HSTC 10-K Annual Report Dec. 31, 2010

HST GLOBAL, INC.

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10-K 1 hstc10k2010.txt HST GLOBAL, INC. ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 -------------------------------------------------- Commission file number 000-15303 -------------------------------------------------- HST Global, Inc. -------------------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NEVADA 73-1215433 -------------------------------------------------------------------------------- (STATE OR OTHER JURISDICTION (IRS EMPLOYER IDENTIFICATION NO.) OF INCORPORATION) 150 Research Drive, Hampton, VA 23666 -------------------------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) Registrant's telephone number, including area code: 757-766-6100 --------------------------- Copy to: Cutler Law Group 3355 W. Alabama St. Ste. 1150 Houston, TX 77098 Fax: 800-836-0714 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on which Registered None None -------------------------------------------------------------------------------- Securities registered pursuant to Section 12(g) of the Act: Common Stock ($0.001 par value) -------------------------------------------------------------------------------- (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 [x] No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes [x] No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [x] Yes [ ] 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. [ ] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "accelerated filer, large accelerated filer and smaller reporting company" as defined in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X] (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). [ ] Yes [x] No The aggregate market value of the common equity held by non-affiliates of the registrant as of June 30, 2010 was $24,998,387. The number of shares of the registrant's common stock outstanding as of May 13, 2011 was 28,719,854 shares. Page 2 HST GLOBAL, INC. TABLE OF CONTENTS PART I Forward Looking Statements 4 Item 1. Business 4 Item 1A. Risk Factors 6 Item 1B. Unresolved Staff Comments 6 Item 2. Properties 6 Item 3. Legal Proceedings 7 Item 4. [Removed and Reserved] 7 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 7 Item 6. Selected Financial Data 10 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 11 Item 8. Financial Statements and Supplementary Data 11 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 25 Item 9A. Controls and Procedures 25 Item 9B. Other Information 26 PART III Item 10. Directors and Executive Officers of the Registrant 26 Item 11. Executive Compensation 28 Item 12. Security Ownership of Certain Beneficial Owners and Management 32 Item 13. Certain Relationships and Related Transactions 32 Item 14. Principal Accounting Fees and Services 33 PART IV Item 15. Exhibits and Financial Statement Schedules 33 Signatures 34 Page 3 FORWARD-LOOKING STATEMENTS In addition to historical information, this Report contains forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, management of growth, competition, pricing pressures on the Company's products, industry growth and general economic conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements. PART I ITEM 1. BUSINESS A. BUSINESS DEVELOPMENT The continual evolution in the discovery of new "cutting edge" ingredients and the development in understanding the manner in which they can impact overall heath serve as a reminder to emerging technologies and gateways for treating an individual's challenges with regard to their personal health. The executive team of HST continues to enjoy an unusual position of visibility with organizations involved in developing many of these new products and technologies. Consequently, the year ending December 31, 2010 has positioned the company to investigate some of these emerging technologies for acquisition and/or potential Joint Venture Agreements. A confluence of opportunity, some old, some new, is pushing us to consider using these new technologies and developing new channels of distribution both within the structure of our original clinics and additionally through physician networks. 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 COMPANY OVERVIEW HST Global, Inc. is an Integrated Health and Wellness company that is developing and/or acquiring a network of Wellness Centers worldwide that are primarily focused on the homeopathic and alternative treatment of late stage cancer. In addition, the company intends to acquire innovative products for the treatment of late stage cancer. In this regard, 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. The development of new and emerging technologies will broaden the company's direction and incorporate products that are associated with the biotechnology industry. They will strengthen the company's relationship with its targeted clinical partners and broaden the channels of distribution currently available to the company. The company has identified the growing acceptance of alternative cancer treatments worldwide which has placed us in a perfect position to open our own brand of Cancer Treatment Centers. This strategy will Page 4 enable the company to address the challenges individuals face in the treatment of cancer in the later stages. The Company has been challenged in the execution of its intention to open Cancer Centers that were originally targeted to be opened this year. Our