UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 20182021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto.

Commission file number:001-37580 000-56010

MESO NUMISMATICS, INC.

(Exact name of registrant as specified in its charter)

Nevada 88-0492191
(State or other jurisdiction of

incorporation or organization)
 (I.R.S. Employer

Identification No.)

3265 Johnson Avenue,433 Plaza Real Suite 213275

Riverdale, NY 10463Boca Raton, Florida 33432

(Address of principal executive offices) (Zip Code)

(800) 889-9509956-3935

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered under Section 12(b) of the Exchange Act:None

Securities registered under Section 12(g) of the Exchange Act:Common Stock, par value $0.001 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐    No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐   No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐   No ☒ No ☐ 

Indicate by check mark if disclosure of delinquent filers pursuantwhether the registrant has filed a report on and attestation to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the bestits management’s assessment of the registrant’s knowledge, in definitive proxyeffectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.issued its audit report.. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
 Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ 

TheState the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the registrant on June 30, 2018, based on a closing pricelast business day of $0.0787 was $419,867. Asthe registrant’s most recently completed second fiscal quarter $2,282,559.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 12,161,403 shares as of April 16, 2019, the registrant had 4,901,024 shares of its common stock, par value $0.0001 per share, outstanding.29, 2022

Documents Incorporated By Reference:None

 

 

 

 

TABLE OF CONTENTS

 

PART I 1
   
ITEM 1.BUSINESS1
   
ITEM 1A.RISK FACTORS9
ITEM 1B.RISK FACTORSUNRESOLVED STAFF COMMENTS519
ITEM 2.PROPERTIES19
ITEM 3.LEGAL PROCEEDINGS19
ITEM 4.MINE SAFETY DISCLOSURES19
   
ITEM 1B.PART IIUNRESOLVED STAFF COMMENTS1220
   
ITEM 2.PROPERTIES13
ITEM 3.LEGAL PROCEEDINGS13
ITEM 4.MINE SAFETY DISCLOSURES13
PART II13
ITEM 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES13

20

   
ITEM 6.[Reserved]SELECTED FINANCIAL DATA1621
   
ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS1621
   
ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK2226
   
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA2226
   
ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE2226
ITEM 9A.CONTROLS AND PROCEDURES27
ITEM 9B.OTHER INFORMATION27
ITEM 9CDisclosure Regarding Foreign Jurisdictions that Prevent Inspections27
   
ITEM 9A.PART IIICONTROLS AND PROCEDURES2228
   
ITEM 9B.10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEOTHER INFORMATION2428
   
ITEM 11.PART IIIEXECUTIVE COMPENSATION2430
   
ITEM 10.12.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE24
ITEM 11.EXECUTIVE COMPENSATION26
ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS2731
ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE31
ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICES32
PART IV33
ITEM 15.EXHIBITS, FINANCIAL STATEMENT SCHEDULES33
ITEM 16.10-K SUMMARY33
   
ITEM 13.SIGNATURESCERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE28
ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICES28
PART IV
ITEM 15.EXHIBITS, FINANCIAL STATEMENT SCHEDULES
SIGNATURES3034

 

i

 

 

As used in this Annual Report on Form 10-K, unless the context otherwise requires, the terms the “Company,” “Registrant,” “we,” “us,” “our,” “Meso,” or “MSSV” refer to Meso Numismatics, Inc., a Nevada corporation.

 

FORWARD-LOOKING STATEMENTS

 

Except for statements of historical fact, some information in this document contains “forward-looking statements” that involve substantial risks and uncertainties. You can identify these forward-looking statements by words such as “may,” “will,” “should,” “anticipate,” “estimate,” “plans,” “potential,” “projects,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend” or the negative of these words or other variations on these words or comparable terminology. The statements that contain these or similar words should be read carefully because these statements discuss our future expectations, contain projections of our future results of operations or of our financial position, or state other forward-looking information. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able accurately to predict or control. Further, we urge you to be cautious of the forward-looking statements which are contained in this registration statement because they involve risks, uncertainties and other factors affecting our operations, market growth, service, products and licenses. The factors listed in the sections captioned “Risk Factors” and “Description of Business,” as well as other cautionary language in this registration statement and events in the future may cause our actual results and achievements, whether expressed or implied, to differ materially from the expectations we describe in our forward-looking statements. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements in this registration statement are based on assumptions management believes are reasonable. However, due to the uncertainties associated with forward-looking statements, you should not place undue reliance on any forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in light of new information, future events, or otherwise. The occurrence of any of the events described as risk factors or other future events could have a material adverse effect on our business, results of operations and financial position. Since our common stock is considered a “penny stock,” we are ineligible to rely on the safe harbor for forward-looking statements provided in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”).

 

ii

 

 

PART I

 

ITEM 1. BUSINESS

Overview

Meso Numismatics, Inc. has a numismatics operation Meso Numismatics focuses on the Central American Caribbean region with a concentration of products surrounding Mesoamerica (Mexico to Panama).

Having locations in Costa Rica and Florida for the purposes of conveniently shipping products, the Company has the ability to export its inventory of coins, paper currency, bullion and medals from Costa Rica, to be sold in the U.S. and around the world. Likewise, the Company also imports such products back to Costa Rica, to be sold throughout the local markets.

The Company adheres to strict processes related to acquisition and sale of its products. It begins by selecting the best inventory, be it a rare coin from Latin America, or a banknote with an error from the United States. Inventory is carefully screened by management, is then sent to be graded by the proper grading authority. For all coins, medals and bullion, the Company’s inventory is sent to the Numismatic Guaranty Company for authentication and grading. For all banknotes, the Company utilizes the services of Paper Money Guaranty, LLC for authentication and grading, both Florida-based companies. Once graded, the inventory is sent to the Company’s Florida-based location prior to being sent to one of the Company’s many customers around the world.

The Company maintains an online store with eBay (www.mesocoins.com) and participates in live auctions with major companies such as Heritage Auctions, Stacks Bowers Auctions, Lyn Knight Auctions and Sedwick Coins for the sale of its coins, paper currency, bullion and medals. The Company also launched a new application technology available on the Google Play Store, as well as the Apple App Store. The Application is a banknote scanner which instantly identifies key characteristics of a banknote. This includes the catalog reference number of the note, the value, which entity it was issued by, the country of origin and the printer that printed the note. A picture of each note from our database of more than 61,000 banknotes from a combined 750 countries and regions will also be included with the information. For the numismatic industry in particular, this application eliminates the need for reference books, as well as the hours of time it takes to reference all the information about banknotes. With a simple snap of a picture, information is provided to the end-user almost instantaneously.

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. were acquired for $225,000 in cash, the issuance of 1,000,000 shares of preferred series AA stock and the issuance of 8,974 shares of preferred series DD stock and the Company acquired the assets and assumed the liabilities of Global Stem Cells Group, Inc. In addition, the company has allocated $8.2M for delivery to an escrow account being set up by LANs holdings.

There are currently 50,000 shares of Series AA Preferred Stock held by David Christensen, the Company’s CEO. As a result of the issuance of 1,000,000 shares of Series AA Preferred Stock to Benito Novas, a change of control has occurred. The amended certificate of designation for the Series AA Preferred Stock provides that all of the holders of the Series AA Preferred Stock together, voting separately as a class, shall have an aggregate vote equal to sixty-seven (67%) percent of the total vote on all matters submitted to the stockholders. The amended certificate of designation for the Series AA Preferred Stock further provides that a unanimous consent of the holders of Series AA Preferred Stock is necessary for, among other things, a change in control of the Company, requiring the votes of both Messrs. Christensen and Novas.


Global Stem Cell Group Operations

Global Stem Cells Group’s operations are dedicated to the regenerative medicine industry. We work with doctors and their staff to provide products, solutions, equipment, services, and training to help them be successful in the application of Stem Cell Therapies. Our team combines solutions from extensive clinical research with the manufacturing and commercialization of viable cell therapy and immune support related products that we believe will change the course of traditional medicine around the world forever. Our strategy allows us the ability to create immediate revenue streams through product sales, distribution, and clinical applications, driven by our extensive education platform. Our revenue comes directly from the training and the seminars, from the resale of these kits, products, and equipment, services, and from the reoccurring application of our process using the kits and solutions we provide.

Global Stem Cells Group is a leader in the Stem Cell and Regenerative Medicine fields, covering clinical research, patient applications, along with physician training through our state-of-the-art global network of companies. The Company’s mission is to enable physicians to make the benefits of stem cell medicine a reality for patients around the world. They have been educating doctors on the science and application of cell-based therapeutics for the past 10 years. Our professional trademarked association “ISCCA” INTERNATIONAL SOCIETY FOR STEM CELL APPLICATION is a global network of medical professionals that leverages these multinational relationships to build best practices and further our mission.

The Company envisions the ability to improve “health-span” through the discovery and developments of new cellular therapy products, and cutting-edge technology. 

Global Stem Cells Group, as almost everyone else in the world, was severely affected by the covid 19 pandemic. As we look to recover in 2022, we are integrating every aspect of the regenerative medicine industry. During 2022, we plan to add manufacturing and commercialization of viable cell therapy and immune support related products that we believe will change the course of traditional medicine around the world forever.

We believe this strategy will allow us the ability to increase our current revenues and create immediate revenue streams through product sales, distribution, and clinical applications, driven by our extensive education platform here are our main projects and revenue generators for 2022 and beyond.

Manufacturing Facilities

Permanent Treatment Center of Excellence and Physician Training in Istanbul, Turkey

Our Flagship Operation in “Istanbul Center” deploys well-targeted combinations of Exosomes, allogeneic human Mesenchymal cells, autologous bone marrow, and Adipose derived stem cells to treat a wide array of diseases and debilitating medical conditions.

Since 2018, we have completed over 7 industry seminars and training sessions in Istanbul. Through our joint venture/partnership with Biotrend Technology that was completed in February this year, our treatment plans are focused mostly on a systemic and/or whole-body approach. This new processing facility works with our local partner to provide the latest in Stem Cell Therapies to many of those in this region who have no access to these kinds of cutting-edge medical solutions. Our physician training services will help educate and generate demand for our solutions, services, and products.

Biotrend Technology’s CEO, Dr Salih Yildrim, is the acting ISSCA Director and this center operates under our brand Global Stem Cell Group name. Biotrend Technology is a fully staffed facility that operates also in other forms or regenerative health procedures that we do not participate in. This Joint Venture operates as a pure revenue sharing agreement whereas we do not own the lease, employees, or any other P&L expenses. They operate under the GSCG name, utilizing our products, services, training, and procedures. Dr. Salih Yildirim sits on our GSCG staff and is the Director of Overseas Operations. He functions as the International Relations Program Manager at Cleveland Clinic Turkey and is GSCG’s Managing Director over BioTrend Medical International. He is also engaged in consulting and identifying business development opportunities locally and regionally

Cell Therapy Product Manufacturing Facility in Cancun Mexico

The Cancun facility that is to begin operations in July of 2022 has been accredited both by the Mexican General Health Council and Cofepris (Mexican FDA). GSCG’s processing operation is in the well-known HELLIMEX, S.A. DE CV building, a high-rise office of leased suites that provide a multitude of other professional services.

We have assembled a highly qualified team of medical professionals and technicians that specialize in GSCG’s processes, solutions, and services. Our processing facilities in Cancun is top-notch, and include a laboratory to culture-expand cells, a process that yields better patient results, and a cryopreservation unit to keep these extracted samples stored safely until they are needed. This Laboratory/ Treatment Center will have the latest technologies available including NK Cell Therapy CAR T-cell for cancer treatment and produce full Lines of Msc and Exosomes. Our model is to work hand-in-hand with the patients’ physicians to provide a total quality experience in this innovative industry. Our revenue is derived from training doctors, providing services to each patient that these doctors bring to us for treatments, and the solutions and products they utilize.


Cell Therapy Product manufacturing facility in Dubai UAE

Similar to Cancun, we are in the process of building out a leased suite and equipping this facility in the well-known healthcare city DUBAI UAE. This facility will serve patients and physicians from the Middle East and Asia and will have the same capabilities as our Cancun counterpart.

Products

Solidifying and increasing our Presence worldwide www.cellgenic.com, we are completing our new catalog of Cell Therapy products manufactured completely in house as opposed of our previous re seller model. This new series of products include:

ITEM 1.BUSINESSCELLGENIC FLOW EXOSOMES This is the company’s flagship product, which stands ready to revolutionize the practice of regenerative medicine as we know it today. Exosomes are extracellular vesicles that float freely within the blood, very much like platelets. These are cell-derived non-particles that play a pivotal role in cell-to-cell communication that are involved in a wide range of physiological processes. Exosomes play an important role in the transfer of proteins and other bioactive molecules between cells and regulate gene expression in recipient cells, thus influencing various molecular pathways and have a wide range of therapeutic implications, including hair loss and pain management.

 

General Information

CELLGENIC MSC (Mesenchymal Stem Cell) This product excretes growth factors, cytokines, and proteins, which all play a key role in the regeneration of tissue. Their anti-inflammatory and immunomodulatory properties mean that it is difficult for them to be rejected by the body. Additionally, they increase blood flow to the vital organs that need it the most. MSC has immunomodulatory effects that have an effect on macrophages, neutrophils, NK cells, mast cells and dendritic cells in innate immunity with known anti-inflammatory benefits.

 

CELLGENIC LUMA (Lyophilized Exosomes) is derived from human umbilical cord mesenchymal stem cells and includes potent growth factors, peptides, coenzymes, minerals, amino acids, vitamins and UV radiation reducing agents for skin revitalization. Exosomes are extracellular vesicles, which is the medical term for tiny bubbles that are released from stem cells. Exosomes carry genetic information and proteins to cells throughout your body, and they create paths for communication between cells to help combat aging skin, environmental damage and loss of elasticity and tone.

VITANOVAS is a mobile IV infusion company that provides in-home treatments to patients in need of immune modulation to help fight infections, viruses, and diseases.

GCELL RESTORE GCell technology is a closed-system medical device that harnesses the natural and powerful restorative capabilities of adipose tissue. It is a cutting-edge tool that utilizes micrograft technology to harness the natural and powerful restorative capabilities of adipose tissues. This is a precise system that is able to process a stem cell sample from adipose tissue in less than half of the time that it would take a physician to do so through traditional means. This allows the patient to be more comfortable throughout the shorter procedure, as less anesthesia is also required than when operating under traditional means. The GCell is a minimally invasive, portable machine that allows physicians to fully unlock the potential of regenerative medicine as a component in their practice.

CELLGENIC SVF is an isolation kit system that has all the ingredients and consumables for the extraction of adipose-Derived Stem cells from fat. This complete kit it is currently being used in clinical procedures for lung disease, intra-articular injections for osteoarthritis of the knee and hip, cosmetic surgery, dermal injection, stem cell enriched fat transfer, wounds chronic ulcers among other chronic conditions.

CELLGENIC BONE MARROW Cell isolation protocols usually include density gradient centrifugation. With careful attention to detail the BMC system gently and precisely processes bone marrow aspirate for the purest concentration of these cells at the point of care. BMC is part of a developmental effort to provide an effective therapy that is low risk. It recovers a large percentage of platelet rich plasma and other total nucleated cells in a treatment sample. It is a closed system with strong performance outcomes and outstanding product stability.

CELLGENIC PRP (Platelet Rich Plasma) is used to encourage healing and reduce inflammation. As a concentrated source of autologous platelets, PRP contains several growth factors and other cytokines that can stimulate the healing of soft tissues.


Global Stem Cells Group’s future is looking bright as we look to bounce back from the pandemic effect on our operations. We are uniquely positioned to reach our revenue goals due to our global presence and network of independent businesses. We stand positioned to give the world access to the full spectrum of everything regenerative medicine can offer-- from being a source for products themselves, to sourcing equipment, to treating patients. We are able to do this because of our decade of experience in the field, and because of the world-class leadership and organization of the Group.

Leaders in stem cell medicine trust the high quality of Global Stem Cells Group’s world-class stem cell therapies, and physicians all over the world have come to value it as a trusted source for the newest ground-breaking research and development in the field of regenerative Medicine.

Patents and Proprietary Rights

We are committed to the protection of our intellectual property of proprietary products and process as well as trademarks and other methods described below.

Our business includes the development of proprietary cell therapy products as well as revenue generating physician and patient based regenerative medicine / cell therapy training services, cell collection and cell storage services, the sale of cell collection and treatment kits for humans and animals, and the operation of a cell therapy clinic.

On February 19, 2019, the U.S. Patent and Trademark Office (“USPTO”) filed US service trademark, 5,682,488 which claims exclusive us of “ISCCA” as INTERNATIONAL SOCIETY FOR STEM CELL APPLICATION to Stem Cell Training Inc a Florida Corporation.

On April 30, 2019, the U.S. Patent and Trademark Office (“USPTO”) granted US service trademark, 5,739,089 which claims exclusive us of “ISCCA” as INTERNATIONAL SOCIETY FOR STEM CELL APPLICATION to Stem Cell Training Inc a Florida Corporation.

We own proprietary protocols for the harvesting and isolation of Stem Cells Derived from the adipose tissue and Bone marrow.

We also own proprietary standard operating procedures for the manufacturing of allogeneic cellular therapy products derived from perinatal tissue.

None of these protocols or IP have been patented.. However, we rely on our own trade secrets and proprietary know-how to protect our technology and maintain our competitive position, since patent protection may not be available or applicable to our technology.

Competition

We face competitors in many different segments of our business models. We face intense competition from companies with much larger capital resources than us, and, as a result, we could struggle to attract customers and gain market share. Many of our existing or future competitors have greater financial resources and greater brand name recognition than we do and, as a result, may be better positioned to adapt to changes in the industry or the economy as a whole. We will strive to advance our products and technology in each of these sectors ahead of our competitors to gain market share. We also face intense competition in attracting and retaining qualified employees. Our ability to continue to compete effectively will depend upon our ability to attract new employees, retain and motivate our existing employees and to compensate employees competitively. We face significant competition in several aspects of our business, and such competition might increase, particularly in the market for regenerative therapies.


Our competitors may announce new products, services or enhancements that better address changing industry standards on regenerative care. Any such increased competition could cause pricing pressure, loss of business or decreased customer purchases, any of which could adversely affect our business and operating results.

We believe that we have competitive strengths and protection via our depth of services and products that we offer in the regenerative medicine field, including, but without limitation to, cell therapy products, isolation systems, physician training, laboratory build outs, medical tourism, and more.

While there are particular or specific competitors in any one of these areas, no one is 3265 Johnson Avenue, Suite 213, Riverdale, NY 10463.currently providing the full service one stop solution for such a complete range of offerings in this industry as we are.

Furthermore, we compete by becoming a resource, creating standards of practice, advancing the Stem Cell field in general, and by connecting associates and partners in many different aspects of the business.

Government Regulations

Although Stem Cell therapy is heavily regulated in the US by the Food and Drug administrator, Global Stem Cells group does not focus its business portfolio in US markets, to this end, we have suspended operations in the US. As such, we are not constrained by FDA regulatory jurisdictions. We now operate exclusively in countries where clear regulatory pathways to manufacturing and practice exist.

Marketing

Global Stem Cell Group uses its vast network of professionals in the regenerative and therapeutic industries to market and grow our business. Training seminars held on location in more than a dozen international locations have helped drive the attraction that is bringing new business to our group. The ISCCA is our professional association and is a global network of medical professionals that leverages these multinational relationships to build best practices and further our mission. Our phone number is (800) 889-9509. physician training services educate and generate continued reoccurring demand for our solutions, services, and products.

The information containedmore we educate physicians about our products and services, the more physician referrals we have received. It has been a difficult task to introduce new methodologies to physicians with more traditional views, but word of mouth has played a crucial role in or that can be accessed through,the growth of our company and our reputation in the industry. We believe our website is not partwill further expand our growth as new physicians have an easy to understand synopses of this registration statement.our how our products and services may assist with and benefit their patients. We believe that as our network of physicians widens we will experience significant growth from repeat business from existing clients and with new business from patient referrals.

 

HistoryNumismatics Operations

 

Meso Numismatics, Inc., has established a growing numismatics operation Meso Numismatics focuses on the Central American Caribbean region with a concentration of products surrounding Mesoamerica (Mexico to Panama).

Having locations in Costa Rica and Florida for the purposes of conveniently shipping products, the Company has the ability to export its inventory of coins, paper currency, bullion and medals from Costa Rica, to be sold in the U.S. and around the world. Likewise, the Company also imports such products back to Costa Rica, to be sold throughout the local markets.

The Company adheres to strict processes related to acquisition and sale of its products. It begins by selecting the best inventory, be it a rare coin from Latin America, or a banknote with an error from the United States. All inventory is carefully screened by management, then sent to be graded by the proper grading authority. For all coins, medals and bullion, the Company’s inventory is sent to the Numismatic Guaranty Company for authentication and grading. For all banknotes, the Company utilizes the services of Paper Money Guaranty, LLC for authentication and grading, both Florida-based companies. Once graded, the inventory is sent to the Company’s Florida-based location prior to being sent to one of the Company’s many customers around the world.


We maintain an online store with eBay (www.mesocoins.com) and participate in live auctions with major companies such as Heritage Auctions, Stacks Bowers Auctions, Lyn Knight Auctions and Sedwick Coins for the sale of its coins, paper currency, bullion and medals. The Company also launched a new application technology available on the Google Play Store, as well as the Apple App Store. The Application is a banknote scanner which instantly identifies key characteristics of a banknote. This includes the catalog reference number of the note, the value, which entity it was issued by, the country of origin and the printer that printed the note. A picture of each note from our database of more than 61,000 banknotes from a combined 750 countries and regions will also be included with the information. For the numismatic industry in particular, this application eliminates the need for reference books, as well as the hours of time it takes to reference all the information about banknotes. With a simple snap of a picture, information is provided to the end-user almost instantaneously.

Meso expects to continue to acquire rare inventory at market rates, from throughout the Meso Region (including Central America and the Caribbean). The inventory is then sent for authentication and grading, followed by said items being sold throughout Meso’s sales outlets. This includes an eBay store with up to, but not limited to, $50,000 in items for sale at any one time. For some of the Company’s rarer inventory, items are sent to major auction houses around the world for sale.

As of December 31, 2021, the Company is working on an inventory tracking system by serial number. Until such time the inventory costs cannot be properly confirmed, therefore any inventory balances are expensed during each reporting period.

License Agreements

Coins / Medals

The Company’s inventory is comprised of roughly 50% coins / medals and 50% paper money. The Company has a meticulous process for the acquisition and sales process for each coin item. The Company specializes in coins from the Meso region, but also acquires coins and medals from elsewhere around the world.

The process starts by visiting local shops and establishments throughout the Meso region to gather information about the coins that Company’s management is considering for acquisition. Once an item has been selected, it is paid for, then packaged and sent from Meso’s Costa Rica location to the Company’s Florida location. From there, the merchandise is once again examined, then sent to NGC (the Numismatic Guaranty Company) for grading and authentication. After approximately three weeks, the items are sent back to Meso’s Florida location for storage, safekeeping and subsequent distribution to its respective destinations.

Management carefully evaluates the grades assigned to each piece of merchandise and then decides which items will be sold through its eBay store, which items will be sold at live auction and which items will be traded for other items. Some pieces are also sent back to Costa Rica for trading, some are sold on eBay and some go to auction powerhouses around the globe.

Meso also acquires ungraded coins / medals from eBay, as well as at specialty shops throughout the Meso region and during certain U.S. shows. Those items are taken through the same aforementioned process.

Paper Money

As indicated above, paper money makes up approximately 50% of Meso’s inventory. The process of acquiring paper money almost mirrors that of coins / medals.

Meso’s management often visits local banks and central banks throughout the Meso region. Management selects banknotes within bundles, aiming to acquire rare and exceptional notes. This includes RADARS (the same serial number back-and-forth), errors and uncirculated rarities.

The note is then sent from Costa Rica to Florida for grading and authentication. For this service, the Company utilizes the Paper Money Guaranty, which is expected to examine the note in great detail, then offers a grade for its condition. The note is encased, then sent back to Meso’s Florida location for distribution to its final destination. Similarly to coins, management inspects each note, then decides whether it will be sold on eBay, at a specialty auction, or traded for other merchandise in the Meso Region.

Similar to coins, Meso also purchases ungraded notes on eBay or at other stores, has them graded through the same process, then decides where to sell it at the end.


Industry Overview

Numismatics itself is the study or collecting of currency, including but not limited to paper money, coins, medals, tokens and other objects. Numismatics is often associated with stamp collecting, philately, and is equally as popular when it comes to hobbies around the world.

The numismatic industry is a multi-billion-dollar market that continues to grow year-over-year. Estimates provided by PNG (The Professional Numismatists Guild) placed the U.S. rare coin market at between $3.4 and $4 billion in 2018.

At the forefront of the numismatic industry is NGC (The Numismatics Guaranty Company) and PMG (The Paper Money Guaranty). These two organizations, with locations around the world, are responsible for the majority of authenticating and grading various forms of currency. Since its inception in 1987, NGC has graded more than 42 million coins, with 61% representing the US, 16% representing Asia, $13% representing Europe, and, a combined 8% representing Africa, South America and Australia.

Growth Strategy

According to an article published in a May 2017 edition of The Economist, the global numismatic market has a value between $5 Billion and $8 Billion per year. It has been noted that out of all the global numismatic sales around the world, the United States is responsible for roughly 85% of the market, further depicted in the chart below. We believe we can capture market share in the U.S. market and we believe we are well positioned to take advantage of, As indicated by the following chart, the Company has the opportunity for growth within the U.S. and the Latin American region as well. The Company has the opportunity for growth within the Latin American region as well. The Company also expects to perform outreach and educate Latin America and Australia about the value of numismatics. 

Many Latin American countries postal services are difficult to navigate due to political unrest and corruption. We believe we have an advantage by having boots on the ground in Costa Rica, and associates throughout all of Latin America, which affords us the opportunity to procure almost any type of item and safely have it graded and then sold.

Successful importation and exportation of merchandise between Central America and the United States is crucial for the Company. Being able to acquire inventory at reduced costs, then selling the items for healthy profits, once graded, continues to be the key to growth.

The Company anticipates organic growth as well growth through acquisitions, as the right opportunities present themselves. The Company has and will continue to reinvest capital in new inventory, further supporting its long-term goal of becoming a recognized, global numismatic brand. Possible future acquisitions include websites / social media pages, in addition to physical numismatic businesses that could become available. These acquisitions could be solely of a company’s inventory, or their physical location and assets as well.

Competitive Strengths

Technology

To our knowledge, Meso Numismatics has the only banknote scanner on the market. The technology, mostly utilized by numismatists, quickly assesses all the information about a banknote and almost instantly displays the information, along with a replica banknote from the database.

The Meso App, available on the Google Play Store and the Apple App Store, is expected to eventually be transitioned into a platform to buy, sell, and trade banknotes. Monetization is expected come from advertisers displaying banner ads, as well as transactional fees from the sales of items. The Company also has the ability, although it does not do so yet, to charge the user for general use of the App.


Location

Meso Numismatics has office locations in San Jose, Costa Rica and Boca Raton, Florida. Having dual locations, especially in these two areas in particular, is extremely advantageous to the Company.

The Costa Rican location of Meso is pivotal for the Company. Management in this location is able to obtain some items, below-market prices due to relationships made within the industry. While a US collector must pay for an item (usually with a premium) plus shipping and handling, having management on the ground allows the Company to acquire items without the extra costs. Management also has relationships with dealers throughout the region and trades / exchanges merchandise for better items. The majority of the Company’s inventory originates in Costa Rica, then is shipped to Florida for grading and authentication.

The Boca Raton location of Meso is almost as pivotal as the Costa Rican location, as the leading grader and authenticator of merchandise (PMG and NGC) also has locations in Florida. Merchandise is sent from Costa Rica to Boca Raton. Once inventoried, merchandise is sent to PMG or NGC for grading and authenticating. Once complete, the inventory is returned to the Boca Raton location where it is safely housed and distributed to its final location. Having this location allows the Company to ship items globally at significantly lower rates than shipping from Costa Rica.

Strategic Partnerships

Meso has strategically partnered with Softon Digital (“Softon”) of Costa Rica, in addition to the above relationships with PMG and NGC. Softon assisted in the development and creation of the Meso App and it is expected that Softon will continue to help the Company evolve the technological portion of the business, with their team of programmers and engineers.

Competition

In the coins and other collectibles business, we will compete with a number of comparably sized and smaller firms, as well as a number of larger firms throughout the United States. Our primary competitors are American Numismatic Rarities, a comparably-sized coin auctioneer. Many of our competitors have the ability to attract customers as a result of their reputation and the quality collectibles they obtain through their industry connections. Additionally, other reputable companies that sell rare coins and other collectibles may decide to enter our markets to compete with us. These companies have greater name recognition and have greater financial and marketing resources than we do. If these auction companies are successful in entering the specialized market for premium collectibles in which we participate or if dealers and sellers participate less in our auctions, we may attract fewer buyers and our revenue could decrease.

Employees

As of December 31, 2021, the Company had 1 full-time employee.

Corporate History

The Company was originally founded in 1999 as Spectrum Ventures LLC, a private company, registered in Tacoma, WA, for the purpose of developing, marketing and selling voice over IP products and services. In 2002, the Company changed its name to Nxtech Wireless Cable Systems, Inc. In August 2007, the Company changed its name to Oriens Travel & Hotel Management Corp. In November 2014, the Company changed its name to Pure Hospitality Solutions, Inc. During 2014, the Board of Directors of the Company deemed it in the best interests of the Company and its shareholders to switch directions and become involved in the business of numismatics, specifically the collection and ultimately the sale of coins, paper currency, bullion and medals. On November 21, 2016 the Company (formerly known as Pure Hospitality Solutions, Inc. a Nevada corporation) entered into an agreement with Meso Numismatics, Corp., a Florida corporation. The respective Boards of Directors of the Pure Hospitality Solutions, Inc. and Meso Numismatics, Corp., at that time, determined that it was advisable and to the advantage of and the best interests of Pure Hospitality Solutions, Inc. and its shareholders and Meso Numismatics, Corp. and its stockholders that Meso Numismatics, Corp. merge with and into Pure Hospitality Solutions, Inc. (the “Merger”). It was at that time, Mr. Melvin Pereira, our currentprior Chief Executive Officer, who controlled both, Pure Hospitality Solutions, Inc. and Meso Numismatics, Corp. that the Company acquired common control of Meso Numismatics, Corp. and the assets there held. At the completion of the Merger, Meso Numismatics Corp. ceased to exist. In September of 2018 the Company effected a name change and changed its name from Pure Hospitality Solutions, Inc. to Meso Numismatics, Inc.

