**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**










**FORM
      10-QSB**







Quarterly
      Report Pursuant to Section 13 or 15 (D) of the Securities Act of
      1934


for
      the
      quarterly period ended: June 30 2008





**Commission
      File number:** 333-148664








**DYNAMIC
      APPLICATIONS CORP.**


(Exact
      name of small business issuer as specified in its charter) ****





**Delaware**


(State
      or
      other jurisdiction of Incorporation or organization)





98-0573566


(IRS
      Employee Identification No.)





c/o
      Eyal
      Rosenberg


46
      Techelet Street


Modiin,
      Israel 71700


Phone
      number: 972 - (3) 9787116


Fax
      number: 972 - (3) 9787145


(Address
      of principal executive offices)








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 and Exchange Act of 1934 during
      the preceding 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 xNo o





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




Indicate
      the number of shares outstanding of each of the issuer's classes of common
      stock, as of the latest practicable date:




Common Stock, $0.001 par value
            
            3,000,000(Class)
            
            (Outstanding
                as of July 10,
                2008)










**DYNAMIC
      APPLICATIONS CORP.**


**Form
      10-QSB**





**Index**





Part
                  I - FINANCIAL INFORMATION
              
              
              PageItem
                  1. Financial Statements (Unaudited)
              
              
              3Condensed
                  Balance Sheet
              
              
              F-2Condensed
                  Statements of Operations
              
              
              F-3Condensed
                  Statements of Cash Flows
              
              
              F-4Notes
                  on Condensed Financial Information
              
              
              F-5Item
                  2 Management’s Discussion and Analysis or Plan of Operation
              
              
              4Item
                  3 Control and Procedures
              
              
              7Part
                  II. OTHER INFORMATIONItem
                  1. Legal Proceedings
              
              
              8Item
                  2. Changes in Securities
              
              
              8Item
                  3. Defaults Upon Senior Securities
              
              
              8Item
                  4. Submission Of Matters To A Vote of Security Holders
              
              
              8Item
                  5. Other Information
              
              
              8Item
                  6. Exhibits and Reports on Form 8 -K
              
              
              8Signatures
              
              
              9Certifications
  2




**Part
      I:**  **Financial
      Information**





**Item
      1.**  **Financial
      Statements**








3




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**




**INDEX
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




Financial
                Statements-Balance
                Sheet as of June 30, 2008
            
            
            F-2Statements
                of Operations for the Three Months and the Period EndedJune
                30, 2008, and Cumulative from Inception
            
            
            F-3Statements
                of Cash Flows for the Period Ended June 30, 2008,and
                Cumulative from Inception
            
            
            F-4Notes
                to Financial Statements June 30, 2008
            
            
            F-5




F-1




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**BALANCE
      SHEET (NOTE 2)**


**AS
      OF JUNE 30, 2008**


**(Unaudited)**





**ASSETS****Current
                  Assets:**Cash
              
              $
              430Total
                  current assets
              
              
              430**Other
                  Assets:**Patent,
                  net of accumulated amortization $935
              
              
              17,765Deferred
                  offering costs
              
              
              20,000Total
                  other assets
              
              
              37,765**Total
                  Assets**
              
              $
              38,195**LIABILITIES
                  AND STOCKHOLDERS' (DEFICIT)****Current
                  Liabilities:**Accounts
                  payable and accrued liabilities
              
              $
              27,570Loans
                  from related parties - Directors and stockholders
              
              
              31,950Total
                  current liabilities
              
              
              59,520Total
                  liabilities
              
              
              59,520**Commitments
                  and Contingencies****Stockholders'
                  (Deficit):**Common
                  stock, par value $.0001 per share, 200,000,000 sharesauthorized;
                  3,000,000 shares issued and outstanding
              
              
              300(Deficit)
                  accumulated during the development stage
              
              
              (21,625
              )Total
                  stockholders' (deficit)
              
              
              (21,325
              )**Total
                  Liabilities and Stockholders' (Deficit)**
              
              $
              38,195





The
      accompanying notes to financial statements


are
      an
      integral part of these financial statements.




F-2




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENTS
      OF OPERATIONS (NOTE 2)**


**FOR
      THE THREE MONTHS AND THE PERIOD ENDED JUNE 30, 2008,**


**AND
      CUMULATIVE FROM INCEPTION (MARCH 7, 2008)**


**THROUGH
      JUNE 30, 2008**


**(Unaudited)**




**Three
                  months****Ended**
              
              **Period
                  Ended**
              
              **Cumulative****June
                  30,**
              
              **June
                  30,**
              
              **From****2008**
              
              **2008**
              
              **Inception****Revenues**
              
              $
              -
              
              $
              -
              
              $
              -**Expenses:**General
                  and administrative-Professional
                  fees
              
