# EDGAR Filing Document

**Accession Number:** 0001811703
**File Stem:** 0001477932-23-001449
**Filing Date:** 2023-3
**Character Count:** 77991
**Document Hash:** 27cac050a4bf67d234be94811e973b96
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-23-001449.hdr.sgml**: 20230313

**ACCESSION NUMBER**: 0001477932-23-001449

**CONFORMED SUBMISSION TYPE**: C-AR

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HPEC, Inc.
- **CENTRAL INDEX KEY:** 0001811703
- **IRS NUMBER:** 842018419
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C-AR
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-26394
- **FILM NUMBER:** 23726849

**BUSINESS ADDRESS:**
- **STREET 1:** 67 HAMPTON ROAD
- **CITY:** SOUTHAMPTON
- **STATE:** NY
- **ZIP:** 11969
- **BUSINESS PHONE:** 2125186685

**MAIL ADDRESS:**
- **STREET 1:** 67 HAMPTON ROAD
- **STREET 2:** SUITE102
- **CITY:** SOUTHAMPTON
- **STATE:** NY
- **ZIP:** 11968

### Attached PDF Documents

**Attachment 1:** `991.pdf`

# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM C-AR
UNDER THE SECURITIES ACT OF 1933

☐ Form C: Offering Statement
☐ Form C-U: Progress Update
☐ Form C/A: Amendment to Offering Statement
☐ Check box if Amendment is material and investors must reconfirm within five business days.
☑ Form C-AR: Annual Report
☐ Form C-AR/A: Amendment to Annual Report
☐ Form C-TR: Termination of Reporting

**Name of issuer**

HPEC, Inc.

**Legal status of issuer**

Corporation

**Jurisdiction of Incorporation/Organization**

Delaware

**Date of organization**

June 7, 2019

**Physical address of issuer**

13727 SW 152nd Street #671

Miami, FL 33177

**Website of issuer**

www.hpec.com

**Current number of employees**

1

|  | Most recent fiscal year-end (2021) | Prior fiscal year-end (2020) |
| --- | --- | --- |
| Total Assets | $174,910 | $412,672 |
| Cash and Cash Equivalents | $145,277 | $387,289 |
| Accounts Receivable | $0 | $0 |
| Short-term Debt | $ | $0 |
| Long-term Debt | $ | $0 |
| Revenues/Sales | $0 | $0 |
| Cost of Goods Sold | $0 | $0 |
| Taxes Paid | $0 | $0 |
| Net Income | $0 | $0 |

# Form C-AR

This Form C-AR (including the cover page and all exhibits attached hereto, the 'Form C-AR') is being furnished by HPEC, Inc., a Delaware Corporation (the 'Company,' as well as references to 'we,' 'us,' or 'our') for the sole purpose of providing certain information about the Company as required by the Securities and Exchange Commission ('SEC').

No federal or state securities commission or regulatory authority has passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the accuracy or completeness of any disclosure document or literature. The Company is filing this Form C-AR pursuant to Regulation CF (§ 227.100 et seq.) which requires that it must file a report with the Commission annually and post the report on its website at www.hpec.com no later than 120 days after the end of each fiscal year covered by the report. The Company may terminate its reporting obligations in the future in accordance with Rule 202(b) of Regulation CF (§ 227.202(b)) by 1) being required to file reports under Section 13(a) or Section 15(d) of the Exchange Act of 1934, as amended, 2) filing at least one annual report pursuant to Regulation CF and having fewer than 300 holders of record, 3) filing annual reports for three years pursuant to Regulation CF and having assets equal to or less than $10,000,000, 4) the repurchase of all the Securities sold pursuant to Regulation CF by the Company or another party, or 5) the liquidation or dissolution of the Company.

The date of this Form C-AR is March 10, 2023.

THIS FORM C-AR DOES NOT CONSTITUTE AN OFFER TO PURCHASE OR SELL SECURITIES.

# Forward Looking Statement Disclosure

*This Form C-AR and any documents incorporated by reference herein or therein contain forward-looking statements and are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this Form C-AR are forward-looking statements. Forward-looking statements give the Company's current reasonable expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'plan,' 'intend,' 'believe,' 'may,' 'should,' 'can have,' 'likely' and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.*

*The forward-looking statements contained in this Form C-AR and any documents incorporated by reference herein or therein are based on reasonable assumptions the Company has made in light of its industry experience, perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this Form C-AR, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond the Company's control) and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual operating and financial performance and cause its performance to differ materially from the performance anticipated in the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect or change, the Company's actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements.*

*Any forward-looking statement made by the Company in this Form C-AR or any documents incorporated by reference herein or therein speaks only as of the date of this Form C-AR. Factors or events that could cause our actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.*

# About this Form C-AR

You should rely only on the information contained in this Form C-AR. We have not authorized anyone to provide you with information different from that contained in this Form C-AR. You should assume that the information contained in this Form C-AR is accurate only as of the date of this Form C-AR, regardless of the time of delivery of this Form C-AR. Our business, financial condition, results of operations, and prospects may have changed since that date.

Statements contained herein as to the content of any agreements or other document are summaries and, therefore, are necessarily selective and incomplete and are qualified in their entirety by the actual agreements or other documents.

# SUMMARY

The following summary is qualified in its entirety by more detailed information that may appear elsewhere in this Form C-AR and the Exhibits hereto.

HPEC, Inc. (the 'Company' or 'HPEC') is a Delaware Corporation, formed on June 7, 2019.

The Company is located at 13727 SW 152ns Street #671, Miami, FL 33177

The Company's website is www.hpec.com

The information available on or through our website is not a part of this Form C-AR.

# Business

The corporate practice medicine is increasingly infringing on the physician patient relationship and it is in direct conflict with the Hippocratic Oath that physicians took. The HPEC platform aims to leverage self-sovereign identity technology (SSI) in order to eliminate that conflict and re-align values. SSI gives physicians ownership of their personal and professional data, this will reduce the influence of third parties that do not provide value to the doctor patient relationship. SSI is a new way to give individuals agency and autonomy over their interaction with the digital world.

SSID's provide opportunities that expand across future healthcare applications including health record management, payments, physician advertising, digital health, telemedicine and more, but the first and most important use case lies in physician credentialing and identity as it is a necessary, timely and sustainably revenue generating application of this new technology. Billions of healthcare dollars are spent annually on physician identity, and credential data management, yet highly accurate physician directories do not exist. All current systems to address this issue are highly inaccurate, administratively wasteful, and have a critical dependence on the physician's volunteer participation. The physicians

time is valuable, and therefore it has been difficult to incentivize physicians to keep their data accurate. Blockchain enabled self-sovereign digital identities (SSID’s) provide an opportunity for physicians to regularly and seamlessly update their information in an accurate and cryptographically secure and shareable way.

Importantly SSID’s can provide many desired connection, collaboration and communication services that physicians need, which will incentivize them to participate in keeping the information accurate in exchange for these services. SSID’s create an opportunity for physicians to store and keep their portable verifiable credentials (VC’s) which will reduce the time it takes to change jobs or insurance networks, so they can get to work quickly in order to spend more time caring for patients. Time is something both the patient and physician community highly value.

The HPEC platform also provides an opportunity for physicians to be paid directly for the services, and to have their reputation and performance measured and rewarded. It allows physicians to communicate about patient care among each other directly without the friction and security risks associated with legacy health record systems.