inability to raise sufficient money coupled with the down turn in the economy of 2010 has delayed opening new locations. Our executive offices are located at 150 Research Drive Hampton, VA 23666. Our telephone number is 757-766-6100 and our internet address is www.hstglobal.com. BUSINESS MODEL AND STRATEGY Cancer is an epidemic that is worldwide and one that does not discriminate. The company has been involved with pre-clinical and proven product candidates that have shown high efficacy in the treatment of various late stage cancers. The success and high efficacy achieved in these treatments has given the company a position of visibility that has attracted a number of International partners that want to move forward and open Centers worldwide. Movement to establish a global chain of Cancer Treatment Centers will provide an immediate revenue stream to the company. Due to the change in the perception of homeopathic treatments for cancer and other life threatening illnesses, the company has developed a strategy of opening a chain of Wellness Centers worldwide. It is the company's intention to open its first clinic during the fourth quarter of 2011. After an initial one year ramp-up period, anticipated annual gross revenues for each individual clinic should be approximately between 8 and 10 million dollars per year. As referenced above, the company also focuses on alternative and homeopathic products that are undergoing or have already completed significant clinical testing for the treatment of late stage cancer. Currently, we do not follow any policy or formula as to our acquisition of product candidates, other than seeking products for which pre-clinical or clinical testing has commenced. REPORT BY THE SCIENTIFIC ADVISORY BOARD The following summarizes the findings of our Scientific Advisory Board with respect to the ongoing clinical trials: The purpose of the pre-clinical outcome-based study in Stage IV adult cancers is to study efficacy and safety issues. All patients coming to the clinic are given the following choices: 1. Conventional chemotherapy, either first, second or third line, as appropriate to the patient's prior history; 2. Conventional chemotherapy, either standard or low-dose fractionated, with proprietary immune therapies; 3. Conventional dose or low-dose fractionated chemotherapy with other complimentary products; 4. Insulin Potentiated Therapy using standard chemotherapy with other complimentary therapies, and 5. Any of the above plus hormonal therapies. The advantages of the pre-clinical studies are to show efficacy and safety, and freedom from adverse toxicities and adverse side-effects. The ongoing conclusion of the studies are that there is a novel, homeopathic, immune boosting therapy that when used alone in cancer, is showing an overall high response rate. Page 5 OTHER MATTERS EMPLOYEES --------- HST Global, Inc. and Health Source Technologies, Inc., our wholly owned subsidiary, have a total of one full and one part time employees and one consultant who devote a significant portion of their time to the Company. We believe our relationship with our employees is good. RESEARCH AND DEVELOPMENT ------------------------ During the last two full fiscal years, we have not engaged in any research and development activities. Our business model is to in-license technologies developed by others. In the event that we undertake research and development activities in the future, the costs of those efforts will not be bourn directly by our consumers. INTELLECTUAL PROPERTY --------------------- Our goal is to obtain, maintain and enforce patent protection for our products, formulations, processes, methods and other proprietary technologies, preserve our trade secrets, and operate without infringing on the proprietary rights of other parties, both in the United States and in other countries. Our policy is to actively seek to obtain, where appropriate, the broadest intellectual property protection possible for any future product candidates, proprietary information and proprietary technology through a combination of contractual arrangements and patents, both in the U.S. and abroad. DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS ------------------------------------------ HSTC is not dependent on one or a few major customers. COMPETITION ----------- The treatment of late stage cancer is highly competitive, and there will be considerable competition from major pharmaceutical, biotechnology, and specialty cancer companies. Many of our competitors have substantially more resources than we do, including both financial and technical resources. In addition, many of these companies have more experience than we do in preclinical and clinical development, manufacturing, regulatory, and global commercialization. We are also competing with academic institutions, governmental agencies and private organizations that are conducting research in the field of cancer. Competition for highly qualified employees is intense. 