UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

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

For the quarterly period ended ~~March~~June 3130, 2012

o 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: 000-53184

GLOBAL SECURITY AGENCY INC.

(Exact name of registrant as specified in its charter)

Nevada	98-0516432
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)

12818 Hwy # 105 West, Suite 2-G

Conroe, TX 77304

(Address of principal executive offices)

(818) 281-1618

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was require to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (of for such shorter period that the registrant was required to submit and post such files). Yes x þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company x þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x þ

As of ~~May~~August 717, 2012, there were 6671,421,645 shares of common stock of the registrant outstanding.

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TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7
Item 4.	Controls and Procedures	7
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	9
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	(Removed and Reserved)	9
Item 5.	Other Information	9
Item 6.	Exhibits	9

		Page
Item 1.	Unaudited Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7
Item 4.	Controls and Procedures	7

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	8
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8
Item 3.	Defaults Upon Senior Securities	8
Item 4.	(Removed and Reserved)	8
Item 5.	Other Information	8
Item 6.	Exhibits	8

SIGNATURES

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PART I - FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

GLOBAL SECURITY AGENCY INC.

INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~JUNE 3130, 2012

(Unaudited)

	Index

Balance Sheets (Unaudited)	F-1

Statements of Operations (Unaudited)	F-2

Statements of Cash Flows (Unaudited)	F-3

Notes to the Unaudited Financial Statements	F-4

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Global Security Agency Inc.

Global Security Agency Inc.
Balance Sheets (Unaudited)
	30-Jun-12			31-Dec-11
	$			$
ASSETS
Current Assets
Cash		1,359			27,242
Accounts receivable, net		820,872			874,970
Prepaid expenses and other current assets		2,350			2,350

Total Current Assets		824,581			904,562
Property and equipment, net		21,187			27,243
Note receivable		70,000			70,000

Total Assets		915,768			1,001,805

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Bank indebtedness		8,228			9,017
Accounts payable		245,968			230,777
Accounts payable - related parties		167,296			167,063
Accrued liabilities		45,640			50,683
Convertible debt		135,000			-
Total Current Liabilities		602,132			457,540

Stockholders’ Equity (Deficit)

Preferred Stock, 100,000,000 shares authorized, $0.00001 par value, none issued		-			-
Common stock, 100,000,000 shares authorized, $0.00001 par value 71,421,645 shares (December 31, 2011 – 66,221,645 shares) issued and outstanding		714			662
Additional paid-in capital		851,710			650,762
Accumulated deficit		(538,788	)		(107,159	)
Total Stockholders’ Equity (Deficit)		313,636			544,265
Total Liabilities and Stockholders’ Equity (Deficit)		915,768			1,001,805

~~Balance~~(The ~~Sheet~~accompanying (notes are an integral part of these unaudited financial statements)

	31-Mar-12			31-Dec-11
		$			$
ASSETS
Current Assets
Cash		1,406			27,242
Note Receivable		70,000			70,000
Accounts receivable, net		875,679			874,970
Employee Advances		44,512			42,812
Prepaid expenses and deposits		1,175			1,175
Total Current Assets		992,772			1,016,199
Property and equipment, net		24,215			27,243
Other assets		1,175			1,175
Total Assets		1,018,162			1,044,617
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Bank indebtedness		8,626			9,017
Accounts payable		245,958			230,777
Accounts payable - related parties		174,027			167,063
Accrued liabilities		87,309			93,495
Convertible Debt		45,000			-
Total Current Liabilities		560,920			500,352
Stockholders’ Equity (Deficit)
Preferred Stock, 100,000,000 shares authorized, $0.00001 par value, none issued		-			-
Common stock, 100,000,000 shares authorized, $0.00001 par value 66,421,645 shares (December 31, 2011 – 66,221,645 shares) issued and outstanding		664			662
Additional paid-in capital		662,760			650,762
Accumulated deficit		(206,182	)		(107,159	)
Total Stockholders’ Equity (Deficit)		457,242			544,265
Total Liabilities and Stockholders’ Equity (Deficit)		1,018,162			1,044,617
(The accompanying notes are an integral part of these unaudited financial statements)

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Global Security Agency Inc.

