UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D. C. 20549   FORM 10-QSB   SQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2006  £TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission file number 000-51254   Great American Family Parks, Inc. (Exact name of small business issuer as specified in its charter)  Nevada91-0626756(State or other jurisdiction of
incorporation or organization)(I.R.S. Employer
Identification No.)   208 South Academy Avenue, Suite 130
Eagle, Idaho 83616 
(Address of principal executive offices)  (208) 342-8888 (Issuer's telephone number)  Copies to: 
Richard A. Friedman, Esq. 
Sichenzia Ross Friedman Ference LLP 
1065 Avenue of the Americas 
New York, New York 10018 
Phone: (212) 930-9700 
Fax: (212) 930-9725  Check whether the issuer (1) has 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 £  No S  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes £  No S  The number of shares of the issuer's outstanding common stock on August 6, 2006 was 51,146,537.  Transitional Small Business Disclosure Format (check one): Yes £  No S    1    PART I  FINANCIAL INFORMATION    Item 1. Financial Statements    DescriptionPage No.FINANCIAL INFORMATION:Financial StatementsConsolidated Balance Sheets at June 30, 2006 (Unaudited)F-1Consolidated Statement of Operations (Unaudited)F-2Consolidated Statements of Cash Flows (Unaudited)F-3Notes to Consolidated Financial Statements (Unaudited)F-4      2    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - unaudited June 30, 2006  ____________________________________________________________________________________________   ASSETSCURRENT ASSETSCash$146,564Accounts receivable - trade2,830Inventory139,879Prepaid expenses31,597Total Current Assets320,870PROPERTY and EQUIPMENT -net of accumulated depreciation5,735,796OTHER ASSETSDeposits800Franchise fees10,000Loan fees - net of amortization25,640Intercompany advances - affiliates41,60078,040$6,134,706LIABILITIES and STOCKHOLDERS' EQUITYCURRENT LIABILITIESAccounts payable$438,544Accounts payable - related parties56,979Current maturities - incentive program advances10,687Current maturities - note payable28,339Current maturities - mortgage payable - theme park55,001Total Current Liabilities689,550LONG TERM LIABILITIES -net of current maturitiesIncentive program advances28,641Note payable670,425Mortgage payable - theme park2,214,8382,913,904STOCKHOLDERS' EQUITYCommon stock300,000,000 shares authorized, at $.001 par value;51,146,537 shares issued and outstanding51,146Capital in excess of par value3,384,650Retained earnings (deficit)(904,544)2,531,252$6,134,706   The accompanying notes are an integral part of these financial statements.  F-1    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS -unaudited For the Three and Six Months Ended June 30, 2006 and 2005 ____________________________________________________________________________________________  Three MonthsSix MonthsJun 30,Jun 30,Jun 30,Jun 30,2006200520062005SALES$2,964,224$1,714,330$4,832,507$2,909,271COST OF SALES1,870,8501,412,6893,440,8942,425,786Gross Profit1,093,374301,6411,391,613483,485OPERATING EXPENSESAdministrative783,832533,2071,133,253723,195Depreciation & amortization93,21226,604120,45852,532877,044559,8111,253,711775,727NET PROFIT (LOSS) FROMOPERATIONS216,330(258,170)137,902(292,242)OTHER INCOME AND EXPENSESOther income2,8353,05814,0503,058Interest expense(81,447)(86,543)(135,067)(98,920)NET PROFIT (LOSS)$137,718$(341,655)$16,885$(388,104)NET PROFIT (LOSS) PER COMMON SHAREBasic and diluted$-$(.01)$-$(.01)AVERAGE OUTSTANDING SHARES -(stated in 1,000's)Basic51,14633,18451,14633,184Diluted58,13446,37158,13446,371     The accompanying notes are an integral part of these financial statements.    F-2    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2006 and 2005 ____________________________________________________________________________________________    Jun 30,Jun 30,20062005CASH FLOWS FROMOPERATING ACTIVITIESNet profit (loss)$16,885$(388,104)Adjustments to reconcile net loss tonet cash provided by operating activitiesDepreciation & amortization120,45853,309Issuance of capital for expenses6,20017,500Interest on value of contingent debt-752Changes inAccounts receivable18,45931,012Inventory(26,106)(55,724)Prepaid expenses & deposits(33,265)37,470Accounts payable104,063244,282Incentive program advances-(4,119)Net Change From Operations206,694(63,622)CASH FLOWS FROM INVESTINGACTIVITIESPurchase of property & equipment(58,386)(2,388,651)CASH FLOWS FROM FINANCINGACTIVITIESProceeds from issuance of capital stock-2,852,221Payments on notes payable(64,957)(36,520)(64,957)2,815,701Net Change in Cash83,351363,428Cash at Beginning of Period63,21329,813Cash at End of Period$146,564$393,241SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATIONCash paid for interest$135,067$98,920Issuance of 70,000 common shares for expenses17,500    The accompanying notes are an integral part of these financial statements.  F-3    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS June 30, 2006 ____________________________________________________________________________________________   1. ORGANIZATION  Great American Family Parks, Inc. (GAFP) (formally Royal Pacific Resources, Inc.) is a Nevada corporation formed during 2002 for the purpose of merging with Painted Deseret Uranium and Oil Company, Inc., a Washington corporation, incorporated in 1954, with the merger being completed on July 25, 2002.  On December 23, 2003 GAFP completed the acquisition of all member interests in Crossroads Convenience Center, LLC (CCC) from Great Western Parks LLC by the issuance of 27,067,000 shares of its common capital stock, representing 91.4% of the outstanding stock after the acquisition, which was accounted for as a reverse acquisition, in which Great Western Parks LLC was considered to be the acquirer of Royal Pacific Resources Inc. for reporting purposes. The outstanding stock of GAFP before the acquisition was 2,533,000 and after 29,600,000. The continuing operations of the business are those of CCC including its prior historical financial statements and the operations of GAFP from December 23, 2003. The financial statements show a retroactive restatement of CCCs historical members equity to reflect the equivalent number of shares of common stock issued in the acquisition.  