERS'                DEFICIENCY**                                                                             |   |       |                                  |   |   |                             |        |   |
| **Common                Stock, $.0001 par value,**                                                                      |   |       |                                  |   |   |                             |        |   |
| **40,000,000                shares authorized**                                                                         |   |       | 2,229                                 |   |   |                             | 2,219       |   |
| **Additional                Paid-In Capital**                                                                           |   |       | 2,843,347                             |   |   |                             | 2,745,488   |   |
| **Deficit                Accumulated During the Development Stage**                                                     |   |       | (5,368,012                            | )      |   |                             | (4,877,917  | ) |
| **Total                Stockholders' Deficiency**                                                                       |   |       | (2,522,436                            | )      |   |                             | (2,130,210  | ) |
| **TOTAL                LIABILITIES AND STOCKHOLDERS' DEFICIENCY**                                                       |   | **$**      | **150,266**                           |   |   | **$**                            | **160,067** |   |
|                                                                                                                    |   |       |                                  |   |   |                             |        |   |   |
| ***The                accompanying notes are an integral part of these condensed financial                statements*** |   |

----

| **GLOBAL                MUSIC INTERNATIONAL,                INC.**                                                      |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| **(A                DEVELOPMENT STAGE COMPANY)**                                                                        |   |
| **CONDENSED                STATEMENTS OF OPERATIONS (UNAUDITED)**                                                       |   |
|                                                                                                                    |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   | **Cumulative                From Inception** |   |
|                                                                                                                    |   | **Three                Month Period Ended** |   |   | **(July                1, 2004) To** |   |
|                                                                                                                    |   | **September                30, 2007** |   |   | **September                30, 2006** |   |   | **September                30, 2007** |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                                                                            |   | $ | - |   |   | $ | - |   |   | $ | 127,785 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Consulting                and Professional Fees Expense**                                                             |   |   | 194,156 |   |   |   | 15,000 |   |   |   | 550,051 |   |
| **Compensation  Expense**                                                                                     |   |   | 101,599 |   |   |   | 68,750 |   |   |   | 1,715,525 |   |
| **General                and Administrative Expenses**                                                                  |   |   | 99,809 |   |   |   | 87,815 |   |   |   | 502,517 |   |
| **License                Fees**                                                                                         |   |   | - |   |   |   | - |   |   |   | 150,000 |   |
| **Interest                Expense**                                                                                     |   |   | 90,570 |   |   |   | 17,115 |   |   |   | 1,049,239 |   |
| **Depreciation                Expense**                                                                                 |   |   | 3,961 |   |   |   | 12,272 |   |   |   | 142,965 |   |
|                                                                                                                    |   |   | 490,095 |   |   |   | 200,952 |   |   |   | 4,110,297 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                Before Provision For Income Taxes**                                                               |   |   | (490,095 | ) |   |   | (200,952 | ) |   |   | (3,982,512 | ) |
| **Provision                For Income Taxes**                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |
| **Net                Loss**                                                                                             |   | $ | (490,095 | ) |   | $ | (200,952 | ) |   | $ | (3,982,512 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Loss Per Common Share, basic and diluted**                                                         |   | $ | (0.02 | ) |   | $ | (0.01 | ) |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Basic Common Shares Outstanding**                                                     |   |   | 22,282,302 |   |   |   | 22,118,233 |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| ***The                accompanying notes are an integral part of these condensed financial                statements*** |   |