Global Security Agency Inc.
Statements of Operations (Unaudited)
	For the Three			For the Three			For the Six			For the Six
	Months Ended			Months Ended			Months Ended			Months Ended
	30-Jun-12			30-Jun-11			30-Jun-12			30-Jun-11
	$			$			$			$
Revenue
Personal protection services		-			123,180			953			237,829
Private investigation services		2,175			272,117			23,204			688,965
Total Revenue		2,175			395,297			24,157			926,794

Cost of Sales		239			167,261			2,856			328,846
General and administrative		248,241			80,767			276,040			185,946
Legal and accounting		42,264			36,088			102,379			55,889
Rent		9,842			13,275			20,033			27,050
Salaries		15,995			56,002			28,595			123,254
Salaries - officers		-			36,000			-			72,000
Selling expenses		17,500			14,932			23,343			41,809
Total Expenses		334,081			404,325			453,246			834,794
Net Income (Loss) from Operations		(331,906	)		(9,028	)		(429,089	)		92,000
Other Expenses
Federal Income Tax Recovery (Expense)		3,276			3,078			3,122			(18,545	)
Interest expense		(3,676	)		(906	)		(5,662	)		(4,178	)
Net Income (Loss)		(332,306	)		(6,856	)		(431,629	)		69,277
Net Income (Loss) Per Common Share – Basic and Diluted		(0.00	)		(0.00	)		(0.01	)		0.00
Weighted Average Number of Common Shares Outstanding
Basic		70,432,634			61,721,645			68,345,821			61,721,645
Diluted		70,432,634			61,721,645			68,345,821			91,743,726

~~Statements~~(The accompanying notes are an integral part of ~~Operations~~these (unaudited financial statements)

	For the three			For the three
	months ended			months ended
	31-Mar-12			31-Mar-11
		$			$
Revenue
Personal protection services		953			114,649
Private investigation services		21,029			416,848
Total Revenue		21,982			531,497
Cost of Sales		2,617			166,762
Consulting		-			47,300
General and administrative		15,398			48,441
Legal and accounting		60,197			19,800
Rent		10,191			15,931
Salaries		12,600			67,252
Salaries - officers		-			36,000
Selling expenses		17,862			25,260
		118,865			426,746
Net Income (Loss) from Operations		(96,883	)		104,751
Other Expenses
Income Tax Expense		(154	)		(24,947	)
Interest expense		(1,986	)		(3,272	)
Net Income (Loss)	$	(99,023	)	$	76,532
Net Income (Loss) Per Common Share – Basic and Diluted	$	(0.00	)	$	0.00
Weighted Average Number of Common Shares Outstanding
Basic		66,259,423			61,721,645
Diluted		66,259,423			61,808,667
(The accompanying notes are an integral part of these unaudited financial statements)

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Global Security Agency Inc.

Global Security Agency Inc.
Statements of Cash Flows (Unaudited)

	For the six			For the six
	months ended			months ended
	30-Jun-12			30-Jun-11
	$			$
Operating Activities
Net Income (loss)		(431,629	)		69,277

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		6,056			9,409
Bad debt expense		54,461			-
Shares issued for services		12,000			-
Loss on settlement of accounts payable		184,000			-
Changes in operating assets and liabilities:
Accounts receivable		(363	)		(173,408	)
Prepaid expenses and other current assets		-			(1,500	)
Accounts payable		20,191			195,111
Accounts payable – related parties		233			-
Accrued liabilities		(5,043	)		36,959
Deferred revenue		-			(31,348	)
Net Cash Provided by (Used in) Operating Activities		(160,094	)		104,500
Investing Activities
Purchase of property and equipment		-			(3,759	)
Net Cash Used in Investing Activities		-			(3,759	)
Financing Activities
Proceeds from bank indebtedness		(789	)		-
Proceeds from loan payable - related party		135,000			-
Repayment of notes payable - related parties		-			(70,000	)
Net Cash Provided by (Used in) Financing Activities		134,211			(70,000	)

