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HST Global, Inc. - Annual Report: 2021 (Form 10-K)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-K

Mark One)

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

For the fiscal year ended

December 31, 2021

or

[  ]  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 000-15303

 

HST GLOBAL, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

73-1215433

(State or other jurisdiction of

incorporation or organization)

 

(I. R. S. Employer

Identification No.)

 

 

 

150 Research Drive, Hampton, VA

23666

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code

757-766-6100

 

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

 

 

 

 

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

 

Common Stock

(Title of Class)

 

(Title of Class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [  ]  No [x]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes [  ]  No [x]


Page 1


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [x]  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 [x]  No [  ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

[x]

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

 

Large accelerated filer  [  ]

Accelerated filer  [  ]

Non-accelerated filer  [x]  

Smaller reporting company  [x]

Emerging growth Company [x]

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 Ex-change Act.

[  ]

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).

Yes [  ]  No [x]

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

$96,779

As of March 4, 2022 the number of shares of the registrant’s common stock outstanding was

5,248,582 Shares


Page 2


 

HST Global, Inc.
TABLE OF CONTENTS

Part I

Forward Looking Statements4 

Item 1.Business4 

Item 1A.Risk Factors4 

Item 1B.Unresolved Staff Comments4 

Item 2.Properties4 

Item 3.Legal Proceedings4 

Item 4.Mine Safety Disclosures4 

Part II

Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases 

of Equity Securities5 

Item 6.Selected Financial Data5 

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations6 

Item 7A.Quantitative and Qualitative Disclosures About Market Risk7 

Item 8.Financial Statements and Supplementary Data7 

Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure18 

Item 9A.Controls and Procedures18 

Item 9B.Other Information19 

Part III

Item 10.Directors, Executive Officers, and Corporate Governance20 

Item 11.Executive Compensation21 

Item 12.Security Ownership of Certain Beneficial Owners and Management25 

Item 13.Certain Relationships and Related Transactions, and Director Independence25 

Item 14.Principal Accounting Fees and Services26 

Part IV

Item 15.Exhibits and Financial Statement Schedules26 

Signatures27 


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PART I

ITEM 1. BUSINESS

A. BUSINESS DEVELOPMENT

There have been no changes to our business development since our last annual report on Form 10-K.  We are still in the start-up stage and have not commenced operations.

B. FINANCIAL INFORMATION ABOUT SEGMENTS

As defined by generally accepted accounting principles ("GAAP"), we do not have any segments separate and apart from our business as a whole. Accordingly, there are no measures of revenue from external customers, profit and loss, or total assets aside from what is reported in the Financial Statements attached to this Form 10-K.

C. BUSINESS OF THE COMPANY

HST Global, Inc. was founded as an Integrated Health and Wellness Biotechnology company with a plan to develop and /or acquire a network of Wellness Centers worldwide that would be primarily focused on the homeopathic and alternative treatment of late stage cancer.

To date we have been unable to initiate our original business plan.  While we are continuing to seek opportunities to do so, we are also seeking other opportunities to integrate assets, rights, or other potential revenue streams.

ITEM 1A. RISK FACTORS

Not required by smaller reporting companies.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Company's executive offices are located at 150 Research Dr., Hampton VA. We currently share these offices with The Health Network, Inc. ("THN"), of which Ron Howell is President. We have no formal sublease or rental agreement with THN; however, we are currently renting the space at no cost. The combined office and warehouse space is 42,600 square feet, of which we use a small portion.

ITEM 3. LEGAL PROCEEDINGS

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.


Page 4


PART II

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

Market Information

Our common stock is quoted in United States markets on the Over-The-Counter Bulletin Boards ("OTC BB"), under the symbol "HSTC.OB." There is no assurance that the common stock will continue to be traded on the OTC BB or that any liquidity exists for our shareholders.

Penny Stock Regulations

Our common stock is quoted in United States markets on the OTC BB under the symbol "HSTC.OB." The sale price of our common stock has been reported as low as $0.001 per share. As such, the Company's common stock may be subject to provisions of Section 15(g) and Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), commonly referred to as the "penny stock rule."

Section 15(g) sets forth certain requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines "penny stock" to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. As long as the Company's common stock is deemed to be a penny stock, trading in the shares will be subject to additional sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors.

Dividends

The Company has not issued any dividends on the common stock to date, and does not intend to issue any dividends on the common stock in the near future. We currently intend to use all profits to further the growth and development of the Company.

Number of Shares Outstanding

As of December 31, 2021, the Company had 200,000,000 shares of common stock authorized with 5,248,582 issued and outstanding. These shares were held by approximately 602 shareholders of record. The Company had 10,000,000 shares of preferred stock authorized with no shares issued or outstanding.

