Overview

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

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

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

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

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

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

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





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Results of Operations



Below is a summary of the results of operations for the three months ended March
31, 2020 and 2019.



                                             For the Three Months Ended March 31,
                                                                                      %
                                      2020            2019          $ Change        Change
Revenue                            $   11,320     $     11,916     $      (596 )      -5.00 %
Cost of revenue                        12,119           15,708          (3,589 )     -22.85 %
Gross profit                             (799 )         (3,792 )         2,993       -78.93 %

Operating expenses
Advertising and marketing                  44              233            (189 )     -81.12 %
Professional fees                      12,729           53,454         (40,725 )     -76.19 %
Officer compensation                   45,484           24,724          20,760        83.97 %
Depreciation expense                      200              200               -         0.00 %
Investor relations                      3,500           13,750         (10,250 )     -74.55 %
General and administrative             15,276            5,878           9,398       159.88 %
Total operating expenses               77,233           98,239         (21,006 )     -21.38 %

Other income (expense)
Interest expense                     (438,682 )        (97,968 )      (340,714 )     347.78 %
Loss on conversion of debt             (4,251 )              -          (4,251 )       0.00 %

Derivative financial instruments (325,308 ) (2,482,993 ) 2,157,685 -86.90 % Net income (loss)

$ (846,273 )   $ (2,682,992 )   $ 1,836,719       -68.46 %

Results of Operations for the Three Months Ended March 31, 2020 and 2019

Revenue is affected by the grade assigned to each coin or banknote. Once an item has been acquired it is sent for grading and authentication. Grading is the process of determining the grade or condition of the coin and banknote, which is the key factor in determining its value. Management carefully evaluates the grades assigned to each piece of merchandise and then decides which items will be sold through its eBay store, which items will be sold at live auction and which items will be traded for other items. Grade assigned will ultimately determine the sales price of the coin or banknote.

As of December 31, 2019, the Company is working on an inventory tracking system by serial number. Until such time as an inventory tracking system exists, the inventory costs cannot be properly confirmed and written-off to cost of revenue along with the cost of grading.





Gross profit

Revenue from the sale of coins, metals and paper money for the three months ended March 31, 2020 was $11,320, compared to $11,916 of revenue for the same period in 2019. As a result of the write-off of inventory the company generated a negative 7% gross profit of ($799) for the three months ended March 31, 2020 compared to a negative 32% gross profit of ($3,792) for the same period in 2019. The key reason for the decrease in gross profit was a result of the amount of inventory written-off in 2020 vs 2019.





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Operating expenses

Operating expenses decreased by 21.38% in the amount of $21,006 for the three months ended March 31, 2020, compared to the same period in 2019. Listed below are the major changes to operating expenses:

Professional fees decreased by $40,725 for the three months ended March 31, 2020, compared to the same period in 2019, primarily due to audit and accounting expenses.

Officer compensation increased by $20,760 for the three months ended March31, 2020, compared to the same period in 2019, primarily due to the appointment of Mr. David Christensen as Director and President of the Company.

Investor relations expenses decreased by $10,250 for the three months ended March 31, 2020, compared to the same period in 2019, primarily due to amounts associated with filings.

General and administrative expenses increased by $9,398 for the three months ended March 31, 2020, compared to the same period in 2019, primarily due to expense reimbursements.





Other income (expense)

Other income (expense) decreased by $1,812,720 for the three months ended March 31, 2020, compared to the same period in 2019, primarily as a result of the change in fair market value of the convertible notes in 2020.

Liquidity and Capital Resources

Since inception, the Company has financed its operations through private placements and convertible notes. The following is a summary of the cash and cash equivalents as of March 31, 2020 and December 31, 2019.





                             March 31,       December 31,
                               2020              2019            $ Change      % Change
Cash and cash equivalents   $    11,297     $       23,379       $ (12,082 )      -51.68 %

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

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