UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: ~~June~~September 30, 2022

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

For the transition period from __________ to __________

Commission File Number: 000-56010

MESO NUMISMATICS, INC.

(Exact name of registrant as specified in its charter)

Nevada		88-0492191
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

433 Plaza Real Suite 275

Boca Raton, Florida 33432

(Address of principal executive offices)

(800) 889-9509

(Registrant’s telephone number, including area code)

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 past 12 months, 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 ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

As of ~~August 15,~~November 8, 2022, there were 12,250,888 shares outstanding of the registrant’s common stock.

MESO NUMISMATICS, INC.

TABLE OF CONTENTS

		Page No.
PART I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Balance Sheets as of ~~June~~September 30, 2022 (unaudited) and December 31, 2021	1
	Condensed Consolidated Statements of Operations for the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021 (unaudited)	2
	Condensed Consolidated Statements of Stockholders’ Deficit for the ~~Six~~Three and Nine Months Ended ~~June~~September 30, 2022 and 2021 (unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021 (unaudited)	56
	Notes to Condensed Consolidated Financial Statements	67

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3738
Item 4.	Controls and Procedures	3738

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	3940
Item 1A.	Risk Factors	3940
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3940
Item 3.	Defaults Upon Senior Securities	3940
Item 4.	Mine Safety Disclosures	3940
Item 5.	Other Information	3940
Item 6.	Exhibits	4041

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MESO NUMISMATICS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

~~MESO NUMISMATICS INC.~~

~~CONDENSED CONSOLIDATED BALANCE SHEETS~~

September 30, December 31,
2022 2021
(Unaudited) *
ASSETS
Current assets
Cash and cash equivalents $ 1,769,636 $ 2,978,525
Accounts receivable 86,262 17,257
Prepaid expenses — 24,245
Total current assets 1,855,898 3,020,027
Property and equipment, net 145,112 22,909
Other assets 5,568 5,568
Intangible assets, net 378,670 451,624
Right of use asset, net 41,408 —
Goodwill 5,805,438 5,805,438
Total assets $ 8,232,094 $ 9,305,566

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued liabilities $ 279,372 $ 250,755
Accrued interest 4,189,504 2,129,395
Customer advances 33,990 18,215
Stock payable – related party — 251,536
Stock payable — 20,000
Derivative liability 9,960 20,442
Lease liability, current portion 32,568 —
Notes payable, net 1,531,519 1,527,711
Total current liabilities 6,076,913 4,218,054

Long term liabilities
Lease liability, net of current portion 8,840 —
Convertible notes payable, net of discount 38,110 33,982
Notes payable – related parties 7,800 7,800
Notes payable, net of discount 13,100,313 11,802,736
Total liabilities $ 19,231,976 $ 16,062,572

Stockholders’ deficit
Preferred stock, $0.001 par value 1,050,000 shares authorized as Series AA; 1,050,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021 1,050 1,050
Preferred stock, $0.001 par value; 10,000 shares authorized as Series DD; 9,870 and 9,422 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 10 10
Common stock, $0.001 par value; 6,500,000,000 shares authorized; 13,853,202 and 13,687,439 shares issued and issuable and 12,250,888 and 12,085,125 shares outstanding as of September 30, 2022 and December 31, 2021, respectively 12,251 12,086
Additional paid in capital 40,170,862 39,899,491
Accumulated deficit (51,184,055 ) (46,669,643 )
Total stockholders’ deficit (10,999,882 ) (6,757,006 )
Total liabilities and stockholders’ deficit $ 8,232,094 $ 9,305,566

June 30, December 31,
2022 2021
(Unaudited) *
ASSETS
Current assets
Cash and cash equivalents $ 1,924,532 $ 2,978,525
Accounts receivable 23,027 17,256
Prepaid expenses — 24,245
Total current assets 1,947,558 3,020,027
Property and equipment, net 159,147 22,909
Other assets 5,568 5,568
Intangible assets, net 403,255 451,624
Right of use asset, net 48,712 —
Goodwill 5,805,438 5,805,438
Total assets $ 8,369,678 $ 9,305,566

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities $ 230,031 $ 250,756
Accrued interest 3,470,334 2,129,395
Customer advances 21,430 18,215
Stock payable – related party — 251,536
Stock payable — 20,000
Derivative liability 10,836 20,442
Lease liability, current portion 32,568 —
Notes payable, net 1,532,978 1,527,711
Total current liabilities 5,298,177 4,218,055

Long term liabilities
Lease liability, net of current portion 16,144 —
Convertible notes payable, net of discount 35,402 33,982
Notes payable – related parties 7,800 7,800
Notes payable, net of discount 12,667,655 11,802,736
Total liabilities $ 18,025,177 $ 16,062,573

Stockholders' deficit
Preferred stock, $0.001 par value 1,050,000 shares authorized as Series AA; 1,050,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021 1,050 1,050
Preferred stock, $0.001 par value; 10,000 shares authorized as Series DD; 9,870 and 9,422 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 10 10
Common stock, $0.001 par value; 6,500,000,000 shares authorized; 13,853,202 and 13,687,439 shares issued and issuable and 12,250,888 and 12,085,125 shares outstanding as of June 30, 2022 and December 31, 2021, respectively 12,251 12,086
Additional paid in capital 40,170,862 39,899,491
Accumulated deficit (49,839,672 ) (46,669,643 )
Total stockholders' deficit (9,655,500 ) (6,757,007 )
Total liabilities and stockholders' deficit $ 8,369,678 $ 9,305,566
* Derived from audited information

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Page 1 of 4142

MESO NUMISMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months Ended
June 30, For the Six Months Ended
June 30, For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021 2022 2021 2022 2021
Revenue $ 304,521 $ 15,769 $ 614,599 $ 20,212 $ 374,359 $ 165,042 $ 988,958 $ 185,254
Cost of revenue 155,881 11,860 359,474 26,650 109,364 88,520 468,838 115,170
Gross profit (loss) 148,640 3,909 255,125 (6,438 ) 264,995 76,522 520,120 70,084

Operating expenses
Advertising and marketing 80,961 144 135,575 381 80,931 22,351 216,506 22,732
Professional fees 196,330 215,458 592,069 329,245 143,118 336,299 735,186 665,544
Officer compensation 22,500 19,099 45,000 34,099 22,500 518,833 67,500 552,932
Depreciation and amortization expense 35,325 200 62,302 400 39,882 12,947 102,184 13,347
Investor relations 47,634 17,574 94,884 20,472 32,749 32,574 127,633 53,046
General and administrative- related party — 8,116,269 — 8,116,269
General and administrative 131,304 5,945 233,222 16,555 107,907 52,651 341,131 69,206
Total operating expenses 514,054 258,420 1,163,052 401,152 427,087 9,091,924 1,590,140 9,493,076

Other income (expense)
Interest expense (1,131,178 ) (440,457 ) (2,271,708 ) (759,685 ) (1,183,166 ) (900,039 ) (3,454,874 ) (1,659,724 )
Derivative financial instruments 3,527 — 9,606 —
Gain on change in fair value of derivative financial instruments 876 — 10,482 —
Other expense — (231,109 ) — (231,109 ) — — — (231,109 )
Net loss $ (1,493,065 ) $ (926,077 ) $ (3,170,029 ) $ (1,398,384 ) $ (1,344,383 ) $ (9,915,441 ) $ (4,514,412 ) $ (11,313,825 )

Net loss per common share, basic and diluted $ (0.12 ) $ (0.08 ) $ (0.26 ) $ (0.13 ) $ (0.11 ) $ (0.82 ) $ (0.37 ) $ (1.00 )

Weighted average number of common shares outstanding, basic and diluted 12,216,471 10,931,898 12,154,532 10,920,888 12,250,888 12,032,466 12,187,004 11,295,486

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

Page 2 of 4142

MESO NUMISMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)

For the ~~Six~~Nine Months Ended ~~June~~September 30, 2022

Series CC
Preferred Stock Series AA
Preferred Stock Series DD
Preferred Stock Common Stock Additional
Paid In Accumulated
Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Total
Balance, December 31, 2021         — $         — 1,050,000 $ 1,050 9,422 $         10 12,085,125 $ 12,086 $ 39,899,491 $ (46,669,644 ) $ (6,757,007 )
Issuance of stock for services — — — — — — 165,763 165 19,835 — 20,000
Issuance of preferred series DD for services — — — — 448 — — — 251,536 — 251,536
Net loss — — — — — — — — — (3,170,029 ) (3,170,029 )
Balance, June 30, 2022 — $ — 1,050,000 $ 1,050 9,870 $ 10 12,250,888 $ 12,251 $ 40,170,862 $ (49,839,672 ) $ (9,655,500 )
Series CC
Preferred
Stock Series AA
Preferred Stock Series DD
Preferred
Stock Common Stock Additional
Paid In Accumulated
Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Total
Balance, December 31, 2021 — $ — 1,050,000 $ 1,050 9,422 $ 10 12,085,125 $ 12,086 $ 39,899,491 $ (46,669,644 ) $ (6,757,006 )
Issuance of stock for services — — — — — — 165,763 165 19,835 — 20,000
Issuance of preferred series DD for services — — — — 448 — — — 251,536 — 251,536
Net loss — — — — — — — — — (4,514,412 ) (4,514,412 )
Balance, September 30, 2022 — $ — 1,050,000 $ 1,050 9,870 $ 10 12,250,888 $ 12,251 $ 40,170,862 $ (51,184,055 ) $ (10,999,882 )

