**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**










**FORM
      10-QSB**







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


for
      the
      quarterly period ended: September 30 2008





**Commission
      File number:** 333-148664











**DYNAMIC
      APPLICATIONS CORP.**


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





**Delaware**


(State
      or
      other jurisdiction of Incorporation or organization)





98-0573566


(IRS
      Employee Identification No.)





c/o
      Eyal
      Rosenberg


46
      Techelet Street


Modiin,
      Israel 71700


Phone
      number: 972 - (3) 9787116


Fax
      number: 972 - (3) 9787145


(Address
      of principal executive offices)




Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during
      the preceding 12 months (or for such shorter period that the registrant was
      required to file such reports), and (2) has been subject to such filing
      requirements for the past 90 days. Yes x No o





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




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




Common
                Stock, $0.001 par value
            
            5,000,000(Class)
            
            (Outstanding
                as of October 16, 2008)









**DYNAMIC
      APPLICATIONS CORP.**


**Form
      10-QSB**





**Index**




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




2




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





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




3




**DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 
 **INDEX
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
  Financial
                  Statements-Balance
                  Sheet as of September 30, 2008
              
              
              F-2Statements
                  of Operations for the Three Months and the Period EndedSeptember
                  30, 2008, and Cumulative from Inception
              
              
              F-3Statements
                  of Cash Flows for the Period Ended September 30, 2008,and
                  Cumulative from Inception
              
              
              F-4Notes
                  to Financial Statements September 30, 2008
              
              
              F-5
  F-1
  **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **BALANCE
        SHEET (NOTE 2)**
 **AS
        OF SEPTEMBER 30, 2008**
 **(Unaudited)**
 
 **ASSETS****Current
                  Assets:**Cash
              
              $
              30,689Total
                  current assets
              
              
              30,689**Other
                  Assets:**Patent,
                  net of accumulated amortization $1,870
              
              
              16,830Total
                  other assets
              
              
              16,830**Total
                  Assets**
              
              $
              47,519**LIABILITIES
                  AND STOCKHOLDERS' (DEFICIT)****Current
                  Liabilities:**Accounts
                  payable and accrued liabilities
              
              $
              15,000Loans
                  from related parties - Directors and stockholders
              
              
              3,950Total
                  current liabilities
              
              
              18,950Total
                  liabilities
              
              
              18,950**Commitments
                  and Contingencies****Stockholders'
                  Equity:**Common
                  stock, par value $.0001 per share, 200,000,000 shares authorized;
                  5,000,000 shares issued and outstanding
              
              
              500Additional
                  paid-in capital
              
              
              59,800(Deficit)
                  accumulated during the development stage
              
              
              (31,731
              )Total
                  stockholders' equity
              
              
              28,569**Total
                  Liabilities and Stockholders' Equity**
              
              $
              47,519
 
 The
        accompanying notes to financial statements
 are
        an
        integral part of these financial statements.
  F-2
  **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF OPERATIONS (NOTE 2)**
 **FOR
        THE THREE MONTHS AND THE PERIOD ENDED SEPTEMBER 30, 2008,**
 **AND
        CUMULATIVE FROM INCEPTION (MARCH 7, 2008)**
 **THROUGH
        SEPTEMBER 30, 2008**
 **(Unaudited)**
 
 **Three months****Ended**
              
              **Period Ended**
              
              **Cumulative****September 30,**
              
              **September 30,**
              
              **From****2008**
              
              **2008**
              
              **Inception****Revenues**
              
              $
              -
              
              $
              -
              
              $
              -**Expenses:**General
                  and administrative-Professional
                  fees
              
              
              6,360
              
              
              24,630
              
              
              24,630Consulting
              
              
              1,520
              
              
              1,520
              
              
              1,520Amortization
              
              
              935
              
              
              1,870
              
              
              1,870Legal
                  - incorporation
              
              
              -
              
              
              2,050
              
              
              2,050Other
              
              
              307
              
              
              677
              
              
              677Total
                  general and administrative expenses
              
              
              9,122
              
              
              30,747
              
              
              30,747**(Loss)
                  from Operations**
              
              
              (9,122
              )
              
