UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM
10-Q
 
 x          QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 
 For the
quarter ended June 30, 2009
 
 o           TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 
 For the
transition period from _____ to _____
 
 Commission
File Number: 333-148664
 
 DYNAMIC APPLICATIONS
CORP.
 (Exact
name of small business issuer as specified in its charter)
 
 Delaware
                98-0573566(State
      of incorporation)
                (IRS
      Employer ID Number)
 
 C/o Beit
Gibor Sport
 7
Menachem Begin Street
 Ramat Gan
ISRAEL 52521
 (Address
of principal executive offices)
 
 972 - (3)
611-6262
 (Issuer's
telephone number)
 
 46
Techelet Street Modiin Israel 71700
 (Former
name, former address and former fiscal year, if changed since last
report)
 
 Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes x No  ̈
 
 Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
 Large
      accelerated
      filer                          
       ̈
              
              Accelerated
      filer                                                      
       ̈Non-accelerated
      filer                           
       ̈
              
              Smaller
      reporting
      company                                   
      x(Do
      not check if a smaller reporting company)
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes  ̈ No x
 
 As
of  July 31  2009 there were 86,145,000 shares of common
stock outstanding .
 
 
  
 TABLE
OF CONTENTS
 
 PagePART
      IItem
      1. Financial Statements
                    
                    
                    F-1Item
      2. Management’s Discussion and Analysis or Plan of
    Operation
                    
                    
                    3Item
      3 Quantitative and Qualitative Disclosures About Market
    Risk
                    
                    
                    6Item
      4 Controls and Procedures
                    
                    
                    6Item
      4(T) Controls and Procedures
                    
                    
                    6PART
      IIItem
      1. Legal Proceedings
                    
                    
                    6Item
      IA. Risk Factors
                    
                    
                    6Item
      2. Unregistered Sales of Equity Securities and Use of
    Proceeds
                    
                    
                    7Item
      3. Defaults Upon Senior Securities
                    
                    
                    7Item
      4. Submission of Matters to a Vote of Security Holders
                    
                    
                    7Item
      5. Other Information
                    
                    
                    7Item
      6. Exhibits
                    
                    
                    7
 2
 
 PART
I
 FINANCIAL
INFORMATION
 
 Item
1. Financial Statements.


DYNAMIC APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)




INDEX
TO FINANCIAL STATEMENTS


JUNE
30, 2009




Financial
      Statements-Balance Sheets as of June 30,
      2009 and December 31, 2008
                      
                      
                      F-2Statements
      of Operations for the Three Months and Six Months EndedJune
      30, 2009 and 2008, and Cumulative from Inception
                      
                      
                      F-3Statement
      of Stockholders’ Equity for the Period from InceptionThrough
      June 30, 2009
                      
                      
                      F-4Statements
      of Cash Flows for the Six Months Ended June 30, 2009 and
    2008,and
      Cumulative from Inception
                      
                      
                      F-5Notes
      to Financial Statements
                      
                      
                      F-6




F-1


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


BALANCE
SHEETS


AS OF JUNE 30, 2009
AND DECEMBER 31, 2008




As of
                      
                      
                      As ofJune 30,
                      
                      
                      December 31,2009
                      
                      
                      2008(Unaudited)
                      
                      
                      (Audited)ASSETSCurrent
      Assets:Cash
                      
                      $
                      14,243
                      
                      
                      $
                      131,920Prepaid
      expenses
                      
                      
                      9,500
                      
                      
                      
                      20,000Total
      current assets
                      
                      
                      23,743
                      
                      
                      
                      151,920Other
      Assets:Patent,
      net of accumulated amortization $4,675 and $2,805,
      respectively
                      
                      
                      14,025
                      
                      
                      
                      15,895Total
      other assets
                      
                      
                      14,025
                      
                      
                      
                      15,895Total
      Assets
                      
                      $
                      37,768
                      
                      
                      $
                      167,815LIABILITIES AND STOCKHOLDERS'
      (DEFICIT)Current
      Liabilities:Accounts
      payable and accrued liabilities
                      
                      $
                      23,000
                      
                      
                      $
                      17,000Loans
      from related parties - directors and stockholders
                      
                      
                      -
                      
                      
                      
                      300Total
      current liabilities
                      
                      
                      23,000
                      
                      
                      
                      17,300Total
      liabilities
                      
                      
                      23,000
                      
                      
                      
                      17,300Commitments
      and ContingenciesStockholders'
      Equity:Common
      stock, par value $.0001 per share, 200,000,000 shares authorized;
      86,145,000 and 75,000,000 shares issued and outstanding,
      respectively
                      
