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 March 31, 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 xNo
 ̈





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 xNo
 ̈





As of May
6 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
 MARCH
31, 2009
  Financial
      Statements-Balance Sheets as of March 31,
      2009 and December 31, 2008
                  
                  
                  F-2Statements of Operations for the
      Three Months Ended March 31, 2009 and 2008, and
      Cumulative from Inception
                  
                  
                  F-3Statement of Stockholders’ Equity
      for the Period from Inception Through March 31,
      2009
                  
                  
                  F-4Statements of Cash Flows for the
      Three Months Ended March 31, 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 MARCH 31, 2009
AND DECEMBER 31, 2008
  As
      of
                      
                      
                      As
      ofMarch
      31,
                      
                      
                      December
      31,2009
                      
                      
                      2008(Unaudited)
                      
                      
                      (Audited)ASSETSCurrent
      Assets:Cash
                      
                      $
                      62,730
                      
                      
                      $
                      131,920Prepaid
      expenses
                      
                      
                      7,500
                      
                      
                      
                      20,000Total
      current assets
                      
                      
                      70,230
                      
                      
                      
                      151,920Other
      Assets:Patent,
      net of accumulated amortization $3,740 and $2,805,
      respectively
                      
                      
                      14,960
                      
                      
                      
                      15,895Total
      other assets
                      
                      
                      14,960
                      
                      
                      
                      15,895Total
      Assets
                      
                      $
                      85,190
                      
                      
                      $
                      167,815LIABILITIES AND STOCKHOLDERS'
      (DEFICIT)Current
      Liabilities:Accounts
      payable and accrued liabilities
                      
                      $
                      20,000
                      
                      
                      $
                      17,000Loans
      from related parties - directors and stockholders
                      
                      
                      2,800
                      
                      
                      
                      300Total
      current liabilities
                      
                      
                      22,800
                      
                      
                      
                      17,300Total
      liabilities
                      
                      
                      22,800
                      
                      
                      
                      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
                      )Stock
      subscription receivable
                      
                      
                      (37,150
                      )
                      
                      
                      -(Deficit)
      accumulated during the development stage
                      
                      
                      (177,910
                      )
                      
                      
                      (89,785
                      )Total
      stockholders' equity
                      
                      
                      62,390
                      
                      
                      
                      150,515Total
      Liabilities and Stockholders' Equity
                      
                      $
                      85,190
                      
                      
                      $
                      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 ENDED MARCH 31, 2009 AND 2008,
 AND
CUMULATIVE FROM INCEPTION (MARCH 7, 2008)
 THROUGH
MARCH 31, 2009
 (Unaudited)
  ThreeMonths
                      
                      
                      ThreeMonthsEnded
                      
                      
                      Ended
                      
                      
                      CumulativeMarch 31,
                      
                      
                      March 31,
                      
                      
                      From2009
                      
                      
                      2008
                      
                      
                      Inception(Unaudited)
                      
                      
                      (Unaudited)
                      
                      
                      (Unaudited)Revenues
                      
                      $
                      -
                      
                      
                      $
                      -
                      
                      
                      $
                      -Expenses:General
      and administrative-Research
      and development
                      
                      
                      45,000
                      
                      
                      
                      -
                      
                      
                      
                      45,000Professional
      fees
                      
                      
                      28,675
                      
                      
                      
                      1,750
                      
                      
                      
                      79,682Consulting
                      
                      
                      8,000
                      
                      
                      
                      -
                      
                      
                      
                      36,570Officer's
      compensation
                      
                      
                      3,020
                      
                      
                      
                      -
                      
                      
                      
                      3,020Amortization
                      
                      
                      935
                      
                      
                      
                      -
                      
                      
                      
                      3,740Legal
      - incorporation
                      
                      
                      -
                      
                      
                      
                      2,050
                      
                      
                      
                      2,050Other
                      
                      
                      1,541
                      
                      
                      
                      -
                      
                      
                      
                      2,847Total
      general and administrative expenses
                      
                      
                      87,171
                      
                      
                      
