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: November 30, 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 November 30, 2007:

                          Common Stock, $.001 par value
                                6,522,114 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 NOVEMBER 30, 2007


PART I. FINANCIAL INFORMATION

     Item 1. Financial Statements                                             3

          Condensed Consolidated Balance Sheets - As of November 30, 2007
          (Unaudited) and May 31, 2007                                        3

          Condensed Consolidated Statements of Operations (Unaudited) -
          Three and Six Months Ended November 30, 2007 and 2006               4

          Condensed Consolidated Statements of Changes in Stockholders'
          Equity - Fiscal Year ended May 31, 2007 and Six Months Ended
          November 30, 2007 (Unaudited)                                       5

          Condensed Consolidated Statements of Cash Flows (Unaudited) -
          Six Months Ended November 30, 2007 and 2006                         6

          Notes to Condensed Consolidated Financial Statements                7

     Item 2. Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                       16

     Item 3. Controls and Procedures                                         23

PART II. OTHER INFORMATION

     Item 1. Legal Proceedings                                               23

     Item 6. Exhibits                                                        24
          Exhibit 31.1
          Exhibit 31.2
          Exhibit 32

                                       2
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    AS OF NOVEMBER 30, 2007 AND MAY 31, 2007

<TABLE>
<CAPTION>
                                                                      November 30,              May 31,
                                                                          2007                   2007
                                                                      ------------           ------------
                                                                       (Unaudited)
<S>                                                                   <C>                    <C>
                                     ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                           $  1,696,924           $  4,251,542
  Accounts receivable - trade, net of $512,809 and $556,809
   at November 30, 2007 and May 31, 2007                                 2,354,869              3,243,482
  Accounts receivable - other                                               90,600                102,254
  Prepaid expenses and other assets                                        948,458                790,231
  Prepaid income tax                                                        63,000                 63,000
  Deferred income tax asset, net of valuation allowance                     14,000                 14,000
                                                                      ------------           ------------
      TOTAL CURRENT ASSETS                                               5,167,851              8,464,509

Property and equipment, net                                                213,450                221,099
Construction in progress                                                14,917,862                     --
Intangible assets, net                                                   2,737,164              2,743,341
Goodwill                                                                   518,750                518,750
Other assets                                                                65,858                 79,967
                                                                      ------------           ------------
      TOTAL ASSETS                                                    $ 23,620,935           $ 12,027,666
                                                                      ============           ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                    $  2,220,553           $  3,263,673
  Accrued liabilities                                                    1,665,272              1,431,620
  Deferred revenues                                                        763,021                311,994
  Note payable - current portion                                            63,126                     --
  Other liabilities                                                         19,789                     --
                                                                      ------------           ------------
      TOTAL CURRENT LIABILITIES                                          4,731,761              5,007,287

Deferred income tax liability                                               66,000                 66,000
Long-term liabilities                                                    1,859,118                     --
Notes payable - long term portion                                       12,120,698                     --
                                                                      ------------           ------------
      TOTAL LIABILITIES                                                 18,777,577              5,073,287
                                                                      ------------           ------------
COMMITMENTS AND CONTINGENCIES

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;
   6,522,114 and 6,508,173 shares issued and outstanding as of
   November 30, 2007 and May 31, 2007                                        6,522                  6,508
  Paid-in capital                                                       10,730,996             10,731,010
  Retained deficit                                                      (5,894,160)            (3,783,139)
                                                                      ------------           ------------
      TOTAL STOCKHOLDERS' EQUITY                                         4,843,358              6,954,379
                                                                      ------------           ------------
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $ 23,620,935           $ 12,027,666
                                                                      ============           ============
</TABLE>

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

                                       3
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2007 AND 2006
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                         For the Three Months Ended                For the Six Months Ended
                                       -------------------------------          -------------------------------
                                       November 30,       November 30,          November 30,       November 30,
                                          2007               2006                  2007               2006
                                       -----------        -----------           -----------        -----------
<S>                                    <C>                <C>                   <C>                <C>
Revenues
  Project management fees              $   119,347        $ 9,231,427           $   244,399        $11,302,016
  Facility management fees                 734,875          1,156,260             1,699,167          1,500,347
  Licensing and advertising fees           820,212          1,074,533             1,686,422          1,754,408
  Ticket service fees                    1,173,159          1,253,162             1,952,968          1,810,464
  Automotive part sales                    156,569                 --               278,346                 --
  Franchise fees                                --            115,000               430,025            115,000
  Project development fees                  25,000                 --               206,250                 --
  Other revenue                             (6,579)             2,641                (1,718)             2,706
                                       -----------        -----------           -----------        -----------
Gross Revenues                           3,022,583         12,833,023             6,495,859         16,484,941
                                       -----------        -----------           -----------        -----------

Operating Costs
  Cost of revenues                       1,706,628         10,536,092             3,552,665         13,159,772
  General and administrative costs       1,944,293          2,249,256             5,126,990          4,286,382
                                       -----------        -----------           -----------        -----------
Total Operating Costs                    3,650,921         12,785,348             8,679,655         17,446,154
                                       -----------        -----------           -----------        -----------

Income (Loss) from Operations             (628,338)            47,675            (2,183,796)          (961,213)

Other Income (Expense)
  Interest income                           35,670             75,244                80,902            148,785
  Interest expense                             (59)            (5,393)               (8,127)            (8,706)
                                       -----------        -----------           -----------        -----------
Total Other Income                          35,611             69,851                72,775            140,079
                                       -----------        -----------           -----------        -----------

Income (Loss) Before Income Taxes         (592,727)           117,526            (2,111,021)          (821,134)

Income Tax Benefit                              --                 --                    --                 --
                                       -----------        -----------           -----------        -----------

Net Income (Loss)                      $  (592,727)       $   117,526           $(2,111,021)       $  (821,134)
                                       ===========        ===========           ===========        ===========
Earnings (Loss) Per Share
   -basic                              $     (0.09)       $      0.02           $     (0.32)       $     (0.13)
                                       ===========        ===========           ===========        ===========
   -diluted                            $     (0.09)       $      0.02           $     (0.32)       $     (0.13)
                                       ===========        ===========           ===========        ===========
Weighted Average Shares
   -basic                                6,521,117          6,500,261             6,518,604          6,497,383
                                       ===========        ===========           ===========        ===========
   -diluted                              6,521,117          6,693,742             6,518,604          6,497,383
                                       ===========        ===========           ===========        ===========
</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 CHANGES IN STOCKHOLDERS' EQUITY
                 FOR THE FISCAL YEAR ENDED MAY 31, 2007 AND THE
                       SIX MONTHS ENDED NOVEMBER 30, 2007