## RISK FACTORS

### Limited Operating History

The Company was formed in 2019, has no historical operating results and we will not commence operations in the near future. As a result of our limited operating history, our ability to forecast our future operating results is limited and subject to a number of uncertainties, including our ability to plan for and model future growth. We have encountered and will encounter risks and uncertainties frequently experienced by growing companies in rapidly changing industries, such as the risks and uncertainties described herein. If our assumptions regarding these risks and uncertainties (which we use to plan our business) are incorrect or change due to changes in our markets, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations and our business could suffer.

### The product offering is still under development and may undergo significant changes over time.

Our product (the “Platform”) is complex, novel and untested. Its creation requires the integration of multiple existing technologies, as well as the development of new software. The development and maintenance of our multiple could lead to unanticipated and substantial costs, delays or other operational or financial difficulties. There can be no assurance that we will have the financial and technological resources necessary to complete the development of our product offering if its development costs more than we have estimated or requires technology and expertise that we do not have and cannot develop. There is a possibility that our product offering may never be launched and even if we are able to develop our product offering as contemplated, we may not be able to

develop it on a timely basis. Any of these factors could materially adversely affect our ability to commercialize and generate any revenue from our proposed product offering.

**We may experience systems failures or capacity constraints that could materially harm our ability to conduct our operations and execute our business strategy.**

We will be heavily dependent on the capacity, reliability and security of the computer and communications systems and software supporting our operations. We plan to receive and/or process a large portion of our services through electronic means, such as through public and private communications networks. Our systems, or those of our third-party providers, may fail, be shut down or, due to capacity constraints, operate slowly. If any of our systems do not operate properly, are compromised or are disabled, including as a result of system failure, employee or customer error or misuse of our systems, we could suffer financial loss, liability to customers, regulatory intervention or reputational damage that could affect demand by current and potential users of our market.

**Our business will be adversely affected if we are unable to attract and retain talented employees, including sales, technology and development professionals.**

Our business operations will require highly specialized knowledge of technological innovation. If we are unable to hire or retain the services of talented employees, including executive officers, other key management and sales, technology, and development professionals, we would be at a competitive disadvantage. In addition, recruitment and retention of qualified staff could result in substantial additional costs. The loss of the services of one or more of our executive officers or other key professionals or our inability to attract, retain and motivate qualified personnel, could have a material adverse effect on our ability to operate our business.

**We have not identified all the persons that we will need to hire to provide services and functions critical to the development of the business and no assurance can be given that we will be able to hire the necessary persons on acceptable terms, if at all.**

Our business is in its developmental stage and we have not identified all the persons that we will need to hire to provide services and functions critical to the development of the business. If we are unable to hire persons with the necessary expertise on terms acceptable to us then we will not be able to develop the Platform as contemplated. Further, even if we are able to hire such service providers, they might be unable to meet our specifications and requirements, which could have a material adverse effect on our ability to develop and launch our business plan.

**Our compliance and risk management programs might not be effective and may result in outcomes that could adversely affect our reputation, financial condition and operating results.**

Our ability to comply with applicable laws and rules is largely dependent on our establishment and maintenance of compliance, review and reporting systems, as well as our ability to attract and retain qualified compliance and other risk management personnel. We face the risk of significant intervention by regulatory authorities, including extensive examination and surveillance activity. c

# **Operational risks, such as misconduct and errors of our employees or entities with which we do business, are difficult to detect and deter and could cause us reputational and financial harm.**

Our employees and agents could engage in misconduct which may include conducting in, and concealing unauthorized activities, improper use, or unauthorized disclosure of confidential information. This may not be easily foreseen or detected in a timely manner. Our ability to detect and prevent errors or misconduct by entities with which we do not always have control over, or knowledge about, makes it impossible to deter misconduct by our employees. The precautions we take to prevent and detect this activity may be ineffective misinformed or may be limited further by other unknown or unforeseen activities. Such misconduct could subject us to financial losses or regulatory sanctions and materially harm our reputation, financial condition, and operating results.

# **If we do not keep pace with technological changes, our solutions may become less competitive and our business may suffer.**

Our market is characterized by rapid and sudden technological change, frequent product and service innovation and evolving industry standards. If we are unable to provide enhancements and new features for our existing solutions or new solutions that achieve market acceptance or that keep pace with these technological developments, our business could be adversely affected. The success of enhancements, new features and solutions depends on several factors, including the timely completion, introduction and market acceptance of the enhancements or new features or solutions. Failure in this regard may significantly impair our revenue growth. In addition, because our solutions are designed to operate on a variety of systems, we will need to continuously modify and enhance our solutions to keep pace with changes in internet-related hardware, software, communication, browser and database technologies. We may not be successful in either developing these modifications and enhancements or in bringing them to market in a timely fashion. Furthermore, uncertainties about the timing and nature of new network platforms or technologies, or modifications to existing platforms or technologies, could increase our research and development expenses. Any failure of our solutions to keep pace with technological changes or operate effectively with future network platforms and technologies could reduce the demand for our solutions, result in customer dissatisfaction and adversely affect our business.

# **General global market and economic conditions may have an adverse impact on the Company's operating performance, results of operations and/or cash flow.**

The Company may be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed to, and may continue to contribute to, slowdowns in the information technology industry at large. Weakness in the economy could have a negative effect on the Company’s business, operations and financial condition, including decreases in revenue and operating cash flow, and inability to attract future equity and/or debt financing on commercially reasonable terms. Suppliers on which the Company relies for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on the Company’s operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant, adverse impact on the Company’s business, financial condition and results of operations, and hence and the products that are yet to be developed and the ability to develop.

### **We may have difficulty executing our growth strategy and maintaining our growth effectively**

Our growth requires additional investment in personnel, facilities, information technology infrastructure, and data management systems and controls, and may place a significant strain on our management and resources. Our growth strategy also may subject us to increased legal, compliance and regulatory obligations.

### **We cannot assure you that our compliance policies and procedures will always be effective or that we will always be successful in monitoring or evaluating our risks.**

In the case of alleged non-compliance with applicable laws or regulations, we could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits, including by customers, for damages, which could be significant. Any of these outcomes may adversely affect our reputation, financial condition and operating results.

### **The loss of key personnel could have a material adverse effect on us.**

Our success depends solely on the continued services of key personnel who have extensive market knowledge and long-standing industry relationships. In particular, our reputation among and our relationships with key industry leaders are the direct result of a significant investment of time and effort to build credibility in a highly specialized industry.

### **We will need to continue to upgrade, expand and increase the capacity of our systems as our business grows and as we execute our business strategy.**

Although many of our systems are designed to accommodate additional volume and products and services without redesign or replacement, we will need to continue to make significant investments in additional hardware and software to provide processing services. If we cannot increase the capacity and capabilities of our systems to

accommodate an increasing volume of transactions and to execute our business strategy, our ability to maintain or expand our businesses would be adversely affected.

# **Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.**

Our success substantially depends upon our proprietary methodologies and other intellectual property rights. Unauthorized use of our trade secret by third parties may damage our brand and our reputation. We rely on a trade secret laws, employee and third-party non-disclosure and non-competition agreements and other methods to protect our intellectual property.

However, unauthorized parties may attempt to copy or obtain and use our technology to develop products with the same functionality as our solutions. We cannot assure you that the steps we take to protect our intellectual property will be adequate to deter misappropriation of our proprietary information or that we will be able to detect unauthorized use and take appropriate steps to protect our intellectual property. United States federal and state intellectual property laws offer limited protection, and the laws of some countries provide even less protection. Moreover, changes in intellectual property laws, such as changes in the law regarding the patentability of software, could also impact our ability to obtain protection for our solutions. In addition, patents may not be issued with respect to our pending or future patent applications. Those patents that are issued may not be upheld as valid, may be contested or circumvented, or may not prevent the development of competitive solutions.