Led by the Company’s Chief Executive Officer, an avid numismatist, the goal of the Company is to generate continuous, scalable and growing revenues from the sale of its coins, paper currency, bullion and medals, while also teaching those interested in learning about numismatics. The Company intends to produce numismatic whitepapers in addition to holding seminars throughout the region. Within the U.S. operations, the Company regularly visits coin shows and other dealers throughout the country, providing information about the Meso region. The Company regularly acquires new customers through this approach, by bringing inventory that certain dealers do not have regular access to. The Company regularly engages in transactions with other numismatic dealers and brings U.S. numismatic goods back to the Meso region for sale, while simultaneously making sales in the U.S. This ‘Ox Cart Phenomenon’, which is essentially the efficient use of a transport and distribution vehicle, helps the Company keep its first-mover, on-the-ground advantage within the industry. Items are sent from Costa Rica to the U.S. and merchandise is simultaneously sent from the U.S. to Costa Rica, creating multiple sales streams.

Recent Developments

Name Change and Symbol Change

Effective September 26, 2018 the Company changed its name from Pure Hospitality Solutions, Inc. to Meso Numismatics, Inc. All references to the “Company” or “Pure Hospitality Solutions” or “PNOW” in this Registration Statement on Form 10 refer to Meso Numismatics, Inc., unless stated otherwise. Further, in connection with changing its name, the Company changed its trading symbol to MSSV.

A 1:1000 reverse stock split of the Common Stock (the “Reverse Stock Split”) was effected on September 26, 2018 for shareholders of record as of September 26, 2018. The number of authorized shares remains unchanged. All share and per share information in this Registration Statement on Form 10 have been retroactively adjusted for all periods presented, unless otherwise indicated, to give effect to the Reverse Stock Split, including the financial statements and notes thereto.

Overview

Meso Numismatics, Inc., has established a growing numismatics operation Meso Numismatics focuses on the Central American Caribbean region with a concentration of products surrounding Mesoamerica (Mexico to Panama).

Having locations in Costa Rica and Florida for the purposes of conveniently shipping products, the Company has the ability to export its inventory of coins, paper currency, bullion and medals from Costa Rica, to be sold in the U.S. and around the world. Likewise, the Company also imports such products back to Costa Rica, to be sold throughout the local markets.


The Company adheres to strict processes related to acquisition and sale of its products. It begins by selecting the best inventory, be it a rare coin from Latin America, or a banknote with an error from the United States. All inventory is carefully screened by management, then sent to be graded by the proper grading authority. For all coins, medals and bullion, the Company’s inventory is sent to the Numismatic Guaranty Company for authentication and grading. For all banknotes, the Company utilizes the services of Paper Money Guaranty, LLC for authentication and grading, both Florida-based companies. Once graded, the inventory is sent to the Company’s Florida-based location prior to being sent to one of the Company’s many customers around the world.

We maintain an online store with eBay (www.mesocoins.com) and participate in live auctions with major companies such as Heritage Auctions, Stacks Bowers Auctions, Lyn Knight Auctions and Sedwick Coins for the sale of its coins, paper currency, bullion and medals. The Company also launched a new application technology available on the Google Play Store, as well as the Apple App Store. The Application is a banknote scanner which instantly identifies key characteristics of a banknote. This includes the catalog reference number of the note, the value, which entity it was issued by, the country of origin and the printer that printed the note. A picture of each note from our database of more than 61,000 banknotes from a combined 750 countries and regions will also be included with the information. For the numismatic industry in particular, this application eliminates the need for reference books, as well as the hours of time it takes to reference all the information about banknotes. With a simple snap of a picture, information is provided to the end-user almost instantaneously.

Meso expects to continue to acquire rare inventory at market rates, from throughout the Meso Region (including Central America and the Caribbean). The inventory is then sent for authentication and grading, followed by said items being sold throughout Meso’s sales outlets. This includes an eBay store with up to, but not limited to, $50,000 in items for sale at any one time. For some of the Company’s rarer inventory, items are sent to major auction houses around the world for sale.

As of December 31, 2018, the Company is working on an inventory tracking system by serial number. Until such time the inventory costs can not be properly confirmed, therefore any inventory balances are expensed during each reporting period.

License Agreements

Coins / Medals

The Company’s inventory is comprised of roughly 50% coins / medals and 50% paper money. The Company has a meticulous process for the acquisition and sales process for each coin item. The Company specializes in coins from the Meso region, but also acquires coins and medals from elsewhere around the world.

The process starts by visiting local shops and establishments throughout the Meso region to gather information about the coins that Company’s management is considering for acquisition. Once an item has been selected, it is paid for, then packaged and sent from Meso’s Costa Rica location to the Company’s Florida location. From there, the merchandise is once again examined, then sent to NGC (the Numismatic Guaranty Company) for grading and authentication. After approximately three weeks, the items are sent back to Meso’s Florida location for storage, safekeeping and subsequent distribution to its respective destinations.

Management carefully evaluates the grades assigned to each piece of merchandise and then decides which items will be sold through its eBay store, which items will be sold at live auction and which items will be traded for other items. Some pieces are also sent back to Costa Rica for trading, some are sold on eBay and some go to auction powerhouses around the globe.

Meso also acquires ungraded coins / medals from eBay, as well as at specialty shops throughout the Meso region and during certain U.S. shows. Those items are taken through the same aforementioned process.

Paper Money

As indicated above, paper money makes up approximately 50% of Meso’s inventory. The process of acquiring paper money almost mirrors that of coins / medals.

Meso’s management often visits local banks and central banks throughout the Meso region. Management selects banknotes within bundles, aiming to acquire rare and exceptional notes. This includes RADARS (the same serial number back-and-forth), errors and uncirculated rarities.


The note is then sent from Costa Rica to Florida for grading and authentication. For this service, the Company utilizes the Paper Money Guaranty, which is expected to examine the note in great detail, then offers a grade for its condition. The note is encased, then sent back to Meso’s Florida location for distribution to its final destination. Similarly to coins, management inspects each note, then decides whether it will be sold on eBay, at a specialty auction, or traded for other merchandise in the Meso Region.

Similar to coins, Meso also purchases ungraded notes on eBay or at other stores, has them graded through the same process, then decides where to sell it at the end.

Warranties

Industry Overview

Numismatics itself is the study or collecting of currency, including but not limited to paper money, coins, medals, tokens and other objects. Numismatics is often associated with stamp collecting, philately, and is equally as popular when it comes to hobbies around the world.

The numismatic industry is a multi-billion-dollar market that continues to grow year-over-year. Estimates provided by PNG (The Professional Numismatists Guild) placed the U.S. rare coin market at between $3.4 and $4 billion in 2018.

At the forefront of the numismatic industry is NGC (The Numismatics Guaranty Company) and PMG (The Paper Money Guaranty). These two organizations, with locations around the world, are responsible for the majority of authenticating and grading various forms of currency. Since its inception in 1987, NGC has graded more than 42 million coins, with 61% representing the US, 16% representing Asia, $13% representing Europe, and, a combined 8% representing Africa, South America and Australia.

Growth Strategy

According to an article published in a May 2017 edition of The Economist, the global numismatic market has a value between $5 Billion and $8 Billion per year. It has been noted that out of all the global numismatic sales around the world, the United States is responsible for roughly 85% of the market, further depicted in the chart below. We believe we can capture market share in the U.S. market and we believe we are well positioned to take advantage of, As indicated by the following chart, the Company has the opportunity for growth within the U.S. and the Latin American region as well. The Company has the opportunity for growth within the Latin American region as well. The Company also expects to perform outreach and educate Latin America and Australia about the value of numismatics.


Many Latin American countries postal services are difficult to navigate due to political unrest and corruption. We believe we have an advantage by having boots on the ground in Costa Rica, and associates throughout all of Latin America, which affords us the opportunity to procure almost any type of item and safely have it graded and then sold.

Successful importation and exportation of merchandise between Central America and the United States is crucial for the Company. Being able to acquire inventory at reduced costs, then selling the items for healthy profits, once graded, continues to be the key to growth.

The Company anticipates organic growth as well growth through acquisitions, as the right opportunities present themselves. The Company has and will continue to reinvest capital in new inventory, further supporting its long-term goal of becoming a recognized, global numismatic brand. Possible future acquisitions include websites / social media pages, in addition to physical numismatic businesses that could become available. These acquisitions could be solely of a company’s inventory, or their physical location and assets as well.

Further, the Company anticipates monetization of its mobile application in 2019. This could be through the use of third-party advertisements, or charging for the application to future users. Management is still working to define the best course of action for maximum monetization of its mobile application.

Competitive Strengths

Technology

To our knowledge, Meso Numismatics has the only banknote scanner on the market. The technology, mostly utilized by numismatists, quickly assesses all the information about a banknote and almost instantly displays the information, along with a replica banknote from the database.

The Meso App, available on the Google Play Store and the Apple App Store, is expected to eventually be transitioned into a platform to buy, sell, and trade banknotes. Monetization is expected come from advertisers displaying banner ads, as well as transactional fees from the sales of items. The Company also has the ability, although it does not do so yet, to charge the user for general use of the App.

Location

Meso Numismatics has office locations in San Jose, Costa Rica and Boca Raton, Florida. Having dual locations, especially in these two areas in particular, is extremely advantageous to the Company.

The Costa Rican location of Meso is pivotal for the Company. Management in this location is able to obtain some items, below-market prices due to relationships made within the industry. While a US collector must pay for an item (usually with a premium) plus shipping and handling, having management on the ground allows the Company to acquire items without the extra costs. Management also has relationships with dealers throughout the region and trades / exchanges merchandise for better items. The majority of the Company’s inventory originates in Costa Rica, then is shipped to Florida for grading and authentication.

The Boca Raton location of Meso is almost as pivotal as the Costa Rican location, as the leading grader and authenticator of merchandise (PMG and NGC) also has locations in Florida. Merchandise is sent from Costa Rica to Boca Raton. Once inventoried, merchandise is sent to PMG or NGC for grading and authenticating. Once complete, the inventory is returned to the Boca Raton location where it is safely housed and distributed to its final location. Having this location allows the Company to ship items globally at significantly lower rates than shipping from Costa Rica.

Management

The Management of Meso Numismatics has over 40 years of experience in numismatics. Due to Mr. Pereira’s knowledge of the industry, NGC and PMG have allowed Meso Numismatics to become an authorized dealer of their companies. In addition, under the direction of Mr. Pereira, Meso Numismatics won the coveted 2018 PMG Registry Award for the Best Presented Set, displaying the Company’s nearly flawless collection of Costa Rican Banknotes from 1950 to present. Mr. Pereira continues to be a resource for U.S. collectors who are seeking Latin American inventory.

Prior to his career in numismatics, Mr. Pereira owned a technology consulting company, after attending a social media program from MIT. Mr. Pereira was responsible for the infrastructure, the IT, and internet engineering for several of his client companies.

 


Management also has close relationships with the grading agencies, as a Registered Dealer with PMG and NGC. The Company is able to submit inventory on the behalf of others; and receives discounts as a Registered Dealer.

Strategic Partnerships

Meso has strategically partnered with Softon Digital (“Softon”) of Costa Rica, in addition to the above relationships with PMG and NGC. Softon assisted in the development and creation of the Meso App and it is expected that Softon will continue to help the Company evolve the technological portion of the business, with their team of programmers and engineers.

Competition

In the coins and other collectibles business, we will compete with a number of comparably sized and smaller firms, as well as a number of larger firms throughout the United States. Our primary competitors are American Numismatic Rarities, a comparably-sized coin auctioneer. Many of our competitors have the ability to attract customers as a result of their reputation and the quality collectibles they obtain through their industry connections. Additionally, other reputable companies that sell rare coins and other collectibles may decide to enter our markets to compete with us. These companies have greater name recognition and have greater financial and marketing resources than we do. If these auction companies are successful in entering the specialized market for premium collectibles in which we participate or if dealers and sellers participate less in our auctions, we may attract fewer buyers and our revenue could decrease.

Employees

As of April 16, 2019, the Company had 1full-time employee our Chief Executive Officer, Melvin Pereira.

Additional Information

 

The public may read and copy any materials the Company files with the SEC in the SEC’s Public Reference Section, Room 1580, 100 F Street N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Section by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, which can be found at http://www.sec.gov.

 

Item 1A.Risk Factors.


 

Item 1A. Risk Factors.

You should carefully consider the risks described below together with all of the other information included in this registration statement before making an investment decision with regard to our securities. The statements contained in or incorporated herein that are not historic facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. If any of the following risks actually occurs, our business, financial condition or results of operations could be harmed. In that case, you may lose all or part of your investment. In addition to other information in this registration statement and in other filings we make with the Securities and Exchange Commission, the following risk factors should be carefully considered in evaluating our business as they may have a significant impact on our business, operating results and financial condition. If any of the following risks actually occurs, our business, financial condition, results of operations and future prospects could be materially and adversely affected. Because of the following factors, as well as other variables affecting our operating results, past financial performance should not be considered as a reliable indicator of future performance and investors should not use historical trends to anticipate results or trends in future periods.

 


Risks Related to Our Business

 

We have a limited operating history.

 

The Company was incorporated under the laws of the State of Nevada in 2001 and has engaged in limited operations to date. Accordingly, the Company has only a limited operating history with which you can evaluate its business and prospects. An investor in the Company must consider its business and prospects in light of the risks, uncertainties and difficulties frequently encountered by early-stage companies, including limited capital, delays in product development, possible marketing and sales obstacles and delays, inability to gain customer and merchant acceptance or inability to achieve significant distribution of our products and services to customers. The Company cannot be certain that it will successfully address these risks. Its failure to address any of these risks could have a material adverse effect on its business.

 

THE REPORT OF OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM CONTAINS AN EXPLANATORY PARAGRAPH THAT EXPRESSES SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

 

The report of our independent registered public accounting firm with respect to our financial statements as of December 31, 20182021 and for the year then ended indicates that our financial statements have been prepared assuming that we will continue as a going concern. The report states that, he Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Our plans in regard to these matters are described in Note 2 to our audited financial statements as of December 31, 20182021 and 20172020 and for the years then ended.

 

WE COMPETE WITH A NUMBER OF NUMISMATIC COMPANIES IN OUR SPACE AND FACE INCREASED COMPETITION FROM SUCH COMPANIES.

 

In the coins and other collectibles business, we will compete with a number of comparably sized and smaller firms, as well as a number of larger firms throughout the United States. Our primary competitors are American Numismatic Rarities, a comparably-sized coin auctioneer. Many of our competitors have the ability to attract customers as a result of their reputation and the quality collectibles they obtain through their industry connections. Additionally, other reputable companies that sell rare coins and other collectibles may decide to enter our markets to compete with us. These companies have greater name recognition and have greater financial and marketing resources than we do. If these auction companies are successful in entering the specialized market for premium collectibles in which we participate or if dealers and sellers participate less in our auctions, we may attract fewer buyers and our revenue could decrease.

 


In our cell therapy operations, we face competitors in many different segments of our business models. We face intense competition from companies with much larger capital resources than us, and, as a result, we could struggle to attract customers and gain market share. Many of our existing or future competitors have greater financial resources and greater brand name recognition than we do and, as a result, may be better positioned to adapt to changes in the industry or the economy as a whole. We will strive to advance our products and technology in each of these sectors ahead of our competitors to gain market share. We also face intense competition in attracting and retaining qualified employees. Our ability to continue to compete effectively will depend upon our ability to attract new employees, retain and motivate our existing employees and to compensate employees competitively. We face significant competition in several aspects of our business, and such competition might increase, particularly in the market for regenerative therapies.

Our competitors may announce new products, services or enhancements that better address changing industry standards on regenerative care. Any such increased competition could cause pricing pressure, loss of business or decreased customer purchases, any of which could adversely affect our business and operating results.

We believe that we have competitive strengths and protection via our depth of services and products that we offer in the regenerative medicine field, including, but without limitation to, cell therapy products, isolation systems, physician training, laboratory build outs, medical tourism, and more.

While there are particular or specific competitors in any one of these areas, no one is currently providing the full service one stop solution for such a complete range of offerings in this industry as we are.

Furthermore, we compete by becoming a resource, creating standards of practice, advancing the Stem Cell field in general, and by connecting associates and partners in many different aspects of the business.

MARKET PRICE FLUCTUATION OF THE COIN MARKET MAY AFFECT INTEREST IN OUR PRODUCTS, SERVICES AND PROFITABILITY

 

The profitability of our operations is directly related to the market price of metals and the numismatic coin market. The market prices of metals and the numismatic coin market fluctuate significantly and are affected by a number of factors beyond our control, including, but not limited to, the rate of inflation, the exchange rate of the dollar to other currencies, interest rates, global economic and political conditions, and the collector’s market. Price fluctuations in the metals and numismatic market from the conception of a potential target to the conclusion of operations can significantly affect profitability. We may begin one or more operations at a time when the price of metals or numismatic coins make operations economically feasible and subsequently incur losses due to market decreases. Adverse fluctuations in the metals or numismatic market may force us to curtail or cease our business operations.

 

CHANGES IN APPLE APP STORE AND GOOGLE PLAY STORE POLICIES COULD RESULT IN OUR MOBILE APPLICATIONS BEING DE-LISTED. IN ADDITION, OUR THIRD PARTY SERVICE PROVIDERS MAY DECLINE TO PROVIDE SERVICES DUE TO THEIR POLICIES, OR CEASE TO PROVIDE SERVICES PREVIOUSLY PROVIDED TO US DUE TO A CHANGE OF POLICY. IN ADDITION TO CHALLENGES WE FACE WITH RESPECT TO COMPLIANCE WITH THE APPLE APP STORE AND GOOGLE PLAY STORE GUIDELINES.

 

The company’s application was developed for the numismatic industry as, what we believe is the world’s first banknote recognition scanner. Any user with a smartphone can simply snap and submit a picture of any banknote and they are quickly greeted with information about the note, such as its reference number, the value of the note, which entity it was issued by, the country of origin, and the exact printing company which printed the note. If this application is removed from the apple app store or the google play store, the company would lose the technology side of the business. The company would still be a numismatic company, but would not have any technology associated with the company.

 


Failure to attract clients could greatly harm our ability to generate revenue.

 

Our ability to generate revenue is dependent on the continued growth of our sales and technology application. If we are unable to continue to grow our network or bring new clients to our network, our ability to generate revenue would be greatly compromised. There is no guarantee that individuals and businesses will want to join our platform, or that we will be able to generate revenue from the existing clients of the Company.

 

The value of our inventory is subject to volatility in the price of gold and any other precious metal The Company has two types of inventory -- paper money and coin currency. The majority of coins are made of either silver, gold, nickel, platinum, etc. Should the price of these metals decline, we would experience a decline in the value of our inventory.

 

Our operations will be significantly affected by changes in the market price of gold, silver, other precious metals and the valuation of currencies. The prices of these metals and currencies fluctuate widely and are affected by numerous factors, all of which are beyond our control. Some of these factors include the sale or purchase of gold by central banks and financial institutions; interest rates; currency exchange rates; inflation or deflation; fluctuation in the value of the United States dollar and other currencies; speculation; global and regional supply and demand, including investment, industrial and jewelry demand; and the political and economic conditions of major gold or other mineral producing countries throughout the world, such as Russia and South Africa. The price of gold or other minerals have fluctuated widely in recent years, and a decline in the price of gold could cause a significant decrease in the value of our properties, limit our ability to raise money, and render continued exploration and development of our properties impracticable. If that happens, then we could lose our rights to our properties and be compelled to sell some or all of these rights. Additionally, the future development of our properties beyond the exploration stage is heavily dependent upon the level of gold prices remaining sufficiently high to make the development of our properties economically viable. You may lose your investment if the price of gold decreases. The greater the decrease in the price of gold, the more likely it is to have a material adverse impact on our business.

 

WE ARE REQUIRED TO COMPLY WITH A WIDE VARIETY OF LAWS AND REGULATIONS, AND ARE SUBJECT TO REGULATION BY VARIOUS FEDERAL, STATE AND FOREIGN AGENCIES.

 

We are subject to various local, state, federal, foreign and transnational laws and regulations, particularly those relating to the importation and exportation of coins and paper money, tariffs and trade barriers, taxation, exchange controls, current good manufacturing practices, health and safety and our business practices in the U.S. and abroad, such as anti-corruption and anti-competition laws, and, in the future, any changes to such laws and regulations could adversely affect us. Any noncompliance by us with applicable laws and regulations or the failure to maintain, renew or obtain necessary permits and licenses could result in criminal, civil and administrative penalties and could have an adverse effect on our results of operations.

 

WE ARE SUBJECT TO A VARIETY OF LITIGATION THAT COULD ADVERSELY AFFECT OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

 

The improper handling of coins and paper money or accidents involving the transportation of such materials could subject us to liability. In addition, our reputation could be adversely affected by negative publicity surrounding such events regardless of whether or not claims against us are successful. Defending against such claims may divert our management’s attention, may be expensive, and may require that we pay damage awards or settlements or become subject to equitable remedies that could adversely affect our financial condition and results of operations. A successful claim brought against us in excess of available insurance or not covered by insurance or indemnification agreements, or any claim that results in significant adverse publicity against us, could have a material adverse effect on our business and our reputation. Furthermore, the outcome of litigation is inherently uncertain.

 


Risks and Uncertainties Associated with Our Expansion Into and Our Operations Outside of the United States May Adversely Affect Our Results of Operations, Cash Flow, Liquidity or Financial Condition

 

These challenges include: (1) compliance with complex and changing laws, regulations and policies of governments that may impact our operations, such as foreign ownership restrictions, import and export controls, tariffs, and trade restrictions; (2) compliance with U.S. and foreign laws that affect the activities of companies abroad, such as anti-corruption laws, competition laws, currency regulations, and laws affecting dealings with certain nations; (3) the difficulties involved in managing an organization doing business in many different countries; (4) rapid changes in government policy, acts of terrorism, or the threat of international boycotts or U.S. anti-boycott legislation; and (5) currency exchange rate fluctuations.

 

Fluctuations in Foreign Currency Exchange Rates May Adversely Affect Our Results of Operations, Cash Flow, Liquidity or Financial Condition.

 

As a numismatic company, the value of the inventory is not only tied to the price of a metal, but the actual numismatic piece. Since the company has banknotes and coins from around the world, if the price of a foreign currency declines, the value of the inventory may decline as well. In addition, since the Company is able to procure items at discounted rates from the Meso region, if the exchange rates change, the company may be unable to acquire inventory at such discounted costs.

 


We may become subject to legal proceedings that could have a material adverse impact on our financial position and results of operations.

 

From time to time and in the ordinary course of our business, we may become involved in various legal proceedings. All such legal proceedings are inherently unpredictable and, regardless of the merits of the claims, litigation may be expensive, time-consuming and disruptive to our operations and distracting to management. If resolved against us, such legal proceedings could result in excessive verdicts, injunctive relief or other equitable relief that may affect how we operate our business. Similarly, if we settle such legal proceedings, it may affect how we operate our business. Future court decisions, alternative dispute resolution awards, business expansion or legislative activity may increase our exposure to litigation and regulatory investigations. In some cases, substantial noneconomic remedies or punitive damages may be sought. Although we maintain liability insurance coverage, there can be no assurance that such coverage will cover any particular verdict, judgment or settlement that may be entered against us, that such coverage will prove to be adequate or that such coverage will continue to remain available on acceptable terms, if at all. If we incur liability that exceeds our insurance coverage or that is not within the scope of the coverage in legal proceedings brought against us, it could have an adverse effect on our business, financial condition and results of operations.

 

Certification, licensing or regulatory requirements;

Unexpected changes in regulatory requirements;

Changes to or reduced protection of intellectual property rights in some countries.countries

 


We intend to continue strategic business acquisitions and other combinations, which are subject to inherent risks.

 

In order to expand our solutions, services, and grow our market and client base, we may continue to seek and complete strategic business acquisitions and other combinations that we believe are complementary to our business. Acquisitions have inherent risks which may have a material adverse effect on our business, financial condition, operating results or prospects, including, but not limited to: 1) failure to successfully integrate the business and financial operations, services, intellectual property, solutions or personnel of an acquired business and to maintain uniform standard controls, policies and procedures; 2) diversion of management’s attention from other business concerns; 3) entry into markets in which we have little or no direct prior experience; 4) failure to achieve projected synergies and performance targets; 5) loss of clients or key personnel; 6) incurrence of debt or assumption of known and unknown liabilities; 7) write-off of software development costs, goodwill, client lists and amortization of expenses related to intangible assets; 8) dilutive issuances of equity securities; and, 9) accounting deficiencies that could arise in connection with, or as a result of, the acquisition of an acquired company, including issues related to internal control over financial reporting and the time and cost associated with remedying such deficiencies. If we fail to successfully integrate acquired businesses or fail to implement our business strategies with respect to these acquisitions, we may not be able to achieve projected results or support the amount of consideration paid for such acquired businesses.

 

Volatility and disruption resulting from global economic conditions could negatively affect our business, results of operations and financial condition.

 

Although certain indices and economic data have shown signs of stabilization in the United States and certain global markets, there can be no assurance that these improvements will be broad-based or sustainable, nor is it clear how, if at all, they will affect the markets relevant to us. As a result, our operating results may be impacted by the health of the global economy. Volatility and disruption in global capital and credit markets may lead to slowdowns or declines in client spending which could adversely affect our business and financial performance. Our business and financial performance, including new business bookings and collection of our accounts receivable, may be adversely affected by current and future economic conditions (including a reduction in the availability of credit, higher energy costs, rising interest rates, financial market volatility and lower than expected economic growth) that cause a slowdown or decline in client spending. Reduced purchases by our clients or changes in payment terms could adversely affect our revenue growth and cause a decrease in our cash flow from operations. Bankruptcies or similar events affecting clients may cause us to incur bad debt expense at levels higher than historically experienced. Further, volatility and disruption in global financial markets may also limit our ability to access the capital markets at a time when we would like, or need, to raise capital, which could have an impact on our ability to react to changing economic and business conditions. Accordingly, if global financial and economic volatility continues or worsens, our business, results of operations and financial condition could be materially and adversely affected. 

 


If we are unable to manage our growth in the new markets in which we offer solutions or services, our business and financial results could suffer.

 

Our future financial results will depend in part on our ability to profitably manage our business in the new markets that we enter. Difficulties in managing future growth in new markets could have a significant negative impact on our business, financial condition and results of operations.

 


The Operations and Commercialization of Stem Cell Therapies is an exciting, new, and integral part of the emerging Regenerative Medicine market, BUT The field remains in its infancy.

As with all new technologies, products, practices and solutions, there are inherit risks related to our industry and business.

The field of stem cell therapy is relatively new, and not yet widely adopted by the medical community, and because of that infancy, it may have an adverse effect on our ability to reach potential physicians that are skeptical of the benefits or have questions about the risks, and thus, we may run into resistance in the marketing of our products and services. Stem cell therapies may be susceptible to various risks, including side effects, unintended immune system responses, inadequate therapeutic efficacy, and lack of acceptance by physicians, hospital, and the patients themselves.

Our experience and others have shown that physicians are historically slow to adopt new treatment methods based on new technologies, like ours, when existing and trusted methods continue to be supported by established practitioners. Overcoming these obstacles often requires significant marketing expenditures, product performance, cost cutting and/or decreased pricing. We believe the skepticism to be a significant barrier as we attempt to gain market penetration with our products and services. Failure to achieve market acceptance of our products and services would have a material adverse effect on our financial condition.

Additionally, part of our success will depend on continuing to establish and maintain effective strategic partnerships and collaborations with our international partners, which may impose challenges, restrictions, and or financial impacts to our business.

As we apply our business strategy of establishing and maintaining strategic relationships, we believe this will allow us to expand and complement our products, training, support and commercialization capabilities. This we believe will allow us to reduce costs with greater economies of scale, and leverage a greater source of market intelligence, with crucial meta data gathered of Stem Cell Therapies applied to a full spectrum across global applications. Notwithstanding, there can be no assurances that we will favorably maintain all current or successfully add new relationships to successfully advance our business.

We rely heavily on our management, and the loss of their services could adversely affect our business.

 

Our success is highly dependent upon the continued services of our Chief Executive Officer, Melvin Pereira.David Christensen. The loss of Mr. Pereira’sChristensen’s services would have a material adverse effect on the Company and its business operations.

 


WE MAY NOT BE ABLE TO IMPLEMENT OUR GROWTH AND MARKETING STRATEGY SUCCESSFULLY OR ON A TIMELY BASIS OR AT ALL.

 

Our future success depends, in large part, on our ability to implement our growth strategy of expanding distribution and sales of our product portfolio, attracting new consumers and introducing new product lines and product extensions.

 

Our sales and operating results will be adversely affected if we fail to implement our growth strategy or if we invest resources in a growth strategy that ultimately proves unsuccessful. 

  

Risks Related to Our Common Stock

  

If our ability to register our Common Stock is limited, your ability to sell such shares may be subject to substantial restrictions, and you may be required to hold such shares for a period of time prior to sale, in which case you could suffer a substantial loss on such shares.

 

If our ability to register the resale of shares of our Common Stock is limited, you may not be able to sell your Common shares. There will be substantial restrictions on your ability to transfer any shares which are not registered for resale, and you may be required to hold the shares for some period of time.

 

OUR STOCK PRICE MAY BE VOLATILE OR MAY DECLINE REGARDLESS OF OUR OPERATING PERFORMANCE, AND YOU MAY LOSE PART OR ALL OF YOUR INVESTMENT.

 

The market price of our common stock may fluctuate widely in response to various factors, some of which are beyond our control, including:

 

market conditions or trends in the dietary supplement industry or in the economy as a whole;

 

actions by competitors;

 

actual or anticipated growth rates relative to our competitors;

 

the public’s response to press releases or other public announcements by us or third parties, including our filings with the SEC;

 

economic, legal and regulatory factors unrelated to our performance;

 


any future guidance we may provide to the public, any changes in such guidance or any difference between our guidance and actual results;

 

changes in financial estimates or recommendations by any securities analysts who follow our common stock;

 

speculation by the press or investment community regarding our business;

 

litigation;

 

changes in key personnel; and

 

future sales of our common stock by our officers, directors and significant shareholders.