----

| **GLOBAL                MUSIC INTERNATIONAL,                INC.**                                                      |       |
|-------------------------------------------------------------------------------------------------------------------------|------------|
| **(A                DEVELOPMENT STAGE COMPANY)**                                                                        |       |
| **CONDENSED                STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIENCY**                                           |       |
| **CUMULATIVE                FROM INCEPTION (JULY 1, 2004) TO SEPTEMBER 30, 2007                (UNAUDITED)**            |       |
|                                                                                                                    |       |   |   |   |   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** **                                                                                                              | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | **Deficit                Accumulated** | ** ** | ** ** | **Total** | ** ** |
| ** **                                                                                                              | ** ** | **Common                Stock** | ** ** | ** ** | **Additional** | ** ** | ** ** | **During                the** | ** ** | ** ** | **Stockholders'** | ** ** |
| ** **                                                                                                              | ** ** | **Shares** | ** ** | ** ** | **Value** | ** ** | ** ** | **Paid-in                Capital** | ** ** | ** ** | **Development                Stage** | ** ** | ** ** | **Deficiency** |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                Stock                                                                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                in connection with:                                                                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Incorporation                (July 1, 2004)                                                                             |       |   | 20,350,000 |   |   | $ | 2,035 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,035 |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private                Placements                                                                                       |       |   | 1,507,000 |   |   |   | 151 |   |   |   | 589,995 |   |   |   | - |   |   |   | 590,146 |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consulting                Services and Officers' Compensation                                                           |       |   | 427,500 |   |   |   | 43 |   |   |   | 621,025 |   |   |   | - |   |   |   | 621,068 |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of Stock Options for Employee Compensation                                                      |       |   | - |   |   |   | - |   |   |   | 864,412 |   |   |   | - |   |   |   | 864,412 |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial                Conversion Feature Associated with                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Convertible                Debt                                                                                         |       |   | - |   |   |   | - |   |   |   | 767,915 |   |   |   | - |   |   |   | 767,915 |   |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                                                                                                                |       |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,385,500 | ) |   |   | (1,385,500 | ) |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                                 |       |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,982,512 | ) |   |   | (3,982,512 | ) |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2007                                                                              |       |   | 22,284,500 |   |   | $ | 2,229 |   |   | $ | 2,843,347 |   |   | $ | (5,368,012 | ) |   | $ | (2,522,436 | ) |
|                                                                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ***The                accompanying notes are an integral part of these condensed financial                statements*** |       |

----

| **GLOBAL                MUSIC INTERNATIONAL, INC.**                                                                     |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| **(A                DEVELOPMENT STAGE COMPANY)**                                                                        |   |
| **CONDENSED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                       |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   | **Cumulative                From** |   |
|                                                                                                                    |   |   |   |   |   |   |   | **Inception                (July 1, 2004)** |   |
|                                                                                                                    |   | **Three Month                Period Ended** |   |   | **To** |   |
|                                                                                                                    |   | **September                30, 2007** |   |   | **September                30, 2006** |   |   | **September                30, 2007** |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                                |   |   |   |   |   |   |   |   |   |
| **Net                loss**                                                                                             |   | $ | (490,095 | ) |   | $ | (200,952 | ) |   | $ | (3,982,512 | ) |
| **Adjustments                to reconcile net loss to net cash**                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| **  used                in operating activities:**                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation                expense**                                                                                 |   |   | 3,961 |   |   |   | 12,272 |   |   |   | 142,965 |   |
| **       Compensation                expense  pursuant to common stock**   |   |   |   |   |   |   |   |   |   |   |   |   |
| **      issued                to founders at time of incorporation**                      |   |   | - |   |   |   | - |   |   |   | 2,035 |   |
| **       Consulting                and compensation expense pursuant to common**     |   |   |   |   |   |   |   |   |   |   |   |   |
| **     stock                issued in exchange for services received**                         |   |   | 26,656 |   |   |   | 84,250 |   |   |   | 621,068 |   |
| **Compensation                expense pursuant to issuance of stock options**                                           |   |   | 12,984 |   |   |   | - |   |   |   | 864,412 |   |
| **Amortization                of debt discount to interest expense**                                                    |   |   | 58,229 |   |   |   | - |   |   |   | 767,915 |   |
| **Interest                on convertible debt paid in kind**                                                            |   |   | 32,341 |   |   |   | 17,115 |   |   |   | 277,396 |   |
| **Changes                in assets and liabilities:**                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| **(Increase)                decrease in:**                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| **Accounts                Receivable**                                                                                  |   |   | - |   |   |   | 19,935 |   |   |   | - |   |
| **Prepaid                License Fees**                                                                                 |   |   | (66,200 | ) |   |   | 3,408 |   |   |   | (116,200 | ) |
| **Other                Current Assets**                                                                                 |   |   | 606 |   |   |   | - |   |   |   | (1,994 | ) |
| **Increase                (decrease) in:**                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| **Accounts                Payable**                                                                                     |   |   | 164,500 |   |   |   | 19,795 |   |   |   | 190,000 |   |
| **Accrued                Expenses**                                                                                     |   |   | 27,084 |   |   |   | 8,764 |   |   |   | 47,252 |   |
| **Accrued                Compensation**                                                                                 |   |   | 37,500 |   |   |   | - |   |   |   | 162,500 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                cash used in operating activities**                                                                |   |   | (192,434 | ) |   |   | (35,413 | ) |   |   | (1,025,163 | ) |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| **Purchases                of Property and Equipment**                                                                  |   |   | (3,583 | ) |   |   | (9,349 | ) |   |   | (53,768 | ) |
| **Net                cash used in investing activities**                                                                |   |   | (3,583 | ) |   |   | (9,349 | ) |   |   | (53,768 | ) |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| **Proceeds                from Convertible Debt**                                                                       |   |   | 146,000 |   |   |   | 41,000 |   |   |   | 910,928 |   |
| **Repayments                of Convertible Debt**                                                                       |   |   | (25,000 | ) |   |   | - |   |   |   | (415,374 | ) |
| **Proceeds                from Private Placement Offering, net**                                                        |   |   | - |   |   |   | - |   |   |   | 590,146 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                cash provided by financing activities**                                                            |   |   | 121,000 |   |   |   | 41,000 |   |   |   | 1,085,700 |   |
| **Increase                (decrease) in cash**                                                                          |   |   | (75,017 | ) |   |   | (3,762 | ) |   |   | 6,769 |   |
| **Cash,                beginning of period**                                                                            |   |   | 81,786 |   |   |   | 5,222 |   |   |   | - |   |
| **Cash,                end of period**                                                                                  |   | **$** | **6,769** |   |   | **$** | **1,460** |   |   | **$** | **6,769** |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **Supplemental                disclosures of cash flow information:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-cash                investing and financing activities**                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| **  Note                payable recorded in connection with purchase of**                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| **    equipment                and recognition of dividend to officer / director**                  |   | $ | - |   |   | $ | - |   |   | $ | 1,500,000 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| ***The                accompanying notes are an integral part of these condensed financial                statements*** |   |