Increase (Decrease) In Cash		(25,883	)		30,741

Cash - Beginning of Period		27,242			2,485
Cash - End of Period		1,359			33,226
Supplemental Disclosures:
Interest paid		8,295			4,178
Income tax paid		-			18,545

~~Statements~~(The ofaccompanying ~~Cash~~notes ~~Flows~~are (an integral part of these unaudited financial statements)

	For the three			For the three
	months ended			months ended
	31-Mar-12			31-Mar-11
		$			$
Operating Activities
Net Income (loss)		(99,023	)		76,532
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		3,028			4,590
Common stock issued for services		12,000			-
Changes in operating assets and liabilities:
Accounts receivable and other receivables		(2,409	)		36,842
Prepaid expenses and deposits		-			(75,000	)
Accounts payable		15,181			45,265
Accounts Payable – Related Parties		6,964			2,299
Accrued liabilities		(6,186	)		24,409
Deferred revenue		-			(31,348	)
Net Cash Used in Operating Activities		(70,445	)		83,589
Financing Activities
Payments on bank indebtedness		(391	)		-
Proceeds from convertible debt		45,000			-
Payments on note payable – related party		-			(70,000	)
Net Cash Provided by Financing Activities		44,609			(70,000	)
Increase (Decrease) In Cash		(25,836	)		13,589
Cash - Beginning of Period		27,242			2,485
Cash - End of Period		1,406			16,074
Supplemental Disclosures:
Interest paid		1,661			3,272
Income tax paid		-			–
(The accompanying notes are an integral part of these unaudited financial statements)

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Global Security Agency, Inc.

Notes to the Unaudited Financial Statements

1. Nature of Business

The Company was incorporated in Nevada on September 27, 2006 under the name Belvedere Resources Corporation. On January 15, 2010, the Company incorporated a wholly-owned subsidiary, Global Security Agency, Inc.(“we”, “our”, the “Company” or ““Global Security”). On January 25, 2010, the Company completed a merger with Global Security and assumed the subsidiary’s name by filing Articles of Merger with the Nevada Secretary of State. Global Security was incorporated entirely for the purpose of effecting the name change and the merger did not affect the Company’s Articles of Incorporation or corporate structure in any other way. The Company’s principal business is in the security solutions and risk management services industry. The Company was formerly an exploration stage company involved in mineral exploration. During the year ended December 31, 2010, the Company generated significant revenues from its business operations and is no longer considered an exploration stage company.

2. Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited 2011 annual financial statements and notes thereto. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure required in the Company’s 2011 annual financial statements have been omitted.

3. ~~Loan~~ Going ~~Payable~~Concern

InThe ~~February~~Company ~~2012,~~has ~~the~~incurred ~~Company~~a ~~issued~~net anloss ~~unsecured~~and ~~convertible~~negative ~~note~~operating incash flows during the ~~principal~~six ~~amount~~months ofended ~~$45~~June 30,~~000~~ ~~bearing~~2012. ~~interest~~These atfactors 8%raise ~~per~~substantial ~~annum~~doubt ~~and~~about ~~maturing~~the ~~November~~Company's ~~30,~~ability ~~2012~~to continue as a going concern. The ~~note~~Company's ~~cannot~~management beis ~~converted~~implementing ~~for~~plans to sustain the ~~first~~Company’s ~~180~~cash ~~days~~flow ~~after~~from ~~which~~operating itactivities isand/or ~~convertible~~acquire atadditional acapital ~~price~~funding. ~~equal~~The tofinancial ~~58%~~statements ofdo ~~the~~not ~~trading~~include ~~price~~any ofadjustments ~~the~~that ~~Company’s~~might ~~shares~~be onnecessary if the ~~OTC~~Company ~~Bulletin~~is ~~Board~~unable onto ~~the~~continue ~~conversion~~as ~~date~~a going concern.

