Good Morning HHSE Friends & Followers - First of all, apologies are extended to all shareholders that have emailed Parkinson or Shefte the past few days and not gotten responses. As stated previously, the volume of new release orders - and the operational tasks in getting these manufactured, shipped and delivered on very specific time-frames - has been all consuming. Responding to calls and emails has been challenging.
So much of the Company's business plan for 2015 relies upon cash flow from these new orders, that fulfillment of them has taken priority. We will be back to quicker responses shortly.
Meanwhile, we have been asked to respond to a variety of questions / issues. While longer, more detailed responses are merited (and will be provided), for now, we can provide the following, brief summaries:
1). STATUS OF JSJ SHARES (recent issue that surprised HHSE management) - A resolution of this dispute is being discussed, still not finalized as of this morning.
2). CREDIT LINES - The credit facilities that collectively will finance the Company's new release activities (including theatrical activities) appear on track and solid. Individual details will be released upon approval of each of the three separate parties involved in three separate transactions that comprise the Company's overall needs as specified in the Form 10 filing.
3). FORM 10 DELAYS - Anything standing in the way of this release? Nothing that is not being already addressed, re: Credit Lines. The Form 10 will be released based on the 2012 and 2013 audits. The 2014 audit is not due until May 1st so it does not impact the Form 10 publication.
4). DEBT CONVERSIONS - There have been some predictions among critics that the Company will be pursuing a variety of debt conversions / dilutions. We would remind our shareholders that under the corporate by-laws, the Board of Directors has the authority to REDUCE the total Authorized Share Count (and this was pursued under a "suspension" of shares a few years back). But to INCREASE the statutory A/S requires the approval of a majority of shareholders. We do not feel that the majority of shareholders are in favor of authorizing more than the current 700-mm A/S count. Accordingly, management is statutorily restricted from exceeding the current share count until such time - if ever - that the majority of shareholders votes to approve such an action.
5). SHAREHOLDER'S MEETING - Management is planning to hold the annual shareholder's meeting, rather than issue a written report in lieu of such a meeting. At this time, it is likely to be held in either Los Angeles or Fayetteville, Arkansas - at the end of February. Per corporate by-laws, a formal announcement of date and location of the annual meeting of shareholders is required to be published at least 30-days prior to the meeting.
6). THEATRICAL ITEMS - Yes, HHSE is the distributor for "DARK AWAKENING" - the profoundly chilling new thriller from the executive producer of "THE RING" and the acclaimed visual effects master behind "X-MEN", "STAR TREK" and "OUIJA." Precise release dates and screen counts are being determined in conjunction with the key exhibitors. At present, the Company is looking at an APRIL theatrical date - and an AUGUST home video / VOD date. As the precise dates become locked with the key theatrical chains, this will be announced.
7). VODWIZ - While the management remains philosophically committed to the VODwiz roll-out to consumers, to be clear, this new venture has taken a backseat to the current priorities (shipments, credit lines, form 10 filing and new theatricals). As cash flow for the Company is improving (from the new release activities!), management intends to beef-up some staff to specifically handle the VODwiz consumer roll-out (and the operational steps required to upload all of the titles under contract for the service). Management is limited by the realities of a 24-hour day and the need to prioritize some projects over others - based on time sensitivities.
VIEW THE TRAILER AT: https://www.youtube.com/watch?v=vwPg2R8jNGU