Crossroads Convenience Center, LLC (CCC) was organized under the laws of the State of Idaho on June 18, 1998. CCCs primary business activity is operating a retail convenience center, which includes a Chevron gasoline station, and a convenience store in Nampa, Idaho.  On November 8, 2004, the Company entered into an Asset Purchase Agreement with Ron Snider & Associates, Inc. to purchase animals and other park property for an animal theme park in Pine Mountain Georgia, with an extended closing date to June 13, 2005.The Company organized a Georgia Corporation with the name of Wild Animal Safari, Inc., a wholly owned subsidiary, to receive the assets and to manage the animal theme park.  2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Accounting Methods  The Company recognizes income and expenses based on the accrual method of accounting.  Dividend Policy  The Company has not yet adopted a policy regarding payment of dividends.  Basic and Diluted Net Income (Loss) Per Share  Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise any common share rights unless the exercise becomes antidilutive and then only the basic per share amounts are shown in the report.     F-4    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________   2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued  Revenue Recognition  The major source of income is received in the form of cash sales from a convenience center and gas station, and a theme park. Revenue is recognized upon receipt of the cash from the sale of a product or service.  Advertising and Market Development  The company expenses advertising and market development costs as incurred.  Income Taxes  The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recorded, when it is more likely than not, that such tax benefits will not be realized.  CCC is a limited liability company with all tax attributes passing through to its members. Before the acquisition date of December 23, 2003, the income of CCC passed through to the former members. Accordingly, there is no provision for income taxes in the accompanying financial statements associated with the income of CCC prior to acquisition. After the acquisition by GAFP the income or loss of CCC passes through to GAFP, the sole member of CCC. On June 30, 2006, the Company and its subsidiaries had a net operating loss available for carry forward of $1,151,856. The tax benefit of approximately $346,000 from the loss carry forward has been fully offset by a valuation reserve because the use of the future tax benefit is doubtful since the Company is unable to project a reliable future net income. The loss carryforward expires beginning in the 2026.  Principles of Consolidation  The accompanying consolidated financial statements includes the accounts of GAFP, (parent) and its subsidiaries CCC, and Wild Animal Safari, Inc.  Revenues and expenses of GAFP are included for the period subsequent to December 23, 2003 and includes the accounts of CCC and Wild Animal Safari, Inc. from their inceptions. All material intercompany accounts and transactions have been eliminated.  Financial and Concentrations Risk  The Company does not have any concentration or related financial credit risks except for the accounts receivable, however, the Company considers the accounts to be fully collectable.    F-5    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________   2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued  Estimates and Assumptions  Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements.  Property and equipment  Property and equipment are stated at cost. Depreciation is computed on the straight-line method over the estimated useful lives of the assets, which range from five to thirty nine years. A summary is included below.  Land$  1,942,005Buildings and improvements3,378,764Equipment627,911Leased equipment223,728Animals403,698Less accumulated depreciation(840,310)Net$ 5,735,796  Inventory  Inventory consists of fuel, food, beverages, park supplies, and other convenience store items, and are stated at the lower of cost or market. Cost is determined on the first-in, first-out method.  Impairment of Long-Lived Assets  The Company reviews its major assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered to be impaired, the impairment will be recognized in an amount determined by the excess of the carrying amount of the asset over its fair value.  Financial Instruments  The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short term maturities.  Recent Accounting Pronouncements  The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.    F-6    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________________________  3.  INTEREST EXPENSE ON VALUE OF CONTINGENT DEBT ON MEMBER PROPERTY  In 1999, the Company obtained a loan for the acquisition and construction of its property and improvements. The lending agency required various forms of collateral to secure the debt, including a second deed of trust on real property owned by a member of CCC. The Company recognized a value of $50,000 for the use of the additional collateral. The amount is being amortized to interest expense over the 23 year life of the loan by an addition to the stockholders equity. The Company is currently seeking refinancing and a removal of the second deed of trust on the member property.  