 


In addition, the stock markets, including the over-the-counter markets where we are quoted, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These broad market fluctuations may materially affect our stock price, regardless of our operating results. Furthermore, the market for our common stock historically has been limited and we cannot assure you that a larger market will ever be developed or maintained. The price at which investors purchase shares of our common stock may not be indicative of the price that will prevail in the trading market. Market fluctuations and volatility, as well as general economic, market and political conditions, could reduce our market price. As a result, these factors may make it more difficult or impossible for you to sell our common stock for a positive return on your investment. In the past, shareholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs and our resources and the attention of management could be diverted from our business.

 

FUTURE SALES OF SHARES OF OUR COMMON STOCK, OR THE PERCEPTION IN THE PUBLIC MARKETS THAT THESE SALES MAY OCCUR, MAY DEPRESS OUR STOCK PRICE.

 

The market price of our common stock could decline significantly as a result of sales of a large number of shares of our common stock. In addition, if our significant shareholders sell a large number of shares, or if we issue a large number of shares, the market price of our stock could decline. Any issuance of additional common stock by us in the future, or warrants or options to purchase our common stock, if exercised, would result in dilution to our existing shareholders. Such issuances could be made at a price that reflects a discount or a premium to the then-current trading price of our common stock. Moreover, the perception in the public market that shareholders might sell shares of our stock or that we could make a significant issuance of additional common stock in the future could depress the market for our shares. These sales, or the perception that these sales might occur, could depress the market price of our common stock or make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

  

We have issued shares of common stock, options and convertible notes which are convertible into shares of our common stock in connection with our private placements and certain employment, director and consultant agreements. In addition, we issued shares of our common stock and convertible notes which are convertible into shares of our common stock, in financing transactions and pursuant to employment agreements that are deemed to be “restricted securities,” as that term is defined in Rule 144 promulgated under the Securities Act. From time to time, certain of our shareholders may be eligible to sell all or some of their restricted shares of common stock by means of ordinary brokerage transactions in the open market pursuant to Rule 144, subject to certain limitations. The resale pursuant to Rule 144 of shares acquired from us in private transactions could cause our stock price to decline significantly.

 

“PENNY STOCK” RULES MAY MAKE BUYING OR SELLING OUR COMMON STOCK DIFFICULT.

 

If the market price for our common stock is below $5.00 per share, trading in our common stock may be subject to the “penny stock” rules. The SEC has adopted regulations that generally define a penny stock to be any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. These rules would require that any broker-dealer that would recommend our common stock to persons other than prior customers and accredited investors, must, prior to the sale, make a special written suitability determination for the purchaser and receive the purchaser’s written agreement to execute the transaction. Unless an exception is available, the regulations would require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock market and the risks associated with trading in the penny stock market. In addition, broker-dealers must disclose commissions payable to both the broker-dealer and the registered representative and current quotations for the securities they offer. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in our common stock, which could severely limit the market price and liquidity of our common stock.

 


POTENTIAL FUTURE FINANCINGS MAY DILUTE THE HOLDINGS OF OUR CURRENT SHAREHOLDERS.

 

In order to provide capital for the operation of our business, in the future we may enter into financing arrangements. These arrangements may involve the issuance of new shares of common stock, preferred stock that is convertible into common stock, debt securities that are convertible into common stock or warrants for the purchase of common stock. Any of these items could result in a material increase in the number of shares of common stock outstanding, which would in turn result in a dilution of the ownership interests of existing common shareholders. In addition, these new securities could contain provisions, such as priorities on distributions and voting rights, which could affect the value of our existing common stock.

 

WE CURRENTLY DO NOT INTEND TO PAY DIVIDENDS ON OUR COMMON STOCK. AS A RESULT, YOUR ONLY OPPORTUNITY TO ACHIEVE A RETURN ON YOUR INVESTMENT IS IF THE PRICE OF OUR COMMON STOCK APPRECIATES.

 

We currently do not expect to declare or pay dividends on our common stock. In addition, in the future we may enter into agreements that prohibit or restrict our ability to declare or pay dividends on our common stock. As a result, your only opportunity to achieve a return on your investment will be if the market price of our common stock appreciates and you sell your shares at a profit.

 

YOU MAY EXPERIENCE DILUTION OF YOUR OWNERSHIP INTEREST DUE TO THE FUTURE ISSUANCE OF ADDITIONAL SHARES OF OUR COMMON STOCK.

 

We are in a capital intensive business and we do not have sufficient funds to finance the growth of or to support our projected capital expenditures. As a result, we will require additional funds from future equity or debt financings, including tax equity financing transactions or sales of preferred shares or convertible debt, to complete the development of new projects and pay the general and administrative costs of our business. We may in the future issue our previously authorized and unissued securities, resulting in the dilution of the ownership interests of holders of our common stock. We are currently authorized to issue 6,500,000,000 shares of common stock. The potential issuance of such additional shares of common stock or preferred stock or convertible debt may create downward pressure on the trading price of our common stock. We may also issue additional shares of common stock or other securities that are convertible into or exercisable for common stock in future public offerings or private placements for capital raising purposes or for other business purposes. The future issuance of a substantial number of common shares into the public market, or the perception that such issuance could occur, could adversely affect the prevailing market price of our common shares. A decline in the price of our common shares could make it more difficult to raise funds through future offerings of our common shares or securities convertible into common shares.

 

WE HAVE A SIGNIFICANT NUMBER OF SHARES OF OUR COMMON STOCK ISSUABLE UPON CONVERSION OF CERTAIN OUTSTANDING OPTIONS, WARRANTS AND CONVERTIBLE NOTES, AND THE ISSUANCE OF SUCH SHARES UPON EXERCISE OR CONVERSION WILL HAVE A SIGNIFICANT DILUTIVE IMPACT ON OUR STOCKHOLDERS. SALES OF A SUBSTANTIAL NUMBER OF SHARES OF OUR COMMON STOCK FOLLOWING THE EXPIRATION OF LOCK-UPS MAY ADVERSELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK AND THE ISSUANCE OF ADDITIONAL SHARES WILL DILUTE ALL OTHER STOCKHOLDERS.

 

As of April 16, 2019, the Company does not have any options outstanding. As of April 16, 2019,December 31, 2020, there are 2,000,000were 16,000,000 shares of Common Stock issuable upon conversionthe exercise of our convertible notesoptions and 5,079,004 shares of Common Stock issuable upon conversion of our outstanding shares of Series BB Convertible Preferred Stock.warrants.

  


In addition, our articles of incorporation, as amended, permits the issuance of up to 6,500,000,000 million shares of Common Stock. Thus, we have the ability to issue substantial amounts of Common Stock in the future, which would dilute the percentage ownership held by stockholders.

 


FUTURE ISSUANCE OF OUR COMMON STOCK, PREFERRED STOCK, OPTIONS AND WARRANTS COULD DILUTE THE INTERESTS OF EXISTING STOCKHOLDERS.

 

We may issue additional shares of our common stock, preferred stock, options and warrants in the future. The issuance of a substantial amount of common stock, options and warrants could have the effect of substantially diluting the interests of our current stockholders. In addition, the sale of a substantial amount of common stock or preferred stock in the public market, or the exercise of a substantial number of warrants and options either in the initial issuance or in a subsequent resale by the target company in an acquisition which received such common stock as consideration or by investors who acquired such common stock in a private placement could have an adverse effect on the market price of our common stock.

 

OUR EXECUTIVE OFFICERS AND DIRECTORS, INCLUDING OUR EXECUTIVE CHAIRMAN MR. PERRIERA AND HIS AFFILIATES,SERIES AA HOLDERS POSSESS SIGNIFICANT VOTING POWER WITH RESPECT TO OUR COMMONVOTING STOCK, WHICH WILL LIMIT YOUR INFLUENCE ON CORPORATE MATTERS.

 

There are currently 50,000 shares of Series AA Preferred Stock held by David Christensen, the Company’s CEO. As of April 16, 2019, our directors and executive officers collectively beneficially own approximately 100%a result of the issuance of 1,000,000 shares of Series AA Preferred Stock to Benito Novas, a change of control has occurred. The amended certificate of designation for the Series AA Shares. As of April 16, 2019, our directors and executive officers collectively beneficially own approximately 6%Preferred Stock provides that all of the Preferred BB shares voting equityholders of the Company. Collectively, our directors and executive officers own approximately 99.95%Series AA Preferred Stock together, voting separately as a class, shall have an aggregate vote equal to sixty-seven (67%) percent of the voting equitytotal vote on all matters submitted to the stockholders. The amended certificate of designation for the Series AA Preferred Stock further provides that a unanimous consent of the Company.holders of Series AA Preferred Stock is necessary for, among other things, a change in control of the Company, requiring the votes of both Messrs. Christensen and Novas.

 

The holder of the Series AA Super Voting Preferred Stock shall have an aggregate vote equal to sixty-seven (67%) percent of the total vote on all matters submitted to the stockholders that each stockholder of the Corporation’s Common Stock is entitled to vote at each meeting of stockholders of the Corporation (and written actions of stockholders in lieu of meetings) with respect to any and all matters presented to the stockholders of the Corporation for their action and consideration.

As a result, our insiders have the ability to significantly influence our management and affairs through the election and removal of our Board and all other matters requiring stockholder approval, including any future merger, consolidation or sale of all or substantially all of our assets. This concentrated voting power could discourage others from initiating any potential merger, takeover or other change-of-control transaction that may otherwise be beneficial to our stockholders. Furthermore, this concentrated control will limit the practical effect of your influence over our business and affairs, through any stockholder vote or otherwise. Any of these effects could depress the price of our common stock.

 

OUR ARTICLES OF INCORPORATION GRANTS OUR BOARD THE POWER TO ISSUE ADDITIONAL SHARES OF COMMON AND PREFERRED SHARES AND TO DESIGNATE OTHER CLASSES OF PREFERRED SHARES, ALL WITHOUT STOCKHOLDER APPROVAL.

 

OurAs of December 31, 2021, our authorized capital consists of 6,500,000,000 shares of common stock and 11,000,000 shares are authorized as preferred stock.stock, both with a par value of $0.001 per share. Our Board, without any action by our stockholders, may designate and issue shares of preferred stock in such series as it deems appropriate and establish the rights, preferences and privileges of such shares, including dividends, liquidation and voting rights, provided it is consistent with Delaware law.

 

The rights of holders of our preferred stock that may be issued could be superior to the rights of holders of our shares of common stock. The designation and issuance of shares of capital stock having preferential rights could adversely affect other rights appurtenant to shares of our common stock. Furthermore, any issuances of additional stock (common or preferred) will dilute the percentage of ownership interest of then-current holders of our capital stock and may dilute our book value per share.

 

ITEM 1B.UNRESOLVED STAFF COMMENTS


 

ITEM 1B. UNRESOLVED STAFF COMMENTS

This information is not required for smaller reporting companies.

 


ITEM 2.PROPERTIES

ITEM 2. PROPERTIES

 

We maintain our current principal office at 3265 Johnson Avenue,433 Plaza Real Suite 213, Riverdale, NY 10463.275 Boca Raton, Florida 33432. Our telephonephone number at this office is (800) 889-9509. This is a shared workspace, owned by a shareholder of the Company, of approximately 200 sq. ft. that the Company is not required to pay for.956-3935.

 

ITEM 3.LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS

 

Other than described below, to the Company’s knowledge, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our Company’s or our Company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

On May 12, 2015, the Company issued a convertible promissory Note (the “Note”) in the principal amount of $25,000 to Tarpon Bay Partners, LLC (“Tarpon Bay”), whose principal at the time, is now known as a “Bad Actor” under SEC rules. On or about January 23, 2017, Tarpon Bay elected to convert principal and interest under the Note into shares of the Company’s common stock. On or about June 6, 2017 the Note was assigned to J.P. Carey Enterprises, Inc. (“J.P.”). On or about June 7, 2017, J.P. elected to convert principal and interest under the Note into shares of the Company’s common stock. Joseph Canouse, a principal at J.P. initiated a lawsuit against the Company in Fulton County Court, in Georgia for, amongst other things, breach of contract. A default judgment was entered into against the Company for failure to response to these claims. The court then issued an Order of Judgement against the Company in the amount of $282,500 which was recorded in accounts payable as of December 31, 2017. The Company appealed the Courts’ decision and in November 2018, while the Court of Appeals affirmed liability under the judgment, the Court of Appeals vacated the award of the entire judgment amount and remanded the case back to the trial court with instructions. The case is awaiting a trial date.

 

ITEM 4.MINE SAFETY DISCLOSURES

On June 23, 2021, the Company entered into settlement agreement of the Joseph Canouse lawsuit for consideration of $300,000 in cash and 1,092,866 shares of common stock in the amount of $213,109. The $513,109 settlement was offset by the $282,500 which was recorded in accounts payable as of December 31, 2017 resulting in expense of $231,109 during the nine months ended September 30, 2021. 

 

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.


PART II

 

ITEM 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

Market Information.

 

Our common stock is qualified for quotation on the OTC Markets-OTCPink under the symbol “MSSV” and has been quoted on the OTCPINK since October 16, 2018. Previously, our common stock was quoted on the OTC Markets-OTC Pink Current-OTCPink, under the symbol “PNOW.” There currently is no liquid trading market for our common stock. There can be no assurance that a significant active trading market in our common stock will develop, or if such a market develops, that it will be sustained.

 

The ability of individual stockholders to trade their shares in a particular state may be subject to various rules and regulations of that state. A number of states require that an issuer’s securities be registered in their state or appropriately exempted from registration before the securities are permitted to trade in that state. Presently, we have no plans to register our securities in any particular state. Further, our shares may be subject to the provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the “penny stock” rule. Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act.

 

Holders

 

As of April 16, 2019,29, 2022, we had 142144 shareholders of common stock per transfer agent’s shareholder list.

 


Dividends

 

The Company has not paid any cash dividends to date and does not anticipate or contemplate paying any dividends in the foreseeable future. It is the present intention of management to utilize all available funds for the growth of the Registrant’s business.

 

Equity Compensation Plan Information

 

The Company does not currently have an equity compensation plan in place.

 

Recent Sales of Unregistered Securities

 

On January 8, 2020, the Company issued 410,000 shares of common stock in conversion of $2,583 convertible notes payable at conversion price of $0.0063: a loss of $4,251 was recorded.

On May 19, 2020, the Company issued 802,525 shares of common stock in conversion of $3,290 convertible notes payable at conversion price of $0.0041: a loss of $3,378 was recorded.

On July 15, 2020, the Company issued 905,929 shares of common stock in conversion of $4,122 convertible notes payable at conversion price of $0.00455: no loss was recorded.

On November 30, 2020, the Company issued 791,104 shares of common stock in conversion of $4,747 convertible notes payable at conversion price of $0.0070: a loss of $2,034 was recorded.

During the year ended December 31, 2018,2020, the Company issued warrants to purchase 16,000,000 shares of common stock, at exercise prices of $0.03 per share. These warrants expire three years from issuance date. The Company recorded the fair value of the 16,000,000 warrants issued with debt at approximately $279,868 at December 31, 2020.

On February 24, 2021, the Company issued 36,232 shares of common stock for consulting services in the amount of $10,000.

On April 16, 2021, the Company issued 33,772 shares of common stock for consulting services in the amount of $10,000.

On June 28, 2021, the Company issued 1,092,866 shares of common stock as settlement of the lawsuit with Joseph Canouse, in the amount of $213,109.


On August 18, 2021, Meso Numismatics, Inc. completed its acquisition of Global Stem Cells Group Inc., through a Stock Purchase Agreement acquiring all the outstanding capital stock of Global Stem Cells Group Inc and issued a total of 1,000,000 shares of Series AA Preferred Stock and, 8,974 shares of Series DD Preferred Stock to Benito Novas.

On August 18, 2021, in consideration of mutual covenants set forth in the Professional Service Consulting Agreement, Dave Christensen, was granted 896 shares of Series DD Preferred Stock as compensation. An amount of 448 shares are issued on August 18, 2021 and the remaining 448 to be issued February 18, 2022, both grants valued at $251,535 each.

On December 23, 2021, the Company issued 52,659 shares of common stock for consulting services which were valued in the amount of $10,000.

During the year ended December 31, 2021, the Company issued warrants to purchase 87,500,000 shares of common stock, at weighted average exercise prices of $0.091 per share. These warrants expire three years from issuance date.

During the year ended December 31, 2021 and 2020, we issued securities that were not registered under the Securities Act, and were not previously disclosed in a Current Report on Form 8-K as listed below. Except where noted, all of the securities discussed in this Item 5 were issued in reliance on the exemption under Section 4(a)(2) of the Securities Act.

1.On January 18th, 2016, Company entered into a $38,000 Promissory Note Agreement with Ajene Watson LLC., for the purpose of funding the Company’s Debt Repurchase Program. The promissory note agreement bears interest at eight (8%) percent and has a one (1) year maturity date. The note may be repaid in whole or in part any time prior to maturity. There are no common shares issuable upon the execution of this promissory note.

a.The agreement was entered into pursuant to Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder;

b.The transaction was unregistered;

c.The transaction was executed via a private agreement and not a public offering;

d.The Issuer received no additional proceeds;

e.The Promissory Note Agreement is not publicly traded;

f.The Promissory Note Agreement and any converted shares issued under this agreement contain the appropriate restrictive legend.

During the fourth quarter of 2017, the Company settled the aggregate unpaid balance by authorizing the issuance of 62,094 Series BB Preferred Shares.

2.On January 21st, 2016, as part of a capital commitment of $632,100, the Company entered into a $45,465 Convertible Debenture with Union Capital, LLC, for the purpose of funding the Company’s Debt Repurchase Program and providing other operating capital. The promissory note agreement bears interest at eight (8%) percent, has a one (1) year maturity date. The note may be repaid in whole or in part any time prior to maturity. There are no common shares issuable upon the execution of this promissory note.

a.The agreement was entered into pursuant to Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder;

b.The transaction was unregistered

c.The transaction was executed via a private agreement and not a public offering;

d.The agreement called for conversion, at the investor’s sole discretion, into common shares at a variable conversion price;

 


e.The Issuer received no additional proceeds;

ITEM 6. [Reserved]

f.The Promissory Note Agreement is not publicly traded;

g.The Promissory Note Agreement and any converted shares issued under this agreement contain the appropriate restrictive legend.

It should be further noted that on the same date, both the Company and Union Capital, LLC entered into two corresponding notes of an equal amount of $45,465.

a.The note issued by the Company is a Convertible Debenture which matures on January 21st, 2017. The note does not require the Company to establish any reserve shares until the note matures.

b.Union Capital, LLC issued the Company a note in lieu of cash, with the implicit requirement for Union Capital, LLC to fund the Company in the expressed amount on January 21st, 2017, provided certain events of cancelation were not triggered. If at any time the cancelation triggers in this note become effective, the Company’s Note automatically becomes canceled and void.

3.

On January 22, 2018, the Company issued 3,073 Preferred Series BB shares to qualifying shareholders as part of the Preferred BB Share dividend program. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months has elapsed from the issuance of the preferred stock to the holder. Each share of Series BB Preferred Stock shall represent .035% of the Company’s outstanding shares at any point in time in the future when converted the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued at the date of the agreement using the share price of $0.10 per OTC Markets on that date.

4.During February 2018, the Company issued 20,212 Preferred Series BB shares pertaining to the debt settlement entered into in December 2017. These shares were valued at the date of the agreement using the share price of $0.10 per OTC Markets on that date.

5.On February 20, 2018, the Company issued 324,554 shares of common stock in conversion of $16,228 convertible notes payable at conversion price of $0.00005. These shares were valued at the date of the agreement using the share price of $0.10 per OTC Markets on that date.

6.

On April 27, 2018, the company issued 11,564 Preferred BB Shares to qualifying shareholders as part of the Preferred BB Share dividend program. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months has elapsed from the issuance of the preferred stock to the holder. Each share of Series BB Preferred Stock shall represent .035% of the Company’s outstanding shares at any point in time in the future when converted by the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued at the date of the agreement using the share price of $0.20 per OTC Markets on that date.

7.

On June 11, 2018, the company issued 384 Preferred BB Shares to qualifying shareholders as part of the Preferred BB Share dividend program. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months has elapsed from the issuance of the preferred stock to the holder. Each share of Series BB Preferred Stock shall represent .035% of the Company’s outstanding shares at any point in time in the future when converted by the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company.

8.

On October 11, 2018, the company issued 19,209 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.09 per OTC Markets on that date.

9.On November 2, 2018, the company issued 2,449 shares of Common Stock in conversion of 258 shares of Series BB Preferred Stock. The shares were valued on the date of conversion, using the share price of $0.09 per OTC Markets on that date.

10.On November 6, 2018, the company issued 1,045 shares of Common Stock in conversion of 110 shares of Series BB Preferred Stock. The shares were valued on the date of conversion, using the share price of $0.04405 per OTC Markets on that date.

11.On November 21, 2018, the Company issued 393,698 shares of common stock in conversion of $7,480 convertible notes payable at conversion price of $0.019.

12.On December 12, 2018, the Company issued 436,142 shares of common stock in conversion of $6,542 convertible notes payable at conversion price of $0.015.

 


ITEM 6.SELECTED FINANCIAL DATA

We are not required to provide the information required by this item because we are a smaller reporting company.

 

ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

General 

 

The following is a discussion by management of its view of the Company’s business, financial condition, and corporate performance for the past year. The purpose of this information is to give management’s recap of the past year, and to give an understanding of management’s current outlook for the near future. This section is meant to be read in conjunction with the Financial Statements of this Annual Report on Form 10-K.

Overview

We intend for this discussion to provide information that will assist in understanding our financial statements, the changes in certain key items in those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements.

The Company was originally founded in 1999 as Spectrum Ventures LLC, a private company, registered in Tacoma, WA, for the purpose of developing, marketing and selling voice over IP products and services. In 2002, the Company changed its name to Nxtech Wireless Cable Systems, Inc. In August 2007, the Company changed its name to Oriens Travel & Hotel Management Corp. In November 2014, the Company changed its name to Pure Hospitality Solutions, Inc. During 2014, the Board of Directors of the Company deemed it in the best interests of the Company and its shareholders to switch directions and become involved in the business of numismatics, specifically the collection and ultimately the sale of coins, paper currency, bullion and medals.

Meso Numismatics, Inc., has established a growing numismatics operation Meso Numismatics focuses on the Central American Caribbean region with a concentration of products surrounding Mesoamerica (Mexico to Panama).

Having locations in Costa Rica and Florida for the purposes of conveniently shipping products, the Company has the ability to export its inventory of coins, paper currency, bullion and medals from Costa Rica, to be sold in the U.S. and around the world. Likewise, the Company also imports such products back to Costa Rica, to be sold throughout the local markets.

The Company adheres to strict processes related to acquisition and sale of its products. It begins by selecting the best inventory, be it a rare coin from Latin America, or a banknote with an error from the United States. All inventory is carefully screened by management, then sent to be graded by the proper grading authority. For all coins, medals and bullion, the Company’s inventory is sent to the Numismatic Guaranty Company for authentication and grading. For all banknotes, the Company utilizes the services of Paper Money Guaranty, LLC for authentication and grading, both Florida-based companies. Once graded, the inventory is sent to the Company’s Florida-based location prior to being sent to one of the Company’s many customers around the world.

We maintain an online store with eBay (www.mesocoins.com) and participate in live auctions with major companies such as Heritage Auctions, Stacks Bowers Auctions, Lyn Knight Auctions and Sedwick Coins for the sale of its coins, paper currency, bullion and medals. The Company also launched a new application technology available on the Google Play Store, as well as the Apple App Store. The Application is a banknote scanner which instantly identifies key characteristics of a banknote. This includes the catalog reference number of the note, the value, which entity it was issued by, the country of origin and the printer that printed the note. A picture of each note from our database of more than 61,000 banknotes from a combined 750 countries and regions will also be included with the information. For the numismatic industry in particular, this application eliminates the need for reference books, as well as the hours of time it takes to reference all the information about banknotes. With a simple snap of a picture, information is provided to the end-user almost instantaneously.

Meso continues to acquire rare inventory at market rates, from throughout the Meso Region (including Central America and the Caribbean). The inventory is then sent for authentication and grading, followed by said items being sold throughout Meso’s sales outlets. This includes an eBay store with up to, but not limited to, $50,000 in items for sale at any one time. For some of the Company’s rarer inventory, items are sent to major auction houses around the world for sale.

16

 

Results of Operations

 

Below is a summary of the results of operations for the years ended December 31, 20182021 and 2017.2020.

 

  For the Years Ended December 31, 
  2018  2017  $ Change  % Change 
Revenue $50,116  $29,241  $20,875   71.39%
Cost of revenue  15,035   4,810   10,225   212.58%
Gross profit  35,081   24,431   10,650   43.59%
                 
Operating expenses                
Advertising & marketing  5,727   2,719   3,008   110.63%
Professional fees  126,706   358,696   (231,990)  -64.68%
Officer compensation  45,346   64,679   (19,333)  -29.89%
Rent  200   -   200   -100.00%
Investor relations  15,936   7,000   8,936   127.66%
General & administrative  96,359   91,979   

4,380

  

4.76

%
Total operating expenses  290,274   525,073   

(234,799

)  -44.72%
                 
Other income (expense)                
Interest expense  (528,398)  (383,656)  

(144,742

)  

37.73

%
Gain (loss) on debt settlement  (3,292)  106,664   (109,956)  -103.09%
Derivative financial instruments  (1,270,683)  398,401   (1,669,084)  -418.95%
Other income (expense)  -   2,226   

(2,226

)  

100.00

%
Net income (loss) $(2,057,566) $(377,007) $(1,680,559)  

445.76

%
  For the Years Ended December 31 
  2021  2020  $ Change  % Change 
Revenue $475,261  $55,082  $420,179   762.82%
Cost of revenue  330,013   43,954   286,059   650.81%
Gross profit  145,248   11,128   134,120   1,205.25%
                 
Operating expenses                
Advertising and marketing  134,144   247   133,897   54,209.31%
Professional fees  966,974   145,624   821,350   564.02%
Officer compensation  567,932   270,581   297,351   109.89%
Depreciation and amortization  40,858   800   40,058   5,007.25%
Investor relations  100,496   12,430   88,066   708.50%
General and administrative-related party  8,116,269   -   8,116,269   0.00%
General and administrative  151,339   29,866   121,473   406.73%
Total operating expenses  10,078,012   459,548   9,618,464   2,093.03%
                 
Other income (expense)                
Interest expense  (2,724,351)  (4,204,326)  1,479,975   -35.20%
Loss on conversion of debt  -   (9,663)  9,663   -100.00%
Derivative financial instruments  3,744   (1,233,277)  1,237,021   -100.00%
Settlement of lawsuit  (231,109)  -   (231,109)  0.00%
Net income (loss) $(12,884,480) $(5,895,686) $(6,988,794)  118.54%

 

Results


Revenue

Revenue increased by 762.82% in the amount of Operations$420,179 for the Year Endedyears ended December 31, 2018 Compared2021, compared to the Year Ended December 31, 2017

same period in 2020. The relationship between gross profit andkey reason for the increase in revenue is affected by the grade assigned to each coin or banknote. Once an item has been acquired it is sent for grading and authentication. Grading is the processwas a result of determining the grade or condition of the coin and banknote, which is the key factor in determining its value. Management carefully evaluates the grades assigned to each piece of merchandise and then decides which items will be sold through its eBay store, which items will be sold at live auction and which items will be traded for other items. Grade assigned will ultimately determine the sales price and gross profit the company will record when the items are sold.

Gross profit

Prior to the acquisition of Meso Numismatics, Pure Hospitality Solutions,Global Stem Cells Group, Inc. had no revenue.on August 18, 2021. Revenue for the year endedfrom viable cell therapy and immune support related products along with physician training was $437,887 from August 19, 2021 to December 31, 2017 included only six months of revenue starting with June 30, 2017 when the companies first came under common control. Revenue from the2021, offset by a decrease in sale of coins, metals and paper money of $17,708 for the yearyears ended December 31, 2018 was $50,116 compared to $29,241 of revenue for the same period in 2017. As a result of the grading process, which is the key factor in determining value and ultimately gross profit on the sale of products the company generated a 70% gross profit of $35,081 for the year ended December 31, 2018 compared to a 84% gross profit of $24,431 for the same period in 2017. The key reason for the 14% decrease in gross profit was a result of the grade of the products sold. 


Operating expenses

Operating expenses decreased by 55% in the amount of $290,078 for the year ended December 31, 2018,2021, compared to the same period in 2017, listed2020.

Listed below are the revenues, cost of revenues and gross profits by Company for the years ended December 31, 2021:

  For the Year Ended
December 31, 2021
 
  Global Stem
Cells Group
  Meso
Numismatics
  Total 
Revenue $437,887  $37,374  $475,261 
Cost of revenue  287,750   42,263   330,013 
Gross profit $150,137  $(4,889) $145,248 
Gross Profit %  34.29%  -13.08%  30.56%

Operating expenses

Operating expenses increased by 2,093.03% in the amount of $9,618,464 for the years ended December 31, 2021, compared to the same period in 2020. Listed below are the major changes to operating expenses:

 

Professional fees decreasedincreased by $231,990$821,350 for the yearyears ended December 31, 2018,2021, compared to the same period in 2017,2020, primarily due to an Order of Judgement$146,000 in the Canouse Lawsuitlegal, $433,000 in the amount of $282,500consulting and $138,000 in 2017.audit and accounting expenses.

 

Officer compensation decreasedincreased by $19,333$297,351 for the yearyears ended December 31, 2018,2021, compared to the same period in 2017,2020, primarily due to amountsthe issuance of 896 shares of Series DD Preferred Stock of the Company to Dave Christensen, current Director, President, Chief Executive Officer, Chief Financial Officer and Secretary as compensation pursuant to the Professional Service Consulting Agreement. The $503,072 value of the 896 shares of Series DD Convertible Preferred Stock is based on converting into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion by 3.17 conversion price offset by the $166,795 value of the 50,000 shares of Series AA Super Voting Preferred Stock to Mr. David Christensen in 2020 along with $45,000 to Melvin Pereira CEO of Meso Numismatics.in 2020.

 

Investor relations expenses increasedGeneral and administrative-related party expense increase by $8,936$8,116,269 for the yearyears ended December 31, 2018,2021, compared to the same period in 2017,2020, primarily due to amounts associatedthe issuance of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock to Lans Holdings Inc. terminated and replaced with filings.a cash payment as consideration. The Company paid Lans Holdings Inc., by delivery in escrow, an amount equal to $8,200,000, offset by $83,731 the value of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock terminated.