~~The~~4. Loans ~~Company can prepay the note as follows:~~Payable

In February 2012, the Company issued an unsecured convertible note in the principal amount of $45,000 bearing interest at 8% per annum and maturing November 30, 2012. In March 2012, the Company issued an unsecured convertible note which was funded in April 2012 in the principal amount of $45,000 bearing interest at 8% per annum and maturing December 26, 2012. In May 2012, the Company issued an unsecured convertible note in the principal amount of $30,000 bearing interest at 8% per annum and maturing February 11, 2013. The notes cannot be converted for the first 180 days after which they are convertible at a price equal to 58% of the trading price of the Company’s shares on the OTC Bulletin Board on the conversion date.

The Company can prepay each of these notes as follows:

First 30 days - 115% of principal plus interest

31-60 days - 120% of principal plus interest

61-90 days - 125% of principal plus interest

91-120 days - 130% of principal plus interest

121-150 days - 135% of principal plus interest

151-180 days - 140% of principal plus interest

There is no right of prepayment after 180 days.

4In June 2012, the Company issued an unsecured convertible note in the principal amount of $15,000 bearing interest at 8% per annum. ~~Related~~ The ~~Party~~principal ~~Transactions~~amount of the note is not repayable for 360 days after which the principal will remain payable until repaid in full except for any principal which is converted. The note can be converted in part or in whole after 360 days at $0.15 per share. Since the note could not be converted on June 30, 2012, the conversion option was not evaluated for liability classification or a beneficial conversion feature.

As of March 31, 2012, the Company owed three officers a total of $174,027 for certain trade payables paid by them on behalf of the Company.

F-4

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5. ~~Common~~Related ~~Stock~~Party Transactions

OnAs ~~March~~of 17June 30, 2012, the Company ~~issued~~owed ~~200,000~~three ~~shares~~officers ~~with~~ a ~~fair~~total ~~value~~ of $~~0.06 per share to DACC Associates~~167,296 ~~Inc.~~ for ~~services~~certain astrade ~~part~~payables ofpaid aby ~~strategic~~them ~~alliance~~on ~~agreement~~behalf ~~entered in March 2012. The fair value~~ of ~~$12,000 was expensed during~~ the ~~three months ended March 31, 2012~~Company.

6. ~~Stock~~Common ~~Options and Warrants~~Stock

~~During~~On ~~2010~~March 17, ~~661~~2012,~~000~~ ~~warrants~~the ~~were~~Company issued in200,000 ~~conjunction~~shares with ~~sales~~a offair ~~common~~value ~~stock. All~~of ~~warrants issued are exercisable at~~ $0.7506 ~~for~~per ~~the~~share ~~first~~to ~~year~~DACC ~~and~~Associates, $1Inc.00 for ~~the~~services ~~second~~as ~~year. The~~part ~~aggregate~~of ~~intrinsic~~a ~~value~~strategic ofalliance ~~these~~agreement ~~warrants~~entered ~~was~~in $0March ~~and~~2012. ~~the~~The ~~weighted~~fair ~~average~~value ~~remaining~~of ~~life~~$12,000 was ~~0.46~~expensed ~~years~~during asthe ofsix ~~March~~months 31ended June 30, 2012.

On April 18, 2012, the Company issued 5,000,000 shares with a fair value of $0.0378 per share for settlement of $5,000 of accounts payable. The fair value of the shares exceeded the carrying value of the payable by $184,000 which was recognized as a loss on settlement of accounts payable and is included in general and administrative expenses for the six months ended June 30, 2012.

7. Stock Options and Warrants

During 2010, 661,000 warrants were issued in conjunction with sales of common stock. All warrants issued are exercisable at $0.75 for the first year and $1.00 for the second year. The aggregate intrinsic value of these warrants was $0 and the weighted average remaining life was 0.21 years as of June 30, 2012.

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Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

As used in this quarterly report: (i) the terms "we", "us", "our", and the “Company" mean Global Security Agency Inc., and (ii) all dollar amounts in this quarterly report refer to U.S. dollars unless otherwise indicated.

