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Friday, June 15, 2018

Friday, June 15 - HHSE Blog Report

Greetings HHSE Friends & Followers - Most of the "post-Cannes" follow-up work has been completed (sales, new acquisitions and Myflix launch partners);  accordingly, it's a good time for us to highlight SOME of the release items set for the upcoming month.  Not listed below are the NEW titles recently acquired (Cannes and Post-Cannes) - including two Q4 theatrical titles.  However, as some of these titles have been long-delayed from home video release, we wanted to provide the update as to the imminent status for these items.

There is still a reasonably robust "physical" market (DVD and BluRay) for the right products (and usually for theatrical-caliber titles).  Revenues from Video-On-Demand streaming (including transactional, subscription and electronic sell-thru) are beginning to surpass physical DVD and BluRay revenues.  The release slate below for physical video dates & forecasts does not include V.O.D. revenues sources, television or international for these particular titles.

Customarily, some of these titles would have been released to home video quite some time ago, most notably:  BONOBOS, SLEEPER CELL, RIDE UNITED, AMERICA UNITED and DINOSAURS OF THE JURASSIC. Due first to the move over from Anderson / Alchemy to Cinedigm as principal two-step wholesaler... then the protracted, "slow-dance" of a proposed merger with Crimson Forest, both of which contributed to strategic delays in these home video releases.  Now, with distribution channels firmly in place, the HHSE corporate status no longer uncertain, and significant new theatrical titles in the upcoming pipeline, HHSE / Medallion are finally empowered to begin harvesting the significant revenue streams to be enjoyed from the release of these titles via physical, digital, television and international markets.

MORE TO FOLLOW...

HOME VIDEO (2018) GROSS FORECASTS:  $2,900,000
THEATRICAL (2018) GROSS FORECASTS:  $435,000
STREAMING GROSS FORECASTS:  $780,000
TELEVISION GROSS FORECASTS:  $245,000
INTERNATIONAL GROSS FORECASTS:  $540,000
MYFLIX NET SHARE?  REVENUE FORECASTS T.B.D.

Thursday, June 14, 2018

Securities Attorney Opinion: It is legal for HHSE officers to BUY shares on open market

Greetings HHSE Friends & Followers - A combination of factors have created an environment within which the stock pricing for HHSE has been temporarily and artificially lowered through manipulative trading activities. 

Due to the current, absurdly low stock price, HHSE managers reached out this morning to a securities attorney to seek an opinion as to whether it was LEGAL and APPROPRIATE for Parkinson and / or Shefte to PURCHASE HHSE shares off the open market in order to achieve a substantial R.O.I. benefit for their trusts.

Here's a summary of the securities attorney's opinion:

1).  Yes, public company officers are allowed to buy shares on the open market, but these shares immediately become "restricted" from regular resale, as with all other officer owned or controlled Rule 144 shares.

2).  Yes, but if a public company officer buys any shares, these acquisitions or dispositions must be disclosed in a Form 4 filing with the S.E.C. "...before the end of the second business day following the day on which a transaction resulting in a change in beneficial ownership has been executed."

3).  Yes, public company officers can profit from buying shares during artificially manipulated pricing dips, but not if the officers have any involvement with the traders or brokers that have created the artificially low pricing.

4).  Yes, public company officers CAN act on their superior knowledge of a company's operations and activities and make wise investment decisions... PROVIDED... that all of the key elements for motivating an officer's direct purchase of shares are based on publicly disclosed information... in order that no non-affiliate shareholders are impeded from having the same, superior and accurate information about the company.

ACCORDINGLY, and in order to be fully transparent in providing ALL SHAREHOLDERS with the same level of superior, accurate and updated information on all activities for HHSE that is enjoyed by the managers, please note the following key updates:

1).  FORM 10 REGISTRATION activities are well into motion.  HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.

2).  MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE.  The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration."  HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.

3).  ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances).  HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.