For the Three Months Ended ~~June~~September 30, 2022

Series CC
Preferred Stock Series AA
Preferred Stock Series DD
Preferred Stock Common Stock Additional
Paid In Accumulated
Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Total
Balance, April 1, 2022       — $          — 1,050,000 $ 1,050 9,870 $          10 12,161,403 $ 12,162 $ 40,160,951 $ (48,346,607 ) $ (8,172,434 )
Issuance of stock for services — — — — — — 89,485 89 9,911 — 10,000
Net loss — — — — — — — — — (1,493,065 ) (1,493,065 )
Balance, June 30, 2022 — $ — 1,050,000 $ 1,050 9,870 $ 10 12,250,888 $ 12,251 $ 40,170,862 $ (49,839,672 ) $ (9,655,500 )
Series CC
Preferred Stock Series AA
Preferred Stock Series DD
Preferred Stock Common Stock Additional
Paid In Accumulated
Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Total
Balance, July 1, 2022       — $          — 1,050,000 $ 1,050 9,870 $          10 12,250,888 $ 12,251 $ 40,170,862 $ (49,839,672 ) $ (9,655,499 )
Net loss — — — — — — — — — (1,344,383 ) (1,344,383 )
Balance, September 30, 2022 — $ — 1,050,000 $ 1,050 9,870 $ 10 12,250,888 $ 12,251 $ 40,170,862 $ (51,184,055 ) $ (10,999,882 )

The accompanying notes are an integral part of these unaudited condensed consolidated financial ~~statements.~~statements

Page 3 of 4142

MESO NUMISMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
For the Nine Months Ended September 30, 2021
(Unaudited)

~~For the Six Months Ended June 30, 2021~~
Series CC
Preferred Stock Series AA
Preferred Stock Series BB
Preferred Stock Common Stock Additional
Paid In Accumulated 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 Capital Deficit Total 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 ) 1,000 $ 83,731 50,000 $ 50 279,146 $ 279 - $ - 10,869,596 $ 10,870 $ 27,364,393 $ (33,785,163 ) $ (6,409,571 )
Debt settlement — — — — — — 1,092,866 1,093 212,016 — 213,109 - - - - - - - - 1,092,866 1,093 212,016 - 213,109
Issuance of common stock for services — — — — — — 70,004 70 19,930 — 20,000 - - - - - - - - 70,004 70 19,930 - 20,000
Cancellation of Preferred BB — — — — (279,146 ) (279 ) — — 279 — —
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 — — — — — — — — 16,040 — 16,040 - - - - - - - - - - 24,192 - 24,192
Fair value of warrants — — — — — — — — 10,859,130 — 10,859,130 - - - - - - - - - - 5,703,537 - 5,703,537
Net loss — — — — — — — — — (1,398,384 ) (1,398,384 )
Balance, June 30, 2021 1,000 $ 83,731 50,000 $ 50 — $ — 12,032,466 $ 12,033 $ 38,471,788 $ (35,183,547 ) $ 3,300,324
Net income (Loss) - - - - - - - - - - (11,313,825 ) (11,313,825 )
Balance, September 30, 2021 - $ - 1,050,000 $ 1,050 - $ - 9,422 $ 10 12,032,466 $ 12,033 $ 39,577,315 $ (45,098,988 ) $ (5,508,580 )
~~For the Three Months Ended June 30, 2021~~
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, April 1, 2021 1,000 $ 83,731 50,000 $      50       — $        — 10,905,828 $ 10,906 $ 27,741,741 $ (34,257,470 ) $ (6,504,773 )
Debt settlement — — — — — — 1,092,866 1,093 212,016 — 213,109
Issuance of common stock for services — — — — — — 33,772 34 9,966 — 10,000
Imputed interest on debt — — — — — — — — 8,065 — 8,065
Fair value of warrants — — — — — — — — 10,500,000 — 10,500,000
Net loss — — — — — — — — (926,077 ) (926,077 )
Balance, June 30, 2021 1,000 $ 83,731 50,000 $ 50 — $ — 12,032,466 $ 12,033 $ 38,471,788 $ (35,183,547 ) $ 3,300,324

The accompanying notes are an integral part of these unaudited condensed consolidated financial ~~statements.~~statements

Page 4 of 4142
MESO NUMISMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
For the Three Months Ended September 30, 2021
(Unaudited)
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, July 1, 2021 1,000 $ 83,731 50,000 $ 50 - $ - 12,032,466 $ 12,033 $ 33,316,195 $ (35,183,547 ) $ (1,855,269 )
Issuance of preferred series DD for services-related party - - - - - - 448 1 - - 251,535 - 251,536
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 - - - - - - - - - - 8,152 - 8,152
Net income (Loss) - - - - - - - - - - - (9,915,441 ) (9,915,441 )
Balance, September 30, 2021 - $ - 1,050,000 $ 1,050 - $ - 9,422 10 12,032,466 $ 12,033 $ 39,577,315 $ (45,098,988 ) $ (5,508,580 )
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
Page 5 of 42

MESO NUMISMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Six Months Ended
June 30,
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (3,170,029 ) $ (1,398,384 )
Non-cash adjustments to reconcile net loss to net cash:
Amortization of debt discount 884,430 219,829
Depreciation and amortization expense 62,302 400
Change in derivative liabilities (9,606 ) —
Loss on legal settlement — 231,109
Common shares issued for services — 20,000
Imputed interest on debt — 16,040
Changes in operating assets and liabilities:
Accounts receivable (5,771 ) —
Prepaid expense 2,714 —
Accounts payable and accrued liabilities 1,323,430 211,835
CASH USED IN OPERATING ACTIVITIES (912,531 ) (699,171 )

CASH FLOWS FROM INVESTING ACTIVITIES
Loan to acquisition target — (250,000 )
Purchase of property and equipment (128,639 ) —
CASH USED IN INVESTING ACTIVITIES (128,639 ) (250,000 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt — 11,400,000
Principal payment of debt (12,823 ) —
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES (12,823 ) 11,400,000

Net increase (decrease) in cash (1,053,993 ) 10,450,829

Cash, beginning of year 2,978,525 42,534

Cash, end of year $ 1,924,532 $ 10,493,363
Cash paid for income tax $ — $ —
Cash paid for interest $ 207 $ —

NON-CASH FINANCING ACTIVITIES:
Warrants discount issued on debt $ — $ 10,859,130
Cancellation of preferred series BB $ — $ 279
Shares issued for legal settlement $ — $ 213,109
Issuance of preferred series DD $ 251,536 $ —
Issuance of common shares for services $ 20,000 $ —
For the Nine Months Ended
September 30,
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (4,514,412 ) $ (11,313,825 )
Non-cash adjustments to reconcile net loss to net cash:
Amortization of debt discount 1,319,796 500,338
Depreciation and amortization expense 102,184 13,347
Change in derivative liabilities (10,482 ) —
Loss on legal settlement — 213,109
Common shares issued for services — 20,000
Preferred shares issued for services — 251,536
Imputed interest on debt — 24,192
Changes in operating assets and liabilities:
Accounts receivable (69,007 ) (5,804 )
Prepaid expense 2,714 (7,000 )
Stock payable — 251,536
Due to related party — 8,116,269
Accounts payable and accrued liabilities 2,104,501 806,467
CASH USED IN OPERATING ACTIVITIES (1,064,706 ) (1,129,835 )

CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired in business combination, net of cash paid — 666,647
Purchase of property and equipment (129,901 ) —
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (129,901 ) 666,647

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt — 11,400,000
Proceeds from note receivable — (250,000 )
Principal payment of debt (14,282 ) (454 )
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES (14,282 ) 11,149,546

Net increase (decrease) in cash (1,208,889 ) 10,686,358

Cash, beginning of year 2,978,525 42,534

Cash, end of year $ 1,769,636 $ 10,728,892

Cash paid for income tax $ — $ —
Cash paid for interest $ 265 $ —

NON-CASH FINANCING ACTIVITIES:
Issuance of preferred series DD $ 251,536 $ —
Issuance of common shares for services $ 20,000 $ —
Warrants discount issued on debt $ — $ 5,703,537
Cancellation of preferred series BB $ — $ 279
Shares issued for legal settlement $ — $ 213,109
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
Deposit on acquisition $ — $ 175,000
Original issue discount on convertible debt and promissory notes $ — $ 1,200,000

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

Page 56 of 4142

MESO NUMISMATICS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
~~June~~September 30, 2022
(Unaudited)

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 over 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) 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 controlled, operated and owned 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, 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 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-1,000 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-1,000 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.

~~Page 6 of~~ 41
In consideration for the Assignment, Meso Numismatics, Inc.:

● Assumed 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.

Page 7 of 42
● 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.

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, the Company 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, the Company 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, the Company 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.

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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.

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 paid Lans Holdings Inc., by delivery to escrow, an amount equal to USD $8,200,000, which Cash Payment was 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.a. 1,000,000 shares of the Company’s Series AA Super Voting Preferred Stock;

b.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 occurred 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, the Company 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).

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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 accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Pure Hospitality Solutions, Inc., Meso Numismatics, Corp., and Global Stem Cells Group Inc. (since August 18, 2021). These condensed consolidated financial statements have been prepared and, in the opinion of management, contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the consolidated financial position and the consolidated statements of income and consolidated cash flows for the periods presented in conformity with generally accepted accounting principles for interim consolidated financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X, Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America. Operating results for the three and ~~six~~nine months ended ~~June~~September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the ~~Company's~~Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021, filed on May 5, 2022, which can be found at www.sec.gov. All significant intercompany transactions have been 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.~~

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 ~~June~~September 30, 2022 and December 31, 2021, all of the Company’s cash was deposited in major banking institutions. There were no cash equivalents as of ~~June~~September 30, 2022 and December 31, 2021. Our cash balances at financial institutions may exceed the Federal Deposit Insurance Company’s (FDIC) insured limit of $250,000 from time to time.

