Dynamic Aerospace Systems Corporation (BRQL) entered into an unsecured short-term loan agreement with Chief Operating Officer and director Jeffrey Hail, who agreed to advance up to $40,000 per advance and $150,000 total. Hail funded an initial $27,000 on October 23, 2026. Each advance carries a 5% original issue discount; simple interest at 18% per annum applies to amounts unpaid more than 14 days after funding. Repayment is due by the earlier of December 31, 2026, and the Company’s uplisting to a national securities exchange. These advances are to be repaid before payments under Hail’s other Company loan agreements.
Chief Executive Officer Kent B. Wilson reported approximately $54 million in customer inquiries and $21 million in product quotations received over seven months, covering potential customer requirements over three to four years. Management expects 10–15% of the quotations to convert to sales over the next six to twelve months; actual amounts and timing depend on customer decisions, manufacturing capacity and drone delivery schedules. The quotations are not booked orders, contracted backlog or recognized revenue.
Wilson also said the contemplated firm-commitment underwriting financing has not closed and remains subject to definitive terms and closing conditions. Completion of the potential national-exchange listing remains subject to exchange approval and other requirements.
Dynamic Aerospace Systems Corporation (BRQL) entered into financing agreements with Chief Operating Officer and director Jeffrey Hail and Chief Executive Officer and Chairman Kent Wilson on October 16, 2026. Hail's agreements include a $35,581.67 secured note at 18% simple interest; a revolving line capped at $90,000 in principal charges, excluding interest, with a $105,452.71 opening balance and 29.99% interest compounded monthly; and an amended short-term loan with $128,171.06 outstanding after repayments. Wilson's revolving line has a $40,000 principal-charge limit and a $49,977.58 opening balance, on substantially the same terms as Hail's line.
The amended loan consolidates $135,000 in Hail advances and directs 15% of gross proceeds from certain capital raises to repayment to the extent cash flow permits. Each agreement matures on the earlier of December 31, 2026, and the closing of a public offering in connection with a national securities exchange listing; without an offering, maturity is the fifth business day after listing. Hail and Wilson each waived defaults from nonpayment on original maturity dates. Secured obligations rank junior to senior secured indebtedness; Hail's note and both revolving lines are also subordinated in right of payment. Chief Financial Officer Robin Hoops' annual base salary increased from $185,000 to $200,000, effective September 16, 2026.
Dynamic Aerospace Systems Corporation filed a prospectus supplement under a Form S-1 registration covering up to 52,530,000 shares of common stock and incorporating its Quarterly Report for the period ended June 30, 2026. The company focuses on UAV manufacturing and autonomous logistics through its Dynamic Aerospace Systems and Dynamic Deliveries segments.
For the first six months of 2026, the company generated no revenue and recorded a net loss of $3,230,842, compared with a $1,299,619 net loss a year earlier. Cash was $7,605 and total assets were $13,204,023, while current liabilities were $4,382,167, resulting in a working capital deficit of $4,283,304. Management discloses that these losses, limited liquidity, and dependence on new financing raise substantial doubt about its ability to continue as a going concern.
The company is funding operations primarily through issuances of preferred and common stock, an equity line of credit, and multiple high-discount convertible and promissory notes with embedded derivative conversion features and attached warrants. Intangible assets from prior UAV-related acquisitions totaled $1,791,568 net, and goodwill was $9,796,433, reflecting the asset-heavy, early-stage nature of the business.
Dynamic Aerospace Systems Corporation is implementing a stockholder-approved corporate action to authorize a reverse stock split of its Common Stock and Class B Common Stock. The Board may choose any ratio between 1‑for‑1.5 and 1‑for‑200 and can effect the split at any time within 12 months by filing a Certificate of Amendment in Nevada. A single majority holder, Aerospace Capital Partners (ACP), holding 17,997,000 Common shares and 18,588,700 Series A Preferred shares (together about 74% of total voting power), approved the action by written consent on July 1, 2026, so no meeting or proxies are being solicited. The split will only become effective after the Board selects a ratio and files, and not before September 6, 2026.
Pre‑split, there are 29,626,787 Common and 15,374,651 Class B shares outstanding, with authorized capital of 325,000,000 Common, 50,000,000 Class B, and 225,000,000 Preferred. The split will reduce outstanding Common and Class B shares proportionally but will not change authorized share counts, increasing the number of authorized but unissued shares available for future corporate purposes. No fractional shares will be issued; holdings will be rounded up to the nearest whole share. Stockholders have no dissenter’s rights in connection with this action.
Dynamic Aerospace Systems (BRQL) reported a GAAP net loss of $2.18 million for the quarter ended June 30, 2026. Management highlighted that a substantial portion of this loss reflects non-cash accounting items, including depreciation and amortization, stock-based compensation, amortization of debt discount, and financing-related accounting costs, partially offset by a $105,000 non-cash gain from the fair value adjustment of derivative liabilities.
After adjusting for these non-cash items, management presents a non-GAAP Adjusted Operational Loss of $1.12 million, and, after further normalizing for $27,800 of S-1 registration and uplisting-related expenses, an Adjusted Operational Loss, as normalized of $1.09 million, or about $363,733 per month. The company links this cash utilization to expanded operations following 2025 asset acquisitions and a larger team focused on customer engagement, demonstrations, IP development, and sales.
