Move Object During Drag And Drop

I am just trying to understand during a drag and drop how can I transfer the actual object instead of just creating a new one. I believe I am close but I cannot nail down where I am going wrong. Here is my code I am using to test this.

First/Main:

Java Code:

package main;
import javax.swing.SwingUtilities;
public class Main {
public static void main(String[] args) {
SwingUtilities.invokeLater(new Runnable(){

[Code] ......

When I drag the JPanels it just copies and makes a new one. I tested this by having a sysout send to the console a private int that I set during the initial creation of the object.