<TABLE>
<CAPTION>
                                           Common Stock                            Retained
                                        --------------------        Paid-in        Earnings
                                        Shares        Amount        Capital        (Deficit)          Total
                                        ------        ------        -------        ---------          -----
<S>                                   <C>            <C>          <C>             <C>              <C>
Balance at May 31, 2006               6,487,492      $  6,488     $10,665,781     $   342,238      $11,014,507

Exercise of options                      10,681            10           8,739              --            8,749

Issuance of common stock                 10,000            10          56,490              --           56,500

Net loss for the fiscal year
 ended May 31, 2007                          --            --              --      (4,125,377)      (4,125,377)
                                      ---------      --------     -----------     -----------      -----------

Balance at May 31, 2007               6,508,173         6,508      10,731,010      (3,783,139)       6,954,379

Exercise of options (Unaudited)          13,941            14             (14)             --               --

Net loss for the six months ended
 November 30, 2007 (Unaudited)               --            --              --      (2,111,021)      (2,111,021)
                                      ---------      --------     -----------     -----------      -----------

Balance at November 30, 2007
 (Unaudited)                          6,522,114      $  6,522     $10,730,996     $(5,894,160)     $ 4,843,358
                                      =========      ========     ===========     ===========      ===========
</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 CASH FLOWS
         FOR THE SIX MONTHS ENDED NOVEMBER 30, 2007 AND 2006 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    For the Six Months Ended
                                                               -----------------------------------
                                                               November 30,           November 30,
                                                                   2007                   2006
                                                               ------------           ------------
<S>                                                            <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                     $ (2,111,021)          $   (821,134)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
     Depreciation and amortization                                  101,148                 87,947
     Allowance for doubtful accounts                                (44,000)               199,943
     Other                                                             (323)                 5,077
  Changes in Assets and Liabilities:
     Decrease (increase) accounts receivable, gross
       - trade                                                      932,613             (1,550,169)
       - other                                                       11,654                (39,108)
     Increase prepaid expenses and other assets                    (158,227)               (61,136)
     Decrease other assets                                           14,109                 16,039
     Increase (decrease) accounts payable trade                  (1,043,120)             5,103,055
     Increase accrued liabilities                                   233,652              2,212,891
     Increase other liabilities                                   1,878,907                     --
     Increase deferred revenues                                     451,027                  7,833
                                                               ------------           ------------
Net cash provided by operating activities                           266,419              5,161,238
                                                               ------------           ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of fixed assets                                          (86,999)              (104,923)
  Construction in progress                                      (14,917,862)                    --
  Proceeds from sale of fixed assets
  Purchase of trademarks                                                 --                (74,739)
                                                               ------------           ------------
Net cash used in investing activites                            (15,004,861)              (179,662)
                                                               ------------           ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Notes payable                                                  12,183,824                     --
  Stock options exercised                                                --                  8,749
                                                               ------------           ------------
Net cash provided by financing activities                        12,183,824                  8,749
                                                               ------------           ------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:            (2,554,618)             4,990,325

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD:                   4,251,542              5,438,091
                                                               ------------           ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD:                      $  1,696,924           $ 10,428,416
                                                               ============           ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the period for interest                     $      8,127           $      8,706
                                                               ============           ============
  Cash paid during the period for income taxes                 $         --           $         --
                                                               ============           ============
</TABLE>

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

                                       6
<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.

The 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 three and six month periods ended  November 30, 2007,
are not necessarily  indicative of the results that may be expected for the year
ending May 31, 2008, 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, 2007.

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 consolidated financial statements.

Material estimates  include,  but are not limited to, revenue  recognition,  the
allowance  for doubtful  accounts,  facility  management  performance  guarantee
liabilities,  the carrying  value of goodwill  and  intellectual  property,  the
realization  of the  deferred  income  tax asset,  the fair  value of  liability
related to the secondary guarantee related to a worker's  compensation  program,
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
within the next year.

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.

                                       7
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


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 our costs.  The fees are
recognized ratably over the year in relation to expenses incurred. At the end of
the year, net profits, or losses are shared  proportionately with each member of
the JOA. 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 we billed  relating to furniture,  fixtures and equipment,  architecture
fees,  and  other  amounts  we incur 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".

Project  Development Fees: Global Properties I is working 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.  Project  development  fees are  recognized  according  to specific
contract  terms;  typically 50% upon signing of a  development  contract and 50%
upon construction groundbreaking.

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.  When we  principally  manage  people who are
employees at the facility, the payroll costs from such employees 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.

Automotive Part Sales: Cragar product sales include Cragar Edition Vehicle Kits,
brakes,  exhaust,  and  other  aftermarket  automotive  products.  Revenues  are
generated  from the sale of these branded  products to automotive  retailers and
distributors.  These  revenues  are  recognized  at the time of  shipment to our
customers.

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


EARNINGS (LOSS) PER SHARE (EPS)

<TABLE>
<CAPTION>
                                                          For the Three Months              For the Six Months
                                                            Ended November 30,               Ended November 30,
                                                       ---------------------------      ----------------------------
                                                          2007             2006            2007              2006
                                                       ----------       ----------      -----------       ----------
<S>                                                    <C>              <C>             <C>               <C>
Earnings (loss) attributable to common shares          $ (592,727)      $  117,526      $(2,111,021)      $ (821,134)
Basic EPS - weighted average shares outstanding         6,521,117        6,500,261        6,518,604        6,497,383
                                                       ----------       ----------      -----------       ----------
  Basic earnings (loss) per share                      $    (0.09)      $     0.02      $     (0.32)      $    (0.13)
                                                       ==========       ==========      ===========       ==========

Basic EPS - weighted average shares outstanding         6,521,117        6,500,261        6,518,604        6,497,383
Effect of dilutive securities-
  Stock options                                                --          169,582               --               --
  Warrants                                                     --           23,899               --               --
                                                       ----------       ----------      -----------       ----------
Diluted EPS - weighted average shares outstanding       6,521,117        6,693,742        6,518,604        6,497,383
                                                       ----------       ----------      -----------       ----------
  Diluted earnings (loss) per share                    $    (0.09)      $     0.02      $     (0.32)      $    (0.13)
                                                       ==========       ==========      ===========       ==========
Average outstanding securities not included in
 diluted EPS because effect would be antidilutive-
  Stock options                                           513,104           87,301          541,873          601,274
  Warrants                                                275,760          215,800          275,760          272,269
  Restricted stock                                         15,000            9,396           15,000            6,366
</TABLE>

Basic earnings  (loss) per share of common stock is computed by dividing the net
loss by the weighted average number of shares of common stock outstanding during
the period.  Diluted  earnings (loss) per share is computed by dividing net loss
by 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 when inclusion  would increase the income per
share or decrease the loss per share.