4).  ELIMINATION OF NUISANCE LEGAL MATTERS - The evolution and maturation of the home video business (away from Physical unit sales to streaming), has resulted in some dead-on-arrival DVD releases for HHSE over the past few years... and this has ended up in "nuisance" lawsuits from small producers that have ignored the contractual structure and disputed the applicability of releasing costs.  One recent case, AMITYVILLE ASYLUM, was found in HHSE's favor, and another recent case (XVIII ENTERTAINMENT - four titles), was dismissed.  There are other cases in motion, including Origin Films and Crimson Forest, that HHSE managers and outside counsel are very confident will also be easily won or promptly resolved with no adverse affect to HHSE.  Accordingly, the elimination of these legal matters will also improve the optics and credibility for HHSE,

5).  WIDESPREAD SUPPLIER SUPPORT FOR MYFLIX - Like the opening day for the Oklahoma Land Rush, HHSE is at the starting line with our wagons loaded for a major digital stake into MYFLIX.  The venture already has over 30 significant suppliers, including titles from three major studios, and potentially could be the # 2 streaming site in North America (subordinate only to Amazon.com) in terms of total quantity of features, television episodics, video games and educational programming.  Titles that are currently "only" selling 5,000 DVDs suddenly become VERY PROFITABLE under the Myflix model, as there are no manufacturing or freight costs to dilute the revenue streams.  Titles generating 5,000 TVOD transactions at $1.99 each (about $10,000) doesn't sound like a big deal... until you realize that Myflix now has access to over 10,000 titles and episodics.  The potential revenues to be generated from this new streaming operation dwarfs even the best years ever achieved from the HHSE core activities with physical goods distribution.

6).  TIMING IS IMMINENT:  During the next few weeks, months and all occurring during this current fiscal year, HHSE believes that:  a).  Registration will occur; b).  Myflix will be launched; c).  New "whale" investor funds will begin accumulating shares; d).  The new key-titles distribution pact through SONY and ongoing title releases through CINEDIGM will begin to monetize; e).  The IRS Tax issue -  the principal for which is now fully paid - will result in a formal "release of levy" filing;  f).  Production funding for two "event" level films will be finalized; and, g). HHSE's general credibility and financial position will dramatically increase.

It is for THESE KEY REASONS that HHSE managers have sought an opinion as to the legality and appopriateness for officers, directors and managers to buy HHSE shares off the open market at this time.

HHSE recognizes that there are currently some "bad optics" that the "bad-actor" traders have used to attempt to create fear and uncertainty. We feel the relentless (and false) criticisms against HHSE on stock chat boards by these trading manipulators has contributed to what is currently a "Black Friday" level of buying opportunities for HHSE shares. The motivation of these "bad actors" is to control the stock pricing and try to keep it trading at under $.015 for maximum swing on the "rinse-and-repeat" boxing strategy.  But in doing so, they have taken our stock - which has been predicted by substantial investment funds to be worth ten-cents per share or more by year's end - and created a tremendous buying opportunity.

HHSE managers are seriously contemplating the prospect of buying shares at these current pricing levels, and wish to note to all legitimate shareholders that all of the information otherwise considered "inside" or "beneficial" towards supporting such an opinion, has been reiterated above. HHSE managers have NOT stalled on
the filing of the Form 10, or the resolution of legal matters, in order to fuel this unusual stock pricing opportunity.  If HHSE managers proceed with purchases of HHSE shares off the open market at these current levels, the disclosure requirements of a Form 4 statement will be properly filed with the S.E.C. in a timely manner.







Wednesday, June 13, 2018

Blog Update for HHSE activities

Greetings HHSE Friends & Followers - Management has been very focused on the build-up and launch of Myflix, plus post-Cannes follow-ups, ongoing theatrical releas activities and the build up of an impressive Q3 and Q4 video release slate through SONY and CINEDIGM (which will transform our physical distribution structure and revenues).  However, there are corporate and legal housekeeping issues of concern or interest to Shareholders.  Accordingly, we are drafting a rather voluminous BLOG to address a variety of issues that Shareholders have presented.  Specifically:

1).  Status of Q1 filings - we have elected to proceed and file the Q1's despite our frustrating inability to receive a detailed ledger from the IRS of funds received against our prior garnishments (which  information - or lack of - directly impact the accuracy of our balance sheet listing of Accounts Receivable).  We have received verification from the IRS that our principal balance of taxes are fully paid - but not a ledger of the starting balance amount and which payments from HHSE and customers were applied to wipe out this principal balance.  Accordingly, the Q1 filing will have this item addressed on a balance sheet footnote.  HHSE is seeking to obtain IRS verification of three payments not currently showing in their system as credits for HHSE, specifically, one Netflix payment, one cashier's check paid in 2015 and an overpayment in 2015 - collectively totaling approximately $82,000 - which would put HHSE well into the "over-payment" category.

