UNITED STATES
                        SECURITES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the quarterly period ended: February 28, 2007

                                       OR

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

    For the transition period from ________________ to ________________

                        Commission File Number: 000-50643


                        GLOBAL ENTERTAINMENT CORPORATION
        (Exact name of small business issuer as specified in its charter)


           Nevada                                        86-0933274
(State or other Jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)


                       4909 East McDowell Road, Suite 104
                           Phoenix, Arizona 85008-4293
                                 (480) 994-0772

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate  whether the registrant is a shell company (as defined in Rule 12b-2 of
the Exchange Act) Yes [ ] No [X]

Number of shares outstanding of each of the registrant's classes of common stock
as of April 10, 2007:

                          Common Stock, $.001 par value
                                6,508,173 shares

Transitional Small Business Disclosure Format (Check one): Yes [ ] No[X]
<PAGE>
                        GLOBAL ENTERTAINMENT CORPORATION
                                      INDEX
                              REPORT ON FORM 10-QSB
                     FOR THE QUARTER ENDED FEBRUARY 28, 2007


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

     Condensed Consolidated Balance Sheets - As of February 28, 2007
     (Unaudited) and May 31, 2006                                              3

     Condensed Consolidated Statements of Operations (Unaudited) - Nine
     and Three Months Ended February 28, 2007 and 2006                         5

     Condensed Consolidated Statements of Changes in Stockholders' Equity -
     Fiscal Year ended May 31, 2006 and Nine Months Ended February 28, 2007
     (Unaudited)                                                               6

     Condensed Consolidated Statements of Cash Flows (Unaudited) - Nine
     Months Ended February 28, 2007 and 2006                                   7

     Notes to Condensed Consolidated Financial Statements                      9

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations                                                 18

Item 3. Controls and Procedures                                               25

PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                                     25

Item 6. Exhibits                                                              26

                                       2
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    AS OF FEBRUARY 28, 2007 AND MAY 31, 2006

                                     ASSETS
<TABLE>
<CAPTION>
                                                                        February 28,           May 31,
                                                                           2007                 2006
                                                                        -----------          -----------
                                                                        (Unaudited)
<S>                                                                     <C>                  <C>
CURRENT ASSETS:
  Cash and cash equivalents                                             $ 5,144,653          $ 5,438,091
  Accounts receivable - trade, less allowance for doubtful accounts
   of $62,925 at February 28, 2007 and $34,945 at May 31, 2006            5,628,149            6,004,068
  Accounts receivable - miscellaneous                                        76,939               64,460
  Prepaid expenses and other assets                                         622,303              357,682
  Refundable income tax                                                      63,000               63,000
  Deferred income tax asset                                                  14,000               14,000
                                                                        -----------          -----------

      TOTAL CURRENT ASSETS                                               11,549,044           11,941,301

Accounts Receivable - trade - long term portion                                  --              300,000

Property and Equipment, net                                                 206,476              222,068

Intangible Assets, net                                                    3,652,105            3,572,515

Goodwill                                                                    518,750              518,750

Non-Marketable Securities                                                    78,489               78,489

Miscellaneous Assets                                                        128,642              127,477
                                                                        -----------          -----------

      TOTAL ASSETS                                                      $16,133,506          $16,760,600
                                                                        ===========          ===========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       3
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
                    AS OF FEBRUARY 28, 2007 AND MAY 31, 2006


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                      February 28,              May 31,
                                                                          2007                   2006
                                                                      ------------           ------------
                                                                       (Unaudited)
<S>                                                                   <C>                    <C>
CURRENT LIABILITIES:
  Accounts payable                                                    $  2,792,982           $  3,105,876
  Accrued liabilities                                                    2,514,736              1,281,636
  Deferred revenues                                                        464,300                900,386
                                                                      ------------           ------------

      TOTAL CURRENT LIABILITIES                                          5,772,018              5,287,898

Deferred revenues - long term portion                                      340,694                392,195
Deferred income tax liability                                               66,000                 66,000
                                                                      ------------           ------------

      TOTAL LIABILITIES                                                  6,178,712              5,746,093
                                                                      ------------           ------------

STOCKHOLDERS' EQUITY:
  Preferred stock - $.001 par value; 10,000,000 shares authorized;
   no shares issued or outstanding                                              --                     --
  Common stock - $.001 par value; 50,000,000 shares authorized;
   6,508,173 and 6,487,492 shares issued and outstanding as of
   February 28, 2007 and May 31, 2006, respectively                          6,508                  6,488
  Paid-in capital                                                       10,731,010             10,665,781
  Retained earnings (deficit)                                             (782,724)               342,238
                                                                      ------------           ------------

      TOTAL STOCKHOLDERS' EQUITY                                         9,954,794             11,014,507
                                                                      ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $ 16,133,506           $ 16,760,600
                                                                      ============           ============
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       4
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                              For the nine months ended                 For the three months ended
                                           February 28,         February 28,         February 28,         February 28,
                                               2007                 2006                 2007                 2006
                                           ------------         ------------         ------------         ------------
<S>                                        <C>                  <C>                  <C>                  <C>
Revenues
  Project management fees                  $ 13,162,350         $  6,387,092         $  1,860,334         $    794,366
  Facility management fees                    3,145,544            1,203,067            1,645,197              630,588
  Licensing and advertising fees              2,714,398            2,054,121              959,990              719,194
  Ticket service fees                         2,990,552            1,203,204            1,180,088              666,356
  Franchise fees                                115,000              150,000                   --               50,000
  Other revenue                                  10,879                7,392                8,173                5,702
                                           ------------         ------------         ------------         ------------
Gross Revenues                               22,138,723           11,004,876            5,653,782            2,866,206
                                           ------------         ------------         ------------         ------------
Operating Costs
  Cost of revenues                           16,979,203            6,530,595            3,819,431            1,363,268
  General and administrative costs            6,500,360            4,239,186            2,213,978            1,462,748
                                           ------------         ------------         ------------         ------------
                                             23,479,563           10,769,781            6,033,409            2,826,016
                                           ------------         ------------         ------------         ------------

Income (Loss) from Operations                (1,340,840)             235,095             (379,627)              40,190

Other Income (Expense)
  Interest income                               228,259                7,414               79,474                2,836
  Interest expense                              (12,381)             (10,317)              (3,675)              (4,444)
                                           ------------         ------------         ------------         ------------

Income (Loss) Before Income Taxes            (1,124,962)             232,192             (303,828)              38,582
Income Tax Benefit                                   --               10,285                   --               57,285
                                           ------------         ------------         ------------         ------------

Net Income (Loss)                          $ (1,124,962)        $    242,477         $   (303,828)        $     95,867
                                           ============         ============         ============         ============

Income (Loss) Per Share - basic            $      (0.17)        $       0.05         $      (0.05)        $       0.02
                                           ============         ============         ============         ============
Weighted average shares outstanding
  - basic                                     6,500,953            5,346,583            6,508,173            5,348,302
                                           ============         ============         ============         ============

Income (Loss) Per Share -  diluted         $      (0.17)        $       0.04         $      (0.05)        $       0.02
                                           ============         ============         ============         ============
Weighted average shares outstanding
  - diluted                                   6,500,953            5,647,062            6,508,173            5,684,406
                                           ============         ============         ============         ============
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       5
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                 FOR THE FISCAL YEAR ENDED MAY 31, 2006 AND THE
                       NINE MONTHS ENDED FEBRUARY 28, 2007

<TABLE>
<CAPTION>
                                                   Common Stock
                                              --------------------        Paid-in          Retained
                                              Shares        Amount        Capital     Earnings/(Deficit)      Total
                                              ------        ------        -------     ------------------      -----
<S>                                         <C>           <C>          <C>              <C>               <C>
Balance at May 31, 2005                      5,345,738     $  5,346     $ 5,053,098      $    97,183       $ 5,155,627

Exercise of options and warrants                62,754           63         218,687               --           218,750

Issuance of common stock
private placement, net of registration
costs of $809,175                            1,079,000        1,079       5,393,996               --         5,395,075

Net income for the year ended
May 31, 2006                                        --           --              --          245,055           245,055
                                             ---------     --------     -----------      -----------       -----------

Balance at May 31, 2006                      6,487,492        6,488      10,665,781          342,238        11,014,507

Exercise of options (Unaudited)                 10,681           10           8,739               --             8,749

Issuance of restricted stock (Unaudited)        10,000           10          56,490               --            56,500

Net loss for the nine months ended
February 28, 2007 (Unaudited)                       --           --              --       (1,124,962)       (1,124,962)
                                             ---------     --------     -----------      -----------       -----------