Accounts 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 allowance for doubtful accounts was $0 and $0 as of ~~June~~September 30, 2022 and December 31, 2021, respectively.

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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 quarter ended ~~June~~September 30, 2022.

Lease Accounting

The Company leases office space and clinical space under a lease arrangement. These properties are generally leased under non-cancelable agreements that contain lease terms in excess of twelve months on the date of entry as well as renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for base minimum rental payment, as well non-lease components including insurance, taxes, maintenance, and other common area costs.

At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of twelve months or less. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any prepayments to the lessor and initial direct costs such as brokerage commissions, less any lease incentives received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present value of the lease payments, discounted using the rate implicit in the contract if available or an estimate of our incremental borrowing rate for a collateralized loan with the same term as the underlying lease. The discount rates used for the initial measurement of lease liabilities as of the date of entry were based on the original lease terms.

Lease payments included in the measurement of lease liabilities consist of (i) fixed lease payments for the non-cancelable lease term, (ii) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised, and (iii) variable lease payments that depend on an underlying index or rate, based on the index or rate in effect at lease commencement. Certain real estate lease agreements require payments for non-lease costs such as utilities and common area maintenance. The Company has elected an accounting policy to not separate implicit components of the contract that may be considered non-lease related.

Lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. The lease payments are allocated between a reduction of the lease liability and interest expense. Depreciation of the right-of-use asset for operating leases reflects the use of the asset on straight-line basis over the expected term of the lease.

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 required to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by comparing the estimated 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, by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill.

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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 sale 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.

The Company’s main sources of revenue are comprised of the 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 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 or services.

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.

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Net Earnings (Losses) Per Common Share

The Company accounts 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 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 loss by the weighted average number of shares of common stock outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares. The effect of common stock equivalents is anti-dilutive with respect to losses and therefore basic and dilutive is the same

Diluted net loss per share 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 ~~June~~September 30, 2022 and December 31, 2021, respectively, because their inclusion would have been anti-dilutive.
June 30, December 31,
2022 2021
Convertible notes outstanding 216,716 75,710
Convertible preferred stock outstanding 37,647,060 37,647,060
Shares underlying warrants outstanding 103,500,000 103,500,000
141,363,776 141,222,770
September 30,
December 31,

2022 2021
Convertible notes outstanding 296,864 75,710
Convertible preferred stock outstanding 37,647,060 37,647,060
Shares underlying warrants outstanding 103,500,000 103,500,000
141,443,924 141,222,770

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 ~~June~~September 30, 2022 and December 31, 2021, the carrying amounts of the Company’s financial instruments, including cash, account payables, and accrued expenses, approximate their respective fair value due to the short-term nature of these instruments.

At ~~June~~September 30, 2022 and December 31, 2021, the Company does not have any assets or liabilities except for convertible notes payable required to be measured at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement.

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The following presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of ~~June~~September 30, 2022 and December 31, 2021:

Level 1 Level 2 Level 3 Total
June 30, 2022
Derivative liability 10,836 10,836
Total $       - $       - $ 10,836 $ 10,836

December 31, 2021
Derivative liability 20,442 20,442
Total $ - $ - $ 20,442 $ 20,442
Level 1 Level 2 Level 3 Total
September 30, 2022
Derivative liability      -      - 9,960 9,960
Total $ - $ - $ 9,960 $ 9,960

December 31, 2021
Derivative liability - - 20,442 20,442
Total $ - $ - $ 20,442 $ 20,442

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 ~~June~~September 30, 2022 and December 31, 2021, the Company had no items that represent comprehensive income or loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

Stock Based Compensation

Share-based compensation issued to employees is measured at the grant date, based on the fair value of the 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 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 March 2020, the FASB issued optional guidance to ease 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, 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 optional 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 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 prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material 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.

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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 guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

Other accounting standards and amendments to existing accounting standards that have been issued and have future effective dates are not applicable or are not expected to have a significant impact on the Company’s consolidated financial statements

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 ~~$50~~$51 million and a working capital deficit of ~~$3,350,619~~$4,221,016 as of ~~June~~September 30, 2022 and future losses are anticipated. These factors, among others, raise substantial doubt about the Company’s ability to continue as a 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.

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, 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.

NOTE 3 – REVENUE RECOGNITION

On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (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 periods ended June 30, 2022 and December 31, 2021.~~
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The Company recognizes 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 or services.

The following table presents the Company’s revenue by product category for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021:

For the Six Months Ended
June 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
Coins and banknotes $ 18,329 $ 20,212 $ 24,991 $ 31,671
Training 111,676 - 199,672 75,424
Product supplies 351,326 - 552,634 15,278
Equipment 133,268 - 211,661 62,881
Total revenue $ 614,599 $ 20,212 $ 988,958 $ 185,254

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

For the Six Months Ended
June 30, 2022
Global Stem Meso Total
Cells Group Numismatics
Revenue $ 596,270 $ 18,329 $ 614,599
Cost of revenue 343,035 16,439 359,474
Gross profit $ 253,235 $ 1,890 $ 255,125
Gross Profit % 42.47 % 10.31 % 41.51 %

Assets $ 999,502 $ 7,370,176 $ 8,369,678
Net loss $ (373,649 ) $ (2,796,380 ) $ (3,170,029 )
For the Nine Months Ended
September 30, 2022
Global Stem Meso
Cells Group Numismatics Total
Revenue $ 963,967 $ 24,991 $ 988,958
Cost of revenue 445,814 23,024 468,838
Gross profit $ 518,153 $ 1,967 $ 520,120
Gross Profit % 53.75 % 7.87 % 52.59 %

Assets $ 982,478 $ 7,249,616 $ 8,232,094
Net loss $ (436,472 ) $ (4,077,940 ) $ (4,514,412 )
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 world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern.” On January 31, 2020, U.S. Health and Human Services Secretary Alex M. Azar II declared a public health emergency for the United 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 COVID-19 has resulted in a widespread health crisis adversely affecting our 2022 and 2021 business, results of operations and 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.

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NOTE 4 – NOTES PAYABLE

Convertible Notes Payable

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 periods ending ~~June~~September 30, 2022 and December 31, 2021, the Company made $10,000 and $25,000, respectively payments on the outstanding convertible notes.

The balance of the convertible notes as of ~~June~~September 30, 2022 and December 31, 2021 is as follows:

June 30, December 31, September 30, December 31,
2022 2021 2022 2021
Convertible notes payable $ 62,252 $ 72,252 $ 62,252 $ 72,252
Less: Discount (26,850 ) (38,270 ) (24,142 ) (38,270 )
Convertible notes payable, net $ 35,402 $ 33,982 $ 38,110 $ 33,982

As of ~~June~~September 30, 2022 and December 31, 2021, the Company had approximately $251,144 of accrued interest.

As of ~~June~~September 30, 2022 and December 31, 2021, the principal balance of outstanding convertible notes payable was $62,252 and $72,252, respectively.

Promissory Notes Payable

During 2015, the Company entered into line of credit with Digital Arts Media Network treated as a promissory note. The promissory note bear interest at ten (10%) 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. As of ~~June~~September 30, 2022, the principal balance of the outstanding loan was $130,025 and accrued interest of ~~$86,046.~~$89,323.

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. As of ~~June~~September 30, 2022 and December 31, 2021, the principal balance of the promissory notes was $398,482.

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.

Page 1617 of 4142

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 $5,000, net of discount in the amount of $1,000 to the Company (see below).
On July 15, 2020, the Company entered into a Promissory Debentures with a lender in the amount of $84,000 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 $70,000, net of discount in the amount of $14,000 to the Company (see below).
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 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 restructuring. The Company recorded the fair value of the 15,000,000 warrants issued with debt at approximately $262,376 at December 31, 2020 as a discount. Lender is granted security interest and lien in all rights, title and interest in the assets and property of the as collateral.

On December 9, 2020, the Company entered into a Promissory Debentures with a lender in the amount of $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~~fifteen (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 issuance as a discount. This debt instrument is currently in default as of January 6, 2022.

On June 22, 2021, the Company entered into a Promissory Debentures with a lender in the amount of $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 our 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 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 ~~June~~September 30, ~~202,~~2022, the principal balance of the outstanding auto loan was ~~$2,953.~~$1,494.

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 note. In exchange for the gross 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 ~~June~~September 30, 2022, the principal balance of the outstanding loan was $400,000 and accrued interest totals ~~$133,318.~~$161,892. This debt instrument is currently in default due to the non-payment of interest.

Page 1718 of 4142

On September 20, 2021, the Company entered into a Promissory Debentures with a lender in the amount of $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 amount of $100,000 to the Company. The Company recorded the fair value of the 7,500,000 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 new 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 whole or in part at any time prior to maturity.

On December 30, 2021, the parties wished to modify the terms of the Promissory Debentures dated July 15, 2020 in the amount of $84,000 and accrued interest in the amount of $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.