2).  Resolution of Nuisance Legal Matters - HHSE has already prevailed in one nuisance producer lawsuit, and is now facing three nearly identical claims which we feel are basic math matters.  We believe that our filings in the next few days will move to oppose or otherwise dismiss inaccurate claims in the UPTONE matter ("Union Bound"), the ORIGIN FILMS matter ("Brian Jaynes films" from 2012) and the Crimson Forest matter (for which HHSE has not yet been served, but we plan to file a response based on the court filing on line - NOTE:  HHSE has just been informed that a process server left a copy of the lawsuit with an office temp while the principals were out of the country at the Cannes Festival - which action does NOT constitute proper, legal service!). The Producer statements issued by HHSE to our various suppliers lists the Gross Shipments, actual net unit sales revenues, less HHSE distribution fee, less HHSE costs, with the remaining balances going to the producer/licensor.  A prior case (AMITYVILLE) attempted to circumvent the structure of the agreements and ignore these contractually agreed costs and product returns.  HHSE ultimately prevailed in that case.  We feel the same contract structure and math will apply to these other current matters - and that these nuisance lawsuits from small titles will no longer be an issue in the future under the new HHSE plan (which concentrates on higher-profile, better selling titles, as well as digital streaming over physical video units as the preferred revenue model).  With our proper and timely responsive filings, none of the current legal matters poses a material threat to the business operations of HHSE or will impede our Registration filing.  It should be noted that once HHSE is fully registered and fully reporting, that the company will be required to make more frequent and detailed disclosure filings for future legal matters if they meet the qualification of having a material impact to the business.  At present, as an OTC Pinksheets equity, all disclosures are fully voluntary or to the standards as required by the OTC Markets listing service.

3).  Status of Form 10-Registration - With Q1 accounts receivable balance to be filed under a footnote as described above, we can complete the audit document package for the PCAOB auditors and submit to them on Monday.  We do not see the auditor as requiring a lengthy process due to the organization of the materials to be submitted.

4).   Prognostications? - The elimination of nuisance lawsuits, the elimination of significant balance sheet debts, and the filing of a registration statement should have a positive impact on the company's credibility, profile and investor confidence.  Add to this mix the launch of what could be the #2 streaming site in North America (in terms of total quantities of programming available), the Myflix venture could be the rocket that propels HHSE to far greater heights than the old model of film distribution even anticipated.  Clearly, the old-model of distributing low-budget films to video is no longer a solid basis for HHSE or any distributor.  Retailers are still willing to put up 25,000 copies of micro-budget films onto their shelves... but with multiple other delivery means and entertainment options, consumers are no longer supporting the purchase of such secondary home video releases (and a majority of shipped units end up as "returns").  The solution?  Only handle higher profile theatrical titles... move physical distribution to outside wholesale partners... and concentrate on the low-cost, high-margin delivery medium accessible through the Myflix streaming venture... a three-pronged strategy for success!

MORE TO FOLLOW>>>








Tuesday, June 5, 2018

Ongoing Sales Sparks Longer Placement at Barnes & Noble Stores

The re-release of QUIETUS into a new, quality trade-back edition has been a sales success - and as a result, the placement into Barnes & Noble stores has been extended through the summer. In support of this continued retail placement, QUIETUS will be featured in the summer edition of STRAND MAGAZINE (on sale at all USA Barnes and Noble stores).

HHSE is extending an offer to TEN (10) shareholders or readers of this blog, to receive a free copy of QUIETUS, personalized and signed by author VIVIAN SCHILLING.  First come, first served!  Just email your name and mailing address to: 

Melissa Welch:  HannoverPR@aol.com


Monday, June 4, 2018

Some Cannes 2018 Highlights Photos...

Actress / Producer LAUREN SWEETSER ("The Riot Act") across from the Palais Steps.

JON BRYANT ("The Guardian") speaks with Riot Act Director DEVON PARKS and star LAUREN SWEETSER across from the Palais steps. 

Business of Film Publisher ELSPETH TAVARES (center) attended the Cannes Market Screening of "DAISY WINTERS" and spoke afterwards with producer JANE BADLER-HAINS (left) and title star STERLING JERINS (right). 

ALANA JERINS (far left), is the mother of two rising stars in the Jerin's family, 20-year-old daughter RUBY JERINS ("Shutter Island", "Nurse Jackie") and "Daisy Winters" title star, 13-year-old STERLING JERINS (center) - who were joined by two family friends at the Palais Screening of "DAISY WINTERS."

Jerins sisters, RUBY and STERLING.