              
              16,520
              
              
              18,270
              
              
              18,270Amortization
              
              
              935
              
              
              935
              
              
              935Legal
                  - incorporation
              
              
              -
              
              
              2,050
              
              
              2,050Other
              
              
              370
              
              
              370
              
              
              370Total
                  general and administrative expenses
              
              
              17,825
              
              
              21,625
              
              
              21,625**(Loss)
                  from Operations**
              
              
              (17,825
              )
              
              (21,625
              )
              
              (21,625
              )**Other
                  Income (Expense)**
              
              
              -
              
              
              -
              
              
              -**Provision
                  for income taxes**
              
              
              -
              
              
              -
              
              
              -**Net
                  (Loss)**
              
              $
              (17,825
              )
              $
              (21,625
              )
              $
              (21,625
              )**(Loss)
                  Per Common Share:**(Loss)
                  per common share - Basic and Diluted
              
              $
              (0.01
              )
              $
              (0.01
              )**Weighted
                  Average Number of Common Shares****Outstanding
                  - Basic and Diluted**
              
              
              3,000,000
              
              
              2,741,379




The
      accompanying notes to financial statements are


an
      integral part of these statements.




F-3




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENTS
      OF CASH FLOWS (NOTE 2)**


**FOR
      THE PERIOD ENDED JUNE 30, 2008,**


**AND
      CUMULATIVE FROM INCEPTION (MARCH 7, 2008)**


**THROUGH
      JUNE 30, 2008**


**(Unaudited)**




**Period
                  Ended**
              
              **Cumulative****June
                  30,**
              
              **From****2008**
              
              **Inception****Operating
                  Activities:**Net
                  (loss)
              
              $
              (21,625
              )
              $
              (21,625
              )Adjustments
                  to reconcile net (loss) to net cash(used
                  in) operating activities:Amortization
              
              
              935
              
              
              935Changes
                  in net liabilities-Accrued
                  liabilites
              
              
              9,320
              
              
              9,320**Net
                  Cash Used in Operating Activities**
              
              
              (11,370
              )
              
              (11,370
              )**Investing
                  Activities:**Acquisition
                  and costs of patent
              
              
              (18,700
              )
              
              (18,700
              )**Net
                  Cash Used in Investing Activities**
              
              
              (18,700
              )
              
              (18,700
              )**Financing
                  Activities:**Stock
                  subscriptions received
              
              
              300
              
              
              300Loans
                  from related parties - Directors and stockholders
              
              
              30,200
              
              
              30,200**Net
                  Cash Provided by Financing Activities**
              
              
              30,500
              
              
              30,500**Net
                  (Decrease) Increase in Cash**
              
              
              430
              
              
              430**Cash
                  - Beginning of Period**
              
              
              -
              
              
              -**Cash
                  - End of Period**
              
              $
              430
              
              $
              430**Supplemental
                  Disclosure of Cash Flow Information:**Cash
                  paid during the period for:Interest
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              -
              
              $
              -




**Supplemental
      schedule of noncash investing and financing activities:**


Common
      stock was issued in exchange for subscriptions receivable in the amount of
      $300.


Accruals
      in the amount $20,000 were incurred for deferred offering costs.


Loans
      from related parties increased as a result of payment of $1,750 to a creditor
      by
      a stockholder on behalf of the Company.





The
      accompanying notes to financial statements are


an
      integral part of these statements.




F-4




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




**(1)**  **Summary
      of Significant Accounting Policies**





*Basis
      of Presentation and Organization*





Dynamic
      Applications Corp. (“Dynamic Applications” or the “Company”) is a Delaware
      corporation in the development stage and has not commenced operations. The
      Company was incorporated under the laws of the State of Delaware on March 7,
      2008. The business plan of the Company is to develop a commercial application
      of
      the design in a patent of a “Electromagnetic percussion device” which is a
      device intended to provide an electromagnetic percussion hammer. The Company
      also intends to enhance the existing prototype, obtain approval of its patent
      application, and manufacture and market the product and/or seek third party
      entities interested in licensing the rights to manufacture and market the
      device.. The accompanying financial statements of Dynamic Applications were
      prepared from the accounts of the Company under the accrual basis of
      accounting.





The
      Company has commenced a capital formation activity to submit a Registration
      Statement on Form S-1 to the Securities and Exchange Commissions (“SEC”) to
      register and sell in a self-directed offering 2,000,000 shares of newly issued
      common stock at an offering price of $0.04 for proceeds of up to $80,000. The
      Registration Statement on Form S-1 was filed with the SEC on May 6, 2008 and
      declared effective on May 15, 2008.





