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Thursday, 08/04/2011 2:53:52 PM

Thursday, August 04, 2011 2:53:52 PM

Post# of 54312
FYI to the board; Through all of the conversations about what HNSS is or isn't doing and all the pleads for more transparency, I do truly believe Mr. Black is working to build and grow HNSS. We may not always have the whole story and we may have to show some patience (i.e. don't look for a quick flip here) but I think Black is doing his best to create a valuable investment for us longs. See Black's response below to several questions a group of investors asked him over the weekend.

While no specific answers are given (for obvious reasons) I do feel the tone of the email lends to Black's character in that he is working his butt off FOR us. Curious to hear everyone's thoughts.

Thank you for your interest and support. As I have pointed out to you previously, we cannot have a running discussion, nor can we provide information privately to a few investors that is not provided to all investors, and as a result, we cannot join your group.
However, we can help to provide a better understanding of the relationship between the Company’s management and its shareholders. Many companies and investors choose the OTC (formerly Pink Sheets) for a variety of reasons. All other exchanges, and even the OTC Bulletin Board only list reporting companies. Maintaining these listings is costly and time-consuming and require audits and filings, work that has become even more onerous with recent regulations. As a result, many smaller companies have opted for the OTC (which Healthnostics did), where management is able to focus its time and resources on productive endeavors. Meanwhile, it should go without saying that OTC investors enticed by the risk-reward ratio inherent in the OTC should understand that information will be more limited than that provided by companies listed on other exchanges.
Conversely, in this age of on-line social media, and the proliferation of message boards and forums, interested parties put out a great deal of information, much, if not most of which is inaccurate. Some of this is prompted by forces that seek to depress the stock price; some of it by well-meaning people who are caught up in the web of misinformation; some of it by unsophisticated investors who misinterpret rules and make false assumptions. Some of these people end up discouraging other investors, hurting themselves and the company in the process. They question management's motives and integrity, an irrational exercise because, unlike anonymous Internet voices, management is highly visible and, therefore, answerable to stockholders and regulators alike. It is not a venue of choice for those who wish to avoid scrutiny and accountability. This holds true not just for us, but for many other small public companies and their respective management teams as well.
Investors must understand that business interests come first. While management seeks to keep investors informed, it is serving investors best by taking actions that increase the company's value. This often means that negotiations and ongoing sales and marketing pursuits all fall in the realm of proprietary information, the release of which would adversely impact the company and its stockholders.
We are proud to have navigated the company through the difficult economy of the past few years. This has placed the company in a position to capitalize upon current opportunities. Toward that end, shares outstanding will increase and decrease as companies, divisions, and R&D are bought or sold. Management strives to ensure that stock issuances benefit the company and are accretive, not dilutive.



And...

Yes, you may publish my response. Also, you may want to post the official FINRA site:
http://regsho.finra.org/regsho-June.html
This site provides the actual short information. Select a month at the top, then go to ORF and select a day. Go to HNSS and it will show the short volume and total volume for that day. It is quite revealing.



HNSS