Balance at November 30, 2006 (Unaudited)     6,508,173     $  6,508     $10,731,010      $  (782,724)      $ 9,954,794
                                             =========     ========     ===========      ===========       ===========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       6
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED FEBRUARY 28, 2007 AND 2006
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   For the nine months ended
                                                               February 28,          February 28,
                                                                   2007                  2006
                                                               -----------           -----------
<S>                                                            <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                            $(1,124,962)          $   242,477
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
     Depreciation and amortization                                 132,717                89,537
     Deferred income taxes                                              --               (71,285)
     Allowance for doubtful accounts                                27,990
     Issuance of restricted stock for services                      14,499
  Changes in Assets and Liabilities:
     Accounts receivable
       - trade                                                     647,929               397,796
       - miscellaneous                                             (12,479)              (65,694)
     Prepaid expenses and other assets                            (222,620)             (113,937)
     Miscellaneous assets                                           (1,165)               30,732
     Accounts payable
       - trade                                                    (312,894)             (231,777)
       - related party                                                  --               (13,252)
     Accrued liabilities                                         1,233,100              (156,951)
     Deferred revenues                                            (487,587)              292,849
                                                               -----------           -----------
          NET CASH PROVIDED BY OPERATING ACTIVITIES:              (105,472)              400,495
                                                               -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of fixed assets                                        (107,320)             (112,227)
  Proceeds from sale of fixed assets                                    --                 1,941
  Purchase of trademarks                                           (89,395)               (5,798)
                                                               -----------           -----------
          NET CASH USED IN INVESTING ACTIVITES:                   (196,715)             (116,084)
                                                               -----------           -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from debt                                                    --               150,000
  Repayment of debt                                                     --              (150,000)
  Stock options exercised                                            8,749               113,750
                                                               -----------           -----------
          NET CASH PROVIDED BY FINANCING ACTIVITIES:                 8,749               113,750
                                                               -----------           -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:             (293,438)              398,161

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD:                  5,438,091               750,159
                                                               -----------           -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD:                      $ 5,144,653           $ 1,148,320
                                                               ===========           ===========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       7
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED FEBRUARY 28, 2007 AND 2006
                                   (UNAUDITED)
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                           For the nine months ended
                                                         February 28,       February 28,
                                                            2007               2006
                                                          ---------          ---------
<S>                                                       <C>                <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the period for interest                $  12,381          $  10,317
                                                          =========          =========

  Cash paid during the period for income taxes            $      --          $ 179,256
                                                          =========          =========
NON-CASH FINANCING ACTIVITY
  Issuance of restricted stock for services               $  56,500          $      --
                                                          =========          =========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       8
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 1
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES
--------------------------------------------------------------------------------

BASIS OF PRESENTATION

The condensed consolidated financial statements include the financial statements
of  Global   Entertainment   Corporation   ("Global")   and  its  wholly   owned
subsidiaries,  Western  Professional  Hockey  League Inc.  ("WPHL")  dba Central
Hockey League ("CHL"),  International  Coliseums Company,  Inc. ("ICC"),  Global
Entertainment  Marketing Systems ("GEMS"),  Cragar Industries,  Inc. ("Cragar"),
Global   Entertainment   Ticketing   ("GETTIX"),   Encore  Facility   Management
("Encore"),  and Global Properties I. (collectively  referred to as "we", "our",
"us", or the "Company").  All significant intercompany balances and transactions
have been eliminated in consolidation.

Our accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the instructions  for Form 10-QSB.  Accordingly,
they do not include all the  information  and  footnotes  required by  generally
accepted accounting principles for complete financial statements. In the opinion
of  management,  all  adjustments  (consisting  of  normal  recurring  accruals)
considered necessary for fair presentation have been included.

Operating  results for the nine month  period  ended  February  28, 2007 are not
necessarily  indicative  of the results that may be expected for the year ending
May 31,  2007 or for any other  period.  For further  information,  refer to the
financial  statements and footnotes included in our annual report on Form 10-KSB
for the year ended May 31, 2006.

USE OF ESTIMATES

Management uses estimates and assumptions in preparing  financial  statements in
accordance with accounting  principles  generally accepted in the United States.
Those  estimates  and  assumptions  affect  the  reported  amounts of assets and
liabilities,  the  disclosure  of  contingent  assets and  liabilities,  and the
reported revenues and expenses.  Actual results may vary from the estimates that
were assumed in preparing the financial statements.  Material estimates include,
but are not limited to, the allowance for doubtful accounts,  the carrying value
of  intangible  assets,  the  realization  of the  deferred  income  tax  asset,
percentage of completion estimates, if applicable, potential liabilities arising
from litigation, the value of facility management guarantees, and the allocation
of expenses and division of profit  relating to the joint  operating  agreement.
Due to the uncertainties inherent in the estimation process and the significance
of these  items,  it is at least  reasonably  possible  that  the  estimates  in
connection  with  these  items  could be  further  materially  revised in future
periods.

REVENUE RECOGNITION

FRANCHISE FEES:  Initial franchise fees represent amounts received from WPHL/CHL
franchisees to acquire a hockey  franchise.  The amount is recognized as revenue
when the  franchise  agreement is signed and we have met all of our  significant
obligations under the terms of the franchise  agreement.  We are responsible for
assisting  the  franchisee  with facility  lease  contract  negotiations,  venue
ticketing  analysis  and  pricing,   concessionaire  negotiations  and  staffing
advisements.  These  generally  occur  at the  time the  franchisee  acquires  a
franchise.  Transfer  franchise  fees  represent  the  amounts  received  from a
franchisee upon the transfer of ownership of a franchise and are recognized upon
completion  of the transfer.  We are currently in the process of evaluating  our
franchise license agreement and related revenue recognition policy.

                                       9
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 1
  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES (CONTINUED)
--------------------------------------------------------------------------------

LICENSING AND  ADVERTISING  FEES:  Pursuant to the terms of the Joint  Operating
Agreement  ("JOA"),  each team in the WPHL/CHL  pays annual  assessment  fees of
$75,000, plus $15,000 per annum for officiating costs. In addition, the 14 teams
from the WPHL pay an extra $10,000  annually to cover Global's  costs.  The fees
are  recognized  proportionately  over the  year.  At the end of the  year,  net
profits, or losses are shared  proportionately with each member of the JOA based
upon the amount of revenue that each member has contributed to the league.  GEMS
sells certain contractual rights including facility naming rights,  luxury suite
sales,  club seat license sales,  facility  sponsorship  agreements,  and ticket
operations contracts. The revenue from these contracts is recognized when earned
in accordance with the contract.  Corporate  sponsorship fees represent  amounts
received from third-party sponsors.  Revenue from this source is recognized when
earned based on the terms of the agreement.  Cragar owns the exclusive  right to
sell,  market and promote the CRAGAR(R)  brand name. For this right,  we receive
royalties based on the sale of licensed products.  This revenue is recognized at
the completed sale of the licensed products.

PROJECT  MANAGEMENT  FEES: ICC receives  design/build  and  construction-project
supervisory contract revenue from various  municipalities in connection with the
construction  and financing of municipal  venues.  This is recognized as revenue
ratably over the duration of the contracts. Project management fees also include
amounts  billed by the Company  relating to furniture,  fixtures and  equipment,
architecture  fees,  and other  amounts  incurred  by the  Company  on behalf of
municipalities. The related revenue and expense for these amounts are recognized
in the  period  incurred.  Revenues  and costs  from  fixed-price  and  modified
fixed-price construction contracts, if any, will be recognized for each contract
on the  percentage-of-completion  method,  measured by the  percentage  of costs
incurred to date to the estimated  total direct  costs.  As contracts can extend
over one or more accounting  periods,  revisions in costs and earnings estimated
during the course of the work are  reflected  during  the  accounting  period in
which the facts that  required such revision  become known.  Project  management
revenues  are  recorded  based on the  gross  amounts  billed to a  customer  in
accordance with EITF 99-19,  "Reporting  Revenue Gross as a Principal versus Net
as an Agent".

FACILITY  MANAGEMENT FEES:  Encore receives a fee for managing the operations of
various  municipal  venues.   These  activities  include  developing   operating
procedures  and  manuals,  hiring all  staff,  supporting  sales and  marketing,
location maintenance,  concessions  coordination,  preparing annual budgets, and
securing and promoting events.  Revenues from facility  management  services are
recognized as services are rendered and consist of contract fees,  which reflect
the total price of such services.  Where the Company  principally manages people
who are  employees at the facility,  the payroll  costs from such  employees are
recognized by the Company and are included in "Cost of revenues".

TICKET SERVICE FEES: GETTIX is a ticketing agent with various venues,  theatres,
event  centers,  and private  entities  requiring  services to fulfill orders to
ticketed  events.  Revenues are generated  from the fees charged for  processing
ticket  orders.  These  revenues are  recognized  upon  completion  of the sale.
Ticketing  revenues  are  recorded  based on the net fees  retained by GETTIX in
accordance with EITF 99-19.

INCOME (LOSS) PER SHARE

Basic  income  (loss) per share of common stock was computed by dividing the net
income  (loss)  by the  weighted  average  number  of  shares  of  common  stock
outstanding during the period.

Diluted income (loss) per share is computed based on the weighted average number
of shares of common stock and dilutive securities outstanding during the period.
Dilutive  securities  are not included in the weighted  average number of shares

                                       10
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 1
  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES (CONTINUED)
--------------------------------------------------------------------------------

when  inclusion  would  increase the earnings per share or decrease the loss per
share.  As of  February  28,  2007  and  2006  there  were  921,159  and  81,477
potentially  dilutive  securities   outstanding,   respectively.   None  of  the
potentially dilutive securities were included in the computation of the weighted
average  number of common  stock and  dilutive  securities  as their  effect was
anti-dilutive for the nine and three months ended February 28, 2007.

As of  February  28,  2007 there  were  645,399  options  and  275,760  warrants
outstanding to purchase common stock. As of February 28, 2006 there were 712,500
options and 59,960 warrants outstanding to purchase common stock.

