Dynamic Aerospace Systems Corp: enters short term debt agreements

What happened

• Dynamic Aerospace Systems Corp reported that on Oct 16, 2026 it entered into agreements with Jeffrey Hail, the company's chief operating officer and a director, and Kent Wilson, the company's chief executive officer and chairman of the board. Each agreement matures on the earlier of (i) Dec 31, 2026 and (ii) the closing of a public offering in connection with the listing of the company's common stock (or, if no such offering, the fifth business day after such listing).
• The filing also reports that on Oct 16, 2026 the board approved an increase in the annual base salary of Robin Hoops, the company's chief financial officer, from $185,000 to $200,000, effective Sep 16, 2026, as provided in her offer letter dated Mar 10, 2026.

Key details

• To Jeffrey Hail: (a) a subordinated secured promissory note dated Sep 30, 2026 in the principal amount of $35,581.67, bearing simple interest at 18% per annum; (b) a subordinated secured revolving line of credit dated Sep 30, 2026 for up to $90,000 in principal charges with an opening balance of $105,452.71, bearing interest at 29.99% per annum compounded monthly; (c) an amended and restated short-term loan agreement dated Oct 13, 2026 consolidating $135,000 of prior advances into total charges of $163,421.06 of which $128,171.06 remained outstanding, with a 5% original issue discount, a flat interest charge of 15% of face amount and additional simple interest at 18% per annum from original maturity dates, unsecured.
• To Kent Wilson: (d) a subordinated secured revolving line of credit dated Sep 30, 2026 for up to $40,000 in principal charges with an opening balance of $49,977.58 (including reimbursement of $14,380.67 of financing costs); (e) Amendment No. 1 to a promissory note dated Sep 10, 2026 extending the maturity of the company's Sep 10, 2025 promissory note in the principal amount of $54,000, which bears interest at 18% per annum. The Sep 10, 2025 promissory note was originally issued with an original issue discount of $13,500.
• The filing states that the agreements in clauses (a), (b), (d), and (e) are secured by the company's assets in a position junior to the company's senior secured indebtedness, and that the agreements in clauses (a), (b), and (d) are subordinated in right of payment to that indebtedness. Mr. Hail and Mr. Wilson each waived any default arising from the company's non-payment on original maturity dates.

Why it may matter

• Item 1.01: entry into a material definitive agreement covers the debt and credit agreements described above with two executive officers. Item 2.03: creation of a direct financial obligation arises from these agreements. Item 5.02: reports an officer compensation change for the chief financial officer effective Sep 16, 2026. The filing does not show why the insider traded or why the company acted.