                      
                      8,615
                      
                      
                      
                      7,500Additional
      paid-in capital
                      
                      
                      269,435
                      
                      
                      
                      233,400Discount
      on common stock
                      
                      
                      (600
                      )
                      
                      
                      (600
                      )(Deficit)
      accumulated during the development stage
                      
                      
                      (262,682
                      )
                      
                      
                      (89,785
                      )Total
      stockholders' equity
                      
                      
                      14,768
                      
                      
                      
                      150,515Total
      Liabilities and Stockholders' Equity
                      
                      $
                      37,768
                      
                      
                      $
                      167,815





The accompanying notes to financial statements
are


an
integral part of these statements.


F-2




DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENTS
OF OPERATIONS


FOR
THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008,


AND
CUMULATIVE FROM INCEPTION (MARCH 7, 2008)


THROUGH
JUNE 30, 2009


(Unaudited)




Three Months Ended
                
                
                Six Months Ended
                
                
                CumulativeJune 30,
                
                
                June 30,
                
                
                From2009
                
                
                2008
                
                
                2009
                
                
                2008
                
                
                Inception(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)Revenues
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -Expenses:General
      and administrative-Research
      and development
                
                
                -
                
                
                
                -
                
                
                
                45,000
                
                
                
                -
                
                
                
                45,000Professional
      fees
                
                
                14,430
                
                
                
                16,520
                
                
                
                43,105
                
                
                
                18,270
                
                
                
                94,112Consulting
                
                
                23,056
                
                
                
                -
                
                
                
                25,056
                
                
                
                -
                
                
                
                49,625Officer's
      compensation
                
                
                43,015
                
                
                
                -
                
                
                
                52,035
                
                
                
                -
                
                
                
                56,035Amortization
                
                
                935
                
                
                
                935
                
                
                
                1,870
                
                
                
                935
                
                
                
                4,675Legal
      - incorporation
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                2,050
                
                
                
                2,050Other
                
                
                3,337
                
                
                
                370
                
                
                
                4,877
                
                
                
                370
                
                
                
                6,184Total
      general and administrative expenses
                
                
                84,773
                
                
                
                17,825
                
                
                
                171,943
                
                
                
                21,625
                
                
                
                257,681(Loss)
      from Operations
                
                
                (84,773
                )
                
                
                (17,825
                )
                
                
                (171,943
                )
                
                
                (21,625
                )
                
                
                (257,681
                )Other
      Income (Expense)
                
                
                -
                
                
                
                -
                
                
                
                (954
                )
                
                
                -
                
                
                
                (5,001
                )Provision
      for income taxes
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -Net
      (Loss)
                
                $
                (84,773
                )
                
                $
                (17,825
                )
                
                $
                (172,897
                )
                
                $
                (21,625
                )
                
                $
                (262,682
                )(Loss)
      Per Common Share:(Loss)
      per common share - Basic and Diluted
                
                $
                (0.00
                )
                
                $
                (0.00
                )
                
                $
                (0.00
                )
                
                $
                (0.00
                )Weighted
      Average Number of Common Shares Outstanding - Basic and
      Diluted
                
                
                86,145,000
                
                
                
                9,000,000
                
                
                
                84,482,486
                
                
                
                8,224,137




The
accompanying notes to financial statements are


an
integral part of these statements.


F-3


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENT
OF STOCKHOLDERS' EQUITY


FOR
THE PERIOD FROM INCEPTION (MARCH 7, 2008)


THROUGH
JUNE 30, 2009


(Unaudited)




(Deficit)AccumulatedAdditional
                
                
                Discount
                
                
                During theCommon stock
                
                
                Paid-in
                
                
                onCommon
                
                
                DevelopmentShares
                
                
                Amount
                
                
                Capital
                
                
                Stock
                
                
                Stage
                
                
                TotalsBalance
      - March 7, 2008
                
                
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -Common
      stock issued for cash
                
                
                9,000,000
                
                
                
                900
                
                
                
                -
                
                
                
                (600
                )
                
                
                -
                
                
                
                300Common
      stock issued for cash
                
                
                6,000,000
                
                
                
                600
                
                
                
                59,400
                
                
                
                -
                
                
                
                -
                
                
                
                60,000Common
      stock issued for cash
                
                
                60,000,000
                
                
                
                6,000
                
                
                
                174,000
                
                
                
                -
                
                
                
                -
                
                
                
                180,000Net
      (loss) for the period
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (89,785
                )
                