                      3,800
                      
                      
                      
                      172,909(Loss)
      from Operations
                      
                      
                      (87,171
                      )
                      
                      
                      (3,800
                      )
                      
                      
                      (172,909
                      )Other
      Income (Expense)
                      
                      
                      (954
                      )
                      
                      
                      -
                      
                      
                      
                      (5,001
                      )Provision
      for income taxes
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -Net
      (Loss)
                      
                      $
                      (88,125
                      )
                      
                      $
                      (3,800
                      )
                      
                      $
                      (177,910
                      )(Loss)
      Per Common Share:(Loss)
      per common share - Basic and Diluted
                      
                      $
                      (0.00
                      )
                      
                      $
                      (0.00
                      )Weighted
      Average Number of Common SharesOutstanding - Basic and
      Diluted
                      
                      
                      82,801,500
                      
                      
                      
                      5,400,000
  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
MARCH 31, 2009
 (Unaudited)
  (Deficit)AccumulatedAdditional
                    
                    
                    Discount
                    
                    
                    Stock
                    
                    
                    During theCommon stock
                    
                    
                    Paid-in
                    
                    
                    on Common
                    
                    
                    Subscription
                    
                    
                    DevelopmentShares
                    
                    
                    Amount
                    
                    
                    Capital
                    
                    
                    Stock
                    
                    
                    Receivable
                    
                    
                    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
                    
                    
                    
                    -
                    
                    
                    
                    (37,150
                    )
                    
                    
                    -
                    
                    
                    
                    -Net
      (loss) for the period
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (88,125
                    )
                    
                    
                    (88,125
                    )Balance
      - March 31, 2009
                    
                    
                    86,145,000
                    
                    
                    $
                    8,615
                    
                    
                    $
                    269,435
                    
                    
                    $
                    (600
                    )
                    
                    $
                    (37,150
                    )
                    
                    $
                    (177,910
                    )
                    
                    $
                    62,390
 
 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 THREE MONTHS ENDED MARCH 31, 2009 AND 2008,
 AND
CUMULATIVE FROM INCEPTION (MARCH 7, 2008)
 THROUGH
MARCH 31, 2009
 (Unaudited)
 
 ThreeMonths
                    
                    
                    ThreeMonthsEnded
                    
                    
                    Ended
                    
                    
                    CumulativeMarch 31,
                    
                    
                    March 31,
                    
                    
                    From2009
                    
                    
                    2008
                    
                    
                    Inception(Unaudited)
                    
                    
                    (Unaudited)
                    
                    
                    (Unaudited)Operating
      Activities:Net
      (loss)
                    
                    $
                    (88,125
                    )
                    
                    $
                    (3,800
                    )
                    
                    $
                    (177,910
                    )Adjustments
      to reconcile net (loss) to net cash(used
      in) operating activities:Amortization
                    
                    
                    935
                    
                    
                    
                    -
                    
                    
                    
                    3,740Changes
      in net assets and liabilities-Prepaid
      expenses
                    
                    
                    12,500
                    
                    
                    
                    -
                    
                    
                    
                    (7,500
                    )Accounts
      payable and accrued liabilites
                    
                    
                    3,000
                    
                    
                    
                    3,800
                    
                    
                    
                    20,000Net
      Cash Used in Operating Activities
                    
                    
                    (71,690
                    )
                    
                    
                    -
                    
                    
                    
                    (161,670
                    )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
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    240,300Loans
      from related parties - directors and stockholders
                    
                    
                    2,500
                    
                    
                    
                    18,700
                    
                    
                    
                    2,800Net
      Cash Provided by Financing Activities
                    
                    
                    2,500
                    
                    
                    
                    18,700
                    
                    
                    
                    243,100Net
      (Decrease) Increase in Cash
                    
                    
                    (69,190
                    )
                    
                    
                    -
                    
                    
                    
                    62,730Cash
      - Beginning of Period
                    
                    
                    131,920
                    
                    
                    