              (30,747
              )
              
              (30,747
              )**Other
                  Income (Expense)**Foreign
                  currency transaction expense
              
              
              (984
              )
              
              (984
              )
              
              (984
              )**Provision
                  for income taxes**
              
              
              -
              
              
              -
              
              
              -**Net
                  (Loss)**
              
              $
              (10,106
              )
              $
              (31,731
              )
              $
              (31,731
              )**(Loss)
                  Per Common Share:**(Loss)
                  per common share - Basic and Diluted
              
              $
              (0.00
              )
              $
              (0.01
              )**Weighted
                    Average Number of Common Shares**Outstanding - Basic and
                    Diluted
              
              
              4,500,000
              
              
              3,519,231
  The
        accompanying notes to financial statements are
 an
        integral part of these statements.
  F-3
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF CASH FLOWS (NOTE 2)**
 **FOR
        THE PERIOD ENDED SEPTEMBER 30, 2008,**
 **AND
        CUMULATIVE FROM INCEPTION (MARCH 7, 2008)**
 **THROUGH
        SEPTEMBER 30, 2008**
 **(Unaudited)**
 
 **Period Ended**
              
              **Cumulative****September 30,**
              
              **From****2008**
              
              **Inception****Operating
                  Activities:**Net
                  (loss)
              
              $
              (31,731
              )
              $
              (31,731
              )Adjustments
                  to reconcile net (loss) to net cash (used in) operating
                  activities:Amortization
              
              
              1,870
              
              
              1,870Changes
                  in net liabilities- Accounts payable and accrued
                  liabilites
              
              
              15,000
              
              
              15,000**Net
                  Cash Used in Operating Activities**
              
              
              (14,861
              )
              
              (14,861
              )**Investing
                  Activities:**Acquisition
                  and costs of patent
              
              
              (18,700
              )
              
              (18,700
              )**Net
                  Cash Used in Investing Activities**
              
              
              (18,700
              )
              
              (18,700
              )**Financing
                  Activities:**Stock
                  subscriptions received
              
              
              300
              
              
              300Common
                  stock issued
              
              
              80,000
              
              
              80,000Deferred
                  offering costs applied
              
              
              (20,000
              )
              
              (20,000
              )Loans
                  from related parties - Directors and stockholders
              
              
              3,950
              
              
              3,950**Net
                  Cash Provided by Financing Activities**
              
              
              64,250
              
              
              64,250**Net
                  (Decrease) Increase in Cash**
              
              
              30,689
              
              
              30,689**Cash
                  - Beginning of Period**
              
              
              -
              
              
              -**Cash
                  - End of Period**
              
              $
              30,689
              
              $
              30,689**Supplemental
                  Disclosure of Cash Flow Information:**Cash
                  paid during the period for:Interest
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              -
              
              $
              -
 
 **Supplemental
        schedule of noncash investing and financing activities:**
 Common
        stock was issued in exchange for subscriptions receivable in the amount of
        $300.
 Accruals
        in the amount $20,000 were incurred for deferred offering costs.
 Loans
        from related parties increased as a result of payment of $1,750 to a creditor
        by
        a stockholder on behalf of the Company.
 
 The
        accompanying notes to financial statements are
 an
        integral part of these statements.
  F-4
  **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
  **(1)**  **Summary
        of Significant Accounting Policies**
 
 *Basis
        of Presentation and Organization*
 
 Dynamic
        Applications Corp. (“Dynamic Applications” or the “Company”) is a Delaware
        corporation in the development stage and has not commenced operations. The
        Company was incorporated under the laws of the State of Delaware on March
        7,
        2008. The business plan of the Company is to develop a commercial application
        of
        the design in a patent of a “Electromagnetic percussion device” which is a
        device intended to provide an electromagnetic percussion hammer. The Company
        also intends to enhance the existing prototype, obtain approval of its patent
        application, and manufacture and market the product and/or seek third party
        entities interested in licensing the rights to manufacture and market the
        device.. The accompanying financial statements of Dynamic Applications were
        prepared from the accounts of the Company under the accrual basis of
        accounting.
 