Recent Sales of Unregistered Securities

None.

Purchases of Equity Securities

None.

ITEM 6. SELECTED FINANCIAL DATA

Not required by smaller reporting companies.


Page 5


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Forward-Looking Statements

Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth under the caption "Risk Factors" in other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.

Overview

HST Global, Inc. was founded as an Integrated Health and Wellness Biotechnology company with a plan to develop and /or acquire a network of Wellness Centers worldwide that would be primarily focused on the homeopathic and alternative treatment of late stage cancer.

To date we have been unable to initiate our original business plan.  While we are continuing to seek opportunities to do so, we are also seeking other opportunities to integrate assets, rights, or other potential revenue streams.

Plan of Operation

General and administrative expenses consist primarily of salaries and related personnel costs, professional fees, business insurance, rent, general legal activities, and other corporate expenses.

We have never been profitable and do not anticipate having net income unless and until we develop and/or acquire our wellness centers and/or develop new channels of distribution.  With respect to our current activities, this is not likely to occur until we obtain significant additional funding. We cannot provide any assurance that we will be able to achieve profitability on a sustained basis, if at all, obtain the required funding, obtain, or complete additional corporate partnering or acquisition transactions.

Accordingly, we will need to raise additional funds or pursue strategic transactions or other strategic alternatives. To date, we have financed our operations primarily through private sales of our equity securities, and we expect to continue obtaining required capital in a similar manner.

Results of Operations

The Company had no revenues and no cost of revenues for the years ended December 31, 2021 and 2020.  

The Company incurred operating expenses of $145,718 for the year ended December 31, 2021, compared to $207,978 in 2020. The decrease in expenses in 2021 was primarily a result of an elimination of Stock Holder Compensation to Related Parties, We do not believe these costs are indicative of future years, and we cannot at this time predict our costs if and when we begin earning revenues and exit the start-up stage.

The Company had a net loss of $148,360 for the year ended December 31, 2021 compared to a net loss of $208,992 in 2020.  This is primarily a result of the elimination of Stock Holder Compensation to Related Parties in 2020.

Liquidity and Capital Resources

Our capital requirements are principally related to our efforts to implement our business plan.  Our cash balance as of December 31, 2021 was $225.


Page 6


Cash Flows

 

Year Ended

Year Ended

 

December 31, 2021

December 31, 2020

Net cash used in operating activities

$(29,836) 

$(26,971) 

Net cash used in investing activities

 

 

Net cash provided by financing activities

29,401  

25,676  

Net change in cash and cash equivalents

$(435) 

$(1,295)  

The Company does not currently have sufficient capital in its accounts, nor sufficient firm commitments for capital to assure its ability to meet its current obligations or to continue its planned operations. The Company is continuing to pursue working capital and additional revenue through the seeking of the capital it needs to carry on its planned operations. There is no assurance that any of the planned activities will be successful.

Off-Balance Sheet Arrangements

None.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

DescriptionPage 

Reports of Independent Registered Public Accounting Firms (PCAOB Firm ID 76)8 

Consolidated Balance Sheets9 

Consolidated Statements of Operations10 

Consolidated Statements of Stockholders' Deficit11 

Consolidated Statements of Cash Flows12 

Notes to Consolidated Financial Statements13 


Page 7



Report of Independent Registered Public Accounting Firm

 

To the Stockholders and Board of Director of

HST Global, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of HST Global, Inc. (the “Company”) as of December 31, 2021 and 2020 and the related consolidated statements of operations, stockholders’ deficit and cash flows for each of the two years in the period ended December 31, 2021 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position as of December 31, 2021 to 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company has yet to establish an ongoing source of revenues sufficient to meet its operating costs which raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

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

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ Turner, Stone & Company, LLP

 

Dallas, Texas

March 4, 2022

 

We have served as the Company’s auditor since 2020.


Page 8



HST Global, Inc.

CONSOLIDATED BALANCE SHEETS

 

December 31, 2021

 

December 31, 2020

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$225 

 

$660  

 

 

 

 

Total Current Assets

225 

 

660  

 

 

 

 

Total Assets

$225 

 

$660  

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

Current Liabilities

 

 

 

Accounts payable and accrued expenses

 

 

4,918  

Accounts payable and accrued expenses - related parties

242,275  

 

121,475  

Loans or advances from related party

55,077  

 

25,676  

Accrued related party interest

3,656  

 

1,014  

 

 

 

 

Total Current Liabilities

301,008  

 

153,083  

 

 

 

 

Total Liabilities

301,008  

 

153,083  

 

 

 

 

Stockholders' Deficit

 

 

 

Preferred stock; 10,000,000 shares authorized, at $0.001 par value, 0 shares issued and outstanding at December 31, 2021 and 2020