STOCK-BASED COMPENSATION

EMPLOYEE STOCK OPTIONS:

On March 1, 2006 the Company  adopted the fair value  recognition  provisions of
SFAS  123R.  Prior to March 1,  2006,  the  Company  accounted  for  share-based
payments under the recognition and measurement provisions of APB 25, and related
Interpretations,  as  permitted  by SFAS  123.  In  accordance  with APB 25,  no
compensation  cost was required to be recognized for options granted that had an
exercise price equal to the market value of the  underlying  common stock on the
date of grant.

The Company adopted SFAS 123R using the modified prospective  transition method.
Under this transition  method,  compensation  cost for all share-based  payments
granted  subsequent  to March 1,  2006 is based  on the  grant-date  fair  value
estimated  in  accordance  with the  provisions  of SFAS 123R.  The  results for
periods prior to March 1, 2006 are not required to be restated.  During the nine
months ended  February 28, 2007, we did not issue options to purchase  shares of
common stock.

The following table  illustrates the effect on net income and earnings per share
if the Company had applied the fair value recognition provisions of SFAS No. 123
to stock-based employee compensation.

                                       11
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 1
  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES (CONTINUED)
--------------------------------------------------------------------------------

                                                       For the nine months ended
                                                            February 28, 2006
                                                       -------------------------
                                                               (Unaudited)

Net income, as reported                                       $   242,477
Deduct: Total stock-based employee compensation
        expense determined under fair value based
        method for all awards, net of related tax
        effects                                                  (366,926)
                                                              -----------

Pro forma net loss                                            $  (124,449)
                                                              ===========
INCOME (LOSS) PER SHARE:
   Basic, as reported                                         $      0.05
                                                              ===========

   Basic, pro forma                                           $     (0.02)
                                                              ===========
INCOME (LOSS) PER SHARE:
  Diluted, as reported                                        $      0.04
                                                              ===========

   Diluted, pro forma                                         $     (0.02)
                                                              ===========

The fair  value of option  grants is based on the Black  Scholes  option-pricing
model with the following weighted average assumptions:

Option issue dates            6/1/2005        9/8/2005        11/18/2005
                              --------        --------        ----------

Expected volatility            40.83%          35.86%           35.91%
Risk-free interest rate         3.91%           4.15%            4.50%
Expected dividends                --              --              --
Expected life                 10 Years        10 Years         10 Years
Option Value                   $3.13           $3.55            $4.72

NEW ACCOUNTING PRONOUNCEMENTS

In December 2004, the FASB revised  Statement of Financial  Accounting  Standard
No.  123  ("SFAS  123(R)"),  "Share-Based  Payment."  The SFAS  123(R)  revision
established  standards for the  accounting for  transactions  in which an entity
exchanges its equity  instruments for goods or services and focuses primarily on
accounting  for  transactions  in which an entity obtains  employee  services in
share-based payment transactions. It does not change the accounting guidance for
share-based payment  transactions with parties other than employees.  For public
entities  that file as small  business  issuers,  the  revisions to SFAS 123 are
effective as of the beginning of the first annual  reporting  period that begins
after December 15, 2005. See Note 1--Summary of Significant  Accounting Policies
and  Use of  Estimates  in the  accompanying  condensed  consolidated  financial
statements for disclosure  information regarding pro forma stock option expense.
The  adoption  of SFAS 123 (R) did not have a material  effect on our results of
operations or financial position.

                                       12
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 1
  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES (CONTINUED)
--------------------------------------------------------------------------------

In June 2006,  the FASB issued FASB  Interpretation  No. 48 ("FIN No. 48"),  "An
Interpretation  of FASB  Statement No. 109," which  clarifies the accounting for
uncertainty in income taxes  recognized in a company's  financial  statements in
accordance  with FASB  Statement No. 109,  "Accounting  for Income  Taxes." This
Interpretation  prescribes a recognition threshold and measurement attribute for
the financial  statement  recognition and measurement of a tax position taken or
expected  to be  taken  in a  tax  return.  FIN  No.  48  reflects  the  benefit
recognition approach,  where a tax benefit is recognized when it is "more likely
than not" to be sustained  based on the technical  merits of the position.  This
Interpretation  is effective for fiscal years beginning after December 15, 2006.
The Company is evaluating the impact of FIN No. 48 on its financial statements.

In September 2006, the Financial Accounting Standard Board issued a Statement of
Financial  Accounting Standard No. 157 ("SFAS 157"), "Fair Value  Measurements".
The Statement  defines fair value,  establishes  a framework for measuring  fair
value  in  generally   accepted   accounting   principles  (GAAP),  and  expands
disclosures  about fair value  measurements.  This  Statement is  effective  for
financial  statements issued for fiscal years beginning after November 15, 2007,
and interim  periods within those fiscal years.  The adoption of SFAS 157 is not
expected  to have a  material  affect on our  financial  position  or results of
operations.

In September  2006,  the FASB issued SFAS No. 158,  "Employer's  Accounting  for
Defined  Benefit Pension and Other  Postretirement  Plans - an amendment of FASB
Statements  No. 87, 88, 106, and 132(R)." SFAS No. 158 requires the  recognition
of the overfunded or  underfunded  status of defined  postretirement  plan as an
asset or liability on the Company's  balance  sheet,  with changes in the funded
status  recognized  through  comprehensive  income.  SFAS No. 158 also  requires
entities to measure the funded status of plans as of the year-end  balance sheet
date. We do not expect SFAS No. 158 will have a material effect on our financial
statements.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial Assets and Financial Liabilities".  This Statement permits entities to
choose to measure many  financial  instruments  and certain  other items at fair
value. An entity shall report unrealized gains and losses on items for which the
fair value  option has been  elected in  earnings at each  subsequent  reporting
date.  This statement is effective for the beginning of the fiscal year starting
after  November  15,  2007.  We do not expect  SFAS No. 159 will have a material
effect on our financial statements.

SEGMENT INFORMATION

In the past,  all  Company  operations  have  been  considered  as one  business
segment.  Management  is  currently  reviewing  its  operations  to determine if
separate segment  reporting is required.  If management  determines that certain
Company  operations  meet the criteria for  reporting as separate  segments this
will be incorporated into our financial statements as of May 31, 2007.

                                       13
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 2
                          INTANGIBLE ASSETS (CONTINUED)
--------------------------------------------------------------------------------

Based on our review of amounts  recorded  in prior  periods as  goodwill we have
reclassified  amounts  relating to the  acquisition of Cragar from "goodwill" to
"intangible  assets" on the balance  sheet as of February 28, 2007. As these are
non-wasting  assets with indefinite lives, there is no amortization to report in
the respective condensed consolidated financial statements.

The related Cragar goodwill balance as of May 31, 2006 has been  reclassified in
the accompanying condensed consolidated balance sheets to conform to the current
period presentation.  This reclassification had no effect on previously reported
net income or stockholders' equity.

The increase in  intangible  assets of $89,394 is  attributable  to amounts paid
related to the successful defense of Cragar trademarks.  As of February 28, 2007
and May 31, 2006, intangible assets were comprised of the following:

                                              February 28,            May 31,
                                                 2007                  2006
                                              -----------           -----------
                                              (Unaudited)

Trademarks                                    $ 3,650,580           $ 3,561,186
Covenant not to compete                            50,000                50,000
Franchising rights                                     --                75,000
                                              -----------           -----------
                                                3,700,580             3,686,186
Less:  accumulated amortization                   (48,475)             (113,671)
                                              -----------           -----------

                                              $ 3,652,105           $ 3,572,515
                                              ===========           ===========

As of  February  28,  2007  and May 31,  2006,  goodwill  was  comprised  of the
following:

                                               February 28,          May 31,
                                                  2007                2006
                                                ---------           ---------

Investment in ICC                               $ 622,500           $ 622,500
Less:  accumulated amortization                  (103,750)           (103,750)
                                                ---------           ---------

                                                $ 518,750           $ 518,750
                                                =========           =========

--------------------------------------------------------------------------------
                                     NOTE 3
                                     EQUITY
--------------------------------------------------------------------------------

During the nine months  ended  February 28,  2007,  we did not issue  options to
purchase shares of common stock.  During the nine months ended February 28, 2006
we  issued  options  to  purchase  156,477  shares of  common  stock to  various
directors and  employees.  Seventy  thousand  options  granted  during the prior

                                       14
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 3
                               EQUITY (CONTINUED)
--------------------------------------------------------------------------------

period had an exercise price of $5.40,  five thousand options granted during the
prior  period had an  exercise  price of $6.50,  and eighty  one  thousand  four
hundred  seventy seven options  granted  during the prior period had an exercise
price of $8.50.  All options  granted  during the nine months ended February 26,
2006 have a term of ten (10) years.

Effective  October 20, 2006, we issued 4,000 shares of restricted stock with two
year  vesting  terms to various  directors  as  compensation  for service on the
Board,  and 6,000 shares of restricted stock with one year vesting terms as part
of our  financial  consulting  agreement  with Miller  Capital  Corporation.  An
expense for these shares was recorded in the current  period,  prorated over the
vesting  period and based on the market  price of $5.05 per share as of February
28, 2007.