4. NOTE PAYABLE  During 1999, the Company entered into a note agreement with a lending institution to borrow $828,976 for the construction and start-up costs of the convenience store facility under the U.S. Small Business Administration guarantee program. The note is secured by a deed of trust in favor of the lender on the real property owned by the Company, the assignment of a life insurance policy on the managing members life, and a second Deed of Trust on real property owned by the managing member. The note is payable monthly with interest at the prime rate plus 5% and matures in August 2022. The total interest rate adjustment over the life of the loan is limited to either 5% below or above the initial rate of 8.25%.  At June 30, 2006, the scheduled future principal maturities for the note are as follows:  Year EndingJune 30Amount200628,339200729,715200831,158200932,671211034,257Thereafter542,624  5. MORTGAGE PAYABLE - THEME PARK  On November 8, 2004, the Company entered into an Asset Purchase Agreement with Ron Snider & Associates, Inc. to purchase animals and other park property for a theme park in Pine Mountain Georgia for $700,000, with an extended closing date of June 13, 2005. At closing the Company paid $350,000 and a promissory note for the balance. The promissory note includes interest at 7.5% per annum and will be payable in eighty-three monthly installments of principle and interest of $5,368. The Company also entered into a Real Estate Purchase Agreement with individuals and a partnership for the acquisition of the land underlying the theme park site, including the improvements, buildings, and fixtures for $4,000,000. The Company paid $2,000,000 and a promissory note for $2,000,000 for the balance at closing. The note for the purchase of the real property will bear interest at 7.5% per annum and will be payable in eighty-three monthly installments of principal and interest of $30,676. Both notes are secured by a first priority Security Agreement on the assets and a first Security Deed on the real estate.  F-7    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________  5. NOTE PAYABLE - THEME PARK - continued  On November 17, 2005 Wild Animal Safari, Inc. (subsidiary) completed the refinancing of the debt incurred on June 13, 2005, above, in the acquisition of the Wild Animal Safari theme park from Ron Snider & Associates, Inc. and related entities. This refinancing was obtained from Commercial Bank & Trust Company of Troup County in LaGrange, Georgia. As a result of this refinancing, Ron Snider & Associates, Inc. and its affiliated entities were paid in full and the liens which were held by those entities against the Wild Animal Safari theme park assets were released. In place of the original seven year financing, which was provided by the Snider entities, there is now a loan due by Wild Animal Safari, Inc. to Commercial Bank & Trust.  This new loan will be repaid in monthly installments based on a twenty-year amortization schedule. The interest rate on the new loan is 7.75% for the first five years. The interest rate will be renegotiated at the end of the initial five years of the payment term on November 17, 2010, but as part of the refinancing the bank has agreed to extend the payment term for an additional fifteen years after November 17, 2010, subject to no default. The new loan is secured by a first priority security agreement and a first priority security deed on the Wild Animal Safari theme park assets.  In addition, on November 17, 2005, Wild Animal Safari, Inc. (subsidiary) obtained a line of credit loan from Commercial Bank & Trust Company of Troup County for working capital purposes in the principal amount of $200,000. This line of credit loan is renewable annually, subject to the satisfactory performance by Wild Animal Safari, Inc. under the terms of the line of credit. It is also secured by a lien on the Wild Animal Safari theme park assets.  At June 30, 2006, the scheduled future principal maturities for the note are as follows:  Year EndingJune 30Amount200655,001200759,418200864,190200969,34521102,021,885   6. INVESTMENT INCENTIVE PROGRAM  In September 1999, the Company received $107,520 as an advance for the construction of a service station facility from Chevrons Investment Incentive Program. Under this program, the Company is required to sell 1,680,000 gallons (the base volume) of gasoline per year during the first four years of operation. If the Company sells less than the base volume, a repayment is required equal to $.02 per gallon times the deficiency. If the Company sells more than the base volume, the Company would receive an amount equal to $.02 per gallon times the excess with total payments including the initial advance not to exceed $160,000. After four years, no minimum gallons are required, and no further adjustments are made to the incentive. As of June 30, 2006, the Company had not sold the minimum gallons and has made repayments totaling $44,596 covering its sales deficiency through June 2006.  F-8    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________  6. INVESTMENT INCENTIVE PROGRAM- continued  If the Company discontinues the sale of Chevron branded products during the ten-year period after the start of operations (September 1999), the incentive advances under this program are required to be reimbursed, less 1/120 of such advance for each month elapsed during the ten-year period. Accordingly, the balance due under the incentive contract of $62,924 at September 2003 is being amortized on a straight line basis over the remaining term of the contract and is included in the Statement of Operations as a reduction to fuel cost of goods sold.  7. CAPITAL STOCK  On September 27, 2004, the Company issued 2,984,400 private placement common shares for cash, and 2,059,200 warrants under a Purchase Agreements dated June 10, 2004. Each warrant includes the right to purchase an additional common share at $.30 per share at any time within five years.  During June 2005 the Company completed an offering of 11,128,000 common shares for cash. Included as part of the sale were warrants to purchase 11,128,000 common shares at any time before June 23, 2010 at an exercise price of $.35. During June through December 2005 the Company issued 634,000 common shares for services and expenses at $.30.  