                
                (89,785
                )Balance
      - December 31, 2008
                
                
                75,000,000
                
                
                
                7,500
                
                
                
                233,400
                
                
                
                (600
                )
                
                
                (89,785
                )
                
                
                150,515Common
      stock issued for cash
                
                
                11,145,000
                
                
                
                1,115
                
                
                
                36,035
                
                
                
                -
                
                
                
                -
                
                
                
                37,150Net
      (loss) for the period
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (172,897
                )
                
                
                (172,897
                )Balance
      - June 30, 2009
                
                
                86,145,000
                
                
                $
                8,615
                
                
                $
                269,435
                
                
                $
                (600
                )
                
                $
                (262,682
                )
                
                $
                14,768





The
accompanying notes to financial statements are


an
integral part of this statement.




F-4





DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


STATEMENTS
OF CASH FLOWS (NOTE 2)


FOR
THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008,


AND
CUMULATIVE FROM INCEPTION (MARCH 7, 2008)


THROUGH
JUNE 30, 2009


(Unaudited)





Six Months Ended
                
                
                CumulativeJune 30,
                
                
                From2009
                
                
                2008
                
                
                Inception(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)Operating
      Activities:Net
      (loss)
                
                $
                (172,897
                )
                
                $
                (21,625
                )
                
                $
                (262,682
                )Adjustments
      to reconcile net (loss) to net cash (used in) operating
      activities:Amortization
                
                
                1,870
                
                
                
                935
                
                
                
                4,675Changes
      in net assets and liabilities-Prepaid
      expenses
                
                
                10,500
                
                
                
                -
                
                
                
                (9,500
                )Accounts
      payable and accrued liabilities
                
                
                6,000
                
                
                
                9,320
                
                
                
                23,000Net
      Cash Used in Operating Activities
                
                
                (154,527
                )
                
                
                (11,370
                )
                
                
                (244,507
                )Investing
      Activities:Acquisition
      and costs of patent
                
                
                -
                
                
                
                (18,700
                )
                
                
                (18,700
                )Net
      Cash Used in Investing Activities
                
                
                -
                
                
                
                (18,700
                )
                
                
                (18,700
                )Financing
      Activities:Common
      stock issued
                
                
                37,150
                
                
                
                300
                
                
                
                277,450Loans
      from related parties - directors and stockholders
                
                
                (300
                )
                
                
                30,200
                
                
                
                -Net
      Cash Provided by Financing Activities
                
                
                36,850
                
                
                
                30,500
                
                
                
                277,450Net
      (Decrease) Increase in Cash
                
                
                (117,677
                )
                
                
                430
                
                
                
                14,243Cash
      - Beginning of Period
                
                
                131,920
                
                
                
                -
                
                
                
                -Cash
      - End of Period
                
                $
                14,243
                
                
                $
                430
                
                
                $
                14,243Supplemental
      Disclosure of Cash Flow Information:Cash
      paid during the period for:Interest
                
                $
                -
                
                
                $
                -
                
                
                $
                -Income
      taxes
                
                $
                -
                
                
                $
                -
                
                
                $
                -




The
accompanying notes to financial statements are


an
integral part of these statements.


F-5


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS




(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 Company has changed its business plan and is now planning to focus its
activities in the clean tech industry and is considering various initiatives.
The accompanying financial statements of Dynamic Applications were prepared from
the accounts of the Company under the accrual basis of accounting.





Unaudited
Interim Financial Statements





The
interim financial statements of the Company as of June 30, 2009, 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 of only normal recurring adjustments, necessary to present fairly the
Company’s financial position as of June 30, 2009, and the results of its
operations and its cash flows for the periods ended June 30, 2009, and
cumulative from inception. These results are not necessarily indicative of the
results expected for the calendar year ending December 31, 2009. 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 as of
December 31, 2008, filed with the SEC, 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.




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, 2009.




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.


F-6


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





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, 2009, 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.





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, 2009, 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.


F-7





DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





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, 2009, and expenses for the period ended June 30,
2009, and cumulative from inception. Actual results could differ from those
estimates made by management.




Recent Accounting
Pronouncements




In April
2009, the FASB issued FSP No. FAS 157-4, “Determining Fair Value When the Volume
and Level of Activity for the Asset or Liability Have Significantly Decreased
and Identifying Transactions That Are Not Orderly” (“FSP FAS
157-4”).  FSP FAS 157-4 provides guidance on estimating fair value
when market activity has decreased and on identifying transactions that are not
orderly. Additionally, entities are required to disclose in interim and
annual periods the inputs and valuation techniques used to measure fair
value.  This FSP is effective for interim and annual periods ending
after June 15, 2009.  The Company does not expect that the adoption of
FSP FAS 157-4 will have a material impact on its financial condition or results
of operations.