The balance of the promissory as of ~~June~~September 30, 2022 and December 31, 2021 is as follows:

June 30, December 31, September 30, December 31,
2022 2021 2022 2021
Promissory notes payable $ 20,240,512 $ 20,243,335 $ 20,239,053 $ 20,243,335
Less: Discount (5,966,143 ) (6,822,622 ) (5,541,887 ) (6,822,622 )
Less: Deferred finance costs (65,936 ) (82,466 ) (57,534 ) (82,466 )
Promissory notes payable, net $ 14,208,433 $ 13,338,247 $ 14,639,632 $ 13,338,247

During the periods ending ~~June~~September 30, 2022 and December 31, 2021, the Company made ~~$2,823~~$14,282 and $1,812 payments, respectively on the outstanding promissory notes, and recorded ~~$1,387,278~~$2,135,079 and $1,781,394, respectively of interest expense and ~~$856,480~~$1,280,736 and $874,476, respectively of debt discount amortization expense. As of ~~June~~September 30, 2022 and December 31, 2021, the Company had approximately ~~$3,219,190~~$3,938,360 and $1,878,251, respectively of accrued interest. As of ~~June~~September 30, 2022 and December 31, 2021, the principal balance of outstanding promissory notes payable was ~~$20,240,512~~$20,239,055 and $20,243,335, respectively.

Derivatives Liabilities

The Company determined that the convertible notes outstanding as of ~~June~~September 30, 2022 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.

~~Page 18 of~~ 41
The Company determined the fair values of the embedded convertible notes derivatives and tainted convertible notes using a lattice valuation model with the following assumptions:

June 30, September 30,
2022 2022
Common stock issuable 216,716 296,864
Market value of common stock on measurement date $ 0.05 $ 0.03
Adjusted exercise price $ 0.06 $ 0.06
Risk free interest rate 2.51 % 3.79 %
Instrument lives in years 2.50 Year 2.25 Year
Expected volatility 111 % 105 %
Expected dividend yields None None

Page 19 of 42
The balance of the fair value of the derivative liability as of ~~June~~September 30, 2022 and December 31, 2021 is as follows:

Balance at December 31, 2020 $ - $ -
Additions 24,186 24,186
Fair value loss (3,744 ) (3,744 )
Conversions - -
Balance at December 31, 2021 20,442 20,442
Additions - -
Fair value gain (7,751 ) (8,627 )
Conversions (1,855 ) (1,855 )
Balance at June 30, 2022 $ 10,836
Balance at September 30, 2022 $ 9,960

NOTE 5 – CONVERTIBLE PREFERRED STOCK

Designation of Series CC 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, 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,~~therefore, 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?)~~(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.

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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~~
Page 20 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, 2021 and December 31, 2020, outside of permanent equity and liabilities.42

On November 12, 2020, the Company filed with the Secretary of State in Nevada the amendment to Certificate of Designation authorizing the increase from 1,000 to 8,000,000 shares of the Series CC Convertible Preferred Stock.

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. 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.

As of ~~June~~September 30, ~~2021~~2022 and December 31, 2021, the Company has no preferred shares of 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 6 – STOCKHOLDERS EQUITY

Common Shares

The Board of Directors and 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.

2021 Transactions

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

On April 16, 2021, the Company issued 33,772 shares of common stock for consulting services which were valued 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, which were valued in the amount of $213,109.

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.

2022 Transactions

On March 23, 2022, the Company issued 76,278 shares of common stock for consulting services which were valued in the amount of $10,000.

~~Page 20 of~~ 41
On May 5, 2022, the Company issued 89,485 shares of common stock for consulting services which were valued in the amount of $10,000.

As of ~~June~~September 30, 2022 and December 31, 2021, the Company has 12,250,888 and 12,085,125 common shares issued and outstanding, respectively.

Page 21 of 42
Warrants

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 were amended on August 18, 2021 to expire ~~three~~five years from ~~issuance~~initial exercise 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 periods ended ~~June~~September 30, 2022 and year ended December 2021:

Number of
Warrants Weighted
Average
Exercise
Price
Outstanding at year ended December 31, 2020 16,000,000 $ 0.030
Granted 87,500,000 0.091
Exercised - -
Expired - -
Outstanding at year ended December 31, 2021 103,500,000 $ 0.082
Granted - -
Exercised - -
Expired - -
Outstanding at quarter ended June 30, 2022 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%.
Number of
Warrants Weighted
Average
Exercise
Price
Outstanding at year ended December 31, 2020 16,000,000 $ 0.030
Granted 87,500,000 0.091
Exercised - -
Expired - -
Outstanding at year ended December 31, 2021 103,500,000 $ 0.082
Granted - -
Exercised - -
Expired - -
Outstanding at quarter ended September 30, 2022 103,500,000 $ 0.082

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 0.20% to 0.45%, term of 3 years, dividend rate of 0% and historical volatility within ranges 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, authorizing the issuance of up to eleven million (11,000,000) shares of preferred stock, 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, 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.

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All of the Holders of the Series AA Super Voting 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 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.

Page 22 of 42
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.

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 ~~June~~September 30, 2022 and December 31, 2021, the Company has 1,050,000 preferred shares of Series AA Preferred Stock issued and outstanding, respectively. During the period of these financial statements, no dividend was declared or paid on the Series AA preferred shares.

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.

~~Page 22 of~~ 41
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 Corporation.

Page 23 of 42
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.

As 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.

As of ~~June~~September 30, 2022 and December 31, 2021, the Company had no preferred 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 the board of directors established the rights, preferences and limitations thereof.

Each holder of outstanding shares of Series DD Convertible Preferred Stock shall be entitled to its shares of Series DD Convertible Preferred Stock 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.

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

The holders of the Series DD 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 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 $5,038,576 value of the 8,974 shares of Series DD Convertible Preferred Stock to 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 common stock of the Company on the date of conversion by 3.17 conversion price. The $5,038,576 value of the 8,974 shares of Series DD Convertible Preferred Stock represents the fair value of the consideration paid allocated to the assets and liabilities acquired from Global Stem Cells Group Inc.

~~Page 23 of~~ 41
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 included an issuance of 896 shares of Series DD Preferred Stock of the Company. An amount of 448 shares were issued on August 18, 2021 and the remaining 448 were issued February 18, 2022.

Page 24 of 42
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. The $251,536 value of the 448 shares of Series DD Convertible Preferred Stock to be issued February 18, 2022 was recorded as stock payable. The full amount of $503,552 was expensed at the date of grant, as a matter of accounting policy. There is $251,776 recorded as stock payable – related party due to Dave Christensen, CEO, at December 31, 2021.

On February 18, 2022, the Company issued to Dave Christensen, CEO, the 448 shares of Series DD Convertible Preferred Stock valued at $251,536 which was recorded as stock payable at December 31, 2021.

As of ~~June~~September 30, 2022 and December 31, 2021, the Company had 9,870 and 9,422 preferred shares of Series DD Convertible Preferred Stock issued and outstanding, respectively. During the period of these financial statements, no dividend was declared or paid on the Series DD preferred shares.

NOTE 7 – RELATED PARTY TRANSACTIONS

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. An amount of 448 shares were issued on August 18, 2021 and the remaining 448 were issued February 18, 2022. Amounts paid to Enterprise Technology Consulting, a Company 100% owned by Dave Christensen, CEO, for consulting services during the ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$15,000.~~$22,500.

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 ~~June~~September 30, 2022, the principal balance of the outstanding auto loan was ~~$2,953.~~$1,494.

On August 18, 2021, through a Stock Purchase Agreement the Company acquired 50,000,000 shares of common stock from Aesthetic Marketing Group, LLC which represented 100% of the outstanding shares. These shares were acquired from Aesthetic Marketing Group, LLC. Aesthetic Marketing Group, LLC 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 during the periods ending ~~June~~September 30, 2022 and December 31, 2021 in aggregate of ~~$90,461~~$119,143 and $101,175, respectively.

NOTE 8 – 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, among 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.

Page 2425 of 4142

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 $5,568.

NOTE 9 – PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

June 30,
2022 December 31,
2021 September 30,
2022 December 31,
2021
Computer, equipment and vehicles (5 year useful life) $ 153,054 $ 66,445 $ 153,196 $ 66,445
Leasehold improvements (2 year useful life) 63,562 64,681 -
Less: accumulated depreciation (57,469 ) (43,536 ) (72,766 ) (43,536 )
Total property and equipment, net $ 159,147 $ 22,909 $ 145,112 $ 22,909

During the period ending June 30, 2022, the Cancun lab was completed and $121,332 of equipment and leaseholds in prepaid was capitalized along with $28,838 of equipment and leaseholds purchased during the three months ended ~~June~~September 30, 2022.

Depreciation expense for the ~~six~~nine months ended ~~June~~September 30, 2022 and ~~June~~September 30, 2021 was ~~$13,933~~$29,230 and ~~$400,~~$1,856, respectively.

NOTE 10 – 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.

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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.

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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.

The following table presents the supplemental consolidated financial results of the Company on an unaudited pro forma basis, as if the acquisition had been consummated on January 1, 2021 through the periods shown below. The primary adjustments reflected in the pro forma results relate to (1) adjustment to remove transaction costs associated with the acquisition of Global Stem Cells Group Inc from the pro forma income statements, (2) adjustments to recorded depreciation and amortization expenses as a result of the acquisition, and (3) the income tax effect of the unaudited pro forma adjustments above using statutory tax rates.

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The unaudited pro forma financial information presented below does not purport to represent the actual results of operations that Meso Numismatics, Inc and Global Stem Cells Group Inc would have achieved had the companies been combined during the periods presented and is not intended to project the future results of operations that the combined company may achieve after the acquisition. The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, long-term debt pay down estimates, financial synergies or other strategic benefits that may be realized as a result of the acquisition and also does not reflect any restructuring costs to achieve those benefits.

For Year Ended
December 31,
2021
Revenue $ 1,089,976
Net loss $ (12,999,298 )
Earnings per share $ (1.13 )
For the Nine
Months Ended
September 30,
2021
Revenue $ 1,089,976
Net loss $ (12,999,298 )
Earnings per share $ (1.13 )

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.