On the date of this report none of the warrants had been exercised.  8. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES  Officer-directors and their controlled entities have acquired 39% of the outstanding common stock of the Company, and during the six months ended June 2006 the Company paid $103,400 in salaries to officers.  On June 30, 2006 the Company had made no interest, demand loans to affiliates of $41,600. The affiliation resulted by common officers in the affiliates and the Company.  Employment Agreements  On February 1, 2005, the Company entered into separate employment agreements with four officers which provides for base annual salaries of aggregate payments of $260,000, as compensation for the part-time employment of the officers until a second theme park is acquired. Each agreement has a base term of three years effective retroactively as of February 1, 2005 and provides for base annual salaries of $120,000 to Larry Eastland, the president and CEO, $40,000 to Dale Van Voorhis, the CFO, and $60,000 to James Meikle, President of the Theme Park. The agreements are renewable for additional period of two years, unless notice is given to the contrary. Upon the acquisition of a second theme park, the salaries will increase to aggregate payments of $330,000 and provides for base annual salaries of respectively $170,000, $60,000, and $100,000. With the acquisition of additional theme parks, salaries will be reviewed with consideration given to resulting increased work and responsibility. Health insurance is provided in the form of a Blue Cross Plan for two officers and their families.     F-9    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________  8. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES -continued  The president of the Company will receive an annual cash bonus based upon a percentage of our pre-tax income (as defined therein) for each fiscal year covered by the employment agreement at a percentage of 2%. No bonus is payable unless the Company earns pre-tax income in excess of $500,000. Each of the employment agreements also provides for the payment of additional severance compensation, in amounts based on a formula of not less than three times the executives then current base salary, at any time during the term when either of the following occurs: (i) the agreement is terminated by us without cause (as defined therein), or (ii) terminated by the executive due to a change in control (as defined therein). These agreements also entitle the officers to participate in Stock Option Plans. Upon hiring additional marketing personnel, we may enter into additional employment agreements, which we anticipate may contain similar terms to our existing employment agreements.  Consulting agreement  The Company entered into a consulting agreement with Ronald E. Snider, former owner of the theme park, effective upon the acquisition of the park, which provides for the sum of $300,000 over three years in monthly installments of $8,333 of which $4,163 will be paid in cash and the balance in common stock.  9. CONTINGENCIES  Painted Desert (see organization above) owned or controlled properties on private and public lands in several states in the Western United States for purposes of exploring for and developing commercial mineral deposits. The Companys efforts proved unsuccessful, and as of December 31, 1995, the Company had abandoned all of its interests in mineral and mining properties. The Company and its properties have been subject to a variety of federal and state regulations governing land use and environmental matters. The Company accrues liabilities relating to environmental damages and claims only when it is probable that such liabilities exist and their amounts can be reasonably estimated. During the 1970's, the Company held leasehold interests in two mining properties known as the Silver Strike Mine and the Blue Star Prospect located in Shoshone County of Northern Idaho, on which the Company participated in various exploration and mining activities. The Silver Strike Mine and Blue Star Prospect claim areas are currently listed by the Environmental Protection Agency as potentially contaminated sites and sources for potential contamination of drainages leading into the Coeur d Alene River Basin. The Company has not received any notification of a pending action or proceeding against the Company relating to environmental damages it may be responsible for. However, in recent years, certain other companies involved in mining activities on property interests upland of the Coeur d Alene River Basin have been identified as potentially responsible parties under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, and have entered into consent decrees with the EPA and the state of Idaho, concerning environmental remediation obligations and damages to natural resources in the Coeur DAlene River Basin. As of June 30, 2006, the Company has not accrued any amounts for the potential liability associated with any environmental claims because any potential claim amount is undeterminable.     F-10    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________  10. LIQUIDITY AND CAPITAL RESOURCES  Our audit report of the Company accompanying our financial statements for the year ended December 31, 2005, expressed substantial doubt about the Companys ability to continue as a going concern.  However, at the time of the audit report, we also indicated to the Company that the going concern opinion was based solely on the Companys negative working capital and did not reflect the Companys ability to support its operations from its revenues. As of June 30, 2006, we anticipate that the Companys revenues will be sufficient to support its operations over the next 12 months even if the funding necessary to complete further potential acquisitions does not materialize.  