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 Page 6 sublease or rental agreement with THN; however, we currently pay to THN $15,000 per month as an operating fee, which includes use of the office space among other things. The combined office and warehouse space is 42,600 square feet. ITEM 3. LEGAL PROCEEDINGS The Company had entered to certain loan agreements as referenced in Note 7 of the Financial Statements for the Year Ended December 31, 2010. Facts have come to the Company's attention that causes the Company to believe that the debts have been extinguished. However, the Company cannot offer any assurance that the holders of the debt will not seek to enforce rights that the holders believe they may have under the respective agreements. ITEM 4. [REMOVED AND RESERVED] 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. MARKET PRICE The following table shows the high and low per share price quotations of the Company's common stock as reported by the OTC BB for the periods presented. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not necessarily represent actual transactions. The OTC BB market is extremely limited and the prices quoted by brokers are not a reliable indication of the value of the common stock. The periods presented represent fiscal quarters, with the fourth quarter of each year ending on December 31. High Low Fiscal 2009 First Quarter 3.13 0.80 Second Quarter 2.25 0.80 Third Quarter 1.12 0.15 Fourth Quarter 0.33 0.07 Fiscal 2010 First Quarter 0.46 0.19 Second Quarter 0.55 0.20 Third Quarter 0.27 0.14 Fourth Quarter 0.18 0.03 As of December 31, 2010, the Company had 100,000,000 shares of common stock authorized with 28,719,854, issued and outstanding. The Company had 5,000,000 shares of preferred stock authorized with no shares issued and outstanding. Page 7 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 $.03 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, 2010, the Company had 100,000,000 shares of common stock authorized with 28,719,854 issued and outstanding and 9,951,329 freely tradable shares in the public float. These shares were held by approximately 590 shareholders of record. The Company had 5,000,000 shares of preferred stock authorized with 1,000,000 shares issued and none outstanding. RECENT SALES OF UNREGISTERED SECURITIES The following represent all sales of unregistered securities during fiscal 2009 and the subsequent interim period up to the date hereof: On October 28, 2008, the company received $250,000 from an investor for working capital. This transaction was initially reported as a deposit from shareholder. On June 9, 2009 the Company issued 200,000 shares at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On February 20, 2009, the company received $75,000 from an investor for working capital. This investor was issued 60,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On March 16, 2009, the company received $25,000 from an investor for working capital. This investor was issued 20,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 9, 2009, the company received $50,000 from an investor for working capital. This investor was issued 40,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Page 8 Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 9, 2009, the company received $26,250 from an investor for working capital. This investor was issued 21,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 10, 2009 the company issued 5,000 shares of common stock in exchange for services rendered to the company. The shares were valued at $1.27 per share which was the trading price of the shares on the date the shares were issued. On July 15, 2009 the company issued 2,000 shares of common stock in exchange for services rendered to the company. The shares were valued at $.82 per share which was the trading price of the shares on the date the shares were issued. On January 20, 2010 the company issued 1,714,286 shares of common stock to Ron Howell as payment for consulting services performed during 2009. The shares were valued at $.07 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On January 20, 2010 the company issued 1,471,429 shares of common stock to Eric Clemons as payment for consulting services performed during 2009. The shares were valued at $.07 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On April 23, 2010 the Company issued 150,000 shares of common stock in exchange for services rendered to the Company. The shares were valued at $.50 per share which was the trading price of the shares on the date the shares were issued. On May 20, 2010 the Company issued 150,000 shares of common stock in exchange for services rendered to the Company. The shares were valued at $.22 per share which was the trading price of the shares on the date the shares were issued. On February 2, 2011 the Company issued 1,000,000 shares of common stock to Ronald Howell as payment for consulting services performed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On February 2, 2011 the Company issued 7,000,000 shares of common stock in exchange for debt owed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. PURCHASES OF EQUITY SECURITIES None. Page 9 ITEM 6. SELECTED FINANCIAL DATA Not required by smaller reporting companies. 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 in Item 1A under the caption "Risk Factors," in this Annual Report on Form 10-K for the year ended December 31, 2010, and 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. is an Integrated Health and Wellness Biotechnology company that is developing and /or acquiring a network of Wellness Centers worldwide that are primarily focused on the homeopathic and alternative treatment of late stage cancer. In addition, the company intends to acquire innovative products for the treatment of individual health challenges. In this regard, the company primarily focuses on homeopathic and alternative product candidates that are undergoing or have already completed significant clinical testing. The company has identified the growing acceptance of alternative treatments worldwide which has placed us in a perfect position to open our own brand of Treatment Centers. This strategy will enable the company to address the challenges individuals face in the treatment challenging and in some cases life threatening diseases. 