RESTRICTED STOCK

During  fiscal 2007,  we adopted the 2007  Long-Term  Incentive  Plan.  The plan
authorizes the Board of Directors to grant  restricted  stock awards to selected
officers,  employees,  outside consultants and our directors or its wholly owned
subsidiaries for up to an aggregate of 320,000 shares of common stock. Awards to
non-employee  directors  shall  vest  over two  years,  awards to  officers  and
employees shall vest over four years, and awards made to consultants or advisors
shall be determined by the Compensation Committee of the Board of Directors.

NEW ACCOUNTING PRONOUNCEMENTS

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.  We
adopted  FIN No. 48 on June 1,  2007,  and there was no  material  affect on our
financial position or results of operations.

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

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


about fair value  measurements.  This statement is effective for our fiscal year
beginning  June 1, 2008,  and  interim  periods  within that  fiscal  year.  The
adoption of SFAS 157 is not expected to have a material  effect on our financial
position or results of operations.

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 our fiscal year beginning June 1, 2008. We
do not  expect  SFAS No.  159 will have a  material  effect on our  consolidated
financial statements.

--------------------------------------------------------------------------------
                                     NOTE 2
                         INTANGIBLE ASSETS AND GOODWILL
--------------------------------------------------------------------------------

Intangible assets were comprised of the following:

                                             November 30,            May 31,
                                                 2007                 2007
                                              ----------           ----------

Trademarks                                    $  107,863           $  107,863
Covenant not to compete                           50,000               50,000
                                              ----------           ----------
                                                 157,863              157,863
Less:  accumulated amortization                  (57,699)             (51,522)
                                              ----------           ----------
Finite life intangibles, net                     100,164              106,341
Trademarks not subject to amortization         2,637,000            2,637,000
                                              ----------           ----------
                                              $2,737,164           $2,743,341
                                              ==========           ==========

During  the  fiscal  year  ended May 31,  2007,  we  determined  that,  based on
estimated future cash flows, the carrying amount of Cragar  Trademarks  exceeded
its fair value by $905,716;  accordingly,  an impairment loss of that amount was
recognized in fiscal year 2007.  We have  evaluated  the  recoverability  of the
trademarks as of November 30, 2007, and believe no additional impairment existed
at that date

Total amortization  expense equaled $2,531 and $2,504 for the three months ended
November  30,  2007 and 2006,  and $6,177  and  $6,430 for the six months  ended
November 30, 2007 and 2006.  We did not add any  amortizable  intangible  assets
during the six months  ended  November 30,  2007.  As of November 30, 2007,  the
aggregated  amortization  expense  for the next five  years  for all  intangible
assets subject to  amortization  is estimated to be $42,205.  As of November 30,
2007, the weighted average remaining lives of our intangible assets,  subject to
amortization, are approximately 9.32 years.

At November 30, 2007 and May 31, 2007, goodwill related to our purchase of ICC.

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

During the six months ended November 30, 2007 and 2006, we did not issue options
to purchase shares of common stock.

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.

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


--------------------------------------------------------------------------------
                                     NOTE 4
                                  NOTES PAYABLE
--------------------------------------------------------------------------------

In August 2006 we obtained  an  increase  in our  revolving  line of credit from
$2,000,000 to $3,000,000. On November 19, 2007, this line of credit was extended
and will  mature on January  19,  2008.  As of  November  30,  2007,  we have no
outstanding  balance on this credit  facility.  At November 30,  2007,  we had a
maximum  borrowing  capacity of $1,750,000 as a result of a $1,250,000 letter of
credit in favor of Marshall  Financial  Group.  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  November  30,  2007,  the
applicable interest rate was 8.50%. 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 November 30,
2007, we were not in compliance with the minimum consolidated tangible net worth
covenant; however, the bank has agreed to waive this covenant violation.

On August 2, 2007, we entered into an agreement with Marshall  Financial  Group,
LLC to borrow up to $52,000,000 for the  construction of a multi-purpose  events
center in Wenatchee, Washington. As part of this agreement, we provided a letter
of credit in favor of Marshall  Financial Group for $1,250,000.  The outstanding
principal  balance of the note bears  interest at the prime rate plus .25%.  The
note is payable in its  entirety on August 2, 2009.  Financial  covenants of the
note require that we maintain a level of  stockholders'  equity of not less than
$8,000,000 and unrestricted cash, cash equivalents, time deposits and marketable
securities of not less than $3,500,000.  As of November 30, 2007, we were not in
compliance with these financial covenants.

At November 30, 2007, the $11,868,249  outstanding  balance on the  construction
loan is classified  as a long-term  notes  payable in the  consolidated  balance
sheets.  Interest on the loan accumulates monthly and increases note payable and
construction in progress.

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

OPERATING LEASES

During the fiscal  year  ended May 31,  2004,  the  Company  entered  into a (5)
five-year  agreement,   effective  July  2004,  to  lease  phone  equipment,   a
maintenance contract, and telephone service for approximately $6,800 per month.

In August 2007, the Company  entered into a lease  agreement for office space in
Tempe,  Arizona.  Under the terms of the agreement monthly lease payments are $0
for the initial six months, $23,606 the following 2 1/2 years;  thereafter,  the
monthly lease payments are $24,589 thru the term of the agreement.

Pursuant to an agreement dated April 21, 2005 between GETTIX and Paciolan,  Inc.
Paciolan will provide GETTIX a ticketing  software  system and related  training
and support through December 31, 2010.