11. PURCHASE OF FOOD FRANCHISES  The Company completed two franchise agreements for food sales which includes an initial payment of $10,000 and royalties of 7% of the sales, to continue for five years. The initial payment will be amortized to expense over five years.  12. OPERATING SEGMENT DISCLOSURE  Included in the following are the condensed operating statements of Great American Family Parks, Inc (parent), CCC, and the animal theme park (subsidiaries) for the six months ended June 30, 2006.  Stated in 1,000's.  GAFP is the administrative division that serves CCC and the theme park.  CCC , a wholly owned subsidiary of the Company, which operates a retail convenience center, including a Chevron gasoline station, and a convenience store in Nampa, Idaho.  Wild Animal Safari, Inc., a wholly owned subsidiary of the Company, operates a wild animal theme park located in Pine Mountain, Georgia.The cost of sales shown for the theme park includes all direct costs, including supplies, park wages, animal food, truck expense, depreciation, and maintenance.  There were no inter-company operational transactions and no provision for income tax has been provided because a net operating loss carryforward is available to offset any profit.       F-11    GREAT AMERICAN FAMILY PARKS, INC. and SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2006 ____________________________________________________________________________________________   12. OPERATING SEGMENT DISCLOSURE -continued   GAFPCCCThemeAdjust-TotalParkmentsSALES$-$3,760$1,072$4,832COST OF SALES-3,3535623,915Gross Profit-407510917EXPENSESAdministration247264195706Depreciation and amortization350-53Interest-4194135250355289894NET PROFIT (LOSS)-before income tax$(250)$52$221$23    F-12      Item 2. Managements Discussion and Analysis  CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS  It should be noted that this Management's Discussion and Analysis of Financial Condition and Results of Operations may contain "forward-looking statements." The terms "believe," "anticipate," "intend," "goal," "expect," and similar expressions may identify forward-looking statements. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including the Company's dependence on weather-related factors, introduction and customer acceptance of new products, the impact of competition and price erosion, as well as supply and manufacturing restraints and other risks and uncertainties. The foregoing list should not be construed as exhaustive, and the Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation that the strategy, objectives or other plans of the Company will be achieved. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We undertake no duty to update this information. More information about potential factors that could affect our business and financial results is included in the section entitled "Risk Factors" of our Annual Report on Form 10-KSB for the year ended December 31, 2005 filed with the Securities and Exchange Commission on May 2, 2006. The following discussion should be read in conjunction with our consolidated financial statements provided in this quarterly report on Form 10-QSB.  OVERVIEW  Great American Family Parks is in the business of acquiring, developing and operating local and regional theme parks and attractions. We are in the process of building a family of parks primarily through acquisitions of small local or regional privately owned parks.  Our goal is to develop a series of compatible, but distinct entertainment and amusement products including themed amusement parks, associated products, food and beverage, and multimedia offerings.  The implementation of this strategy has begun with themed amusement parks and attractions.  Our business plan is to acquire existing properties with three criteria in mind:  · Properties that have an operating history and are profitable; · Properties where our management team believes the potential exists to increase profits and operating efficiencies; and · Properties where there is additional, underutilized land upon which to expand operations.  Additionally, it is our belief that we can best achieve growth by acquiring parks in stages. The first stage would entail acquiring parks with under $10 million in revenues moving up to larger parks until we have achieved $100 million in revenues.  Upon completion of this initial stage of acquisitions, we intend to reassess our position in the industry and determine the next set of goals. Our acquisition strategy will ensure that each acquisition can be readily integrated into our family of parks.  Having observed theme park companies that have grown by using what we consider to be a risky strategy, we intend to base our growth upon the existing assets and operating history of the acquisitions, rather than upon projected results.  It also is our belief that acquisitions should not unnecessarily encumber the Company with debt that cannot be justified by current operations.  By using a combination of equity, debt and other non-traditional financing options, we intend to carefully monitor shareholder value in conjunction with our pursuit of growth.  We plan to target properties located in and around middle markets listed among the 75 to 125 largest Standard Metropolitan Areas in the United States  a niche market of medium-sized urban areas. However, opportunities may arise which cause us to deviate from this strategy, as was the case with our acquisition of the Pine Mountain Wild Animal Park, which is located in the Atlanta Standard Metropolitan Area, one of the largest Standard Metropolitan Areas in the United States.  Great American Family Parks, Inc. is the parent corporation of the following wholly owned subsidiaries:  (1) GFAM Management Corporation, an Idaho corporation.  GFAM Management Corporation is responsible for overall management of all operating entities, which includes our Wild Animal Safari theme park, Crossroads Convenience Center LLC., and any additional theme parks we may acquire. GFAM Management Corporation does not generate any revenues separate from the operating units at present;  (2) Wild Animal Safari, Inc., a Georgia corporation that operates and owns the Wild Animal Safari theme park in Pine Mountain, Georgia.   