We might be required to spend significant resources and divert the efforts of our technical and management personnel to monitor and protect our intellectual property. Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property. Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Any failure to secure, protect and enforce our intellectual property rights could seriously adversely affect our brand and adversely impact our business.

# **We rely on the services of third-party data center hosting facilities. Interruptions or delays in those services could impair the delivery of our service and harm our business.**

Our platform has been developed with, and is based on, cloud computing technology. It is hosted pursuant to service agreements on servers by third-party service providers. We do not control the operation of these providers or their facilities, and the facilities are vulnerable to damage, interruption or misconduct. Unanticipated problems at these facilities could result in lengthy interruptions in our services. If the services of one or more of these providers are terminated, disrupted, interrupted or suspended for any reason, we could experience disruption in our ability to offer our solutions, or we could

be required to retain the services of replacement providers, which could increase our operating costs and harm our business and reputation. In addition, as we grow, we may move or transfer our data and our customers’ data to other cloud hosting providers. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of our service. Further, any damage to, or failure of, the cloud servers that we use could result in interruptions in our services. Interruptions in our service may damage our reputation, reduce our revenue, cause us to issue credits or pay penalties, cause customers to terminate their subscriptions and adversely affect our renewal rates and our ability to attract new customers. Our business would be harmed if our customers and potential customers believe our service is unreliable.

**If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success, and our business may be harmed.**

We believe our corporate culture is a critical component to our success. We have invested substantial time and resources in building our team. As we grow and develop the infrastructure of a public company, we may find it difficult to maintain our corporate culture. Any failure to preserve our culture could negatively affect our future success, including our ability to retain and recruit personnel and effectively focus on and pursue our corporate objectives.

**Data security concerns and laws or other domestic or foreign regulations may reduce the effectiveness of our solutions and adversely affect our business.**

We manage digital assets containing confidential information regarding customers. Privacy and data security are rapidly evolving areas of regulation, and additional regulation in those areas, some of it potentially difficult and costly for us to accommodate, is frequently proposed and occasionally adopted. Changes in laws restricting or otherwise governing data and transfer thereof could result in increased costs and delay operations.

In addition to government activity, the technology industry and other industries are considering various new, additional or different self-regulatory standards that may place additional burdens on us. If the processing of private and confidential information were to be curtailed in this manner, our software solutions may be less effective, which may reduce demand for our solutions and adversely affect our business. Furthermore, government agencies may seek to access sensitive information that our customers upload to our service providers or restrict customers’ access to our service providers. Laws and regulations relating to government access and restrictions are evolving, and compliance with such laws and regulations could limit adoption of our services by customers and create burdens on our business. Moreover, regulatory investigations into our compliance with privacy-related laws and regulations could increase our costs and divert management attention.

# **If we or our service providers fail to keep our customers' information confidential or otherwise handle their information improperly, our business and reputation could be significantly and adversely affected.**

If we fail to keep customers’ proprietary information and documentation confidential, we may lose existing customers and potential new customers and may expose them to significant loss of revenue based on the premature release of confidential information. While we have security measures in place to protect customer information and prevent data loss and other security breaches, these measures may be breached as a result of third-party action, employee error, malfeasance or otherwise. Because the techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not identified until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.

In addition, our service providers (including, without limitation, hosting facilities, disaster recovery providers and software providers) may have access to our customers’ data and could suffer security breaches or data losses that affect our customers’ information. If an actual or perceived security breach or premature release occurs, our reputation could be damaged and we may lose future sales and customers. We may also become subject to civil claims, including indemnity or damage claims in certain customer contracts, or criminal investigations by appropriate authorities, any of which could harm our business and operating results. Furthermore, while our errors and omissions insurance policies include liability coverage for these matters, if we experienced a widespread security breach that impacted a significant number of our customers for whom we have these indemnity obligations, we could be subject to indemnity claims that exceed such coverage.

# **We may need to raise additional capital, which may not be available to us.**

We will require substantial funds to support the implementation of our business plan. Our future liquidity and capital requirements are difficult to predict as they depend upon many factors, including the success of our solutions and competing technological and market developments. In the future, we may require additional capital to respond to business opportunities, challenges, acquisitions, a decline in the level of customer prepayments or unforeseen circumstances and may determine to engage in equity or debt financings or enter into credit facilities for other reasons, and we may not be able to timely secure additional debt or equity financing on favorable terms, or at all. Any debt financing obtained by us in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. If we raise additional funds through further issuances of equity, convertible debt securities or other securities convertible into equity, our existing stockholders could suffer significant dilution in their percentage ownership of our company, and any new equity securities we issue could have rights, preferences and privileges senior to those of holders of common stock. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability

to continue to grow or support our business and to respond to business challenges could be significantly limited.

# **We operate and offer our services in many jurisdictions and, therefore, may be subject to federal, state, local and foreign taxes that could harm our business.**

As an organization that operates in many jurisdictions in the United States and around the world, we may be subject to taxation in several jurisdictions with increasingly complex tax laws, the application of which can be uncertain. The authorities in these jurisdictions, including state and local taxing authorities in the United States, could successfully assert that we are obligated to pay additional taxes, interest and penalties. In addition, the amount of taxes we pay could increase substantially as a result of changes in the applicable tax principles, including increased tax rates, new tax laws or revised interpretations of existing tax laws and precedents, which could have a material adverse effect on our liquidity and operating results. The authorities could also claim that various withholding requirements apply to us or our subsidiaries or assert that benefits of tax treaties are not available to us or our subsidiaries, any of which could have a material impact on us and the results of our operations. In addition, we may lose sales or incur significant costs should various tax jurisdictions impose taxes on either a broader range of services or services that we have performed in the past. We may be subject to audits of the taxing authorities in any such jurisdictions that would require us to incur costs in responding to such audits. Imposition of such taxes on our services could result in substantially unplanned costs, would effectively increase the cost of such services to our customers and could adversely affect our ability to retain existing customers or to gain new customers in the areas in which such taxes are imposed.

Some of the jurisdictions in which we operate may give us the benefit of either relatively low tax rates, tax holidays or government grants, in each case that are dependent on how we operate or how many jobs we create and employees we retain. We plan on utilizing such tax incentives in the future as opportunities are made available to us. Any failure on our part to operate in conformity with applicable requirements to remain qualified for any such tax incentives or grants may result in an increase in our taxes. In addition, jurisdictions may choose to increase rates at any time due to economic or other factors. Any such rate increase could harm our results of operations.

In addition, changes to U.S. tax laws that may be enacted in the future could impact the tax treatment of our foreign earnings. Due to expansion of our international business activities, any changes in the U.S. taxation of such activities could increase our worldwide effective tax rate and adversely affect our financial position and results of operations.

# **We are subject to general litigation that may materially adversely affect us.**

From time to time, we may be involved in disputes or regulatory inquiries that arise in the ordinary course of business. We expect that the number and significance of these potential disputes may increase as our business expands and our company grows larger.

While our agreements with customers limit our liability for damages arising from our solutions, we cannot assure you that these contractual provisions will protect us from liability for damages in the event we are sued. Although we may carry general liability insurance coverage, our insurance may not cover all potential claims to which we are exposed or may not be adequate to indemnify us for all liability that may be imposed. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time, and result in the diversion of significant operational resources. Because litigation is inherently unpredictable, we cannot assure you that the results of any of these actions will not have a material adverse effect on our business, financial condition, results of operations and prospects.

