NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF ACCOUNTING POLICIES

The Company began business as Dyna Tour Corporation, which was formed in Illinois on November 1, 1980. Dyna Group International, Inc. ("Dyna Group") was incorporated in Nevada on August 21, 1986 for the purpose of combining the business of Dyna Tour Corporation with a public shell, Red Creek Investments, Inc. Dyna Group operates under the name of its wholly-owned subsidiary, Great American Products, Ltd., a Texas Limited Partnership ("Great American"). Great American is owned 99% by Dyna Group and 1% by a Texas Limited Liability company also owned by Dyna Group.

Great American designs, manufactures and markets lines of consumer and commercial products, including belt buckles, model miniatures, key chains, picture frames and pewter decorated products.

About 90% of manufacturing is done by a Mexican company, Promociones GAP, S.A. de C.V. ("Promociones GAP"), which is 40% owned by Great American.

Basis of Presentation. The consolidated financial statements include the accounts of Dyna Group and Great American after the elimination of intercompany transactions. Great American owns 40% of Promociones GAP, which it accounts for under the equity method.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as certain financial statement disclosures. While management believes that the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from these estimates.

Cash Equivalents. Highly liquid investments with original maturities of three months or less are considered cash equivalents. There were no cash equivalents as of December 31, 2004 and 2003.

Revenue Recognition. Revenue is recognized when the earning process is complete and the risks and rewards of ownership have transferred to the customer, which is generally considered to have occurred upon shipment of the finished product. Great American records rebates given to customers as a reduction of revenue and as a liability, based on estimates of the amounts ultimately expected to be paid or refunded to customers. Customers have the right of return on damaged products. Returns have been historically minimal and no amount has been reserved for returns.

Allowance For Doubtful Accounts. Great American analyzes current accounts receivable for an allowance for doubtful accounts based on historical bad debt, customer credit-worthiness, the current business environment and historical experience with the customer. The allowance includes specific reserves for accounts where collection is deemed to be no longer probable.

Inventories. Inventories are valued at the lower of first-in, first-out (FIFO) cost or market.

Long-lived Assets. Property and equipment are stated on the basis of historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Major renewals and improvements are capitalized, while minor replacements, maintenance and repairs are charged to current operations.

Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. There were no impairment losses in 2004 or 2003.

Income Taxes. Income tax expense is based on reported earnings before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, and are measured by applying enacted tax rates in effect in years in which the differences are expected to reverse.

Earnings per Share. Basic earnings per share equals net earnings divided by weighted average shares outstanding during the year. Diluted earnings per share includes the impact of common stock equivalents using the treasury stock method when the effect is dilutive. There were no common stock equivalents during 2004 or 2003.

Foreign currency. Great American's joint venture has the U.S. dollar designated as their functional currency because most transactions, including all raw material purchases and all sales to Great American are conducted in U.S. dollars. Transactions conducted in the local currency are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for assets and liabilities. Income and expense elements are remeasured at average rates that approximate the rates in effect on the transaction dates. Equity transactions are remeasured at historical rates.

Recently issued accounting pronouncements. Great American does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its financial position, results of operations or cash flow.

Reclassifications. Certain prior year amounts have been reclassified to conform with the current year presentation.

                                       2004         2003
                                    ----------   ----------
Pewter manufactured items           $  509,060   $  550,266
Items purchased for resale           1,257,891    1,011,255
Raw material - pewter                  172,597      276,640
Supplies                               353,841      350,801
                                    ----------   ----------
                                    $2,293,389   $2,188,962
                                    ==========   ==========

The amounts for inventory as of December 31, 2004 and 2003 are net of an inventory obsolescence allowance of $801,410 and $1,413,659, respectively.

Changes in inventory obsolescence allowance are as follows:

                                         2004        2003
                                    ----------  -----------
Beginning balance                   $1,413,659   $1,454,721
Add:  reserve additions                208,810      505,687
Less: items fully reserved at
      beginning of year, but
      - sold during year              (323,251)    (231,363)
      - melted down during year       (497,808)    (315,386)
                                    ----------   ----------
                                    $  801,410   $1,413,659
                                    ==========   ==========

NOTE 3 - INVESTMENT IN PROMOCIONES GAP

Great American's 40 percent investment in Promociones GAP is accounted for using the equity method.

Great American reports its investment in Promociones GAP as a long-term asset, adjusted for its share of earnings each reporting period. Promociones GAP manufactures about 90% of Great American's in-house produced product line and Great American represents about 95% of the total revenues of Promociones GAP.

Distributions from profits during 2004 and 2003 received by Great American were $144,000 each year. Great American's share of earnings including such distributions was $197,693 and $167,132 for 2004 and 2003, respectively.