3    (3) Crossroads Convenience Center LLC., an Idaho limited liability company that operates a fuel station and retail facility located next to The Idaho Center, a regional entertainment complex in the Boise, Idaho metropolitan area.  Crossroads Convenience Center LLCs revenues are derived from the sale of four primary groups of products: fuel; fast food; home and automobile accessories and souvenirs; miscellaneous items. Wild Animal Safari Inc.s revenues are primarily derived from sales of the following items at the Wild Animal Safari Park: (1) admission fees (2) food and beverage and related items; and, (3) gift store and specialty items.  RESULTS OF OPERATIONS  THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005  Revenues  Revenues increased $1,249,894 to $2,964,224 for the three months ended June 30, 2006, as compared to revenues of $1,714,330 for the three months ended June 30, 2005. The increase in revenues was due to two factors: the purchase of Wild Animal Safari, and additional purchasers of the products sold at our Crossroads Convenience Center complex. The increase in purchasers is due primarily to the development of the following facilities located within one mile of Crossroads Convenience Center complex: the largest regional auto mall in Idaho; the 7,500 student Boise State University campus; the doubling of offerings at The Idaho Center entertainment complex; three multi-story office buildings; a regional hospital complex; a hotel; renovation of the I-84 off-ramp and surrounding roads leading to the Crossroads Convenience Center and; the Walmart and Sams Club facilities currently under construction.  Cost of revenues increased $458,161 to $1,870,850 for the three months ended June 30, 2006, as compared to cost of revenues of $1,412,689 for the three months ended June 30, 2005. The increase in cost of revenues was due to the increase in the cost of fuel at Crossroads Convenience Center, and the cost of operations at Wild Animal Safari. The cost of fuel remains a challenging factor with inherent uncertainties as to the ultimate impact on our profits. To date, the evidence continues to suggest that customers will increase their total per visit purchase amounts irrespective of fuel prices, although this may not be true of potential future increases in fuel costs.  If our customers reallocate their dollars spent, this will most likely be to increase their fuel purchase amount and decrease their in-store purchases.  Since in-store purchases have a higher profit margin than fuel profits, this could mean an increase in total revenues accompanied by a decrease in profits.  However, the cost of fuel remains a variable which we will monitor carefully in the months to come.  Gross profit increased $791,733 to $1,093,374 for the three months ended June 30, 2006, as compared to $301,641 for the three months ended June 30, 2005.   This was due to a combination of:  · increased attendance and per capita spending at Wild Animal Safari, and · increased sales of fuel and in-store convenience sales at Crossroads Convenience Center.  Expenses  General, administrative and selling expenses increased $311,033 to $870,844 for the three months ended June 30, 2006, as compared to $559,811 for the three months ended June 30, 2005. The increase in general, administrative and selling expenses was due to the inclusion of new corporate expenses, the administrative costs of Wild Animal Safari, and compliance costs.  Our depreciation and amortization expense increased $66,608 to $93,212 for the three months ended June 30, 2006, as compared  to an increase from $25,928 to $52,532 for the three months ended June 30, 2005. This increase was due to amortization and depreciation expenses incurred by the Companys Wild Animal Safari, Inc. subsidiary for 2006. By comparison, the Company did not own the Wild Animal Safari theme park during the comparable period in 2005.  Net Profit/Loss  We posted a net profit of $137,718 for three months ended June 30, 2006, an increase of $479,373 as compared to a net loss of $341,665 for the three months ended June 30, 2005. The net profit is attributable to the profitability of the Companys Wild Animal Safari, Inc. subsidiary, which generated a net profit of $181,404 for the three months ended June 30, 2006. The net profit is also attributable to improved profitabilityof the Companys Crossroads subsidiary, as well asthe absence of purchase and organizational costs which were incurred in connection with the Companys purchase of the Wild Animal Safari theme park in June 2005, including legal, accounting and auditing, appraisal and other due diligence costs.   4    SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO SIX MONTHS ENDED JUNE 30, 2005  Revenues  Revenues increased $1,923,236 to $4,832,507 for the six months ended June 30, 2006, as compared to revenues of $2,909,271 for the six months ended June 30, 2005. The increase in revenues was due to two factors: the purchase of Wild Animal Safari, and additional purchasers of the products sold at our Crossroads Convenience Center complex. The increase in purchasers is due primarily to the development of the following facilities located within one mile of Crossroads Convenience Center complex: the largest regional auto mall in Idaho; the 7,500 student Boise State University campus; the doubling of offerings at The Idaho Center entertainment complex; three multi-story office buildings; a regional hospital complex; a hotel; renovation of the I-84 off-ramp and surrounding roads leading to the Crossroads Convenience Center and; the Walmart and Sams Club facilities currently under construction.  