--------------------------------------------------------------------------------
                                     NOTE 4
                                 LINE OF CREDIT
--------------------------------------------------------------------------------

During the nine months  ended  February  28, 2007 we obtained an increase in our
revolving  line of credit from  $2,000,000 to  $3,000,000.  On November 19, 2006
this line of credit was  renewed and will mature on  November  19,  2007.  As of
February 28, 2007, we have no outstanding  balance on this credit  facility.  We
have a maximum borrowing capacity of $2,400,000 as a result of a $600,000 letter
of credit in favor of Sure Tec Insurance  Company for a performance  bond to the
City of Youngstown, OH. No amounts have been drawn upon this letter of credit to
date. The credit facility has been secured by substantially  all of our tangible
and intangible assets,  including  Cragar's trademark  portfolio and a pledge of
Cragar's capital stock.  This line of credit bears interest at a rate of 1% plus
prime. As of February 28, 2007, the applicable interest rate was 9.25%. In order
to continue  borrowing,  we must meet  certain  financial  covenants,  including
maintaining  a  minimum  current  ratio  (current  assets  compared  to  current
liabilities)  of  1.05  as  of  the  end  of  each  fiscal  quarter,  a  minimum
consolidated tangible net worth of $5,000,000,  as of the date of the amendment,
August  21,  2006,  and an  increase  in  tangible  net worth of at least 75% of
consolidated  net  income  plus  100%  of all  increases  of  equity  in  Global
(including  the amount of any stock  offering or issuance)  on each  anniversary
date of May 31 thereafter until maturity, and a ratio of funded debt to earnings
before interest,  taxes and depreciation and amortization of not more than 2.5:1
for each  quarter.  We must  maintain a zero  balance for a  consecutive  30 day
period  during the term of the  facility.  As of February 28,  2007,  management
believes we were in compliance with these covenants.

--------------------------------------------------------------------------------
                                     NOTE 5
                          COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------

As with all  entertainment  facilities  there  exists a degree  of risk that the
general public may be accidentally  injured.  As of February 28, 2007 there were
various claims  outstanding in this regard that management does not believe will
have a material  effect on the  financial  condition or results of operations of
the Company.  To mitigate this risk, we maintain  insurance  coverage,  which we
believe effectively covers any reasonably foreseeable potential liability. There
is  no  assurance  that  our  insurance   coverage  will  adequately  cover  all
liabilities to which we may be exposed.

Global was a plaintiff in a lawsuit filed against a current franchisee. The suit
asked for a ruling on the  interpretation  of the protected  territory clause of
the license agreement. Subsequent to our action, the franchisee filed a separate
claim for  unspecified  damages for alleged  breach of the  protected  territory
clause of the  licensing  agreement.  These  suits were filed in August 2005 and
settled in February 2007.  The settlement  included an amendment to the specific
franchisee's contract term and an amendment to the specific franchisee's renewal
fees.

                                       15
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 5
                    COMMITMENTS AND CONTINGENCIES (CONTINUED)
--------------------------------------------------------------------------------

Global was named as a defendant, along with the local municipality, in a lawsuit
filed by the family of an employee of the Dodge  Arena in  Hidalgo,  Texas.  The
suit alleged negligence against Global and asks for unspecified  damages related
to the death of the employee  resulting from an accident at the arena. This suit
was settled in January 2007 resulting in no liability to Global.

Global is a defendant in a lawsuit filed by Nustadia  Developments  Inc. and PBK
Architects.  The suit  arises out of certain  contracts  between  Global and the
plaintiffs,  pursuant to which  Global  agreed to use  architectural  design and
development  management services of the plaintiffs with respect to certain arena
development  projects.  The suit asks for direct damages of $4,500,000 and other
unspecified damages for alleged breach of contract,  tortious  interference with
business  expectancy,  and  breach of  implied  covenant  of good faith and fair
dealing.  This suit was filed in  December  2005 and is pending in the  Maricopa
County Superior Court of Arizona.  Although the outcome of this matter cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to  vigorously  defend this action.  As such, no liability has
been recorded at February 28, 2007 related to this matter.

Global is a third-party  co-defendant in a lawsuit filed by the City of Hidalgo,
Texas against  Eduardo Vela and PBK  Architects,  Inc.  (City of Hidalgo,  Texas
Municipal  Facilities  Corp, v. Eduardo Vela and PBK Architects)  related to the
design and  construction of the Dodge Arena in Hidalgo,  Texas. The City alleges
that PBK is liable for misrepresentations and negligence related to PBK's design
plans,  construction  oversight and general  administration of the project.  The
suit was filed on October 25, 2004 and is pending in the 389th Judicial District
Court of Hidalgo  County,  Texas.  Global became a party to Hidalgo v. Vela when
defendant  PBK filed a third  party  petition on March 31,  2006  claiming  that
Global owed PBK  contribution  for plaintiff's  claims.  Although the outcome of
this matter cannot be predicted  with  certainty,  we believe that we have valid
defenses to the alleged claims and intend to vigorously  defend this action.  As
such, no liability has been recorded at February 28,2007 related to this matter.

Global  is a  plaintiff  and a  counter-defendant  in a  lawsuit  involving  its
franchisee  Blue Line Hockey,  LLC ("Blue Line"),  which operates the Youngstown
Steelhounds.  Global's claim is for  approximately  $115,000 in unpaid franchise
and assessment  fees owed by Blue Line,  plus our attorneys'  fees.  Blue Line's
counterclaim alleges that the WPHL fraudulently induced Blue Line's principal to
enter the  license  agreement  by failing to comply  with  franchise  disclosure
requirements,  and that the WPHL made fraudulent  representations to induce Blue
Line into signing the  franchise  agreement.  Blue Line seeks  rescission of the
license  agreement,  reimbursement  of its franchise fee, and  reimbursement  of
travel  expenses for the 2005-2006  season.  Although the outcome of this matter
cannot be predicted  with  certainty,  we believe that we have both valid claims
and valid defenses to the counterclaims. Thus, we intend to vigorously prosecute
our claims and defend the  counterclaims.  No  liability  has been  recorded  at
February 28, 2007 related to this matter.

Pursuant to the joint operating  agreement between the CHL and the WPHL, the CHL
has an option to purchase all of the WPHL's interests and rights related to WPHL
teams  operating  under  the joint  operating  agreement,  and any other  hockey
related  assets of the WPHL.  Although our strategy is to increase  revenue from
our arena  development and marketing and licensing  businesses,  the exercise of
this  option by the CHL would  require us to enter an  agreement  not to compete
with the CHL for a period of five years,  and eliminate a current primary source
of revenue.  The earliest such a transaction  could occur would be at the end of
the 2011 fiscal year.

The Company has entered into contracts  with the  facilities in Rio Rancho,  New
Mexico,  Youngstown,  Ohio and Prescott Valley,  Arizona which guarantee certain
economic performance  standards.  Based on our current performance  estimates of
these  facilities,  we believe the amount of payments under these  guarantees is
negligible, and, as such, have recorded no value to these guarantees at February
28, 2007.

                                       16
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 5
                    COMMITMENTS AND CONTINGENCIES (CONTINUED)
--------------------------------------------------------------------------------

As of February  28, 2007 we have  provided a secondary  guarantee on a letter of
credit in favor of Ace  Insurance  Company for  $860,000  related to a guarantee
under  a  workers  compensation   program.   This  letter  of  credit  is  fully
collateralized  by a third party and our  secondary  guarantee of this letter of
credit  does not  affect our  borrowing  capacity  under our line of credit.  No
amounts have been drawn on this letter of credit as of February 28, 2007.

--------------------------------------------------------------------------------
                                     NOTE 6
                                  JOINT VENTURE
--------------------------------------------------------------------------------

During  the fiscal  year ended May 31,  2006,  we entered  into a joint  venture
partnership  agreement with Prescott Valley Signature  Entertainment,  LLC. This
joint venture was formed to engage in the business of developing,  managing, and
leasing the Prescott  Valley Events Center in Prescott  Valley,  Arizona through
the  Pre-Annexation  Development  Agreement  with the Town of  Prescott  Valley.
Global is the managing  member of Prescott  Valley Events  Center,  LLC ("PVEC")
(the joint venture  entity) and is responsible  for the planning,  promotion and
fulfillment  of the  joint  venture  operations.  We  plan  to  account  for our
investment in PVEC, by the equity  method.  Our interest in this entity is not a
controlling  one, as we do not own a majority voting interest and as our ability
to affect the business  operations is  significantly  limited by the partnership
operating  agreement.   The  PVEC  operating  agreement  also  provides  that  a
majority-in-interest  of the members may replace the managing member,  or if the
managing member is in default, a  majority-in-interest  of the remaining members
may replace the managing member.

Each member paid $1,000 for a 50%  interest in the joint  venture.  We will also
contribute  $250,000  as  preferred  capital  while  Prescott  Valley  Signature
Entertainment,  LLC contributed land with an approximate  value of $1,500,000 as
preferred  capital.  Each member will receive a 5% return on  preferred  capital
contributions  and will  share  equally  in the  gain or loss of PVEC.  If funds
available to PVEC are  insufficient  to fund  operations  or  construction,  the
members  agree  to  contribute  100% of the  cash  needed  until  each  member's
preferred  capital account  balances are equal and 50% of the cash needed if its
preferred  capital  contribution  balances  are equal.  Upon  completion  of the
Prescott Valley Events Center the Company has a limited contingent liability for
the debt service  payments on the  facility.  In the event of any  shortfalls in
debt service payments, amounts will first be paid by third party escrow accounts
funded by 2% of the  Transaction  Privilege Tax collected  from the  surrounding
project area and from a lockbox account containing 1) an initial contribution by
PVEC of $250,000,  2) $100,000 per year (increasing  annually by inflation) from
the Town of Prescott Valley and 3) retained  earnings from the arena operations.
The maximum  potential future payments required under this guarantee are limited
to our annual management fee of approximately  $250,000. As of February 28, 2007
we believe the amount of payments  under this  guarantee is  negligible  and, as
such, have recorded no value to the guarantee.