 


General and administrative expenses

Other expense

Other expense decreased by $50,898$2,495,550 for the yearyears ended December 31, 2018,2021, compared to the same period in 2017, primarily due to expenses relating to the merger during 2017.

Other income (expense)

Other income (expense) increased by $1,611,762 for the year ended December 31, 2018, compared to the same period in 2017,2020, primarily as a result of the change in fair market value of the convertible notes in 2018 along2020 offset by increase in amortization of discounts and settlement of lawsuit in 2021.

Net Loss

We recorded a net loss of $12,884,480 for the years ended December 31, 2021, as compared with increasea net loss of unamortized discount on debt.$5,895,686 for the same period ended December 31, 2020.

 

Liquidity and Capital Resources

 

Since inception, the Company has financed its operations through private placements and convertible notes. The following is a summary of the cash and cash equivalents as of December 31, 20182021 and 2017.December 31, 2020.

 

  As of December 31, 
  2018  2017  $ Change  % Change 
Cash and cash equivalents $30,834  $7,750  $23,084   297.86%
  December 31,
  December 31,
       
  2021  2020  $ Change  % Change 
Cash and cash equivalents $2,978,525  $42,534  $2,935,991   6,903%

 

To fund basic operations for the next twelve months, the Company projects a need for $750,000 that will have to be raised through debt or equity. In addition to the estimated $300,000 for operating expenses the Company is budgeting $180,000 for advertising and marketing and $90,000 for new technology. To attract more customers to Meso Numismatics, the Company plans on hiring an advertising firm and placing more ads on sites such as NGC and PMG. Along with the advertising program the Company plans on investing in upgrading and expanding the Meso App. To continue expanding sales the Company plans to invest $90,000 to acquire additional inventory along with exploring possible acquisitions, which the Company estimates it will need approximately $100,000.

Summary of Cash Flows

 

Below is a summary of the Company’s cash flows for the years ended December 31, 20182021 and 2017.2020.

  

For the Years Ended

December 31,

 
  2018  2017 
Net cash used in operating activities $(244,640) $(6,116)
Net cash provided by investing activities  (4,000)  5 
Net cash provided by financing activities  271,724   7,213 
Net increase (decrease) in cash and cash equivalents $23,084  $1,101 

 


  For the Years
Ended December 31,
 
  2021  2020 
Net cash used in operating activities $(9,878,664) $(322,745)
Net cash provided by (used in) investing activities  666,467   (175,000)
Net cash provided by financing activities  12,148,188   516,900 
Net increase in cash and cash equivalents $2,935,991  $19,155 

Operating activities

 

Net cash used in operating activities was $244,640$9,878,664 during the year ended December 31, 20182021 and consisted of a net loss of $2,057,566,$12,884,480, which was offset by a net change in operating assets and liabilities of $87,093 offset by$1,545,861 and non-cash items of $1,725,833.$1,459,955. The primary non-cash items for the year ended December 31, 2018,2021, consisted of amortization of debt discount of $449,836$893,959 and change in derivative liabilitiesshares issued for services and settlement of $1,270,683.debt of $494,645. The significant change in operating assets and liabilities was an increase of $16,746 in accounts payable and prepaid expenses. accrued liabilities.

 

Net cash used in operating activities was $6,116$322,745 during the year ended December 31, 20172020 and consisted of a net loss of $377,007,$5,895,686, which was offset by a net change in operating assets and liabilities of $246,020 offset by$1,092,756 and non-cash items of $616,911. Non-cash$4,480,184. The primary non-cash items for the year ended December 31, 2017,2020, consisted of amortization of debt discount of $300,324$1,851,882, penalty on debt of $1,183,530, preferred shares issued for services of $166,795 and by change in derivative liabilities of $398,401 offset by loss of $81,829 on conversion of convertible debt.$1,233,277. The significant items in the change in operating assets and liabilities was a decrease of $434,513an increase in accounts payable and prepaid expenses offset by gain on settlement of vendor payables of $188,497.accrued liabilities.

 

Investing activities

 

Net cash usedprovided by investing activities was $4,000 for$666,467 consisted of cash acquired in business combination and cash to Global Stem Cells Group Inc. during the year ended December 31, 2018,2021, as compared to net cash provided by investing activitiespaid for deposit on acquisition of $5$175,000 during the same period in 2017. In 2017, $5 was utilized towards the acquisition of Meso Numismatics.2020.

 


Financing activities

 

Net cash provided by financing activities was approximately $271,724$12,148,188 consisted of proceeds received from the issuance of promissory notes offset by principle payment on debt for the year ended December 31, 2018,2021, as compared to net cash provided by financing activities of $7,213$516,900 during the same period in 2017. In 2018, $271,7242020 consisted of proceeds received from the issuance of convertible notes. In 2017, $57,919 consistedpromissory notes of proceeds received from the issuance of convertible notes$701,900 offset by $50,706 paid by$160,000 from repurchase of preferred stock.

Going Concern

The financial statements have been prepared assuming the Company on convertible notes.will continue as a going concern. The Company has incurred losses since inception, resulting in an accumulated deficit of approximately $46,669,643 and a working capital deficit of $1,200,000 as of December 31, 2021 and future losses are anticipated. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

 

Going Concern

The ability of the Company to continue its operations as a going concern is dependent on management’s plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements.

 

We currently do not see any need to raise additional capital at this time. Our current capital investors are on favorable terms, and we expect that we will be able to execute our business plan, grow the business and start generating greater revenue. We have no current plans to restrict our operations at this time. The Company willmay require additional funding to finance the growth of its current and expected future operations as well as to achieve its strategic objectives. The Company believes its current available cash along with anticipated revenues may be insufficient to meet its cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable to the Company, if at all. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Off-Balance Sheet Arrangements

 

As of December 31, 2018,2021, the Company had no off-balance sheet arrangements.

 


Critical Accounting Policies

 

Our critical accounting policies have not materially changed during the year ended December 31, 2018.2020. Furthermore, the preparation of our financial statements is in conformity with generally accepted accounting principles in the United States of America, or GAAP. The preparation of our financial statements requires management to make judgments and estimates that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Our management believes that we consistently apply these judgments and estimates, and the financial statements fairly represent all periods presented. However, any differences between these judgments and estimates and actual results could have a material impact on our statements of income and financial position.

 

Derivative Instruments

 

The derivative instruments are accounted for as liabilities, the derivative instrument is initially recorded at its fair market value and is then re-valued at each reporting date, with changes in fair value recognized in operations for each reporting period. The Company uses the Binomial option pricing model to value the derivative instruments.

 

Stock Based Compensation

 

Stock basedShare-based compensation costs areissued to employees is measured at fair valuethe grant date, based on date of grant and recognition of compensation over the service period for awards expected to vest. The Company determines the fair value of awardsthe award, and is recognized as an expense over the requisite service period. The Company measures the fair value of the share-based compensation issued to non-employees at the grant date using the Black - Scholes valuation model.stock price observed in the trading market (for stock transactions) or the fair value of the award (for non-stock transactions), which were considered to be more reliably determinable measures of fair value than the value of the services being rendered.

 


New Accounting Pronouncements

 

In May 2014, ASU 2014-09 wasMarch 2020, the FASB issued relatedoptional guidance to revenue fromease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, with customers.hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The ASU was further amended in August 2015, March 2016, April 2016,optional guidance is effective upon issuance and May 2016 by ASU 2015-14, 2016-08, 2016-10 and 2016-

In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning aftercan be applied on a prospective basis at any time between January 1, 2020 through December 31, 2017,2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements. The Company is progressing in its evaluation of LIBOR cessation exposures, including the review of debt-related contracts, leases, business development and licensing arrangements, royalty and other agreements. The Company has amended certain agreements and continues to review other agreements for potential impacts. With regard to debt-related exposures in particular, all existing interest rate swaps linked to LIBOR will mature in 2022. The Company is still evaluating the impact to its LIBOR-based debt. Based on its evaluation thus far, the Company does not anticipate a material impact to its consolidated financial statements as a result of reference rate reform.

In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied retrospectively.prospectively. Early adoption is not permitted.

Since ASU 2014-09 was issued, several additional ASUs have been issuedpermitted on a retrospective basis to clarify various elementsthe beginning of the guidance. These standards providefiscal year of adoption. The adoption of this guidance on recognized revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Effective January 1, 2018, the Company will adopt ASU 2014-09, “Revenue from Contracts with Customers”. The results of operations for the reported periods after January 1, 2018 will be presented under this amended guidance, while prior period amounts are reported in accordance with ASC 605-Revenue Recognition.

The Company has completed its assessment of the impact of the new revenue standard on the Company’s financial position, results of operations, or cash flows and believes the new standard will not have a material impact.impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.

In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company will adoptguidance requires annual disclosures of such transactions to include the standard using the modified retrospective method of adoption. The Company’s revenue arises from contracts with customers in which the sale of coins is the single performance obligation under the customer contract. Accordingly, revenue will continue to be recognized at a point in time when controlnature of the asset is transferredtransactions and the significant terms and conditions, the accounting treatment and the impact to the customer, whichcompany’s financial statements. The guidance is generally consistent with the Company’s current accounting policies.

ASU 2014-09 provides presentation and disclosure requirements which are more detailed than under current GAAP.

In February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement.

The ASU will be effective for annual and interim periods beginning January 1, 2019, with early adoption permitted,in 2022 and is applicableto be applied on either a modifiedprospective or retrospective basis with various optional practical expedients.basis. The Company is assessingcurrently evaluating the impact of this standard.


The Company reviews new accounting standards as issued. No new standards had any material effectadoption on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on theseits consolidated financial statements. Management does

Other accounting standards and amendments to existing accounting standards that have been issued and have future effective dates are not believe any of the subsequent pronouncements willapplicable or are not expected to have a material effectsignificant impact on thesethe Company’s consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to December 31, 2018 through the date these financial statements were issued.

 

Revenue Recognition

 

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial salessale of products by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods,

The Company’s main sources of revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectabilitycomprised of the fee is reasonably assured. following:

Revenue is derived from activities in training, reselling equipment, products, and services.

Training-GSCG offers a Stem Cell & Exosomes Certification Program where physicians attending this training sessions will take advantage of a full review of stem cell biology, characterization and regenerative properties of cells and cell products, cytokines and growth factors and how can be apply in the clinic. The physicians will pay for the training sessions upfront and receives all the material and certificate upon completion of seminar which is when revenue is recognized by GSCG.

Products-Physicians can order SVF Kits through GSCG which includes EC Certificate from Institute for Testing and Certificating, Inc. SVT Kits are paid for upfront and shipped from third party directly to physicians. Revenue is recognized by GSCG when product is shipped.


Equipment- Physicians can order equipment through GSCG which includes warranty from manufacture of equipment. Equipment is paid for upfront and shipped from manufacture directly to physicians. Revenue is recognized by GSCG when product is shipped.

Rare coins and banknotes-MESO acquires rare coins and banknotes from Latin America at reduced costs and sales through its website and auctions.

The Company recognizes revenues and the related costsrevenue when persuasive evidence of an arrangement exists, delivery and acceptance has occurred, or service has been rendered, the priceit satisfies a performance obligation by transferring control over a product to a customer. Revenue is fixed or determinable, and collection of the resulting receivable is reasonably assured. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for sales returns, bad debts, and other allowancesmeasured based on its historical experience.the consideration the Company receives in exchange for those products.

 

The Company acquires rare coins from Latin America at reduced costs, and then sends them to Numismatic Guaranty Company for authentication and grading. Once graded, the inventory is sent to Meso’s Florida-based location, to then be sent around the world to the Company’s many customers with sales recorded net of fees.

Use of Estimates

 

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates included in these financial statements are associated with accounting for the derivative liability valuations, valuation of preferred stock, fair value estimates, valuation of assets and liabilities in business combination and in its going concern analysis.

 

Fair Value of Financial Instruments

 

The fair value of financial instruments, which include cash, accounts payable and accrued expenses and advances from related parties were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Management is of the opinion that the Company is not exposed to significant interest, currency or credit risks arising from financial instruments.

 

Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy which prioritizes the inputs used in the valuation methodologies, as follows:

 

Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

 

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

 


Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

 

At December 31, 20182021 and December 31, 2017,2020, the carrying amounts of the Company’s financial instruments, including cash, accounts payableaccount payables, and accrued expenses, approximate their respective fair value due to the short-term nature of these instruments.

 

At December 31, 20182021 and December 31, 2017,2020, the Company does not have any assets or liabilities except for derivative liabilities related to convertible notes payable required to be measured at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement.

 

ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are not required to provide the information required by this Item because we are a smaller reporting company.

 

ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The financial statements required by this Item 8 are included in this Annual Report following Item 15 hereof. As a smaller reporting company, we are not required to provide supplementary financial information.

 

ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

ITEM 9A.CONTROLS AND PROCEDURES


 

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports, filed under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. In addition, the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

As required by the SEC Rules 13a-15(b) and 15d-15(b), we carried out an evaluation under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

 


To address these material weaknesses, management engaged financial consultants, performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

Management’s Annual Report on Internal Control Over Financial Reporting.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (“ICFR”) for the Company. Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. The framework used by management in making that assessment was the criteria set forth in the document entitled “2013 Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, management concluded that, during the period covered by this report, such internal controls and procedures were not effective as of December 31, 2018 and that material weaknesses in ICFR existed as more fully described below.

A material weakness is a deficiency, or a combination of deficiencies, within the meaning of Public Company Accounting Oversight Board (“PCAOB”) Auditing Standard AS 2201, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that as of December 31, 2018 our internal controls over financial reporting were not effective at the reasonable assurance level:

1.We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the year ended December 31, 2018.2021. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

2.
2.We do not have sufficient resources in our accounting function, which restricts the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner. In addition, due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.
3.  We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis from non-financial personnel to those responsible for financial reporting. Management evaluated the impact of the lack of timely communication between non–financial personnel and financial personnel on our assessment of our reporting controls and procedures and has concluded that the control deficiency represented a material weakness.

3.
4. Certain control procedures were unable to be verified due to performance not being sufficiently documented. As an example, some procedures requiring review of certain reports could not be verified due to there being no written documentation of such review. Management evaluated the impact of its failure to maintain proper documentation of the review process on its assessment of its reporting controls and procedures and has concluded deficiencies represented a material weakness.
5.

The Company has no formal control process relatedfailed to account for the identification and approvalacquisition of related party transactions.

GSCG using the full purchase accounting method in accordance with ASC 805.

 


We intend to continue toTo address these weaknesses as resources permit.

Notwithstanding the assessment that our ICFR was not effective and that there are material weaknesses, as identified herein, we believemanagement engaged financial consultants, performed additional analyses and other procedures to ensure that our consolidatedthe financial statements containedincluded herein fairly present, in this Annual Report fairly presentall material respects, our financial position, results of operations and cash flows for the years covered thereby in allperiods presented. We have not remedied the material respects.weaknesses as of December 31, 2021. The Company plans to take remedial action to address these weaknesses during the fiscal year ended 2022.

 

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm as we are a smaller reporting company and are not required to provide the report.

Changes in Internal Control Over Financial Reporting

 

There has been no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) of the Exchange Act that occurred during the quarteryear ended December 31, 20182021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, except the implementation of the controls identified above.

 

ITEM 9B.OTHER INFORMATION

ITEM 9B. OTHER INFORMATION

 

None.

ITEM 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.


PART III

 

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

 

Our current directorsdirector and executive officersofficer and their ages as of April 10, 2019his age are listed below. The number of directors is determined by the Board. All directors hold office until the next annual meeting of the board or until their successors have been duly elected and qualified. Officers are elected by the Board and their terms of office are, except to the extent governed by employment contract, at the discretion of the Board.

 

Name Current Age Position
Melvin PereiraDavid Christensen 5356 Chairman of the Board of Directors, President, and Chief Executive Officer (Principal Executive Officer)
Martin Chuah68, Chief Financial Officer (Principal Accounting Officer and Principal Financial Officer), Secretary and Director

 

Melvin Pereira, Chairman,David Christensen

From Feb 2001 to present, Dave has been the CEO and EVP of Enterprise Technology Consulting, where he helps companies transform their Leadership and Operations by driving Strategic Initiatives. As a Black Belt in Lean Six Sigma, he uses the best tools from these Lean Principles known as “Hoshin Kanri” (Strategy Deployment) to help companies develop and execute their business objectives. Strategy Deployment leverages this strong process knowledge and broad business experience to drive continuous improvement and performance breakthroughs that deliver exceptional value.

From Dec 2017 to present, Dave has also served as CEO and President and Chief Executive Officer -of TNT Blockchain Inc, where he leads an international team of Supply Chain Technology solutions developers.

 

Mr. Pereira, age 53,From May 2019 to Nov 2019, Dave served as CEO and Director of Lans Holdings, Inc., a company in the payment processor business.

From Jul 2015 to Present, Dave served as Vice President Strategy Development of Mode Transportation, a company in the freight transportation industry.

From Sep 2015 to Jan 2018, Dave served as Chief Strategy Officer and Director of Lans Holdings, Inc., a company in the payment processor business.

Dave has previously worked for companies such as Compaq, HP, Cal Cartage, Qualcomm, Wal-Mart International, Rexnord Carlyle, Lans Holdings, Mode Transportation, Hypercom, and Verifone.

Aside from that provided above, Dave does not hold and has not held over 40the past five years any other directorships in any company with a class of securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940.

Dave is qualified to serve as our director for his experience in the numismatic industry, following a 7-year career as an executive in the travel and hospitality industry. Previously, he had been involved in four companies within the travel and hospitality industry, holding positions including President, CEO, Director and Consultant.  From 2014 through 2018, Mr. Pereira was the Chief Executive Officer for Pure Hospitality Solutions, Inc., a travel and hospitality company. From 2003 to 2014, he was President of E-Network De Costa Rica, a company involved in computer technology, software development and technology consulting. He has an undergraduate degree from Colegio Seminario, Costa Rica, and a Law Degree from Universidad de Costa Rica.developing companies.

In 1970 Mr. Pereira re-engaged in his passion for numismatics, when his uncle was the Executive Administrator for the Costa Rican Central Bank. Under his uncle’s mentorship, Mr. Pereira was introduced to the executives from Thomas De La Rue, the American Bank Note Company, and executives from the Guatemalan and Brazilian Central Banks. This apprenticeship under his uncle continued, leading Mr. Pereira to start increasing his own personal collection and learning the ins and the outs of the numismatic and banking industry.

 


Mr. Pereira has certified the largest number of coins throughout Costa Rica (since 2016), utilizing NGC and the logistics that he created, giving him a first-mover, on-the-ground presence in Central America as well as the United States. In addition, Mr. Pereira has introduced a plethora of new variety of coins to NGC, including the only First Releases ever obtained and certified from Panama and Costa Rica. Through Mr. Pereira’s relationship with PMG and NGC, he is actively working on creating new technologies to greatly benefit the numismatic industry.

Mr. Pereira was also awarded the Best Presented Set of 2018 from PMG, highlighting the immense collection of highly-graded banknotes he procured from Costa Rica.

Martin Chuah, Director

Mr. Chuah, age 68, combines over 30 years of experience in Business Management and Accounting, including a 14-year career as the Accountant and Controller for a well-known hotel destination. Previously, he was involved in three companies, holding positions including Director and Controller. From 2014 through 2018, Mr. Chuah was the Director for Pure Hospitality Solutions, Inc., a travel and hospitality company. From 2004 to 2018, he was the Accountant and Controller for the Holiday Inn Express, Calgary DT., a well-recognized hotel brand. From 1984 to 2018, he was the Director of S & M Chuah Enterprises, Ltd. a Business Management company that focused on accounting and investments. He received his Professional Level 3 Degree as a Management Accountant from The Institute of Management Accountant of England.

Family Relationships.

 

There are no family relationships between any of our directors or executive officers.

 


Involvement in Certain Legal Proceedings.

 

There have been no events under any bankruptcy act, any criminal proceedings and any judgments, injunctions, orders or decrees material to the evaluation of the ability and integrity of any director, executive officer, promoter or control person of the Company duringDuring the past five years.10 years, none of our current directors, nominees for directors or current executive officers has been involved in any legal proceeding identified in Item 401(f) of Regulation S-K, including:

 

The board of directors acts as the Audit Committee and the board of directors has no separate committees. The Company has no qualified financial expert at this time because it has not been able to hire a qualified candidate. The Company intends to continue to search for a qualified individual for hire.

1.Any petition under the Federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing;

 

2.Any conviction in a criminal proceeding or being named a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

3.Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from, or otherwise limiting, the following activities:

i.Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

ii.Engaging in any type of business practice; or

iii.Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;

4.Being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any type of business regulated by the Commodity Futures Trading Commission, securities, investment, insurance or banking activities, or to be associated with persons engaged in any such activity;

5.Being found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

6.Being found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;

7.Being subject to, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

i.Any Federal or State securities or commodities law or regulation; or

ii.Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

iii.Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

8.Being subject to, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Term of Office

 

Our directors are appointed at the annual meeting of shareholders and hold office until the annual meeting of the shareholders next succeeding his or her election, or until his or her prior death, resignation or removal in accordance with our bylaws. Our officers are appointed by the Board and hold office until the annual meeting of the Board next succeeding his or her election and until his or her successor shall have been duly elected and qualified, subject to earlier termination by his or her death, resignation or removal.

 


Section 16(a) Beneficial Ownership Reporting Compliance

 

As of December 31, 2018 and through February 12, 2019, we did not have2021, based on a classreview solely of securities registeredthe filings made under the Exchange Act and therefore our directors, executive officers, and any persons holding more than ten percent of our Common Stock were not required to comply with Section 16 of the Exchange Act. Such persons became obligated to comply with such rules upon the February 12, 2019 filing of our Form 10-12G registering our class of Common Stock.Act, all reports were timely filed

 


ITEM 11.EXECUTIVE COMPENSATION.

ITEM 11. EXECUTIVE COMPENSATION.

 

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by us during the years ended December 31, 20182021 and 2017.2020.

 

2018 EXECUTIVE OFFICER COMPENSATION TABLE

 

Name and Principal Position Year Salary
($)
  Bonus
($)
  Stock
Awards
($)
  Option
Awards
($)
  Non-Equity
Incentive Plan
Compensation
($)
  Non-Qualified
Deferred
Compensation
Earnings
($)
  All Other
Compensation
($)
  Total
($)
 
                           
Melvin Pereira 2018  45,346                                                                                         
Chief Executive Officer (PEO/PFO) 2017  64,790                                 
Name and Principal Position Year  Salary
($)
  Bonus
($)
 
   Stock
Awards
($)
 
   Option
Awards
($)
 
   Non-Equity
Incentive Plan
Compensation
($)
 
  Non-Qualified
Deferred
Compensation
Earnings
($)
  All Other
Compensation
($)
 
  Total
($)
 
 
                            
Melvin Pereira  2020   48,786                                                                                           48,786 
Chief Former Executive Officer (PEO/PFO)  2021                                 
                                     
David Christensen  2020   55,000       166,795                   221,795 
President, Chief Executive Officer (Principal Executive Officer), Chief Financial Officer (Principal Accounting Officer and Principal Financial Officer), Secretary And Director  2021   60,000       503,072                   563,072 

 

(1)Mr. Melvin Pereira has cancelled and forgiven an aggregate of $107,793.82 of accrued salary and severance payments, representing his work with the Company from January 1, 2016 through December 31, 2017.

Outstanding Equity Awards at the End of the Fiscal Year

 

We do not have any equity compensation plans and therefore no equity awards are outstanding as of December 31, 2018.2021. 

 

None of the members of the board of directors of the Company were compensated for services in such capacity.

 

Bonuses and Deferred Compensation

 

We do not have any bonus, deferred compensation or retirement plan. All decisions regarding compensation are determined by our board of directors.

 

Options and Stock Appreciation Rights

As of April 16, 2019, no options have been issued.

Payment of Post-Termination Compensation

 

We do not have change-in-control agreements with our director or executive officer, and we are not obligated to pay severance or other enhanced benefits to our executive officer upon termination of her employment.

 


Employment Agreements

 

Currently,On August 18, 2021, the Company has no employment agreements but expects to enterentered into onea three year Consulting Agreement with Chief Executive Officer inETC (Enterprise Technology Consulting) owned by David Christensen. Consultant shall be compensated monthly based on annual rate of $90,000. Additionally, the near future.agreement with ETC includes an issuance of 896 shares of Series DD Preferred Stock of the Company. An amount of 448 shares are issued on August 18, 2021 and the remaining 448 was issued on February 18, 2022.

 

Board of Directors

 

Our directors hold office until the next annual meeting of shareholders and until their successors have been duly elected and qualified. Our officers are elected by and serves at the discretion of the board of directors.

 

Securities Authorized for Issuance Under Equity Compensation Plans

 

As of December 31, 2018,2021, we did not have any securities authorized for issuance under any equity compensation plans.

  


Compensation of Directors

 

No director received compensation for his services during the year ended December 31, 2018.2021.

 

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

 

The following table sets forth as of April 16, 2019, the number of shares of common stock owned of record and beneficially by our executive officers, directors and persons who hold 5% or more of the outstanding shares of commonvoting stock of the Company.

 

The amounts and percentages of our common stock beneficially owned are reported on the basis of SEC rules governing the determination of beneficial ownership of securities. Under the SEC rules, a person is deemed to be a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has the right to acquire beneficial ownership within 60 days through the exercise of any stock option, warrant or other right. Under these rules, more than one person may be deemed a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest. Unless otherwise indicated, each of the shareholders named in the table below, or his or her family members, has sole voting and investment power with respect to such shares of our common stock. Except as otherwise indicated, the address of each of the shareholders listed below is: c/o Meso Numismatics, Inc., 3265 Johnson Avenue,433 Plaza Real Suite 213, Riverdale, NY 10463.275 Boca Raton, Florida 33432.

 

Applicable percentage ownership is based on 4,901,02412,161,403 shares of Common Stock outstanding as of April 16, 2019. In computing the number of shares of Common Stock beneficially owned by a person and the percentage ownership of that person, we deemed to be outstanding all shares of Common Stock subject to options held by that person or entity that are currently exercisable or that will become exercisable within 60 days of April 16, 2019.29, 2022. In addition, as of April 16, 2019, 1,000,00029, 2022, there were 1,050,000 shares of Series AA Preferred Stock and 444,135 shares of Series BB Preferred Stock were outstanding.

Name and Address of Beneficial Owner Common Stock Owned Beneficially  Percent of Class  Series AA Preferred Stock Owned Beneficially  Percent of Class  Series BB Preferred Stock Owned Beneficially  Percent of Class 
Named Executive Officers and Directors                                                      
Melvin Pereira President, Chief Executive Officer, and Chairman 2011 NW 79th Avenue, Suite 380, Doral FL 33122 (1)  1,500   *%  500,000   50.0%  25,000   5.63 
S&M Chuah Enterprises Ltd. (Martin Chuah), Director (2)  84   *%  500,000   50.0%        
All directors and officers as a group (5 persons)  1,584                     
5% or greater shareholders                        
Ajene Watson, LLC (3)  350,022   7.14%          62,094   13.98%
                         
Total  351,606   7.14   100,000   100%  87,094   19.61%

* Less than 1%

 


(1) Melvin Pereira is the Principal of E-Network De Costa Rica SA, the holder of 1,500 shares of common stock and 500,000 shares of Series AA Preferred Stock. Mr. Pereira has investment and voting control over such shares. Melvin Pereira is the Principal of Meso Numismatics Corp., the holder of 25,000 shares of Series BB Preferred Stock. Mr. Pereira has investment and voting control over such shares.

Name and Address of Beneficial Owner Common
Stock
Owned
Beneficially
  Percent
of Class
  Series AA
Preferred
Stock
Owned
Beneficially
  Percent
of Class
 
Named Executive Officers and Directors            
Dave Christensen  -   -   50,000   5%
All Executive Officers and Directors as a group (1 person)  -   -   50,000   5%
5% or greater shareholders      -         
Ajene Watson LLC(1)  747,303   6.14%  -   - 
Benito Novas  -       1,000,000   95%

 

(2) Martin Chuah is the Principal of S&M Chuah Enterprises Ltd., the holder of 84 shares of common stock and 500,000 shares of Series AA Preferred Stock. Mr. Chuah has investment and voting control over such shares.

(1)Mr. Ajene Watson has investment and voting control over such shares.

 

(3) Ajene Watson LLC holds 350,002 shares of common stock and Ajene Watson holds 20 shares of common stock. Ms. Ajene Watson has investment and voting control over such shares.ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

 

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Other than as disclosed below, or included in the section titled Executive Compensation, there have been no transactions involving the Company since the beginning of the last fiscal year, or any currently proposed transactions, in which the Company was or is to be a participant and the amount involved exceeds $120,000 or one percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest.

 


On June 30, 2017,26, 2020, Meso Numismatics Inc. completed the repurchase of 1,000,000 shares of its Series AA (“Series AA”) Super Voting Preferred Stock for an aggregate total purchase price equal to $160,000, representing all of the Series AA shares held by E-Network de Costa Rica S.A. and S&M Chuah Enterprises Ltd., respectively.

On June 26, 2020, due to Mr. Pereira’s resignation, Meso Numismatics Inc.’s Board of Directors appointed Mr. David Christensen, current Director and President of the Company, to serve as Chief Executive Officer, Chief Financial Officer and Meso Numismatics have agreed to a payment in the mutually agreed upon amount of 25,000Secretary, effective June 27, 2020 and granted 50,000 shares of Series BBAA to Mr. David Christensen.

In consideration of mutual covenants set forth in the Professional Service Consulting Agreement, Dave Christensen, current Director, President, Chief Executive Officer, Chief Financial Officer and Secretary, shall be compensated monthly based on annual rate of $90k starting January 1, 2022. Additionally, the agreement includes an issuance of 896 shares of Series DD Preferred Stock of the Company, par value $0.001 per share, which amounts to 2.5%Company. An amount of the authorized448 shares of this class of preferred, fully satisfying the Merger Agreement, which was first entered into on November 16, 2016. These shares wereare issued on August 14, 2017,18, 2021 and the remaining 448 to be issued February 18, 2022, the value of each grant equaling $251,535. Amounts paid to Enterprise Technology Consulting, a Company 100% owned by Dave Christensen, CEO, for consulting services during 2021 were $60,000.