 

 

 

Common stock; 200,000,000 shares
authorized, at $0.001 par value, 5,248,582 and 55,248,582 shares issued and outstanding at December 31, 2021 and 2020, respectively

5,248  

 

5,248  

Additional paid-in capital

5,417,236  

 

5,417,236  

Accumulated deficit

(5,723,267) 

 

(5,574,907) 

 

 

 

 

Total Stockholders' Deficit

(300,783) 

 

(152,423) 

 

 

 

 

Total Liabilities and Stockholders' Deficit

$225 

 

$660  

 

 

 

 

 

The notes are an integral part of the consolidated financial statements


Page 9



HST Global, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

Year Ended December 31, 2021

 

Year Ended December 31, 2020

Revenues

$ 

 

$ 

 

 

 

 

Operating Expenses:

 

 

 

Consulting, related party

120,000  

 

180,000  

General and administrative

25,718  

 

27,978  

 

 

 

 

Total Operating Expenses

145,718  

 

207,978  

 

 

 

 

Net Loss from Operations

(145,718) 

 

(207,978) 

 

 

 

 

Other Income (Expense)

 

 

 

Interest expense

(2,642) 

 

(1,014) 

 

 

 

 

Total Other Income (Expense)

(2,642) 

 

(1,014) 

 

 

 

 

NET LOSS

$(148,360) 

 

$(208,992) 

 

 

 

 

Earnings (Loss) Per Share: Basic and Diluted - Common

$(0.03) 

 

$(0.04) 

 

 

 

 

Weighted Average Shares Outstanding: Basic and Diluted - Common

5,248,582  

 

4,771,066  

The notes are an integral part of the consolidated financial statements


Page 10



HST Global, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

Preferred Stock

Common Stock

Additional Paid-in

Accumulated

Total Stockholder’s

 

Shares

Amount

Shares

Amount

Capital

Deficit

Deficit

Balance, December 31, 2019

- 

$- 

4,248,582 

$4,248 

$5,358,236 

$(5,365,915) 

$(3,431) 

Shares issued to a related party for consulting services

- 

- 

1,000,000 

$1,000 

$59,000 

$ 

$60,000  

Net Income (Loss)

- 

- 

- 

- 

- 

$(208,992) 

$(208,992) 

Balance, December 31, 2020

- 

$- 

5,248,582 

$5,248 

$5,417,236 

$(5,574,907) 

$(152,423) 

Net Income (Loss)

- 

$- 

- 

$- 

$- 

$(148,360) 

$(148,360) 

Balance, December 31, 2021

- 

$

5,248,582 

$5,248 

$5,417,236 

$(5,723,267) 

$(300,783) 

The notes are an integral part of the consolidated financial statements


Page 11



HST Global, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Year Ended December 31, 2021

 

Year Ended December 31, 2020

Cash Flows from Operating Activities:

 

 

 

Net income (loss)

$(148,360) 

 

$(208,992) 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Shares issued to a related party for consulting services

-  

 

60,000  

Changes in operating assets and liabilities:

 

 

 

Accounts payable and accrued expenses  

(4,918) 

 

1,007  

Accrued officer compensation

120,800  

 

120,000  

Accrued related party interest

2,642  

 

1,014  

Net Cash used in Operating Activities

(29,836) 

 

(26,971) 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

Net Cash used in Investing Activities

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

Proceeds from notes payable - related party

29,401  

 

25,676  

Net cash provided by financing activities

29,401  

 

25,676  

 

 

 

 

Net change in cash

(435) 

 

(1,295) 

 

 

 

 

Cash at Beginning of Period

660  

 

1,955  

 

 

 

 

Cash at End of Period

$225  

 

$660  

 

 

 

 

Supplemental Disclosures of Cash Flow Information

 

 

 

Cash paid for interest

$ 

 

$ 

Cash paid for taxes

$ 

 

$ 

 

 

 

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

Accounts payable and accrued expenses converted to common stock

$ 

 

$ 

Notes payable and accrued interest converted to common stock

$ 

 

$ 

Derecognition of related party debt

$ 

 

$ 

 

The notes are an integral part of the consolidated financial statements


Page 12



HST Global, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended December 31, 2021 and 2020

NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

HST Global, Inc. (“the Company”) was incorporated on April 11, 1984 under the laws of the State of Delaware under the name of NT Holding Corporation. The Company has made several acquisitions and disposals of various business entities and activities. On May 9, 2008, the Company entered into a Merger and share exchange agreement with Health Source Technologies, Inc. This business acquisition has been accounted for as a reverse merger or recapitalization of Health Source Technologies, Inc. At the time of the merger NT Holding Corporation had disposed of its assets and liabilities and had minimal operations. Immediately after the acquisition the Company changed its name to HST Global, Inc. Health Source Technologies, Inc. was incorporated under the laws of the State of Nevada on August 6, 2007. The Company is currently headquartered in Hampton, Virginia.

