Greetings HHSE Friends, Fans & Followers - we are excited about this coming week at Hannover House / Medallion, as our scope of activities covers all bases (from theatrical and video releases, to legal resolutions and corporate governance).
1). We will be making two official Q4 Theatrical Release announcements this week (wire service releases / trade & consumer).
2). We will be announcing our Q1 / 2017 Home Video / VOD line up this week.
3). The long-delayed Q2 Quarterly filing / results will be published this week. WE ARE INFORMED BY THE OTC MARKETS THAT OUR "CURRENT" REPORTING STATUS SHOULD BE EFFECTIVE BY E.O.D. WEDNESDAY! UGH - NOW WE'RE BEING TOLD "PROBABLY TOMORROW" (as of Wednesday afternoon).
4). Two major (and two minor) legal matters will be resolved or otherwise satisfied to the satisfaction of our legal team's strategies.
5). Final move-out of our warehouse facility (with new duties handled by Technicolor) will be completed in the next few days (but possibly, NOT by this coming Friday).
For those of you interested in details, more is outlined below. For the high-altitude thinkers, watch it unfold and see some interesting trade scrambling over the next few days.
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1). Theatrical Releases - "CHOSEN" the World War II Action-Thriller (based on a true story) starring Harvey Keitel will enjoy an awards-qualifying theatrical release, likely to be Nov. 11, depending on some confirmation from key theatre locations, as well as the timing of our media day and talent availabilities. "SPICES OF LIBERTY" - A Bollywood-style romantic comedy that has been compared to "My Big Fat Greek Wedding" may launch as soon as Oct. 28, depending upon pending locations in San Francisco, Boston and New York City (Manhattan proper) that we expect to lock-in by this Wednesday.
2). For the Home Video and Video-On-Demand media platforms, HHSE / MEDALLION will be announcing three new releases in January, four for February and six for March, 2017. One title (previously "teased") is LOST IN THE PACIFIC starring Superman Returns' BRANDON ROUTH - which, based on mass merchant retailer support, will clearly be the company's largest initial shipment for DVDs and BluRays ever for a single title new release (even exceeding the results that 20th Century Fox delivered for the company with "Twelve.").
3). The Q2 results will finally be published this week, and as stated previously, reflect the Company's new (and conservative) method for the recognition of DVD revenues from consignment retailers (specifically Walmart, Target and Best Buy). Previously, the Company was booking the gross value of products being sold, less a significant "hold back" for potential returns (based on the Company's overall historic returns rate X a factor of 2). With the slow death of the wholesaler Alchemy Entertainment, and their cut-off of payments to HHSE over a year ago, the Company was advised to book revenues for DVDs and BluRays on a "cash" basis, rather than accrual, as the prior accrual methodology relied on an estimated net amount, and required a subsequent adjustment to match ultimate net sales vs actual returns.
4). The "big" legal matters this week are TCA and JSJ. The TCA case is being heard on Wednesday, and the Company's counsel is expressing confidence in prevailing. The JSJ matter will be converted to a financial judgment this week, with a judicial declaration for the actual amount of the notes plus interest (as HHSE sought for the past year), as opposed to the goal of JSJ to obtain usurious "conversion" rate equity shares. The "small" legal issues are the DC Photographer case (in which our counsel is confident of prevailing on setting aside the judgment and adjudicating based on the law and absence of merit), and the AMITYVILLE producer dispute, which our attorneys expect to be resolved in HHSE's favor in the next few days.
5). After 8-years and $350,000 in rent payments to the landlord, HHSE will be moving out of the warehouse location in Springdale within the next two weeks - and occupying executive office suites in the Fayetteville business district. We are pleased to be 'getting out of the warehousing business' and turning this task over to Technicolor, after a few years of struggling to resolve "Twelve" debts incurred with them. They are a great replication and warehousing partner, and we're happy to be back on the Technicolor team. Separating Executive and Administrative functions from Operations will enable HHSE management to focus on "the big stuff," the big projects, the big picture so to speak. It's an exciting time and an exciting move that will be presented in greater detail as a free-standing media announcement.