Cost of revenues increased $1,015,108 to $3,440,894 for the six months ended June 30, 2006, as compared to cost of revenues of $2,425,786 for the six months ended June 30, 2005. The increase in cost of revenues was due to the increase in the cost of fuel at Crossroads Convenience Center, and the cost of operations at Wild Animal Safari. The cost of fuel remains a challenging factor with inherent uncertainties as to the ultimate impact on our profits. To date, the evidence continues to suggest that customers will increase their total per visit purchase amounts irrespective of fuel prices, although this may not be true of potential future increases in fuel costs.  If our customers reallocate their dollars spent, this will most likely be to increase their fuel purchase amount and decrease their in-store purchases.  Since in-store purchases have a higher profit margin than fuel profits, this could mean an increase in total revenues accompanied by a decrease in profits.  However, the cost of fuel remains a variable which we will monitor carefully in the months to come.  Gross profit increased $908,128 to $1,391,613 for the six months ended June 30, 2006, as compared to $483,485 for the six months ended June 30, 2005. This was due to a combination of:  · increased attendance and per capital spending at Wild Animal Safari, and · increased sales of fuel and convenience sales in-store at Crossroads Convenience Center.  Expenses  General, administrative and selling expenses increased $410,058 to $1,133,253 for the six months ended June 30, 2006, as compared to $723,195 for the six months ended June 30, 2005. The increase in general, administrative and selling expenses was due to the inclusion of new corporate expenses, the administrative costs of Wild Animal Safari, and compliance costs.  Our depreciation and amortization expense increased $67,926 to $120,458 for the six months ended June 30, 2006, as compared to $52,532 for the six months ended June 30, 2005. This increase was due to depreciation and amortization related to the theme park.  Net Profit/Loss  We posted a net profit of $16,885 for six months ended June 30, 2006, an increase of $411,189 as compared to a net loss of $388,104 for the six months ended June 30, 2005. The decrease in net loss is attributable to the legal, accounting, appraisal and due diligence costs incurred in connection with the acquisition of the Wild Animal Safari park in June 2005. No such costs have been incurred in 2006.  Liquidity and Capital Resources  Our total current assets at June 30, 2006 were $6,134,706 including $146,564 in cash as compared with $404,989 in total current assets at June 30, 2005, which included cash of $142,553.  Additionally, we had stockholders equity in the amount of $2,531,252 at June 30, 2006 as compared to shareholder equity of $2,774,228 at June 30, 2005. The changes in both total assets and stockholder equity were primarily due to the completed purchase of the Wild Animal Safari theme park during 2005.  Our cash on hand increased $4,011 to $146,564 as of June 30, 2006, as compared to cash on hand of $142,553 at June 30, 2005. The Company intends to continue the development of its business interests; however, even though there is insufficient working capital necessary at present to be successful in this expansion effort, we will be able to support our operations over the next 12 months from our revenues even if the funding necessary to complete further potential acquisitions does not materialize.  The number of common shares outstanding increased from 44,382,537 shares at June 30, 2005 to 51,146,537 shares at June 30, 2006, an increase of 15%.   5    During the second quarter of 2005, we obtained funding needed to complete the purchase of Wild Animal Safari through a private placement of approximately 11,128,000 shares of our common stock and 11,128,000 warrants resulting in gross proceeds of approximately $3,338,400. We will require additional debt and/or equity funding in order to pursue our strategy of acquiring additional theme parks, which is our intended business plan.  On June 13, 2005, we completed our acquisition of the assets of Ron Snider & Associates, Inc. also known as Pine Mountain Wild Animal Park, located in Pine Mountain, Georgia. At closing, we paid $350,000 in cash and a promissory note for $350,000. The promissory note bears interest at 7.5% per annum and is payable in eighty-three monthly payments of principal and interest of $5,368. We also entered into a Real Estate Purchase agreement for the underlying land and all buildings, improvements and fixtures of the park for $4,000,000. We paid $2,000,000 in cash at closing and issued a promissory note for $2,000,000.  The note bore interest at 7.5% per annum and was payable in eighty-three monthly payments of principal and interest of $30,676. Both notes were secured by a first priority Security Agreement on the operating assets and a first Security Deed on the real estate.  An agreement extension payment of $50,000 for extension of closing was also paid in addition to 50,000 shares of Company stock.  On November 17, 2005, our wholly owned subsidiary, Wild Animal Safari, Inc., completed the refinancing of the debt we incurred on June 13, 2005 in connection the acquisition of the Wild Animal Safari theme park from Ron Snider & Associates, Inc. and related entities. A new loan in the principal amount of $2,300,210.09 was obtained from Commercial Bank & Trust Company of Troup County in LaGrange, Georgia. As a result of this refinancing, the promissory notes in the aggregate principal amount of $2,350,000 that were issued to Ron Snider & Associates, Inc. and its affiliated entities were paid in full and the liens which were held by those entities against the Wild Animal Safari theme park assets were released. The new loan is secured by a first priority security agreement and a first priority security deed on the Wild Animal Safari theme park assets.  In addition, on November 17, 2005, our Wild Animal Safari, Inc. subsidiary obtained a line of credit loan from Commercial Bank & Trust Company of Troup County for working capital purposes in the principal amount of $200,000.00.  