 The
        Company has 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 .
 
 *Unaudited
        Interim Financial Statements*
 
 The
        interim financial statements of the Company as of September 30, 2008, and
        for
        the periods ended, and cumulative from inception, are unaudited. However,
        in the
        opinion of management, the interim financial statements include all adjustments,
        consisting only of normal recurring adjustments, necessary to present fairly
        the
        Company’s financial position as of September 30, 2008, and the results of its
        operations and its cash flows for the periods ended September 30, 2008, and
        cumulative from inception. These results are not necessarily indicative of
        the
        results expected for the calendar year ending December 31, 2008. The
        accompanying financial statements and notes thereto do not reflect all
        disclosures required under accounting principles generally accepted in the
        United States. Refer to The Company’s audited financial statements contained in
        its Registration Statement on Form S-1 as of March 31, 2008, for additional
        information, including significant accounting policies.
  *Cash
        and Cash Equivalents*
 
 For
        purposes of reporting within the statement of cash flows, the Company considers
        all cash on hand, cash accounts not subject to withdrawal restrictions or
        penalties, and all highly liquid debt instruments purchased with a maturity
        of
        three months or less to be cash and cash equivalents.
  *Revenue
        Recognition*
 
 The
        Company is in the development stage and has yet to realize revenues from
        operations. Once the Company has commenced operations, it will recognize
        revenues when delivery of goods or completion of services has occurred provided
        there is persuasive evidence of an agreement, acceptance has been approved
        by
        its customers, the fee is fixed or determinable based on the completion of
        stated terms and conditions, and collection of any related receivable is
        probable.
  F-5
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 *Loss
        per Common Share*
 
 Basic
        loss per share is computed by dividing the net loss attributable to the common
        stockholders by the weighted average number of shares of common stock
        outstanding during the period. Fully diluted loss per share is computed similar
        to basic loss per share except that the denominator is increased to include
        the
        number of additional common shares that would have been outstanding if the
        potential common shares had been issued and if the additional common shares
        were
        dilutive. There were no dilutive financial instruments issued or outstanding
        for
        the period ended September 30, 2008.
  *Income
        Taxes*
 
 The
        Company accounts for income taxes pursuant to SFAS No. 109, *Accounting
        for Income Taxes* (“SFAS
        109”). Under SFAS 109, deferred tax assets and liabilities are determined based
        on temporary differences between the bases of certain assets and liabilities
        for
        income tax and financial reporting purposes. The deferred tax assets and
        liabilities are classified according to the financial statement classification
        of the assets and liabilities generating the differences.
 
 The
        Company maintains a valuation allowance with respect to deferred tax assets.
        The
        Company establishes a valuation allowance based upon the potential likelihood
        of
        realizing the deferred tax asset and taking into consideration the Company’s
        financial position and results of operations for the current period. Future
        realization of the deferred tax benefit depends on the existence of sufficient
        taxable income within the carryforward period under the Federal tax
        laws.
 
 Changes
        in circumstances, such as the Company generating taxable income, could cause
        a
        change in judgment about the realizability of the related deferred tax asset.
        Any change in the valuation allowance will be included in income in the year
        of
        the change in estimate.
 
 *Fair
        Value of Financial Instruments*
 
 The
        Company estimates the fair value of financial instruments using the available
        market information and valuation methods. Considerable judgment is required
        in
        estimating fair value. Accordingly, the estimates of fair value may not be
        indicative of the amounts the Company could realize in a current market
        exchange. As of September 30, 2008, the carrying value of accrued liabilities,
        and loans from directors and stockholders approximated fair value due to
        the
        short-term nature and maturity of these instruments.
  *Patent
        and Intellectual Property*
 
 The
        Company capitalizes the costs associated with obtaining a Patent or other
        intellectual property associated with its intended business plan. Such costs
        are
        amortized over the estimated useful lives of the related assets.
  *Deferred
        Offering Costs*
 
