| SEGMENT REPORTING |
NOTE 13 – SEGMENT REPORTING As of June 30, 2026,the Company operated in two business segments: Dynamic Aero Systems, a developer and OEM of UAVs, and Dynamic Deliveries, a developer of autonomous mesh logistics networks. The Company evaluates performance and allocates resources based on profit or loss from operations before income taxes. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Segment information for the three months ended June 30, 2026, was as follows: | | Three Months Ended June 30, 2026 | | | | Dynamic Aerospace Systems | | | Dynamic Deliveries | | | Total | | Revenue | | | | | | | | | | Revenue | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Professional fees | | | 332,999 | | | | 37,000 | | | | 369,999 | | Salaries | | | 488,012 | | | | 30,127 | | | | 518,139 | | Depreciation and amortization | | | 58,196 | | | | 28,263 | | | | 86,459 | | Stock compensation expense | | | 503,008 | | | | 55,889 | | | | 558,897 | | Other general and administrative costs | | | 197,747 | | | | 8,649 | | | | 206,396 | | Total Operating Expenses | | | 1,579,962 | | | | 159,928 | | | | 1,739,890 | | | | | | | | | | | | | | | Loss from operations | | $ | (1,579,962 | ) | | $ | (159,928 | ) | | $ | (1,739,890 | ) |
Segment information for the three months ended June 30, 2025 was as follows: | | Three Months Ended June 30, 2025 | | | | Dynamic Aerospace Systems | | | Dynamic Deliveries | | | Total | | Revenue | | | | | | | | | | Revenue | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Professional fees | | | 210,426 | | | | 22,979 | | | | 233,405 | | Depreciation and Amortization | | | 66,231 | | | | 28,263 | | | | 94,494 | | Stock compensation expense | | | 70,051 | | | | - | | | | 70,051 | | Other general and administrative costs | | | 77,321 | | | | 2,875 | | | | 80,196 | | Total Operating Expenses | | | 424,029 | | | | 54,117 | | | | 478,146 | | | | | | | | | | | | | | | Loss from operations | | $ | (424,029 | ) | | $ | (54,117 | ) | | $ | (478,146 | ) |
Segment information for the six months ended June 30, 2026, was as follows: | | Six Months Ended June 30, 2026 | | | | Dynamic Aerospace Systems | | | Dynamic Deliveries | | | Total | | Revenue | | | | | | | | | | Revenue | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Professional fees | | | 586,057 | | | | 70,132 | | | | 656,189 | | Salaries | | | 891,482 | | | | 55,908 | | | | 947,390 | | Depreciation and amortization | | | 117,079 | | | | 56,526 | | | | 173,605 | | Stock compensation expense | | | 862,347 | | | | 95,816 | | | | 958,163 | | Other general and administrative costs | | | 259,319 | | | | 10,355 | | | | 269,674 | | Total Operating Expenses | | | 2,716,284 | | | | 288,737 | | | | 3,005,021 | | | | | | | | | | | | | | | Loss from operations | | $ | (2,716,284 | ) | | $ | (288,737 | ) | | $ | (3,005,021 | ) | | | | | | | | | | | | | | Identifiable Assets | | | | | | | | | | | | | Identifiable assets as of June 30, 2026 | | $ | 4,062,750 | | | $ | 9,141,273 | | | $ | 13,204,023 | | Identifiable assets as of December 31, 2025 | | $ | 4,111,293 | | | $ | 9,195,374 | | | $ | 13,306,667 | |
Segment information for the six months ended June 30, 2025 was as follows: | | Six Months Ended June 30, 2025 | | | | Dynamic Aerospace Systems | | | Dynamic Deliveries | | | Total | | Revenue | | | | | | | | | | Revenue | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Professional fees | | | 456,097 | | | | 50,276 | | | | 506,373 | | Depreciation and Amortization | | | 66,231 | | | | 28,263 | | | | 94,494 | | Stock compensation expense | | | 70,051 | | | | - | | | | 70,051 | | Other general and administrative costs | | | 127,136 | | | | 8,409 | | | | 135,545 | | Total Operating Expenses | | | 719,515 | | | | 86,948 | | | | 806,463 | | | | | | | | | | | | | | | Loss from operations | | $ | (719,515 | ) | | $ | (86,948 | ) | | $ | (806,463 | ) | | | | | | | | | | | | | | Identifiable Assets | | | | | | | | | | | | | Identifiable assets as of June 30, 2025 | | $ | 4,285,501 | | | | 11,704,259 | | | $ | 15,989,760 | |
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