This line of credit loan is renewable annually, subject to the satisfactory performance by Wild Animal Safari, Inc. under the terms of the line of credit. It is also secured by a lien on the Wild Animal Safari theme park assets.  We believe that we have sufficient cash, other current assets and operating cash flow to sustain foreseeable organic growth throughout the next fiscal year. Management intends to seek additional needed funds through financings or other avenues such as loans, the sale and issuance of additional debt and/or equity securities, or other financing arrangements. We have no commitments for any additional funding and no assurance can be given that we will be able to raise additional funds on commercially acceptable terms or at all. Unless we can raise needed capital or experience a significant increase in income, we may need to curtail expenditures and cancel or delay our efforts to establish and expand our operations. Our continuation as a going concern is dependent upon, among other things, our ability to obtain additional financing when and as needed, and to generate sufficient cash flow to meet our obligations on a timely basis. No assurance can be given that we will be able to obtain such financing on acceptable terms. These circumstances could complicate our ability to raise additional capital. Our financial statements do not include any adjustments to the carrying amounts of our assets and liabilities that might result from the outcome of this uncertainty. In addition, any future capital raised by our company is likely to result in substantial dilution to existing stockholders.  Our independent registered public accountants, in their audit report accompanying our financial statements for the year ended December 31, 2005, expressed substantial doubt about our ability to continue as a going concern. However, at the time of the audit report, the Companys independent registered public accountants indicated to the Company that the going concern opinion was based solely on the Companys negative working capital and did not reflect the Companys ability to support its operations from its revenues. As of June 30, 2006, both the Company and its independent registered public accounting firm anticipate that the Companys revenues will be sufficient to support its operations over the next 12 months even if the funding necessary to complete further potential acquisitions does not materialize.  Off Balance Sheet Arrangements  We do not have any off balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, results of operations, liquidity or capital expenditures.  Critical Accounting Policies  Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of any contingent assets and liabilities. On an on-going basis, we evaluate our estimates. We base our estimates on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.   6    An infinite number of variables can be posited that could have an effect on valuation of assets and liabilities.  For example, it is assumed that:  · Revenue and profit growth at our Crossroads Convenience Center and Wild Animal Safari subsidiaries will continue; · The infrastructure in both entities will accommodate the additional customers; · Cost of improvements and operations will remain a relatively stable budgeted allocation; · Per capita spending by the customers will continue to rise in relation to the rise in capital expenditures.  If any one of these assumptions, or combination of assumptions, proves incorrect, then the values assigned to real estate, per capita revenues, attendance and other variables that have remained consistent over the past two years may not be realized.  The same would be true if higher than expected revenue streams occurred.  Recent Accounting Pronouncements  Item 3. Controls and Procedures  (a) Evaluation of Disclosure Controls and Procedures  We maintain "disclosure controls and procedures," as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, 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. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective 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 Commission's rules and forms.   (b) Limitations on Effectiveness of Disclosure Controls and Procedures.  Disclosure controls and procedures cannot provide absolute assurance of achieving financial reporting objectives because of their inherent limitations. Disclosure controls and procedures is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Disclosure controls and procedures also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by disclosure controls and procedures. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.    PART II  OTHER INFORMATION   Item 1. Legal Proceedings  None.   Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  None.    7    Item 3. Defaults Upon Senior Securities  None.   Item 4. Submission of Matters to a Vote of Security Holders  None.   Item 5. Other Information  The National Association of Securities Dealers (NASD) approved Great American Family Park's shares for quotation on the Over-the-Counter Bulletin Board as of May 25, 2006. The Company's shares, which were previously quoted on the Pink Sheets, are now quoted under the ticker symbol GFAM.OB.   Item 6. Exhibits and Reports on Form 8-K  a. Exhibit Index   31.1 Certification by Chief Executive Officer, required by Rule 13a- 14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  31.2 Certification by Chief Financial Officer, required by Rule 13a- 14(a) or Rule 15d-14(a) of the Exchange Act, promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  32.1 Certification by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  32.2 Certification by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.    SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  GREAT AMERICAN FAMILY PARKS, INC.  Date:  August 10, 2006/s/ Larry EastlandName:  Larry EastlandTitle: President and Chief Executive OfficerDate:  August 10, 2006/s/ Richard W. JacksonName:  Richard W. JacksonTitle: Chief Financial Officer   8