# **We are controlled by our Chief Executive Office/founder, whose interests may differ from those of the other shareholders.**

As of the date of this Offering, our Founder, Leah Houston, MD beneficially owns 96% shares of our Common Stock, and her majority ownership will continue even after this Offering is completed. Therefore, Dr. Houston is now and will be in the future in a position to elect or change the members of the board of directors and to control our business and affairs including certain significant corporate actions, including but not limited to acquisitions, the sale or purchase of assets and the issuance and offering of our shares. The Company also may be prevented from entering into transactions that could be beneficial to the other holders of the shares without Dr. Houston’s consent. Dr. Houston’s interests might differ from the interests of other shareholders.

# **We may never have a public market for our common stock or may never trade on a recognized exchange. Therefore, you may be unable to liquidate your investment in our stock.**

There is no established public trading market for our securities. Our shares are not and have not been listed or quoted on any exchange or quotation system.

# **We have broad discretion in the use of the net proceeds from our offering and may not use them effectively.**

We cannot specify with any certainty the particular uses of the net proceeds that we will receive from our offering. We will have broad discretion in the application of the net proceeds, including working capital, possible acquisitions, and other general corporate purposes, and we may spend or invest these proceeds in a way with which our stockholders disagree. The failure by our management to apply these funds effectively could adversely affect our business and financial condition. Pending their use, we may invest the net proceeds from our offering in a manner that does not produce income or that loses value. These investments may not yield a favorable return to our investors.

# **Blockchain is a nascent and rapidly changing technology.**

The development of blockchain networks is a new and rapidly evolving industry that is subject to a degree of uncertainty. Factors affecting the further development of the blockchain industry include:

- continued worldwide growth in the adoption and use of blockchain networks and assets;
- the maintenance and development of the open-source software protocol of blockchain networks;
- changes in consumer demographics and public tastes and preferences;
- the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies;
- the general economic environment and conditions relating to blockchain networks and assets.

**The application of distributed ledger technology is novel.**

Blockchain is an emerging technology that offers new capabilities which are still evolving. In most cases, software used by blockchain asset issuing entities is in an early development stage. There is no assurance that the process for receiving, use and ownership of blockchain assets will be uninterrupted or error-free and there is an inherent risk that the software, network, blockchain assets and related technologies and theories could contain undiscovered technical flaws or weaknesses, the cryptographic security measures that authenticate transactions and the distributed ledger could be compromised, and breakdowns and trading halts could cause the partial or complete inability to use or loss of blockchain assets.

**Similar to any technology network, blockchain networks may be the target of malicious cyber-attacks or may contain exploitable flaws, which may result in security breaches and the loss or theft of blockchain assets.**

Most blockchain networks operate based on some form of open-source software. An open- source project is not represented, maintained or monitored by an official organization or authority. The open-source nature of blockchain network software, such as the Ethereum network, means that it may be difficult for the Company to maintain or develop blockchain networks. Developers and other contributors to blockchain network protocols like Ethereum are generally not directly compensated for their contributions in maintaining and developing the protocol. If the awards and fees paid for maintenance of a network are not sufficiently high to incentivize miners, miners may respond in a ways that reduces confidence in the blockchain network. To the extent that any miners cease to record transactions in solved blocks, transactions that do not include the payment of a transaction fee will not be recorded on the blockchain until a block is solved by a miner who does not require the payment of transaction fees. Any widespread delays in the recording of transactions could result in a loss of confidence in the blockchain network and its assets.

Blockchain networks may also be the target of malicious attacks seeking to identify and exploit weaknesses in the software. Third parties not affiliated with the Company may introduce weaknesses or bugs into the core infrastructure elements of the Company’s blockchain network and open-source code which may result in the loss or theft of blockchain assets. Such events may result in a loss of trust in the security and operation of blockchain networks and have a negative impact on the Company.

# **We are subject to compliance with securities law, which exposes us to potential liabilities, including potential rescission rights.**

We may offer to sell our capital to investors pursuant to certain exemptions from the registration requirements of the Securities Act, as well as those of various state securities laws.

The basis for relying on such exemptions is factual; that is, the applicability of such exemptions depends upon our conduct and that of those persons contacting prospective investors and making the Offering. We may not seek any legal opinion to the effect that any such offering would be exempt from registration under any federal or state law. Instead, we may elect to relay upon the operative facts as the basis for such exemption, including information provided by investor themselves.

If any such offering did not qualify for such exemption, an investor would have the right to rescind its purchase of the securities if it so desired. It is possible that if an investor should seek rescission, such investor would succeed. A similar situation prevails under state law in those states where the securities may be offered without registration in reliance on the partial preemption from the registration or qualification provisions of such state statutes under the National Securities Markets Improvement Act of 1996. If investors were successful in seeking rescission, we would face severe financial demands that could adversely affect our business and operations. Additionally, if we did not in fact qualify for the exemptions upon which it has relied, we may become subject to significant fines and penalties imposed by the SEC and state securities agencies.

# **Investors may lack information for monitoring their investment.**

Shares of common stock does not have any information rights attached to them (other than certain rights to Company information afforded equity holders under Delaware law), and investors may not be able to obtain all the information they would want regarding the Company. The Company is not currently registered with the SEC and currently has no periodic reporting requirements. As a result of these difficulties, as well as other uncertainties, a purchaser may not have accurate or accessible information about the Company.

**We have no operating history and therefore valuation of the Common Stock is difficult and the purchase price to be paid by you for Common Stock pursuant to the terms of the applicable Offering may be too high.**

Our operations to date have consisted of planning and developing the Platform as currently conceived, and establishing relationships with potential service providers. Accordingly, we have no operating history upon which an evaluation of our prospects and future performance can be made.

## **BUSINESS**

See Business Plan attached as Exhibit A

## **FINANCIAL INFORMATION**

Please see the financial information listed on the cover page of this Form C-AR and attached hereto in addition to the following information. Financial statements are attached hereto as Exhibit B.

### **Liquidity and Capital Resources**

In November 2020, the Company closed an offering pursuant to Regulation CF and raised $454,878.

The Company currently does not have any additional outside sources of capital other than the proceeds from the Regulation CF Offering.

### **Capital Expenditures and Other Obligations**

The Company does not intend to make any material capital expenditures in the future.

### **Material Changes and Other Information**

The financial statements are an important part of this Form C-AR and should be reviewed in their entirety. The financial statements of the Company are attached hereto as Exhibit B.

### **Description of the Issuer's Securities Price, Ownership & Capital Structure**

| Security Class | Amount Authorized | Amount Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Common (Class A and Class B) | 200,000,000 | 100,000,000 Class B 2,900,000 Class A | Yes |
| Preferred | 10,000,000 | 0 | No |
| Token Class | 190,000,000 | 0 | No |

# **Summary of differences between security offered and outstanding securities:**

Each holder of Class A Common Stock shall be entitled to one (1) vote for each share of Class A Common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation.

Each holder of Class B Common Stock shall be entitled to ten (10) votes for each share of Class B Common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation.

There are no shares of Preferred Stock or Token Class Stock outstanding.

# **SIGNATURE**

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C/A and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

/s/ Leah Houston

Leah Houston

CEO

(Title)

March 10, 2023

(Date)

I, Leah Houston, the Chief Executive Officer of HOEC, Inc. certify that the financial statements of HOEC, Inc. included in this Form are true and complete in all material respects.