We did not earn income or incur any losses  from PVEC for the nine months  ended
February 28, 2007.

During the fiscal  year ended May 31, 2006 we  purchased a liquor  license to be
used in the operations of the Prescott  Valley Events Center.  This license will
be  contributed to the PVEC and as such is classified on our balance sheet under
"Miscellaneous Assets" as of February 28, 2007.

                                       17
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD-LOOKING DISCLOSURE

This  Quarterly  Report on Form  10-QSB  contains  "forward-looking  statements"
within the meaning of the "Safe  Harbor"  provision  of the  Private  Securities
Litigation  Reform Act of 1995  regarding  future events,  including  statements
concerning our future operating  results and financial  condition and our future
capital needs and sources.  These statements are based on current  expectations,
estimates,  forecasts,  and projections as well as our beliefs and  assumptions.
Words  such as  "outlook",  "believes",  "expects",  "appears",  "may",  "will",
"should",  "anticipates" or the negatives thereof or comparable terminology, are
intended to identify  such  forward-looking  statements.  These  forward-looking
statements  are only  predictions  and are subject to risks,  uncertainties  and
assumptions that are difficult to predict.  Therefore, actual results may differ
materially and adversely from those expressed in any forward-looking statements.
Factors that might cause or contribute to such differences  include, but are not
limited to those  discussed  in our Annual  Report on Form 10-KSB for the fiscal
year ended May 31, 2006 under the section entitled "Management's  Discussion and
Analysis--Factors  That May Affect  Future  Results." You should not place undue
reliance on these forward-looking statements, which speak only as of the date of
this Quarterly  Report.  We undertake no obligation to revise or update publicly
any forward-looking statements for any reason, unless otherwise required by law.

GENERAL

The following is  management's  discussion  and analysis of certain  significant
factors  affecting  our  financial  position and  operating  results  during the
periods  included  in  the   accompanying   condensed   consolidated   financial
statements.

OVERVIEW - COMPANY DESCRIPTION

Global Entertainment  Corporation (referred to in this quarterly report as "we,"
"us," "Global" or "GEC") is an integrated event and  entertainment  company that
is engaged,  through its seven wholly owned subsidiaries,  in sports management,
multipurpose  events  center and related real estate  development,  facility and
venue  management and marketing,  venue  ticketing and brand  licensing.  We are
primarily focused on projects located in mid-size communities.

Our seven  subsidiaries are Western  Professional  Hockey League,  International
Coliseums Company,  Global Entertainment  Marketing Systems,  Cragar Industries,
Global  Entertainment   Ticketing,   Encore  Facility  Management,   and  Global
Properties I.

Pursuant to a joint  operating  agreement  between us and Central Hockey League,
Inc.,  Western   Professional   Hockey  League  operates  and  manages  a  minor
professional hockey league known as the Central Hockey League (the "CHL"), which
currently consists of 18 teams located in mid-market  communities throughout the
Central and Western regions of the United States.

International  Coliseums  Company,  Inc.  ("ICC") develops  multipurpose  events
centers in mid-market  communities.  ICC's  development of  multipurpose  events
centers promotes the development of the CHL by assisting  potential  franchisees
in securing  quality  venues in which to play minor  professional  hockey league
games.  The  inter-relationship  between  ICC and  WPHL is a key  factor  in the
viability of a managed multipurpose entertainment facility.

Global Entertainment  Marketing Systems ("GEMS"),  promotes,  markets, and sells
various services related to multipurpose entertainment facilities, including all
contractually  obligated  income ("COI") sources such as facility naming rights,
luxury suite sales, club seat license sales,  facility  sponsorship  agreements,
and ticket operations contracts.

In March 2004, we completed a merger with Cragar Industries, Inc., a licensor of
a well-known automotive  aftermarket wheel trademark and brand - CRAGAR(R).  Our
expertise  gained  through the operation  and  management of the CHL and related
activities  blends with the  development  of additional  licensing and marketing
opportunities for CRAGAR(R) branded products.

                                       18
<PAGE>
In June 2004, we formed Global Entertainment Ticketing, Inc. ("GETTIX"), a third
party  provider  of  ticketing  services  for  the  multipurpose  event  centers
developed by ICC,  existing CHL  franchisees,  and various  other  entertainment
venues,  theatres,  concert halls, and other facilities and event  coordinators.
GETTIX provides a full in-house ticketing solution by way of box office,  phone,
internet and print-at-home  service that utilizes  distribution  outlets in each
market. GETTIX uses state-of-the-art  software to deliver ticketing capabilities
that include  database  flexibility,  easy season and group  options,  financial
reporting and full marketing resources.

In February  2006, we formed Encore  Facility  Management  ("Encore"),  a single
source management entity that provides a full complement of multipurpose  events
center operational services.  These services provide administrative oversight in
the areas of  facility/property  management  and  finance,  sales and  marketing
(through GEMS), arena/event ticketing (through GETTIX), event bookings, and food
and  beverage.  Encore is  currently  involved  with  facility  management  of a
multipurpose events center developed by ICC. Facility management  operations are
conducted under separate limited liability companies established by the Company.

During the nine months  ended  February  28, 2007 we began  operations  of a new
entity,  Global  Properties  I.  This  entity  will work in  targeted  mid-sized
communities  across the United  States  promoting  our  services  related to the
development of multipurpose events centers and surrounding multi-use real estate
development.

OVERVIEW - OPERATIONS

During the three months ended February 28, 2007 the Company  incurred a net loss
of $303,828 primarily  attributable to legal fees associated with the settlement
of a legal  claim,  expenses  associated  with the launch of our Cragar  Edition
vehicle  kits,  and  startup and  operations  of our newest  subsidiary,  Global
Properties I. These expenses were partially offset, primarily by results related
to GETTIX ticketing services.

ICC  completed  its project  management  duties in November  with the opening of
three new events centers.  These projects include:  1) the Santa Ana Star Center
in Rio Rancho,  New Mexico; 2) Tim's Toyota Center in Prescott Valley,  Arizona;
and 3) the  Broomfield  Event  Center  in  Broomfield,  Colorado.  Each of these
facilities will continue providing the Company with additional revenue in future
periods.  CHL hockey teams began play in the 2006/2007 season and serve as major
tenants  in each of the  facilities.  In both the Rio  Rancho,  New  Mexico  and
Prescott Valley,  Arizona locations Encore provides facility management,  GETTIX
provides ticketing services, and GEMS provides sales and marketing services. ICC
is  currently   performing  project  management   services  for  an  events  and
entertainment center in Wenatchee, Washington. Upon completion of this facility,
Encore will provide facility management services and GEMS will provide sales and
marketing services.

Cragar began selling its new Special Edition vehicle kits and components through
new car dealerships during the second fiscal quarter.  We continued investing in
this new program during the current fiscal quarter  including  additional  sales
and administrative staff and participating in various promotional events.

CRITICAL ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS

Significant  accounting  policies  are  described  in the  audited  consolidated
financial  statements and notes thereto  included in the Company's Annual Report
on Form 10-KSB for the year ended May 31,  2006.  We believe  our most  critical
accounting policies and estimates relate to revenue  recognition,  the allowance
for doubtful accounts,  facility management  performance guarantee  liabilities,
and the carrying value of goodwill and intellectual property.

Revenues from assessment  fees are recognized  ratably over the year in relation
to expenses  incurred.  Revenues from initial franchise fees are recognized when
the  franchise  agreement  is  signed  and we have  met  all of our  significant
obligations under the terms of the franchise  agreement.  Revenues from transfer
franchise  fees are recognized  upon approval of the  transaction by the league.
Project management and facility  management revenues are recognized ratably over
the  respective  contract  life,  as is  the  revenue  from  most  contractually
obligated and sales contract revenues.  Revenues generated from ticket sales are
recognized upon completion of the sale.

                                       19
<PAGE>
The allowance for doubtful accounts is based on specific credit  information and
historical  collection  experience.  Actual  collection  experience may not meet
expectations and may result in increased delinquencies.

Estimates of liability relating to facility  management  performance  guarantees
are based on current facility performance estimates. Actual facility performance
may not meet expectations and may result in additional liability.

The carrying value of goodwill and trademarks  includes estimates of future cash
flows from operations and is dependent on projections that may not materialize.