*Unaudited
      Interim Financial Statements*





The
      interim financial statements of the Company as of June 30, 2008, and for the
      periods ended, and cumulative from inception, are unaudited. However, in the
      opinion of management, the interim financial statements include all adjustments,
      consisting only of normal recurring adjustments, necessary to present fairly
      the
      Company’s financial position as of June 30, 2008, and the results of its
      operations and its cash flows for the periods ended June 30, 2008, and
      cumulative from inception. These results are not necessarily indicative of
      the
      results expected for the calendar year ending December 31, 2008. The
      accompanying financial statements and notes thereto do not reflect all
      disclosures required under accounting principles generally accepted in the
      United States. Refer to The Company’s audited financial statements contained in
      its Registration Statement on Form S-1 as of March 31, 2008, for additional
      information, including significant accounting policies.




*Cash
      and Cash Equivalents*





For
      purposes of reporting within the statement of cash flows, the Company considers
      all cash on hand, cash accounts not subject to withdrawal restrictions or
      penalties, and all highly liquid debt instruments purchased with a maturity
      of
      three months or less to be cash and cash equivalents.




*Revenue
      Recognition*





The
      Company is in the development stage and has yet to realize revenues from
      operations. Once the Company has commenced operations, it will recognize
      revenues when delivery of goods or completion of services has occurred provided
      there is persuasive evidence of an agreement, acceptance has been approved
      by
      its customers, the fee is fixed or determinable based on the completion of
      stated terms and conditions, and collection of any related receivable is
      probable.




F-5




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**





*Loss
      per Common Share*





Basic
      loss per share is computed by dividing the net loss attributable to the common
      stockholders by the weighted average number of shares of common stock
      outstanding during the period. Fully diluted loss per share is computed similar
      to basic loss per share except that the denominator is increased to include
      the
      number of additional common shares that would have been outstanding if the
      potential common shares had been issued and if the additional common shares
      were
      dilutive. There were no dilutive financial instruments issued or outstanding
      for
      the period ended June 30, 2008.




*Income
      Taxes*





The
      Company accounts for income taxes pursuant to SFAS No. 109, *Accounting
      for Income Taxes* (“SFAS
      109”). Under SFAS 109, deferred tax assets and liabilities are determined based
      on temporary differences between the bases of certain assets and liabilities
      for
      income tax and financial reporting purposes. The deferred tax assets and
      liabilities are classified according to the financial statement classification
      of the assets and liabilities generating the differences.





The
      Company maintains a valuation allowance with respect to deferred tax assets.
      The
      Company establishes a valuation allowance based upon the potential likelihood
      of
      realizing the deferred tax asset and taking into consideration the Company’s
      financial position and results of operations for the current period. Future
      realization of the deferred tax benefit depends on the existence of sufficient
      taxable income within the carryforward period under the Federal tax
      laws.





Changes
      in circumstances, such as the Company generating taxable income, could cause
      a
      change in judgment about the realizability of the related deferred tax asset.
      Any change in the valuation allowance will be included in income in the year
      of
      the change in estimate.





*Fair
      Value of Financial Instruments*





The
      Company estimates the fair value of financial instruments using the available
      market information and valuation methods. Considerable judgment is required
      in
      estimating fair value. Accordingly, the estimates of fair value may not be
      indicative of the amounts the Company could realize in a current market
      exchange. As of June 30, 2008, the carrying value of accrued liabilities, and
      loans from directors and stockholders approximated fair value due to the
      short-term nature and maturity of these instruments.




*Patent
      and Intellectual Property*





The
      Company capitalizes the costs associated with obtaining a Patent or other
      intellectual property associated with its intended business plan. Such costs
      are
      amortized over the estimated useful lives of the related assets.




*Deferred
      Offering Costs*





The
      Company defers as other assets the direct incremental costs of raising capital
      until such time as the offering is completed. At the time of the completion
      of
      the offering, the costs are charged against the capital raised. Should the
      offering be terminated, deferred offering costs are charged to operations during
      the period in which the offering is terminated.




F-6




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




*Impairment
      of Long-Lived Assets*





The
      Company evaluates the recoverability of long-lived assets and the related
      estimated remaining lives when events or circumstances lead management to
      believe that the carrying value of an asset may not be recoverable. For the
      period ended June 30, 2008, no events or circumstances occurred for which an
      evaluation of the recoverability of long-lived assets was required.




*Common
      Stock Registration Expenses*





The
      Company considers incremental costs and expenses related to the registration
      of
      equity securities with the SEC, whether by contractual arrangement as of a
      certain date or by demand, to be unrelated to original issuance transactions.
      As
      such, subsequent registration costs and expenses are expensed as
      incurred.




*Estimates*





The
      financial statements are prepared on the basis of accounting principles
      generally accepted in the United States. The preparation of financial statements
      in conformity with generally accepted accounting principles requires management
      to make estimates and assumptions that affect the reported amounts of assets
      and
      liabilities as of June 30, 2008, and expenses for the period ended June 30,
      2008, and cumulative from inception. Actual results could differ from those
      estimates made by management.