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 Revenues, cost of sales and operating expenses ---------------------------------------------- Page 10 The Company had revenues of $0 for the year ended December 2010 as compared to $0 for the year ended December 2009. The costs of sales for the same period were $0 in 2010 as compared to $0 for 2009. The Company incurred expenses of $847,850 for the year ended December 2010. The expenses in 2010 were incurred to further the company's Research and Development efforts and continue the company's strategic plan of opening wellness clinics worldwide. Until the Company obtains capital required to develop any properties or businesses and obtains the revenues needed from its future operations to meet its obligations, the Company will be dependent upon sources other than operating revenues to meet its operating and capital needs. Operating revenues may never satisfy these needs. Gain on discontinued operations ------------------------------- No income or loss was recorded in the current quarter from discontinued operations or from the disposal of a subsidiary. LIQUIDITY AND CAPITAL RESOURCES Our capital requirements arise principally due to our expenses in beginning our operations and our plan to open up a Wellness Center in 2011. Our cash balance as of December 31, 2010 was $560. 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 Description Page -------------------------------------------------------------------------- ---- Report of Independent Registered Public Accounting Firm F-12 Consolidated Balance Sheets F-13 Consolidated Statements of Operations F-14 Consolidated Statements of Changes in Shareholders' Interest F-15 Consolidated Statements of Cash Flows F-17 Notes to Consolidated Financial Statements F-18 Page 11 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of HST Global, Inc. and Subsidiary Hampton, Virginia We have audited the accompanying consolidated balance sheets of HST Global, Inc. and subsidiary as of December 31, 2010 and 2009, and the related consolidated statements of operations, stockholders' equity (deficiency), and cash flows for each of the years in the two-year period ended December 31, 2010, and for the period from the date of inception on August 7, 2007 to December 31, 2010. HST Global Inc.'s management is responsible for these financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of HST Global, Inc. and subsidiary as of December 31, 2010 and 2009, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2010 and for the period from the date of inception on August 7, 2007 to December 31, 2010 in conformity with accounting principles generally accepted in the United States of America. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company does not have the necessary working capital to service its debt and for its planned activity, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are described in Note 10 to the financial statements. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. /S/ MADSEN & ASSOCIATES CPA'S, INC. Madsen & Associates CPA's, Inc. Salt Lake City, Utah May 12, 2011 F-12 HST GLOBAL, INC. (a Development Stage Company) CONSOLIDATED BALANCE SHEETS December 31, December 31, 2010 2009 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 560 $ 5,358 Property, plant and equipment, net of accumulated depreciation 488 1,461 ------------ ------------ TOTAL ASSETS $ 1,049 $ 6,819 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 65,300 $ 111,623 Accounts payable and accrued expenses - related parties 614,996 445,142 Shareholder Deposits 200,000 200,000 Advances from Shareholder 569,741 246,556 Notes payable - related parties 396,000 331,636 ------------ ------------ Total Current Liabilities $ 1,846,037 $ 1,334,957 STOCKHOLDERS' EQUITY (DEFICIENCY): Preferred stock; 5,000,000 shares authorized; $.001 par value; 1,000,000 shares issued and none outstanding Capital stock, $.001 par value; 100,000,000 shares authorized; 28,719,854 shares issued and outstanding at December 31, 2010; 25,234,139 shares issued and outstanding at December 31, 2009 28,720 25,235 Additional paid-in capital 1,951,952 1,624,437 Deficit accumulated during the development stage (3,825,660) (2,977,810) ------------ ------------ Total Stockholders' Equity (Deficiency) $(1,844,988) $(1,328,138) ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY/(DEFICIT) $ 1,049 $ 6,819 ============ ============ Please see the Accompanying Note F-13

F-14

F-15

F-16