NINE MONTHS ENDED  FEBRUARY 28, 2007 COMPARED TO NINE MONTHS ENDED  FEBRUARY 28,
2006

REVENUES:

<TABLE>
<CAPTION>
                                     Nine months                 Nine months                    Dollar         Percent
                                        ended       Percent of      ended      Percent of       Change          Change
                                     February 28,     2007       February 28,     2006       Between 2006    Between 2006
                                        2007         Revenue        2006        Revenue        and 2007        and 2007
                                     ----------     -------      ------------   -------        --------        --------
<S>                                  <C>              <C>         <C>             <C>         <C>             <C>
Revenue
  Project management fees           $13,162,350       59.5%      $ 6,387,092      58.0%       $  6,775,258      106.1%
  Facility management fees            3,145,544       14.2%        1,203,067      10.9%          1,942,477      161.5%
  Licensing and advertising fees      2,714,398       12.3%        2,054,121      18.7%            660,277       32.1%
  Ticket Service Fees                 2,990,552       13.5%        1,203,204      10.9%          1,787,348      148.5%
  Franchise fees                        115,000        0.5%          150,000       1.4%            (35,000)     -23.3%
  Other revenue                          10,879        0.0%            7,392       0.1%              3,487       47.2%
                                    -----------      -----       -----------     -----        ------------      -----
Total                               $22,138,723      100.0%      $11,004,876     100.0%       $ 11,133,847      101.2%
                                    ===========      =====       ===========     =====        ============      =====
</TABLE>

Total revenues increased  $11,133,847,  or 101.2%, from $11,004,876 for the nine
months ended February 28, 2006 to $22,138,723 for the nine months ended February
28, 2007.  This  increase  was  generated  primarily  by ICC project  management
revenues which realized an increase of $6,775,258  from  $6,387,092 for the nine
months ended February 28, 2006 to $13,162,350 for the nine months ended February
28,  2007.  This  increase  resulted  as  ICC  construction  project  management
agreements  were  in  the  final  stages  generating  more  revenue  related  to
furniture,  fixtures and  equipment  paid on behalf of the project  owners.  The
related  revenue  and expense for these  amounts  are  recognized  in the period
incurred. Project management revenues represented 59.5% of our total revenue for
the nine months ended February 28, 2007,  compared to 58.0% of our total revenue
for the nine months ended February 28, 2006.

Facility management revenue increased  $1,942,477,  from $1,203,067 for the nine
months ended  February 28, 2006 to $3,145,544 for the nine months ended February
28, 2007. This increase occurred primarily as a result of the opening of two new
facilities. Encore's current facility management contracts include the Chevrolet
Center in  Youngstown,  Ohio,  the Santa  Anna Star  Center in Rio  Rancho,  New
Mexico, and Tim's Toyota Center in Prescott Valley,  Arizona. Encore principally
manages employees under each of its current facility  management  contracts and,
therefore, payroll costs from such employees are recognized by Encore as revenue
and are included in "Cost of revenues".

Licensing and advertising  fees increased  $660,277 from $2,054,121 for the nine
months ended  February 28, 2006 to $2,714,398 for the nine months ended February
28, 2007.  This 32.1% increase  resulted  primarily from 1) increased GEMS sales
and marketing  revenue  relating to the two new  facilities  in Rio Rancho,  New
Mexico and Prescott Valley, Arizona and 2) increased CHL revenues resulting from
two new hockey  franchise  teams in  Broomfield  Colorado and  Prescott  Valley,
Arizona as well as licensing fees received from hockey equipment suppliers.

Ticket service fees  increased  $1,787,348  from  $1,203,204 for the nine months
ended  February 28, 2006 to  $2,990,552  for the nine months ended  February 28,
2007. This 148.5%  increase in ticket service fees occurred  primarily as GETTIX

                                       20
<PAGE>
began ticketing  operations at two new facilities in Rio Rancho,  New Mexico and
Prescott Valley, Arizona.

Franchise fee revenue in both periods  represents  amounts charged for franchise
transfers.

OPERATING COSTS:

<TABLE>
<CAPTION>
                                       Nine months                 Nine months                    Dollar         Percent
                                          ended       Percent of      ended      Percent of       Change          Change
                                       February 28,     2007       February 28,     2006       Between 2006    Between 2006
                                          2007         Revenue        2006        Revenue        and 2007        and 2007
                                       ----------     -------      ------------   -------        --------        --------
<S>                                    <C>              <C>         <C>             <C>         <C>             <C>
Operating Costs
  Cost of revenues                     $16,979,203      76.7%      $ 6,530,595     59.4%       $10,448,608        160.0%
  General and administrative costs       6,500,360      29.4%        4,239,186     38.5%         2,261,174         53.3%
                                       -----------     -----       -----------     ----        -----------        -----
Total                                  $23,479,563     106.1%      $10,769,781     97.9%       $12,709,782        118.0%
                                       ===========     =====       ===========     ====        ===========        =====
</TABLE>

Total operating costs increased by $12,709,782,  or 118.0%, from $10,769,781 for
the nine months ended February 28, 2006 to $23,479,563 for the nine months ended
February 28, 2007.

Cost of revenue  increased by  $10,448,608,  or 160.0%,  from $6,530,595 for the
nine months  ended  February 28, 2006 to  $16,979,203  for the nine months ended
February 28, 2007. This increase resulted primarily from 1) two ICC construction
project  management  agreements were in the final stages during the prior fiscal
quarter,  creating  more expenses  related to furniture,  fixtures and equipment
paid on behalf of the  project  owners 2) an  increase  in  facility  management
payroll and other costs  associated  with the  facilities in  Youngstown,  Ohio,
Prescott  Valley,  Arizona,  and Rio Rancho,  New Mexico,  and 3) an increase in
ticket service fees as a result of an increase in ticket service revenues.

General  and  administrative  expenses  increased  $2,261,174,  or  53.3%,  from
$4,239,186  for the nine months ended  February 28, 2006 to  $6,500,360  for the
nine months ended  February 28, 2007.  During the nine months ended February 28,
2007,  legal  fees  related  to a claim  settled  in the third  quarter  totaled
approximately $344,000. The increase in general and administrative expenses also
relates to costs for additional  staffing and overhead expenses  associated with
the startup operations of Global Properties I, increased legal fees,  additional
staffing and overhead  expenses  associated with the growth of Encore's facility
management  operations,  additional sales and administrative  staff and expanded
development and marketing efforts related to Cragar, and continued  expansion of
GETTIX ticketing operations.

NET INCOME:

<TABLE>
<CAPTION>
                                       Nine months                 Nine months                    Dollar         Percent
                                          ended       Percent of      ended      Percent of       Change          Change
                                       February 28,     2007       February 28,     2006       Between 2006    Between 2006
                                          2007         Revenue        2006        Revenue        and 2007        and 2007
                                       ----------     -------      ------------   -------        --------        --------
<S>                                    <C>              <C>         <C>             <C>         <C>             <C>
Net income (loss)                     $(1,124,962)     -5.1%        $ 242,477       2.2%       $(1,367,439)      -563.9%
                                      ===========       ===         =========       ===        ===========        =====
</TABLE>

Net loss was $1,124,962 for the nine months ended February 28, 2007, compared to
net income of $242,477 for the nine months ended February 28, 2006. Net loss for
the current period  includes legal costs related to the settlement of a claim of
approximately $344,000. Excluding the legal costs related to this claim, our net

                                       21
<PAGE>
loss would have been  approximately  $781,000.  The current  period loss is also
attributable to a negotiated  payment related to the favorable  restructuring of
the Company's  management  compensation  at an events  center,  costs related to
sales and  administrative  staff and development and marketing costs  associated
with the expansion of Cragar  operations as well as start-up and operating costs
for our newest subsidiary, Global Properties I.

THREE MONTHS ENDED FEBRUARY 28, 2007 COMPARED TO THREE MONTHS ENDED FEBRUARY 28,
2006

REVENUES:

<TABLE>
<CAPTION>
                                     Three months                Three months                   Dollar         Percent
                                        ended       Percent of      ended      Percent of       Change          Change
                                     February 28,      2007      February 28,     2006       Between 2006    Between 2006
                                        2007         Revenue        2006        Revenue        and 2007        and 2007
                                     ----------      -------     ------------   -------        --------        --------
<S>                                  <C>              <C>         <C>             <C>         <C>             <C>
Revenue
  Project management fees            $1,860,334       32.9%       $  794,366      27.7%      $ 1,065,968         134.2%
  Facility management fees            1,645,197       29.1%          630,588      22.0%        1,014,609         160.9%
  Licensing and advertising fees        959,990       17.0%          719,194      25.1%          240,796          33.5%
  Ticket Service Fees                 1,180,088       20.9%          666,356      23.2%          513,732          77.1%
  Other revenue                           8,173        0.1%            5,702       0.2%            2,471          43.3%
  Franchise fees                             --        0.0%           50,000       1.7%          (50,000)       -100.0%
                                     ----------      -----        ----------     -----       -----------         -----
Total                                $5,653,782      100.0%       $2,866,206     100.0%      $ 2,787,576          97.3%
                                     ==========      =====        ==========     =====       ===========         =====
</TABLE>

Total revenues increased $2,787,576,  from $2,866,206 for the three months ended
February 28, 2006 to $5,653,782 for the three months ended February 28, 2007.

Project  management  revenues  increased  $1,065,968 from $794,366 for the three
months ended February 28, 2006 to $1,860,334 for the three months ended February
28,  2007.  This  increase  resulted  as  ICC  construction  project  management
agreements  were in the final stages creating more revenue related to furniture,
fixtures and equipment paid on behalf of the project owners. The related revenue
and expense for these  amounts are  recognized in the period  incurred.  Project
management  revenues  represent  32.9% of our total revenue for the three months
ended  February 28, 2007,  compared to 27.7% of our total  revenue for the three
months ended February 28, 2006.

