Greetings HHSE Friends & Followers, and welcome to the first blog of the best year for HHSE.
Management has been encouraged by some longs to provide details in this blog of current activities on a variety of subjects; without violating current issues of confidentiality and non-disclosure, we can highlight a few details that are in motion and happening NOW and throughout this month.
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1). NFT / CRYTPO – yes, HHSE will begin
offering “collectible” images through the lucrative / red-hot NFT marketplace
this month. Impactful and unique images from the HHSE film library will be
offered in collections that are being tailored for maximum market
response. HHSE has built and published a landing page
already, and we are currently minting the first offerings via OpenSea for listing within
the next few weeks. Details will be
posted as these HHSE-NFT offerings go live.
2). NON-MYFLIX STREAMING UPDATE – HHSE released a small selection of twenty titles from the film rights library in October to various streaming services - on a non-exclusive basis - in order to provide historical support for the company’s upcoming film library valuation update. The results were quite welcome as the net revenues for each of the last three months of 2021 more than doubled the sums forecasted in the film library projections. We do not know how long these streaming windfalls will continue… perhaps it’s short lived due to cold weather or COVID-related streaming spikes? Or, perhaps this is the new media world we all live in now, and this is like the go-go-days of the 1990’s for home video? In any event, we have gleaned valuable back-up for the Film Rights Valuation Report, as well as cash flow for operations. Watch this space…
3). Q4 FINANCIALS / F10 FILINGS – As previously reported in late December, the Q4 results have been included in with the F10 filing in order to provide the full 2021 year – as well as to avoid the ongoing issue of stale financials in respect of the time required for S.E.C. review.
4). MYFLIX FUNDING – As previously disclosed, Company is negotiating for a $4-mm line of credit to be utilized exclusively for the launch and promotion of the MyFlix site and APP - which venture may be executed in the days immediately following 1-11-22 (this coming Tuesday). Management cannot disclose additional details until the deal is fully executed. However, as alluded to in December, this funding alleviates the need for a costlier issuance of shares via the S-1 offering, which had been announced to be launched immediately following the F10 registration for the Company.
5). COWBOYS OF CANNABIS – The pilot episode is finally COMPLETED (!!) to full broadcast length and standards. This was a crucial achievement and requirement for the closing of a very significant series licensing venture with a major media service (details to be disclosed via mutual announcement). HHSE earns modest fees for each episode; but the real upside for the company will come from net revenue shares, additional seasons and international licensing (the values for which cannot yet be specified).
6). WILDFIRE POST-PRODUCTION – Edit assembly of this family-appeal feature is on track for completion during the first week of February, which will kick-in approx 4-weeks for Michael Martin Murphey to add his original music score at the same time as the dialogue cut and sound-effects editing are being completed. The film's final theatrical mix will occur in Los Angeles during the first week of March for delivery to our major studio distribution partner on or about March 15, 2022. Exciting times!
7). THE LEGEND OF BELLE STARR – “Momentum creates momentum” is the infamous marketing adage, which applies perfectly to the next major production via HHSE. With three major stars already attached (subject to final shoot schedule and issues such as COVID delays on their other projects), “THE LEGEND OF BELLE STARR” was already pegged as a major event title. However, we now have strong interest from ANOTHER major star (this one for the role of Judge Isaac Parker), which would further elevate this exciting property for HHSE in 2022. Four "A" stars. Seriously.
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Revenues for HHSE in 2022 will occur from MyFlix, Production Fees, Distribution Fees, Cowboys of Cannabis participations, International Sales and non-MyFlix Streaming placements. The company will also release a few titles onto BluRay in 2022, as well as two book titles to the Trade Paperback market. But those physical goods sales are not expected to be significant when compared to the revenues from MyFlix and major productions.
In other news, staff members and outside contractors have begun to return to work at the HHSE marketing office at 355 N. College in Fayetteville, AR, as of this past October. As previously disclosed, the factors of the COVID-19 Pandemic and the general use of outside contractors (mostly not located in Arkansas), as well as outside board advisors being out-of-state, encouraged the company to take the "safe" step in March of 2020 of functionally ceasing the requirement of daily "in-office" operations (as did many companies worldwide). Of course, HHSE maintained the office space and lease - but continued to operate remotely while receiving mail and shipments at the office. On a day-to-day basis, neither Parkinson nor Shefte (nor any other HHSE workers / vendors) were expected to report to that location during the peak of the COVID scare.
With the decline in DELTA this past September, HHSE began allowing MyFlix workers, vendors and other staffers back at this Fayetteville location - although the new surge in Omicron may motivate another temporary "work from home" order. Ironically, management has observed that productivity from those working from home the past year-or-so seems to have exceeded the work output from those whose workable hours were previously impacted by the distraction of daily commutes to-and-from the office. This realization seems ubiquitous: based on the millions of square feet of unleased office space in all major markets at this time, it appears that the previous paradigm of "everyone must be in the same building" has proven to be antiquated practice for many businesses. Ultimately, a balance will likely rule, with a small HHSE staff at specific offices, but much of the management tasks occurring from whichever locale or mode provides the greatest productivity and safety.
In another development of interest to shareholders, Parkinson made direct contact last week with JAMES HINDS, the remaining partner in what had previously been known as the Hinds-Shankman Law Firm. As a result of this contact, there is now positive momentum for a settlement of the legal fees dispute, which hopefully will be resolved this week. Updates will be posted as a positive resolution solidifies.
Lastly - one of the blogs in December mentioned “pubco filings” as precursors to the F10 release. This was interpreted by some to think of Edgar filings on the S.E.C. site, as opposed to OTC Markets disclosures and other public and general corporate housekeeping filings (such as the change of share structure to accommodate the anticipated line-of-credit collateral lien requirements). Yes, there is an Edgar filing in the works for HHSE which includes some general disclosure items; it should be released this week. But it does not contain information that makes it an essential item for release prior to the F10 publication. Some of the information originally pegged for that specific disclosure has already required updates in the past two weeks. So, the requirement of accuracy is always more crucial than the request for expediency. We're getting it all done.
More to follow….