 The
        Company defers as other assets the direct incremental costs of raising capital
        until such time as the offering is completed. At the time of the completion
        of
        the offering, the costs are charged against the capital raised. Should the
        offering be terminated, deferred offering costs are charged to operations
        during
        the period in which the offering is terminated.
  F-6
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
  *Impairment
        of Long-Lived Assets*
 
 The
        Company evaluates the recoverability of long-lived assets and the related
        estimated remaining lives when events or circumstances lead management to
        believe that the carrying value of an asset may not be recoverable. For the
        period ended September 30, 2008, no events or circumstances occurred for
        which
        an evaluation of the recoverability of long-lived assets was
        required.
  *Common
        Stock Registration Expenses*
 
 The
        Company considers incremental costs and expenses related to the registration
        of
        equity securities with the SEC, whether by contractual arrangement as of
        a
        certain date or by demand, to be unrelated to original issuance transactions.
        As
        such, subsequent registration costs and expenses are expensed as
        incurred.
  *Estimates*
 
 The
        financial statements are prepared on the basis of accounting principles
        generally accepted in the United States. The preparation of financial statements
        in conformity with generally accepted accounting principles requires management
        to make estimates and assumptions that affect the reported amounts of assets
        and
        liabilities as of September 30, 2008, and expenses for the period ended
        September 30, 2008, and cumulative from inception. Actual results could differ
        from those estimates made by management.
  *Fiscal
        Year End*
 
 The
        Company has adopted a fiscal year end of December 31.
 
 **(2)**  **Development
        Stage Activities and Going Concern**
 
 The
        Company is currently in the development stage, and has no operations. The
        business plan of the Company is to develop a commercial application of the
        design in a patent of a “Electromagnetic percussion device” which is a device
        intended to provide an electromagnetic percussion hammer. The Company also
        intends to enhance the existing prototype, obtain approval of its patent
        application, and manufacture and market the product and/or seek third party
        entities interested in licensing the rights to manufacture and market the
        device.
 
 In
        March
        2008, the Company entered into a Patent Transfer and Sale Agreement whereby
        the
        Company acquired all of the right, title and interest in the patent known
        as the
“Electromagnetic percussion device” for consideration of $17,000 plus legal fees
        of $1,700. The United States Patent Application 5,497,555 was granted on
        March
        12, 1996.
  F-7
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 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 .
 
 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 September 30,
        2008,
        the cash resources of the Company were insufficient to meet its current business
        plan, and the Company had negative working capital. These and other factors
        raise substantial doubt about the Company’s ability to continue as a going
        concern. The accompanying financial statements do not include any adjustments
        to
        reflect the possible future effects on the recoverability and classification
        of
        assets or the amounts and classification of liabilities that may result from
        the
        possible inability of the Company to continue as a going concern.
 
 **(3)**  **Patent**
 
 In
        March
        2008, the Company entered into a Patent Transfer and Sale Agreement whereby
        the
        Company acquired all of the right, title and interest in the patent known
        as the
“Electromagnetic percussion device” for consideration of $17,000 plus legal fees
        of $1,700. The United States Patent Application 5,497,555 was granted on
        March
        12, 1996. Under the terms of the Patent Transfer and Sale Agreement, the
        Company
        was assigned rights to the patent free of any liens, claims, royalties,
        licenses, security interests or other encumbrances. The assignment of the
        patent
        was recorded at the U.S. Patent and Trademark Office on April 13, 2008. As
        of
        September 30, 2008 the historical cost of obtaining the patent ($17,000)
        and
        legal fees ($1,700) for acquiring the patent have been capitalized by the
        Company. The historical cost of the Patent will be amortized over its remaining
        useful life, which is estimated to be 5 years.
 