/s/ Leah Houston

Leah Houston

CEO

(Title)

March 10, 2023

(Date)

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C/A has been signed by the following persons in the capacities and on the dates indicated.

**Attachment 2:** `992.pdf`

# Humanitarian Physicians Empowerment Community

## About the problem we are solving:

The healthcare industry is in crisis. The system is fraught with friction and administrative waste, which has created a crisis of trust. The increasing regulatory burden has led to the physician's time being increasingly misappropriated to redundant non-care tasks, like credentialing and the maintenance of electronic records for patients. This takes physicians away from the bedside, and reduces quality of care. Physicians are frustrated, and many are leaving medicine, cutting back their hours, or retiring early.$^{1}$ Our healthcare system is expensive, and although physicians direct 80% of the $3.6 trillion-dollar healthcare expenditure, through their consultation, prescribing and referral patterns, they have little say in how the system runs. An estimated 23% of every healthcare dollar is wasted unnecessarily much of it on administrative costs, and this does not include the cost of the physician's uncompensated administrative time.$^{2}$

Billions of healthcare dollars are spent annually on physician identity, and credential data management, yet highly accurate physician directories remain a challenge.$^{3}$ All current systems to address this issue are highly inaccurate, administratively wasteful, and have a critical dependence on the physician's volunteer participation. Until now it has been difficult to incentivize physicians to keep their data accurate. Blockchain enabled self-sovereign digital identities (SSID's) provide an opportunity for physicians to regularly and seamlessly update their information in an accurate and cryptographically secure way. Furthermore, SSID's provide opportunities that expand across potential future healthcare applications including electronic health record management, physician advertising, digital health, and telemedicine.

Importantly SSID's have the ability to provide many desired communications services that physicians need, which will incentivize them to participate in keeping the information accurate in exchange for these services. It would also reduce their administrative time so they could spend more time caring for patients, which is something physicians highly value. The HPEC platform also provides an opportunity for physicians to be paid directly for the services on the platform, and to have performance measured and rewarded. It allows them to communicate about patient care among each other directly without a third party EHR, providing an added layer of HIPAA protection.

Despite the HITECH act's promise of data sharing, our current systems also lack interoperability. As health systems grow, they collect and maintain more and more data from both physicians and patients, but the data is dirty and it is getting increasingly difficult to store that data, analyze it, and keep it secure. In accordance with the 21$^{st}$ Century Cures Act interoperability will be a requirement$^{4}$, and decentralized identity solutions can provide that. Blockchain Distributed Ledger technology provides new opportunities for secure data storage, analysis and exchange. Identity solutions for physicians, other providers, health systems and patients allow for decentralized data collection and storage while eliminating unnecessary administrative waste.

Physician identity is unique, as the credentialing and onboarding is especially onerous due to the multiple steps needed to validate and authenticate their credentials. This is a big pain point for physicians, health systems and insurers alike, which is why the HPEC solution focuses on physician identity specifically. A digital identity solution like HPEC, will alleviate a lot of the redundant credentialing that private groups, insurers, and health systems go through, and will save many hours of the physician's time. HPEC aims to provide SSID's to the physician community in order to alleviate these pain points for physician's, insurance companies, and health systems and will alleviate much of the friction in this process for all parties involved.

$^{1}$2018 Physicians Foundation Survey. Survey conducted on behalf of The Physicians Foundation by Merritt Hawkins. Completed September, 2018, and available online at www.physiciansfoundation.org.

$^{2}$ Steffie Woolhandler and David U. Himmelstein, 'Single-Payer Reform: The Only Way to Fulfill the President's Pledge of More Coverage, Better Benefits, and Lower Costs,' *Annals of Internal Medicine* 166 (8) (2017): 587-588.

$^{3}$1 'Online Provider Directory Review Report,' US, Department of Health & Human Services, Centers for Medicare & Medicaid Services (January 2018). Retrieved April 10, 2018, from https://www.cms.gov/Medicare/Health-Plans/ManagedCareMarketing/Downloads/Provider_Directory_Review_Industry_Report_Round_2_Updated_1-31-18.pdf

$^{4}$21$^{st}$ Century Cures Act: Interoperability, Information Blocking and the ONC Health IT Certification Program US Department of health and Human Services: 45 CFR Parts 170 and 171 RIN 0955-AA01 https://www.healthit.gov/sites/default/files/cures/2020-03/ONC_Cures_Act_Final_Rule_03092020.pdf Retrieved March 2020

## About the platform:

HPEC is giving each physician and surgeon a self-sovereign digital identity on a distributed ledger. The identity will be attached to a digital asset wallet that holds the physician's credentials. The credentials will be portable, and validated and authenticated digitally as necessary by the respective credentialing institution, giving physicians instantaneous employment mobility. HPEC will give physicians sovereign control over their digital identity and professional brand along with the data that identity creates including;

Physicians Credentials -The current credentialing process is a laborious 2-4 month process fraught with administrative waste. It is a major pain point for physicians, hospitals and insurance companies. Physicians already own their credentials. HPEC will translate ownership of those credentials to a digital space, make them portable and streamline the process. When credentials are validated physicians can also set up a direct payment system so they can be paid any time they provide a service or their credentials are used. They can be paid at the time of service, eliminating the uncompensated administrative burden physicians carry with the current insurance reconciliation process.

Patient and Physician Data - The individual doctors generate data as part of their work and documentation on systems like electronic health records. That data is currently centralized to those siloed entities with unlimited access and ability for those third parties to capitalize on that data for their own interest. It also places those entities and the health system that contract with them at risk, for security breach and HIPAA violations. With the 21st century CURES act patients will need to have better access to their records, and the best way for them to have that access is through a self-sovereign medical records platform that the HPEC network can plug into. Through this technology the record will now be permissioned by the patient through the doctor that created it, giving the physician agency and the patient stewardship over their protected health information. The data will be anonymous and properly federated to ensure it is clean. Patient and physician data will be protected information and will be kept private and controlled by the end user, relieving the health system of that burden.

Physician Communication and Innovation. Physicians currently communicate largely via word of mouth. Hospital e-mail, social media groups, journal articles and conferences are all centralized and controlled by third parties. Those communication platforms are also not secure. With HPEC physicians will be able to communicate and democratize policy and practice guidelines on a secure confidential decentralized governance platform. The platform will allow for decision making to be democratized and organized. This will in effect create a decentralized digital physicians guild.

*The reason blockchain is necessary is because it creates a secure and censorship resistant space for physicians to do their job and communicate with their patients and among each-other free from control of special interests including electronic records companies and insurance companies. HPEC will be designed to integrate with current platforms that enable*

Peer to peer payments
Self-Sovereign Patient Records
Data analytics and sharing

## How this will help patients:

1.) Patients often choose their physician based on insurance or where they got care last. When physicians have freedom to move patients will now have more choice in who they see- obtaining personalized care directly from the physician they choose.
2.) Patients will have immediate access to the records the physician creates, shortly after the time of service. After the note is signed, they can stay up to date informed and ask questions through the platform.
3.) The patients medical records and data will also be portable, permissioned, owned by them, and secured on a decentralized database, so moving forward they will not be at risk for redundant tests or missing information.