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


The  future  minimum  lease  payments  and  minimum  annual  fees for the  above
operating leases are as follows:

                   Fiscal Year
                   -----------
                      2008              283,300
                      2009              876,955
                      2010              863,272
                      2011              715,840
                      2012              295,075
                   Thereafter           295,075

LITIGATION

As with all  entertainment  facilities  there  exists a degree  of risk that the
general public may be accidentally  injured. As of November 30, 2007, there were
various claims  outstanding in this regard that management does not believe will
have a material effect on our financial  condition or results of operations.  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.

We are a defendant  in a lawsuit  filed by Nustadia  Developments  Inc.  and PBK
Architects.  The  suit  arises  out of  certain  contracts  between  us and  the
plaintiffs,  pursuant  to  which  we  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.  A  settlement  has been reached and we have
established a reserve to reflect the estimated settlement costs.

We are a plaintiff and a counter-defendant in a lawsuit involving its franchisee
Blue Line Hockey,  LLC (Blue Line),  which operates the Youngstown  Steelhounds.
Our 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 established at November 30, 2007 related to
this matter.

Global is the claimant and  counter-respondent  in an arbitration against Global
Spectrum, L.P. ("Spectrum"). This arbitration is being conducted by the American
Arbitration  Association  in  Phoenix,  Arizona,  and  stems  from a  settlement
agreement entered into between Global and Spectrum (the "Settlement Agreement").
Global seeks the  arbitrators'  declaration that Global is not obligated to make
any more  payments to Spectrum  under the  Settlement  Agreement  alleging  that
Spectrum   misrepresented  material  facts  to  induce  Global  to  execute  the
Settlement  Agreement.  We  established  a  reserve  to  reflect  the  estimated
settlement  costs in the first  quarter of fiscal  year 2008 and we settled  the
matter in the second quarter of fiscal year 2008.

International  Coliseums  Company ("ICC") is the plaintiff in a lawsuit it filed
against  the  City  of  Youngstown,  Ohio  (the  "City").  The  lawsuit  seeks a
determination  that the City took  certain  actions  which  prohibited  ICC from
performing as contracted under the management  agreement between the parties. We
established a reserve to reflect the estimated  settlement  costs in fiscal 2007
and we settled the matter in the second quarter of fiscal

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


2008. The settlement  eliminated the contingency  related to certain  guaranteed
economic performance standards in the Youngstown, Ohio, facility contract.

CONTINGENCIES

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.

We enter  into  indemnification  provisions  under  our  agreements  with  other
companies in our ordinary course of business,  typically with business  partners
and customers.  Under these provisions we generally  indemnify and hold harmless
the indemnified  party for losses suffered or incurred by the indemnified  party
as a result of our activities.  The maximum  potential amount of future payments
we  could  be  required  to  make  under  these  indemnification  provisions  is
unlimited.  We have not  incurred  material  costs to defend  lawsuits or settle
claims related to these indemnification  agreements. As a result, we believe the
estimated  fair value of these  agreements is minimal.  Accordingly,  we have no
liabilities recorded for these agreements as of November 30, 2007.

As of November 30, 2007, we have entered into various employment  contracts with
key employees. Under certain circumstances we may be liable to pay amounts based
on the related contract terms.

GUARANTEES

We have entered into a contract with the  entertainment  facility in Rio Rancho,
New Mexico which guarantees certain economic performance standards.  The term of
this  contract is for a period of 10 years and expires in December  2014. In the
event these economic performance  standards are not reached, we are obligated to
subsidize  the  difference  between the actual  performance  and the  guaranteed
performance.  There are no recourse  provisions under this agreement.  It is not
possible to estimate a potential  liability under this guarantee  because of the
conditional  nature of our  obligations  and the unique facts and  circumstances
involved in the  agreement.  The maximum  amount of future  payments we could be
required to make under the  performance  guarantee is theoretical due to various
unknown factors.  However, the subsidy would be limited to the operating loss of
the facility,  including debt service,  for each year of the guarantee.  We have
never made a material  subsidy from this  guarantee  and do not believe that any
potential subsidy would be material.

We have  entered  into a contract  with the  entertainment  facility in Prescott
Valley,  Arizona which provides a limited guarantee of the debt service payments
of the facility.  The term of this contract is for a period of 25 years.  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 the Prescott Valley Events Center, LLC
(see Note 6, Joint  Venture)  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. There are no recourse
provisions under this agreement. We have never experienced a material loss under
this contract and do not believe that any potential  loss would be material.  As
such, no value has been assigned to the guarantee as of November 30, 2007.

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


As of November 30, 2007, we provided a secondary  guarantee on a standby  letter
of credit in favor of Ace American Insurance Company for $1,490,000 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 November  30,  2007.  We
believe the amount of payments under this guarantee is negligible,  and as such,
have recorded no value to this guarantee at November 30, 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. We
are the managing  member of Prescott  Valley Events  Center,  LLC (PVEC) and are
responsible  for the planning,  promotion and  fulfillment  of the joint venture
operations.  We 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. We have 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 which we  estimate  to be
approximately $140,000.

We did not earn  income or incur any losses  from PVEC for the six months  ended
November 30, 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
"other assets" as of November 30, 2007.

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

--------------------------------------------------------------------------------
                                     NOTE 7
                               SEGMENT INFORMATION
--------------------------------------------------------------------------------

Each of our seven  subsidiaries  is a  separate  legal  entity  with a  separate
management  structure.  Our  corporate  operations  exist  solely to support its
subsidiary segments.  As such, certain corporate overhead costs are allocated to
the  operating  segments.  There are no  differences  in  accounting  principles
between  the  operations.  The  following  is a  summary  of  certain  financial
information of our seven areas of operation:

<TABLE>
<CAPTION>
                                                        For the Six Months Ended
                                                  -------------------------------------
                                                                          Income (Loss)
                                                                         Before Income
                                                  Gross Revenues             Taxes                 Assets
                                                  --------------          ------------           ------------
<S>                                                <C>                    <C>                    <C>
NOVEMBER 30, 2007
Global Entertainment Corporate Operations          $    166,478           $   (998,821)          $ 17,614,069
Central Hockey League                                 1,280,211                503,505                795,121
Global Properties I                                      56,250               (321,224)               364,365
International Coliseums                                 394,555             (1,072,197)               666,507
Encore Facility Management                            1,699,167               (452,848)               289,297
Global Entertainment Marketing Systems                  479,145                  1,449                104,860
Global Entertainment Ticketing                        1,953,697                375,543                687,360
Cragar Industries                                       466,356               (146,428)             3,099,356
                                                   ------------           ------------           ------------
                                                   $  6,495,859           $ (2,111,021)          $ 23,620,935
                                                   ============           ============           ============
NOVEMBER 30, 2006
Global Entertainment Corporate Operations          $         --           $         --           $ 12,109,165
Central Hockey League                                 1,106,384               (169,826)             1,956,501
Global Properties I                                          --               (476,450)                15,000
International Coliseums                              11,302,016                408,112              5,393,027
Encore Facility Management                            1,500,347               (666,710)               131,724
Global Entertainment Marketing Systems                  519,708                 95,544                326,762
Global Entertainment Ticketing                        1,810,464                343,191                224,993
Cragar Industries                                       246,022               (354,995)             3,171,322
                                                   ------------           ------------           ------------
                                                   $ 16,484,941           $   (821,134)          $ 23,328,494
                                                   ============           ============           ============
</TABLE>

--------------------------------------------------------------------------------
                                     NOTE 8
                            CONSTRUCTION IN PROGRESS
--------------------------------------------------------------------------------

Construction  costs  associated  with the Wenatchee  Events Center in Wenatchee,
Washington,  including all direct and indirect costs (including  interest during
the  construction  period) is being  recorded as  Construction  in Progress  and
capitalized until the building is completed and placed into service.

                                       15
<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, 2007, 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 annual  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.

We were  organized as a Nevada  corporation  on August 20, 1998,  under the name
Global II, Inc. In April 2000, Global II acquired all of the outstanding  shares
of Western  Professional Hockey League, Inc. (WPHL) from WPHL Holdings,  Inc., a
British Columbia, Canada corporation.  Contemporaneously with the acquisition of
WPHL, we changed our name to Global Entertainment Corporation.

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,  Inc.  operates and manages a minor
professional  hockey  league known as the Central  Hockey  League  (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)  manages  the  construction  of
multipurpose  events  centers in mid-market  communities.  The  construction  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.

                                       16
<PAGE>
In March 2004, we completed a merger with Cragar Industries, Inc., a licensor of
an automotive  aftermarket  wheel trademark and brand - CRAGAR(R).  In addition,
Cragar is currently offering Cragar Edition Vehicle Kits, brakes,  exhaust,  and
other  aftermarket   automotive  products.  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.

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 centers developed by ICC. Facility management operations are
conducted under separate limited liability companies.

Global Properties I works in targeted  mid-sized  communities  across the United
States related to the development of multipurpose events centers and surrounding
multi-use real estate development.

OVERVIEW - OPERATIONS

During  the six  months  ended  November  30,  2007,  we  incurred a net loss of
$2,111,021  primarily  attributable to legal fees, loss reserves associated with
the settlement of various legal claims, as well as expenses  associated with the
launch of our  Cragar  Edition  vehicle  kits,  and  revenues  were  lower  than
anticipated. These expenses were partially offset by franchise fees at the CHL.

Cragar has begun  selling its new Special  Edition  vehicle kits and  components
through new car  dealerships and strategic  alliances.  We have invested in this
new  program  during  the  current  fiscal  year  in  advertising   and  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 our Annual Report on Form
10-KSB for the year ended May 31, 2007. We believe our most critical  accounting
policies and estimates relate to revenue recognition, the allowance for doubtful
accounts, facility management performance guarantee liabilities, the realization
of the deferred  income tax asset,  the fair value of  liability  related to the
secondary  guarantee related to a worker's  compensation  program,  the carrying
value of goodwill and intellectual  property, 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 within the next year.

Revenues from annual  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
as  earned  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.

                                       17
<PAGE>
Revenue on automotive part sales is recognized upon shipment.

Project  development fees are recognized  according to specific  contract terms;
typically 50% upon signing of a development  contract and 50% upon  construction
groundbreaking.

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.

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

The  allocation of expenses and division of profits are based upon the number of
active teams that each joint partner has in the league.

THREE MONTHS ENDED  NOVEMBER 30, 2007,  COMPARED TO THREE MONTHS ENDED  NOVEMBER
30, 2006

REVENUES:

<TABLE>
<CAPTION>
                                 Three months               Three months
                                    ended                       ended
                                 November 30,   Percent of   November 30,  Percent of
                                     2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                                     ----        -------        ----        -------     -------------    --------------
<S>                              <C>               <C>      <C>               <C>        <C>                   <C>
Project management fees           $  119,347        3.9%     $ 9,231,427      71.9%      $(9,112,080)        -98.7%
Facility management fees             734,875       24.3%       1,156,260       9.0%         (421,385)        -36.4%
Licensing and advertising fees       820,212       27.1%       1,074,533       8.4%         (254,321)        -23.7%
Ticket service fees                1,173,159       38.8%       1,253,162       9.8%          (80,003)         -6.4%
Automotive parts sales               156,569        5.2%              --       0.0%          156,569           N/A
Franchise fees                            --        0.0%         115,000       0.9%         (115,000)       -100.0%
Project development fees              25,000        0.8%              --       0.0%           25,000           N/A
Other revenue                         (6,579)      -0.1%           2,641       0.0%           (9,220)       -349.1%
                                  ----------      ------     -----------     -----       -----------         -----
Gross Revenues                    $3,022,583      100.0%     $12,833,023     100.0%      $(9,810,440)        -76.4%
                                  ==========      ======     ===========     =====       ===========         =====
</TABLE>

Total revenues  decreased  $9,810,440,  or 76.4%, from $12,833,023 for the three
months  ended  November  30,  2006,  to  $3,022,583  for the three  months ended
November  30,  2007.  This  decrease  was  primarily  the result of ICC  project
management  revenues which realized a decrease of $9,112,080 from $9,231,427 for
the three months ended November 30, 2006, to $119,347 for the three months ended
November 30, 2007. This decrease resulted as ICC construction project management
agreements were in the completion stages in 2006 creating  significant  revenues
from  acquisition  of  furniture,  fixtures,  and equipment on behalf of project
owners.  The related revenue and expense for these amounts are recognized in the
period incurred.  Project  management  revenues  represented  71.9% of our total
revenue for the three  months ended  November 30, 2006,  compared to 3.9% of our
total revenue for the three months ended November 30, 2007.