 **(4)**  **Loans
        from Related Parties - Directors and Stockholders**
 
 As
        of
        September 30, 2008, loans from related parties - Directors and stockholders
        amounted to $3,950, and represented working capital advances from two Directors
        who are also stockholders of the Company. The loans are unsecured, non-interest
        bearing, and due on demand.
  F-8
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 **(5)**  **Common
        Stock**
 
 On
        March
        17, 2008, the Company issued 3,000,000 shares of its common stock to two
        individuals who are Directors and officers for proceeds of
        $300.
  The
        Company has 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 .
 
 **(6)**  **Income
        Taxes**
 
 The
        provision (benefit) for income taxes for the period ended September 30, 2008,
        was as follows (assuming a 23% effective tax rate):
 
 **2008**Current
                  Tax Provision:Federal
                  and state-Taxable
                  income
              
              $
              -Total
                  current tax provision
              
              $
              -Deferred
                  Tax Provision:Federal
                  and state-Loss
                  carryforwards
              
              $
              7,298Change
                  in valuation allowance
              
              
              (7,298
              )Total
                  deferred tax provision
              
              $
              -
 
 The
        Company had deferred income tax assets as of September 30, 2008, as
        follows:
 
 **2008**Loss
                  carryforwards
              
              $
              7,298Less
                  - Valuation allowance
              
              
              (7,298
              )Total
                  net deferred tax assets
              
              $
              -
 
 The
        Company provided a valuation allowance equal to the deferred income tax assets
        for the period ended September 30, 2008, because it is not presently known
        whether future taxable income will be sufficient to utilize the loss
        carryforwards.
  F-9
  **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 As
        of
        September 30, 2008, the Company had approximately $31,731 in tax loss
        carryforwards that can be utilized in future periods to reduce taxable income,
        and expire in the year 2028.
 
 **(7)**  **Related
        Party Transactions**
 
 As
        described in Note 4, as of September 30, 2008, the Company owed $3,950 to
        two
        individuals who are Directors, officers, and principal stockholders of the
        Company for working capital loans.
 
 As
        described in Note 5, on March 17, 2008, the Company issued 3,000,000 shares
        of
        its common stock to two individuals who are Directors and officers for proceeds
        of $300.
 
 **(8)**  **Commitments**
 
 In
        May
        2008, the Company entered into an Agreement with Island Capital Management,
        LLC
        dba Island Stock Transfer (“Island Stock Transfer”) for services. Under the
        Agreement, the Company agreed to pay to Island Stock Transfer fees amounting
        to
        $12,000 payable as follows: $1,000 due at the time of execution of the
        Agreement; and, $11,000 within 60 days.
 