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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:

June 30,
2022 December 31,
2021 September 30,
2022 December 31,
2021
Tradename - Trademarks $ 87,700 $ 87,700 $ 87,700 $ 87,700
Intellectual Property / Licenses 363,000 363,000 363,000 363,000
Customer Base 37,000 37,000 37,000 37,000
Intangible assets 487,700 487,700 487,700 487,700
Less: accumulated amortization (84,445 ) (36,076 ) (109,030 ) (36,076 )
Total intangible assets, net $ 403,255 $ 451,624 $ 378,670 $ 451,624

Amortization is computed on straight-line method based on estimated useful lives of 5 years. During the ~~six~~nine months ended ~~June~~September 30, 2022 and ~~June~~September 30, 2021, the Company recorded amortization expense of the intellectual property of ~~$48,369~~$72,954 and ~~$0,~~$11,491, respectively.

NOTE 12 – OPERATING LEASES

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).

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The following table summarizes the Company’s undiscounted cash payment obligations for its non-cancelable lease liabilities through the end of the expected term of the lease:

2022 $ 24,427 $ 24,427
2023 27,140 18,998
2024 — —
2025 — —
2026 — —
Total undiscounted cash payments 51,567 43,425
Less interest (2,855 ) (2,016 )
Present value of payments $ 48,712 $ 41,409

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 $5,568.

NOTE 14 – PREPAID EXPENSES

During the period ending March 31, 2022, 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 $121,332. The Cancun facility is to be inaugurated in May 2022 is accredited both by the Mexican General Health Council and Cofepris (Mexican FDA).

During the period ending June 30, 2022, the Cancun lab was completed and $121,332 of equipment and leaseholds in prepaid was capitalized along with $28,838 of equipment and leaseholds purchased during the three months ended June 30, 2022.

NOTE 15 – SUBSEQUENT EVENTS

On October 28, 2022, we entered into an Agreement of Conveyance, Transfer and Assignment of Subsidiary with our prior officer and director, Mr. Melvin Pereira, pursuant to which we agreed to sell Mr. Pereira 100% of our interest in Meso Numismatics Corp., a Florida corporation. In ~~accordance with ASC 855-10,~~exchange, Mr. Pereira has agreed to assume all of the liabilities of Meso Numismatics, provide whatever financial and other materials needed by us to prepare and complete our financial statements for reporting purposes, and to not disparage our company.
As a result of this transaction, we are no longer engaged in the sale of coins, paper currency, bullion and medals and we have ~~analyzed events and transactions that occurred subsequent to June 30, 2022 through~~moved into what we believe is a more lucrative opportunity for our company, the ~~date these financial statements were issued and have determined that we do not have any other material subsequent events to disclose or recognize in these financial statements.~~operations of Global Stem Cell Group.

Page 28 of 4142

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, cybersecurity, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further, information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview

Since the acquisition of Global Stem Cell Group in August last year, our focus has been mainly dedicated to its operations serving the markets in the regenerative medicine industry. We still have numismatics operation, but the overall plan for the company is too move from the sale of coins, paper currency, bullion and medals into what we believe is a more lucrative opportunity for our company.

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.

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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.
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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.
Results of Operations

Results of Operations for the Three Months Ended ~~June~~September 30, 2022 and 2021.

Below is a summary of the results of operations for the three months ended ~~June~~September 30, 2022 and 2021.

For the Three Months Ended
June 30,
2022 2021 $
Change %
Change
Revenue $ 304,521 $ 15,769 $ 288,752 1,831 %
Cost of revenue 155,881 11,860 144,021 1,214 %
Gross profit 148,641 3,909 144,732 3,703 %

Operating expenses
Advertising and marketing 80,961 144 80,817 56,123 %
Professional fees 196,330 215,458 (19,128 ) -9 %
Officer compensation 22,500 19,099 3,401 18 %
Depreciation and
amortization expense 35,325 200 35,125 17,562 %
Investor relations 47,634 17,574 30,060 171 %
General and administrative 131,304 5,945 125,359 2,109 %
Total operating expenses 514,054 258,420 255,634 99 %

Other income (expense)
Interest expense (1,131,178 ) (440,457 ) (690,721 ) 157 %
Derivative financial
instruments 3,527 —   3,527 00 %
Other expense —   (231,109 ) 231,109 -100 %
Net loss $ (1,493,065 ) $ (926,077 ) $ (566,987 ) 61 %
For the Three Months Ended September 30,
2022 2021 $ Change % Change
Revenue $ 374,359 $ 165,042 $ 209,317 126.83 %
Cost of revenue 109,364 88,520 20,844 23.55 %
Gross profit 264,995 76,522 188,473 246.30 %

Operating expenses
Advertising and marketing 80,931 22,351 58,580 262.09 %
Professional fees 143,118 336,299 (193,181 ) -57.44 %
Officer compensation 22,500 518,833 (496,333 ) -95.66 %
Depreciation and
amortization expense 39,882 12,947 26,935 208.04 %
Investor relations 32,749 32,574 175 0.54 %
General and administrative-
related party - 8,116,269 (8,116,269 ) -100 %
General and administrative 107,908 52,651 55,257 104.95 %
Total operating expenses 427,088 9,091,924 (8,664,836 ) -95.30 %

Other income (expense)
Interest expense (1,183,166 ) (900,039 ) (283,127 ) 31.46 %
Derivative financial
instruments 876 — 876 00 %
Net loss $ (1,344,383 ) $ (9,915,441 ) $ 8,571,058 -86.44 %
Page 30 of 42

Revenue

Revenue increased by ~~1,831%~~126.83% in the amount of ~~$288,752~~$209,317 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021. The key reason for the increase in revenue was a result of the acquisition of Global Stem Cells Group, Inc. on August 18, 2021. Revenue from viable cell therapy and immune support related products along with physician training ~~was $297,521 and~~increased by $214,114 offset by a decrease in sale of coins, metals and paper money of ~~$8,769~~$4,797 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021.
~~Page 30 of~~ 41

Listed below are the revenues, cost of revenues and gross profits by Company for the three months ended ~~June~~September 30, 2022:

For the Three Months Ended
June 30, 2022
For the Three Months Ended
September 30, 2022

Global Stem
Cells Group

Meso
Numismatics
Total Global Stem
Cells Group Meso
Numismatics Total
Revenue $ 297,521 $ 7,000 $ 304,521 $ 367,697 $ 6,662 $ 374,359
Cost of revenue 150,551 5,330 155,881 102,779 6,585 109,364
Gross profit $ 146,970 $ 1,670 $ 148,640 $ 264,918 $ 77 $ 264,995
Gross profit % 49.40 % 23.86 % 48.81 % 72.05 % 1.16 % 70.79 %

We expect to increase our revenues in future quarters from our operations associated with Global Stem Cells with less expected revenues in future quarters associated with our numismatic operations.

Operating expenses

Operating expenses ~~increased~~decreased by ~~99%~~95% in the amount of ~~$255,634~~$8,664,836 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021. Listed below are the major changes to operating expenses:

Advertising and marketing fees increased by ~~$80,817~~$58,580 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to the acquisition of Global Stem Cells Group, Inc. on August 18, 2021.

Professional fees decreased by $193,181 for the three months ended September 30, 2022, compared to the same period in 2021, primarily due to audit and accounting expenses due to the acquisition of Global Stem Cells Group, Inc. on August 18, 2021.
Officer compensation decreased by $496,333 for the three months ended September 30, 2022, compared to the same period in 2021, primarily due to the 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.
Page 31 of 42
Depreciation and amortization increased by ~~$35,125~~$26,935 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to completion of Cancun lab in May 2022.

General and ~~administrative~~administrative-related party expense ~~increase~~decrease by ~~$125,359~~$8,116,269 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to the issuance of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock to Lans Holdings Inc. terminated and replaced with 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 expense increase by $55,257 for the three months ended September 30, 2022, compared to the same period in 2021, primarily due to the acquisition of Global Stem Cells Group, Inc. on August 18, 2021.

Other expense

Other expense increased by ~~$456,085~~$282,251 for the three months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily as a result of the increase in interest on promissory notes. During the ~~six~~nine months ended ~~June~~September 30, 2021, we received $11,400,000 in proceeds received from the issuance of promissory notes. We expect other expense to increase in future quarters as a result of the interest on the new debt.

Net Loss

We recorded a net loss of ~~$1,493,065~~$1,344,383 for the three months ended ~~June~~September 30, 2022, as compared with a net loss of ~~$926,077~~$9,915,441 for the same in 2021.

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Results of Operations for the ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021.

Below is a summary of the results of operations for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021.