HST Global, Inc. is an integrated Health and Wellness Biotechnology company with a plan to develop and/or acquire a network of Wellness Centers worldwide with the primary focus on homeopathic and alternative treatments of late stage cancer and other life threatening diseases.  In addition, the Company intends to acquire innovative products for the treatment of life threatening diseases. The Company primarily focuses on homeopathic and alternative product candidates that are undergoing or have already completed significant clinical testing for the treatment of late stage cancer and/or life threatening diseases.

To date we have been unable to initiate our original business plan.  While we are continuing to seek opportunities to do so, we are also seeking other opportunities to integrate assets, rights, or other potential revenue streams.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements and related notes include the activity of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-K.

Principles of Consolidation

The consolidated financial statements include our wholly-owned subsidiary, Health Source Technologies, Inc. Intercompany balances and transactions have been eliminated.

Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a December 31 year-end.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.


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Cash and Cash Equivalents

We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.

Income Taxes

The Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, "Income Taxes," which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The Company applies the provisions of ASC 740, “Accounting for Uncertainty in Income Taxes”. The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements.  The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Company did not identify any material uncertain tax positions on returns that have been filed or that will be filed.  The Company did not recognize any interest or penalties for unrecognized tax benefits during the years ended December 31, 2021 and 2020, nor were any interest or penalties accrued as of December 31, 2021 and 2020.

Basic and Diluted Loss Per Share

The computations of basic loss per share of common stock are based on the weighted average number of shares outstanding at the date of the financial statements. The Company computes net income (loss) per share in accordance with ASC 260. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is antidilutive. The Company had no common stock equivalents outstanding as of December 31, 2021 and 2020.

Stock-Based Compensation

The Company adopted ASC 718, “Stock Compensation,” effective on January 1, 2019. Under ASC 718, all share-based payments to employees, including grants of employee stock options, are to be recognized in the income statement based on their fair values. As of December 31, 2021, the Company has not issued any employer stock options.

Fair Value of Financial Instruments

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under this standard certain assets and liabilities must be measured at fair value, and disclosures are required for items measured at fair value.

The Company currently does not have non-financial assets or non-financial liabilities that are required to be measured at fair value on a recurring basis. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:


Page 14



Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The fair value of the Company’s cash is based on quoted prices and therefore classified as Level 1.  

Level 2 - Inputs include quoted prices for similar assets and 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 (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

Recently Issued Accounting Pronouncements

Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s consolidated financial statements.

NOTE 3 – GOING CONCERN

The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business within one year after the date these financial statements were issued. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  There is substantial doubt that the Company can continue as a going concern for a period of one year from the issuance of these financial statements.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

Management’s plan to support the Company in its operations and to maintain its business strategy is to raise funds through public offerings and to rely on officers and directors to perform essential functions with minimal compensation. If the Company does not raise all of the money it needs from public offerings, it will have to find alternative sources, such as a second public offering, a private placement of securities, or loans from its officers, directors or others. If the Company requires additional cash and is unable to raise it, it will either have to suspend operations until the cash is raised, or cease business entirely.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE  4 – ACCOUNTS PAYABLE AND ACCURED EXPENSES – RELATED PARTIES

Accounts payable and accrued expenses - related parties consist of the following at December 31, 2021 and 2020:

December 31, 2021

December 31, 2020

The Health Network, Inc.

$2,275 

$1,475 

Ronald Howell

240,000 

120,000 

Total

$242,275 

$121,475 

Please see Note 5 for further explanation of these liabilities.


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NOTE 5 - RELATED PARTY TRANSACTIONS

Notes Payable – Related Parties

Total related party notes payable as of December 31, 2020 were $25,676.  During the year ended December 31, 2021, the Company received $29,401 in additional cash loans.

Executive Offices

The Company's executive offices are located at 150 Research Dr., Hampton VA. These offices are leased by The Health Network, Inc. ("THN"), of which Ron Howell is President. THN allows the Company to use the office space without a formal sublease or rental agreement.

Consulting Agreements

The Company has entered into a consulting agreement with Mr. Howell, President of the Company, whereby the Company agreed to pay Mr. Howell $10,000 per month for consulting services through December 31, 2010. The Company had agreed to continue to engage Mr. Howell as a consultant until his consulting services are no longer required.  The agreement was suspended from July, 2019 through December, 2019 due to the pendency of the APA, and has resumed beginning in January, 2020 due to the termination of the APA.  

During the years ended December 31, 2021 and 2020, the Company recognized $120,000 for consulting fees in each year for Ronald Howell.