In
October 2008, the FASB issued FSP No. FAS 157-3, “Determining the Fair Value of
a Financial Asset When the Market for That Asset is Not Active,” (“FSP FAS
157-3”), which clarifies application of SFAS 157 in a market that is not
active.  FSP FAS 157-3 was effective upon issuance, including prior
periods for which financial statements have not been issued.  The
adoption of FSP FAS 157-3 had no impact on the Company’s results of operations,
financial condition or cash flows.





In
December 2008, the FASB issued FSP No. FAS 140-4 and FIN 46(R)-8, “Disclosures
by Public Entities (Enterprises) about Transfers of Financial Assets and
Interests in Variable Interest Entities.”  This disclosure-only FSP
improves the transparency of transfers of financial assets and an enterprise’s
involvement with variable interest entities, including qualifying
special-purpose entities.  This FSP is effective beginning with the
first reporting period (interim or annual) ending after December 15, 2008, with
earlier application encouraged.  The Company adopted this FSP
effective January 1, 2009.  The adoption of the FSP had no impact
on the Company’s results of operations, financial condition or cash
flows.





In
December 2008, the FASB issued FSP No. FAS 132(R)-1, “Employers’ Disclosures
about Postretirement Benefit Plan Assets” (“FSP FAS 132(R)-1”).  FSP
FAS 132(R)-1 requires additional fair value disclosures about employers’ pension
and postretirement benefit plan assets consistent with guidance contained in
SFAS 157.  Specifically, employers will be required to disclose
information about how investment allocation decisions are made, the fair value
of each major category of plan assets
and information about the inputs and valuation techniques used to develop the
fair value measurements
of plan assets. This FSP is effective for fiscal years ending after
December 15, 2009.  The Company does not expect that the adoption
of FSP FAS 132(R)-1 will have a material impact on its financial condition or
results of operations.





In
September 2008, the FASB issued exposure drafts that eliminate qualifying
special purpose entities from the guidance of SFAS No. 140, “Accounting for
Transfers and Servicing of Financial  Assets and  Extinguishments of
Liabilities,” and  FASB  Interpretation 46 (revised December 2003),
“Consolidation of  Variable  Interest Entities − an
interpretation of ARB  No. 51,” as well as other
modifications.  While the proposed revised pronouncements have not
been finalized and the proposals are subject to further public comment, the
Company anticipates the changes will not have a significant impact on the
Company’s financial statements.  The changes would be effective March
1, 2010, on a prospective basis.


F-8





DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





In
June 2008, the FASB issued FASB Staff Position EITF 03-6-1, Determining Whether Instruments
Granted in Share-Based Payment Transactions Are Participating Securities,
(“FSP EITF 03-6-1”). FSP EITF 03-6-1 addresses whether instruments granted in
share-based payment transactions are participating securities prior to vesting,
and therefore need to be included in the computation of earnings per share under
the two-class method as described in FASB Statement of Financial Accounting
Standards No. 128, “Earnings per Share.” FSP EITF 03-6-1 is effective for
financial statements issued for fiscal years beginning on or after
December 15, 2008 and earlier adoption is prohibited. The Company is not
required to adopt FSP EITF 03-6-1; nor does the Company believe that FSP EITF
03-6-1 would have material effect on its financial positionand results of
operations if adopted.





In May
2008, the FASB issued SFAS No. 163, “Accounting for Financial Guarantee
Insurance Contracts-and interpretation of FASB Statement No.
60”.  SFAS No. 163 clarifies how Statement 60 applies to financial
guarantee insurance contracts, including the recognition and measurement of
premium revenue and claims liabilities. This statement also requires expanded
disclosures about financial guarantee insurance contracts. SFAS No. 163 is
effective for fiscal years beginning on or after December 15, 2008, and interim
periods within those years. SFAS No. 163 has no effect on the Company’s
financial position, statements of operations, or cash flows at this
time.





In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles”.  SFAS No. 162 sets forth the level of
authority to a given accounting pronouncement or document by category. Where
there might be conflicting guidance between two categories, the more
authoritative category will prevail. SFAS No. 162 will become effective 60 days
after the SEC approves the PCAOB’s amendments to AU Section 411 of the AICPA
Professional Standards. SFAS No. 162 has no effect on the Company’s financial
position, statements of operations, or cash flows at this time.