Facility  management  revenues increased  $1,014,609 from $630,588 for the three
months ended February 28, 2006 to $1,645,197 for the three months ended February
28, 2007.  This increase  occurred as Encore was managing three buildings in the
current period compared to two buildings in the prior period. Encore principally
manages employees under each of its current facility  management  contracts and,
therefore, payroll costs from such employees are recognized by Encore as revenue
and are included in "Cost of  revenues".  During the current  period Encore also
received revenue related to facility pre-opening management services and revenue
related to promoting various events at its managed facilities.

Licensing and advertising fees increased  $240,796,  or 33.5%, from $719,194 for
the three months ended  February 28, 2006 to $959,990 for the three months ended
February 28, 2007.  This increase  resulted  primarily from increased GEMS sales
and marketing  revenue  relating to the two new  facilities  in Rio Rancho,  New
Mexico and Prescott  Valley,  Arizona and increased CHL revenues  resulting from
two new CHL franchise teams in Broomfield Colorado and Prescott Valley, Arizona.

Ticket  service fees increased  77.1%,  from $666,356 for the three months ended
February 28, 2006 to  $1,180,088  for the three months ended  February 28, 2007.
This increase in ticket  service fees occurred as GETTIX has entered  additional
ticketing contracts since the prior period, including ticketing of facilities in
Rio Rancho, New Mexico and Prescott Valley, Arizona.

Franchise  fee revenue for the three months ended  February 28, 2006  represents
amounts charged for franchise transfers.  No franchise transfers occurred in the
current period.

                                       22
<PAGE>
<TABLE>
<CAPTION>
                                       Three months                Three months                   Dollar         Percent
                                          ended       Percent of      ended      Percent of       Change          Change
                                       February 28,      2007      February 28,     2006       Between 2006    Between 2006
                                          2007         Revenue        2006        Revenue        and 2007        and 2007
                                       ----------      -------     ------------   -------        --------        --------
<S>                                    <C>              <C>         <C>             <C>         <C>             <C>
Operating Costs
  Cost of revenues                     $3,819,431       67.6%       $1,363,268     47.6%        $2,456,163        180.2%
  General and administrative costs      2,213,978       39.2%        1,462,748     51.0%           751,230         51.4%
                                       ----------      -----        ----------     ----         ----------        -----
Total                                  $6,033,409      106.7%       $2,826,016     98.6%        $3,207,393        113.5%
                                       ==========      =====        ==========     ====         ==========        =====
</TABLE>

Total operating costs  increased by $3,207,393,  or 113.5%,  from $2,826,016 for
the three months  ended  February  28, 2006 to  $6,033,409  for the three months
ended February 28, 2007.

Cost of revenue  increased by $2,456,163,  or 180.2%, to $3,819431 for the three
months ended  February 28, 2007 compared to the three months ended  February 28,
2006.  This increase  resulted  primarily from 1) two ICC  construction  project
management  agreements  were in the  final  stages  during  the  current  fiscal
quarter,  creating  more expenses  related to furniture,  fixtures and equipment
paid on behalf of the project owners 2) an increase in facility management costs
associated the facilities in Youngstown, Ohio, Prescott Valley, Arizona, and Rio
Rancho,  New Mexico, and 3) an increase in ticket service fees as a result of an
increase in ticket service revenues.

General and administrative costs increased $751,230, or 51.4%, to $2,213,978 for
the three months ended February 28, 2007. During the current quarter the Company
incurred  legal  costs  related to the  settlement  of a claim of  approximately
$271,000.  The  remaining  increase  relates to costs for  staffing and overhead
expenses  associated with the startup and operations of Global Properties I, the
expansion  of  Encore's  facility  management   operations,   costs  related  to
additional sales and administrative staff for expanded development and marketing
efforts  related  to  Cragar,  and  continued   expansion  of  GETTIX  ticketing
operations.

NET INCOME:

<TABLE>
<CAPTION>
                       Three months                Three months                   Dollar         Percent
                          ended       Percent of      ended      Percent of       Change          Change
                       February 28,      2007      February 28,     2006       Between 2006    Between 2006
                          2007         Revenue        2006        Revenue        and 2007        and 2007
                       ----------      -------     ------------   -------        --------        --------
<S>                    <C>              <C>         <C>             <C>         <C>             <C>
Net income (loss)      $ (303,828)      -5.4%        $ 95,867       3.3%        $ (399,695)       -416.9%
                       ==========        ===         ========       ===         ==========         =====
</TABLE>

Net loss was $303,828 for the three months ended February 28, 2007,  compared to
a net income of $95,867 for the three months ended  February 28, 2006.  Net loss
in the current quarter includes legal costs related to the settlement of a claim
of approximately $271,000. Excluding the legal costs associated with this claim,
our net loss would have been approximately $33,000. Other factors related to the
current  period  net loss  include  expenses  associated  with the launch of our
Cragar Edition vehicle kits and related  products  startup and operations of our
newest  subsidiary,  Global Properties I. These amounts were partially offset by
results related to GETTIX ticketing services,  ICC project management  services,
GEMS sales and marketing services, and CHL hockey operations.

LIQUIDITY AND CAPITAL RESOURCES

Cash used by operating  activities  for the nine months ended  February 28, 2007
was $105,472  compared to cash provided by operating  activities of $400,495 for
the nine months  ended  February  28, 2006.  This  decrease in cash  provided by
operations,  which relates  primarily to the current period net operating  loss,

                                       23
<PAGE>
and a decrease in accounts receivable, as a result of the timing of collections,
is partially  offset by an increase in accrued  liabilities,  as a result of the
timing of vendor payments.

A significant  source of operating capital during the nine months ended February
28,  2007 was from GETTIX  ticket  service  fees,  CHL league  assessments,  and
project  management  fees from ICC.  Since  project  management  fees and ticket
service fees are not regularly recurring and are difficult to predict,  there is
no assurance  that we will be able to increase or sustain our operating  capital
through these or other sources.

Cash used in  investing  activities  totaled  $196,715 for the nine months ended
February 28, 2007  compared to $116,084  for the nine months ended  February 28,
2006.  The use of  funds  in both  periods  includes  the  purchase  of  capital
equipment  related to the  expansion of Cragar  branded  products and  equipment
related to the expanded GETTIX ticketing  operations.  In addition,  the current
nine month period  includes  approximately  $89,000 of cash used in successfully
defending Cragar trademarks.

During the nine  months  ended  February  28, 2007 cash  provided  by  financing
activities relates to the exercise of options to purchase common stock.

During the nine months  ended  February  28, 2007 we obtained an increase in our
revolving  line of credit from  $2,000,000 to  $3,000,000.  On November 19, 2006
this line of credit was  renewed and will mature on  November  19,  2007.  As of
February 28, 2007, we have no outstanding  balance on this credit  facility.  We
have a maximum borrowing capacity of $2,400,000 as a result of a $600,000 letter
of credit in favor of Sure Tec Insurance  Company for a performance  bond to the
City of Youngstown, OH. No amounts have been drawn upon this letter of credit to
date. The credit facility has been secured by substantially  all of our tangible
and intangible assets,  including  Cragar's trademark  portfolio and a pledge of
Cragar's capital stock.  This line of credit bears interest at a rate of 1% plus
prime. As of February 28, 2007, the applicable interest rate was 9.25%. In order
to continue  borrowing,  we must meet  certain  financial  covenants,  including
maintaining  a  minimum  current  ratio  (current  assets  compared  to  current
liabilities)  of  1.05  as  of  the  end  of  each  fiscal  quarter,  a  minimum
consolidated tangible net worth of $5,000,000,  as of the date of the amendment,
August  21,  2006,  and an  increase  in  tangible  net worth of at least 75% of
consolidated  net  income  plus  100%  of all  increases  of  equity  in  Global
(including  the amount of any stock  offering or issuance)  on each  anniversary
date of May 31 thereafter until maturity, and a ratio of funded debt to earnings
before interest,  taxes and depreciation and amortization of not more than 2.5:1
for each  quarter.  We must  maintain a zero  balance for a  consecutive  30 day
period  during the term of the  facility.  As of February 28,  2007,  management
believes we were in compliance with these covenants.

SEASONALITY

We experience some  seasonality in our cash flows from assessment fees, and must
budget our cash flow  accordingly.  Approximately 75% of our assessment fees are
received prior to the start of the CHL hockey season in October of each year.

INFLATION

We do not  believe  that  inflation  has been a  material  factor  in our  prior
operations,  nor do we  anticipate  that  general  price  inflation  will have a
significant impact on our operations in the near future.

NEW ACCOUNTING PRONOUNCEMENTS

In December 2004, the FASB revised  Statement of Financial  Accounting  Standard
No.  123  ("SFAS  123(R)"),  "Share-Based  Payment."  The SFAS  123(R)  revision
established  standards for the  accounting for  transactions  in which an entity
exchanges its equity  instruments for goods or services and focuses primarily on
accounting  for  transactions  in which an entity obtains  employee  services in
share-based payment transactions. It does not change the accounting guidance for
share-based payment  transactions with parties other than employees.  For public
entities  that file as small  business  issuers,  the  revisions to SFAS 123 are
effective as of the beginning of the first annual  reporting  period that begins
after December 15, 2005. See Note 1--Summary of Significant  Accounting Policies
and  Use of  Estimates  in the  accompanying  condensed  consolidated  financial
statements for disclosure  information regarding pro forma stock option expense.
The  adoption  of SFAS 123 (R) did not have a material  effect on our results of
operations or financial position.