## How it works:

![img-0.jpeg](img-0.jpeg)

### Revenue Model:

- 2% transaction fee for every payment to a physician through the network

### Retention Model:

- 50% of all revenue generated is invested back into the community

### Users and Customer Base:

The physicians will be majority owners of the platform, and they will also be the customers. Eventually once the platform is built patients, industry, and enterprise will also be customers. Revenue will be generated by a proposed 2% transactional fee of anything the independent physician charges. Physicians be incentivized to utilized the platform for peer to peer payments, governance and credentialing and will receive services in exchange for their activity on the network. Those services will be paid for through a retention of 50% of the transactional fee monitored and kept secure by cryptography. Data generated on the platform can be shared directly only by the physician who generates that data.

## Operation Expenses and Net Results:

Of the EBIDTA after cost 50% will be returned to the Founders, Initial Founding Partners, and investors who own the HPEC Network.

Estimated cost to maintain the platform will vary based on number of users and number of transactions, but will be proportional. It is estimated that the total cost will unlikely exceed $5M annually.

The other 50% will be returned to the Physician Members through the HPEC Community in the form of services.

## Revenue Stream Example 1:

| Average total annual physician income before taxes | $250,000 |
| --- | --- |
| Lets assume only 20% flows through HPEC per physician user | x 20% = $50,000 |
| Critical # of prospective physician members* | x 70,000 |
| Total | = $3.5 Billion/year |
| Total Gross Annual Revenue | 3,500,000,000 x 2% transactional fee |
| Cost to maintain platform: | = $70,000,000 |
| EBIDTA (total earnings after costs) | - $5,000,000 |
| Divide by 2 (50% to investors and 50% back to the community) | = $65,000,000 |
|  | = $32,500,000 Net Return to Investors |

* As of 12 Jan 2020, CMS NPI files identified exactly 1,021,864 active physicians (MD/DO) registered with a U.S. service address. 70,000 physicians, is approximately 7% of the physician population. As the platform grows we expect this number to increase.

## Revenue Stream Further Examples

*Lets consider the possibility of capturing 10% of each market below* (2% transactional fee x 10% = 0.2%)

If employer sponsored coverage paid physicians directly instead of paying an insurance carrier.
One example is Google- who spend approximately $881M in 2017 on their insurance 0.2% = $1.76M.

Physician Data Industry (physicians will own their data): $2.1 Billion annually5 = $4.2 M

Digital Health Industry: $40 Billion annually projected to increase to 379 Billion by 20246 = $758 M
ex: Patient Data Industry: 2,000-200,000 per patient annually7
ex: One de-identified oncology record goes for up to $2,0008

With only 50% going to investors = $384 Million potential additional revenue

## Value in Savings and Services for Physician Members:

Advertisement -The HPEC platform will provide advertisement services similar to:
ZocDoc® which costs physicians $3,000 per year. Revenue generated in 2017: $141M
Doctor.com another example costs physicians $6000 per year.

Credentialing - Usually takes 10-20 hours of uncompensated time. Given that the average hourly rate for a physician is $200 this platform will save $3000 each credentialing event which happens every 2 years at minimum. Full service credentialing services also can also cost $3500 one time and $1200/year

Unclear Monetary Value:

- Ability for physicians to incubate and own their ideas, and intellectual property. ✓

- Ability for physicians to publish in a physician run journal free from hierarchy. ✓

- Ability for physicians to be paid immediately at the time of service. ✓

- Ability for industry to pay for and pool physician opinions and recommendations. ✓

- Ability for physicians communicate among each other and reward each other for efforts. ✓

5 Issue Brief: Administrative Provider Data. CAQH [Analysis completed by Booz & Co., now Strategy&, Inc.] (December 2011).

6 “Digital Health Market Poised to reach $379 Billion by 2024” Marketers Media based on “Digital Health Market Size By Technology Oct 2019” Global Market Insights By U. Sumant, & A. Deugre

7 The Emerging Value of Patient Generated Health Data by Mark Johnson, MHA, RN-BC, CPHIMSBrad Tittle, CIPP, President, CEO April 26, 2016

8 Electronic Health Records Market Size | EHR Industry Report 2018-2025 Grand View Research avail online www.grandviewresearch.com

![img-1.jpeg](img-1.jpeg)

### Competition and Market Analysis:

The healthcare system is slow to change and slow to adopt, however the physician community and the patients both want change. This puts HPEC at a competitive advantage from the start because any change that occurs outside the physician and patient community needs to comply with the desires of enterprise. Physicians already follow governmental regulations and will continue to do so on the HPEC platform.

When physicians and patients interact directly many of those hurdles are eliminated. Current laws such as the 21st century cures act, and the California Data Privacy and Protection act, as well as laws that mandate how credentials need to be validated are also in the favor of physicians and patients. HPEC aims to fix the user experience for physicians while also working with new solutions that are fixing the user experience for patients. We aim to dissolve the old healthcare system, and create a new open healthcare marketplace in order to replace the old model, rather than reform it.

Challenges include the need to create trust in the physician community. Having physician founders, and keeping it physician owned will create that trust. We will also need to properly message and market the platform as well as create an optimal user experience for all. Other challenges are technical and include difficulties in private key management and user experience, however those challenges will be overcome.

# Competitive Landscape

## ProCredEx and Axuall

The ProCredEx exchange will serve as a tool connecting previously disparate industry constituents enabling the request and receipt of verified credentials information in a highly secure, reliable, and economic manner. They are not building a *credentialing system*-rather a network and transaction infrastructure that connects sources and consumers of credentials information across the healthcare industry.

Axuall provides a streamlined approach to the validation of facts whereby individuals and organizations can share and reliably verify assertions necessary for compliance, commerce, and employment related to high-stake roles and operations. Axuall creates a global network linking those that attest to facts, those that verify facts, and those that subscribe to facts to enable self-sovereign, portable, real-time, and up-to-date sharing of digital credentials across the expanding marketplace and digital economy.

HPEC offers a similar platform, however both are working with enterprise, neither are physician owned and only Axuall is integrated into a self-sovereign model. HPEC may choose to work with Axuall because of their self-sovereign interface. HPEC will also provide communications and governance and neither Axuall or ProCredEx include these important features.

## Blockcerts

An open standard for creating, issuing, viewing, and verifying blockchain-based digital records. These records are registered on the blockchain, cryptographically signed, tamper-proof, and shareable. The goal is to provide individuals the capacity to possess and share their own official records of achievement.

Blockcerts provides self-sovereign credentials, but it does not provide a complete identity solution, and is not attached to governance. HPEC may work with Blockcerts, and has hopes to be interoperable, but Blockcerts only provides part of the functionality of HPEC.

## CAQH and Synaptic Alliance

CAQH is non-profit alliance that creates shared initiatives to streamline the business of healthcare. Through collaboration and innovation, CAQH has the ability to accelerate the transformation of business processes, delivering value to providers, patients and health plans.

The Synaptic Alliance is a consortium of insurance companies and health plans that have come together to share physician and provider data among each other on a closed permissioned blockchain in order to avoid Medicare advantage penalties of up to $25,000 per day for directories with high error rates.$^{9}$

CAQH and Synaptic Alliance are both centralized platforms that are dependent on physician participation, unlike HPEC which is a decentralized platform. Although physicians contribute to these platforms for “free,” physicians are not incentivized or paid to be on the platform. In fact, you can be penalized for not using CAQH. Utilizing CAQH is also time consuming and not self-sovereign therefore not controlled by the end user.