As of December 31, 2021 and 2020, the Company owed Mr. Howell $240,000 and $120,000 under the consulting agreement.

On June 23, 2020, the Company agreed to issue an additional 1,000,000 shares of restricted common stock (which increased stock value by $1,000 and Additional Paid-In Capital by $59,000) to Mr. Howell in consideration for consulting services during the pendency of the APA, in lieu of the $60,000 in consulting fees that were suspended in 2019 due to the potential transaction.  

NOTE 6 – COMMON STOCK

None.

 

NOTE 7 – INCOME TAXES

The Company follows ASC 740, under which deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized.

The cumulative tax effect at the expected rate of 21 percent of significant items comprising our net deferred tax amount is as follows:

Year ended December 31, 2021

 

Year ended December 31, 2020

Income tax benefit attributable to:

 

 

 

Net operating loss

$ (31,156) 

 

$(43,888)  

Change in valuation allowance

31,156  

 

             43,888 

Net refundable amount

$ 

 

$ 


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The cumulative tax effect at the expected rate of 21 percent (for 2021 & 2020) of significant items comprising our net deferred tax amount is as follows: 

December 31, 2021

 

December 31, 2020

Deferred tax asset attributable to:

 

 

 

Net operating loss carry forwards

$(1,223,277) 

 

$(1,192,121) 

Common stock issued for services

113,692  

 

113,692  

Valuation allowance

1,109,585  

 

1,078,429  

Net deferred tax asset

$ 

 

$ 

The Company’s zero percent effective tax rate for each year, as compared to the 21 percent statutory rate, results from non-deductible stock based compensation and the change in valuation allowance.

At December 31, 2021, the Company had an unused net operating loss carry-forward of approximately $5,283,741 that is available to offset future taxable income; the loss carry-forward will begin to expire in 2027.

NOTE 8 – SUBSEQUENT EVENTS

In accordance with ASC 855, Company management reviewed all material events through the date of this report and determined that there are no material subsequent events to report.


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

On April 27, 2020, the board of directors of HST Global, Inc. (the “Company”) approved the engagement of Turner, Stone & Company (“Turner Stone”) as the company’s independent registered public accounting firm for the Company’s fiscal year ended December 31, 2020, effective immediately, and dismissed Sadler, Gibb & Associates, LLC (“Sadler Gibb”) as the Company’s independent registered public accounting firm on April 23, 2020.

 

We did not consult with Turner Stone regarding either (i) the application of accounting principles to a specified transaction, either contemplated or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements; or (ii) any matter that was the subject of a “disagreement” or a “reportable event” (as those terms are defined in Item 304 of Regulation S-K).

 

Sadler Gibb’s reports on our financial statements for the prior two fiscal years contained no adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles except to indicate that there is substantial doubt as to our ability to continue as a going concern.  

 

During the fiscal years ended December 31, 2018 and 2019, and the subsequent interim period through April 23, 2020, there were (i) no disagreements (as such term is defined in Item 304 of Regulation S-K) between the Company and Sadler Gibb on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Sadler Gibb’s satisfaction, would have caused Sadler Gibb to make reference thereto in their reports on the financial statements for such years, and (ii) no “reportable events” within the meaning of Item 304(a)(1)(v) of Regulation S-K, except for a statement that the Company is not required to have, and Sadler Gibb was not engaged to audit, internal controls over financial reporting.

 

The Company provided Sadler Gibb with a copy of the disclosures it made in its Current Report on Form 8-K filed April 28, 2020, and requested that Sadler Gibb furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the statements made herein. A copy of Sadler Gibb’s letter dated April 28, 2020, is filed as Exhibit 16.1 to the Company’s Form 8-K.

 

ITEM 9A. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures

Our management, including our Principal Executive and Principal Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2020. Our disclosure controls and procedures are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized, and reported, within the time periods specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive and Principal Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2020 for the reasons discussed below.

(b) Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-a5(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and


Page 18



that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use of disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision of our Chief Executive Officer and Chief Financial Officer, our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2021. In making this assessment, management used the criteria set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management has concluded that our internal control over financial reporting was not effective as of December 31, 2021 and there are material weaknesses in our internal control over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

The material weaknesses relate to the limited number of persons responsible for the recording and reporting of financial information, the lack of separation of financial reporting duties, and the limited size of our management team in general. We are in the process evaluating methods of improving our internal control over financial reporting, including the possible addition of financial reporting staff and the increased separation of financial reporting responsibility, and intend to implement such steps as are necessary and possible to correct these material weaknesses.