                                       24
<PAGE>
In June 2006,  the FASB issued FASB  Interpretation  No. 48 ("FIN No. 48"),  "An
Interpretation  of FASB  Statement No. 109," which  clarifies the accounting for
uncertainty in income taxes  recognized in a company's  financial  statements in
accordance  with FASB  Statement No. 109,  "Accounting  for Income  Taxes." This
Interpretation  prescribes a recognition threshold and measurement attribute for
the financial  statement  recognition and measurement of a tax position taken or
expected  to be  taken  in a  tax  return.  FIN  No.  48  reflects  the  benefit
recognition approach,  where a tax benefit is recognized when it is "more likely
than not" to be sustained  based on the technical  merits of the position.  This
Interpretation  is effective for fiscal years beginning after December 15, 2006.
The Company is evaluating the impact of FIN No. 48 on its financial statements.

In September 2006, the Financial Accounting Standard Board issued a Statement of
Financial  Accounting Standard No. 157 ("SFAS 157"), "Fair Value  Measurements".
The Statement  defines fair value,  establishes  a framework for measuring  fair
value  in  generally   accepted   accounting   principles  (GAAP),  and  expands
disclosures  about fair value  measurements.  This  Statement is  effective  for
financial  statements issued for fiscal years beginning after November 15, 2007,
and interim  periods within those fiscal years.  The adoption of SFAS 157 is not
expected  to have a  material  affect on our  financial  position  or results of
operations.

In September  2006,  the FASB issued SFAS No. 158,  "Employer's  Accounting  for
Defined  Benefit Pension and Other  Postretirement  Plans - an amendment of FASB
Statements  No. 87, 88, 106, and 132(R)." SFAS No. 158 requires the  recognition
of the overfunded or  underfunded  status of defined  postretirement  plan as an
asset or liability on the Company's  balance  sheet,  with changes in the funded
status  recognized  through  comprehensive  income.  SFAS No. 158 also  requires
entities to measure the funded status of plans as of the year-end  balance sheet
date. We do not expect SFAS No. 158 will have a material effect on our financial
statements.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial Assets and Financial Liabilities".  This Statement permits entities to
choose to measure many  financial  instruments  and certain  other items at fair
value. An entity shall report unrealized gains and losses on items for which the
fair value  option has been  elected in  earnings at each  subsequent  reporting
date.  This statement is effective for the beginning of the fiscal year starting
after  November  15,  2007.  We do not expect  SFAS No. 159 will have a material
effect on our financial statements.

ITEM 3. CONTROLS AND PROCEDURES

Under the supervision and with the  participation  of our management,  including
the Chief Executive Officer and Chief Financial  Officer,  we have evaluated the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  pursuant to Exchange Act Rule  13a-14(c) as of the end of the period
covered by this report.  Based on that evaluation,  the Chief Executive  Officer
and Chief Financial  Officer have concluded that these  disclosure  controls and
procedures were effective as of the end of such period. There were no changes in
our internal control over financial  reporting during the quarter ended February
28, 2007 that have materially  affected,  or are reasonably likely to materially
affect, our internal controls over financial reporting.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     As with all entertainment facilities there exists a degree of risk that the
general public may be accidentally  injured.  As of February 28, 2007 there were
various claims  outstanding in this regard that management does not believe will
have a material  effect on the  financial  condition or results of operations of
the Company.  To mitigate this risk, we maintain  insurance  coverage,  which we
believe effectively covers any reasonably foreseeable potential liability. There
is  no  assurance  that  our  insurance   coverage  will  adequately  cover  all
liabilities to which we may be exposed.

Global was a plaintiff in a lawsuit filed against a current franchisee. The suit
asked for a ruling on the  interpretation  of the protected  territory clause of
the license agreement. Subsequent to our action, the franchisee filed a separate
claim for  unspecified  damages for alleged  breach of the  protected  territory
clause of the  licensing  agreement.  These  suits were filed in August 2005 and

                                       25
<PAGE>
settled in February 2007.  The settlement  included an amendment to the specific
franchisee's contract term and an amendment to the specific franchisee's renewal
fees.

Global was named as a defendant, along with the local municipality, in a lawsuit
filed by the family of an employee of the Dodge  Arena in  Hidalgo,  Texas.  The
suit alleged negligence against Global and asks for unspecified  damages related
to the death of the employee  resulting from an accident at the arena. This suit
was settled in January 2007 resulting in no liability to Global.

Global is a defendant in a lawsuit filed by Nustadia  Developments  Inc. and PBK
Architects.  The suit  arises out of certain  contracts  between  Global and the
plaintiffs,  pursuant to which  Global  agreed to use  architectural  design and
development  management services of the plaintiffs with respect to certain arena
development  projects.  The suit asks for direct damages of $4,500,000 and other
unspecified damages for alleged breach of contract,  tortious  interference with
business  expectancy,  and  breach of  implied  covenant  of good faith and fair
dealing.  This suit was filed in  December  2005 and is pending in the  Maricopa
County Superior Court of Arizona.  Although the outcome of this matter cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to  vigorously  defend this action.  As such no liability  has
been recorded at February 28, 2007 related to this matter.

Global is a third-party  co-defendant in a lawsuit filed by the City of Hidalgo,
Texas against  Eduardo Vela and PBK  Architects,  Inc.  (City of Hidalgo,  Texas
Municipal  Facilities  Corp, v. Eduardo Vela and PBK Architects)  related to the
design and  construction of the Dodge Arena in Hidalgo,  Texas. The City alleges
that PBK is liable for misrepresentations and negligence related to PBK's design
plans,  construction  oversight and general  administration of the project.  The
suit was filed on October 25, 2004 and is pending in the 389th Judicial District
Court of Hidalgo  County,  Texas.  Global became a party to Hidalgo v. Vela when
defendant  PBK filed a third  party  petition on March 31,  2006  claiming  that
Global owed PBK  contribution  for plaintiff's  claims.  Although the outcome of
this matter cannot be predicted  with  certainty,  we believe that we have valid
defenses to the alleged claims and intend to vigorously  defend this action.  As
such,  no  liability  has been  recorded  at February  28, 2007  related to this
matter.

Global  is a  plaintiff  and a  counter-defendant  in a  lawsuit  involving  its
franchisee  Blue Line Hockey,  LLC ("Blue Line"),  which operates the Youngstown
Steelhounds.  Global's claim is for  approximately  $115,000 in unpaid franchise
and assessment  fees owed by Blue Line,  plus our attorneys'  fees.  Blue Line's
counterclaim alleges that the WPHL fraudulently induced Blue Line's principal to
enter the  license  agreement  by failing to comply  with  franchise  disclosure
requirements,  and that the WPHL made fraudulent  representations to induce Blue
Line into signing the  franchise  agreement.  Blue Line seeks  rescission of the
license  agreement,  reimbursement  of its franchise fee, and  reimbursement  of
travel  expenses for the 2005-2006  season.  Although the outcome of this matter
cannot be predicted  with  certainty,  we believe that we have both valid claims
and valid defenses to the counterclaims. Thus, we intend to vigorously prosecute
our claims and defend the  counterclaims.  No  liability  has been  recorded  at
February 28, 2007 related to this matter.

ITEM 6. EXHIBITS

(a) Exhibits. See Exhibit Index attached.

                                       26
<PAGE>
                                    SIGNATURE

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                           Global Entertainment Corporation
                                   (Registrant)



April 16, 2007             By /s/ Richard Kozuback
                              --------------------------------------------------
                               Richard Kozuback
                               President & Chief Executive Officer



April 16, 2007             By /s/ J. Craig Johnson
                              --------------------------------------------------
                              J. Craig Johnson
                              Executive Vice President & Chief Financial Officer

                                       27
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                                  EXHIBIT INDEX

The following  exhibits are filed herewith or  incorporated  herein  pursuant to
Regulation SB-601:

    EXHIBIT
    -------

     3.1     Amended and  Restated  Articles of  Incorporation  of the  Company,
             dated April 14, 2000. (1)

     3.2     Bylaws of the Company, dated April 18, 2000. (2)

     31.1    Certifications  Pursuant  to 18 U.S.C.  Section  1350-Section  302,
             signed by Richard Kozuback, Chief Executive Officer.*

     31.2    Certifications  Pursuant  to 18 U.S.C.  Section  1350-Section  302,
             signed by J. Craig Johnson, Chief Financial Officer.*

     32      Certification  Pursuant  to 18  U.S.C.  Section  1350-Section  906,
             signed by Richard  Kozuback,  Chief Executive  Officer and J. Craig
             Johnson, Chief Financial Officer.*

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*    Filed herewith.

(1)  Incorporated   herein  by  reference  to  Exhibit  3.1  of  the   Company's
     Registration  Statement  on Form S-4 (No.  333-109192),  as filed  with the
     Commission on September 26, 2003.

(2)  Incorporated   herein  by  reference  to  Exhibit  3.2  of  the   Company's
     Registration  Statement  on Form S-4 (No.  333-109192),  as filed  with the
     Commission on September 26, 2003.