F-17 HST GLOBAL, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES 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 and was considered a development stage company. 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 that is developing and/or acquiring 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. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS The company considers all highly liquid instruments purchased with maturity of three months or less to be cash equivalents. REVENUE RECOGNITION The company considers revenue to be recognized at the time the service is performed. USE OF ESTIMATES The preparation of the Company's financial statements required management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company's short-term financial instruments consist of cash and cash equivalents and accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short-term maturities. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash. During the year the Company did not maintain cash deposits at financial institutions in excess of the $250,000 limit covered by the Federal Deposit Insurance Corporation. The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leverage derivative financial instruments. F-18 EARNINGS PER SHARE Basic Earnings per Share ("EPS") is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. The effect of stock options on diluted EPS is determined through the application of the treasury exercises are hypothetically used to repurchase the Company's common stock at the average market price during the period. Loss per share is unchanged on a diluted basis since the assumed exercise of common stock equivalents would have an anti-dilutive effect. INCOME TAXES The Company uses the asset and liability method of accounting for income. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of certain assets and liabilities. Deferred income tax assets and liabilities are computed annually for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company had no significant deferred tax items arise during any of the period presented. CONCENTRATION OF CREDIT RISK The Company does not have any concentration of related financial credit risk. RECENT ACCOUNTING PRONOUNCEMENTS The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact to its financial statements. RECLASSIFICATIONS The Company has made certain reclassifications in the balance sheet from the prior year to make the financial statements consistent with the current year balances NOTE 3 - REVERSE MERGER, ACQUISITION AND BUSINESS DISPOSAL On May 9, 2008, the Company entered into a merger and share exchange agreement with NT Holding Corp. NT Holding Corp was incorporated on April 11, 1984 under the laws of the State of Delaware. NT Holding Corp since its inception has been involved in various business operations including mining and the development of mineral properties. At the time of the merger and share exchange agreement, NT F-19 Holding had disposed of its operation assets and previous operations and was considered a development stage company. This business acquisition has been accounted for as a reverse merger (recapitalization) with Health Source Technologies, Inc. deemed to be the accounting acquirer and NT Holding Corp deemed to be the legal acquirer. Accordingly, the historical financial information statements presented herein are those of Health Source Technologies, Inc. The accumulated deficit of the accounting acquirer has been carried forward after the acquisition as well as its assets and liabilities. Operations prior to the business combination are those of the acquirer. In conjunction with this business combination, the Board of Directors approved a 25 for 1 reverse split of the Company's common stock. The stock splits have been applied retroactively in the financial statements as if the split had occurred at the inception of the company. NOTE 4 - STOCKHOLDERS EQUITY The Company completed a business combination with Health Source Technologies Inc. on May 9, 2008 (see Note 3). In conjunction with this acquisition the Board of Directors approved a 25 for 1 reverse split of the Company's common stock. Prior to the acquisition the Company had 30,039,203 shares of common stock outstanding. The issuance of the 66,000,000 new shares of common stock to facilitate the business combination gave the company a total of 96,039,203 shares outstanding immediately before the stock split. After the stock split there were 4,041,568 shares outstanding. In addition, the post-acquisition equity structure was to reflect a 95% ownership by the shareholders of Health Source Technologies, Inc. In order to facilitate this structure, an additional 99,744,800 pre-split shares were issued and delivered to HST shareholders once sufficient authorized capital was available. On December 31, 2008, 3,989,792 post split shares were issued. On December 31, 2008, 3,989,792 post split shares were issued to Ron Howell, an officer and shareholder of the Company and Eric Clemons, a shareholder of the Company to complete the terms of the acquisition agreement. These shares have been retroactively reported in the financial statements as being issued in conjunction with the acquisition that occurred on May 5, 2008. As part of the consideration for this business combination there were also 1,000,000 shares of preferred stock issued which where convertible into 16.2 (post split) shares of the company's common stock. These preferred shares were converted into 16,200,000 shares of common stock. The Company has received $1,049,000 from various persons and companies as deposits that were being held by the company in the anticipation of fulfilling a common stock subscription agreement. On August 20, 2008 the Company issued 839,200 shares of its common stock at a purchase price of $1.25 per share. Also, on August 20, 2008 the company issued 15,000 shares of common stock in exchange for legal services rendered to the company. The shares were valued at $9.50 per share which was the trading price