                    -
                    
                    
                    
                    -Cash
      - End of Period
                    
                    $
                    62,730
                    
                    
                    $
                    -
                    
                    
                    $
                    62,730Supplemental
      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 March 31, 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 March 31, 2009, and the results of its
operations and its cash flows for the periods ended March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 2009, and expenses for the period ended March 31,
2009, and cumulative from inception. Actual results could differ from those
estimates made by management.
  Recent Accounting
Pronouncements
  In June
2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff
Position No. EITF No. 03-6-1, “Determining Whether Instruments Granted
in Share-Based Payment Transactions Are Participating Securities” (“FSP EITF
No. 03-6-1”). According to FSP EITF No. 03-6-1, unvested share-based
payment awards that contain nonforfeitable rights to dividends or dividend
equivalents are considered participating securities under SFAS No. 128. As
such, they should be included in the computation of basic earnings per share
(“EPS”) using the two-class method. FSP EITF No. 03-6-1 is effective for
financial statements issued for fiscal years beginning after December 15,
2008, as well as interim periods within those years. Once effective, all
prior-period EPS data presented must be adjusted retrospectively. The Company
does not expect FSP EITF No. 03-6-1 to have a material impact on the
Company’s financial position or results of operations.
 
 In March
2008, the FASB issued Statement No. 161, “Disclosures about Derivative
Instruments and Hedging Activities”, an amendment of FASB Statement No. 133
(“SFAS No. 161”). SFAS No. 161 applies to all derivative
instruments and nonderivative instruments that are designated and qualify as
hedging instruments and related hedged items accounted for under
SFAS No. 133. SFAS No. 161 requires entities to provide greater
transparency through additional disclosures about (a) how and why an entity
uses derivative instruments, (b) how derivative instruments and related
hedged items are accounted for under SFAS No. 133 and its related
interpretations, and (c) how derivative instruments and related hedged
items affect an entity’s financial position, results of operations, and cash
flows. SFAS No. 161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008. The
Company does not expect SFAS No. 161 to have a material impact on the
Company’s financial position or results of operations.
 
 In
December 2007, the FASB issued Statement No. 141 (revised), “Business
Combinations” (“SFAS No. 141(R)”). SFAS No. 141(R)
significantly changes the accounting for business combinations and establishes
principles and requirements for how an acquirer recognizes and measures in its
financial statements the identifiable assets acquired, the liabilities assumed
and any noncontrolling interest in the acquiree and recognizes and measures the
goodwill acquired in the business combination or a gain from a bargain purchase.
SFAS No. 141(R) 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.
 
 In
December 2007, the FASB issued Statement No. 160, “Noncontrolling Interests
in Consolidated Financial Statements” - an amendment of ARB No. 51
(“SFAS No. 160”). SFAS No. 160 changes the accounting for
noncontrolling (minority) interests in consolidated financial statements
including the requirements to classify noncontrolling interests as a component
of consolidated shareholders’ equity, the elimination of “minority interest”
accounting in results of operations and changes in the accounting for both
increases and decreases in a parent’s controlling ownership interest.
SFAS No. 160 is effective for fiscal years beginning after
December 15, 2008, and early adoption is prohibited. The Company does not
expect SFAS No. 160 to have a material impact on the Company’s
financial position or results of operations.
  F-8
  DYNAMIC
APPLICATIONS CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 
 In
February 2007, the FASB issued Statement No. 159 “The Fair Value Option for
Financial Assets and Financial Liabilities” including an amendment of FASB
Statement No. 115 (“SFAS No. 159”), which allows an entity the
irrevocable option to elect fair value for the initial and subsequent
measurement for certain financial assets and liabilities under an
instrument-by-instrument election. If the fair value option is elected for an
instrument, subsequent changes in fair value for that instrument will be
recognized in earnings. SFAS No. 159 also establishes additional
disclosure requirements and is effective for fiscal years beginning after
November 15, 2007, with early adoption permitted provided that the entity
also adopts Statement No. 157, “Fair Value Measurements”
(“SFAS No. 157”). SFAS No. 159 is not expected to have a
material impact on its results of operations or financial position.
 