For the Six Months Ended June 30, For the Nine Months Ended September 30,
2022 2021 $ Change %
Change 2022 2021 $ Change % Change
Revenue $ 614,599 $ 20,212 $ 594,387 2,941 % $ 988,958 $ 185,254 $ 803,704 433.84 %
Cost of revenue 359,474 26,650 332,824 1,249 % 468,838 115,170 353,668 307.08 %
Gross profit 255,126 (6,438 ) 261,564 -4,063 % 520,120 70,084 450,036 642.14 %

Operating expenses
Advertising and marketing 135,575 381 135,194 35,484 % 216,506 22,732 193,774 852.43 %
Professional fees 592,069 329,245 262,824 80 % 735,186 665,544 69,642 10.46 %
Officer compensation 45,000 34,099 10,901 32 % 67,500 552,932 (485,432 ) -87.79 %
Depreciation and
amortization expense 62,302 400 61,902 15,476 % 102,184 13,347 88,837 665,59 %
Investor relations 94,884 20,472 74,412 363 % 127,633 53,046 74,587 140.61 %
General and administrative- related party - 8,116,269 (8,116,269 ) -100.00 %
General and administrative 233,222 16,555 216,667 1,309 % 341,131 69,206 271,925 392.92 %
Total operating expenses 1,163,052 401,152 761,900 190 % 1,590,140 9,493,076 (7,902,936 ) -83.25 %

Other income (expense)
Interest expense (2,271,708 ) (759,685 ) (1,512,023 ) 199 % (3,454,874 ) (1,659,724 ) 1,795,150 108.16 %
Derivative financial
instruments 9,606 —   9,606 00 % 10,482 — 10,482 0.00 %
Other expense —   (231,109 ) 231,109 -100 % — (231,109 ) 231,109 -100.00 %
Net loss $ (3,170,028 ) $ (1,398,384 ) $ (1,771,644 ) 127 % $ (4,514,412 ) $ (11,313,825 ) $ 6,799,413 -60.10 %
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Revenue

Revenue increased by ~~2,941%~~433.84% in the amount of ~~$594,387~~$803,704 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021. The key reason for the increase in revenue was a result of the acquisition of Global Stem Cells Group, Inc. on August 18, 2021. Revenue from viable cell therapy and immune support related products along with physician training ~~was $596,270 and~~increased by $810,384 offset by a decrease in sale of coins, metals and paper money of ~~$1,883~~$6,680 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021.

Listed below are the revenues, cost of revenues and gross profits by Company for the ~~six~~nine months ended ~~June~~September 30, 2022:

For the Six Months Ended
June 30, 2022
For the Nine Months Ended
September 30, 2022

Global Stem
Cells Group

Meso
Numismatics
Total Global Stem
Cells Group Meso
Numismatics Total
Revenue $ 596,270 $ 18,329 $ 614,599 $ 963,967 $ 24,991 $ 988,958
Cost of revenue 343,035 16,439 359,474 445,814 23,024 468,838
Gross profit $ 253,235 $ 1,890 $ 255,125 $ 518,153 $ 1,967 $ 520,120
Gross profit % 42.47 % 10.31 % 41.51 % 53.75 % 7.87 % 52.59 %

We expect to increase our revenues in future quarters from our operations associated with Global Stem Cells with less expected revenues in future quarters associated with our numismatic operations.

~~Page 32 of~~ 41
Operating expenses

Operating expenses ~~increased~~decreased by ~~190%~~83.25% in the amount of ~~$761,900~~$7,902,936 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021. Listed below are the major changes to operating expenses:

Advertising and marketing fees increased by ~~$135,194~~$193,774 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to the acquisition of Global Stem Cells Group, Inc. on August 18, 2021.

Professional fees increased by ~~$262,824~~$69,642 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to audit and accounting expenses.

Officer compensation decreased by $485,432 for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to the 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.
Depreciation and amortization increased by ~~$61,902~~$88,837 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to completion of Cancun lab in May 2022.

General and administrative-related party expense decrease by $8,116,269 for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to the issuance of the 1,000 shares of the Company’s Series CC Convertible Preferred Stock to Lans Holdings Inc. terminated and replaced with a cash payment as consideration. The Company shall pay 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 expense increase by ~~$216,667~~$271,925 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily due to the acquisition of Global Stem Cells Group, Inc. on August 18, 2021.

Page 33 of 42
Other expense

Other expense increased by ~~$1,271,308~~$1,553,559 for the ~~six~~nine months ended ~~June~~September 30, 2022, compared to the same period in 2021, primarily as a result of the increase in interest on promissory notes. During the ~~six~~nine months ended ~~June~~September 30, 2021, we received $11,400,000 in proceeds received from the issuance of promissory notes. We expect other expense to increase in future quarters as a result of the interest on the new debt.

Net Loss

We recorded a net loss of ~~$3,170,029~~$4,514,412 for the ~~six~~nine months ended ~~June~~September 30, 2022, as compared with a net loss of ~~$1,398,384~~$11,313,825 for the same in 2021.

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 ~~June~~September 30, 2022 and December 31, 2021.

June 30, 2022 December 31,
2021 $ Change %
Change
Cash and cash equivalents $ 1,924,532 $ 2,978,525 $ (1,053,993 )    -35 %
September 30, December 31, $ %
2022 2021 Change Change
Cash and cash equivalents $ 1,769,636 $ 2,978,525 $ (1,208,889 ) -40.59 %

Summary of Cash Flows

Below is a summary of the Company’s cash flows for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021.

For the Six Months Ended
June 30,

2022 2021
Net cash used in operating activities $ (912,531 ) $ (699,171 )
Net cash used in financing activities (128,639 ) (250,000 )
Net cash provided by/ (used in) financing activities (12,823 ) 11,400,000
Net increase (decrease) in cash and cash equivalents $ (1,053,993 ) $ 10,450,829
~~Page 33 of~~ 41
For the Nine Months Ended
September 30,
2022 2021
Net cash used in operating activities $ (1,064,706 ) $ (1,129,835 )
Net cash provided by (used in) investing activities (129,901 ) 666,647
Net cash provided by (used in) financing activities (14,282 ) 11,149,546
Net increase (decrease) in cash and cash equivalents $ (1,208,889 ) $ 10,686,358

Operating activities

Net cash used in operating activities was ~~$912,531~~$1,064,706 during the ~~six~~nine months ended ~~June 30,~~September30, 2022 and consisted of a net loss of ~~$3,170,029,~~$4,514,412, which was offset by a net change in operating assets and liabilities of ~~$1,320,372~~$2,038,208 and non-cash items of ~~$937,126.~~$1,411,498. The non-cash items for the ~~six~~nine months ended ~~June~~September 30, 2022, consisted of depreciation and amortization expenses of ~~$62,302~~$102,184 and amortization of debt discount of ~~$884,430,~~$1,319,796, partially offset by the change in derivative liabilities of ~~$9,606.~~$10,482. The significant change in operating assets and liabilities was an increase in accounts payable and accrued liabilities, partially offset by the decrease in accounts receivable and prepaid expense.

Page 34 of 42
Net cash used in operating activities was ~~$699,171~~$1,129,835 during the ~~six~~nine months ended ~~June~~September 30, 2021 and consisted of a net loss of ~~$1,398,384,~~$11,313,825, which was offset by a net change in operating assets and liabilities of ~~$229,834~~$9,161,467 and non-cash items of ~~$469,378.~~$1,022,522. The primary non-cash items for the ~~six~~nine months ended ~~June~~September 30, 2021, consisted of amortization of debt discount of ~~$219,829~~$500,338 and shares issued for services and settlement of debt of ~~$233,109.~~$464,645. The significant change in operating assets and liabilities was an increase in accounts payable and accrued ~~liabilities.~~liabilities along with amount due Lans Holdings.

Investing activities

Net cash used in investing activities was ~~$128,639~~$129,901 consisted of purchase of property and equipment associated with the completion of the Cancun lab during the ~~six~~nine months ended ~~June~~September 30, 2022.

Net cash ~~used in~~provided by investing activities was ~~$250,000~~$666,647 consisted of cash acquired in business combination and cash to Global Stem Cells Group Inc. during the ~~six~~nine months ended ~~June~~September 30, 2021.

Financing activities

Net cash used in financing activities was ~~$12,823~~$14,282 consisted of principal payment of debt for the ~~six~~nine months ended ~~June~~September 30, 2022.

Net cash provided by financing activities was ~~$11,400,000~~$11,149,546 consisted of proceeds received from the issuance of promissory notes of $11,400,000 offset by proceeds from note receivable of $250,000 and principle payment on debt of $454 for the ~~six~~nine months ended ~~June~~September 30, 2021.

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 ~~$49,839,672~~$51 million and ~~negative~~a working capital deficit of ~~$3,350,619~~$4,221,015 as of ~~June~~September 30, 2022 and future losses are anticipated. These factors, among others, raise substantial doubt ~~as to its~~about the Company’s 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.~~continue as a 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 may 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, 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.

~~Page 34 of~~ 41
Off-Balance Sheet Arrangements

As of ~~June~~September 30, 2022, the Company had no off-balance sheet arrangements.

Critical Accounting Policies

Our critical accounting policies have not materially changed during the ~~six~~nine months ended ~~June~~September 30, 2022. 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.
Page 35 of 42

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

Share-based compensation issued to employees is measured at the grant date, based on the fair value of the 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 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 March 2020, the FASB issued optional guidance to ease 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, 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 optional 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 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 prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material 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.

~~Page 35 of~~ 41
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 guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

Other accounting standards and amendments to existing accounting standards that have been issued and have future effective dates are not applicable or are not expected to have a significant impact on the Company’s consolidated financial statements
Page 36 of 42

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 sale 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

The Company’s main sources of revenue are comprised of the 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 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 or services.

~~Page 36 of~~ 41
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.
Page 37 of 42

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 ~~June~~September 30, 2022 and December 31, 2021, the carrying amounts of the Company’s financial instruments, including cash, account payables, and accrued expenses, approximate their respective fair value due to the short-term nature of these instruments.

At ~~June~~September 30, 2022 and December 31, 2021, the Company does not have any assets or liabilities except for derivative liabilities and convertible notes payable required to be measured at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement.

Item 3. 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 4. 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.

Page 3738 of 4142

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.

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 ~~six~~nine months ended ~~June~~September 30, 2022. 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. 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. The Company failed to account for the acquisition of GSCG using the full purchase accounting method in accordance with ASC 805.

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. We have not remedied the material weaknesses as of ~~June~~September 30, 2022. The Company plans to take remedial action to address these weaknesses during the fiscal year ended 2022.