 **(9)**  **Recent
        Accounting Pronouncements**
  In
        September 2006, the Financial Accounting Standards Board (“FASB”) issued
        Statement of Financial Accounting Standards (“SFAS”) No. 157, *“Fair
        Value Measurement* s *.”* This
        statement defines fair value, establishes a framework for measuring fair
        value
        in generally accepted accounting principles, and expands disclosure about
        fair
        value measurements. This statement applies under other accounting pronouncements
        that require or permit fair value measurement, the FASB having previously
        concluded in those accounting pronouncement that fair value is the relevant
        measurement attribute. This statement does not require any new fair value
        measurements. However, for some entities, the application of the statement
        will
        change current practice. This statement is effective for financial statements
        issued for fiscal years beginning after November 15, 2007, and interim periods
        within those fiscal years. The management of the Company does not expect
        the
        adoption of this pronouncement to have a material impact on its financial
        statements.
  In
        September 2006, the FASB issued SFAS No. 158, *“Employers’
        Accounting for Defined Benefit Pension and Other Postretirement Plans - An
        Amendment of FASB Statements No. 87, 88, 106 and 132(R)* . *”* This
        statement improves financial reporting by requiring an employer to recognize
        the
        overfunded or underfunded status of a defined benefit postretirement plan
        (other
        than a multi-employer plan) as an asset or liability in its statement of
        financial position and to recognize changes in that funded status in the
        year in
        which the changes occur through comprehensive income of a business entity
        or
        changes in unrestricted net assets of a not-for-profit organization. This
        statement also improves financial reporting by requiring an employer to measure
        the funded status of a plan as of the date of its year-end statement of
        financial position, with limited exceptions. The requirement to measure plan
        assets and benefit obligations as of the date of the employer’s fiscal year-end
        statement of financial position is effective for fiscal years ending after
        December 15, 2008. The management of the Company does not expect the adoption
        of
        this pronouncement to have a material impact on its financial
        statements.
  F-10
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 In
        February 2007, the FASB issued SFAS No. 159, *“The
        Fair Value Option for Financial Assets and Financial Liabilities - Including
        an
        Amendment of FASB Statement No. 115,”* which
        permits entities to choose to measure many financial instruments and certain
        other items at fair value that are not currently required to be measured
        at fair
        value. An entity would report unrealized gains and losses on items for which
        the
        fair value option has been elected in earnings at each subsequent reporting
        date. The objective is to improve financial reporting by providing entities
        with
        the opportunity to mitigate volatility in reported earnings caused by measuring
        related assets and liabilities differently without having to apply complex
        hedge
        accounting provisions. The decision about whether to elect the fair value
        option
        is applied instrument by instrument, with a few exceptions; the decision
        is
        irrevocable; and it is applied only to entire instruments and not to portions
        of
        instruments. SFAS No. 159 requires disclosures that facilitate comparisons
        (a)
        between entities that choose different measurement attributes for similar
        assets and liabilities and (b) between assets and liabilities in the financial
        statements of an entity that selects different measurement attributes for
        similar assets and liabilities. SFAS No. 159 is effective for financial
        statements issued for fiscal years beginning after November 15, 2007. Early
        adoption is permitted as of the beginning of a fiscal year provided the entity
        also elects to apply the provisions of SFAS No. 157. Upon implementation,
        an
        entity shall report the effect of the first re-measurement to fair value
        as a
        cumulative-effect adjustment to the opening balance of retained earnings.
        Since
        the provisions of SFAS No. 159 are applied prospectively, any potential impact
        will depend on the instruments selected for fair value measurement at the
        time
        of implementation. The management of the Company does not expect the adoption
        of
        this pronouncement to have a material impact on its financial
        statements.
 
 In
        December 2007, the FASB issued SFAS No. 160, *“Noncontrolling
        Interests in Consolidated Financial Statements - An Amendment of ARB No.
        51,”* which
        establishes accounting and reporting standards to improve the relevance,
        comparability, and transparency of financial information in its consolidated
        financial statements. This is accomplished by requiring all entities, except
        not-for-profit organizations, that prepare consolidated financial statements
        to
        (a) clearly identify, label, and present ownership interests in subsidiaries
        held by parties other than the parent in the consolidated statement of financial
        position within equity, but separate from the parent’s equity, (b) clearly
        identify and present both the parent’s and the noncontrolling’s interest
        attributable consolidated net income on the face of the consolidated statement
        of income, (c) consistently account for changes in parent’s ownership interest
        while the parent retains it controlling financial interest in subsidiary
        and for
        all transactions that are economically similar to be accounted for similarly,
        (d) measure of any gain, loss or retained noncontrolling equity at fair value
        after a subsidiary is deconsolidated, and (e) provide sufficient disclosures
        that clearly identify and distinguish between the interests of the parent
        and
        the interests of the noncontrolling owners. This Statement also clarifies
        that a
        noncontrolling interest in a subsidiary is an ownership interest in the
        consolidated entity that should be reported as equity in the consolidated
        financial statements. SFAS No. 160 is effective for fiscal years, and interim
        periods on or after December 15, 2008. The management of the Company does
        not
        expect the adoption of this pronouncement to have a material impact on its
        financial statements.
  F-11
 