(c) Change in Internal Controls

There were no changes in our internal control over financial reporting during the year ended December 31, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None


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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Director and Executive Officer Summary

The following table sets forth the names, ages, and principal offices and positions of our current directors, executive officers, and persons we consider to be significant employees. The Board of Directors elects our executive officers annually. Our directors serve one-year terms or until their successors are elected, qualified and accept their positions. The executive officers serve terms of one year or until their death, resignation or removal by the Board of Directors. There are no family relationships or understandings between any of the directors and executive officers. In addition, there was no arrangement or understanding between any executive officer and any other person pursuant to which any person was selected as an executive officer.

Name of Director or Officer

Age

Position

Ronald R. Howell

 

74

Chief Executive Officer,

Chairman of the Board of Directors and

Interim Chief Financial Officer


Executive Officer and Director Bios

Ronald R. Howell, Chief Executive Officer, Chairman and Interim Chief Financial Officer: Mr. Howell has over 30 years of diversified leadership experience. He has distinguished himself in various businesses and held executive positions in various industries including real estate, distribution, national and international sales, wholesale and retail marketing, financial service. Mr. Howell serves as the CEO and President of The Health Network, Inc. and has served in that capacity for over 5 years. The Health Network, Inc. is a direct sales and marketing company in the nutraceutical industry.  

Holding a Bachelor's Degree in Management from the University of Maryland and an MBA from the Sellinger School of Business and Management at Loyola College, Mr. Howell has also taught as an Adjunct Professor at Loyola College in Baltimore, Maryland. Ron also served his country as a United States Marine.

Legal and Disciplinary History

No officer, director or control person of the Company has been the subject of:

1. A conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses);

2. The entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person's involvement in any type of business, securities, commodities, or banking activities;

3. A finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or

4. The entry of an order by a self-regulatory organization that permanently or temporarily barred, suspended or otherwise limited such person's involvement in any type of business or securities activities.


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Section 16(A) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 (the "Exchange Act") requires our directors and officers, and persons who own more than ten percent of the Common Stock to file reports of ownership and changes in ownership with the Securities and Exchange Commission ("SEC") and the American Stock Exchange. SEC regulations require reporting persons to furnish us with copies of all Section 16(a) forms they file.

Based solely on our review of the copies of the Forms 3, 4 and 5 and amendments thereto furnished to us by the persons required to make such filings during fiscal 2021 and our own records, we believe that no director or officer failed to file timely any beneficial ownership report.

Corporate Governance.

We have not adopted a code of ethics do date. We are in the process of evaluating the standards of conduct necessary for the deterrence of malfeasance and the promotion of ethical conduct and accountability, and will determine whether a code of ethics is necessary based on our evaluation.

The Company does not have a standing Nominating Committee. There have been no changes to the procedures whereby security holders may recommend nominees to the registrant's board of directors.

The Company is not a "listed issuer" as defined by Rule 10A-3, and does not have a standing Audit Committee. We do not have a financial expert serving on our board of directors.

ITEM 11. EXECUTIVE COMPENSATION

COMPENSATION DISCUSSION AND ANALYSIS

Compensation Discussion and Analysis

We do not have a standing compensation committee. Our board of directors as a whole makes the decisions as to employee benefit programs and officer and employee compensation. The primary objectives of our executive compensation programs are to:

- attract, retain and motivate skilled and knowledgeable individuals; 

- ensure that compensation is aligned with our corporate strategies and business objectives; 

- promote the achievement of key strategic and financial performance measures by linking short-term and long-term cash and equity incentives to the achievement of measurable corporate and individual performance goals; and 

-align executives' incentives with the creation of stockholder value.   

To achieve these objectives, our board of directors evaluates our executive compensation program with the objective of setting compensation at levels they believe will allow us to attract and retain qualified executives. In addition, a portion of each executive's overall compensation is tied to key strategic, financial and operational goals set by our board of directors. We also generally provide a portion of our executive compensation in the form of options that vest over time, which we believe helps us retain our executives and align their interests with those of our stockholders by allowing the executives to participate in our longer term success as reflected in asset growth and stock price appreciation.


Page 21



Named Executive Officers

The following table identifies our principal executive officer, our principal financial officer and our most highly paid executive officers, who, for purposes of this Compensation Disclosure and Analysis only, are referred to herein as the "named executive officers."

Name

 

Corporate Office

Ron Howell

 

Chief Executive Officer and

Interim Chief Financial Officer

Components of our Executive Compensation Program

The primary elements of our executive compensation program will be base salaries and option grant incentive awards, although the board of directors has the authority to award cash bonuses, benefits and other forms of compensation as it sees fit.

The Company has entered into a consulting agreement with Mr. Howell whereby the Company agreed to pay Mr. Howell $10,000 per month.  Mr. Howell did not accrue these consulting fees from July, 2019 through December, 2019 due to the pendency of the APA with Orbital; however, Mr. Howell resumed accruing these consulting fees after termination of the APA in January, 2020.  The Company intends to continue to engage Mr. Howell as a consultant until his consulting services are no longer required.

