Q3 Snapshot for HHSE

Greetings HHSE Friends & Followers - Watch for the full Q3 filings to be posted onto both the OTC Markets site, as well as the S.E.C. Edgar Site.  Meanwhile, in response to a pending press announcement, here is a snapshot of the Income Statement, Sales Detail and G&A for the 3-month period ending Sept. 30, 2015.  The google-sponsored Blog Space does not "like" PDF files, so the text versions have irregular columns, and the JPEG versions are difficult to read.  However, the entire reports will be legible and clear on both the OTC Markets site and the Edgar site when posted with the entire report.

SUMMARY OF THE THREE-MONTH PERIOD ENDING SEPT. 30, 2015

GENERAL AND ADMINISTRATIVE EXPENSES
	3-Months		3-Months		Category
	Ending		Ending		Change In
CATEGORY	6/30/2015		9/30/2015		Period
Auto	$                      -		$                      -		$                      -
Bank Charges	$                   850		$               2,200		$               1,350
Consulting	$                      -		$                      -		$                      -
Employees and Labor	$             63,365		$             79,647		$             16,282
Entertainment	$                      -		$                      -		$                      -
Equipment	$               3,673		$               4,188		$                   515
Fees	$                      -		$                      -		$                      -
Insurance	$                   453		$                   647		$                   194
Labor	$                   650		$               3,213		$               2,563
Legal and Accounting	$               3,000		$             16,400		$             13,400
Miscellaneous	$               1,818		$             11,564		$               9,746
Office	$               3,202		$             17,845		$             14,643
Rent	$             10,050		$             13,050		$               3,000
Taxes	$               7,893		$             24,887		$             16,994
Telephone	$               3,254		$               3,623		$                   369
Travel	$               4,290		$               8,500		$               4,210
Utilities	$               1,388		$               1,881		$                   493
TOTAL OF GENERAL AND
ADMINISTRATIVE EXPENSES	$          103,886		$          187,645		$             83,759
Footnotes:  Officer Salaries for Parkinson and Shefte (the majority of which are deferred income)
appear on the income statement as accrued (but deferred) payables, as well as on the Company's
balance sheets.

 SALES SNAPSHOT: Q3 - (Period Ending Sept. 30, 2015)

 Consumer Products (DVDs, BD's, Books) $721,159.38 

 25% Returns Reserve on Packaged Goods Sales $(179,905.60)

 Television / V.O.D. / S.V.O.D. $516,065.00 

 VODWIZ Mastering & Upload Fees $43,750.00 

 International Licenses $-   

 Major Studio Distribution Ventures $-   

 Theatrical Releasing Revenues & Fees $1,517,800.26 

  

$2,618,869.04 

			Q3 2014			Q3 2015			Change
REVENUES  (see media detail report)		$	407,605		$	2,798,774		$	2,391,169
	Reserve for Potential Returns (WM, BB, Target)		-			(179,905)			(179,905)
	ADJUSTED REVENUES FOR QUARTER		407,605			2,618,869			2,211,264
COST OF SALES
	Commissions		170			-
	Sales and Marketing		13,900			4,250			(9,650)
	Video Manufacturing		12,271			37,488			25,217
	Film & Book Royalties		33,054		*	1,780,875		*	1,747,821
	Freight		1,868			29,420			27,552
	Other Expenses		49,313			22,426			(26,887)
TOTAL COST OF SALES			110,576			1,874,459			1,763,883
GROSS PROFIT			297,029			744,410			447,381
GENERAL AND ADMINISTRATIVE EXP.			81,756			187,645			105,889
INCOME FROM OPERATIONS			215,273			556,765			341,492
OTHER INCOME (EXPENSE)			-			-			-
INCOME BEFORE TAXES			215,273			556,765			341,492
PROVISION FOR INCOME TAXES		**	75,346		**	194,868			119,522
NET INCOME		$	139,927		$	361,897		$	221,970
RETAINED EARNINGS (Beginning of Period)					$	2,495,703
RETAINED EARNINGS (End of Period)					$	2,857,600
* Company is expensing the accrued royalties or third party participations as a cost of sales.
** Company is reserving a total of 35% off pretax earnings as the cumulative, accrued tax liability for both
Federal and applicable State Income Taxes