Financial information for Promociones GAP accounted for by the equity method follows:

Financial Condition
-------------------                         2004         2003
                                         ----------   ----------
     Current assets                      $  606,643   $  783,668
     Non-current assets                     727,709      723,676
     Current liabilities                    567,754      891,651
     Stockholders equity                    766,598      615,693

Results of Operations
---------------------                       2004         2003
                                         ----------   ----------
     Sales                               $3,285,431   $2,651,107
     Gross profit                           504,500      616,635
     Net income                             463,081      417,830

                          Depr. Lives       2004         2003
                        --------------   ----------   ----------
Leasehold improvements   7 to 40 years  $   348,046  $   348,046
Machinery and equipment        7 years      874,028      870,477
Vehicles                       5 years       89,499       86,708
Molds and dies                 3 years      952,638    3,218,788
                                        -----------   ----------
                                          2,264,211    4,524,019
Less:  accumulated depreciation          (1,521,857)  (3,709,417)
                                        -----------   ----------
                                       $    742,354  $   814,602
                                        ===========   ==========

Depreciation expense was $260,716 and $277,127 for 2004 and 2003, respectively.

The building and leasehold improvements represent capital expenses to Great American's office and manufacturing facility in New Braunfels, Texas. This facility is owned by the majority shareholder of Dyna Group, and is leased to Dyna Group's wholly-owned subsidiary Great American under a lease expiring in 2010 (see Note 9). The building and certain improvements are depreciated over lives of up to 40 years because the landlord/stockholder has guaranteed to extend the lease for that period or reimburse Great American for the unamortized cost of the improvements if the lease ever expired before that time.

NOTE 5 - BANK REVOLVING LINE OF CREDIT

Great American maintains a credit line with State Bank. This line expires on July 31, 2005, and the total line is the lesser of $2,000,000 or 80% of current receivables and 50% of inventory. Interest is at Bank's prime. The line of credit is collateralized by substantially all assets. $0 and $451,225 was owed as of December 31, 2004 and 2003, respectively.

NOTE 6 - NOTE PAYABLE TO STOCKHOLDER

This note is collateralized by a second line (subordinate to the State Bank credit arrangement described above) on all assets and carries interest at 8.5%. The balance of $48,827 plus interest of $4,571 was paid in full on February 1, 2004. At December 31, 2004 and 2003, the balance was $0 and $48,827, respectively.

                                         2004         2003
                                     ----------  ----------
Current income tax                   $  473,656  $  268,377
Deferred income tax (benefit)           (19,564)     44,483
                                     ----------  ----------
                                     $  454,092  $  312,860
                                     ==========  ==========

Deferred tax assets and liabilities reflect the future tax consequences of events that have already been recognized in the consolidated financial statements and income tax returns. At December 31, 2004 and 2003 deferred tax assets and liabilities consisted of the following:

                                         2004        2003
                                     ----------  ----------
Non-current tax liabilities          $  (96,645) $ (150,425)
Current assets                            2,713      36,931
                                     ----------  ----------
     Total                           $  (93,932) $ (113,494)
                                     ==========  ==========

The following is a reconciliation of the effective income tax rate:

                                                   2004        2003
                                                 --------    --------
United States federal statutory income tax rate      34.0%       34.0%
Increase (decrease) in tax rate resulting from:
  Charitable contributions carried forward           (2.7)          -
  Non taxable foreign profits                        (1.3)          -
  Other                                                 -        (1.0)
                                                 --------    --------
Effective tax rate                                   30.0%       33.0%
                                                 ========    ========

The significant components of deferred tax assets and liabilities at December 31, 2004 and 2003 were as follows:

                                              2004        2003
                                           ---------   ---------
Deferred tax assets:
  Unused charitable contributions          $       -   $  26,997
  Bad debts                                    2,713       9,934
                                           ---------   ---------
     Total deferred tax assets                 2,713      36,931
                                           ---------   ---------
Deferred tax liabilities
  Tax over book depreciation                  76,702      66,691
  Unrepatriated foreign profits               19,943      83,734
                                           ---------   ---------
    Total deferred tax liabilities            96,645     150,425
                                           ---------   ---------
  Net deferred tax liabilities             $ (93,932)  $(113,494)
                                           =========   =========

NOTE 8 - EMPLOYEE BENEFIT PLAN

Great American has a 401K plan for eligible employees. Contributions to the plan are determined on a discretionary basis by the Board of Directors. Great American made contributions of $30,830 and $25,666 during 2004 and 2003, respectively.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Great American leases its facility under an operating lease agreement with its majority stockholder which expires in 2010. Total rent expense was $215,000 and $222,084 in 2004 and 2003, respectively. Total minimum rental commitments as of December 31, 2004 are as follows: $226,403 in 2005, $237,723 in 2006, $249,609 in 2007 and $826,235 thereafter.

Great American signs royalty agreement guarantees due to sports organizations and other commercial entities. Total minimum commitments under these guarantees are less than $20,000 as of December 31, 2004 and 2003.

NOTE 10 - FOREIGN SALES

Great American sells to Canada and various other countries. Total sales to Canada and other countries were $111,311 and $232,145 in 2004, and $141,916 and $113,412 in 2003.

NOTE 11 - MAJOR CUSTOMERS AND VENDORS

Great American sold 12 percent and 18 percent of its total sales to one customer in 2004 and 2003, respectively. Great American purchased 10 percent of its raw materials from two key vendors in 2004 and 11 percent of its raw materials from one key vendor in 2003, respectively. No other customer nor vendor accounted for 10 percent of sales or purchases during 2004 or 2003.