We do not have any formal or informal policy or target for allocating compensation between short-term and long-term compensation, between cash and non-cash compensation or among the different forms of non-cash compensation. Instead, we have determined subjectively on a case-by-case basis the appropriate level and mix of the various compensation components. Similarly, we do not rely on benchmarking against our competitors in making compensation related decisions.

Base salaries – Base salaries will be used to recognize the experience, skills, knowledge and responsibilities required of our named executive officers. Base salary, and other components of compensation, may be evaluated by our board of directors for adjustment based on an assessment of the individual's performance and compensation trends in our industry.

Equity Awards – Our stock option award program will be the primary vehicle for offering long-term incentives to our executives. To date, we have not issued any equity awards. We intend our equity awards to executives to generally be made in the form of warrants. We believe that equity grants in the form of warrants provide our executives with a direct link to our long-term performance, create an ownership culture, and align the interests of our executives and our stockholders.

Cash bonuses – Our board of directors has the discretion to award cash bonuses based on our financial performance and individual objectives. The corporate financial performance measures (revenues and profits) will be given the greatest weight in this bonus analysis. We have not yet granted any cash bonuses to any named executive officer nor have we yet developed any specific individual objectives while we wait to attain revenue and profitability levels sufficient to undertake any such bonuses.  

Benefits and other compensation – Our named executive officers are permitted to participate in such health care, disability insurance, bonus and other employee benefits plans as may be in effect with the Company from time to time to the extent the executive is eligible under the terms of those plans. As of the date of this Registration Statement, with exception to health care, we have not implemented any such employee benefit plans.


Page 22



Description of Compensation Agreements and Arrangements

As discussed below, we have not agreed to pay the Named Executive Officers an annual salary. We will negotiate base salary in the near future. Base salary may be increased from time to time with the approval of the board of directors. The following table summarizes the agreed annual salary of each of the named executive officers:

Summary Annual Salary

Name

 

Annual Salary

Ron Howell

 

01


(1) Mr. Howell has agreed to defer receiving an annual salary. He accrued $10,000. per month during 2021 from the Company pursuant to a consulting agreement. See "Relationships and Related Transactions," below. 

Ron Howell, Chief Executive OfficerMr. Howell currently does not receive compensation for his services as Chief Executive Officer. He has agreed to defer compensation until the Company obtains sufficient financing. The Board of Directors will determine what level of compensation is appropriate to offer Mr. Howell in the near future.

Grants of Plan-Based Awards Table for Fiscal Year 2021

The Company currently does not participate in any equity award plan. During fiscal 2021, we did not grant any equity awards under any equity award plan.

Option Exercises for Fiscal 2021

During fiscal 2021, none of the named executive officers exercised options.

Nonqualified Deferred Compensation

To date, we currently offer no defined contribution or other plan that provides for the deferral of compensation on a basis that is not tax-qualified to any of our employees, including the named executive officers.

Compensation of Directors

We intend to use a combination of cash and equity-based compensation to attract and retain candidates to serve on our board of directors. We intend to compensate directors who are also our employees for their service on our board of directors. Therefore, Mr. Howell will receive compensation for his service on our board of directors, which compensation has not yet been determined.

Compensation Committee Interlocks and Insider Participation

We do not currently have a standing Compensation Committee. Our entire board of directors participated in deliberations concerning executive officer compensation.

Compensation Committee Report

The board of directors has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the board of directors has recommended that this Compensation Discussion and Analysis be included in this Annual Report on Form 10-K.


Page 23



Summary Compensation Table

The following table sets forth the total compensation paid to, or accrued by, the Named Executive Officers and other employees earning over $100,000 per year during the fiscal years ended December 31, 2021 and 2020. No restricted stock awards, long-term incentive plan payout or other types of compensation, other than the compensation identified in the chart below and its accompanying notes, were paid to these executive officers during those fiscal years.

Named

Executive

Officer

 

Year

Annual

Compensation

Salary ($)

Annual

Compensation

Bonus ($)

Other

Annual

Compensation

Compensation

Restricted

Stock

Long Term

Compensation

Options

 

LTIP

Payouts

 

All Other

Ron Howell

2021

0

0

120,000 (1)

0

0

0

0

Ron Howell

2020

0

0

120,000 (1)

60,000 (1)

0

0

0

(1)Pursuant to consulting agreement. 

Outstanding Equity Awards at Fiscal Year End Table

The following table sets forth information regarding the outstanding warrants held by our named officers as of December 31, 2021.