## Competitive Advantage:

*Physicians are the product of healthcare, and there is high demand for physician services. HPEC is a physician owned and operated platform. Prior to the release of this document 1/3 of funding was already committed by leaders in the physician community. Physicians trust other physicians. This is an egalitarian physician owned organization, where decisions are made by the physicians on the network - an attractive model to the physician community. The low transactional fee, and services provided in exchange for participation will attract physicians as well. HPEC is the only platform that offers physicians a true opportunity to preserve their professional rights, while also maintaining independence in order to restore autonomy to the physician community*

$^{9}$ Susan Jaffe, “Obamacare, Private Medicare Plans Must Keep Updated Doctor Directories In 2016,” Kaiser Health News (March 2015). Retrieved April 10, 2018, from https://khn.org/news/health-exchange-medicare-advantage-plans-must-keep-updated-doctor-directories-in-2016/

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

FOR PHYSICIANS | BY PHYSICIANS

![img-4.jpeg](img-4.jpeg)

HPEC

# $3.6T HEALTHCARE PROBLEM

![img-5.jpeg](img-5.jpeg)

**$5B ANNUAL COST**
**PHYSICIAN IDENTITY &**
**CREDENTIAL MANAGEMENT**

No secure way to store and
share physician verifiable
credentials

![img-6.jpeg](img-6.jpeg)

**$7.6B ANNUAL COST**
**PHYSICIAN**
**DISEMPOWERMENT**

Physicians are becoming more
disempowered and burning out
faster than ever

![img-7.jpeg](img-7.jpeg)

**PHYSICIAN SHORTAGE**
**PROBLEM**
**BY 2030: 120,000**

The problem is driving physicians
away from the medical field -
creating a shortage

Footnote:

Liselotte Dyrbye-Karim Awad-Lynne Fiscus-Christine Sinsky-Tait Shanafelt - Annals Of Internal Medicine - 2019

# THE HPEC DIGITAL PASSPORT

Complete control and ownership of the independent physicians destiny

![img-8.jpeg](img-8.jpeg)

# THE TIME IS NOW

Self-sovereign digital identities (SSI's) give physicians complete ownership of their right to work

| NO MARKET LEADER | NEW TECHNOLOGY | NEED FOR CHANGE | REGULATION & COMPLIANCE |
| --- | --- | --- | --- |
| HPEC First Mover Advantage | Self Sovereign Identity Technology | Physician and Patient Community | Data and Privacy Acts in Support |

HPEC

# TARGET MARKET

![img-0.jpeg](img-0.jpeg)

- Complete professional autonomy
- Policy guidelines influenced by practicing physicians
- Confidential consults with patients
- Secure communication with colleagues

- Reduce administrative costs for all parties
- Organize physician workforce
- Mobilize physician talent
- Access to qualified pool of practicing physicians

- Restore trust in the doctor-patient relationship
- Secure patient information
- Price and cost transparency
- Access to the right physician, when needed

# MARKET OPPORTUNITY

Many opportunities: The first HPEC use case will address the credentialing market.

$1.3 Trillion

Government Spending on Healthcare

~ 10% goes to physician services

$5 Billion

Annual cost of credentialing

$349 Billion

Digital Health

$1.3 Trillion

Employer Funded Health Benefit Expenditure

~ 10% goes to physician services

$140 Million

Advertising on ZocDoc, a portion of the market

![img-1.jpeg](img-1.jpeg)

# COMPETITION

![img-2.jpeg](img-2.jpeg)

HPEC is the only decentralized identity, connectivity & communication solution - for physicians, by physicians

|  | Disruptive Tech Leader | Self Sovereign | Physician Controlled | Physician Owned | Physician Designed | Communication Governance |
| --- | --- | --- | --- | --- | --- | --- |
| HPEC | ● | ● | ● | ● | ● | ● |
| axuall | ● | ● |  |  |  |  |
| PROFESSIONAL CREDENTIALS EXCHANGE | ● |  |  |  |  |  |
| synophc Health Alliance | ● |  |  |  |  |  |
| BLOCKCERTS | ● |  |  |  |  |  |
| CAQH |  |  |  |  |  |  |

# THE PHYSICIAN NETWORK

![img-3.jpeg](img-3.jpeg)

Growth through aligned incentives

![img-4.jpeg](img-4.jpeg)

Physicians initially join the network, and upload their own credentials

50%

of all revenue generated is invested back into the community. That revenue can be spent on needed services through utilizing HPEC points. This incentives physicians to stay, participate and continue to grow the network

Physicians then invite their physician colleagues to validate their credentials

![img-5.jpeg](img-5.jpeg)

![img-6.jpeg](img-6.jpeg)

For every credential upload and validation physicians get **HPEC** points

![img-7.jpeg](img-7.jpeg)

Those points can then be exchanged for services that the HPEC network provides

# MONETIZATION MODEL

![img-8.jpeg](img-8.jpeg)

2% FEE ON ALL TRANSACTIONS

Patients & Payers

![img-9.jpeg](img-9.jpeg)

Services, Credentials, Data

Payment

HPEC points rewarded in proportion to revenue generated on the network

2%

transaction fee from payment

1%

Investors

![img-10.jpeg](img-10.jpeg)

Physicians

Angels | Family Offices | VCs

![img-11.jpeg](img-11.jpeg)

Physician

![img-12.jpeg](img-12.jpeg)

Community

1%

1/2 of the transaction fee is re-invested back into the physician community

Governance
Secure Communication
Advertising Services

Network

Peer to peer payment
Credentialing
Data analytics

![img-13.jpeg](img-13.jpeg)

# COMPANY MILESTONES

![img-14.jpeg](img-14.jpeg)

# TEAM

HPEC

Experienced and passionate team, advisors awaiting formal inclusion

![img-15.jpeg](img-15.jpeg)

**Leah Houston, MD**
Founder and CEO

**Paul Goodman, JD**
Chief Legal Counsel

**Yasmeen Drummond, MBA**
Strategy & Biz Dev

**Roman, Tsarovsky**
Chief Technology Lead

# INVESTORS

![img-16.jpeg](img-16.jpeg)

Additional investors + advisors awaiting formal inclusion

![img-17.jpeg](img-17.jpeg)

Molly Rutherford, MD

![img-18.jpeg](img-18.jpeg)

Heather Hammerstedt, MD

![img-19.jpeg](img-19.jpeg)

Alonzo Sexton, MD

![img-20.jpeg](img-20.jpeg)

Sharan Lohithaswa, MD

![img-21.jpeg](img-21.jpeg)

Armando Clift, MD

![img-22.jpeg](img-22.jpeg)

Myiesha Taylor, MD

![img-23.jpeg](img-23.jpeg)

Noshene Ranjbar, MD

![img-24.jpeg](img-24.jpeg)

Niran Al-Agba, MD

![img-25.jpeg](img-25.jpeg)

Paul DeChant, MD

![img-26.jpeg](img-26.jpeg)

Erik Salib, DO

![img-27.jpeg](img-27.jpeg)

Lucia Cheng, MD

![img-28.jpeg](img-28.jpeg)

Ean Bett, MD

![img-29.jpeg](img-29.jpeg)

Mehnaz Hyder, MD

![img-30.jpeg](img-30.jpeg)

Venu Julapalli, MD

![img-31.jpeg](img-31.jpeg)

Basia Jenkins, MD

![img-32.jpeg](img-32.jpeg)

Vinay Julapalli, MD

# INVESTMENT

![img-33.jpeg](img-33.jpeg)

SEED ROUND - SEEKING $2M

Reg D Up to $2M

Reg CF Up to $1M

![img-34.jpeg](img-34.jpeg)