Cautionary Statement Regarding Forward-Looking Information

This quarterly report, any supplement to this quarterly report, and any documents incorporated by reference in this quarterly report, include “forward-looking statements”. To the extent that the information presented in this quarterly report discusses financial projections, information or expectations about our business plans, results of operations, services or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as “intends”, “anticipates”, “believes”, “estimates”, “projects”, “forecasts”, “expects”, “plans” and “proposes”. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These include, among others, the risks and uncertainties outlined under the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of this quarterly report, many of which are beyond our control.

These forward-looking statements include, but are not limited to, the following:

·	statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the notes to our financial statements, concerning our results of operations, financial condition and our ability to finance our business;

·	statements concerning our operations; and

·	statements throughout concerning our business and the markets for our common stock.

Factors that could cause actual results to differ materially include, but are not limited to the following:

·	our anticipated strategies for growth;

·	our ability to manage our planned growth;

·	our need for additional capital to expand our operations;

·	our dependence on key personnel;

·	our ability to compete effectively with competitors that have greater financial, marketing and other resources; and

·	risks related to government regulations and approvals.

The forward-looking statements made in this quarterly report relate only to events or information as of the date on which the statements are made in this quarterly report. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this quarterly report and the documents that we reference in this quarterly report and have filed as exhibits to the quarterly report with the understanding that our actual future results may be materially different from what we expect. You should not rely upon forward-looking statements as predictions of future events.

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Other sections of this quarterly report include additional factors which could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties. We cannot assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should carefully review the reports and other documents we file from time to time with the SEC.

Our Business

We are security solutions and risk management services company. We offer a wide range of security and risk management services for individuals, corporations and other entities. Our services include assessments, training, crisis management, protection, support and intelligence. We also operate a training facility at which we train people in a number of security related areas.

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We operate our business through a network of consultants. Our consultants are experts in the field of crisis management with significant government, military, foreign services and private industry experience, and are located around the world. Our consultants are experienced in all aspects of the services we provide.

We recently fulfilled our commitments under certain of our contracts resulting in a decrease in revenues during the three and six months ended ~~March~~June 3130, 2012. While we are currently negotiating a multi phase contract with an international government and also expect to enter into agreements to provide protection services to certain corporations, cruise lines and a yachting club, we have also shifted our focus to creating alliances with other companies that have in place or are negotiating significant security services related contracts and require our services. We believe these alliances will significantly increase our revenues going forward.

In that regard, in March 2012, we entered into a strategic alliance with DACC Associates, Inc. (“DACC”) pursuant to which we will become the primary contractor that DACC will recommend to its clientele. DACC’s staff has over 25 years of high-level experience in security administration worldwide. DACC’s history of success includes domestic and international work with numerous US government entities such as the United States Agency for International Development; the White House and Executive Office of the President; the Department of Homeland Security; the Department of Defense; the Department of Health and Human Services; and the Transportation Security Administration. In addition to direct support to US federal entities, all staff has worked extensively with non-US governments, United Nations entities, and private corporations. DACC Associates is a preferred supplier for security and materials to UN agencies worldwide with an extensive network.

We also operate a facility in North Zulch, Texas that serves as a tactical training center for Swat Teams, Sky Marshals, Federal agencies, our agents and operatives and law enforcement, among others. We provide training in, among other things, shooting, sniper shooting, hand-to-hand combat, knives, ambushes, tactical raids, medical trauma and defensive tactics.

In the second ~~quarter~~half of 2012, we plan to establish the Global Services Academy, a learning institution based in Conroe, Texas designed to service and train agents, contractors and other individuals in a wide range of safety security practices, including Advanced Police/Law Enforcement, Private Investigations, Armed Details, Personal Executive Protection, Human Resource requirements, Safety Specialist, Fire and Chemical Hazards, Computer Forensics and other security related practices and protocols, as well as specialized training to obtain a unique designation as a “Safety Security Specialist” certified in occupational safety, health and other related safety and operational concerns of the Occupational Safety and Health Administration (“OSHA”). We expect formal approval for the academy from the State of Texas in the next 60 days. However, there can be no assurance that such formal approval will be received or that the academy will be launched.