The Company paid Lans Holdings Inc., by delivery in escrow on November 3, 2021, an amount equal to USD $8,200,000.

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. the Company acquired a 2018 Jaguar F-Pace which was acquired from Benito Novas for $45,000 on January 8, 2019 and assumed the related auto loan, with an original loan amount of $20,991 at 8.99% interest for 48 months and monthly payments of $504.94. As of December 31, 2021, the principal balance of the outstanding auto loan was $5,776.

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. the Company acquired 50,000,000 shares of common stock from Aesthetic Marketing Group, LLC on May 23, 2019. Aesthetic Marketing Group is wholly owned by Benito Novas, CEO of Global Stem Cell Group, Inc.

Benito Novas’, (CEO of Global Stem Cell Group, Inc.) brother, sister and nephew provide marketing/administrative and training/R&D services to Global Stem Cells Group and were accounted for under common control acquisition accounting, since both entities were controlled by Melvin Pereira, CEO of Pure Hospitality Solutions. The shares were valued on the date of the agreement using the share price of $0.0002.

On June 27, 2016, the Company entered into a debt settlement equity swap agreement with a former manager, Wanda Chan,paid as consultants from August 18, 2021 to settle convertible promissory notes issued between 2003 and 2013 for the total amount of $3,288,218. Both parties agreed to a future exchange of equity as payment for a settlement amount of $2,018,530, which was recorded in equity as stock payable. A gain of $1,269,688 on the debt settlement was recorded to paid in capital due to Wanda being a related party. On the date of settlement, the Company and Wanda Chan agreed to a payment in the mutually agreed upon amount of 170,000 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $2,018,572. On July 20, 2017, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016. The shares were issued on July 20, 2017, releasing the total stock payable in the amount of $2,018,572. The 170,000 shares were valued on the date of the agreement at $.0004 per OTC Markets on that date, resulting in an additional gain during 2017 of $2,018,462 on the issuance of the shares, which was included under additional paid-in capital due to Wanda Chun being a related party.

On April 12, 2016, the Company entered into a debt settlement equity swap agreement with related party, Ajene Watson LLC, to settle convertible promissory notes issued in 2014 for the principle amount of $9,600. On the date of settlement, the Company and Ajene Watson LLC agreed to a payment in the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $43, the total value of the shares on the date of the agreement per OTC markets. This resulted in a gain of $9,557 in 2016, which was recorded under additional paid in capital as Ajene Watson was considered a related party. On December 29, 2017, the Company issued the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016, releasing the stock payable amount of $43.

A total gain on related party debt forgiveness was $2,018,462 in the year ended December 31, 2017, which was included2021 in additional paid in capital.aggregate $101,175.

 

The Company currently shares its corporate registered offices with Ajene Watson LLC at 3265 Johnson Avenue, Suite 213, Riverdale, NY 10463. The lease is for a year-to-year term.  ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

 

ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICES.

M&K CPAS, PLLC served as our independent registered public accountants for the yearsyear ended December 31, 2018 and 2017.2020. L J Soldinger Associates, LLC served as our independent registered public accountants for the year ended December 31, 2021.

 

Audit Fees

 

For the Company’s fiscal years ended December 31, 20182021 and 2017,2020, we were billed approximately $31,500$109,445 and $30,000,$30,400, respectively, for professional services rendered by our independent auditors for the audit and review of our financial statements.

 

Audit Related Fees

 

There were no fees for audit related services rendered by our independent auditors for the years ended December 31, 20182021 and 2017.2020, respectively.

 

Tax Fees

 

For the Company’s fiscal years ended December 31, 20182021 and 2017,2020, there were no fees for professional services rendered by our independent auditors for tax compliance, tax advice, and tax planning.

 


All Other Fees

 

For the Company’s fiscal years ended December 31, 20182021 and 2017,2020, we were no billed any other fees by our auditors.

 

(a)EXHIBITS

 


PART IV

ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES.

(a)(1) FINANCIAL STATEMENTS.

The following documents are included on pages F-1 through F-33 attached hereto and are files as part of this Annual Report on Form 10-K. Reference is made to the Index to Consolidated Financial Statements on Page F-1.

(a)(2) EXHIBITS

We have filed the exhibits listed on the accompanying Exhibit Index of this registration statement and below in this Item 15:

    Incorporated by  
Exhibit   Reference Filed or Furnished
Number Exhibit Description Form   Exhibit Filing Date Herewith
           
2.1 Plan of Merger 10-12G 2.1 12/12/2018  
           
3.1 Articles of Incorporation, as Amended 10-12G 3.1 12/12/2018  
           
3.2 Series AA Certificate of Designation 10-12G 3.2 12/12/2018  
           
3.3 Series BB Certificate of Designation 10-12G 3.3 12/12/2018  
           
3.4 Amendment to Certificate of Designation of Series AA Preferred Stock 8-K 3.1 11/29/2019  
           
3.5 Certificate of Designation of Series CC Preferred Stock 8-K 3.2 11/29/2019  
           
3.6 Certificate of Designation of Series DD Preferred Stock 8-K 3.3 11/29/2019  
           
3.7 Amendment to Certificate of Designation of Series AA Preferred Stock 8-K 3.1 6/24/2021  
           
3.7 Amended and Restated Bylaws 8-K 3.4 11/29/2019  
           
10.2 Binding Letter of Intent 8-K 10.1 07/15/2019  
           
10.3 Exchange Agreement of Series BB Convertible Stock 8-K 10.1 11/29/2019  
           
10.4 Repurchase Agreement 8-K 10.1 11/29/2019  
           
10.5 Stock Purchase Agreement 8-K 10.2 6/24/2021  
           
10.6 Consulting Agreement 8-K 10.1 8/19/2021  
           
21.1 List of Subsidiaries 10-12G 21.1 12/12/2018  
           
31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.       X
           
31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.       X
           
32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350.       X
           
101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.       X
           
101.SCH Inline XBRL Taxonomy Extension Schema Linkbase Document.       X
           
101.CAL Inline XBRL Taxonomy Calculation Linkbase Document.       X
           
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.       X
           
101.LAB Inline XBRL Taxonomy Label Linkbase Document.       X
           
101.PRE Inline XBRL Taxonomy Presentation Linkbase Document.       X
           
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).        

ITEM 16. 10-K SUMMARY

None


 

    Incorporated by  
Exhibit   Reference Filed or Furnished
Number Exhibit Description Form  Exhibit Filing Date Herewith
           
2.1 Plan of Merger 10-12G 2.1 12/12/2018  
           
3.1 Articles of Incorporation, as Amended 10-12G 3.1 12/12/2018  
           
3.2 Series AA Certificate of Designation 10-12G 3.2 12/12/2018  
           
3.3 Series BB Certificate of Designation 10-12G 3.3 12/12/2018  
           
3.4 Bylaws 10-12G 3.4 12/12/2018  
           
4.1 Form of Convertible Note 10-12G 4.1 12/12/2018  
           
10.1 Form of Debt Repayment 10-12G 10.1 12/12/2018  
           
21.1 List of Subsidiaries 10-12G 21.1 12/12/2018  
           
31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.       X
           
31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.       X
           
32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350.       X
           
32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350.       X
           
101.INS 

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

       X
           
101.SCH XBRL Taxonomy Extension Schema Linkbase Document.       X
           
101.CAL XBRL Taxonomy Calculation Linkbase Document.       X
           
101.DEF XBRL Taxonomy Extension Definition Linkbase Document.       X
           
101.LAB XBRL Taxonomy Label Linkbase Document.       X
           
101.PRE XBRL Taxonomy Presentation Linkbase Document.       X

 

SIGNATURES


SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: April 17, 2019Dated May 4, 2022MESO NUMISMATICS, INC.
   
 By:/s/ Melvin PereriaDavid Christensen
  Melvin PereriaDavid Christensen
  

President, Chief Executive Officer, Chief Financial Officer, Secretary and Director

(Principal Executive Officer)

(Principal Financial Officer)

(Principal Accounting Officer)

 


Meso Numismatics, Inc.

(Formerly Pure Hospitality Solutions, Inc.)

 

ITEM 15   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

MESO NUMISMATICS, INC.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

CONTENTS

 Page
Financial InformationPage
  
ReportReports of Independent Registered Public Accounting FirmFirmsF-2
  
Consolidated Balance Sheets as of December 31, 20182021  and 20172020F-3F-7
  
Consolidated Statements of Operations for the Years Ended December 31, 20182021 and 20172020F-4F-8
  
Consolidated Statements of Stockholders’ Deficit for the Years Ended December 31, 20182021 and 20172020F-5F-9
  
Consolidated Statements of Cash Flows for the Years Ended December 31, 20182021 and 20172020F-6F-11
  
Notes to Consolidated Financial StatementsF-7F-12

 


F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of DirectorsDirector and

Stockholders of Meso Numismatics, Inc.Inc,

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheetssheet of Meso Numismatics, Inc.Inc, (the Company)“Company”) as of December 31, 2018 and 2017,2021, and the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year periodyear ended December 31, 2018,2021, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017,2021, and the results of its operations and its cash flows for each of the years in the two-year periodyear ended December 31, 2018,2021, in conformity with accounting principles generally accepted in the United States of America.

 

Explanatory Opinion - Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company suffered net losses from operations from inception, has a working capital deficit of approximately $1,200,000 and has an accumulated deficit of $46,669,643 as of December 31, 2021 which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 2. We believe that our audits provide a reasonable basis for our opinion.

Basis for Opinion

 

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our auditsaudit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

F-2

Business Combination

Critical Audit Matter Description

The Company consummated a business combination whereby, the Company acquired 100% of the outstanding stock of Global Stem Cell Group, Inc. (“GSCG”). The Company purchased the outstanding stock of GSCG through the issuance of its Series AA and Series DD preferred stock along with cash to the seller. The Company engaged an independent consultant to assist in the valuation of the preferred stock. The Company also required the independent consultant to value the net assets including goodwill and intangibles acquired in the transaction.

Critical Audit Matter Determination

The business combination was major change in size and operations of the Company requiring expertise in the valuations of the Company’s preferred stocks issued as part of the consideration and valuation of the intangible assets and goodwill acquired in the acquisition.

How We Addressed the Matter in Our Audit

-Read the valuation reports prepared by the independent valuation consultant

-Reviewed the consultant’s qualifications

-Discussed the methodology used in the valuing the Company’s preferred stock issued to the seller

-Reviewed the consultant’s assumptions used and calculations performed of the value of the preferred stock and the allocation of the purchase price to the net assets acquired including the intangibles and goodwill

-Tested the models developed by the outside consultant with managements input

Notes Payable and Warrants

Critical Audit Matter Description

As discussed in Note 4, the Company obtains funds for operations by issuing convertible notes payable and warrants. Some of the convertible notes that have been issued contain conversion features that result in the conversion prices that fluctuate with the daily changes in the Company’s common stock price as it trades in the over-the-counter market. Due to the fluctuation of the conversion prices, the embedded conversion features require bifurcation from the host contracts and are recorded as derivative liabilities which US GAAP requires the fair value to be determined as of each reporting period.

Critical Audit Matter Determination

Significant judgment is required by the Company in determining the derivative liability values for these convertible note agreements including the use of a specialist engaged by management and allocations of the proceeds of the notes to the notes and warrants issued.

How We Addressed the Matter in Our Audit

-We reviewed the consultant’s qualifications

-We reviewed the terms of the debt agreements and warrants issued by the Company.

-We inquired of management and there outside consultants regarding the assumptions used in the allocations of the proceeds of the debt instrument to the debt and warrants issued.

-We reviewed support for the significant inputs used in the valuation models prepared to determine the value of the embedded derivatives, as well as assessing the model for reasonableness.

F-3

Going Concern

Critical Audit Matter Description

The accompanying consolidatedfinancial statements have been prepared assuming that the Company will continue as a going concern. Management’s plans for addressing going concern matter are described in Note 2.

Critical Audit Matter Determination

As discussed in Note 2 to the financial statements, the Company suffered a net loss from operations, a working capital deficit and has an accumulated deficit of approximately $47 million which raises substantial doubt about its ability to continue as a going concern.

How We Addressed the Matter in Our Audit

Our audit procedures included:

-Identifying the conditions and events noted above that, when considered in the aggregate, indicate there is substantial doubt about the Company’s ability to continue as a going concern

-Evaluating management’s plans in connection with their intent to raise additional debt financing

-GSCG business development to overcome the presumption of a going concern

Reviewing and evaluating the financial statement presentation and disclosure regarding the substantial doubt about the ability of the Company to continue as a going concern.

/s/ L J Soldinger Associates LLC
We have served as the company’s auditor since 2021.
Deer Park, Illinois
May 4, 2022
PCAOB Audit ID # 318

F-4

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Meso Numismatics, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheet of Meso Numismatics, Inc. (the Company) as of December 31, 2020, and the related statements of operations, stockholders’ deficit, and cash flows for the year ended December 31, 2020, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the year ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

F-5

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management'sManagement’s plans regarding those matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ M&K CPAS, PLLCCritical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Notes Payable

As discussed in Note 4, the Company borrows funds through the use of convertible notes payable that contain a conversion price that fluctuates with the stock price. Due to the fluctuation of the conversion price, the embedded conversion feature requires bifurcation from the host contract and is recorded as a liability subject to market adjustments as of each reporting period. Significant judgment is exercised by the Company in determining derivative liability values for these convertible note agreements, including the use of a specialist engaged by management.

We have servedevaluated management’s conclusions regarding their derivative liability and reviewed support for the significant inputs used in the valuation model, as well as assessing the Company’s auditor since 2017.model for reasonableness.

 

Houston, TXConvertible Preferred Stock

 

April 16, 2019As discussed in Note 5, the Company has issued and outstanding certain Preferred Shares that contain a fixed value and convertible into a variable number of common stock on the date of conversion. Auditing management’s evaluation of the convertible preferred shares involves significant judgements and estimates in determining the proper classification of the preferred shares that include both debt and equity qualities. To evaluate the appropriateness and accuracy of the classification of the convertible preferred shares, we evaluated management’s assessment of the debt and equity like characteristics.

 

We evaluated management’s appropriateness and accuracy of the classification of the convertible preferred shares and evaluated management’s assessment of the debt and equity like characteristics.

/s/ M&K CPAS, PLLC
We have served as the Company’s auditor since 2017.
Houston, Texas
April 12, 2021

F-2 F-6

 

 

MESO NUMISMATICS, INC.

(Formerly Pure Hospitality Solutions, Inc.)

CONSOLIDATED BALANCE SHEETS

 

  As of December 31, 
  2018  2017 
ASSETS      
       
Current assets      
Cash and restricted cash $30,834  $7,750 
Prepaid expenses and other current assets  -   109 
Total current assets  30,834   7,859 
Property and equipment, net  3,800   - 
Total assets $34,634  $7,859 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
         
Current liabilities        
Current note payable, net $812,827  $378,013 
Accrued interest  437,458   374,121 
Derivative liability  2,938,317   1,449,389 
Accounts payable and accrued liabilities  384,596   367,957 
Total current liabilities  4,573,198   2,569,480 
Total liabilities $4,573,198  $2,569,480 
         
Stockholders’ equity        
Common stock, $0.001 par value per share; 6,500,000,000 and 6,500,000,000 shares authorized; 6,503,338 shares issued and 4,901,024 outstanding for the year ended December 31, 2018, 6,499,700 shares issued and 3,743,106 outstanding for the year ended December 31, 2017, respectively  4,900   3,743 
Preferred stock, $0.001 par value per share; 1,000,000 shares authorized of which 1,000,000 designated as Series AA; 1,000,000 shares issued and outstanding for the year ended December 31, 2018 and December 31, 2017, respectively  1,000   1,000 
Preferred stock, $0.001 par value per share; 1,000,000 shares authorized of which 1,000,000 designated as Series BB; 646,184 shares issued and 444,135 shares outstanding for the year ended December 30, 2018, 495,000 shares issued and 390,061 outstanding for the year ended December 31, 2017, respectively  444   390 
Additional paid in capital  20,835,425   20,756,011 
Stock payable  -   2 
Accumulated deficit  (25,380,333)  (23,322,767)
Total stockholders’ equity  (4,538,564)  (2,561,621)
Total liabilities and stockholders’ equity $34,634  $7,859 
  As of December 31, 
  2021  2020 
ASSETS      
Current assets      
Cash and cash equivalents $2,978,525  $42,534 
Accounts receivable  17,256   - 
Prepaid expenses  24,245   - 
Total current assets  3,020,027   42,534 
Property and equipment, net  22,909   2,200 
Other assets  5,568   175,000 
Intangible assets, net  451,624   - 
Goodwill  5,805,438   - 
Total assets $9,305,566  $219,734 
         
LIABILITIES AND STOCKHOLDERS’ DEFICIT        
         
Current liabilities        
Accounts payable and accrued liabilities $250,756  $375,789 
Accrued interest  2,129,395   390,437 
Customer advances  18,215   - 
Stock payable-related party  251,536   - 
Stock payable  20,000   - 
Derivative liability  20,442   - 
Convertible notes payable, net  -   148,249 
Notes payable, net  1,527,711   - 
Total current liabilities  4,218,055   914,475 
         
Long term liabilities        
Convertible notes payable, net of current portion  33,982   14,498 
Notes payable-related parties  7,800   7,800 
Notes payable, net of current portion  11,802,736   5,608,861 
Total liabilities $16,062,573  $6,545,574 
         
Preferred stock, $0.001 par value per share; 8,000,000 shares authorized as Series CC; 1,000 shares issued 0 and 1,000 shares outstanding for the years ended December 31, 2021 and December 31, 2020, respectively  -   83,731 
         
Stockholders’ deficit        
Preferred stock, $0.001 par value per share 1,050,000 shares authorized as Series AA; 1,050,000 and 50,000 shares issued and outstanding for the years ended December 31, 2021 and December 31, 2020, respectively  1,050   50 
Preferred stock, $0.001 par value per share; 1,000,000 shares authorized as Series BB; 0 and 279,146 shares issued and outstanding for the years ended December 31, 2021 and December 31, 2020, respectively  -   279 
Preferred stock, $0.001 par value per share; 10,000 shares authorized as Series DD; 9,422 and 0 shares issued and outstanding for the years ended December 31, 2021 and December 31, 2020, respectively  10   - 
Common stock, $0.001 par value per share; 6,500,000,000 shares authorized; 13,687,439 and 12,471,910 shares issued and issuable and 12,085,125 and 10,869,596 shares outstanding for the years ended December 31, 2021 and December 31, 2020, respectively  12,086   10,870 
Additional paid in capital  39,899,491   27,364,393 
Accumulated deficit  (46,669,643)  (33,785,163)
Total stockholders’ deficit  (6,757,007)  (6,409,571)
Total liabilities and stockholders’ deficit $9,305,566  $219,734 

 

The accompanying notes are an integral part of these audited consolidated financial statements.

 


F-7

MESO NUMISMATICS, INC.

(Formerly Pure Hospitality Solutions, Inc.)

CONSOLIDATED STATEMENTS OF OPERATIONS

 

  For the Year ended
December 31,
 
  2018  2017 
Revenue $50,116  $29,241 
Cost of revenue  15,035   4,810 
Gross profit  35,081   24,431 
         
Operating expenses        
Advertising and marketing  5,727   2,719 
Professional fees  126,706   358,696 
Officer compensation  45,346   64,679 
Rent  200   - 
Investor relations  15,936   7,000 
General and administrative  

96,359

   91,979 
Total operating expenses  290,274   525,073 
         
Other income (expense)        
Interest expense  (528,398)  (383,656)
Gain (loss) on debt settlement  (3,292)  106,664 
Derivative financial instruments  (1,270,683)  398,401 
Other income 

-

   2,226 
Net loss $(2,057,566) $(377,007)
         
Net loss per common share, basic and diluted $(0.50) $(0.11)
         
Weighted average number of common shares outstanding, basic and diluted  4,088,713   3,466,878 
  For the Years Ended
December 31,
 
  2021  2020 
Revenue $475,261  $55,082 
Cost of revenue  330,013   43,954 
Gross profit  145,248   11,128 
         
Operating expenses        
Advertising and marketing  134,144   247 
Professional fees  966,974   145,624 
Officer compensation  567,932   270,581 
Depreciation and amortization expense  40,858   800 
Investor relations  100,496   12,430 
General and administrative-related party  8,116,269   - 
General and administrative  151,339   29,866 
Total operating expenses  10,078,012   459,548 
         
Other income (expense)        
Interest expense  (2,724,351)  (4,204,326)
Loss on debt settlement  -   (9,663)
Gain (loss) on derivative financial instruments  3,744   (1,233,277)
Settlement of lawsuit  (231,109)  - 
Net loss $(12,884,480) $(5,895,686)
Net loss per common share, basic and diluted $(1.12) $(0.63)
Weighted average number of common shares outstanding, basic and diluted  11,482,399   9,341,942 

 

The accompanying notes are an integral part of these audited consolidated financial statements.

 


F-8

MESO NUMISMATICS, INC.

(Formerly Pure Hospitality Solutions, Inc.)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Year Ended December 31, 2018 and 20172021

 

  Common Stock  Series AA Preferred Stock  Series BB Preferred Stock  Additional Paid In  Stock  Accumulated    
  Shares  Amount  Shares  Amount  Shares  Amount  Capital  Payable  Deficit  Total 
Balance, December 31, 2016  2,360,730  $2,361   1,000,000  $1,000   -  $-   15,415,989  $2,018,573  $(22,945,760) $(5,507,837)
Conversion of convertible debt  1,382,376   1,382   -   -   -   -   85,319   -   -   86,701 
Loss on conversion of convertible debt  -   -   -   -   -   -   (81,829)  -   -   (81,829)
Debt settlement  -   -   -   -   282,131   282   228,678   (109)  -   228,851 
Gain on debt settlement  -   -   -   -   -   -   2,018,462   (2,018,462)  -   - 
Preferred issued for acquisition  -   -   -   -   25,000   25   (20)  -   -   5 
Preferred issued as part of incentive program  -   -   -   -   82,930   83   (68)  -   -   15 
Derivative accounting adjustment  -   -   -   -   -   -   3,089,480   -   -   3,089,480 
Net loss  -   -   -   -   -   -   -   -   (377,007)  (377,007)
Balance, December 31, 2017  3,743,106  $3,743   1,000,000  $1,000   390,061  $390  $20,756,011  $2  $(23,322,767) $(2,561,621)
                                         
Conversion of convertible debt  1,154,395   1,153   -   -   -   -   29,098   -   -   30,251 
Conversion of Preferred Series BB  3,494   4   -   -   (368)  (1)  (3)  -   -   - 
Debt settlement  -   -   -   -   20,212   21   (19)  (2)  -   - 
Preferred issued as part of incentive program  -   -   -   -   34,230   34   1,788   -   -   1,822 
Gain on debt settlement  -   -   -   -   -   -   3,292   -   -   3,292 
Derivative accounting adjustment  -   -   -   -   -   -   45,258   -   -   45,258 
Rounding shares for common stock reverse stock split  

29

   -   -   -   -   -   -   -   -   - 
Net loss  -   -   -   -   -   -   -   -   (2,057,566)  (2,057,566)
Balance, December 31, 2018  4,901,024  $4,900   1,000,000  $1,000   444,135  $444  $20,835,425  $-  $(25,380,333) $(4,538,564)
  Series CC
Preferred Stock
  Series AA
Preferred Stock
  Series BB
Preferred Stock
  Series DD Preferred Stock  Common Stock  Additional
Paid In
  Accumulated    
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount  Capital  Deficit  Total 
Balance, December 31, 2020  1,000  $83,731   50,000  $50   279,146  $279   -  $-   10,869,596  $10,870  $27,364,393  $(33,785,163) $(6,409,571)
Settlement of lawsuit  -   -   -   -   -   -   -   -   1,092,866   1,093   212,016   -   213,109 
Issuance of common stock for services  -   -   -   -   -   -   -   -   122,663   123   29,877   -   30,000 
Issuance of preferred series DD for services-related party  -   -   -   -   -   -   448   1   -   -   251,535   -   251,536 
Cancellation of preferred series BB  -   -   -   -   (279,146)  (279)  -   -   -   -   279   -   - 
Cancellation of  preferred series CC-related party  (1,000)  (83,731)  -   -   -   -   -   -   -   -   -   -   - 
Issuance of preferred series AA for acquisition of Global Stem Cell Group, Inc.  -   -   1,000,000   1,000   -   -   -   -   -   -   962,866   -   963,866 
Issuance of preferred series DD for acquisition of Global Stem Cell Group, Inc.  -   -   -   -   -   -   8,974   9   -   -   5,038,567   -   5,038,576 
Imputed interest on debt  -   -   -   -   -   -   -   -   -   -   (24,186)  -   (24,186)
Fair value of warrants  -   -   -   -   -   -   -   -   -   -   6,064,144   -   6,064,144 
Net income (Loss)  -   -   -   -   -   -   -       -   -   -   (12,884,480)  (12,884,480)
Balance, December 31, 2021  -  $-   1,050,000  $1,050   -  $-   9,422  $10   12,085,125  $12,086  $39,899,491  $(46,669,643) $(6,757,006)

 

The accompanying notes are an integral part of these audited consolidated financial state.statements

 


F-9

MESO NUMISMATICS, INC.

(Formerly Pure Hospitality Solutions, Inc.)CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Year Ended December 31, 2020

  Series CC
Preferred Stock
  Series AA
Preferred Stock
  Series BB
Preferred Stock
  Common Stock  Additional
Paid In
  Accumulated    
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount  Capital  Deficit  Total 
Balance, December 31, 2019  1,000  $83,731   1,000,0000  $1,000   279,146  $279   7,960,038  $7,961  $20,524,380  $(27,889,477) $(7,355,857)
Conversion of convertible debt  -   -   -   -   -   -   2,909,558   2,909   11,833   -   14,742 
Repurchase of Preferred Series AA  -   -   (1,000,000)  (1,000)  -   -   -   -   (159,000)  -   (160,000)
Granted of Preferred Series AA for services  -   -   50,000   50   -   -   -   -   166,745   -   166,795 
Imputed interest on debt  -   -   -   -   -   -   -   -   34,237   -   34,237 
Loss on conversion of stock  -   -   -   -   -   -   -   -   9,663   -   9,663 
Derivative settlement  -   -   -   -   -   -   -   -   6,496,668   -   6,496,668 
Fair value of warrants  -   -   -   -   -   -   -   -   279,867   -   279,867 
Net income (Loss)  -   -   -   -   -   -       -   -   (5,895,686)  (5,895,686)
Balance, December 31, 2020  1,000  $83,731   50,000  $50   279,146  $279   10,869,596  $10,870  $27,364,393  $(33,785,163) $(6,409,571)

The accompanying notes are an integral part of these audited consolidated financial statements

F-10

MESO NUMISMATICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

  For the Year Ended
December 31,
 
  2018  2017 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $(2,057,566) $(377,077)
Non-cash adjustments to reconcile net loss to net cash:        
Amortization of debt discount  449,836   300,324 
Depreciation and amortization expense  200   - 
Change in derivative liabilities  1,270,683   398,401 
Shares issued for services  1,822   15 
Gain (loss) on debt settlement  3,292   106,664 
Changes in operating assets and liabilities:        
Inventory  -   - 
Prepaid expenses  109   8,443 
Accounts payable and accrued liabilities  86,894   (442,956)
CASH PROVIDED/(USED) BY OPERATING ACTIVITIES  (244,640)  (6,116)
         
CASH FLOWS FROM INVESTING ACTIVITIES        
Payment for purchase of properties and equipment  (4,000)  - 
Preferred stock issued for acquisition  -   5 
CASH PROVIDED/(USED) BY INVESTING ACTIVITIES  (4,000)  5 
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Payments on note payable  -   (50,706)
Proceeds from issuance of debt  271,724   57,919 
CASH PROVIDED/(USED) BY FINANCING ACTIVITIES  271,724   7,213 
         
Net increase (decrease) in cash  23,084   1,102 
         
Cash, beginning of year  7,750   6,648 
         
Cash, end of year $30,834  $7,750 
         
NON-CASH FINANCING ACTIVITIES:        
Debt settlements with common stock $30,251  $315,550 
Debt settlements with stock payable $20  $188,497 
Conversion of preferred stock to common stock $1  $- 
Discount issued on convertible debt $263,506  $- 
Settlement of derivative discounts $45,258  $3,089,480 
  For the Years Ended
December 31,
 
  2021  2020 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $(12,884,480) $(5,895,686)
Non-cash adjustments to reconcile net loss to net cash:        
Amortization of debt discount  893,959   1,851,882 
Depreciation and amortization expense  40,858   800 
(Gain) loss from changes in derivative liability fair values  (3,744)  1,233,277 
Common shares issued for settlement of lawsuit  213,109   - 
Common shares issued for services  30,000   - 
Preferred shares issued for services  251,536   166,795 
Loss on conversion of debt  -   9,663 
Penalty on debt  -   1,183,530 
Imputed interest on debt  34,237   34,237 
Changes in operating assets and liabilities:        
Accounts receivable  (3,250)  - 
Prepaid expenses  (24,245)  - 
Other assets  (5,568)  - 
Accounts payable and accrued liabilities  1,307,388   1,092,757 
Stock payable  271,536   - 
CASH USED BY OPERATING ACTIVITIES  (9,878,664)  (322,745)
         
CASH FLOWS FROM INVESTING ACTIVITIES        
Cash acquired in business combination  666,467   - 
Cash paid for deposit on acquisition  -   (175,000)
CASH PROVIDED/(USED) BY INVESTING ACTIVITIES  666,467   (175,000)
         

CASH FLOWS FROM FINANCING ACTIVITIES

        
Proceeds from issuance of debt  12,400,000   701,900 
Loan to non-affiliate  (250,000)  - 
Principle payment on debt  (1,812)  (25,000)
Repurchase of preferred stock  -   (160,000)
CASH PROVIDED BY FINANCING ACTIVITIES  12,148,188   516,900 
         

Net increase (decrease) in cash

  2,935,991   19,155 
 Cash, beginning of year  42,534   23,379 
         
Cash, end of year $2,978,525  $42,534 
Cash paid for income taxes $-  $- 
Cash paid for interest $208  $- 
         
NON-CASH FINANCING ACTIVITIES:        
Warrants discount issued on debt $5,703,537  $279,867 
Cancellation of preferred series BB $279  $- 
Cancellation of preferred series CC $83,731  $- 
Issuance of preferred series AA for acquisition $963,866  $- 
Issuance of preferred series DD for acquisition $5,038,576  $- 
Discount issued on convertible debt $1,200,000  $532,400 
Settlement of derivative discounts $-  $6,496,668 
Conversion of convertible debt $-  $14,742 
Debt restructure $-  $4,196,212 

 

The accompanying notes are an integral part of these audited consolidated financial statements.