----

**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE      1 – BASIS OF PRESENTATION**

**NOTE      2 – SIGNIFICANT ACCOUNTING POLICIES**

**NATURE      OF OPERATIONS**

**DEVELOPMENT      STAGE COMPANY**

**USE      OF ESTIMATES**

**REVENUE      RECOGNITION**

----

**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      2 – SIGNIFICANT ACCOUNTING POLICIES *(Continued)***

**               STOCK      BASED COMPENSATION**

*Share-Based Payment.”*

**CONVERTIBLE      DEBT**

*“Accounting for Convertible      Securities with Beneficial Conversion Features,”*
*“Application of EITF 98-5 to Certain Convertible Instruments,”*

**NET      LOSS PER COMMON SHARE**

*Earnings per      Share*

**FOREIGN      CURRENCY TRANSACTIONS**

*“Foreign Currency      Translation,”*

**RECLASSIFICATION**

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**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      3 – CONTROL**

**NOTE  4      -  CONVERTIBLE DEBT**

|                                                                                                                                                                           |   | **September                30, 2007** | ** ** | ** ** | **June                30, 2007** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|------------|----------------------------------|--------|
| Unsecured                working capital advances from Treasurer/Director, due on demand,                with                interest at 6%                                    |   | $                                     | 544,946    |       |                             | $      | 423,946 |   |
|                                                                                                                                                                           |   |                                  |       |       |                             |   |   |   |
| Note                payable to Treasurer/Director, secured by substantially all of the                assets                of the Company, due on demand, with interest at 6% |   |                                  | 1,131,680  |       |                             |   | 1,131,680 |   |
|                                                                                                                                                                           |   |                                  |       |       |                             |   |   |   |
| Term                loans payable, due from December 29, 2007 through May 10, 2008, with                interest ranging from 6 %– 14%                                   |   |                                  | 318,928    |       |                             |   | 318,928 |   |
|                                                                                                                                                                           |   |                                  |       |       |                             |   |   |   |
|                                                                                                                                                                           |   |                                  | 1,995,554  |       |                             |   | 1,874,554 |   |
|                                                                                                                                                                           |   |                                  |       |       |                             |   |   |   |
| Accrued                interest on above arrangements                                                                                                                          |   |                                  | 277,396    |       |                             |   | 245,055 |   |
|                                                                                                                                                                           |   | $                                     | 2,272,950  |       |                             | $      | 2,119,609 |   |

**WORKING      CAPITAL ADVANCES**

**NOTE      PAYABLE –TREASURER / DIRECTOR**

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**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      4 -  CONVERTIBLE DEBT *(continued)***