Operationally, Dynamic Aerospace Systems advanced its UAV platforms through deliveries of Breacher/Mitigator systems to the Arizona Department of Public Safety, integration of Unusual Machines NDAA-compliant components, new provisional patents, and a partnership with Flightbox for autonomous medical drone logistics. The company is also investing in S-1 registration and a potential future uplisting to a national exchange, such as NYSE American, aiming to strengthen its capital-markets position and institutional visibility.
Dynamic Aerospace Systems Corporation, a pre-revenue UAV and autonomous logistics company, reported a net loss of $3,230,842 for the six months ended June 30, 2026, compared with $1,299,619 a year earlier. Total assets were $13.2 million, heavily concentrated in goodwill and UAV-related intangible assets, while cash fell to $7,605.
The company generated no revenue and incurred $3,005,021 of operating expenses, driven by higher salaries after the Vayu and GAC asset acquisitions and $958,163 of stock-based compensation from new RSU plans. Management disclosed a working capital deficit of $4,283,304 and stated there is substantial doubt about the ability to continue as a going concern without new capital.
Liquidity has been supported by issuing $1,479,522 of convertible and other notes (face value), equity private placements, and use of a $15 million Equity Line of Credit, under which 187,082 shares were sold for net proceeds of $92,356. These financings created $771,242 of derivative liabilities tied to variable-price conversion features and significant discounts and day-one financing losses. The company operates two segments, Dynamic Aerospace Systems (UAV OEM) and Dynamic Deliveries (autonomous logistics networks), but remains in the investment and scaling phase.
Dynamic Aerospace Systems Corporation obtained written consent from its majority stockholder, Aerospace Capital Partners (ACP), and board approval to authorize a reverse stock split of its Common Stock and Class B Common Stock at a ratio between 1-for-1.5 and 1-for-200, with the exact ratio and timing to be chosen by the board within 12 months of July 1, 2026. The action will be implemented by filing a Certificate of Amendment to the Nevada Articles of Incorporation after at least 20 days have passed from mailing this information statement.
As of the July 1, 2026 record date, the company had 29,601,787 common shares and 15,374,651 Class B common shares outstanding, plus several series of preferred stock with enhanced voting rights. ACP held 17,997,000 common shares and 18,564,700 Series A preferred shares, giving it approximately 74% of total voting power and allowing approval without a shareholder meeting or proxies. The reverse split is intended to raise the per-share trading price, support a potential application to list on a national securities exchange, and broaden institutional interest, though no outcome is assured.
Examples provided show that, at the maximum 1-for-200 ratio, common shares outstanding would decline to 148,009 and Class B common to 76,874, while each holder’s ownership percentage and relative voting rights would remain essentially unchanged apart from rounding. Authorized share counts (325,000,000 common, 50,000,000 Class B common, 225,000,000 preferred) and par values will not change, creating additional authorized but unissued shares that could later be used for capital raising, equity incentives, or acquisitions, although the company states it currently has no specific plans to issue these shares. Fractional shares will not be issued; any fractional entitlement will be rounded up to the next whole share. The company notes potential risks, including possible reduced liquidity, the chance the share price may not rise or stay high enough for an exchange listing, and the absence of dissenters’ rights under Nevada law, while indicating that the reverse split should generally be tax-free for U.S. shareholders.
Dynamic Aerospace Systems Corporation entered into a Securities Purchase Agreement for a private placement of up to $750,000 in common stock and warrants. This financing is structured in tranches negotiated individually with investors.
At the initial closing on June 18, 2026, the company sold 357,143 shares of common stock and warrants to purchase up to 535,715 additional shares to The Aeon Group, Inc. for $75,000. The two-year warrants carry a $0.30 exercise price and may be exercised on a cashless basis under certain registration conditions. The securities were issued under the Section 4(a)(2) private offering exemption.
Dynamic Aerospace Systems Corporation files a prospectus supplement to its Form S-1 registering up to 52,530,000 shares of common stock and attaches its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. The supplement supersedes inconsistent statements in the Prospectus and updates offerings information.
The attached Form 10-Q shows no revenue for the quarter, a net loss of $1,051,493, cash of $46,463, and a working capital deficit of $3,057,323. Management discloses substantial doubt about the company’s ability to continue as a going concern and describes recent asset acquisitions, multiple convertible financings, an Equity Line of Credit, outstanding derivative liabilities, RSU awards, and warrant positions.
Dynamic Aerospace Systems reported a GAAP net loss of approximately $1.05 million for the quarter ended March 31, 2026. A large portion of this loss came from non-cash items such as $399,000 of stock-based compensation, $192,000 of amortization of debt discount, and other amortization and depreciation charges.
After adjusting for non-cash items and about $27,000 of non-recurring legal and accounting costs, management estimates an adjusted operational loss of roughly $773,000, or about $258,000 per month, reflecting efforts to cut overhead and focus spending on core initiatives. The company also advanced a capital markets strategy, including work toward a potential future uplisting.
DAS expanded its intellectual property with ten recent patent filings covering autonomous drone delivery, UAV docking and capture systems, tactical indoor drones, swarm coordination, and related technologies. It intensified sales and demonstration activities with U.S. Air Force engagements, public safety agencies, an Arizona multi-agency drone expo, the AUVSI XPONENTIAL event, and an international Japanese defense and aerospace delegation.