Good morning HHSE friends & shareholders - as promised in a recent blog, here are further details to shareholder questions that were not included in the current Q3 financials and disclosures.
LENNON BERMUDA - After receiving a "Black Friday" placement acknowledgment from the wholesaler that services Walmart for Hannover House, we were subsequently told that the item was moved to Dec. 17th. Apparently, the buyer was unaware that the audio tracks are John Lennon songs, performed by artists other than John Lennon himself (as is the case with pretty much all tribute albums). Rather than lose the placement (or risk being buried under a flood of Black Friday competitive items), the option of a standard "new release" placement in mid-December makes a lot of sense. Also, instead of only having a four-day placement (as is often the case with Black Friday specialty items), this will give the CD a regular shelf spot and shelf life. Changing the release date as such does not change the reporting period for these revenues (it's all Q4 results). For those who have wondered, the Lennon Bermuda CD has been presented to Starbucks and is "under consideration" for Q1. That's all we know about their interest at this time.
THE VERDICT: JUSTICE FOR JOHN F. KENNEDY, JUSTICE FOR AMERICA - Some shareholders have expressed concern about the release date timing of Barr McClellan's sequel to his 2003 best-seller, "Blood, Money & Power: How LBJ Killed JFK." The new book builds a solid case from his original thesis, as he has incorporated substantial new evidence that has come to light during the past 10 years. About a month ago, McClellan contacted Hannover House with the urgent request to "delay" the book's release. His rationale' was that several "other" books had been released in anticipation of the 50th anniversary of the Kennedy assassination, and that he felt like he needed to incorporate by reference (or rebut) any relevant data or claims that these other books might contain. His statement to Fred Shefte and Eric Parkinson was: "I'd rather have the most complete and the most accurate book... than be the first to market." We thought about this and decided that Barr was right. His 2003 book continues to be the Company's top selling book title... and the relevance of the information contained in "THE VERDICT" does not turn into a pumpkin at midnight, Nov. 22.
Accordingly, we have elected on a split release date: the ebook will be published ASAP (possibly this week) on Kindle and Nook; the print-edition book will be published in December (likely on Dec. 17). It's important to note that while the print edition book will be "available" in December, there's also serious shelf-space issues at Barnes & Noble, Books-A-Million, WH Smith and others during the holidays. Therefore, we would not expect the print-edition to be widely and easily found at retail until January. That's okay with us: the e-book editions are fast cash flow, and low outflow (there's no printing and shipping costs).
AUDIT UPDATE - We're pleased to announce two positive developments relating to the Company's audit projects. First of all, we have engaged an outside firm that specializes in helping OTC Market companies assemble their audit report materials. Next, we have received ten responses to our ad for an executive level bookkeeper / controller level accountant (yes, raising the salary by $10,000 has made a world of difference in the caliber of respondents!). A decision will likely be made this week on the full-time accounting position. Both developments should help us meet our goal. And what IS that goal? The goal is to have Hogan Taylor render their audit letter prior to February 15, 2014. And the sooner the better. However, as some have observed, if we do NOT "beat" the Feb. 15 date, then the applicable years changes (from 2011 and 2012... to 2012 and 2013). The rule is that the Form 10 filing must be accompanied by audits of the "two most recent reporting years".
DECEMBER SHIPMENTS FOR JANUARY STREET DATES - Yes, we'll get a Holiday Boost on our Q4 revenues, thanks to placements of "AMITYVILLE ASYLUM" and "BLUES FOR WILLADEAN" into Walmart and Redbox. These items will ship and invoice in Q4, and thus appear on the year-end revenue results. Key titles for Q1 include the home video / VOD releases of "SPRING BREAK MURDERS", "THE POSSESSION WITHIN", "FRANKENSTEIN 2014", "REACH", "SUNSHINE" and three others pending initial announcement.
Onward & Upward....!