Facility  management revenue decreased  $421,385,  or 36.4%, from $1,156,260 for
the three months ended November 30, 2006, to $734,875 for the three months ended
November 30, 2007. This decrease occurred  primarily as a result of cancellation
of the  management  contract  with the  Chevrolet  Center in  Youngstown,  Ohio.
Encore's  current  facility  management  contracts  include  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 also  included  in cost of  revenues.
Facility  management revenue represented 9.0% of our total revenue for the three
months ended  November 30, 2006,  compared to 24.3% of our total revenue for the
three months ended November 30, 2007.

                                       18
<PAGE>
Licensing and advertising fees decreased $254,321, or 23.7%, from $1,074,533 for
the three months ended November 30, 2006, to $820,212 for the three months ended
November 30, 2007. This decrease resulted primarily from 1) decreased GEMS sales
and marketing  revenue relating to the facilities in Rio Rancho,  New Mexico and
Prescott Valley, Arizona and 2) cancellation of the management contract with the
Chevrolet  Center  in  Youngstown,   Ohio.  Licensing  and  advertising  revenue
represented  8.4% of our total  revenue for the three months ended  November 30,
2006, compared to 27.1% of our total revenue for the three months ended November
30, 2007.

Ticket service fees decreased  $80,003,  or 6.4%,  from $1,253,162 for the three
months  ended  November  30,  2006,  to  $1,173,159  for the three  months ended
November 30, 2007.  This decrease in ticket  service fees occurred  primarily as
attendance in facilities in Rio Rancho, New Mexico and Prescott Valley,  Arizona
was below prior year events.  Ticket  service  revenue  represented  9.8% of our
total revenue for the three months ended November 30, 2006, compared to 38.8% of
our total revenue for the three months ended November 30, 2007.

Automotive  part sales  revenue  represents  sales of our  Mustang and Ford F150
Cragar conversion kits.

Franchise fee revenue  represents  amounts charged for franchise  transfers.  We
have not had any franchise  transfers during the three months ended November 30,
2007.

OPERATING COSTS:

<TABLE>
<CAPTION>
                                     Three months               Three months
                                        ended                       ended
                                     November 30,   Percent of   November 30,  Percent of
                                         2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                                         ----        -------        ----        -------     -------------    --------------
<S>                                  <C>               <C>      <C>               <C>        <C>                   <C>
Cost of revenues                     $1,706,628        56.5%    $10,536,092      82.1%       $(8,829,464)        -83.8%
General and administrative costs      1,944,293        64.3%      2,249,256      17.5%          (304,963)        -13.6%
                                     ----------       -----     -----------      ----        -----------          ----
Total Operating Costs                $3,650,921       120.8%    $12,785,348      99.6%       $(9,134,427)        -71.4%
                                     ==========       =====     ===========      ====        ===========          ====
</TABLE>

Total operating costs decreased by $9,134,427,  or 71.4%,  from  $12,785,348 for
the three months ended  November 30, 2006,  to  $3,650,921  for the three months
ended November 30, 2007.

Cost of revenues  decreased by $8,829,464,  or 83.8%,  from  $10,536,092 for the
three months ended  November 30, 2006, to $1,706,628  for the three months ended
November 30, 2007.  This decrease  resulted  primarily from 1) ICC  construction
management  projects  were in the final stages  during the prior  year's  fiscal
quarter,  which  generates  costs  associated  with  the  purchase  and  sale of
furniture, fixtures, and equipment on behalf of project owners, 2) a decrease in
facility  management payroll  associated with the facility in Youngstown,  Ohio,
due to  cancellation  of the  management  agreement  and 3) a decrease in ticket
service fees related to the decrease in ticket service revenues.

General  and  administrative   expenses  decreased  $304,963,   or  13.6%,  from
$2,249,256  for the three months ended  November 30, 2006, to $1,944,293 for the
three months ended November 30, 2007. The decrease in general and administrative
expenses  relates to reduced  costs  associated  with the startup  operations of
Global  Properties I, and decreased  legal fees due to the settlement of several
significant legal issues.

NET INCOME:

<TABLE>
<CAPTION>
                       Three months               Three months
                          ended                       ended
                       November 30,   Percent of   November 30,  Percent of
                           2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                           ----        -------        ----        -------     -------------    --------------
<S>                    <C>             <C>        <C>              <C>        <C>                <C>
Net Income (Loss)      $ (592,727)     -19.6%      $ 117,526        0.9%       $ (710,253)         -604.3%
                       ==========       ====       =========        ===        ==========           =====
</TABLE>

                                       19
<PAGE>
Net loss was $592,727 for the three months ended November 30, 2007,  compared to
net income of $117,526 for the three months ended November 30, 2006. The current
period  net  loss is  primarily  attributable  to  reduced  revenues  at our ICC
subsidiary due to a reduction of projects under  management and to  cancellation
of the management agreement with the Chevrolet Center in Youngstown, Ohio.

SIX MONTHS ENDED  NOVEMBER 30, 2007,  COMPARED TO SIX MONTHS ENDED  NOVEMBER 30,
2006

REVENUES:

<TABLE>
<CAPTION>
                                   Six months                  Six months
                                     ended                       ended
                                  November 30,   Percent of   November 30,  Percent of
                                      2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                                      ----        -------        ----        -------     -------------    --------------
<S>                               <C>               <C>      <C>               <C>        <C>                   <C>
Project management fees          $  244,399         3.8%     $ 11,302,016      68.6%      $(11,057,617)       -97.8%
Facility management fees          1,699,167        26.1%        1,500,347       9.1%           198,820         13.3%
Licensing and advertising fees    1,686,422        26.0%        1,754,408      10.6%           (67,986)        -3.9%
Ticket Service Fees               1,952,968        30.1%        1,810,464      11.0%           142,504          7.9%
Automotive parts sales              278,346         4.2%               --       0.0%           278,346           N/A
Franchise fees                      430,025         6.6%          115,000       0.7%           315,025        273.9%
Project development fees            206,250         3.2%               --       0.0%           206,250           N/A
Other revenue                        (1,718)        0.0%            2,706       0.0%            (4,424)      -163.5%
                                 ----------       -----      ------------     -----       ------------        -----
Gross Revenues                   $6,495,859       100.0%     $ 16,484,941     100.0%      $ (9,989,082)       -60.6%
                                 ==========       =====      ============     =====       ============        =====
</TABLE>

Total revenues  decreased  $9,989,082,  or 60.6%,  from  $16,484,941 for the six
months ended  November 30, 2006, to $6,495,859 for the six months ended November
30, 2007. This decrease was the result of ICC project management  revenues which
realized a decrease of  $11,057,617  from  $11,302,016  for the six months ended
November 30, 2006, to $244,399 for the six months ended November 30, 2007.  This
decrease resulted as ICC construction management projects were in the completion
stages in 2006  creating  significant  revenues from  acquisition  of furniture,
fixtures,  and equipment on behalf of project  owners.  The related  revenue and
expense  for these  amounts  are  recognized  in the  period  incurred.  Project
management  revenues  represented  68.6% of our total revenue for the six months
ended  November  30,  2006,  compared  to 3.8% of our total  revenue for the six
months ended November 30, 2007.