*Fiscal
      Year End*





The
      Company has adopted a fiscal year end of December 31.





**(2)**  **Development
      Stage Activities and Going Concern**





The
      Company is currently in the development stage, and has no operations. The
      business plan of the Company is to develop a commercial application of the
      design in a patent of a “Electromagnetic percussion device” which is a device
      intended to provide an electromagnetic percussion hammer. The Company also
      intends to enhance the existing prototype, obtain approval of its patent
      application, and manufacture and market the product and/or seek third party
      entities interested in licensing the rights to manufacture and market the
      device.





In
      March
      2008, the Company entered into a Patent Transfer and Sale Agreement whereby
      the
      Company acquired all of the right, title and interest in the patent known as
      the
“Electromagnetic percussion device” for consideration of $17,000 plus legal fees
      of $1,700. The United States Patent Application 5,497,555 was granted on March
      12, 1996.




F-7




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




The
      Company has also commenced a capital formation activity to submit a Registration
      Statement on Form S-1 to the SEC to register and sell in a self-directed
      offering 2,000,000 shares of newly issued common stock at an offering price
      of
      $0.04 per share for proceeds of up to $80,000. The Registration Statement on
      Form S-1 was filed with the SEC on May 6, 2008 and declared effective on May
      15,
      2008.





The
      accompanying financial statements have been prepared in conformity with
      accounting principles generally accepted in the United States of America, which
      contemplate continuation of the Company as a going concern. The Company has
      not
      established any source of revenue to cover its operating costs, and as such,
      has
      incurred an operating loss since inception. Further, as of June 30, 2008, the
      cash resources of the Company were insufficient to meet its current business
      plan, and the Company had negative working capital. These and other factors
      raise substantial doubt about the Company’s ability to continue as a going
      concern. The accompanying financial statements do not include any adjustments
      to
      reflect the possible future effects on the recoverability and classification
      of
      assets or the amounts and classification of liabilities that may result from
      the
      possible inability of the Company to continue as a going concern.





**(3)**  **Patent**





In
      March
      2008, the Company entered into a Patent Transfer and Sale Agreement whereby
      the
      Company acquired all of the right, title and interest in the patent known as
      the
“Electromagnetic percussion device” for consideration of $17,000 plus legal fees
      of $1,700. The United States Patent Application 5,497,555 was granted on March
      12, 1996. Under the terms of the Patent Transfer and Sale Agreement, the Company
      was assigned rights to the patent free of any liens, claims, royalties,
      licenses, security interests or other encumbrances. The assignment of the patent
      was recorded at the U.S. Patent and Trademark Office on April 13, 2008. As
      of
      June 30, 2008 the historical cost of obtaining the patent ($17,000) and legal
      fees ($1,700) for acquiring the patent have been capitalized by the Company.
      The
      historical cost of the Patent will be amortized over its remaining useful life,
      which is estimated to be 5 years.





**(4)**  **Loans
      from Related Parties - Directors and Stockholders**





As
      of
      June 30, 2008, loans from related parties - Directors and stockholders amounted
      to $31,950, and represented working capital advances from two Directors who
      are
      also stockholders of the Company. The loans are unsecured, non-interest bearing,
      and due on demand.




F-8




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




**(5)**  **Common
      Stock**





On
      March
      17, 2008, the Company issued 3,000,000 shares of its common stock to two
      individuals who are Directors and officers for proceeds of
      $300.




The
      Company has commenced a capital formation activity to submit a Registration
      Statement on Form S-1 to the SEC to register and sell in a self-directed
      offering 2,000,000 shares of newly issued common stock at an offering price
      of
      $0.04 per share for proceeds of up to $80,000. As of June 30, 2008, the Company
      had incurred $20,000 of deferred offering costs related to this capital
      formation activity.





**(6)**  **Income
      Taxes**





The
      provision (benefit) for income taxes for the period ended June 30, 2008, was
      as
      follows (assuming a 23% effective tax rate):





**2007**Current
                Tax Provision:Federal
                and state-Taxable
                income
            
            $
            -Total
                current tax provision
            
            $
            -Deferred
                Tax Provision:Federal
                and state-Loss
                carryforwards
            
            $
            4,974Change
                in valuation allowance
            
            
            (4,974
            )Total
                deferred tax provision
            
            $
            -





The
      Company had deferred income tax assets as of June 30, 2008, as
      follows:





**2007**Loss
                carryforwards
            
            $
            4,974Less
                - Valuation allowance
            
            
            (4,974
            )Total
                net deferred tax assets
            
            $
            -





The
      Company provided a valuation allowance equal to the deferred income tax assets
      for the period ended June 30, 2008, because it is not presently known whether
      future taxable income will be sufficient to utilize the loss
      carryforwards.