**TERM      LOANS PAYABLE**

|                                                                                                          |   | **September                30, 2007** | ** ** | ** ** | **June                30,****2007** |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|------------|-------------------------------------|--------|
| Note                dated February 2, 2007, 9% interest, maturing  December 30,                2007 |   | $                                     | 25,000     |       |                                | $      | 25,000 |   |
| Note                dated May 10, 2007, 6% interest, maturing  May 10,                2008          |   |                                  | 25,000     |       |                                |   | 25,000 |   |
| Note                dated May 30, 2007, 14% interest, maturing December 30,                2007               |   |                                  | 101,989    |       |                                |   | 101,989 |   |
| Note                dated June 7, 2007, 9% interest, maturing  December 30,                2007     |   |                                  | 66,939     |       |                                |   | 66,939 |   |
| Note                dated June 29, 2007, 9% interest, maturing December 29,                2007               |   |                                  | 100,000    |       |                                |   | 100,000 |   |
|                                                                                                          |   | $                                     | 318,928    |       |                                | $      | 318,928 |   |

**CONVERSION      FEATURE**

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**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      5 – STOCK OPTIONS**

|                                              |   | **Stock                Options** | ** ** | ** ** | **Weighted****Average****Exercise                Price** |   |
|---------------------------------------------------|--------|----------------------------------|------------|------------|----------------------------------------------------------|--------|
|                                              |   |                             |       |       |                                                     |   |
| Outstanding,                June 30, 2007         |   |                             | 1,175,000  |       |                                                     | $      | 1.15 |   |
|      Granted             |   |                             | 176,250    |       |                                                     |   | 1.15 |   |
|      Expired             |   |                             | -          |       |                                                     |   | - |   |
|      Exercised           |   |                             | -          |       |                                                     |   | - |   |
| Outstanding,                September 30, 2007    |   |                             | 1,351,250  |       |                                                     |   | 1.15 |   |
|                                              |   |                             |       |       |                                                     |   |   |   |
| Average                remaining life (years)     |   |                             | 4.4        |       |                                                     |   |   |   |
|                                              |   |                             |       |       |                                                     |   |   |   |
| Exerciseable                at September 30, 2007 |   |                             | 1,175,000  |       |                                                     |   | 1.15 |   |
|                                              |   |                             |       |       |                                                     |   |   |   |
| Intrinsic                value:                   |   |                             |       |       |                                                     |   |   |   |
|                                              |   |                             |       |       |                                                     |   |   |   |
|      Outstanding         |   | $                                | -0-        |       |                                                     |   |   |   |
|                                              |   |                             |       |       |                                                     |   |   |   |
|      Exerciseable        |   | $                                | -0-        |       |                                                     |   |   |   |
|                                              |   |                             |       |       |                                                     |   |   |   |

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**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      6 – OPERATING LEASES**

**NOTE      7 – COMMON STOCK**

**NOTE      8 – COMMITMENTS AND CONTINGENCIES**

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**GLOBAL      MUSIC INTERNATIONAL, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS (*Continued)***

**(UNAUDITED)**

**NOTE      9 – GOING CONCERN**

**NOTE      10 – SUBSEQUENT EVENTS**

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**Item        2.                    Management's Discussion and Analysis or Plan of Operation**

**Forward-Looking        Statements**

**Results        of Operations for Periods Ended September 30, 2007 and        2006**

|                                                 |   |  Three                  Months Ended September 30,    |    |
|------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|
|                                                 |   | 2007                                                                      |    |   | 2006 |   |
|                                                 |   |                                                                      |    |   |   |   |
| Consulting                  and Professional Fees    |   | $                                                                         | 194,156 |   |   | $ | 15,000 |   |
| Compensation                  Expense                |   |                                                                      | 101,599 |   |   |   | 68,750 |   |
| General                  and Administrative Expenses |   |                                                                      | 99,809  |   |   |   | 87,815 |   |
| Interest                  Expense                    |   |                                                                      | 90,570  |   |   |   | 17,115 |   |
| Depreciation                  Expense                |   |                                                                      | 3,961   |   |   |   | 12,272 |   |
|                                                 |   |                                                                      |    |   |   |   |   |   |
| Total                  Expenses                      |   | $                                                                         | 490,095 |   |   | $ | 200,952 |   |

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**Liquidity        and Capital Resources**

**Off        Balance Sheet Arrangements**

**.**

**Item        3A(T).  Controls and Procedures**

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**PART        II - OTHER INFORMATION**

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

**Item        5.  Other Information.**

**Item        6.  Exhibits**

**Exhibit        No.       Description of        Exhibit**

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**SIGNATURES**

**Global        Music International,        Inc.**

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