In March
2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and
Hedging Activities—an amendment of FASB Statement No. 133.  This
standard requires companies to provide enhanced disclosures about (a) how and
why an entity uses derivative instruments, (b) how derivative instruments and
related hedged items are accounted for under Statement 133 and its related
interpretations, and (c) how derivative instruments and related hedged items
affect an entity’s financial position, financial performance, and cash flows.
This Statement is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008, with early application
encouraged. SFAS No. 161 has no effect on the Company’s financial position,
statements of operations, or cash flows at this time.





In
December 2007, the SEC issued Staff Accounting Bulletin (SAB) No. 110 regarding
the use of a "simplified" method, as discussed in SAB No. 107 (SAB 107), in
developing an estimate of expected term of "plain vanilla" share options in
accordance with SFAS No. 123 (R), Share-Based Payment.  In particular,
the staff indicated in SAB 107 that it will accept a company's election to use
the simplified method,
regardless of whether the company has sufficient information to make more
refined estimates of expected term. At the time SAB 107 was issued, the staff
believed that more detailed external information about employee exercise
behavior (e.g., employee exercise patterns by industry and/or other categories
of companies) would, over time, become readily available to companies.
Therefore, the staff
stated in SAB 107 that it would not expect a company to use the simplified
method for share option
grants after December 31, 2007. The staff understands that such detailed
information about employee exercise behavior may not be widely available by
December 31, 2007. Accordingly, the staff will continue to accept, under certain
circumstances, the use of the simplified method beyond December 31, 2007. It is
not believed that this will have an impact on the Company’s financial position,
results of operations or cash flows.


F-9





DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





In
December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements—an amendment of ARB No. 51.  This
statement amends ARB 51 to establish accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. It 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. Before this statement was issued,
limited guidance existed for reporting noncontrolling interests. As a result,
considerable diversity in practice existed. So-called minority interests were
reported in the consolidated statement of financial position as liabilities or
in the mezzanine section between liabilities and equity. This statement improves
comparability by eliminating that diversity. This statement is effective for
fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2008 (that is, January 1, 2009, for entities with calendar
year-ends). Earlier adoption is prohibited. The effective date of this statement
is the same as that of the related Statement 141 (revised 2007). It is not
believed that this will have an impact on the Company’s financial position,
results of operations or cash flows.





In
December 2007, the FASB, issued FAS No. 141 (revised 2007), Business
Combinations.  This Statement replaces FASB Statement No. 141,
Business Combinations, but retains the fundamental requirements in
Statement 141.  This Statement establishes principles and
requirements for how the acquirer: (a) recognizes and measures in its financial
statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree; (b) recognizes and measures the
goodwill acquired in the business combination or a gain from a bargain purchase;
and (c) determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business
combination. This statement applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008. An entity may not
apply it before that date. The effective date of this statement is the same as
that of the related FASB Statement No. 160, Noncontrolling Interests in
Consolidated Financial Statements.  It is not believed that this will
have an impact on the Company’s financial position, results of operations or
cash flows.





(2)  Development Stage Activities and
Going Concern





The
Company is currently in the development stage, and has no operations. The
Company is planning to focus its activities in the clean tech industry and is
considering various initiatives.





The
Company has completed a capital formation activity in accordance with a
Registration Statement on Form S-1 submitted to the SEC to register and sell in
a self-directed offering 6,000,000 (post forward stock split) shares of newly
issued common stock at an offering price of $0.04 per share for proceeds of
$80,000. The Company had incurred $20,000 of deferred offering costs related to
this capital formation activity.





As of
December 10, 2008 the Company raised $200,000 and issued 60,000,000 (post
forward stock split) shares of its common stock pursuant to a private placement
offering of 28,000,000 shares, at a purchase price of $0.01 per share. The
Company received proceeds of $200,000. The Company incurred $20,000 of deferred
offering costs related to this capital formation activity.





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, 2009, the
cash resources of the Company were insufficient to meet its current business
plan. 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.


F-10


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





(3)  Patent





In March
2008, the Company entered into a Patent Transfer and Sale Agreement whereby the
Company acquired all of the rights, 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. The cost
of obtaining the patent ($17,000) and related legal fees ($1,700) 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
December 31, 2008, loans from directors and stockholders amounted to $300 and
represented working capital advances from Directors who are also stockholders of
the Company. The loans are unsecured, non-interest bearing, and due on demand.
These loans were paid back to the related parties through June 30,
2009.





(5)  Common Stock





On March
17, 2008, the Company issued 9,000,000 (post forward stock split) shares of its
common stock to two individuals who are Directors and officers for proceeds of
$300.