of the shares on the date the shares were issued. On October 28, 2008, the company received $250,000 from an investor for working capital. This transaction was initially reported as a deposit from shareholder. On June 9, 2009 the Company issued 200,000 shares at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On February 20, 2009, the company received $75,000 from an investor for the purchase of common stock. This investor was issued 60,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. F-20 On March 16, 2009, the company received $25,000 from an investor for the purchase of common stock. This investor was issued 20,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 9, 2009, the company received $50,000 from an investor for the purchase of common stock. This investor was issued 40,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 9, 2009, the company received $26,250 from an investor for the purchase of common stock. This investor was issued 21,000 shares, at a price of $1.25 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On June 10, 2009 the company issued 5,000 shares of common stock in exchange for services rendered to the company. The shares were valued at $1.27 per share which was the trading price of the shares on the date the shares were issued. On July 15, 2009 the company issued 2,000 shares of common stock in exchange for services rendered to the company. The shares were valued at $.82 per share which was the trading price of the shares on the date the shares were issued. On January 20, 2010 the Company issued 1,714,286 shares of common stock to Ron Howell as payment for consulting services performed during 2009. The shares were valued at $.07 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On January 20, 2010 the Company issued 1,471,429 shares of common stock to Eric Clemons as payment for consulting services performed during 2009. The shares were valued at $.07 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On April 23, 2010 the Company issued 150,000 shares of common stock in exchange for services rendered to the Company. The shares were valued at $.50 per share which was the trading price of the Shares on the date the shares were issued. On May 20, 2010 the Company issued 150,000 shares of common stock in exchange for services rendered to the Company. The shares were valued at $.22 per share which was the trading price of the shares on the date the shares were issued. On February 2, 2011 the Company issued 1,000,000 shares of common stock to Ronald Howell as payment for consulting services performed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. F-21 On February 2, 2011 the Company issued 7,000,000 shares of common stock in exchange for debt owed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. NOTE 5 - ACCOUNTS PAYABLE AND ACCURED EXPENSES - RELATED PARTIES Accounts payable and accrued expenses consist of the following at December 31, 2010 and 2009. 12/31/10 12/31/09 --------- --------- The Health Network, Inc. $ 284,498 $ 94,073 Ronald Howell 163,770 155,030 Eric Clemons 166,728 191,039 --------- --------- Total $ 614,996 $ 445,142 ========= ========= Please see Notes 6 and 8 for further explanation of these liabilities. NOTE 6 - SHAREHOLDER DEPOSITS During July and August of 2009, the company received a total of $200,000 from an investor as a deposit for the purchase of common stock. This transaction has been reported as shareholder deposits on the company's financial statements. NOTE 7 - NOTES PAYABLE - RELATED PARTIES In connection with the reverse acquisition described in note 3 to the financial statements, the Company agreed to pay the former shareholders of the target company the sum of $100,000. This note does carry an interest amount and is repayable upon demand by the holder of the note. Although the note does not carry a stated interest rate, there is a provision that the Company would owe an additional $50,000 if the note was note paid by a certain date or upon demand by the holder of the note. The Company did not repay the note by the due date and has accrued an additional $50,000 owed under the terms of the note. Management of the Company disputes the amount owed under this note and is currently assessing the legal issues surrounding this obligation. On November 25, 2009, the Company entered into an agreement with a shareholder of the Company. Under terms of this agreement, the Company received $200,000 from this individual in exchange for the issuance of a promissory note in the principal amount of $200,000 and 200,000 shares of the Company's common stock. Under the terms of the promissory note, the Company is obligated to repay the principal amount of the note together with $20,000 interest on or before March 15, 2010. As of December 31, 2010, the Company had not issued the shares of common stock. The Company has accrued interest in the amount of $46,000 owed under the terms of this agreement. The Company recorded interest in the amount of $26,000 which represents the 200,000 shares of common stock valued at $.13 per share which was the trading price of the Company's common stock on the date the agreement was executed by the Company. The Company has also accrued an additional $20,000 as interest owed at December 31, 2010 based upon the terms of the promissory note. F-22 This company has not repaid this note and there is no provision for additional interest once the note is in default. This note was