 


F-11

MESO NUMISMATICS, INC.

(Formerly Pure Hospitality Solutions, Inc.)

NOTES TO CONSOLDIATED FINANCIAL STATEMENTS

December 31, 20182021

 

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Nature of Business

 

Meso Numismatics, Inc. (the “Company”) was originally organized under the laws of Washington State in 1999, as Spectrum Ventures, LLC to develop market and sell VOIP (Voice Overover Internet Protocol) services. In 2002, the Company changed its name to Nxtech Wireless Cable Systems, Inc. In August 2007, the Company changed its name to Oriens Travel & Hotel Management Corp. In November 2014, the Company changed its name to Pure Hospitality Solutions, Inc.

 

On November 16, 2016, the Company entered into an Agreement and Plan of Merger between the Company and Meso Numismatics Corp. (“Meso”). The acquisition of Meso is to support the Company’s overall mission of specializing in ventures related to Central America and the Latin countries of the Caribbean; not limited to tourism. Meso is a small but scalable numismatics operation that the Company can leverage for low cost revenues and product marketing.

 

Meso Numismatics, Inc. maintains an online store with eBay (www.mesocoins.com)(www.mesocoins.com) and participates in live auctions with major companies such as Heritage Auctions, Stacks Bowers Auctions and Lyn Knight Auctions.

 

The acquisition was complete on August 4, 2017 following the Company issuance of 25,000 shares of Series BB preferred stock to Meso to acquire one hundred (100%) percent of Meso’s common stock. The Company accounted for the acquisition as common control, as Melvin Pereira, the CEO and principal shareholder of the Company controls, operatescontrolled, operated and ownsowned both companies. On November 16, 2016, the date of the Merger Agreement and June 30, 2017, the date of the Debt Settlement Agreement, Melvin Pereira, CEO of Pure Hospitality Solutions, owned 100% of the stock of Meso Numismatics.Numismatics, Inc. Pure Hospitality Solutions, Inc. and Meso Numismatics, Inc. first came under common control on June 30, 2017.

 

On September 4, 2017, the Company decided to suspend its booking operations, Oveedia, to focus on continuing to build its numismatic business, Meso Numismatics. Inc. The Company did, however, use its footprint within the Latin American region to expand Meso Numismatics, Inc. at a much quicker rate.

 

In September 2018, the Company changed its name to Meso Numismatics, Inc. and was approved by FINRA provided a market effective date and on September 26, 2018, the new ticker symbol MSSV became effective on October 16, 2018.

 

On July 2, 2018, the Board of Directors authorized and shareholders approved a 1 for 1,0001-for-1,000 reverse stock split of its issued and outstanding shares of common stock held by the holders of record. The prior year financials have been changed to reflect the 1 for 1,0001-for-1,000 reverse stock split.

 


On November 27, 2019, Meso Numismatics, Inc. entered into an Assignment and Assumption Agreement with Lans Holdings Inc., whereby Lans Holdings Inc. assigned all of its rights to, obligations and interest in a Binding Letter of Intent entered into on May 23, 2019 with Global Stem Cells Group Inc. and Benito Nova, setting forth the principal terms pursuant to which the Company will acquire 50,000,000 shares of common stock of Global Stem Cells Group Inc.

In consideration for the Assignment, Meso Numismatics, Inc. shall:

Assume certain Convertible Redeemable Notes issued by Lans Holdings Inc. to a lender, pursuant to the Assignment and Assumption Agreement and subject to any pre-existing defaults under the Notes, Meso Numismatics, Inc. reissued an aggregate of $1,079,626 of Convertible Redeemable Notes to the lender which bear interest at a rate varying from ten (10%) to fifteen (15%) percent, and have a one (1) year maturity date.

Issue to Lans Holdings Inc. 1,000 shares of its Series CC Convertible Preferred Stock valued at $83,731 calculated based on conversion provision of the Company’s Articles of Incorporation filed with the Secretary of State in Nevada on November 26, 2019. Shareholders of outstanding shares of Series CC Convertible Preferred Stock shall be entitled to convert part or all of its shares of Series CC Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock at a price per share determined by dividing the number of issued and outstanding shares of stock of the Company on the date of conversion by 1,000 and multiply the results by 0.8 conversion price.

F-12

The consideration for the assignment of $1,163,357, consisting of an aggregate of $1,079,626 of Convertible Redeemable Notes assumed from Lans Holdings Inc. and 1,000 shares of its Series CC Convertible Preferred Stock valued at $83,731 issued to Lans Holdings Inc was recorded as compensation expense.

On November 27, 2019, and in connection with the execution of the Assignment, the Company’s Board of Directors appointed Mr. David Christensen, former director and CEO of Lans Holdings Inc., to serve as director and president of the Company.

On December 23, 2019, Meso Numismatics, Inc. entered into the Post Closing Amendment to the Assignment and Assumption Agreement originally entered into on November 27, 2019 with Global Stem Cells Group Inc., Benito Novas, and Lans Holdings Inc., whereby the Original Agreement is amended to extend the deadline to enter into the New LOI to 120 days from the execution of the Post Closing Amendment and option to receive Series CC Convertible Preferred Stock granted to Lans Holdings Inc. has been extended to 120 days from the execution of the Post Closing Amendment.

On April 22, 2020, Meso Numismatics, Inc. entered into a Second Post Closing Amendment to the Assignment and Assumption Agreement originally entered into on November 27, 2019 with Global Stem Cells Group Inc., Benito Novas, and Lans Holdings Inc., which Assignment was first amended pursuant to the Post Closing Amendment to the Assignment and Assumption Agreement entered into on December 23, 2019. The Original Agreement is amended to extend the deadline to enter into the New LOI to 150 days from the execution of the Second Amendment and option to receive Series CC Convertible Preferred Stock granted to Lans Holdings Inc. has been extended to 150 days from the execution of the Second Amendment.

On June 25, 2020, Mr. Martin Chuah submitted his resignation as Director of the Company, effective June 26, 2020. There are no disagreements between Mr. Chuah and Meso Numismatics, Inc. on any matter relating to its operations, policies or practices.

On June 26, 2020, Meso Numismatics, Inc. completed the repurchase of 1,000,000 shares of its Series AA (“Series AA”) Super Voting Preferred Stock, representing all of the Series AA shares held by E-Network de Costa Rica S.A. and S&M Chuah Enterprises Ltd., respectively.

On June 26, 2020, Mr. Melvin Pereira submitted his resignation as Chief Executive Officer, Chief Financial Officer, Secretary and Director of Meso Numismatics, Inc., effective June 26, 2020. There are no disagreements between Mr. Pereira and Meso Numismatics, Inc. on any matter relating to its operations, policies or practices.

On June 26, 2020, due to Mr. Pereira’s resignation, Meso Numismatics, Inc.’s Board of Directors appointed Mr. David Christensen, current Director and President of the Company, to serve as Chief Executive Officer, Chief Financial Officer and Secretary, effective June 27, 2020 and granted 50,000 shares of Series AA to Mr. David Christensen.

On September 16, 2020, Meso Numismatics, Inc. entered into a Third Post Closing Amendment to the Assignment and Assumption Agreement originally entered into on November 27, 2019 with Global Stem Cells Group Inc., Benito Novas, and Lans Holdings Inc., which Assignment was first amended pursuant to the Post Closing Amendment to the Assignment and Assumption Agreement entered into on December 23, 2019. The Original Agreement is amended to extend the deadline to enter into the New LOI to 180 days from the execution of the Third Amendment and option to receive Series CC Convertible Preferred Stock granted to Lans Holdings Inc. has been extended to 180 days from the execution of the Third Amendment.

On March 12, 2021, Meso Numismatics, Inc. entered into a Fourth Post Closing Amendment to the Assignment and Assumption Agreement originally entered into on November 27, 2019 with Global Stem Cells Group Inc., Benito Novas, and Lans Holdings Inc., which Assignment was first amended pursuant to the Post Closing Amendment to the Assignment and Assumption Agreement entered into on December 23, 2019. The Original Agreement is amended to extend the deadline to enter into the New LOI to 90 days from the execution of the Fourth Amendment and option to receive Series CC Convertible Preferred Stock granted to Lans Holdings Inc. has been extended to 90 days from the execution of the Fourth Amendment.

F-13

On June 22, 2021, Meso Numismatics, Inc. entered into a Fifth Post Closing Amendment to the Assignment and Assumption Agreement originally entered into on November 27, 2019 with Global Stem Cells Group Inc., Benito Novas, and Lans Holdings Inc.

1.Pursuant to the terms of the Fifth Post Closing Amendment, and as full and total consideration for the Assignment and Assumption Agreement and in addition to the assumption of the New LOI and the assumption of the Assigned Debt (both terms as defined in the Assignment and Assumption Agreement ), the option granted to Lans Holdings Inc. pertaining to the issuance of the Company’s Series CC Convertible Preferred Stock was terminated and replaced with a cash payment as consideration, upon the following terms:

a.The Company shall pay Lans Holdings Inc., by delivery in escrow, an amount equal to USD $8,200,000, which Cash Payment shall be used by Lans Holdings Inc. for the repurchase of Lans Holdings shares of common stock from the Lans common shareholders.

On June 22, 2021, the Company entered into a stock purchase agreement with Global Stem Cells Group Inc and Benito Novas. Pursuant to the terms of the stock purchase agreement, the Company shall acquire 50,000,000 shares of common stock of Global Stem Cells Group Inc., representing all of the outstanding shares of Global Stem Cells Group Inc, from Benito Novas in exchange for the following:

a.1,000,000 shares of the Company’s Series AA Super Voting Preferred Stock;

b.8,974 shares of the Company’s Series DD Convertible Preferred Stock; and

c.An amount equal to USD $50,000 being the balance owing to Benito Novas pursuant to the terms of the New LOI and Assignment.

The closing of the stock purchase agreement shall occur no later than August 18, 2021.

On June 22, 2021, Meso Numismatics, Inc. entered into a Secured Loan Agreement with an otherwise unaffiliated third-party investor, pursuant to which Meso Numismatics, Inc. agreed to issue to the Investor a $11,600,000 face value Senior Secured Promissory Note with a $1,100,000 original issue discount, and a three year Common Stock Purchase Warrant to acquire up to 70,000,000 shares of our common stock at an exercise price of $0.10 per share, subject to adjustments.

On August 18, 2021, Meso Numismatics, Inc., completed its acquisition of Global Stem Cells Group Inc., through a Stock Purchase Agreement acquiring all the outstanding capital stock of Global Stem Cells Group Inc and paid the purchase price of a total of 1,000,000 shares of Series AA Preferred Stock in the Company, 8,974 shares of Series DD Preferred Stock in the Company and $225,000 USD (the final payment of $50,000 was made on July 2, 2021).

Pursuant to the terms of the Fifth Post Closing Amendment along with the completion of the acquisition of Global Stem Cells Group Inc., the issuance of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock to Lans Holdings Inc. was terminated and replaced with a cash payment as consideration. The Company shall pay Lans Holdings Inc., by delivery in escrow, an amount equal to USD $8,200,000, which Cash Payment shall be used by Lans Holdings Inc. for the repurchase of all of its shares of common stock from its common shareholders. The company paid on November 3, 2021 the USD $8,200,000 in cash to an escrow account set up by Lans Holdings Inc.. The $8.2 million was expensed in the income statement as General and Administrative Expense – Related Party for the year ending December 31, 2021.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation and Basis of Presentation

The audited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, E-Network de Costa Rica MA SA andPure Hospitality Solutions, Inc. Meso Numismatics, Corp. and Global Stem Cells Group Inc. (since August 18, 2021). All significant intercompany transactions have been eliminated.eliminated in consolidation.

 

Use of Estimates in Financial Statement Presentation

 

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates included in these financial statements are associated with accounting for the derivative liability, valuation of preferred stock, and for the valuation of assets and liabilities in business combination.

 

F-14

Reclassifications

Certain amounts for the prior year have been revised or reclassified to conform to the current year presentation. No change in net loss resulted from these reclassifications.

Cash and Cash Equivalents

 

The Company considers all highly liquid accounts with original maturities of three months or less to be cash equivalents. At December 31, 20182021 and 2017,December 31, 2020, all of the Company’s cash was deposited in major banking institutions. There were no cash equivalents as of December 31, 20182021 and 2017.December 31, 2020. Our cash balances at financial institutions may exceed the Federal Deposit Insurance Company’s (FDIC) insured limit of $250,000 from time to time.

 

InventoryAccounts Receivable

 

Accounts receivable are recorded at original invoice amount less an allowance for uncollectible accounts that management believes will be adequate to absorb estimated losses on existing balances. Management estimates the allowance based on collectability of accounts receivable and prior bad debt experience. Accounts receivable balances are written off against the allowance upon management’s determination that such accounts are uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Management believes that credit risks on accounts receivable will not be material to the financial position of the Company or results of operations. The Company’s inventory is comprised of roughly 50% coins / medalsallowance for doubtful accounts was $0 and 50% paper money. The Company has a meticulous process for the acquisition and sales process for each coin item. The Company specializes in coins from the Meso region, but also acquires coins and medals from elsewhere around the world

As$0 as of December 31, 2018,2021 and December 31, 2020, respectively.

Intangible Assets

Intangible assets with finite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are not amortized, but are tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment was recognized for the year ended December 31, 2021.

Goodwill

Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If the Company concludes otherwise, the Company is working on an inventory tracking systemrequired to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by serial number. Until such timecomparing the inventory costs cannot be properly confirmed, thereforeestimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than the carrying value, further analysis is necessary to determine the amount of impairment, if any, inventory balances are expensed during eachby comparing the implied fair value of the reporting period.unit’s goodwill to the carrying value of the reporting unit’s goodwill.

Derivative Instruments

 

The derivative instruments are accounted for as liabilities, the derivative instrument is initially recorded at its fair market value and is then re-valued at each reporting date, with changes in fair value recognized in operations for each reporting period. The Company uses the Binomial option pricing model to value the derivative instruments.

Revenue Recognition

 

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial salessale of products by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods,

F-15

The Company’s main sources of revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectabilitycomprised of the fee is reasonably assured. following:

Training-GSCG offers a Stem Cell & Exosomes Certification Program where physicians attending this training sessions will take advantage of a full review of stem cell biology, characterization and regenerative properties of cells and cell products, cytokines and growth factors and how can be apply in the clinic. The physicians will pay for the training sessions upfront and receives all the material and certificate upon completion of seminar which is when revenue is recognized by GSCG.

Products-Physicians can order SVF Kits through GSCG which includes EC Certificate from Institute for Testing and Certificating, Inc. SVT Kits are paid for upfront and shipped from third party directly to physicians. Revenue is recognized by GSCG when product is shipped.

Equipment- Physicians can order equipment through GSCG which includes warranty from manufacture of equipment. Equipment is paid for upfront and shipped from manufacture directly to physicians. Revenue is recognized by GSCG when product is shipped.

Rare coins and banknotes-MESO acquires rare coins and banknotes from Latin America at reduced costs and sales through its website and auctions.

The Company recognizes revenues and the related costsrevenue when persuasive evidence of an arrangement exists, delivery and acceptance has occurred, or service has been rendered, the priceit satisfies a performance obligation by transferring control over a product to a customer. Revenue is fixed or determinable, and collection of the resulting receivable is reasonably assured. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for sales returns, bad debts, and other allowancesmeasured based on its historical experience.the consideration the Company receives in exchange for those products.

The Company acquires rare coins from Latin America at reduced costs then sends to Numismatic Guaranty Corporation for authentication and grading. Once graded, the inventory is sent to Meso’s Florida-based location to then be sent around the world to one of the Company’s many customers with sales recorded net of fees.

Income Taxes

 

The Company uses the liability method to record income tax activity. Deferred taxes are determined based upon the estimated future tax effects of differences between the financial reporting and tax reporting bases of assets and liabilities, given the provisions of currently enacted tax laws.

 


The accounting for uncertainty in income taxes recognized in an enterprise’s financial statements uses the threshold of more-likely-than-not to be sustained upon examination for inclusion or exclusion. Measurement of the tax uncertainty occurs if the recognition threshold has been met.

Net Earnings (Losses) Per Common Share

 

The Company computesaccounts for net loss per share in accordance with Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”), which requires presentation of basic and diluted earnings (loss) per share (“EPS”) on the face of the statement of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS.

Basic net loss per share is computed by dividing net earnings (loss)loss by the weighted average number of shares of common stock andoutstanding during each period. It excludes the dilutive effects of any potentially issuable common shares. The effect of common stock equivalents outstanding duringis anti-dilutive with respect to losses and therefore basic and dilutive is the year. Dilutive common stock equivalents may consist of shares issuable upon conversion of convertible preferred shares and the exercise of the Company’s stock options (calculated using the treasury stock method). Common stock issuable is considered outstanding as of the original approval date for purposes of earningssame

Diluted net loss per share computations.is calculated by including any potentially dilutive share issuances in the denominator. The following securities are excluded from the calculation of weighted average diluted shares at December 31, 2021 and 2020, respectively, because their inclusion would have been anti-dilutive.

 

  For the Years Ended
December 31,
 
  2021  2020 
Convertible notes outstanding  75,710   455,297,705 
Convertible preferred stock outstanding  37,647,060   4,651,726 
Shares underlying warrants outstanding  103,500,000   - 
   141,222,770   459,949,431 

F-16

Fair Value of Financial Instruments

 

The fair value of financial instruments, which include cash, accounts payable and accrued expenses and advances from related parties were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Management is of the opinion that the Company is not exposed to significant interest, currency or credit risks arising from financial instruments.

 

Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy which prioritizes the inputs used in the valuation methodologies is as follows:

 

Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

 

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

 

Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

 

At December 31, 20182021 and 2017,December 31, 2020, the carrying amounts of the Company’s financial instruments, including cash, accountsaccount payables, and accrued expenses, approximate their respective fair value due to the short-term nature of these instruments.

 

At December 31, 20182021 and 2017,December 31, 2020, the Company does not have any assets or liabilities except for derivative liabilitiesconvertible notes payable required to be measured at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement.

 

The following presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on non-recurring basis as of December 31, 20182021 and 2017:December 31, 2020:

 

  Level 1  Level 2  Level 3  Total 
December 31, 2018            
Convertible Notes Payable, net of discount $812,827  $-  $-  $812,827 
Derivative Liability  2,938,317   -   -   2,938,317 
Total $3,751,144  $-  $-  $3,751,144 
                 
December 31, 2017                
Convertible Notes Payable, net of discount $378,013  $-  $-  $378,013 
Derivative Liability  1,449,389   -   -   1,449,389 
Total $1,827,402  $-  $-  $1,827,402 
  Level 1  Level 2  Level 3  Total 
December 31, 2021            
Derivative liability                                20,442   20,442 
Total $-  $-  $20,442  $20,442 
                 
December 31, 2020                
Total $-  $-  $-  $- 

 

Comprehensive Income

 

The Company records comprehensive income as the change in equity of a business during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. As of December 31, 20182021 and December 31, 2017,2020, the Company had no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.


Stock Based Compensation

 

Stock basedShare-based compensation costs areissued to employees is measured at fair valuethe grant date, based on date of grant and recognition of compensation over the service period for awards expected to vest. The Company determines the fair value of awardsthe award, and is recognized as an expense over the requisite service period. The Company measures the fair value of the share-based compensation issued to non-employees at the grant date using the Black - Scholes valuation model.stock price observed in the trading market (for stock transactions) or the fair value of the award (for non-stock transactions), which were considered to be more reliably determinable measures of fair value than the value of the services being rendered.

 

F-17

New Accounting Pronouncements

 

In May 2014, ASU 2014-09 wasMarch 2020, the FASB issued relatedoptional guidance to revenue fromease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, with customers.hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The ASU was furtheroptional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements. The Company is progressing in its evaluation of LIBOR cessation exposures, including the review of debt-related contracts, leases, business development and licensing arrangements, royalty and other agreements. The Company has amended certain agreements and continues to review other agreements for potential impacts. With regard to debt-related exposures in August 2015, March 2016, April 2016, and May 2016 by ASU 2015-14, 2016-08, 2016-10 and 2016-particular, all existing interest rate swaps linked to LIBOR will mature in 2022. The Company is still evaluating the impact to its LIBOR-based debt. Based on its evaluation thus far, the Company does not anticipate a material impact to its consolidated financial statements as a result of reference rate reform.

 

In August 2015,October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective date was deferredfor interim and annual periods in 2023 and is to reporting periods, including interim periods, beginning after December 31, 2017, and will be applied retrospectively.prospectively. Early adoption is not permitted.

Since ASU 2014-09 was issued, several additional ASUs have been issuedpermitted on a retrospective basis to clarify various elementsthe beginning of the guidance. These standards providefiscal year of adoption. The adoption of this guidance on recognized revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Effective January 1, 2018, the Company will adopt ASU 2014-09, “Revenue from Contracts with Customers”. The results of operations for the reported periods after January 1, 2018 will be presented under this amended guidance, while prior period amounts are reported in accordance with ASC 605-Revenue Recognition.

The Company has completed its assessment of the impact of the new revenue standard on the Company’s financial position, results of operations, or cash flows and believes the new standard will not have a material impact.impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.

In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company has adoptedguidance requires annual disclosures of such transactions to include the standard using the modified retrospective method of adoption. The Company’s revenue arises from contracts with customers in which the sale of coins is the single performance obligation under the customer contract. Accordingly, revenue will continue to be recognized at a point in time when controlnature of the asset is transferredtransactions and the significant terms and conditions, the accounting treatment and the impact to the customer, whichcompany’s financial statements. The guidance is generally consistent with the Company’s current accounting policies. No material changes have been noted for use in implementation of this standard.

ASU 2014-09 provides presentation and disclosure requirements which are more detailed than under current GAAP.

In February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement.

The ASU will be effective for annual and interim periods beginning January 1, 2019, with early adoption permitted,in 2022 and is applicableto be applied on either a modifiedprospective or retrospective basis with various optional practical expedients.basis. The Company is assessingcurrently evaluating the impact of this standard.

The Company reviews new accounting standards as issued. No new standards had any material effectadoption on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on theseits consolidated financial statements. Management does

Other accounting standards and amendments to existing accounting standards that have been issued and have future effective dates are not believe any of the subsequent pronouncements willapplicable or are not expected to have a material effectsignificant impact on thesethe Company’s consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to December 31, 2018 through the date these financial statements were issued.

 


Going Concern

The financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since inception, resulting in an accumulated deficit of approximately $25,380,333$47 million and negativea working capital deficit of $4,542,364$1,200,000 as of December 31, 20182021 and future losses are anticipated. These factors, among others, generally tend to raise substantial doubt about the Company’s ability to continue as a going concern as to its ability to obtain additional long-term debt or equity financing in order to have the necessary resources to further design, develop and launch the website and market the Company’s new service.concern.

 

In orderThe ability of the Company to continue its operations as a going concern is dependent on management’s plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements.

The Company will require additional funding to finance the growth of its current and expected future operations as well to achieve its strategic objectives. There can be no assurance that financing will be available in amounts or terms acceptable to the Company, needs to develop a reliable source of revenues, and achieve a profitable level of operations in the future and/or to obtain the necessary financing to meet its obligations arising from normal business operations when they come due.

To fund basic operations for the next twelve months, the Company projects a need for $750,000 that will have to be raised through debt or equity. In addition to the estimated $300,000 for operating expenses the Company is budgeting $180,000 for advertising and marketing and $90,000 for new technology. To attract more customers to Meso Numismatics, the Company plans on hiring an advertising firm and placing more ads on sites such as NGC and PMG. Along with the advertising program the Company plans on investing in upgrading and expanding the Meso App. To continue expanding sales the Company plans to invest $90,000 to acquire additional inventory along with exploring possible acquisitions, which the Company estimates it will need approximately $100,000.

Accordingly, the auditedif at all. The accompanying financial statements are accounted for as if the Company ishave been prepared on a going concern basis, which contemplates the realization of assets and doesthe satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recoverability andrecovery of the recorded assets or the classification of recorded asset amounts or the amount and classification of liabilities or other adjustments that might be necessary should bethe Company be unable to continue as a going concern.

Business Combinations

F-18

NOTE 3 – REVENUE RECOGNITION

 

In the third quarter of 2017,On January 1, 2018, the Company issued 25,000 Series BB Preferred Stock peradopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the termsASU (collectively, “ASC 606”), the Company recognizes revenue from the sales of products, by applying the following steps:

(1)Identify the contract with a customer

(2)Identify the performance obligations in the contract

(3)Determine the transaction price

(4)Allocate the transaction price to each performance obligation in the contract

(5)Recognize revenue when each performance obligation is satisfied

There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the years ended December 31, 2021 and December 31, 2020.

The Company’s main source of revenue is comprised of the June 30, 2017 Debt Settlement Agreement to complete the acquisition of Meso Numismatics, fully satisfying the Merger Agreement, which was first entered into on November 16, 2016. following:

Training-GSCG offers a Stem Cell & Exosomes Certification Program where physicians attending this training sessions will take advantage of a full review of stem cell biology, characterization and regenerative properties of cells and cell products, cytokines and growth factors and how can be apply in the clinic. The physicians will pay for the training sessions upfront and receives all the material and certificate upon completion of seminar which is when revenue is recognized by GSCG.
Products-Physicians can order SVF Kits through GSCG which includes EC Certificate from Institute for Testing and Certificating, Inc. SVT Kits are paid for upfront and shipped from third party directly to physicians. Revenue is recognized by GSCG when product is shipped.
Equipment- Physicians can order equipment through GSCG which includes warranty from manufacture of equipment. Equipment is paid for upfront and shipped from manufacture directly to physicians. Revenue is recognized by GSCG when product is shipped.

Rare coins and banknotes-MESO acquires rare coins and banknotes from Latin America at reduced costs and sales through its website and auctions.

The Company accountedrecognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. Revenue is measured based on the consideration the Company receives in exchange for those products.

The following table presents the Company’s revenue by product category for the acquisition as common control, as Melvin Pereira,years ended December 31, 2021 and 2020:

  For the Years Ended
December 31,
 
  2021  2020 
Coins and banknotes $37,374  $55,082 
Training  112,970   - 
Product supplies  209,706   - 
Equipment  115,210   - 
Total revenue $475,261  $55,082 

F-19

Listed below are the CEOrevenues, cost of revenues, gross profits, assets and principal shareholdernet loss by Company:

  For the Year Ended
December 31, 2021
 
  Global Stem
Cells Group
  Meso
Numismatics
  Total 
Revenue $437,887  $37,374  $475,261 
Cost of revenue  287,750   42,263   330,013 
Gross profit $150,137  $(4,889) $145,248 
Gross Profit %  34.29%  -13.08%  30.56%
             
Assets $8,026,166  $1,279,400  $9,305,566 
Net loss $(12,451,078) $(433,402) $(12,884,480)

COVID-19

In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which has and is continuing to spread throughout China and other parts of the Company controls, operates and owns both companies.world, including the United States. On November 16, 2016,January 30, 2020, the dateWorld Health Organization declared the outbreak of the Merger Agreementcoronavirus disease (COVID-19) a “Public Health Emergency of International Concern.” On January 31, 2020, U.S. Health and June 30, 2017,Human Services Secretary Alex M. Azar II declared a public health emergency for the dateUnited States to aid the U.S. healthcare community in responding to COVID-19, and on March 11, 2020 the World Health Organization characterized the outbreak as a “pandemic”. The significant outbreak of the Debt Settlement Agreement Melvin Pereira, CEOCOVID-19 has resulted in a widespread health crisis adversely affecting our 2021 and 2020 business, results of Pure Hospitality Solutions, owned 100% of the stock of Meso Numismatics. Pure Hospitality Solutions, Inc.operations and Meso Numismatics first came under common control on June 30, 2017.

financial condition.

 

The outbreak of COVID-19 has resulted in a widespread health crisis that adversely affected the economies and financial markets in which we operate. Restrictions in travel along with in person meetings limited our training of new customers along with selling them products and equipment.

NOTE 34 – NOTES PAYABLE

 

Convertible Notes Payable

 

During 2003 through 2016,2019, the Company entered into an aggregate of $387,980 Convertible Debentures with two lenders which bear interest from eight (8%) percent to fifteen (15%) percent and have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. During 2019, the two lenders had advanced a total of $354,870, net of discount and attorney fees, in the amount of $33,110 to the Company. On May 19, 2020, the Company issued 802,525 shares of common stock in conversion of $3,290 convertible notes payable at conversion price of $0.0041: a loss of $3,378 was recorded. On July 15, 2020, the Company issued 905,929 shares of common stock in conversion of $4,122 convertible notes payable at conversion price of $0.00455: no loss was recorded. On November 30, 2020, the Company issued 791,104 shares of common stock in conversion of $4,747 convertible notes payable at conversion price of $0.0070: a loss of $2,034 was recorded. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

On November 25, 2019, Meso Numismatics, Inc. pursuant to the certificate of designation of the Series BB Preferred Stock, elected to exchange the preferred shares for other indebtedness calculated at a price per share equal to $1.20. Upon the Company’s mailing of the Exchange Agreement, the shareholder had the option, within 30 days of such mailing date and subject to the execution of this Agreement to receive the Indebtedness in the form of a convertible note. If the shareholder did not give the Meso Numismatics, Inc. notice the Indebtedness shall automatically was issued in the form of a promissory note. The convertible note agreements bear no interest and have a four (4) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the investors’ sole discretion, into shares of common stock at conversion price equal to the lowest bid price of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange for the three prior trading days including the day upon which a Notice of Conversion is received by the Company. As of December 31, 2019, 81,043 Preferred Series BB shares were exchange for an aggregate of $97,252 convertible notes. During the years ending December 31, 2021 and December 31, 2020, the Company made $0.00 and $25,000, respectively of payments on the outstanding convertible notes. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $72,252.

F-20

On November 27, 2019, Meso Numismatics, Inc. entered into an Assignment and Assumption Agreement with Lans Holdings Inc., whereby Lans Holdings Inc. assigned all of its rights to, obligations and interest in a Binding Letter of Intent entered into on May 23, 2019 with Global Stem Cells Group Inc. and Benito Nova, setting forth the principal terms pursuant to which the Company will acquire 50,000,000 shares of common stock of Global Stem Cells Group Inc. to Meso Numismatics, Inc. for assumption of certain Convertible Redeemable Notes issued by Lans holdings Inc. to lenders pursuant to a securities purchase agreement.