LAUNCH + TIMELINE

April 2020 - October 2020

![img-35.jpeg](img-35.jpeg)

TERMS

$0.06 per share of common stock

Will share term sheet

HPEC

USES OF PROCEEDS

![img-36.jpeg](img-36.jpeg)

V1

- Complete product development
- Working capital

![img-37.jpeg](img-37.jpeg)

Community Buildout

- Physician on boarding
- Network growth

![img-38.jpeg](img-38.jpeg)

![img-39.jpeg](img-39.jpeg)

FOR PHYSICIANS | BY PHYSICIANS

CONTACT
Leah Houston, MD
leah@hpec.io
212-518-6685

**Attachment 3:** `993.pdf`

# HPEC Inc

## Balance Sheet

As of December 31, 2021

|  | Dec 31, 21 |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Checking/Savings |  |
| Chase - 5768 | 145,277.59 |
| Total Checking/Savings | 145,277.59 |
| Other Current Assets |  |
| Due from Paychex | 5,121.23 |
| Loan Officer - L. Houston | 5,750.00 |
| Total Other Current Ass | 10,871.23 |
| Total Current Assets | 156,148.82 |
| Fixed Assets |  |
| Computer | 3,928.37 |
| Computer - AD | -3,928.37 |
| Startup & Organizationa | 22,513.88 |
| Startup & Organizationa | -3,752.32 |
| Total Fixed Assets | 18,761.56 |
| TOTAL ASSETS | 174,910.38 |
| LIABILITIES & EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Credit Cards |  |
| CC - 5195 | 4,646.63 |
| Total Credit Cards | 4,646.63 |
| Total Current Liabilities | 4,646.63 |
| Total Liabilities | 4,646.63 |
| Equity |  |
| Capital Stock | 633,773.09 |
| Retained Earnings | -158,018.55 |
| Net Income | -305,490.79 |
| Total Equity | 170,263.75 |
| TOTAL LIABILITIES & EQUITY | 174,910.38 |

Page 1

# **HPEC Inc**  
 **Profit & Loss**  
 **January through December 2021**

|  | TOTAL |
| --- | --- |
| Income |  |
| Event Income | 2,727.11 |
| Total Income | 2,727.11 |
| Expense |  |
| Advertising and Promotion | 28.16 |
| Bank Service Charges | 125.86 |
| Consulting | 42,600.02 |
| Depreciation Expense | 5,429.30 |
| Donations | 1,260.99 |
| Dues and Subscriptions | 1,010.08 |
| Event Expense | 134.25 |
| Fines & Penalties | 72.00 |
| Interest Expense | 0.01 |
| Internet Expense | 1,637.00 |
| Marketing Expense | 5,250.00 |
| Meals and Entertainment | 4,640.22 |
| Miscellaneous Expenses | 55,373.02 |
| Networking Expense | 483.61 |
| Office Expense | 5,107.11 |
| Outside Labor | 4,048.14 |
| Payroll Exchange | 0.00 |
| Payroll Service Fees | 436.00 |
| Postage & Delivery | 325.79 |
| Professional Fees | 3,600.00 |
| Repairs and Maintenance | 387.09 |
| Salaries - Officer | 66,000.00 |
| Software Expense | 12,885.00 |
| Staffing | 559.97 |
| Taxes |  |
| Florida | 305.55 |
| Payroll Taxes | 17,235.68 |
| Taxes - Other | 450.00 |
| Total Taxes | 17,991.23 |
| Technology Design | 7,185.00 |
| Technology Development | 43,200.34 |
| Technology Testing | 1,000.00 |
| Telephone Expense | 1,722.89 |
| Travel Expense | 12,482.22 |
| Uniforms | 5,950.41 |
| Vehicle Expense | 164.90 |
| Virtual Assistant | 6,279.40 |
| Website Expenses | 847.89 |
| Total Expense | 308,217.90 |
| Net Income | -305,490.79 |

Page 1

4:21 PM

11/09/22

Accrual Basis

HPEC Inc

Balance Sheet

As of December 31, 2021

|  | Dec 31, 21 |
| --- | --- |
| ASSETS |  |
| Current Assets |  |
| Checking/Savings |  |
| Chase - 5768 | 145,277.59 |
| Total Checking/Savings | 145,277.59 |
| Other Current Assets |  |
| Due from Paychex | 5,121.23 |
| Loan Officer - L. Houston | 5,750.00 |
| Total Other Current Assets | 10,871.23 |
| Total Current Assets | 156,148.82 |
| Fixed Assets |  |
| Computer | 3,928.37 |
| Computer - AD | -3,928.37 |
| Startup & Organizational | 22,513.88 |
| Startup & Organizational - A/D | -3,752.32 |
| Total Fixed Assets | 18,761.56 |
| TOTAL ASSETS | 174,910.38 |
| LIABILITIES & EQUITY |  |
| Liabilities |  |
| Current Liabilities |  |
| Credit Cards |  |
| CC - 5195 | 4,646.63 |
| Total Credit Cards | 4,646.63 |
| Total Current Liabilities | 4,646.63 |
| Total Liabilities | 4,646.63 |
| Equity |  |
| Capital Stock | 633,773.09 |
| Retained Earnings | -158,018.55 |
| Net Income | -305,490.79 |
| Total Equity | 170,263.75 |
| TOTAL LIABILITIES & EQUITY | 174,910.38 |

Page 1

# **HPEC Inc**  
 **Profit & Loss**  
 **January through December 2020**

|  | TOTAL |
| --- | --- |
| Income | 0.00 |
| Expense |  |
| Advertising and Promotion | 14,465.07 |
| Bank Service Charges | 0.00 |
| Business Development | 3,308.00 |
| Business Licenses and Permits | 70.00 |
| Consulting | 21,640.00 |
| Depreciation Expense | 1,500.93 |
| Donations | 329.00 |
| Dues and Subscriptions | 2,350.65 |
| Interest Expense | 98.58 |
| Internet Expense | 2,349.00 |
| Marketing Expense | 46,076.95 |
| Meals and Entertainment | 516.53 |
| Office Expense | 920.79 |
| Office Supplies | 29.56 |
| Outside Labor | 22,385.00 |
| Payroll Exchange | 0.00 |
| Payroll Service Fees | 0.00 |
| Postage & Delivery | 97.51 |
| Professional Fees | 3,300.00 |
| Salaries - Officer | 12,000.00 |
| Software Expense | 4,200.77 |
| Staffing | 2,446.40 |
| Taxes |  |
| Payroll Taxes | 1,103.10 |
| Taxes - Other | 699.00 |
| Total Taxes | 1,802.10 |
| Telephone Expense | 2,622.51 |
| Travel Expense | 1,495.43 |
| Virtual Assistant | 11,971.04 |
| Website Expenses | 1,292.27 |
| Total Expense | 157,268.09 |
| Net Income | -157,268.09 |

Page 1

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** HPEC, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 06-07-2019

**Physical Address:** 13727 SW 152nd Street #671, Miami, FL, 33177

**Issuer Website:** www.hpec.com

**Is there a Co-Issuer?:** No

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1.00

**Total Assets (Most Recent Fiscal Year):** $174,910.00

**Total Assets (Prior Fiscal Year):** $412,672.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $145,277.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $387,289.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $0.00

**Net Income (Prior Fiscal Year):** $0.00

### Signatures

**Issuer:** HPEC, Inc.

**Signature:** /s/ Leah Houston

**Title:** CEO

---

**Signature:** /s/ Leah Houston

**Title:** CEO

**Date:** 03-10-2023