guaranteed by a former consultant of the Company. The Company disputes the amount owed under this note and is currently assessing the legal issues surrounding this obligation. NOTE 8 - ADVANCES FROM SHAREHOLDER Mr. Howell has advanced $399,200 to the Company to assist with working capital needs. These advances accrue interest at a rate of six percent (6%) per annum of the unpaid balance. At December 31, 2010, the Company owes Mr. Howell the amount of $430,867 which includes accrued interest in the amount of $31,667. Mr. Clemons has advanced $124,335 to the Company loans to assist with working capital needs. These advances accrue interest at a rate of six percent (6%) per annum of the unpaid balance. At December 31, 2010 the Company has recognized a liability to Mr. Clemons in the amount of $138,874 which includes accrued interest in the amount of $14,539. The Company disputes the amount that is owed to Mr. Clemons and is currently assessing the legal issues concerning this obligation. NOTE 9 - RELATED PARTY TRANSACTIONS 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 accrues $15,000 per month as a general operating fee, which covers use of the office space, use of certain equipment, and various other services. The company paid a total $10,000 to The Health Network during 2010. At December 31, 2010, the Company owes THN an amount of $284,499 for amounts due under this 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 thru December 31, 2010. Mr. Howell received 1,714,286 shares of common stock valued at $120,000 as a partial payment for amounts owed under this agreement in January of 2010 and $0 during 2009. The consulting agreement may be terminated at will by the Company. The Company intends to continue to engage Mr. Howell as a consultant until his consulting services are no longer required. As of December 31, 2010, the Company owes Mr. Howell $163,770 under the agreement. The Company has entered into a consulting agreement with Eric Clemons, a shareholder of the Company, whereby the Company agreed to pay Mr. Clemons $10,000 per month for consulting services through December 2009. This employment agreement carried the provision that it could be extended beyond this date upon mutual agreement by both parties and that the agreement could be canceled by the Company at any time after that date. Mr. Clemons received 1,471,419 shares of common stock valued at $103,000 as a partial payment for amounts owed under this agreement in January of 2010. The Company continued to accrue amounts owed under this agreement through July of 2010. The balance owed to Mr. Clemons at F-23 December 31, 2010 is $166,729. The Company disputes this amount and is currently assessing legal issues surrounding this obligation. NOTE 10 - FINANCIAL CONDITION AND GOING CONCERN The Company's financial statements have been presented on the basis that it will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss from continuing operations of $847,850 for the year ended December 31, 2010 and has an accumulated deficit of $3,825,660 at December 31, 2010. These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieve profitable operations. There are no assurances that HSTC will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to HSTC. If adequate working capital is not available HSTC may be required to curtail its operations. NOTE 11 - SUBSEQUENT EVENTS On February 2, 2011 the Company issued 1,000,000 shares of common stock to Ronald Howell as payment for consulting services performed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. On February 2, 2011 the Company issued 7,000,000 shares of common stock in exchange for debt owed during 2010. The shares were valued at $.04 per share. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend F-24 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES None. 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, 2010. 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, 2010. (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 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, 2010. 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 ineffective as of December 31, 2010 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 Page 25 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. This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this Annual Report on Form 10-K. Our registered public accounting firm will not be required to opine on internal controls until fiscal 2010. (c) Change in Internal Controls There were no changes in our internal control over financial reporting during the quarter ended December 31, 2010, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION None. PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT 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 63 Chief Executive Officer, Chairman of the Board of Directors and Interim Chief Financial Officer Bradley C. Robinson 42 Director Page 26 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. BRADLEY C. ROBINSON, DIRECTOR: Mr. Robinson brings operational, business development and venture financing experience to the company. The majority of this experience was developed during early stage structuring of ventures in the areas of pharmaceuticals and medical devices. Mr. Robinson is Executive Vice President, Business Development of Juneau Biosciences, LLC. Previous to his joining Juneau he was the CEO and co-founder of Infusive Technologies, LLC, which resulted in an asset acquisition by Sagent Pharmaceuticals, Inc. As part of the acquisition Mr. Robinson became President of the medical device division of Sagent Pharmaceuticals. Sagent Pharmaceuticals is a specialty injectable pharmaceutical products company. Mr. Robinson studied accounting at the University of Utah and earned an MBA/MIM from the Graduate School of International Management (Thunderbird). 