The Company has completed a capital
formation activity in accordance with a Registration Statement on Form S-1
submitted to the SEC to register and sell in a self-directed offering 6,000,000
(post forward stock split) shares of newly issued common stock at an offering
price of $0.04 per share for proceeds of $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 Company had incurred $20,000 of deferred offering costs
related to this capital formation activity.





As of
December 10, 2008 the Company raised $200,000 and issued 60,000,000 (post
forward stock split) shares of its common stock pursuant to a private placement
offering of 28,000,000 shares, at a purchase price of $0.01 per share. The
Company received proceeds of $200,000. The Company incurred $20,000 of deferred
offering costs related to this capital formation activity.





On
February 5, 2009, the Company implemented a 3 for 1 forward stock split on
its issued and outstanding shares of common stock to the holders of record as of
February 5, 2009. As a result of the split, each holder of record on the record
date automatically received two additional shares of the Company’s common stock.
After the split, the number of shares of common stock issued and outstanding are
86,145,000 shares. The accompanying financial statements and related notes
thereto have been adjusted accordingly to reflect this forward stock
split.


F-11


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





(6)  Income Taxes





The
provision (benefit) for income taxes for the period ended June 30, 2009 and
2008, was as follows (assuming a 23% effective tax rate):


2009
                    
                    
                    2008Current
      Tax Provision:Federal-Taxable
      income
                    
                    $
                    -
                    
                    
                    $
                    -Total
      current tax provision
                    
                    $
                    -
                    
                    
                    $
                    -Deferred
      Tax Provision:Federal-Loss
      carryforwards
                    
                    $
                    39,766
                    
                    
                    $
                    4,974Change
      in valuation allowance
                    
                    
                    (39,766
                    )
                    
                    
                    (4,974
                    )Total
      deferred tax provision
                    
                    $
                    -
                    
                    
                    $
                    -





The
Company had deferred income tax assets as of June 30, 2009 and December 31,
2008, as follows:


2009
                    
                    
                    2008Loss
      carryforwards
                    
                    $
                    60,417
                    
                    
                    $
                    20,651Less
      - Valuation allowance
                    
                    
                    (60,417
                    )
                    
                    
                    (20,651
                    )Total
      net deferred tax assets
                    
                    $
                    -
                    
                    
                    $
                    -





The
Company provided a valuation allowance equal to the deferred income tax assets
for the period ended June 30, 2009, because it is not presently known whether
future taxable income will be sufficient to utilize the loss
carryforwards.





As of
June 30, 2009, the Company had approximately $262,682 in tax loss carryforwards
that can be utilized in future periods to reduce taxable income, and which
expire through the year 2029.





(7)  Related Party
Transactions





As
described in Note 4, as of June 30, 2009, there were no loans owed to Directors,
officers, and principal stockholders of the Company for working capital
loans.





As
described in Note 5, on March 17, 2008, the Company issued 9,000,000 (post
forward stock split) shares of its common stock to Directors and officers for
proceeds of $300.


F-12


DYNAMIC
APPLICATIONS CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS





(8)  Commitments





Effective
on November 1, 2008, the Company entered into an Executive Employment Agreement
with Mr. Asher Zwebner (“Zwebner Agreement”), which engaged Mr. Zwebner as its
Chief Financial Officer who will perform the operational and financial
management of the Company. Pursuant to the Agreement, Mr. Zwebner will receive
$2,000 per month during the one-year term, commencing on November 1, 2008 and
ending on October 31, 2009. If the Agreement is terminated for any reason by
either party during the term, Mr. Zwebner will be entitled to the base salary as
if the Agreement expired at the end of the one year term.





In
addition to his monthly salary, Mr. Zwebner is entitled to receive prompt
reimbursements for all normal and reasonable expenses incurred while performing
services as Chief Financial Officer of the Company.





On
June 9, 2009, Dynamic Applications Corp. (“Dynamic” or the "Company")
entered into a management services agreement with Ori Goore, Dynamic’s principal
executive officer and director. The agreement is dated as of June 9,
2009.  The term of the agreement is from the commencement of Mr.
Goore's services to the Company on March 1, 2009 until ninety days after either
the Company or Mr. Goore provide notice of termination (unless a longer period
is specified in such notice or upon immediate termination by the Company "for
cause").




