$BRQL

DYNAMIC AEROSPACE SYSTEMS Corp

CIK:0001854526|SEC Filings

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating expenses
Professional fees	$ 369,999	$ 233,405	$ 656,189	$ 506,373
Salaries and benefits	1,077,036	70,051	1,905,553	70,051
Depreciation and amortization	86,459	94,494	173,605	94,494
Other general and administrative costs	206,396	80,196	269,674	135,545
Total operating expenses	1,739,890	478,146	3,005,021	806,463
Loss from operations	(1,739,890)	(478,146)	(3,005,021)	(806,463)
Other income and expense
Financing cost	(297,602)	0	(308,236)	0
Change in fair value of derivative financial instruments	104,629	0	541,886	0
Amortization of debt discount	(223,033)	(327,921)	(414,797)	(491,700)
Interest and other expense (income)	(23,453)	300	(44,674)	(1,456)
Other expense net	(439,459)	(327,621)	(225,821)	(493,156)
Net loss before income tax	(2,179,349)	(805,767)	(3,230,842)	(1,299,619)
Provision for income taxes (benefit)	0	0	0	0
Net loss	$ (2,179,349)	$ (805,767)	$ (3,230,842)	$ (1,299,619)
Net Loss Per Common Stock - basic and fully diluted	$ (0.05)	$ (0.03)	$ (0.08)	$ (0.05)
Weighted-average number of shares of Common
Stock outstanding - basic and fully diluted	43,818,010	30,716,783	43,040,909	28,179,985

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net loss	$ (3,230,842)	$ (1,299,619)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	17,816	16,600
Amortization	155,789	77,894
Amortization of debt discount	414,797	491,700
Stock based compensation expense	958,163	70,051
Financing cost	308,236	0
Change in fair value of derivative financial instruments	(541,886)	0
Changes in assets and liabilities
Prepaid Expenses	(16,057)	0
Right of use lease asset	36,861	13,298
Accounts payable	1,021,656	(188,560)
Accrued interest	44,674	(14,004)
Lease liability	(36,861)	(13,298)
Due to related party	35,624	74,572
Net cash used in operating activities	(832,030)	(771,366)
Cash Flows from Investing Activities
Acquisition of fixed assets	(66,229)	0
Net cash used in investing activities	(66,229)	0
Cash Flows from Financing Activities
Proceeds from the issuance of common shares for cash	192,355	0
Proceeds from the issuance of preferred shares for cash	210,000	0
Proceeds from issuance of convertible notes and promissory notes	579,500	843,200
Repayment of promissory notes	(130,000)	(55,000)
Net cash provided by financing activities	851,855	788,200
Net (Decrease) Increase in Cash	(46,404)	16,834
Net Change in Cash
Cash at beginning of period	54,009	33
Cash at end of period	7,605	16,867
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	0	14,004
Cash paid during the period for income tax	0	0
Schedule of non-cash investing and financing activities:
Conversion of contingent equity consideration payable to equity	0	11,281,541
Conversion of Series A Preferred Stock to Common Stock	66	0
Conversion of convertible debt to equity	142,070	840,675
Recognition of operating lease: right of use asset and lease liability	0	96,347
Fair value of warrants issued as deferred offering cost	0	990,614
Fair value of convertible debt beneficial conversion feature allocated to proceeds of debt	695,188	491,700
Fair value of warrants allocated to proceeds of debt	98,773	0
Fair value of common shares allocated to proceeds of debt	12,971	0
Convertible note proceeds receivable from lender	75,000	0
Contingent equity consideration payable from acquisition	$ 0	$ 3,323,192

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash	$ 7,605	$ 54,009
Prepaid expenses	16,261	204
Amount receivable from lender	75,000	0
Total Current Assets	98,866	54,213
Long-term Assets
Right of use lease asset	0	36,861
Fixed assets, net	79,602	31,189
Intangible assets, net	1,791,568	1,947,357
Goodwill	9,796,433	9,796,433
Deferred offering costs	1,437,554	1,440,614
Total Non-current Assets	13,105,157	13,252,454
Total Assets	13,204,023	13,306,667
Current Liabilities
Accounts payable and accrued liabilities	2,512,913	1,491,260
Convertible notes, net of unamortized discount	873,333	558,364
Interest payable	79,757	35,083
Lease liability, current portion	0	36,861
Due to related parties	144,922	109,298
Derivative financial instruments	771,242	634,424
Total Current Liabilities	4,382,167	2,865,290
Stockholders' Equity
Equity issuable	2,805	2,805
Additional paid in capital	21,833,906	20,222,861
Accumulated deficit	(13,021,962)	(9,791,120)
Total Stockholders' Equity	8,821,856	10,441,377
Total Liabilities and Stockholders' Equity	13,204,023	13,306,667
Series A1 Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	20	0
Series E Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	32	0
Series D-1 Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	127	89
Common Stock Class A [Member]
Stockholders' Equity
Common stock, value	2,932	2,704
Common Stock Class B [Member]
Stockholders' Equity
Common stock, value	1,537	1,537
Series A Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	2,414	2,456
Series B Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	0	0
Series C Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	33	33
Series D Preferred Shares [Member]
Stockholders' Equity
Preferred stock, value	$ 12	$ 12