Producer JANE BADLER-HAINS and star STERLING JERINS are joined by writer / producer / director VIVIAN SCHILLING at the Majestic Hotel, after the "Daisy Winters" Palais Screening. 

Video Industry Veteran ADRIANA SHAW (Today's Home Entertainment, and now CEO of the streaming site HERFLIX.com), cozies up to HHSE C.E.O. Eric Parkinson at the private dinner reception held at the Majestic Hotel after the "Daisy Winters" Palais screening.

JON BRYANT ("The Guardian") interviews Jane and Sterling about DAISY WINTERS.

JON BRYANT also interviewed THE RIOT ACT Principals for a segment on BBC Worldwide.

HHSE / MYFLIX Execs ERIC PARKINSON and FRED SHEFTE grabbed the moment when seeing MYFLIX as the featured COVER of "Business of Film."  The two were also interviewed by JON BRYANT for a video feature for BBC Worldwide - to run the week of initial launch of the site.

London-based Videographer OLIVER ROBBINS scoped out Cannes locations for "B-Roll" footage and atmosphere shots - to spice up the feature stories on MyFlix, Daisy Winters and Riot Act. 

HHSE enjoyed the access to the Hains' family's large yacht, berthed in the key marina position adjacent to the Palais/

The Cannes Marina slots are booked nine-months in advance, so the placement of the Hains boat was a tremendous coup for accessibility and visibility. 

Videographer Oliver Robbins grabs some "B-Roll" shots of Devon Parks and Lauren Sweetser ("The Riot Act") from the second level deck of the yacht. 

Oliver Robbins scopes out additional Cannes sites for the video features.

BBC Crew setting up for a live-shot from the park, adjacent to the Palais.

HHSE / MYFLIX C.E.O. Eric Parkinson (right) on the boat with "The Riot Act" Principals LAUREN SWEETSER and DEVON PARKS. 

Quick Recap of HHSE Corporate Updates

Greetings HHSE Friends & Followers - while the post-Cannes and pre-launch work on Myflix has been consuming a tremendous amount of staff time and attention, we wanted to update our partners on the ongoing status of other events and activities.

1).  AUDIT STATUS - Last Thursday we received back four pages of notes from the outside CPA firm that has been engaged to help us in preparing the PCAOB Audit format for our 2-years (and one quarter) of financials that are part of the Form 10 registration filing.  Comments received back include, among other items:

a).  INCOME TAXES - Restatement of provision for income taxes ("estimated accruals" to be reconciled against actual taxes and new tax rates... with balance returned to balance sheet at retained earnings).

b).  INCOME STATEMENT - Recognition of costs not previously expensed on all quarterly income statements, most notably ongoing interest expense and accrueed (but deferred) officer and staff salaries.

c).   EXPENSE TRACKING AND ALLOCATIONS - A review of the A.P. Chart of Accounts by project title, and a verification that grouped expenses (e.g., freight for multi-title shipments, ads for multi-title layouts, etc...) have been properly allocated and not replicated.

We have made a lot of progress over the weekend on these items, and plan to resubmit by Thursday.  That will result in about a three-to-five day review, after which time we should be able to submit the financials to our PCAOB auditors.

2).  MYFLIX UPDATE - We are working on a variety of pre-launch activities for Myflix, including website development, mastering and uploading of titles, long-lead P.R. campaigns, launch ads and videos and strategic positioning and goals. However, for competitive reasons, we cannot publicly disclose more than just these broad strokes at this time. The total inventory of available content from our current suppliers is over 10,000 programs (feature films and or television episodics).  About 800 of the initial 2,500 titles set for our July 27 launch date are already properly formatted / mastered for streaming access.  The others will require some degree of mastering attention, most commonly the addition of closed-captions or reformatting into streaming compatible media.

3).  TITLE STATUS - Here's a few quick notes on current titles and activities, listed ALPHABETICALLY:

AMERICA UNITED - This acclaimed concert video (and salute to the U.S. Troops), is still languishing in the pool of music rights clearances.  However, we have determined a "plan B" option which will allow us to edit out uncleared tracks and proceed with the title's release to dibital and home video in October (Janet Jackson, Snoop Dogg, Jessica Simpson, Clint Black, ZZ Top and many others). 

BLOOD FEAST - We are working with five theatre circuits to launch an "Alternative Cinema" night around BLOOD FEAST for mid-July... details to follow.

BONOBOS - The digital streaming and physical DVD / BluRay release are being handled through Sony for a September release.