Mr.
Goore’s agreement provides for a monthly salary of approximately $10,000 (35,639
New Israeli Shekels per month plus value added tax), an annual bonus equal to 5%
of the annual profits of the Company above $1 million and reimbursement of
specified expenses.   Mr. Goore is also entitled to receive
restricted common stock of the Company, which will vest in 1,722,900 share
increments each 12 month period following the commencement of his employment,
during a four year period.  The agreement provides, in the event of a
termination after 12 months of service to the Company, Mr. Goore will receive
the monthly salary for each year of service including fractions thereof for
service for less than the full year.  The agreement also provides for
Mr. Goore to receive any unpaid bonus awarded for the year prior to termination.
The agreement imposes obligations on Mr. Goore relating to
non-competition.





(9)  Concentration of Credit
Risk




The
Company’s cash and cash equivalents are invested in a major bank
in Israel and are not insured. Management believes that the financial
institution that holds the Company’s investments is financially sound and
accordingly, minimal credit risk exists with respect to these
investments.




F-13




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





As used
in this Form 10-Q, references to the “Dynamic Applications,” Company,” “we,”
“our” or “us” refer to Dynamic Applications Corp. unless the context otherwise
indicates.





Forward-Looking
Statements





The
following discussion should be read in conjunction with our financial
statements, which are included elsewhere in this Form 10-Q (the “Report”). This
Report contains forward-looking statements which relate to future events or our
future financial performance. In some cases, you can identify forward-looking
statements by terminology such as “may,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or
the negative of these terms or other comparable terminology. These statements
are only predictions and involve known and unknown risks, uncertainties, and
other factors that may cause our or our industry’s actual results, levels of
activity, performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by
these forward-looking statements.





For a
description of such risks and uncertainties refer to our Registration Statement
on Form S-1 and Form 10-K, filed with the Securities and Exchange Commission on
May 6, 2008 and January 26, 2009, respectively. While these forward-looking
statements, and any assumptions upon which they are based, are made in good
faith and reflect our current judgment regarding the direction of our business,
actual results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future performance
suggested herein. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.





Overview





We were
incorporated in Delaware on March 7, 2008 and are a development stage company.
Since inception we have had limited operations. 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.







3




On March
23, the Company announced that it is exploring an emerging opportunity in the
clean technology industry and is considering various other initiatives. The
Company believes that the clean technology industry can play a major role in
providing solutions to some of the most acute challenges the world faces today.
By entering the clean technology industry, The Company intends to contribute to
both improving world environmental conditions and creating value for its
shareholders.





Change
in Management





On
February 2, 2009, Amir Elbaz resigned from his positions as President and Chief
Executive Officer of the Company effective as of such date. On February 2, 2009,
Eliran Almog resigned from his position as director of the Company.
Simultaneously with the acceptance of the Messrs. Elbaz and Almog’s
resignations, the Board of Directors of the Company appointed Ori Goore as the
Chief Executive Officer and a director of the Company, to serve at the
discretion of the Board, until his successor is duly appointed and
qualified.





The Board
of Directors also appointed Eli Gonen as Chairman and a director of the Company,
to serve at the discretion of the Board, until his successor is duly appointed
and qualified, and Asher Zwebner, the current Chief Financial Officer of the
Company, as a director as well.





Forward
Stock Split





Effective
as of February 5, 2009, the Company implemented a 3 to 1 forward stock split of
its issued and outstanding shares of common stock. Pursuant to the split, the
27,715,000 shares of common stock issued and outstanding prior to said date were
increased to 86,145,000 shares. The payment date was on February 12, 2009. On
such date, 2 additional shares were mailed to the shareholders without any
further action on the part of the shareholders.





Plan
of Operations





In order
to fully evaluate the emerging opportunity in the clean technology industry, the
Company has investigated the market potential for the Kenaf crop. The Kenaf
crop, originated in Africa (USDA web site). It is a natural green row
material that grows much faster than comparable crops and offers a broad range
of environmental advantages, including the extraordinary capacity to absorb and
store huge quantities of CO2 – the most abundant global warming gas, thus
providing a substantial mean to cope with global warming (MNN web
site).





Traditionally,
the Kenaf crop has been used for the production of ropes, bags and similar
products. However, in recent years a wide range of new applications have
emerged, with Kenaf proving to be an excellent source of pulp for paper
production (vision paper - web site). According to public sources a growing
number of paper related companies wishing to use environmental friendly row
materials are shifting to Kenaf.


4





Kenaf is
also used as a green raw material for the bioplastic industry and has been used
extensively in the auto industry by companies like Toyota (Toyota web site)
and others.


Kenaf is
also used by electronic companies such as NEC, Panasonic (NEC and Panasonic
web sites) and others.