F-9




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




As
      of
      June 30, 2008, the Company had approximately $21,625 in tax loss carryforwards
      that can be utilized in future periods to reduce taxable income, and expire
      in
      the year 2028.





**(7)**  **Related
      Party Transactions**





As
      described in Note 4, as of June 30, 2008, the Company owed $31,950 to two
      individuals who are Directors, officers, and principal stockholders of the
      Company for working capital loans.





As
      described in Note 5, on March 17, 2008, the Company issued 3,000,000 shares
      of
      its common stock to two individuals who are Directors and officers for proceeds
      of $300.





**(8)**  **Commitments**





As
      described in Notes 1, 2 and 5, as of June 30, 2008, the Company had commenced
      a
      capital formation activity to submit a Registration Statement on Form S-1 to
      the
      SEC. In connection with this capital formation activity, the Company is
      committed to pay legal and accounting fees amounting to approximately
      $20,000.





In
      May
      2008, the Company entered into an Agreement with Island Capital Management,
      LLC
      dba Island Stock Transfer (“Island Stock Transfer”) for services. Under the
      Agreement, the Company agreed to pay to Island Stock Transfer fees amounting
      to
      $12,000 payable as follows: $1,000 due at the time of execution of the
      Agreement; and, $11,000 within 60 days.





**(9)**  **Recent
      Accounting Pronouncements**




In
      September 2006, the Financial Accounting Standards Board (“FASB”) issued
      Statement of Financial Accounting Standards (“SFAS”) No. 157, *“Fair
      Value Measurement* s *.”* This
      statement defines fair value, establishes a framework for measuring fair value
      in generally accepted accounting principles, and expands disclosure about fair
      value measurements. This statement applies under other accounting pronouncements
      that require or permit fair value measurement, the FASB having previously
      concluded in those accounting pronouncement that fair value is the relevant
      measurement attribute. This statement does not require any new fair value
      measurements. However, for some entities, the application of the statement
      will
      change current practice. This statement is effective for financial statements
      issued for fiscal years beginning after November 15, 2007, and interim periods
      within those fiscal years. The management of the Company does not expect the
      adoption of this pronouncement to have a material impact on its financial
      statements.




In
      September 2006, the FASB issued SFAS No. 158, *“Employers’
      Accounting for Defined Benefit Pension and Other Postretirement Plans - An
      Amendment of FASB Statements No. 87, 88, 106 and 132(R)* . *”* This
      statement improves financial reporting by requiring an employer to recognize
      the
      overfunded or underfunded status of a defined benefit postretirement plan (other
      than a multi-employer plan) as an asset or liability in its statement of
      financial position and to recognize changes in that funded status in the year
      in
      which the changes occur through comprehensive income of a business entity or
      changes in unrestricted net assets of a not-for-profit organization. This
      statement also improves financial reporting by requiring an employer to measure
      the funded status of a plan as of the date of its year-end statement of
      financial position, with limited exceptions. The requirement to measure plan
      assets and benefit obligations as of the date of the employer’s fiscal year-end
      statement of financial position is effective for fiscal years ending after
      December 15, 2008. The management of the Company does not expect the adoption
      of
      this pronouncement to have a material impact on its financial
      statements.




F-10




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




In
      February 2007, the FASB issued SFAS No. 159, *“The
      Fair Value Option for Financial Assets and Financial Liabilities - Including
      an
      Amendment of FASB Statement No. 115,”* which
      permits entities to choose to measure many financial instruments and certain
      other items at fair value that are not currently required to be measured at
      fair
      value. An entity would report unrealized gains and losses on items for which
      the
      fair value option has been elected in earnings at each subsequent reporting
      date. The objective is to improve financial reporting by providing entities
      with
      the opportunity to mitigate volatility in reported earnings caused by measuring
      related assets and liabilities differently without having to apply complex
      hedge
      accounting provisions. The decision about whether to elect the fair value option
      is applied instrument by instrument, with a few exceptions; the decision is
      irrevocable; and it is applied only to entire instruments and not to portions
      of
      instruments. SFAS No. 159 requires disclosures that facilitate comparisons
      (a)
      between entities that choose different measurement attributes for similar
      assets and liabilities and (b) between assets and liabilities in the financial
      statements of an entity that selects different measurement attributes for
      similar assets and liabilities. SFAS No. 159 is effective for financial
      statements issued for fiscal years beginning after November 15, 2007. Early
      adoption is permitted as of the beginning of a fiscal year provided the entity
      also elects to apply the provisions of SFAS No. 157. Upon implementation, an
      entity shall report the effect of the first re-measurement to fair value as
      a
      cumulative-effect adjustment to the opening balance of retained earnings. Since
      the provisions of SFAS No. 159 are applied prospectively, any potential impact
      will depend on the instruments selected for fair value measurement at the time
      of implementation. The management of the Company does not expect the adoption
      of
      this pronouncement to have a material impact on its financial
      statements.