Facility  management revenue increased  $198,820,  or 13.3%, from $1,500,347 for
the six months ended  November 30, 2006, to $1,699,167  for the six months ended
November 30, 2007. This increase  occurred  primarily as a result of the opening
of two new facilities in October and November 2006.  Encore's  current  facility
management  contracts  include  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 also included in cost of revenues.

Licensing and advertising fees decreased  $67,986,  or 3.9%, from $1,754,408 for
the six months ended  November 30, 2006, to $1,686,422  for the six months ended
November 30, 2007.  This decrease  resulted  primarily from  cancellation of the
GEMS sales agreement at the Chevrolet Center in Youngstown, Ohio.

Ticket service fees increased  $142,504,  or 7.9%,  from  $1,810,464 for the six
months ended  November 30, 2006, to $1,952,968 for the six months ended November
30, 2007.  This  increase in ticket  service fees  occurred  primarily as GETTIX
began  ticketing  operations  at new  facilities  in Rio Rancho,  New Mexico and
Prescott Valley, Arizona.

Automotive  part sales  revenue  represents  sales of our  Mustang and Ford F150
Cragar conversion kits.

Franchise fee revenue  represents the fees  associated  with the transfer of CHL
franchises.

                                       20
<PAGE>
OPERATING COSTS:

<TABLE>
<CAPTION>
                                     Six months                  Six months
                                       ended                       ended
                                    November 30,   Percent of   November 30,  Percent of
                                        2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                                        ----        -------        ----        -------     -------------    --------------
<S>                                 <C>               <C>      <C>               <C>        <C>                   <C>
Cost of revenues                   $ 3,552,665        54.7%     $13,159,772      79.8%      $(9,607,107)       -73.0%
General and administrative costs     5,126,990        78.9%       4,286,382      26.0%          840,608         19.6%
                                   -----------       -----      -----------     -----       -----------         ----
Total Operating Costs              $ 8,679,655       133.6%     $17,446,154     105.8%      $(8,766,499)       -50.2%
                                   ===========       =====      ===========     =====       ===========         ====
</TABLE>

Total operating costs decreased by $8,766,499,  or 50.2%,  from  $17,446,154 for
the six months ended  November 30, 2006, to $8,679,655  for the six months ended
November 30, 2007.

Cost of revenue decreased by $9,607,107,  or 73.0%, from $13,159,772 for the six
months ended  November 30, 2006, to $3,552,665 for the six months ended November
30, 2007. This decrease resulted  primarily from 1) ICC construction  management
projects  were in the final  stages  during  the  prior  fiscal  quarter,  which
generates costs  associated  with the purchase and sale of furniture,  fixtures,
and  equipment  on behalf of  project  owners,  and 2) a  decrease  in  facility
management  payroll  associated  with the facility in  Youngstown,  Ohio, due to
cancellation of the management agreement.

General and administrative expenses increased $840,608 or 19.6%, from $4,286,382
for the six months ended  November 30, 2006,  to  $5,126,990  for the six months
ended  November 30, 2007.  The increase in general and  administrative  expenses
relates to increased  costs  associated  with the startup  operations  of Global
Properties I, as well as increased legal fees and costs due to the settlement of
several legal issues.

NET INCOME:

<TABLE>
<CAPTION>
                   Six months                  Six months
                     ended                       ended
                  November 30,   Percent of   November 30,  Percent of
                      2007        Revenue        2006        Revenue     Dollar Change    Percent Change
                      ----        -------        ----        -------     -------------    --------------
<S>               <C>               <C>      <C>               <C>        <C>                   <C>
Net Loss         $ (2,111,021)     -32.5%     $(821,134)      -5.0%       $(1,289,887)        157.1%
                 ============       ====      =========        ===        ===========         =====
</TABLE>

Net loss was $2,111,021 for the six months ended November 30, 2007,  compared to
net loss of $821,134  for the six months ended  November  30, 2006.  The current
period loss is primarily  attributable  to legal costs and reserves  established
for  settlements  of several  litigation  issues,  as well as  one-time  charges
associated with a change in an executive position.

LIQUIDITY AND CAPITAL RESOURCES

As of November 30, 2007, we have $1,696,924 in cash and cash equivalents.  As of
November 30, 2007,  we have cash  collected  for GETTIX  tickets with a value of
approximately  $488,000  in  connection  with events  scheduled  to occur in the
future.

Cash  provided by operating  activities  for the six months  ended  November 30,
2007,  was  $266,419  compared  to cash  provided  by  operating  activities  of
$5,161,238  for the six months ended  November 30, 2006.  This  decrease in cash
provided by operations is related  primarily to the current period net operating
loss, as well as a reduction in increases in trade accounts  payable and accrued
liabilities.

A significant  source of operating  capital during the six months ended November
30, 2007 was from CHL franchise  transfer fees. Since CHL franchise 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.

                                       21
<PAGE>
Cash used in investing  activities totaled  $15,004,861 for the six months ended
November  30, 2007,  compared to $179,662 for the six months ended  November 30,
2006. This use of funds in 2007 related  primarily to construction  costs of the
event center in Wenatchee, Washington. These construction costs are being funded
via a construction  loan with Marshall  Financial Group,  LLC, as reflected as a
source of funds in the financing section.

Cash provided in financing  activities  totaled  $12,183,824  for the six months
ended  November 30, 2007,  compared to $8,749 for the six months ended  November
30, 2006.  These are primarily  related to funds received from the  construction
loan with Marshall Financial Group, LLC.