The
Company has decided to enter the carbon credit market. Under the Kyoto protocol
recognized by the US greenhouse, gases that are emitted from various sources,
eg, land fields, coal mines, can be traded in the free market, whereby our
Company sees a great potential in this growing market and is seeking to capture
a share in the related industry.


The
Company has completed a capital formation activity in accordance with a
Registration Statement on Form S-1 submitted 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 $80,000. The Company had
incurred $20,000 of deferred offering costs related to this capital formation
activity.




Going
Concern Consideration





The
Company is a development stage company and has not commenced planned principal
operations. The Company had no revenues and incurred a net loss of
$172,897  for the six months ended June 30, 2009, and a net loss
of $84,733 for the three months then ended. These factors raise substantial
doubt about the Company’s ability to continue as a going concern.





The
financial statements  for the period ending December 31, 2008, contain
additional note disclosures describing the circumstances that lead to this
disclosure by our registered independent auditors.





Liquidity
and Capital Resources




As of
June 30, 2009, we had $14,243 in cash and incurred net losses of $172,897
during the period ending June 30, 2009.





The
Company does not believe that its available funds will be sufficient to fund its
expenses over the next 12 months. There can be no assurance that additional
capital will be available to the Company. The Company currently has no
agreements, arrangements, or understandings with any person to obtain funds
through bank loans, lines of credit, or any other sources other than advances
from certain shareholders for working capital purposes. Since the Company has no
such arrangements or plans currently in effect, its inability to raise funds for
the above purposes will have a severe negative impact on its ability to remain a
viable company. The Company is however seeking additional equity financing from
certain financial institutions to enable its continuance with its proposed
business plan.


5





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. Quantitative and Qualitative Disclosures About Market Risk





A smaller
reporting company, as defined by Item 10 of Regulation S-K, is not required to
provide the information required by this item.





Item
4 Controls and Procedures.





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
Rules  13a-15(e)  and  15d-15(e)  under
the 1934 Act).  Based on this evaluation,  the 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 reports  that we file or
submit under the 1934 Act is
recorded,  processed,  summarized and
reported  within the time periods  specified in
the  Securities  and  Exchange  Commission  rules
and forms.





Item
4(T) Controls and Procedures.





There
have been no changes  in
the  Company’s  internal  control  over  financial
reporting identified in connection with the evaluation required by paragraph (d)
of Rule  240.15d-15  that occurred during the Company’s last
fiscal quarter that has  materially  affected,  or
is reasonable  likely to materially  affect,  the
Company internal control over financial reporting.





PART
II


OTHER
INFORMATION





Item
1. Legal Proceedings.





There are
no pending legal proceedings to which the Company is a party or in which any
director, officer or affiliate of the Company, any owner of record or
beneficially of more than 5% of any class of voting securities of the Company,
or security holder is a party adverse to the Company or has a material interest
adverse to the Company. The Company’s property is not the subject of any pending
legal proceedings.





Item
1A.           Risk
Factors




A smaller
reporting company, as defined by Item 10 of Regulation S-K, is not required to
provide the information required by this item.


6





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





The
Company issued 11,145,000 shares of restricted common stock ( post forward 1-3
split ) in exchange of $37,150 during the six months ended June 30 2009
..





Purchases
of equity securities by the issuer and affiliated purchasers





None.





Use
of Proceeds





None





Item
3. Defaults Upon Senior Securities.





None.





Item
4. Submission of Matters to a Vote of Security Holders.





There was
no matter submitted to a vote of security holders during the six
months  ended June 30, 2009.





Item
5. Other Information.





None




Item
6. Exhibits





Exhibit
                  No.
                
                Description31.1
                
                Rule
      13a-14(a)/15d14(a) Certifications of Ori Goore, Chief Executive Officer
      and Director (attached hereto)31.2
                
                Rule
      13a-14(a)/15d14(a) Certifications of Asher Zwebner,  Chief
      Financial Officer and Director(attached hereto)32.1
                
                Section
      1350 Certifications of Ori Goore, Chief Executive Officer and
      Director(attached hereto)32.2
                
                Section
      1350 Certifications of Asher Zwebner, Chief Financial Officer and
      Director(attached
hereto)


7





SIGNATURES





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




DYNAMIC APPLICATIONS
      CORP .Dated:
      July 31, 2009
                  By:
                  /s/
      Ori Goore,Name:
                  Ori
      GooreTitle:
                  Chief
      Executive Officer and
                    Director
      (Principal Executive Officer)By:
                  /s/
      Asher ZwebnerName:
                  Asher
      ZwebnerTitle:
                  Chief
      Financial Officer and Director(Principal
      Financial and AccountingOfficer)


8