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

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.





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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.





Results of Operations

Results of Operations for the Three Months Ended March 31, 2021 and 2020.





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



                                           For the Three Months Ended March 31,
                                                                                   %
                                      2021           2020        $ Change       Change
Revenue                            $    4,443     $   11,320     $  (6,877 )      -60.75 %
Cost of revenue                        14,790         12,119         2,671         22.04 %
Gross profit                          (10,347 )         (799 )      (9,548 )     1194.99 %

Operating expenses
Advertising and marketing                 237             44           193        438.64 %
Professional fees                     113,787         12,729       101,058        793.92 %
Officer compensation                   15,000         45,484       (30,484 )      -67.02 %
Depreciation expense                      200            200             -          0.00 %
Investor relations                      2,898          3,500          (602 )      -17.20 %
General and administrative             10,610         15,276        (4,666 )      -30.54 %
Total operating expenses              142,732         77,233        65,499         84.81 %

Other income (expense)
Interest expense                     (319,228 )     (438,682 )     119,454        -27.23 %
Loss on conversion of debt                  -         (4,251 )       4,251       -100.00 %
Derivative financial instruments            -       (325,308 )     325,308       -100.00 %
Net income (loss)                  $ (472,307 )   $ (846,273 )   $ 373,966        -44.19 %




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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 March 31, 2021, 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, 2021 was $4,443, compared to $11,320 of revenue for the same period in 2020. As a result of the write-off of inventory the company generated a negative 233% gross profit of $10,347 for the three months ended March 31, 2021 compared to a negative 7% gross profit of 799 for the same period in 2020. The key reason for the increase in gross profit was a result of the amount of inventory written-off in 2021 vs 2020.





Operating expenses

Operating expenses increased by 84.81% in the amount of $65,499 for the three months ended March 31, 2021, compared to the same period in 2020. Listed below are the major changes to operating expenses:

Professional fees increased by $101,058 for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to audit and accounting expenses.

Officer compensation decreased by $30,484 for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to the resignation of Melvin Pereira as Chief Executive Officer, Chief Financial Officer, Secretary and Director of Meso Numismatics Inc. in 2020.





Other income (expense)

Other income (expense) decreased by $449,013 for the three months ended March 31, 2021, compared to the same period in 2020, primarily as a result of the change in fair market value of the convertible notes in 2020 along with amortization of discounts.

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, 2021 and December 31, 2020.





                            March 31,        December 31,
                               2021             2020            $ Change      % Change
Cash and cash equivalents   $  787,674     $        42,534     $  745,140        1751.87 %

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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