Pursuant to the Assignment and Assumption Agreement and subject to any pre-existing defaults under the Notes, Meso Numismatics, Inc. reissued the below Notes to a lender upon the following terms:

Original Date of Note Note Date Maturity  Date Principal
Face Amount
of Note
  Interest  Rate 
12/12/2016 11/27/2019 11/27/2020 $239,196.00   10%
12/15/2016 11/27/2019 11/27/2020  291,930.00   12% 
5/16/2019 11/27/2019 11/27/2020  83,000.00   15% 
6/28/2019 11/27/2019 11/27/2020  191,000.00   15% 
7/15/2019 11/27/2019 11/27/2020  84,500.00   15% 
8/2/2019 11/27/2019 11/27/2020  98,000.00   15% 
9/17/2019 11/27/2019 11/27/2020  92,000.00   15% 
      $1,079,626.00     

During the period ended March 31, 2020 and December 31, 2019, the lender converted $4,676 of principal into common stock resulting into a balance of $1,074,950. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

From January 28, 2020 to March 30, 2020, the Company entered into an aggregate of $58,410 of Convertible Debentures with a lender which bear interest of eight (8%) percent and have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. The lender had advanced a total of $52,600, net of discount and attorney fees, in the amount of $5,810 to the Company. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

From April 30, 2020 to June 24, 2020, the Company entered into an aggregate of $109,020 of Convertible Debentures with a lender which bear interest at eight (8%) percent and have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. The lender had advanced a total of $93,300, net of discount in the amount of $15,720 to the Company. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

From May 4, 2020 to June 1, 2020, the Company entered into an aggregate of $146,200 of Convertible Debentures with a lender which bear interest at fifteen (15%) percent and have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. The lender had advanced a total of $132,000, net of discount in the amount of $14,200 to the Company. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

On June 25, 2020, the Company entered into a seriesConvertible Debentures with a lender in the amount of convertible debentures,$60,000 which bear interest at fifteen (15%) percent and have a rate varying from 0one (1) year maturity date. The note may be repaid in whole or in part at any time prior to 10 percent, due on an annual basis. Anymaturity. There are no shares of common stock issuable upon the execution of the promissory note. The note is convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. The lender had advanced a total of $54,000, net of discount in the amount of $6,000 to the Company. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

F-21

On July 17, 2020, the Company entered into a Convertible Debentures with a lender in the amount of $238,095 which is not paid when due shall bear interest at 0eight (8%) percent and have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to 10 percent until paidmaturity. There are no shares of common stock issuable upon the execution of the promissory notes. The notes are convertible, at the lenders’ sole discretion, into shares of common stock at variable conversion prices. The lender had advanced a total of $195,000, net of discount in full.the amount of $43,095 to the Company. On December 7, 2020, the parties agreed to terminate the convertible promissory notes and accrued but unpaid interest in favor of new secured promissory notes and warrants to purchase shares of our common stock. As of December 31, 2021 and December 31, 2020, the convertible promissory notes had an outstanding balance of $0.

 


It should be noted, that throughout 2014On December 7, 2020, the Company signed Debt Restructure Agreements to restructure the debt obligations with three separate lenders.  The three lenders all had outstanding convertible promissory notes with our company in the aggregate principal amount plus default penalty and 2015, these particularaccrued but unpaid interest of $5,379,624, and the parties have agreed to terminate the old convertible promissory notes in favor of new secured promissory notes and warrants to purchase shares of our common stock.  The Company agreed to the new notes and warrants over the prior convertible notes payable have been partitioned and sold in portions to multiple third parties in a combined amount totaling in excess of $450,000. Inbecause the majority of cases, these convertibleold notes payable, because they were in default were subjectand contained unfavorable terms on conversions. The new notes extended the maturity date, are not convertible into our common shares, but instead secure the debt obligations with our assets.  The new notes have a maturity date of December 7, 2023 and an aggregate principal amount of $5,379,624 and, as an incentive; we have issued cashless warrants to term adjustmentspurchase 15,000,000 shares of our common stock at the note holders’ request. Thus, when the convertible notes payable were purchased, the new debt holders (generally) negotiated new termsan exercise price of $0.03 per share in connection with the Company. To this end, the Company would issue new notes, referred to as “replacement notes,” which more often resulted in slightly better terms.

restructuring.

 

These debentures arewere convertible, at the investors’ sole option, into common shares at the following terms:

 

a 50 percent discount to the lowest closing bid price during the 10 days immediately preceding the conversion date as reported on the National Quotations Bureau OTCQB exchange;
a 50 percent discount to the average of the three lowest traded price during the 20 days immediately preceding the conversion date as quoted by Bloomberg LP;
either (i) a 50 percent discount to the lowest closing bid price during the 10 days immediately preceding the conversion date as reported on the National Quotations Bureau OTCQB exchange or (ii) a fixed conversion price of $0.00005 per share during any time whereby the current day market price is at or greater than $0.01;

a 50 percent discount to the average of the lowest traded price during the 20 days immediately preceding the conversion date as quoted by Bloomberg LP;

a 50 percent discount to the lowest closing bid price during the 25 days immediately preceding the conversion date as reported on the National Quotations Bureau OTCQB exchange

a 40 percent discount to the average of the three lowest traded price during the 20 days immediately preceding the conversion date as quoted by Bloomberg LP; or

either (i) a 40 percent discount to the 10 days average daily trading price immediately preceding the conversion date, or (ii) at a fixed conversion price of $0.001 per share during any time whereby the current day market price is at or less than $0.075.

 

The balance of the convertible notes as of December 31, 2021 and December 31, 2020 is as follows:

  December 31,  December 31, 
  2021  2020 
Convertible notes payable $72,252  $220,499 
Less: Discount  38,270   57,752 
Convertible notes payable, net $33,982  $162,747 

F-22

During the periods ending December 31, 20182021 and 2017December 31, 2020 the Company received $63,000$0.00 and $12,274, respectively, in advances on existing convertible notes and $208,724 and $45,645,$526,900, respectively, from funding on new convertible notes.

During the periods ending December 31, 2021 and December 31, 2020, the Company incurred $0.00 and $9,663 losses on the conversion of convertible notes, respectively. In connection with the convertible notes, the Company recorded $14,760 and $293,568, respectively of interest expense and $19,482 and $1,842,103, respectively of debt discount amortization expense. As of December 31, 2021 and December 31, 2020, the Company had approximately $251,144 and $328,876, respectively of accrued interest.

 

From 2016 to present,During the periods ending December 31, 2021 and December 31, 2020, the Company hasmade $0.00 and $25,000, respectively of payments on the outstanding convertible notes, and converted $0.00 and $14,742, respectively, of principal and interest into 0.00 and 2,909,558 shares of common stock. At December 7, 2020 the Company exchanged $5,379,624 of principal and accrued but unpaid interest on convertible notes for $5,379,624 promissory notes and cashless warrants to purchase 15,000,000 shares of our common stock. As of December 31, 2021 and December 31, 2020, the principal balance of outstanding convertible notes payable was $72,252 and $220,499, respectively.

Promissory Notes Payable

During 2015, the Company entered into Convertible Debenturesline of credit with Union Capital LLC.Digital Arts Media Network treated as a promissory note. The promissory note agreements bearsbear interest at eight (8%ten (10%) percent, hasand have a one (1) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. There are no shares of common sharesstock issuable upon the execution of the promissory notes. The notes are convertible, at the investor’s sole discretion, into common shares at variable conversion prices. As of December 31, 2018, Union Capital LLC2021, the principal balance of the outstanding loan was $130,025 and accrued interest of $79,598.

On November 25, 2019, Meso Numismatics, Inc. pursuant to the certificate of designation of the Series BB, Preferred Stock elected to exchange the preferred shares for other indebtedness calculated at a price per share equal to $1.20. Upon the Company’s mailing of the Exchange Agreement, the shareholder shall have the option, within 30 days of such mailing date and subject to the execution of this Agreement to receive the Indebtedness in the form of a convertible note. Should the shareholder not give the Meso Numismatics, Inc. notice the Indebtedness shall automatically be issued in the form of a promissory note. The promissory note agreements bear no interest and have a four (4) year maturity date with a 20% premium to be paid upon maturity. The notes may be repaid in whole or in part at any time prior to maturity. As of December 31, 2019, 276,723 Preferred Series BB shares were exchange for an aggregate of $332,068 promissory notes.

On December 3, 2019, Melvin Pereira, the CEO, converted 18,500 shares of the 25,000 shares of Series BB preferred stock to acquire one hundred (100%) percent of Meso’s common stock into 250,999 shares of the Company’s common stock and elected to exchange the remaining 6,500 shares of Series BB preferred stock for a promissory note of $7,800.

On July 13, 2020, the Company entered into a Promissory Debentures with a lender in the amount of $6,000 which bear interest at eighteen (18%) percent and have a two (2) year maturity date. The notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $857,099.$5,000, net of discount in the amount of $1,000 to the Company.

 

On June 27, 2016,July 15, 2020, the Company entered into a debt settlement agreementPromissory Debentures with former management, Wanda Chan, to settle convertible promissory notes issued between 2003 and 2013 for the total amount of $3,288,218. Both parties agreed to a future exchange of equity as payment for a settlement amount of $2,018,530, which was recorded in equity as stock payable. A gain of $1,269,688 on the debt settlement was recorded to paid in capital due to Wanda Chan being a related party. On the date of settlement, the Company and Wanda Chan agreed to a payment in the mutually agreed upon amount of 170,000 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $2,018,530. On July 20, 2017, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016. The shares were issued on July 20, 2017, releasing the total stock payablelender in the amount of $2,018,530.$84,000 which bear interest at eighteen (18%) percent and have a two (2) year maturity date. The 170,000notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $70,000, net of discount in the amount of $14,000 to the Company.

At December 7, 2020 the Company exchanged $5,379,624 of principal, default penalty and accrued but unpaid interest on convertible notes for $5,379,624 promissory notes and cashless warrants to purchase 15,000,000 shares were valued on theof our common stock with three separate lenders. The new notes have a maturity date of November 23, 2023 and an aggregate principal amount of $5,379,624 shall bear interest at a fifteen (15%) percentage compounded annual interest rate and, as an incentive; we have issued cashless warrants to purchase 15,000,000 shares of our common stock at an exercise price of $0.03 per share in connection with the agreement at $.0004 per OTC Markets on that date, or $68, resulting in an additional gain during 2017 of $2,018,462 onrestructuring. The Company recorded the issuancefair value of the shares, which was included under additional paid15,000,000 warrants issued with debt at approximately $262,376 at December 31, 2020 as a discount. Lender is granted security interest and lien in capital.

all rights, title and interest in the assets and property of the as collateral.

 


F-23

On April 12, 2016,December 9, 2020, the Company entered into a debt settlement agreementPromissory Debentures with related party, Ajene Watson LLC, to settle convertible promissory notes issueda lender in 2014 for the principle amount of $9,600. $110,000 which bear compounded annual interest at eighteen (18%) percent and have a two (2) year maturity date and cashless warrants to purchase 1,000,000 shares of our common stock. The notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $100,000, net of discount in the amount of $10,000 to the Company. The Company recorded the fair value of the 1,000,000 warrants issued with debt at approximately $17,491 at December 31, 2020 as a discount. 

On January 6, 2021, the Company entered into a Promissory Debentures with a lender in the amount of $1,000,000 which bear interest at eighteen (15%) percent and have a one (1) year maturity date and cashless warrants to purchase 10,000,000 shares of our common stock, at exercise prices of $0.03 per share. The notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $900,000, net of discount in the amount of $100,000 to the Company. The Company recorded the fair value of the 10,000,000 warrants issued with debt at approximately $237,811 at the date of settlement,issuance as a discount.

On June 22, 2021, the Company and Ajene Watson LLC agreed toentered into a paymentPromissory Debentures with a lender in the mutually agreed upon amount of 62,094$11,600,000 which bear interest at twelve (12%) percent and have a three (3) year maturity date and cashless warrants to purchase 70,000,000 shares of BB Preferred Stockour common stock, at exercise prices of $0.10 per share. The notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $10,500,000, net of discount in the amount of $1,100,000 to the Company. The Company recorded the fair value of the 70,000,000 warrants issued with debt at approximately $5,465,726 at the date the warrants were issued as a discount. Lender is granted senior security interest and lien in all rights, title and interest in the assets and property of the Company par value $0.001 per share,as collateral.

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. the Company acquired a 2018 Jaguar F-Pace which was acquired from Benito Novas for $45,000 on January 8, 2019 and assumed the related auto loan, with an original loan amount of $20,991 at 8.99% interest for 48 months and monthly payments of $504.94. As of December 31, 2021, the principal balance of the outstanding auto loan was $5,776.

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. the Company assumed the November 17, 2020, agreement with an Investor for proceeds in the amount of $400,000 treated as a promissory. In exchange for the total stock payablegross proceeds, the Investor shall receive the right to a perpetual 7.75% (payment percentage) of the revenues of Global Stem Cell Group. The payments of the payment percentage shall be calculated by multiplying the gross quarterly revenues appearing in the financial statements by the payment percentage and treated as accrued interest. Payments shall be made ninety (90) days from the end of each respective fiscal quarter with the first payment to be made on the quarter ending December 31, 2020. Payments may be accrued and deferred if payment would deplete cash, cash equivalent and/or short term investment balances on each respective fiscal quarter by more than twenty (20%) percent. As of December 31, 2021, the principal balance of the outstanding loan was $400,000 and accrued interest totals $87,185. This debt instrument is currently in default due to the non-payment of interest.

On September 20, 2021, the Company entered into a Promissory Debentures with a lender in the amount of $43,$1,100,000 which bear interest at twelve (12%) percent and have a three (3) year maturity date and cashless warrants to purchase 7,500,000 shares of our common stock, at exercise prices of $0.085 per share. The notes may be repaid in whole or in part at any time prior to maturity. The lender had advanced a total of $1,000,000, net of discount in the totalamount of $100,000 to the Company. The Company recorded the fair value of the shares on7,500,000 warrants issued with debt at approximately $360,607 at the time of issuance as a discount.

On December 30, 2021, the parties wished to modify the terms of the Promissory Debentures dated July 13, 2020 in the amount of $6,000 and accrued interest in the amount of $1,578 by issuing a new promissory note and extend the date of maturity. In consideration for the agreement per OTC markets. This resultednew terms, the Promissory Debenture dated December 30, 2021 shall include a five (5%) percent premium for a total of $7,958 which bear interest at twelve (12%) percent and have a seventeen (17) months maturity date. The notes may be repaid in a gain of $9,557whole or in 2016, which was recorded under additional paid in capital as Ajene Watson was considered a related party. part at any time prior to maturity.

On December 29, 2017,30, 2021, the Company issuedparties wished to modify the mutually agreed uponterms of the Promissory Debentures dated July 15, 2020 in the amount of 62,094 shares$84,000 and accrued interest in the amount of BB Preferred Stock$22,162 by issuing a new promissory note and extend the date of maturity. In consideration for the new terms, the Promissory Debenture dated December 30, 2021 shall include a five (5%) percent premium for a total of $111,470 which bear interest at twelve (12%) percent and have a seventeen (17) months maturity date. The notes may be repaid in whole or in part at any time prior to maturity.

F-24

The balance of the Company, par value $0.001 per share,promissory as part of a debt settlement agreement that was agreed upon during 2016, releasing the stock payable amount of $43.

December 31, 2021 and December 31, 2020 is as follows:

 

  

December 31,

  December 31,
 
  2021  2020 
Promissory notes payable $20,243,335  $5,911,692 
Less: Discount  6,822,622   295,091 
Less: Deferred finance costs  82,466     
Promissory notes payable, net $13,338,247  $5,616,601 

During the periods ending December 31, 20182021 and 2017,December 31, 2020, the Company paidmade $1,812 and $0 and $50,706,payments, respectively on the outstanding convertiblepromissory notes, converted $30,251 and $86,701,recorded $1,781,394 and $61,561, respectively into 1,154,395of interest expense and 1,382,376 shares of common stock. During 2017, $228,849$874,476 and $3,676, respectively of debt was converted into 282 shares of Preferred Series BB stock of which 232 shares resulted from a debt settlement equity swap agreement entered into during 2016 with Wanda Chen and Ajene Watson as discussed above.discount amortization expense. As of December 31, 20182021 and 2017,December 31, 2020, the Company had approximately $1,878,251 and $61,561, respectively of accrued interest. As of December 31, 2021 and December 31, 2020, the principal balance of outstanding promissory notes payable was $997,502$20,243,335 and $748,571,$5,911,692, respectively.

 

  December 31,  December 31, 
  2018  2017 
Ajene Watson, LLC $3,182  $3,182 
Digital Arts Media Network  128,556   128,556 
Union Capital, LLC  865,764   616,833 
Current note payable  997,502   748,571 
Less: Discount  184,675   370,558 
Current note payable, net $812,827  $378,013 

Derivatives Liabilities

 

The Company determined that the convertible notes outstanding as of December 31, 2018 and 20172020 contained an embedded derivative instrument as the conversion price was based on a variable that was not an input to the fair value of a “fixed-for-fixed” option as defined under FASB ASC Topic No. 815 – 40.

 

The Company determined the fair values of the embedded convertible notes derivatives and tainted convertible notes using the lattice valuation model with the following assumptions:

 

  December 31, 
  2018  2017 
Common stock issuable  60,680,162   14,646,6735 
Market value of common stock on measurement date $0.0488  $0.0001 
Adjusted exercise price  $0.00005-$0.0148   $0.00005-$0.00006 
Risk free interest rate  2.63%  1.76%
Instrument lives in years  1.00 Year   1.00 Year
Expected volatility  632%  503%
Expected dividend yields  None   None 
         
  December 31,
 
  2021 
Common stock issuable  75,710 
Market value of common stock on measurement date $0.27 
Adjusted exercise price $0.21 
Risk free interest rate  .68%
Instrument lives in years  3.00 Year 
Expected volatility  121%
Expected dividend yields  None 

 


At December 7, 2020 the Company exchanged $5,379,624 of principal, default penalty and accrued but unpaid interest on convertible notes for $5,379,624 promissory notes and cashless warrants to purchase 15,000,000 shares of our common stock which eliminated the derivative liability associated with this debt.

The balance of the fair value of the derivative liability as of December 31, 20182021 and 2017December 31, 2020 is as follows:

 

Balance at December 31, 2016 $4,140,468 
Fair value gain  398,401 
Conversions  (3,089,480)
Balance at December 31, 2017  1,449,389 
Additions  263,503 
Fair value gain  1,270,683 
Conversions  (45,258)
Balance at December 31, 2018 $2,938,317 
Balance at December 31, 2019 $4,730,990 
Additions  532,401 
Fair value loss  1,233,277 
Conversions  (6,496,668)
Balance at December 31, 2020  - 
Additions  24,186 
Fair value gain  (3,744)
Conversions  - 
Balance at December 31, 2021 $20,442 

 

DuringF-25

NOTE 5 – CONVERTIBLE PREFERRED STOCK

Designation of Series CC Convertible Preferred Stock

On November 26, 2019, the periods endingCompany filed with the Secretary of State with Nevada an amendment to the Company’s Articles of Incorporation, as amended (the “Articles of Incorporation”), authorizing one thousand (1,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series CC Convertible Preferred Stock,” for which the board of directors established the rights, preferences and limitations thereof.

At any time prior to November 25, 2022 (“Automatic Conversion Date”) the Company may redeem for cash out of funds legally available therefor, any or all of the outstanding Series CC Convertible Preferred Stock at a price equal to $1,000 per share. If not converted prior, on the Automatic Conversion Date, any and all remaining issued and outstanding shares of Series CC Convertible Preferred Stock shall automatically convert at the Conversion Price, which is a price per share determined by dividing the number of issued and outstanding shares of (common?) stock of the Company on the date of conversion by 1,000 and multiply the results by 0.8.

Each holder of outstanding shares of Series CC Convertible Preferred Stock shall be entitled to convert prior to the Automatic Conversion Date, convert part or all of its shares of Series CC Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock at a price per share determined by dividing the number of issued and outstanding shares of stock of the Company on the date of conversion by 1,000 and multiply the results by 0.8 conversion price.

The holders of the Series CC Convertible Preferred Stock shall not be entitled to receive dividends paid on the Company’s common stock.

The holders of the Series CC Convertible Preferred Stock shall not be entitled to vote on any matter submitted to the shareholders of the Company for their vote, waiver, release or other action.

On November 27, 2019, Meso Numismatics, Inc. entered into an Assignment and Assumption Agreement with Global Stem Cells Group Inc., a corporation duly formed under the laws of the State of Florida, Benito Novas and Lans Holdings Inc. a Nevada Corporation whose securities ceased to be registered as of September 18, 2019, whereby Lans Holdings Inc. assigned all of its rights, obligations and interest in, the Letter of Intent it previously entered into with Global Stem Cells Group Inc. and Benito Novas.

In consideration for the Assignment, Meso Numismatics, Inc. issued to Lans Holdings Inc. 1,000 shares of its Series CC Convertible Preferred Stock valued at $83,731 calculated based on conversion provision of the Company’s Articles of Incorporation filed with the Secretary of State in Nevada on November 26, 2019. Shareholders of outstanding shares of Series CC Convertible Preferred Stock shall be entitled to convert part or all of its shares of Series CC Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock at a price per share determined by dividing the number of issued and outstanding shares of stock of the Company on the date of conversion by 1,000 and multiply the results by 0.8 conversion price.

The Convertible Series CC Preferred Stock has been classified outside of permanent equity and liabilities since it embodies a conditional obligation that the Company may settle by issuing a variable number of equity shares and the monetary value of the obligation is based on a fixed monetary amount known at inception. The Company has recorded $83,731 which represents 1,000 Series CC Convertible Preferred Stock at $83.73 per share, issued and outstanding as of December 31, 20182021 and 2017,December 31, 2020, outside of permanent equity and liabilities.

F-26

On November 12, 2020, the Company incurred losses of $3,292 and $81,829, respectively on the conversion of convertible notes. In connectionfiled with the convertible notes,Secretary of State in Nevada the Company recorded $70,358amendment to Certificate of Designation authorizing the increase from 1,000 to 8,000,000 shares of the Series CC Convertible Preferred Stock.

Pursuant to the terms of the Fifth Post Closing Amendment along with the completion of the acquisition of Global Stem Cells Group Inc., the issuance of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock to Lans Holdings Inc. was terminated and $83,332, respectively of interest expense and $449,836 and $300,324, respectively of debt discount amortization expense. replaced with a cash payment as consideration.

As of December 31, 20182021 and 2017,December 31, 2020, the Company had approximately $437,458has 0 and $374,121, respectively1,000 preferred shares of accrued interest.Series CC Preferred Stock issued and outstanding, respectively. During the period of these financial statements, no dividend was declared or paid on the Series CC preferred shares.

NOTE 46 – STOCKHOLDERS EQUITY

 

Common Shares

 

The Board of Directors wasand shareholders were required to increase the number of authorized shares of common stock from (a) 200,000,000 to 500,000,000 during June 2015, (b) 500,000,000 to 1,500,000,000 during July 2015, and (c) 1,500,000,000 to 6,500,000,000 during March 2016, to adhere to the Company’s contractual obligation to maintain the required reserve share amount for debtholders.

 

On July 2, 2018, the Board of Directors authorized and shareholders approved a 1-for-1,000 reverse stock split of its issued and outstanding shares of common stock held by the holders of record on June 30, 2018. The below transactions have been changed to reflect the 1-for-1,000 reverse stock split.

20172020 Transactions

 

On January 20, 2017,8, 2020, the Company issued 155,000410,000 shares of common stock in conversion of $11,150$2,583 convertible notes payable at a conversion price of $0.08.$0.0063: a loss of $4,251 was recorded.

 

On February 7, 2017,May 19, 2020, the Company issued 191,391802,525 shares of common stock in conversion of $9,570$3,290 convertible notes payable at a conversion price of $0.05.$0.0041: a loss of $3,378 was recorded.

 

On February 17, 2017,July 15, 2020, the Company issued 250,000905,929 shares of common stock in conversion of $18,750$4,122 convertible notes payable at a conversion price of $0.08.$0.00455: no loss was recorded.

 

On March 6, 2017,November 30, 2020, the Company issued 195,619791,104 shares of common stock in conversion of $9,781$4,747 convertible notes payable at a conversion price of $0.05.$0.0070: a loss of $2,034 was recorded.

2021 Transactions

 

On April 4, 2017,February 24, 2021, the Company issued 250,36636,232 shares of common stock for consulting services where were valued in conversionthe amount of $11,500 convertible notes payable at a conversion price of $0.05.

$10,000.

 


On May 4, 2017,April 16, 2021, the Company issued 340,00033,772 shares of common stock for consulting services which were valued in conversionthe amount of $25,950 convertible notes payable at a conversion price of $0.08.

$10,000.

 

The above debt conversions resulted in a total loss on settlement and conversions of $81,829, included under additional paid-in capital.

2018 Transactions

On February 20, 2018,June 28, 2021, the Company issued 324,555 shares of Common Stock in conversion of $16,229 convertible notes payable at a conversion price of $0.00005.

On November 2, 2018, the company issued 2,449 shares of Common Stock in conversion of 258 shares of Series BB Preferred Stock. The shares were valued on the date of conversion, using the share price of $0.09 per OTC Markets on that date.

On November 6, 2018, the company issued 1,045 shares of Common Stock in conversion of 110 shares of Series BB Preferred Stock. The shares were valued on the date of conversion, using the share price of $0.04405 per OTC Markets on that date.

On November 21, 2018, the Company issued 393,6981,092,866 shares of common stock as settlement of the lawsuit, which were valued in conversionthe amount of $7,480 convertible notes payable at a conversion price of $0.019.

$213,109.

 

On December 12, 2018,23, 2021, the Company issued 436,14252,659 shares of common stock for consulting services which were valued in conversionthe amount of $6,542 convertible notes payable at a conversion price of $0.015.

$10,000.

 

The above debt conversions resulted in a total loss on settlement and conversions of $3,292, included under additional paid-in capital.

As of December 31, 20182021 and 2017,December 31, 2020, the Company has 4,901,02412,085,125 and 3,743,10610,869,596 common shares issued and outstanding, respectively.

F-27

Warrants

During the year ended December 31, 2020, the Company issued warrants to purchase 16,000,000 shares of common stock, at exercise prices of $0.03 per share. These warrants expire three years from issuance date. The Company recorded the fair value of the 16,000,000 warrants issued with debt at approximately $279,867 at December 31, 2020 as a discount.

On January 6, 2021, the Company issued warrants to purchase 10,000,000 shares of common stock, at exercise prices of $0.033 per share. These warrants expire three years from issuance date. The Company recorded the fair value of the 10,000,000 warrants issued with debt at approximately $237,811 as a discount.

On June 22, 2021, the Company issued warrants to purchase 70,000,000 shares of common stock, at exercise prices of $0.100 per share. These warrants expire three years from issuance date. The Company recorded the fair value of the 70,000,000 warrants issued with debt at approximately $5,465,726 as a discount.

On September 20, 2021, the Company issued warrants to purchase 7,500,000 shares of common stock, at exercise prices of $0.085 per share. These warrants expire three years from issuance date. The Company recorded the fair value of the 7,500,000 warrants issued with debt at approximately $360,607 as a discount.

The following table summarizes the Company’s warrant transactions during the year ended December 31, 2021 and year ended December 2020:

  Number of
Warrants
  Weighted
Average
Exercise
Price
 
Outstanding at year ended December 31, 2019  -  $- 
Granted  16,000,000   0.030 
Exercised  -   - 
Expired  -   - 
Outstanding at year ended December 31, 2020  16,000,000  $0.030 
Granted  87,500,000   0.091 
Exercised        
Expired        
Outstanding at quarter ended December 31, 2021  103,500,000  $0.082 

Warrants granted in the year ended December 31, 2020 were valued using the Black Scholes Model with the risk-free interest rate of 0.20%, expected life 3 years, expected dividend rate of 0% and expected volatility ranging of 411.72%.

Warrants granted in the year ended December 31, 2021 were valued using the Black Scholes Merton Model with the risk-free interest rate within ranges between 0.20% to 0.45%, term of 3 years, dividend rate of 0% and historical volatility ranging between 338.36% to 394.78%. The final value assigned to the warrants was determined using a relative fair value calculation between the amount of warrants and promissory notes.

Designation of Series AA Super Voting Preferred Stock

 

On June 30, 2014, the Company filed with the Secretary of State with Nevada an amendment to the Company’s Articles of Incorporation, as amended (the “Articles of Incorporation”), authorizing the issuance of up to eleven million (11,000,000) shares of preferred stock, with a par value $0.001 per share.

 

On May 2, 2014, the Company filed with the Secretary of State with Nevada in the form of a Certificate of Designation that authorized the issuance of up to one million (1,000,000) shares of a new series of preferred stock, with a par value $0.001 per share, designated “Series AA Super Voting Preferred Stock,” for which the board of directors established the rights, preferences and limitations thereof.

F-28

 

Each holder

All of outstanding sharesthe Holders of the Series AA Super Voting Preferred Stock together, voting separately as a class, shall be entitledhave an aggregate vote equal to ten thousand (10,000) votes forsixty-seven (67%) percent of the total vote on all matters submitted to the stockholders that each sharestockholder of Series AA Super Voting Preferredthe Corporation’s Common Stock held on the record date for the determination of stockholdersis entitled to vote at each meeting of stockholders of the Company.Corporation (and written actions of stockholders in lieu of meetings) with respect to any and all matters presented to the stockholders of the Corporation for their action and consideration.

 

The holders of the Series AA Super Voting Preferred Stock shall not be entitled to receive dividends paid on the Company’s common stock.

 


Upon liquidation, dissolution and winding up of the affairs of the Company, whether voluntary or involuntary, the holders of the Series AA Super Voting Preferred Stock shall not be entitled to receive out of the assets of the Company, whether from capital or earnings available for distribution, any amounts which will be otherwise available to and distributed to the common shareholders.

 

The shares of the Series AA Super Voting Preferred Stock will not be convertible into the shares of the Company’s common stock.