Our plan of operations over the next 12 months is to develop our business domestically and internationally, and continue to develop our academy and build additional more advanced training facilities. We anticipate we will require approximately $5 million to pursue our plans over the next 12 months. We plan to obtain the necessary funds from cash flow from operations, and equity or debt financings, if necessary. However, there can be no assurance that we will be able to obtain any required additional financing. If we are not able to obtain any required financing, we may be required to scale back our expansion plans or eliminate them altogether.

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See our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC for more information.

Results of Operations

The following discussion and analysis of our results of operations and financial condition for the three and six months ended ~~March~~June 3130, 2012 should be read in conjunction with our interim financial statements and related notes included in this quarterly report, as well as our most recent annual report on Form 10-K for the year ended December 31, 2011 filed with the SEC.

Three Months Ended ~~March~~June 3130, 2012 Compared to Three Months Ended ~~March~~June 3130, 2011

Revenues

Revenues from personal protection and private investigation services decreased to $212,~~982~~175 in the three months ended ~~March~~June 3130, 2012 from $~~531~~395,~~497~~297 in the three months ended ~~March~~June 3130, 2011, due to reduced operations as described above. ~~Our cost of sales in the three months ended March 31, 2012 was $2,617, compared to $166,762 in the prior period, and related primarily to consultants engaged to provide our services.~~

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Expenses

For the three months ended ~~March~~June 3130, 2012, total operating expenses decreased to $~~118~~334,~~865~~081 from $~~426~~404,~~746~~325 for the same period in the prior ~~period~~year, due to reduced operations. ~~During~~Our ~~2011,~~cost anof ~~agreement~~sales ~~with~~in athe ~~consultant~~three ~~was~~months ~~terminated~~ended byJune ~~mutual~~30, ~~consent~~2012 ~~resulting~~was in$239, ~~fees~~compared ~~paid~~ to ~~consultants~~$167,261 offor $0the same period in the ~~current~~prior ~~period~~year, ~~compared~~and torelated ~~fees~~primarily to consultants ofengaged ~~$47,300~~to inprovide ~~the~~our ~~prior period~~services. General and administrative expenses related to our operations ~~decreased~~increased to $15248,~~398~~241 in the current period from $4880,~~441~~767 in the prior ~~period~~year due to ~~reduced~~a ~~operations~~non-cash loss on settlement of accounts payable in the current period. Legal and accounting expenses increased to $6042,~~197~~264 in the three months ended ~~March~~June 3130, 2012 from $1936,~~800~~088 in the prior period, primarily due to increased costs related to our filing obligations with the SEC. Salaries paid to employees and to our officers decreased to $1215,~~600~~995 and $0, respectively, in the current period from $6756,~~252~~002 and $36,000, respectively, in the prior period, primarily due to a reduction in the number of our employees. Our selling expenses ~~decreased~~increased to $17,~~862~~500 in the current period from $2514,~~260~~932 in the prior period due to ~~reduced~~increased promotional activities.

We generated an operating loss of $96331,~~883~~906 in the three months ended ~~March~~June 3130, 2012, compared to ~~operating income of~~ $~~104~~9,~~751~~028 in the prior ~~period~~year.

Net Income

For the three months ended ~~March~~June 3130, 2012, our net loss was $99332,~~023~~306, compared to ~~net income of~~ $766,~~532~~856 for the three months ended ~~March~~June 3130, 2011.

Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011

Revenues

Revenues from personal protection and private investigation services decreased to $24,157 in the six months ended June 30, 2012 from $926,794 in the six months ended June 30, 2011, due to reduced operations as described above.

Expenses

For the six months ended June 30, 2012, total operating expenses decreased to $453,246 from $834,794 in the prior period, due to reduced operations. Our cost of sales in the six months ended June 30, 2012 was $2,856, compared to $328,847 in the prior period, and related primarily to consultants engaged to provide our services. General and administrative expenses related to our operations increased to $276,040 in the current period from $185,946 in the prior period due to a non-cash loss on settlement of accounts payable in the current period. Legal and accounting expenses increased to $102,379 in the six months ended June 30, 2012 from $55,889 in the prior period, primarily due to increased costs related to our filing obligations with the SEC. Salaries paid to employees and to our officers decreased to $28,595 and $0, respectively, in the current period from $123,254 and $72,000, respectively, in the prior period, primarily due to a reduction in the number of our employees. Our selling expenses decreased to $23,343 in the current period from $41,809 in the prior period due to reduced promotional activities.