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 quarter ended June 30, 2022 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.

Page 3839 of 4142

PART II – OTHER INFORMATION

Item 1. 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 1A. Risk Factors

See risk factors included in our Annual Report on Form 10-K for 2021, filed with the SEC on May 5, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~On March 23, 2022, the Company issued 76,278 shares of common stock for consulting services which were valued in the amount of $10,000.~~
~~On May 5, 2022, the Company issued 89,485 shares of common stock for consulting services which were valued in the amount of $10,000.~~
These securities were issued pursuant to Section 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. The holders represented their intention to acquire the securities for investment only and not with a view towards distribution. The investors were given adequate information about us to make an informed investment decision. We did not engage in any general solicitation or advertising. We directed our transfer agent to issue the stock certificates with the appropriate restrictive legend affixed to the restricted stock.None.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

N/A

Item 5. Other Information

None.

Page 3940 of 4142

Item 6.Exhibits

Exhibit
Number Description of Exhibit
31.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS** Inline XBRL Instance Document.
101.SCH** Inline XBRL Taxonomy Extension Schema Document.
101.CAL** Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF** Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB** Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE** Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104** Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

** Provided herewith

Page 4041 of 4142

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 on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

Dated ~~August 15,~~November 8, 2022 MESO NUMISMATICS, INC.

By: /s/ David Christensen
David Christensen

President, Chief Executive Officer,
Chief Financial Officer, Secretary and Director
(Principal Executive Officer)
(Principal Financial Officer)
(Principal Accounting Officer)

Page 4142 of 4142

iso4217:USD xbrli:shares

	September 30,			December 31,
	2022			2021
	(Unaudited)			*
ASSETS
Current assets
Cash and cash equivalents	$	1,769,636		$	2,978,525
Accounts receivable		86,262			17,257
Prepaid expenses		—			24,245
Total current assets		1,855,898			3,020,027
Property and equipment, net		145,112			22,909
Other assets		5,568			5,568
Intangible assets, net		378,670			451,624
Right of use asset, net		41,408			—
Goodwill		5,805,438			5,805,438
Total assets	$	8,232,094		$	9,305,566

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	279,372		$	250,755
Accrued interest		4,189,504			2,129,395
Customer advances		33,990			18,215
Stock payable – related party		—			251,536
Stock payable		—			20,000
Derivative liability		9,960			20,442
Lease liability, current portion		32,568			—
Notes payable, net		1,531,519			1,527,711
Total current liabilities		6,076,913			4,218,054

Long term liabilities
Lease liability, net of current portion		8,840			—
Convertible notes payable, net of discount		38,110			33,982
Notes payable – related parties		7,800			7,800
Notes payable, net of discount		13,100,313			11,802,736
Total liabilities	$	19,231,976		$	16,062,572

Stockholders’ deficit
Preferred stock, $0.001 par value 1,050,000 shares authorized as Series AA; 1,050,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021		1,050			1,050
Preferred stock, $0.001 par value; 10,000 shares authorized as Series DD; 9,870 and 9,422 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively		10			10
Common stock, $0.001 par value; 6,500,000,000 shares authorized; 13,853,202 and 13,687,439 shares issued and issuable and 12,250,888 and 12,085,125 shares outstanding as of September 30, 2022 and December 31, 2021, respectively		12,251			12,086
Additional paid in capital		40,170,862			39,899,491
Accumulated deficit		(51,184,055	)		(46,669,643	)
Total stockholders’ deficit		(10,999,882	)		(6,757,006	)
Total liabilities and stockholders’ deficit	$	8,232,094		$	9,305,566

	June 30,			December 31,
	2022			2021
	(Unaudited)			*
ASSETS
Current assets
Cash and cash equivalents	$	1,924,532		$	2,978,525
Accounts receivable		23,027			17,256
Prepaid expenses		—			24,245
Total current assets		1,947,558			3,020,027
Property and equipment, net		159,147			22,909
Other assets		5,568			5,568
Intangible assets, net		403,255			451,624
Right of use asset, net		48,712			—
Goodwill		5,805,438			5,805,438
Total assets	$	8,369,678		$	9,305,566

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	230,031		$	250,756
Accrued interest		3,470,334			2,129,395
Customer advances		21,430			18,215
Stock payable – related party		—			251,536
Stock payable		—			20,000
Derivative liability		10,836			20,442
Lease liability, current portion		32,568			—
Notes payable, net		1,532,978			1,527,711
Total current liabilities		5,298,177			4,218,055

Long term liabilities
Lease liability, net of current portion		16,144			—
Convertible notes payable, net of discount		35,402			33,982
Notes payable – related parties		7,800			7,800
Notes payable, net of discount		12,667,655			11,802,736
Total liabilities	$	18,025,177		$	16,062,573

Stockholders' deficit
Preferred stock, $0.001 par value 1,050,000 shares authorized as Series AA; 1,050,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021		1,050			1,050
Preferred stock, $0.001 par value; 10,000 shares authorized as Series DD; 9,870 and 9,422 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		10			10
Common stock, $0.001 par value; 6,500,000,000 shares authorized; 13,853,202 and 13,687,439 shares issued and issuable and 12,250,888 and 12,085,125 shares outstanding as of June 30, 2022 and December 31, 2021, respectively		12,251			12,086
Additional paid in capital		40,170,862			39,899,491
Accumulated deficit		(49,839,672	)		(46,669,643	)
Total stockholders' deficit		(9,655,500	)		(6,757,007	)
Total liabilities and stockholders' deficit	$	8,369,678		$	9,305,566

	For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021			2022			2021			2022			2021
Revenue	$	304,521		$	15,769		$	614,599		$	20,212		$	374,359		$	165,042		$	988,958		$	185,254
Cost of revenue		155,881			11,860			359,474			26,650			109,364			88,520			468,838			115,170
Gross profit (loss)		148,640			3,909			255,125			(6,438	)		264,995			76,522			520,120			70,084

Operating expenses
Advertising and marketing		80,961			144			135,575			381			80,931			22,351			216,506			22,732
Professional fees		196,330			215,458			592,069			329,245			143,118			336,299			735,186			665,544
Officer compensation		22,500			19,099			45,000			34,099			22,500			518,833			67,500			552,932
Depreciation and amortization expense		35,325			200			62,302			400			39,882			12,947			102,184			13,347
Investor relations		47,634			17,574			94,884			20,472			32,749			32,574			127,633			53,046
General and administrative- related party														—			8,116,269			—			8,116,269
General and administrative		131,304			5,945			233,222			16,555			107,907			52,651			341,131			69,206
Total operating expenses		514,054			258,420			1,163,052			401,152			427,087			9,091,924			1,590,140			9,493,076

Other income (expense)
Interest expense		(1,131,178	)		(440,457	)		(2,271,708	)		(759,685	)		(1,183,166	)		(900,039	)		(3,454,874	)		(1,659,724	)
Derivative financial instruments		3,527			—			9,606			—
Gain on change in fair value of derivative financial instruments														876			—			10,482			—
Other expense		—			(231,109	)		—			(231,109	)		—			—			—			(231,109	)
Net loss	$	(1,493,065	)	$	(926,077	)	$	(3,170,029	)	$	(1,398,384	)	$	(1,344,383	)	$	(9,915,441	)	$	(4,514,412	)	$	(11,313,825	)

Net loss per common share, basic and diluted	$	(0.12	)	$	(0.08	)	$	(0.26	)	$	(0.13	)	$	(0.11	)	$	(0.82	)	$	(0.37	)	$	(1.00	)

Weighted average number of common shares outstanding, basic and diluted		12,216,471			10,931,898			12,154,532			10,920,888			12,250,888			12,032,466			12,187,004			11,295,486

	Series CC Preferred Stock				Series AA Preferred Stock				Series DD Preferred Stock				Common Stock				Additional Paid In		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Total
Balance, December 31, 2021		—	$	—		1,050,000	$	1,050		9,422	$	10		12,085,125	$	12,086	$	39,899,491	$	(46,669,644	)	$	(6,757,007	)
Issuance of stock for services		—		—		—		—		—		—		165,763		165		19,835		—			20,000
Issuance of preferred series DD for services		—		—		—		—		448		—		—		—		251,536		—			251,536
Net loss		—		—		—		—		—		—		—		—		—		(3,170,029	)		(3,170,029	)
Balance, June 30, 2022		—	$	—		1,050,000	$	1,050		9,870	$	10		12,250,888	$	12,251	$	40,170,862	$	(49,839,672	)	$	(9,655,500	)

	Series CC Preferred Stock				Series AA Preferred Stock				Series DD Preferred Stock				Common Stock				Additional Paid In		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Total
Balance, December 31, 2021		—	$	—		1,050,000	$	1,050		9,422	$	10		12,085,125	$	12,086	$	39,899,491	$	(46,669,644	)	$	(6,757,006	)
Issuance of stock for services		—		—		—		—		—		—		165,763		165		19,835		—			20,000
Issuance of preferred series DD for services		—		—		—		—		448		—		—		—		251,536		—			251,536
Net loss		—		—		—		—		—		—		—		—		—		(4,514,412	)		(4,514,412	)
Balance, September 30, 2022		—	$	—		1,050,000	$	1,050		9,870	$	10		12,250,888	$	12,251	$	40,170,862	$	(51,184,055	)	$	(10,999,882	)