 

During 2014, the Company and S & M Chuah Enterprises Ltd, agreed to an exchange of 900,000,000 common shares previously issued to S & M Chuah Enterprises Ltd, entity controlled by Ken Chua, CEO & board member for 500,000 shares of Series AA Preferred Stock of the Company,Corporation, par value $0.001 per share. The 900,000,000 common shares were returned to the Company’s transfer agent for cancellation. The shares were valued on the date of the agreement using the par value of $0.001, since the shares were non-convertible, non-tradable super voting only.

During 2014, the Company and E-Network de Costa Rica S.A., an entity controlled by Melvin Pereira mutually agreed to issue anupon amount of 500,000 shares of Series AA Preferred Stock of the Company,Corporation, par value $0.001 per share, as a compensation for becoming the new CEO of Pure Hospitality Solutions Inc. The shares were valued on the date of the agreement and are non-convertible, non-tradable super voting only.

On November 26, 2019, the Company filed with the Secretary of State with Nevada an amendment to the Company’s Articles of Incorporation, authorizing the increase to 1,050,000 shares of the Series AA Super Voting Preferred Stock.

 

On June 26, 2020, Meso Numismatics, Inc. completed the repurchase of 1,000,000 shares of its Series AA (“Series AA”) Super Voting Preferred Stock for an aggregate total purchase price equal to $160,000, representing all of the Series AA shares held by E-Network de Costa Rica S.A. and S&M Chuah Enterprises Ltd., respectively.

On June 26, 2020, due to Mr. Pereira’s resignation, Meso Numismatics, Inc.’s Board of Directors appointed Mr. David Christensen, current Director and President of the Company, to serve as Chief Executive Officer, Chief Financial Officer and Secretary, effective June 27, 2020 and granted 50,000 shares of Series AA to Mr. David Christensen.

The $166,795 value of the 50,000 shares of Series AA Super Voting Preferred Stock to Mr. David Christensen is based on the 10,000 votes per preferred share to one vote per common share. Valuation based on definition of control premium is defined as the price to which a willing buyer and willing seller would agree in any arms-length transaction to acquire control of the Company. The premium paid above the market value of the company is real economic benefit to controlling the Company. Historically, the average control premium applied in M&A transactions averages approximately 30%, which represents the value of control.

On August 18, 2021, Meso Numismatics, Inc., completed its acquisition of Global Stem Cells Group Inc., through a Stock Purchase Agreement acquiring all the outstanding capital stock of Global Stem Cells Group Inc and paid the purchase price of a total of 1,000,000 shares of Series AA Preferred Stock in the Company, 8,974 shares of Series DD Preferred Stock in the Company and $225,000 USD (the final payment of $50,000 was made on July 2, 2021).

The Series AA Preferred shares issued on August 18, 2021, were valued based upon industry specific control premiums and the Company’s market cap at the time of the transaction. The $963,866 value of the 1,000,000 shares of Series AA Super Voting Preferred Stock issued to Benito Novas were valued based on a calculation by a third party independent valuation specialist.

As of December 31, 20182021 and 2017,December 31, 2020, the Company had 1,000,000has 1,050,000 and 50,000 preferred shares of Series AA Preferred Stock issued and outstanding.outstanding, respectively. During the period of these financial statements, no dividend was declared or paid on the Series AA preferred shares.

 

F-29

Designation of Series BB Preferred Stock

 

On March 29, 2017, the Company filed with the Secretary of State with Nevada in the form of a Certificate of Designation that authorized the issuance of up to one million (1,000,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series BB Preferred Stock,” for which the board of directors established the rights, preferences and limitations thereof.

Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert on a 1 for 1 basis into shares of the Company’s common stock, any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company.

Corporation.

 

The holders of the Series BB Preferred Stock shall not be entitled to receive dividends paid on the Company’s common stock.

 

The Series BB Preferred Stock has a liquidation value of $1.00. Upon liquidation, dissolution and winding up of the affairs of the Company, whether voluntary or involuntary, the holders of the Series BB Preferred Stock shall be entitled to share equally and ratably in proportion to the preferred stock owned by the holder to receive out of the assets of the Company, whether from capital or earnings available for distribution, any amounts which will be otherwise available to and distributed to the common shareholders.

 


2017 TransactionsAs of December 31, 2019, 81,043 Preferred Series BB shares were exchanged for an aggregate of $97,252 convertible notes and 276,723 Preferred Series BB shares were exchanged for an aggregate of $332,068 promissory notes of which 78,620 were returned and cancelled and 279,146 were still outstanding at December 31, 2020. During the three months ended March 31, 2021, the remaining 279,146 were returned and cancelled.

 

On June 30, 2017,As of December 31, 2021 and December 31, 2020, the Company had 0 and Meso Numismatics have agreed to a payment in the mutually agreed upon amount279,146, respectively, of 25,000preferred shares of Series BB Preferred Stock issued and outstanding. During the period of these financial statements, no dividend was declared or paid on the Series BB preferred shares.

Designation of Series DD Convertible Preferred Stock

On November 26, 2019, the Company filed with the Secretary of State with Nevada an amendment to the Company’s Articles of Incorporation, authorizing ten thousand (10,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series DD Convertible Preferred Stock,” for which amounts to 2.5%the board of directors established the authorized shares of this class of preferred, fully satisfying the Merger Agreement, which was first entered into on November 16, 2016. These shares were issued on August 14, 2017,rights, preferences and were accounted for under common control acquisition accounting. The shares were valued on the date of the agreement using the share price of $0.0002 per OTC markets on that date.limitations thereof.

 

On June 27, 2016, the Company entered into a debt settlement agreement with former management, Wanda Chan, to settle convertible promissory notes issued between 2003 and 2013 for the total amount of $3,288,218. Both parties agreed to a future exchange of equity as payment for a settlement amount of $2,018,530, which was recorded in equity as stock payable. A gain of $1,269,688 on the debt settlement was recorded to paid in capital due to Wanda being a related party. On the date of settlement, the Company and Wanda Chan agreed to a payment in the mutually agreed upon amount of 170,000 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $2,018,530. On July 20, 2017, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016. The shares were issued on July 20, 2017, releasing the total stock payable in the amount of $2,018,530. The 170,000 shares were valued on the date of the agreement at $.0004 per OTC Markets on that date, resulting in an additional gain during 2017 of $2,018,462 on the issuance of the shares, which was included under additional paid in capital.

On September 13, 2017, the Company issued 42,862 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BBDD Convertible Preferred Stock shall be entitled to convert any or all of theirits shares of Series BBDD Convertible Preferred Stock afterinto a minimumnumber of six (6) months have elapsed fromfully paid and nonassessable shares of common stock determined by multiplying the issuancenumber of issued and outstanding shares of common stock of the preferred stock toCompany on the holder. date of conversion by 3.17 conversion price.

The holders of the Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BBDD Convertible Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0002 per OTC Markets on that date.

On September 26, 2017, the Company issued 17,716 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock intoreceive dividends paid on the Company’s common stock.

The holders of the Series BBDD Convertible Preferred Stock shall not be adjusted byentitled to vote on any matter submitted to the Company. These shares were valued on the dateshareholders of the agreement, usingCompany for their vote, waiver, release or other action.

F-30

On August 18, 2021, Meso Numismatics, Inc., completed its acquisition of Global Stem Cells Group Inc., through a Stock Purchase Agreement acquiring all the shareoutstanding capital stock of Global Stem Cells Group Inc and paid the purchase price of $0.0002 per OTC Marketsa total of 1,000,000 shares of Series AA Preferred Stock in the Company, 8,974 shares of Series DD Preferred Stock in the Company and $225,000 USD (the final payment of $50,000 was made on that date.July 2, 2021).

 

On October 23, 2017, the company issued 9,744 Preferred BB Shares to qualifying shareholders as partThe $5,038,576 value of the Common8,974 shares of Series DD Convertible Preferred Stock incentive program that occurred during 2017. Each holderto Benito Novas is based on converting into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuancecommon stock of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0002 per OTC Markets on that date.


On December 19, 2017, the company issued 12,608 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0001 per OTC Markets on that date.

On April 12, 2016, the Company entered into a debt settlement equity swap agreement with related party, Ajene Watson LLC, to settle convertible promissory notes issued in 2014 for the principle amount of $9,600. On the date of settlement, the Company and Ajene Watson LLC agreed to a payment in the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $43, the total value of the shares on the date of the agreement per OTC markets. This resulted in a gain of $9,557 in 2016, which was recorded under additional paid in capital as Ajene was considered a related party. On December 29, 2017, the Company issued the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016, releasing the stock payable amount of $43.

On December 29, 2017, the Company entered into certain Debt Settlement Agreements with three Note Holders to extinguish $228,849 of debts held by these Note Holders in exchange for 50,037 shares of the Company’s Series BB Convertible Preferred Stock, par value $0.001 per share.

On December 29, 2017, the Company entered into certain Debt Settlement Agreements with three vendors to extinguish $188,495 of debts held by these vendors. All parties agreed to a total exchange of 20,212 of shares of BB Preferred Stock of the Company, par value $0.001 per share, as payment for the settlement. The shares were valued using the stock price on the date of the agreement resulting in $2 recorded in equity as stock payable and $188,493 recorded as a gain on settlement of debt. On February 08, 2018, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, releasing the total stock payable in the amount of $2.

2018 Transactions

On January 23, 2018, the company issued 3,073 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0002 per OTC Markets on that date expense incurred on these issuances is $1,822 as of the total December 31, 2018. The total expense incurred on these issuances is $1,822 as of December 31, 2018.


On April 27, 2018, the company issued 11,564 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0002 per OTC Markets on that date.

On June 14, 2018, the company issued 384 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0002 per OTC Markets on that date.

On October 11, 2018, the company issued 19,209 Preferred BB Shares to qualifying shareholders as part of the Common Stock incentive program that occurred during 2017. Each holder of outstanding shares of Series BB Preferred Stock shall be entitled to convert any or all of their shares of Series BB Preferred Stock after a minimum of six (6) months have elapsed from the issuance of the preferred stock to the holder. The Series BB Preferred Stock has no voting rights until the Holder redeems the preferred stock into the Company’s common stock. The Series BB Preferred Stock shall not be adjusted by the Company. These shares were valued on the date of the agreement, using the share price of $0.0947 per OTC Markets on that date.

On November 2, 2018, the company issued 2,449 shares of Common Stock in conversion of 258 shares of Series BB Preferred Stock. The shares were valued on the date of conversion usingby 3.17 conversion price. The $5,038,576 value of the share price of $0.09 per OTC Markets on that date.

On November 6, 2018, the company issued 1,045 shares of Common Stock in conversion of 1108,974 shares of Series BBDD Convertible Preferred Stock. Stock represents the fair value of the consideration paid allocated to the assets and liabilities acquired from Global Stem Cells Group Inc.

In consideration of mutual covenants set forth in the Professional Service Consulting Agreement, Dave Christensen, current Director, President, Chief Executive Officer, Chief Financial Officer and Secretary, shall be compensated monthly based on annual rate of $90,000, starting January 1, 2022. Additionally, the agreement includes an issuance of 896 shares of Series DD Preferred Stock of the Company. An amount of 448 shares are issued on August 18, 2021 and the remaining 448 to be issued February 18, 2022.

The $503,072 value of the 896 shares were valuedof Series DD Convertible Preferred Stock is based on converting into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion usingby 3.17 conversion price. The $251,536 value of the share price448 shares of $.09 per OTC Markets on that date.

During the periods ending December 31, 2018 and 2017, the Company incurred losses of $3,292 and $81,829, respectively from conversion of convertible debt, gains in 2017 of $2,018,462 from settlement of related party debt in connection with convertible notes, whichSeries DD Convertible Preferred Stock to be issued February 18, 2022 was included in additional paid in capital.

Stock Payable

On June 27, 2016, the Company entered into a debt settlement equity swap agreement with a former manager, Wanda Chan, to settle convertible promissory notes issued between 2003 and 2013 for the total amount of $3,288,218. Both parties agreed to a future exchange of equity as payment for a settlement amount of $2,018,530, which was recorded in equity as stock payable. A gainThe full amount of $1,269,688 on the debt settlement$503,552 was recorded to paid in capital due to Wanda being a related party. Onexpensed at the date of settlement, the Company and Wanda Chan agreed togrant, as a payment in the mutually agreed upon amountmatter of 170,000 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $2,018,572. On July 20, 2017, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016. The shares were issued on July 20, 2017, releasing the total stock payable in the amount of $2,018,530. The 170,000 shares were valued on the date of the agreement at $.0004 per OTC Markets on that date, resulting in an additional gain during 2017 of $2,018,462 on the issuance of the shares, which was included under additional paid-in capital.


On April 12, 2016, the Company entered into a debt settlement equity swap agreement with related party, Ajene Watson LLC, to settle convertible promissory notes issued in 2014 for the principle amount of $9,600. On the date of settlement, the Company and Ajene Watson LLC agreed to a payment in the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $43, the total value of the shares on the date of the agreement per OTC markets. This resulted in a gain of $9,557 in 2016, which wasaccounting policy. There is $251,776 recorded under additional paid in capital as Ajene Watson was considered a related party. On December 29, 2017, the Company issued the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016, releasing the stock payable amount of $43.

On December 29, 2017, the Company entered into certain Debt Settlement Agreements with three vendors to extinguish $188,495 of payables held by these vendors. All parties agreed to a total exchange of 20,212 of shares of BB Preferred Stock of the Company, par value $0.001 per share, as payment for the settlement. The shares were valued using the stock price on the date of the agreement resulting in $2 recorded in equity as stock payable – related party due to Dave Christensen, CEO, at December 31, 2021.

As of December 31, 2021 and $188,493 recorded as a gain on settlement of debt. On February 08, 2018,December 31, 2020, the Company issued the mutually agreed upon number ofhad 9,422 and 0 preferred shares of BBSeries DD Convertible Preferred Stock issued and outstanding, respectively, with 448 will be issued in February 2022. During the period of these financial statements, no dividend was declared or paid on the Company, par value $0.001 per share, releasing the total stock payable in the amount of $2.Series DD preferred shares.

 

NOTE 57 – RELATED PARTY TRANSACTIONS

 

The Company currently shares its corporate registered offices with Ajene Watson LLC at 3265 Johnson Avenue, Suite 213, Riverdale, NY 10463. The lease is for a year to year term. During the year ended December 31, 2018 and 2017,On June 25, 2020, Mr. Martin Chuah submitted his resignation as Director of the Company, incurredeffective June 26, 2020. There are no rent expenses.

On June 30, 2017, the Companydisagreements between Mr. Chuah and Meso Numismatics, have agreedInc. on any matter relating to a payment inits operations, policies or practices.

On June 26, 2020, Mr. Melvin Pereira submitted his resignation as Chief Executive Officer, Chief Financial Officer, Secretary and Director of Meso Numismatics, Inc., effective June 26, 2020. There are no disagreements between Mr. Pereira and Meso Numismatics, Inc. on any matter relating to its operations, policies or practices.

On June 26, 2020, Meso Numismatics, Inc. completed the mutually agreed upon amountrepurchase of 25,0001,000,000 shares of its Series AA Super Voting Preferred Stock for an aggregate total purchase price equal to $160,000, representing all of the Series AA shares held by E-Network de Costa Rica S.A. and S&M Chuah Enterprises Ltd., respectively.

On June 26, 2020, due to Mr. Pereira’s resignation, Meso Numismatics, Inc.’s Board of Directors appointed Mr. David Christensen, current Director and President of the Company, to serve as Chief Executive Officer, Chief Financial Officer and Secretary, effective June 27, 2020 and granted 50,000 shares of Series BBAA Super Voting Preferred Stock to Mr. David Christensen.

In consideration of mutual covenants set forth in the Professional Service Consulting Agreement, Dave Christensen, current Director, President, Chief Executive Officer, Chief Financial Officer and Secretary, shall be compensated monthly based on annual rate of $90k starting January 1, 2022. Additionally, the agreement includes an issuance of 896 shares of Series DD Preferred Stock of the Company, par value $0.001 per share, which amounts to 2.5%Company. An amount of the authorized448 shares of this class of preferred, fully satisfying the Merger Agreement, which was first entered into on November 16, 2016. These shares wereare issued on August 14, 2017,18, 2021 and the remaining 448 to be issued February 18, 2022. Amounts paid to Enterprise Technology Consulting, a Company 100% owned by Dave Christensen, CEO, for consulting services during 2021 were accounted for under common control acquisition accounting, since both entities were controlled$60,000.

The Company paid Lans Holdings Inc., by Melvin Pereira, CEO of Pure Hospitality Solutions. The shares were valueddelivery in escrow on the dateNovember 3, 2021, an amount equal to USD $8,200,000.

F-31

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the agreement using the share priceoutstanding shares of $0.0002.

On June 27, 2016,Global Stem Cell Group, Inc. the Company entered intoacquired a debt settlement equity swap agreement2018 Jaguar F-Pace which was acquired from Benito Novas for $45,000 on January 8, 2019 and assumed the related auto loan, with a former manager, Wanda Chan, to settle convertible promissory notes issued between 2003 and 2013 for the totalan original loan amount of $3,288,218. Both parties agreed to a future exchange$20,991 at 8.99% interest for 48 months and monthly payments of equity as payment for a settlement amount of $2,018,530, which was recorded in equity as stock payable. A gain of $1,269,688 on the debt settlement was recorded to paid in capital due to Wanda being a related party. On the date of settlement, the Company and Wanda Chan agreed to a payment in the mutually agreed upon amount of 170,000 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $2,018,572. On July 20, 2017, the Company issued the mutually agreed upon number of shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016. The shares were issued on July 20, 2017, releasing the total stock payable in the amount of $2,018,572. The 170,000 shares were valued on the date of the agreement at $.0004 per OTC Markets on that date, resulting in an additional gain during 2017 of $2,018,462 on the issuance of the shares, which was included under additional paid-in capital due to Wanda Chun being a related party.


On April 12, 2016, the Company entered into a debt settlement equity swap agreement with related party, Ajene Watson LLC, to settle convertible promissory notes issued in 2014 for the principle amount of $9,600. On the date of settlement, the Company and Ajene Watson LLC agreed to a payment in the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, for the total stock payable amount of $43, the total value of the shares on the date of the agreement per OTC markets. This resulted in a gain of $9,557 in 2016, which was recorded under additional paid in capital as Ajene Watson was considered a related party. On December 29, 2017, the Company issued the mutually agreed upon amount of 62,094 shares of BB Preferred Stock of the Company, par value $0.001 per share, as part of a debt settlement agreement that was agreed upon during 2016, releasing the stock payable amount of $43.

A total gain on related party debt forgiveness was $2,018,462 in the year ended December 31, 2017, which was included in additional paid in capital.

NOTE 6 – INCOME TAXES

Due to the Company’s net losses, there were no provisions for income taxes for the years ended December 31, 2018 and 2017. The provision (benefit) for income taxes for the years ended December 31, 2017 and 2018 were assuming a 35% and 21% effective tax rate, respectively.

Deferred income tax assets as$504.94. As of December 31, 2018 and 2017 were as follows:

  December 31,
2018
  December 31,
2017
 
Deferred Tax Assets:      
Net operating losses $813,814  $635,057 
Less valuation allowance  (813,814)  (635,057)
Total deferred tax assets $-  $- 

The Company has recorded a full allowance against its deferred tax assets as of December 31, 2018 and 2017 because management determined that it is not more-likely-than not that those assets will be realized. In assessing2021, the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of deferred assets will not be realized. The ultimate realizationprincipal balance of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

For federal income tax purposes, the Company has a net operating loss carry forward of approximately $3,875,306 million at December 31, 2018, which expires commencing in 2033.outstanding auto loan was $5,776.

 


On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. the Company acquired 50,000,000 shares of common stock from Aesthetic Marketing Group, LLC on May 23, 2019. Aesthetic Marketing Group is wholly owned by Benito Novas, CEO of Global Stem Cell Group, Inc.

Benito Novas’, (CEO of Global Stem Cell Group, Inc.) brother, sister and nephew provide marketing/administrative and training/R&D services to Global Stem Cells Group and were paid as consultants from August 18, 2021 to December 31, 2021 in aggregate $101,175.

NOTE 78 – COMMITMENTS AND CONTINGENCIES

 

On May 12, 2015, the Company issued a convertible promissory Note (the “Note”) in the principal amount of $25,000 to Tarpon Bay Partners, LLC (“Tarpon Bay”), whose principal at the time is now known as a “Bad Actor” under SEC rules. On or about January 23, 2017, Tarpon Bay elected to convert principal and interest under the Note into shares of the Company’s common stock. On or about June 6, 2017 the Note was assigned to J.P. Carey Enterprises, Inc. (“J.P.”). On or about June 7, 2017, J.P. elected to convert principal and interest under the Note into shares of the Company’s common stock. Joseph Canouse, a principal at J.P., initiated a lawsuit against the Company in Fulton County Court, in Georgia for, amongstamong other things, breach of contract. A default judgment was entered into against the Company for failure to response to these claims. The court then issued an Order of Judgement against the Company in the amount of $282,500 which was recorded in accounts payable as of December 31, 2017. The Company appealed the Courts’ decision and in November 2018, while the Court of Appeals affirmed liability under the judgment, the Court of Appeals vacated the award of the entire judgment amount and remanded the case back to the trial court with instructions.

 

On June 23, 2021, the Company entered into a settlement agreement for an outstanding lawsuit for consideration of $300,000 in cash and 1,092,866 shares of common stock in the amount of $213,109. The $513,109 settlement was offset by the $282,500 which was recorded in accounts payable as of December 31, 2017 resulting in expense of $231,109 during the six months ended June 30, 2021.

On June 28, 2021, the Company paid $300,000 in cash and issued 1,092,866 shares of common stock as settlement of the lawsuit, in the amount of $213,109, resulting in an outstanding balance of $0 as of December 31, 2021.

Per an Agreement between Global Stem Cell Group and a lender dated November 17, 2020, in the event that any of Global Stem Cell Group, and/or the Entities and /or Parent (individually the “Company” and collectively the “Companies”) dispose of any Assets to any party or third party or parties (an “Asset Disposition”), then Global Stem Cell Group shall undertake to cause such party, third party or parties to acquire the Right from the Investor. The consideration for the Right shall be equal to the fair value (“FV”) of the Assets at the time of the Asset Disposition (the “Asset Disposition Payment”). The Asset Disposition Payment shall not exceed 27.5% (twenty-seven and a half percent) of the FV of the Assets. As part of the agreement, should the Global Stem Cell Group consummate its acquisition agreement with Meso Numismatics, Inc., so long as Meso Numismatics, Inc. agrees to be bound by the provision after the acquisition, then that provision will not trigger at the time of sale of the Global Stem Cell Group to Meso Numismatics, Inc.

During the period ending December 31, 2021, Global Stem Cell Group, Inc. entered into the Cancun lease with HELLIMEX, S.A. DE CV beginning January 16 2022 and ending on January 15, 2024. The property is located in the Tulum Trade Center, consisting of 1,647 square feet with a monthly rent of $2,714 and security deposit of $5,588.

F-32

NOTE 89 – PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consisted of the following:

 

  December 31,
2018
  December 31,
2017
 
Computer and office equipment $4,000  $       - 
Less: accumulated depreciation  (200)  - 
Total property and equipment, net $3,800  $- 
  December 31,
2021
  December 31,
2020
 
Computer and office equipment (5 year useful life) $66,445  $4,000 
Less: accumulated depreciation  (43,536)  (1,800)
Total property and equipment, net $22,909  $2,200 

 

Depreciation expense for the years ended December 31, 2021 and December 31, 2020 was $40,858 and $800, respectively.

NOTE 910 – ACQUISITION

On August 18, 2021, through a Stock Purchase Agreement in which 100% of the outstanding shares of Global Stem Cell Group, Inc. were acquired for $225,000 in cash, the issuance of 1,000,000 shares of preferred series AA stock and the issuance of 8,974 shares of preferred series DD stock.

The preliminary purchase price for the merger was determined to be $6.229 million, which consists of (i) 1 million shares of Series AA preferred stock valued at approximately $964,000, (ii) 8,974 shares of Series DD preferred stock valued at approximately $5.04 million and (iii) $225,000 in cash of which $175,000 was advanced in prior to closing of the transaction.

The Company accounted for the Stock Purchase Agreement as a business combination under the acquisition method of accounting. Under ASC 805 Business Acquisitions, determination of the accounting acquirer follows the requirements for control contained within ASC 810 Consolidations. Meso Numismatics, Inc. was determined to be the accounting acquirer based upon the terms of the Stock Purchase Agreement and other factors including the voting provisions contained within the Series AA preferred stock. Those voting provisions require that for (1) any change of control or (2) for any change in directors that the Series AA can only vote in a unanimous fashion, therefore the shares held by the current CEO and board Chairman prior to the date of the acquisition remain in control of the combined entity. In addition, no new officers or directors were brought on board as a result of the acquisition.

The following table presents an allocation of the purchase price to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The goodwill, which is not deductible for tax purposes, is attributable to the assembled workforce of Global Stem Cells Group, planned growth in new markets, and synergies expected to be achieved from the combined operations of Meso Numismatics, Inc. and Global Stem Cells Group.

Description 

As of

August 18,

2021

 
Cash Payments to GSCG $225,000 
Fair value of  1,000,000 shares of preferred series AA stock  963,866 
Fair value of  8,974 shares of preferred series DD stock  5,038,576 
Accounts payable and accrued liabilities  164,252 
Note payables  407,588 
Due to MESO  250,000 
Total consideration $7,049,282 
     
Cash and cash equivalents  716,647 
Accounts receivable  14,006 
Property and equipment, net  25,491 
Intangible assets, net  487,700 
Total fair value of assets acquired  1,243,844 
Consideration paid in excess of fair value (Goodwill)  (1) $5,805,438 

(1)The consideration paid in excess of the net fair value of assets acquired and liabilities assumed has been recognized as goodwill.

F-33

Under the provisions of purchase accounting, the Company has up to 1 year from the date of the acquisition to finalize the accounting for the assets acquired and liabilities assumed. The amounts included in the table above are therefore still subject to revision should additional information become available to the Company regarding the assets acquired and liabilities assumed. 

NOTE 11 – INTELLECTUAL PROPERTY

A third party independent valuation specialist was asked to determine the value of Global Stem Cell Group, Inc., tangible and intangible assets assuming the offering price was at fair value. In order to perform the purchase price allocation, the tangible and intangible assets were valued as of August 18, 2021.

The Fair Value of the intangible assets as of the Valuation Date is reasonably represented as:

  December 31,
2021
 December 31,
2020
 
Tradename - Trademarks $87,700 $          - 
Intellectual Property / Licenses  363,000  - 
Customer Base  37,000  - 
Intangible assets  487,700  - 
Less: accumulated amortization  (36,076) - 
Total intangible assets, net $451,624 $- 

Amortization is computed on straight-line method based on estimated useful lives of 5 years. During the year ended December 31, 2021, the Company recorded amortization expense of the intellectual property of $36,076.

NOTE 12 – INCOME TAXES

Due to the Company’s net losses, there were no provisions for income taxes for the years ended December 31, 2021 and 2020. The difference between the income tax expense of zero shown in the statement of operations and pre-tax book net loss times the federal statutory rate of 21% is due to the change in the valuation allowance.

The benefit for income taxes differed from the amount computed using the U. S federal income tax rate of 21% for December 21, 2021, as follows

  2021 
Income tax (benefit) $(2,705,741)
Non-deductible  345,741 
Change in valuation allowance  2,360,000 
Income tax (benefit) per financial statements $- 

Deferred income tax assets as of December 31, 2021 and 2020 were as follows:

  December 31,
2021
  December 31,
2020
 
Deferred Tax Assets:      
Net operating losses $3,619,294  $1,259,107 
Less valuation allowance  (3,619,294)  (1,259,107)
Total deferred tax assets $-  $- 

F-34

The Company has recorded a full allowance against its deferred tax assets as of December 31, 2021 and 2020 because management determined that it is not more-likely-than not that those assets will be realized. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

For federal income tax purposes, the Company has a net operating loss carry forward of approximately $18,757,124 at December 31, 2021, which expires commencing in 2036.

NOTE 13 – OTHER ASSETS

During the period ending December 31, 2021, Global Stem Cell Group, Inc. entered into the Cancun lease with HELLIMEX, S.A. DE CV beginning January 16 2022 and ending on January 15, 2024. The property is located in the Tulum Trade Center, consisting of 1,647 square feet with a monthly rent of $2,714 and security deposit of $5,588.

NOTE 14 – PREPAID EXPENSES

During the period ending December 31, 2021, Global Stem Cell Group, Inc. had made prepayments towards the buildout of the clinic at the Tulum Trade Center and purchase of equipment in the amount of $21,532 along with first month rent of $2,714.

NOTE 15 – SUBSEQUENT EVENTS

 

Global Stem Cell Group, Inc. entered into the Cancun lease with HELLIMEX, S.A. DE CV beginning January 16 2022 and ending on January 15, 2024. The property is located in the Tulum Trade Center, consisting of 1,647 square feet with a monthly rent of $2,714 and security deposit of $5,588. In January 2022, the Company began the buildout of the clinic and order equipment. The Cancun facility is to be inaugurated in May 2022 is accredited both by the Mexican General Health Council and Cofepris (Mexican FDA).

On February 4, 2019,18, 2022, the Company entered into aissued the remaining 448 shares of Series DD Convertible Debenture with Union Capital LLCPreferred Stock set forth in the Professional Service Consulting Agreement to Dave Christensen, current Director, President, Chief Executive Officer, Chief Financial Officer and Secretary that were recorded as $251,776 in stock payable at December 31, 2021.

On March 23, 2022, the Company issued 76,278 shares of common stock for consulting services in the amount of $31,070. The promissory note agreement bears interest$10,000 that were recorded in stock payable at eight (8%) percent and has a one (1) year maturity date. The note may be repaid in whole or in part any time prior to maturity. There are no common shares issuable upon the execution of the promissory note. The note is convertible, at the investor’s sole discretion, into common shares at variable conversion prices.December 31, 2021.

 

On March 18, 2019, the Company entered into a Convertible Debenture with Union Capital LLC in the amount of $31,300. The promissory note agreement bears interest at eight (8%) percent and has a one (1) year maturity date. The note may be repaid in whole or in part any time prior to maturity. There are no common shares issuable upon the execution of the promissory note. The notes is convertible, at the investor’s sole discretion, into common shares at variable conversion prices.

 

F-35

F-22

 

iso4217:USD xbrli:shares