 In
September 2006, the FASB issued SFAS No. 157 which defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles, and expands disclosures about fair value measurements.
SFAS No. 157 applies under other accounting pronouncements that
require or permit fair value measurements. SFAS No. 157 is effective
for fiscal years beginning after November 15, 2007, and interim periods
within those fiscal years. In February 2008, the FASB issued FASB Staff Position
No. SFAS No. 157-2, Effective Date of FASB Statement No. 157,
which provides a one-year deferral of the effective date of
SFAS No. 157 for non-financial assets and non-financial liabilities,
except those that are recognized or disclosed in the financial statements at
fair value on a recurring basis (at least annually). The adoption of
SFAS No. 157 for financial assets and financial liabilities is not
expected to have a material impact on the Company’s results of operations or
financial position.
 
 (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 March 31, 2009, 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.
  F-9
  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
March 31, 2009, loans from directors and stockholders amounted to $2,800 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.
 
 (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-10
  DYNAMIC
APPLICATIONS CORP.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS
 
 (6)  Income Taxes
 
 The
provision (benefit) for income taxes for the period ended March 31, 2009, was as
follows (assuming a 23% effective tax rate):
 
 2009Current
      Tax Provision:Federal-Taxable
      income
                        
                        $
                        -Total
      current tax provision
                        
                        $
                        -Deferred
      Tax Provision:Federal-Loss
      carryforwards
                        
                        $
                        20,269Change
      in valuation allowance
                        
                        
                        (20,269
                        )Total
      deferred tax provision
                        
                        $
                        -
 
 The
Company had deferred income tax assets as of March 31, 2009, as
follows:
 
 2009Loss
      carryforwards
                        
                        $
                        40,919Less
      - Valuation allowance
                        
                        
                        (40,919
                        )Total
      net deferred tax assets
                        
                        $
                        -
 
 The
Company provided a valuation allowance equal to the deferred income tax assets
for the period ended March 31, 2009, because it is not presently known whether
future taxable income will be sufficient to utilize the loss
carryforwards.
 
 As of
March 31, 2009, the Company had approximately $177,910 in tax loss carryforwards
that can be utilized in future periods to reduce taxable income, and expire
through the year 2029.
 
 (7)  Related Party
Transactions
 
 As
described in Note 4, as of March 31, 2009, the Company owed $2,800 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-11
  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.
 
 (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-12




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





The
Dynamic Applications’ invention relates to percussion machines and, more
particularly, to electromagnetic percussion hammers and related devices. 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.





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 intends to investigate the market potential for Kenaf. 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 intends to conduct a thorough market survey, with an emphasis on China,
the world's largest producer and the base for several major manufacturers
incorporating Kenaf in their product.





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. We intend to use the funds to execute our plan of
operation.




Our
auditors have issued an opinion on our financial statements which includes a
statement describing our going concern status. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills and meet our
other financial obligations. This is because we have not generated any revenues
and no revenues are anticipated until we begin marketing product we develop.
Accordingly, we must raise capital from sources other than the actual sale of
the product we develop. We must raise capital to implement our project and stay
in business. Even if we raise the maximum amount of money in this offering, we
do not know how long the money will last, however, we do believe it will last at
least twelve months.




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
$88,125  for the three months ended March 31, 2009, and a net
loss of $3,800 for the three months ended March 31, 2008. 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
March 31, 2009, we had $62,730  in cash and incurred net losses of
$88,125 during the period ending March 31 2009 . During the same period ended
March 31, 2008, the Company had $131,920  in cash and incurred net
losses of $3,800.





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 subscriptions  receivable during the first
three months of the year 2009 at an offering price of $0.01 cent per share in
accordance to Reg  “S” . As of May 5 2009 $15,000 remained as a
receivable in relation to this equity funding .





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 three months ended
March 31, 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:
      May 6 , 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