In
      December 2007, the FASB issued SFAS No. 160, *“Noncontrolling
      Interests in Consolidated Financial Statements - An Amendment of ARB No. 51,”* which
      establishes accounting and reporting standards to improve the relevance,
      comparability, and transparency of financial information in its consolidated
      financial statements. This is accomplished by requiring all entities, except
      not-for-profit organizations, that prepare consolidated financial statements
      to
      (a) clearly identify, label, and present ownership interests in subsidiaries
      held by parties other than the parent in the consolidated statement of financial
      position within equity, but separate from the parent’s equity, (b) clearly
      identify and present both the parent’s and the noncontrolling’s interest
      attributable consolidated net income on the face of the consolidated statement
      of income, (c) consistently account for changes in parent’s ownership interest
      while the parent retains it controlling financial interest in subsidiary and
      for
      all transactions that are economically similar to be accounted for similarly,
      (d) measure of any gain, loss or retained noncontrolling equity at fair value
      after a subsidiary is deconsolidated, and (e) provide sufficient disclosures
      that clearly identify and distinguish between the interests of the parent and
      the interests of the noncontrolling owners. This Statement also clarifies that
      a
      noncontrolling interest in a subsidiary is an ownership interest in the
      consolidated entity that should be reported as equity in the consolidated
      financial statements. SFAS No. 160 is effective for fiscal years, and interim
      periods on or after December 15, 2008. The management of the Company does not
      expect the adoption of this pronouncement to have a material impact on its
      financial statements.




F-11




**DYNAMIC
      APPLICATIONS CORP.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**JUNE
      30, 2008**


**(Unaudited)**




In
      December 2007, the FASB issued SFAS 141R, “ *Business
      Combinations - Revised 2007* ,”
which
      replaces FASB Statement No. 141, “ *Business
      Combinations* .”
SFAS
      141R ** establishes
      principles and requirements intending to improve the relevance, representational
      faithfulness, and comparability of information that a reporting entity provides
      in its financial reports about a business combination and its effects. This
      is
      accomplished through requiring the acquirer to recognize assets acquired and
      liabilities assumed arising from contractual contingencies as of the acquisition
      date, measured at their acquisition-date fair values. This includes contractual
      contingencies only if it is more likely than not that they meet the definition
      of an asset or a liability in FASB Concepts Statement No. 6, “ *Elements
      of Financial Statements* - *a
      replacement of FASB Concepts Statement No. 3.* ” ** This
      statement also requires the acquirer to recognize goodwill as of the acquisition
      date, measured as a residual. However, this statement improves the way in which
      an acquirer’s obligations to make payments conditioned on the outcome of future
      events are recognized and measured, which in turn improves the measure of
      goodwill. This statement also defines a bargain purchase as a business
      combination in which the total acquisition-date fair value of the consideration
      transferred plus any noncontrolling interest in the acquiree, and it requires
      the acquirer to recognize that excess in earnings as a gain attributable to
      the
      acquirer. This therefore improves the representational faithfulness and
      completeness of the information provided about both the acquirer’s earnings
      during the period in which it makes a bargain purchase and the measures of
      the
      assets acquired in the bargain purchase. The Company does not expect the
      adoption of this pronouncement to have a material impact on its financial
      statements.




F-12




**Item
      2.**  **Management’s
      Discussion and Analysis and Plan of Operations.**





USE
      OF
      NAMES





In
      this
      annual report, the terms “DYNAMIC APPLICATIONS CORP. ”, “Company”, “we”, or
“our”, unless the context otherwise requires, mean DYNAMIC APPLICATIONS CORP.
      and its subsidiaries.





CAUTIONARY
      STATEMENT REGARDING FORWARD-LOOKING STATEMENTS





This
      annual report on Form 10-QSB and other reports that we file with the SEC contain
      statements that are considered forward-looking statements. Forward-looking
      statements give the Company’s current expectations, plans, objectives,
      assumptions or forecasts of future events. All statements other than statements
      of current or historical fact contained in this annual report, including
      statements regarding the Company’s future financial position, business strategy,
      budgets, projected costs and plans and objectives of management for future
      operations, are forward-looking statements. In some cases, you can identify
      forward-looking statements by terminology such as “anticipate,” “estimate,”
“plans,” “potential,” “projects,” “ongoing,” “expects,” “management believes,”
“we believe,” “we intend,” and similar expressions. These statements are based
      on the Company’s current plans and are subject to risks and uncertainties, and
      as such the Company’s actual future activities and results of operations may be
      materially different from those set forth in the forward looking statements.
      Any
      or all of the forward-looking statements in this annual report may turn out
      to
      be inaccurate and as such, you should not place undue reliance on these
      forward-looking statements. The Company has based these forward-looking
      statements largely on its current expectations and projections about future
      events and financial trends that it believes may affect its financial condition,
      results of operations, business strategy and financial needs. The
      forward-looking statements can be affected by inaccurate assumptions or by
      known
      or unknown risks, uncertainties and assumptions due to a number of factors,
      including:


·  dependence
      on key personnel;


·  competitive
      factors;


·  degree
      of
      success of research and development programs


·  the
      operation of our business; and


·  general
      economic conditions in the United States, Israel and China


These
      forward-looking statements speak only as of the date on which they are made,
      and
      except to the extent required by federal securities laws, we undertake no
      obligation to update any forward-looking statements to reflect events or
      circumstances after the date on which the statement is made or to reflect the
      occurrence of unanticipated events. In addition, we cannot assess the impact
      of
      each factor 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. All subsequent written and oral forward-looking
      statements attributable to the Company or persons acting on its behalf are
      expressly qualified in their entirety by the cautionary statements contained
      in
      this annual report.




4




**ABOUT
      OUR COMPANY**




We
      were
      incorporated in Delaware on March 7, 2008 and are a development stage company.
      On March 27, 2008, we entered into an exclusive worldwide patent sale agreement
      (the "Patent Transfer and Sale Agreement ") with Appelfeld Zer Fisher, in
      relation to a patented technology (Patent Number: 5497555). The technology
      presents the design and development of an electromagnetic percussion machine
      whose striking piston is made of a single monolithic block of material and
      which
      is, as result, more durable and rugged than heretofore comparable device in
      exchange for a commitment to pay Appelfeld Zer Fisher US $17,000 (Seventeen
      thousand United States Dollars), according to the condition specified in the
      Patent Transfer and Sale Agreement related to the Patent Number: 5497555.




The
      Dynamic Applications Corp. invention relates to percussion machines and, more
      particularly, to electromagnetic percussion hammers and related devices. The
      electromagnetic percussion device is comprised of the following: (a) a housing;
      (b) an instrument connected to, and extending beyond, the housing; (c) a driving
      member reciprocatable within the housing, the driving member including an
      intermediate region of a first diameter and an enlarged anterior head of a
      second diameter, the second diameter being larger than the first diameter;
      (d) a
      piston body reciprocatable within the housing and adapted to impact the
      instrument, the piston body including a coupling element for slidably
      accommodating the head of the driving member, thereby coupling the driving
      member and the piston body together, the coupling element including a plurality
      of leaves which enclose and confine the head of the driving member when the
      coupling element is within the housing but which can be moved apart when the
      coupling element is outside the housing to allow the head of the driving member
      to be inserted into, or removed from, the coupling element; (e) an
      electromagnetically active body connected to the driving member; and (f) an
      electromagnetic coil connected to the housing, the coil operationally coupled
      to
      the electromagnetically active body so as to cause the reciprocation of the
      driving member.




The
      present invention involves a unique design in which the positions of the
      electromagnetic coil and electromagnetically active body are reversed.
      Therefore, the present invention successfully addresses the shortcomings of
      the
      presently known configurations by providing an electromagnetic percussion
      machine whose striking piston is made of a single monolithic block of material
      and which is, as result, more durable and rugged than heretofore comparable
      devices.





We
      do not
      yet have a fully operational working valid prototype, but intend to create
      one.
      Once the working prototype has been developed, we will then work to develop
      and
      manufacture the Product or license the manufacturing and related marketing
      and
      selling rights to a third party.





Our
      principal offices are located at 46 Techelet Street, Modiin, Israel. Our
      telephone number is 972- (3) 9787116. Our registered office in Delaware is
      located at 113 Barksdale Professional Center, Newark, DE 19711, and our
      registered agent is Delaware Intercorp. All references to "we," "us," "our,"
      or
      similar terms used in this prospectus refer to Dynamic Applications Corporation.
      Our fiscal year end is December 31.




5




**Employees**





Other
      than our current Directors and officers, Eyal Rosenberg and Eliezer Broideh,
      we
      have no other full time or part-time employees. If and when we develop the
      prototype for our electromagnetic percussion system, and are able to begin
      manufacturing and marketing, we may need additional employees for such
      operations. We do not foresee any significant changes in the number of employees
      or consultants we will have over the next twelve months.







**PLAN
      OF OPERATIONS**




**Liquidity,
      Capital Resources and Operations:**




During
      the fiscal quarter ended June 30 2008, net cash used by operating activities
      was
      $11,370 . The Company incurred a net loss of $21,625 for the fiscal quarter
      ended June 30 2008. Additionally, at June 30 2008, the Company had a
      Stockholders’ (Deficit) of $21,325.