 **DYNAMIC
        APPLICATIONS CORP.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008**
 **(Unaudited)**
 
 In
        December 2007, the FASB issued SFAS 141R, “ *Business
        Combinations - Revised 2007* ,”
which
        replaces FASB Statement No. 141, “ *Business
        Combinations* .”
SFAS
        141R ** establishes
        principles and requirements intending to improve the relevance, representational
        faithfulness, and comparability of information that a reporting entity provides
        in its financial reports about a business combination and its effects. This
        is
        accomplished through requiring the acquirer to recognize assets acquired
        and
        liabilities assumed arising from contractual contingencies as of the acquisition
        date, measured at their acquisition-date fair values. This includes contractual
        contingencies only if it is more likely than not that they meet the definition
        of an asset or a liability in FASB Concepts Statement No. 6, “ *Elements
        of Financial Statements* - *a
        replacement of FASB Concepts Statement No. 3.* ” ** This
        statement also requires the acquirer to recognize goodwill as of the acquisition
        date, measured as a residual. However, this statement improves the way in
        which
        an acquirer’s obligations to make payments conditioned on the outcome of future
        events are recognized and measured, which in turn improves the measure of
        goodwill. This statement also defines a bargain purchase as a business
        combination in which the total acquisition-date fair value of the consideration
        transferred plus any noncontrolling interest in the acquiree, and it requires
        the acquirer to recognize that excess in earnings as a gain attributable
        to the
        acquirer. This therefore improves the representational faithfulness and
        completeness of the information provided about both the acquirer’s earnings
        during the period in which it makes a bargain purchase and the measures of
        the
        assets acquired in the bargain purchase. The Company does not expect the
        adoption of this pronouncement to have a material impact on its financial
        statements.
  F-12





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





USE
      OF
      NAMES





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





CAUTIONARY
      STATEMENT REGARDING FORWARD-LOOKING STATEMENTS





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


·  dependence
      on key personnel;


·  competitive
      factors;


·  degree
      of
      success of research and development programs


·  the
      operation of our business; and


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


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




4




**ABOUT
      OUR COMPANY**




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




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




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





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





During
      the three months ended September 30 2008 the Company completed its offering
      pursuant to the effective registration statement and issued 2 ,000,000 shares
      of
      common stock and raised approximately $80,000





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




5




**Employees**





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




**PLAN
      OF OPERATIONS**




**Liquidity,
      Capital Resources and Operations:**




During
      the fiscal quarter ended September 30 2008, net cash used by operating
      activities was $14,861 . The Company incurred a net loss of $31,731 for the
      fiscal quarter ended September 30 2008.





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




**Results
      of Operations:**


**For
      the Nine Months Ended September 30, 2008**




The
      net
      loss , comprised of general and administrative operating expenses amounted
      to
      $31,731 for the Nine Months Ended June 30 2008.





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




6




**Inflation:**




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




**Off-Balance
      Sheet Arrangements**





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




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





Evaluation
      and Disclosure Controls and Procedures




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





**Changes
      in Internal Controls over Financial Reporting**




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




7




**Part
      II. Other Information**





**Item
      1. Legal Proceedings** .





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





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





None





**Item
      3. Defaults Upon Senior Securities**





None





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





None





**Item
      5. Other Information**





None





**Item
      6. Exhibits**




a.
            Exhibits:


3.1*
            Articles
                of Incorporation of the Company3.2*
            By-Laws
                of the Company


3.3*
            Form
                of Common Stock Certificate of the Company31.1
            Certification
                of Principal Executive Officer Pursuant to Exchange Act Rule
                13A-14(A)/15D-14(A) as Adopted Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002


31.2
            Certification
                of Principal Financial Officer Pursuant to Exchange Act Rule
                13A-14(A)/15D-14(A) as Adopted Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 200232.1
            Certification
                of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350,
                as
                Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002


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




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




8




**Signatures**





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, Dynamic Applications Corp. has duly caused this Report to be signed on
      behalf of the undersigned thereunto duly authorized on October 16 ,
      2008.




**Dynamic
      Applications Corp.**





By:Eyal
                RozenbergPresident
                and CEO





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




Signature
            
            Title
            
            Date/s/Eyal Rozenberg
            
            President
                and CEO
            
            October
                16, 2008Eyal
                Rozenberg,
            
            and
                Director/s/
                Eliezer Broideh
            
            Secretary
                and Director
            
            October
                16, 2008Eliezer
                Broideh




9