 

Option Awards

Name

Number of

Securities Underlying

Unexercised Options

(#) Exercisable

Number of

Securities Underlying

Unexercised Options

(#) Unexercisable

Equity Incentive Plan Awards:

Number of Securities

Underlying Unexercised

Unearned Options

Option

Exercise

Price

($)

Option

Expiration

Date

 

 

 

 

 

 

Ron Howell

 

-

-

-

-

-


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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table shows the beneficial ownership of our common stock as of December 31, 2021. The table shows the amount of shares owned by:

Identity of Person or Group

 

Shares Beneficially Owned

 

Percent of Shares Beneficially Owned1

 

Class

Ronald R. Howell
Chief Executive Officer,
Interim Chief Financial Officer
and Chairman

 

3,269,476(2)

 

62.3%

 

Common

 

 

 

 

 

 

 

All Directors and Officers as a Group

 

3,269,476

 

62.3%

 

Common

 

(1) The percentage of shares owned is based on 5,248,582 shares of common stock outstanding as of December 31, 2021. Where the beneficially owned shares of any individual or group in the following table includes any options, warrants, or other rights to purchase shares, the percentage of shares owned includes such shares as if the right to purchase had been duly exercised. 

(2) Includes 2,515,497 held personally and 753,979 held by The Health Network, Inc., which is controlled by Mr. Howell.          

Beneficial Ownership of Securities: Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, involving the determination of beneficial owners of securities, a beneficial owner of securities is person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has, or shares, voting power and/or investment power with respect to the securities, and any person who has the right to acquire beneficial ownership of the security within sixty days through means including the exercise of any option, warrant or conversion of a security.

ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Executive Offices

The Company's executive offices are located at 150 Research Dr., Hampton VA. These offices are leased by The Health Network, Inc. ("THN"), of which Ron Howell is President. THN allows the Company to use the office space without a formal sublease or rental agreement.

The Company currently pays The Health Network, Inc. $0.00 per month as a general operating fee, which covers use of the office space, use of certain equipment, and various other services.

Consulting Agreements

The Company has entered into a consulting agreement with Mr. Howell whereby the Company agreed to pay Mr. Howell $10,0000 per month. The consulting agreement may be terminated at will by the Company. The consulting agreement was suspended during the pendency of the APA with Orbital from July, 2019 to December, 2019, but resumed in January, 2020 after the APA was terminated.  The Company subsequently agreed to issue restricted stock in lieu of the $60,000 in consulting fees that were suspended by the APA.  The Company intends to continue to engage Mr. Howell as a consultant until his consulting services are no longer required.

Director Independence

The Company is not listed on any national exchange, or quoted on any inter-dealer quotation service, that imposes independence requirements on any committee of the Company's directors, such as an audit, nominating or compensation committee. The company's Board of Directors consists of Ron Howell, who is not independent.


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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The following is a summary of the fees paid to Sadler, Gibb & Associates LLC and Turner, Stone & Company, LLP, the Company's independent public accounting firms, during the fiscal year ended December 31, 2021 and 2020.

 

2021

 

2020

Audit fees-Sadler

$2,000 

 

$8,169 

Audit fees-Turner Stone

11,000 

 

6,000 

Tax fees

- 

 

- 

All other fees

- 

 

- 

Total

$13,000 

 

$14,169 


Audit Committee Pre-Approval of Services of Principal Accountants

We do not currently have an audit committee appointed by the Board of Directors and the full Board of Directors did not vote on whether any non-audit services impacted our auditor's independence. We currently do not have any policy for approval of audit and permitted non-audit services by our independent auditor. We plan to appoint an audit committee by our Board of Directors and adopt procedures for approval of audit and non-audit services.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statements and Schedules.

The following consolidated financial statements of HST Global, Inc. are included herein beginning on page 8:

·Report of Independent Registered Public Accounting Firm 

·Consolidated Balance Sheets as of December 31, 2021 and 2020 

·Consolidated Statements of Operations for the years ended December 31, 2021, and 2020 

·Consolidated Statements of Changes in Stockholders' Interest for the years ended December 31, 2021 and 2020 

·Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020 

·Notes to Consolidated Financial Statements 

Exhibits

The following Exhibits are included herein:

Exhibit No.

 

Description

31.1

 

Certification by the Chief Executive Officer of Competitive Technologies, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).

31.2

 

Certification by the Chief Financial Officer of Competitive Technologies, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).

32.1

 

Certification by the Chief Executive Officer of Competitive Technologies, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2

 

Certification by the Chief Financial Officer of Competitive Technologies, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

101

 

Interactive Data Files

 

 

 

 

SIGNATURES


Page 26



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

HST GLOBAL, INC.
(the registrant)

By: \s\ Ron Howell  

Ron Howell

Chief Executive Officer

Date: March 4, 2022


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