We have a line of credit that will mature on January  19,  2008.  As of November
30, 2007,  we have no  outstanding  balance on this credit  facility.  We have a
maximum  borrowing  capacity of $1,750,000 as a result of a $1,250,000 letter of
credit in favor of  Marshall  Financial  Group.  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 November 30, 2007,
the applicable interest rate was 8.50%. 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  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
(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 November 30, 2007, we were not in
compliance with the tangible net worth covenant; however, the bank has agreed to
waive this violation.

We continue to evaluate the  profitability  of, and synergies among, our various
subsidiaries  and may  determine  to dispose of one or more of them,  as we move
forward with our business  plan.  Based on our current  forecast and  historical
results,  we believe that we have adequate cash flow from operations to fund our
operating needs through  November 30, 2008. We expect cash and cash flow will be
low in the third and fourth  quarter of fiscal 2008.  We expect that our current
ratio will be close to the minimums  required  under our line of credit.  We are
currently in violation  of the tangible net worth  covenant and have  obtained a
waiver  through  February 28, 2008.  However,  we must maintain a leverage ratio
(twelve months trailing  EBITDA to outstanding  line) of 2.5 in order to draw on
the line of credit. We do not expect to be able to maintain this leverage ratio.
We are  currently  in  negotiations  with our primary bank to insure that all or
some portion of our line of credit will be available,  however,  absent a waiver
of this covenant by the bank, we do not anticipate drawing on the line of credit
through  November  30,  2008.  If we  do  not  maintain  compliance  with  these
covenants,  or if the  bank  does not  waive  the  violation,  our  business  or
profitability deteriorates or we incur unexpected expenses or asset impairments,
it  could  have a  material  adverse  effect  on  our  liquidity  and  financial
resources.  We may be required to refinance all or part of our existing debt. We
cannot guarantee that we would be able to do so on terms acceptable to us, if at
all.

On August 2, 2007, we entered into an agreement with Marshall  Financial  Group,
LLC to borrow up to $52,000,000 for the  construction of a multi-purpose  events
center in Wenatchee, Washington. As part of this agreement, we provided a letter
of credit in favor of Marshall  Financial Group for $1,250,000.  The outstanding
principal  balance of the note bears  interest at prime rate plus .25%. The note
is payable in its  entirety on August 2, 2009.  Financial  covenants of the note
require  that we  maintain  a level of  stockholders'  equity  of not less  than
$8,000,000 and unrestricted cash, cash equivalents, time deposits and marketable
securities of not less than $3,500,000.  As of November 30, 2007, we were not in
compliance with these financial covenants.

At November 30, 2007, the $11,868,249  outstanding  balance on the  construction
loan is  classified  as  long-term  notes  payable in the  consolidated  balance
sheets.  Interest on the loan accumulates monthly and increases note payable and
construction  in progress.  As of November 30, 2007,  $1,198,832  of our initial
investment in the project was included in  construction  in progress.  We do not
expect to finance this initial  investment  with the loan.  We expect to finance
future investments in the project with the loan. Expenditures on the project are
generally  incurred  in one month and  financed  with the loan in the  following
month,  when a draw request is  submitted to the bank.  As of November 30, 2007,
$1,859,118 of payables  related to  expenditures on the project were included in
long-term liabilities, as we expect to finance them with draws on the loan.

                                       22
<PAGE>
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 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.  We
adopted  FIN No. 48 on June 1,  2007,  and there was no  material  affect on our
financial position or results of operations.

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 our fiscal year
beginning  June 1, 2008,  and  interim  periods  within that  fiscal  year.  The
adoption of SFAS 157 is not expected to have a material  affect on our financial
position or results of operations.

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 our fiscal year beginning June 1, 2008. 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-15(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 November
30, 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 November 30, 2007, there were
various claims  outstanding in this regard that management does not believe will
have a material effect on our financial  condition or results of operations.  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.

                                       23
<PAGE>
We are a defendant  in a lawsuit  filed by Nustadia  Developments  Inc.  and PBK
Architects.  The  suit  arises  out of  certain  contracts  between  us and  the
plaintiffs,  pursuant  to  which  we  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.  A  settlement  has been reached and we have
established a reserve to reflect the estimated settlement costs.

We are a plaintiff and a counter-defendant in a lawsuit involving its franchisee
Blue Line Hockey,  LLC (Blue Line),  which operates the Youngstown  Steelhounds.
Our 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 established at November 30, 2007,  related
to this matter.

Global is the claimant and  counter-respondent  in an arbitration against Global
Spectrum, L.P. ("Spectrum"). This arbitration is being conducted by the American
Arbitration  Association  in  Phoenix,  Arizona,  and  stems  from a  settlement
agreement entered into between Global and Spectrum (the "Settlement Agreement").
Global seeks the  arbitrators'  declaration that Global is not obligated to make
any more  payments to Spectrum  under the  Settlement  Agreement  alleging  that
Spectrum   misrepresented  material  facts  to  induce  Global  to  execute  the
Settlement  Agreement.  We  established  a  reserve  to  reflect  the  estimated
settlement  costs in the first  quarter of fiscal  year 2008 and we settled  the
matter in the second quarter of fiscal year 2008.

International  Coliseums  Company ("ICC") is the plaintiff in a lawsuit it filed
against  the  City  of  Youngstown,  Ohio  (the  "City").  The  lawsuit  seeks a
determination  that the City took  certain  actions  which  prohibited  ICC from
performing as contracted under the management  agreement between the parties. We
established a reserve to reflect the estimated  settlement  costs in fiscal 2007
and we settled the matter in the second  quarter of fiscal 2008.  The settlement
eliminated the contingency  related to certain guaranteed  economic  performance
standards in the Youngstown, Ohio, facility contract.

ITEM 6. EXHIBITS

(a) Exhibits. See Exhibit Index attached.

                                       24
<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)


January 14, 2008              By /s/ Richard Kozuback
                                 -----------------------------------------------
                                 Richard Kozuback
                                 President & Chief Executive Officer



January 14, 2008              By /s/ James Yeager
                                 -----------------------------------------------
                                 James Yeager
                                 Senior Vice President & Chief Financial Officer


                                       25
<PAGE>
                                  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 James Yeager, Chief Financial Officer.*

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

----------
*    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.