	Series CC Preferred Stock				Series AA Preferred Stock				Series BB Preferred Stock						Common Stock				Additional Paid In		Accumulated						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		Capital		Deficit			Total			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	)		1,000		$	83,731			50,000	$	50		279,146		$	279			-	$	-		10,869,596	$	10,870	$	27,364,393	$	(33,785,163	)	$	(6,409,571	)
Debt settlement		—		—		—		—		—			—			1,092,866		1,093		212,016		—			213,109			-			-			-		-		-			-			-		-		1,092,866		1,093		212,016		-			213,109
Issuance of common stock for services		—		—		—		—		—			—			70,004		70		19,930		—			20,000			-			-			-		-		-			-			-		-		70,004		70		19,930		-			20,000
Cancellation of Preferred BB		—		—		—		—		(279,146	)		(279	)		—		—		279		—			—
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		—		—		—		—		—			—			—		—		16,040		—			16,040			-			-			-		-		-			-			-		-		-		-		24,192		-			24,192
Fair value of warrants		—		—		—		—		—			—			—		—		10,859,130		—			10,859,130			-			-			-		-		-			-			-		-		-		-		5,703,537		-			5,703,537
Net loss		—		—		—		—		—			—			—		—		—		(1,398,384	)		(1,398,384	)
Balance, June 30, 2021		1,000	$	83,731		50,000	$	50		—		$	—			12,032,466	$	12,033	$	38,471,788	$	(35,183,547	)	$	3,300,324
Net income (Loss)																												-			-			-		-		-			-			-				-		-		-		(11,313,825	)		(11,313,825	)
Balance, September 30, 2021																												-		$	-			1,050,000	$	1,050		-		$	-			9,422	$	10		12,032,466	$	12,033	$	39,577,315	$	(45,098,988	)	$	(5,508,580	)

	Level 1		Level 2		Level 3		Total
June 30, 2022
Derivative liability						10,836		10,836
Total	$	-	$	-	$	10,836	$	10,836

December 31, 2021
Derivative liability						20,442		20,442
Total	$	-	$	-	$	20,442	$	20,442

	For the Six Months Ended
	June 30, 2022
	Global Stem			Meso			Total
	Cells Group			Numismatics
Revenue	$	596,270		$	18,329		$	614,599
Cost of revenue		343,035			16,439			359,474
Gross profit	$	253,235		$	1,890		$	255,125
Gross Profit %		42.47	%		10.31	%		41.51	%

Assets	$	999,502		$	7,370,176		$	8,369,678
Net loss	$	(373,649	)	$	(2,796,380	)	$	(3,170,029	)

	For the Nine Months Ended
	September 30, 2022
	Global Stem			Meso
	Cells Group			Numismatics			Total
Revenue	$	963,967		$	24,991		$	988,958
Cost of revenue		445,814			23,024			468,838
Gross profit	$	518,153		$	1,967		$	520,120
Gross Profit %		53.75	%		7.87	%		52.59	%

Assets	$	982,478		$	7,249,616		$	8,232,094
Net loss	$	(436,472	)	$	(4,077,940	)	$	(4,514,412	)

Balance at December 31, 2020	$	-		$	-
Additions		24,186			24,186
Fair value loss		(3,744	)		(3,744	)
Conversions		-			-
Balance at December 31, 2021		20,442			20,442
Additions		-			-
Fair value gain		(7,751	)		(8,627	)
Conversions		(1,855	)		(1,855	)
Balance at June 30, 2022	$	10,836
Balance at September 30, 2022				$	9,960

	Number of Warrants		Weighted Average Exercise Price
Outstanding at year ended December 31, 2020		16,000,000	$	0.030
Granted		87,500,000		0.091
Exercised		-		-
Expired		-		-
Outstanding at year ended December 31, 2021		103,500,000	$	0.082
Granted		-		-
Exercised		-		-
Expired		-		-
Outstanding at quarter ended June 30, 2022		103,500,000	$	0.082

	June 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Computer, equipment and vehicles (5 year useful life)	$	153,054		$	66,445		$	153,196		$	66,445
Leasehold improvements (2 year useful life)		63,562						64,681			-
Less: accumulated depreciation		(57,469	)		(43,536	)		(72,766	)		(43,536	)
Total property and equipment, net	$	159,147		$	22,909		$	145,112		$	22,909

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

	For Year Ended December 31,
	2021
Revenue	$	1,089,976
Net loss	$	(12,999,298	)
Earnings per share	$	(1.13	)

	For the Nine Months Ended September 30,
	2021
Revenue	$	1,089,976
Net loss	$	(12,999,298	)
Earnings per share	$	(1.13	)

2022	$	24,427		$	24,427
2023		27,140			18,998
2024		—			—
2025		—			—
2026		—			—
Total undiscounted cash payments		51,567			43,425
Less interest		(2,855	)		(2,016	)
Present value of payments	$	48,712		$	41,409

	For the Three Months Ended September 30,
	2022			2021			$ Change			% Change
Revenue	$	374,359		$	165,042		$	209,317			126.83	%
Cost of revenue		109,364			88,520			20,844			23.55	%
Gross profit		264,995			76,522			188,473			246.30	%

Operating expenses
Advertising and marketing		80,931			22,351			58,580			262.09	%
Professional fees		143,118			336,299			(193,181	)		-57.44	%
Officer compensation		22,500			518,833			(496,333	)		-95.66	%
Depreciation and
amortization expense		39,882			12,947			26,935			208.04	%
Investor relations		32,749			32,574			175			0.54	%
General and administrative- related party		-			8,116,269			(8,116,269	)		-100	%
General and administrative		107,908			52,651			55,257			104.95	%
Total operating expenses		427,088			9,091,924			(8,664,836	)		-95.30	%

Other income (expense)
Interest expense		(1,183,166	)		(900,039	)		(283,127	)		31.46	%
Derivative financial
instruments		876			—			876			00	%
Net loss	$	(1,344,383	)	$	(9,915,441	)	$	8,571,058			-86.44	%

	For the Three Months Ended June 30, 2022									For the Three Months Ended September 30, 2022
	Global Stem Cells Group			Meso Numismatics			Total			Global Stem Cells Group			Meso Numismatics			Total
Revenue	$	297,521		$	7,000		$	304,521		$	367,697		$	6,662		$	374,359
Cost of revenue		150,551			5,330			155,881			102,779			6,585			109,364
Gross profit	$	146,970		$	1,670		$	148,640		$	264,918		$	77		$	264,995
Gross profit %		49.40	%		23.86	%		48.81	%		72.05	%		1.16	%		70.79	%

	For the Six Months Ended June 30,												For the Nine Months Ended September 30,
	2022			2021			$ Change			% Change			2022			2021			$ Change			% Change
Revenue	$	614,599		$	20,212		$	594,387			2,941	%	$	988,958		$	185,254		$	803,704			433.84	%
Cost of revenue		359,474			26,650			332,824			1,249	%		468,838			115,170			353,668			307.08	%
Gross profit		255,126			(6,438	)		261,564			-4,063	%		520,120			70,084			450,036			642.14	%

Operating expenses
Advertising and marketing		135,575			381			135,194			35,484	%		216,506			22,732			193,774			852.43	%
Professional fees		592,069			329,245			262,824			80	%		735,186			665,544			69,642			10.46	%
Officer compensation		45,000			34,099			10,901			32	%		67,500			552,932			(485,432	)		-87.79	%
Depreciation and
amortization expense		62,302			400			61,902			15,476	%		102,184			13,347			88,837			665,59	%
Investor relations		94,884			20,472			74,412			363	%		127,633			53,046			74,587			140.61	%
General and administrative- related party														-			8,116,269			(8,116,269	)		-100.00	%
General and administrative		233,222			16,555			216,667			1,309	%		341,131			69,206			271,925			392.92	%
Total operating expenses		1,163,052			401,152			761,900			190	%		1,590,140			9,493,076			(7,902,936	)		-83.25	%

Other income (expense)
Interest expense		(2,271,708	)		(759,685	)		(1,512,023	)		199	%		(3,454,874	)		(1,659,724	)		1,795,150			108.16	%
Derivative financial
instruments		9,606			—			9,606			00	%		10,482			—			10,482			0.00	%
Other expense		—			(231,109	)		231,109			-100	%		—			(231,109	)		231,109			-100.00	%
Net loss	$	(3,170,028	)	$	(1,398,384	)	$	(1,771,644	)		127	%	$	(4,514,412	)	$	(11,313,825	)	$	6,799,413			-60.10	%

	For the Six Months Ended June 30, 2022									For the Nine Months Ended September 30, 2022
	Global Stem Cells Group			Meso Numismatics			Total			Global Stem Cells Group			Meso Numismatics			Total
Revenue	$	596,270		$	18,329		$	614,599		$	963,967		$	24,991		$	988,958
Cost of revenue		343,035			16,439			359,474			445,814			23,024			468,838
Gross profit	$	253,235		$	1,890		$	255,125		$	518,153		$	1,967		$	520,120
Gross profit %		42.47	%		10.31	%		41.51	%		53.75	%		7.87	%		52.59	%

		June 30, 2022				December 31, 2021				$ Change				% Change
Cash and cash equivalents		$	1,924,532			$	2,978,525			$	(1,053,993	)			-35	%

	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 ~~six~~nine months ended ~~June~~September 30, 2022. 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.	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.	The Company failed to account for the acquisition of GSCG using the full purchase accounting method in accordance with ASC 805.

Exhibit Number		Description of Exhibit
31.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**		Inline XBRL Instance Document.
101.SCH**		Inline XBRL Taxonomy Extension Schema Document.
101.CAL**		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104**		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Dated ~~August 15,~~November 8, 2022	MESO NUMISMATICS, INC.

	By:	/s/ David Christensen
		David Christensen
		President, Chief Executive Officer, Chief Financial Officer, Secretary and Director (Principal Executive Officer) (Principal Financial Officer) (Principal Accounting Officer)