These
      factors raise substantial doubt about the Company’s ability to continue as a
      going concern. The Company anticipates that in order to fulfill its plan of
      operations, it will need to seek financing from outside sources.  To this
      end, the Company is constantly pursuing private debt and equity sources.






**Results
      of Operations:**


**For
      the Six Months Ended June 30, 2008**




The
      net
      loss , comprised of general and administrative operating expenses amounted
      to
      $21,625 for the
      Six
      Months Ended June 30 2008 .





We
      have,
      in our history, generated limited income from operations, have incurred
      substantial expenses and have sustained losses. In addition, we expect to
      continue to incur significant operating expenses. As a result, we will need
      to
      generate significant revenues to achieve profitability, which may not occur.
      We
      expect our operating expenses to increase as a result of our planned expansion.
      Even if we do achieve profitability, we may be unable to sustain or increase
      profitability on a quarterly or annual basis in the future.




6




**Inflation:**




The
      amounts presented in the financial statements do not provide for the effect
      of
      inflation on the Company’s operations or its financial position. Amounts shown
      for machinery, equipment and leasehold improvements and for costs and expenses
      reflect historical cost and do not necessarily represent replacement cost.
      The
      net operating losses shown would be greater than reported if the effects of
      inflation were reflected either by charging operations with amounts that
      represent replacement costs or by using other inflation
      adjustments.








**Off-Balance
      Sheet Arrangements**





We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition, changes in financial
      condition, revenues or expenses, results of operations, liquidity, capital
      expenditures or capital resources that are material to investors.







**Item
      3.**  **Controls
      and Procedures**





Evaluation
      and Disclosure Controls and Procedures




As
      of the
      end of the period covered by this report, our management conducted an
      evaluation, under the supervision and with the participation of our chief
      executive officer and chief financial officer of the effectiveness of our
      disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
      under the Securities Exchange Act of 1934). Based on this evaluation, the
      officers concluded that our disclosure controls and procedures are effective
      to
      ensure that information required to be disclosed by our company in reports
      that
      we file or submit under the Securities Exchange Act of 1934 is recorded,
      processed, summarized and reported within the time periods specified in
      Commission rules and forms.





**Changes
      in Internal Controls over Financial Reporting**







Based
      on
      their evaluation as of the end of the period covered by this annual report
      on
      Form 10-KSB, our principal executive officer and principal financial officer
      concluded that our disclosure controls and procedures, as defined in Rule
      13a-15(e) promulgated under the Securities Exchange Act of 1924, were effective
      in design and operation. There have been no changes in our system of internal
      control over financial reporting in connection with the evaluation by our
      principal executive officer and principal financial officer during our most
      recent fiscal quarter that have materially affected, or are reasonably likely
      to
      materially affect, our internal control over financial reporting.




7




**Part
      II. Other Information**





**Item
      1.** **Legal
      Proceedings** .





Other
      than as set forth herein, we are not aware of any pending or threatened
      litigation against us that we expect will have a material adverse effect on
      our
      business, financial condition, liquidity, or operating results. However, legal
      claims are inherently uncertain and we cannot assure you that we will not be
      adversely affected in the future by legal proceedings.








**Item
      2.**  **Changes
      In Securities**





None








**Item
      3.** **Defaults
      Upon Senior Securities**





None





**Item
      4.** **Submission
      of Matters To A Vote Of Security Holders**





None








**Item
      5.** **Other
      Information**





None








**Item
      6.** **Exhibits**





a.
            Exhibits: 3.1*
            Articles
                of Incorporation of the Company


3.2*
            By-Laws
                of the Company


3.3*
            Form
                of Common Stock Certificate of the
                Company


31.1
            Certification
                of Principal Executive Officer Pursuant to Exchange Act Rule
                13A-14(A)/15D-14(A) as Adopted Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002


31.2
            Certification
                of Principal Financial Officer Pursuant to Exchange Act Rule
                13A-14(A)/15D-14(A) as Adopted Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002


32.1
            Certification
                of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350,
                as
                Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002


32.2
            Certification
                of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350,
                as
                Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002




*  Previously
      filed as an exhibit to the Company’s Form SB-1 filed on May 6, 2008, and
      subsequent filings




8




**Signatures**





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, Dynamic Applications Corp. has duly caused this Report to be signed on
      behalf of the undersigned thereunto duly authorized on July 10,
      2008.








**Dynamic
      Applications Corp.**





By:
      _______________________


Eyal
      Rozenberg


President
      and CEO








Pursuant
      to the requirements of the Securities Exchange Act of 1934, this Report has
      been
      signed by the following persons in the capacities indicated and on July 10
      2008.




Signature
            
            Title
            
            Date/s/Eyal Rozenberg
            
            President and CEO
            
            July 10, 2008Eyal Rozenberg,
            
            and
                Director/s/ Eliezer Broideh
            
            Secretary and Director
            
            July 10, 2008Eliezer Broideh




9