We generated an operating loss of $429,089 in the six months ended June 30, 2012, compared to operating income of $92,000 in the prior period.

Net Income

For the six months ended June 30, 2012, our net loss was $431,629, compared to net income of $69,277 for the six months ended June 30, 2011.

Liquidity and Capital Resources

As of ~~March~~June 3130, 2012, we had cash of $1,~~406~~359, total assets of $1915,~~018~~768,~~162,~~ total liabilities of $~~560~~602,~~920~~132, working capital of $~~431~~222,~~852~~449 and an accumulated deficit of $~~206~~538,~~182~~788.

For the three months ended March 31, 2012, operating activities used cash of $70,445, compared to providing cash of $83,589 in the prior period. An increase in accounts receivable and other receivables used cash of $2,409 in the current period, compared to a decrease in the same providing case $36,842 in the prior period. An increase in accounts payable and accounts payable to related parties provided cash of $15,181 and $6,964, respectively, in the current period, compared to $45,265 and $2,299, respectively, in the prior period. A decrease in accrued liabilities used cash of $6,186 in the current period, compared to an increase in the same providing cash of $24,409 in the prior period.

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For the ~~three~~six months ended ~~March~~June 3130, 2012, ~~and~~operating ~~2011~~activities used cash of $160,094, ~~there~~compared ~~were~~to noproviding ~~investing~~cash ~~activities~~of $104,500 in the prior period. An increase in accounts receivable used cash of $363 in the current period, compared to using cash of $173,408 in the prior period. An increase in accounts payable provided cash of $20,191 in the current period, compared to $195,111 in the prior period. A decrease in accrued liabilities used cash of $5,043 in the current period, compared to an increase in the same providing cash of $36,959 in the prior period.

~~During~~For the ~~three~~six months ended ~~March~~June 3130, 2012, ~~financing~~there ~~activities~~were ~~provided~~no ~~cash~~investing ~~of $44,609 primarily due to proceeds from a loan~~activities. For ~~During~~ the ~~three~~six months ended ~~March~~June 3130, 2011, ~~financing~~investing activities used cash of $703,~~000~~759 infor ~~connection with~~ the ~~repayment~~purchase of ~~debt~~property and equipment.

During the six months ended June 30, 2012, financing activities provided cash of $134,211 primarily due to proceeds from loans. During the six months ended June 30, 2011, financing activities used cash of $70,000 in connection with the repayment of debt.

The Company has incurred a net loss and negative operating cash flows during the six months ended June 30, 2012. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's management is implementing plans to sustain the Company’s cash flow from operating activities and/or acquire additional capital funding.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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As of the end of the period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective to ensure that information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms due to the following deficiencies:

1.	Management override of existing controls is possible given our small size and lack of personnel.

2.	We do not have a system in place to review and monitor internal control over financial reporting. We maintain an insufficient complement of personnel to carry out ongoing monitoring responsibilities and ensure effective internal control over financial reporting.

In light of the existence of these control deficiencies, our management concluded that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis by our internal controls.

Management is currently evaluating remediation plans for the above control deficiencies. Management plans to enhance our risk assessment, internal control design and documentation and implement other procedures in the internal control function.

Changes in Internal Control

Other than as described above, during the three months ended ~~March~~June 3130, 2012, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material pending legal proceedings and are not aware of any legal proceedings that have been threatened against us. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or securityholder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. (Removed and Reserved)

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number		Exhibit Description
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

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

Date: May 7, 2012	GLOBAL SECURITY AGENCY INC.
Date: August 20, 2012	GLOBAL SECURITY AGENCY INC.
	By:	/s/Larry E. Lunger
	By: /s/ Larry E. Lunger
	Larry E. Lunger	~~Larry E. Lunger~~
	Chief Executive Officer	~~Chief Executive Officer~~

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