DAISY WINTERS - Now set for an October home video through Sony, we are looking at the possibility of an "Encore Theatrical Release" through Regal Entertainment in late September, right before the home video date....

DEATH HOUSE - After opening the film in ten markets, we have analyzed the box office results and looked at the balance of expenditures required to fulfill the producer's target of opening the film into approximately 100 total theatres.  We have determined that this title does not fit into our current release strategy, and as such, we have withdrawn from further release activities and reverted the distribution rights back to the producers. We wish them the best of luck and success as they pursue their specific release goals.

DINOSAURS OF THE JURASSIC - With a new Jurassic Park movie opening later this month, we have assigned an editor to complete the updates and revisions to make this title suitable for mass merchant physical video and digital streaming.

GETTING GRACE - After 10-weeks in theatres, this title continues to earn theatrical playdates and visibility.  However, we are working diligently with the Sony team on the forthcoming digital and physical video release.  

LENNON REPORT, THE - Terrific movie about the incredible, true story of the E.R. activities the night of John Lennon's murder... looking at a November home video release.

RIDE UNITED - Working on DVD packaging that will satisfy comments from Walmart and Best Buy.

RIOT ACT, THE - The Cannes Screening went well, with buyers from U.K., Italy, France, Spain, India and a Sony Pictures International representative.  The USA Release is presently set for August 24 - however, we may find value in moving this to late September in order to mobilize the support of high school and college history departments and film studies groups.

SLEEPER CELL, THE ALGERIAN - Sony remains enthusiastic about this title, subject to the completion of strong DVD / BluRay packaging art.  We are working with the design team on new art submissions for later this week.



4).  I.R.S. LEVY - At this time, we have received verification that the principal taxes due (the "trust fund") is fully paid, and that the interest and penalties will be adjusted downward to match the actual tax liability (as opposed to the "estimated" liability under which the levies were issued last Fall).  The company is now utilizing an outside payroll service for all reporting requirements, so that we do not step into this issue in the future.

5).  LEGAL MATTERS - Updated disclosure of the status and resolution of all legal matters is included in the Q1 filing, which we anticipate filing later this week (this quarterly filing was delayed in order to incorporate comments from our outside CPA, which were received last Thursday).

6).  NEW PRODUCTIONS - Progress is occurring for the productions of TRUE FRESHMAN and LAST CHANCE FOR HONOR; alternative financing partners are being sought for the MOTHER GOOSE International Pre-sale portion previously contracted for by Odyssey Entertainment (they are now no longer operating). 

7).  PROGNOSTICATION? - HHSE Managers have been getting a lot of emails from shareholders and stock investors, based on the "buzz" that the MYFLIX venture is generating.  We are being asked to predict HOW HIGH WILL THE HHSE STOCK BE by year's end?

Obviously, the answer to such a question would require either a crystal ball, time-travel, great psychic ability or a general disregard for securities protocols which discourage public company officers from making stock price prognostications.  There is a widespread belief that the filing of a registration statement will ease many of the stock trading issues that have been obstacles for HHSE shareholders; there is also widespread enthusiasm that if a company such as RLJ ACORN.TV can launch a streaming site of indie products that is already grossing over $80-mm per year - that the Myflix site could be equally successful... maybe even more.

But as HHSE shareholders know, many factors can impact the market's pricing of shares... ranging from ridiculous rumors to actual screw-ups.  It is the opinion of HHSE management that the industry buzz around Myflix is providing us with a timely opportunity to be a pioneer in the digital streaming land-grab... and that this could mark a transformative moment for HHSE.  We will all know much more before the end of this year, as the impact of registration, Myflix launch, new distribution pacts and the resolution of legal issues will all have combined to create an exciting opportunity for the company.

Friday, June 1, 2018

THE LENNON REPORT - new release DVD / BluRay and Streaming title for HHSE / Medallion

Greetings HHSE Friends & Followers - We have been asked for more information on the upcoming video release of THE LENNON PROJECT.  This quality film tells the incredible, true story of a reporter who was in the hospital the night that John Lennon was shot and rushed into surgery (Dec. 8. 1980).  THE LENNON PROJECT has enjoyed some festival screenings and a limited theatrical engagement through Emerging Pictures.  DVD's and BluRays will be available from HHSE / Medallion during Q4 (exact date not yet set) - as well as through streaming portals and sites.

Meanwhile, check out the trailer for this impressive film:

LINK TO TRAILER:   https://www.youtube.com/watch?v=asH2xEfhxD8




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