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. 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 Page 27 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 2009 and our own records, we believe that Mr. Howell, and Mr. Clemons each failed to file timely a Form 3 to report initial beneficial ownership. 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 OBJECTIVES AND PHILOSOPHY OF OUR EXECUTIVE COMPENSATION PROGRAM --------------------------------------------------------------- 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. 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 Page 28 COMPONENTS OF OUR EXECUTIVE COMPENSATION PROGRAM ------------------------------------------------ At this time, Named Executive Officers receives compensation for their services to the Company. Compensation will be negotiated in the near future and may be contingent on the availability of financing. 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 for consulting services thru December 31, 2010. The consulting agreement may be terminated at will by the Company. 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 29 CURRENT COMPENSATION AGREEMENTS 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 0(1) (1) Mr. Howell has agreed to defer receiving an annual salary. He has received $10,000 per month thru December 31, 2010 from the Company pursuant to a consulting agreement. See "Relationships and Related Transactions," below. RON HOWELL, CHIEF EXECUTIVE OFFICER: Mr. 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 2008 The Company currently does not participate in any equity award plan. During fiscal 2010, we did not grant any equity awards under any equity award plan. OPTION EXERCISES FOR FISCAL 2009 During fiscal 2010, 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 Registration Statement on Form 10. Page 30

Page 31 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table shows the beneficial ownership of our common stock as of March 1, 2010. The table shows the amount of shares owned by: AMOUNT OF SHARES PERCENT OF SHARES IDENTITY OF BENEFICIALLY BENEFICIALLY PERSON OR GROUP OWNED OWNED(1,2) CLASS ------------------------ ----------------- ------------------ ------ Ronald R. Howell 19,041,982(2) 51.86% Common Chief Executive Officer, Interim Chief Financial Officer and Chairman ------------------------ ----------------- ------------------ ------ Eric Clemons 2,741,229 7.47% Common ------------------------ ----------------- ------------------ ------ Brad Robinson 0 0% Common Director ------------------------ ----------------- ------------------ ------ All Directors and 19,041,982 51.86% Common Officers as a Group ------------------------ ----------------- ------------------ ------ (1) The percentage of shares owned is based on shares of common stock outstanding as of March 1, 2010. 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 11,371,982 held personally, and 7,670,000 held by The Health Network, Inc., of which he is President. (3) 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. $15,000 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 $10,000 per month for consulting services thru December 31, 2009. The consulting Page 32 agreement may be terminated at will by the Company. 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, and Mr. Robinson, who is independent. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The following is a summary of the fees paid to Madsen & Associates, the Company's independent public accounting firm, during the fiscal years ended December 31, 2010 and 2009. 2010 2009 ------- ------- Audit fees $27,715 $30,500 Audit-related fees - - Tax fees - - All other fees - - ------- ------- TOTAL $27,715 $30,500 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 by reference to the pages listed in "Item 8. Financial Statements and Supplementary Data": Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of December 31, 2010 and 2009 Consolidated Statements of Operations for the years ended December 31, 2010, and 2009 Consolidated Statements of Changes in Shareholders' Interest for the years ended December 31, 2010 and 2009 Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009 Notes to Consolidated Financial Statements Page 33 EXHIBITS The following Exhibits are included herein: No. Description ---- ------------------------------------------------------------------------ 31.1 Certification of the Principal Executive pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). 31.2 Certification of the Principal Financial Officer 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 Principal Executive Officer of HST Global, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). 32.2 Certification by the Principal Financial Officer of HST Global, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. HST GLOBAL, INC. (the registrant) By: \s\ Ron Howell -------------- Ron Howell Chief Executive Officer Date: May 13, 2011 Page 34

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HSTC 10-K Fiscal year ended Dec. 31, 2010