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Sunday, May 9, 2021

An Abundance of Momentum for HHSE Activities

Greetings HHSE Friends & Followers, and Happy Mother's Day to each of you and to your Mothers.  I hope that everyone reading this blog enjoys an emotionally rich personal and family life, and that you took time off today to appreciate the wondrous gift of life that our Mothers have bestowed onto each of us. Would your actions today - or for the whole of your life - make your Mother proud? Let's hope that each of us chooses to make a positive use of each precious day in a productive manner that would inspire the admiration from all of our Mothers. We are blessed to be living at this time, and fortunate that our Mothers have made it possible!


There's so much news and activity at HHSE / MyFlix that it's quite challenging to try to decide WHERE TO START.  With 43 supplier studios - each of which have requested a singular press announcement for their affiliation with MyFlix - that supplier news alone can be overwhelming. But when you add in new factors such as MAJOR STUDIO titles, PREMIERE titles, EXCLUSIVE titles... along with news of Consumer Promotions, Pricing Deals, Site & App Options and Launch Details... where to start with the news launch can be a major challenge.  In fact, our teaser-art and pre-launch promo materials and graphics must be carefully tailored & edited so as to NOT unintentionally tip-the-hat as to a particular supplier partner or title.  Accordingly, the teaser items on the site and in press and blog listings are an incomplete picture of what the promo materials will ultimately look like the day-after we launch the portal. 


We will try to be brief with the following summary of what exactly we are launching with on the MyFlix site & APP initially.  As we have stated in the past, there will be additional features added soon after the consumer-streaming launch (including an educational portal, interactivity and gaming). But for now, here's a quick snapshot of what consumers will see this summer when they log-in and sign-up for MyFlix:

·        90 Major Studio Titles;

 

·        120 “MyFlix” Exclusives (not available on any other streaming service);

 

·        5 “MyFlix” Premiere Titles (first window of release in USA being MyFlix);

 

·        10 “VIP Pass” Movies (available for FREE after MyFlix user registration);

 

·        2,500+ Titles sorted by 30 Genres (Action, Adventure, Animated, Anime, Art, Children’s, Comedy, Crime, Documentary, Drama, Educational, Fantasy, Foreign, Historic, Horror, Independent, Interactive, LGBTQ, Martial Arts, Musical, Music Video, Mystery, Noir, Romance, Sci-Fi, Spanish, Superhero, Television, Urban, Western);

 

·        Over 1,000 Initial Titles will be covered under the Monthly Subscription Plan.  All MyFlix titles will be available to registered users on a Transactional Video-On-Demand basis with prices ranging from $1 to $3 for regular programming, with Premium Rates for 4k or Featured New Release / Event titles.

 

·        All MyFlix titles will have Captions as a viewer-selected option.

 

In keeping with the stated programming policy for MyFlix, the site will NOT offer pornography.  If a producer-supplier delivers titles that are not MPAA rated, MyFlix will review for program suitability and will issue an age-based, MyFlix Rating Equivalency to provide viewers and parents with an advanced awareness of the relative nature of the content. 


Additional HHSE updates not related to MyFlix will be released on Tuesday, including our first wire-services press release in quite a few months.  It is possible, perhaps even likely, that prospective new shareholders will be looking into HHSE and MyFlix this week, and we won't disappoint.


The Stars Shine At MyFlix

Just a Few of the Featured Talent from Initial MyFlix Titles:


CHECK THIS BLOG ON TUESDAY FOR MORE MYFLIX UPDATES!


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A Personal Note from ERIC PARKINSON, re: Mothers & Character

Some Thoughts for Specific Parties - Whether you live in BEVERLY HILLS, TOLEDO OHIO or in a tiny apartment in a TEXAS Suburb, I ask you to ask yourself:  are you a BUILDER or a DESTROYER?  

Have you worked to build something positive - a notable and lasting legacy for others to see, enjoy and admire?  Or are you merely taking up space, consuming resources and generating negativity?  

Life is a very limited and precious resource. No one escapes it with their lives... and ultimately all that remains are the memories within others of how we helped them with kindness, wisdom, generosity and integrity.  

Make 2021 the year that you rise above the petty emotional anger of mediocrity, jealousy and abandonment. Each of us manifests our own realities, and our daily momentum creates more  momentum. If you fill your hearts and minds with false and ugly thoughts, then that is the life that you are manifesting upon yourself.  

Let the negativity go... and let into your life the positive impact that would make your mother proud. There is nothing better in the world.  












Friday, May 7, 2021

HHSE Moves to Set-Aside Disputed Legal Matter

Greetings HHSE Friends & Followers - As stated earlier this week, HHSE is taking aggressive legal action to set-aside or otherwise actually adjudicate the matter of the "Lewin New York" Judgment - which was obtained via default and misrepresentations, despite no agreement existing between the company and Mr. Lewin.  


As of today, counsel has been engaged in BOTH New York as well as in Arkansas. Our New York Counsel is making several motions in the case, including the Order to Show Cause and the Meritorious Defenses of HHSE and other (arbitrarily-named) Defendants. Company counsel in Arkansas is filing the motion to stay enforcement due to the default status in New York and the case never having been adjudicated (which is allowed under Arkansas Law regarding the enforcement of foreign, sister-state default judgments). 


Rather than attempt to describe the legal positions of these filings, we prefer to let the filings present the merits of the motions to the courts directly.  Accordingly, once these motions are posted live to the two separate court sites, we will re-post them here (but without the lengthy exhibits).


Court actions to stop the attempted enforcement and the Writs are a precursor to getting this disputed matter removed, dismissed or otherwise adjudicated in favor of HHSE. This will remove the fear-and-uncertainty that stock manipulators and short-sellers have tried to nurture over the past few weeks since this matter emerged as an issue requiring immediate resolution. 


A separate blog dealing with company activities and developments will be posted this weekend, as we are anticipating some positive, forward movement next week.


HAVE A GREAT WEEKEND!




Monday, May 3, 2021

OTC Status Restored to Current - News and Other Activities Back On Track

Greetings HHSE Friends - after weeks of waiting, the OTC Markets finally approved the updated / newly-formatted filings from Hannover House.  Our "Current Reporting Status" has finally been restored.


Several significant news items have developed or finalized over the past few weeks. As stated previously, our goal in releasing these news items was to beneficially impact and motivate shareholders.  We were concerned that great news - if timed with a "Yield" sign - would diminish shareholder enthusiasm.  Accordingly, getting the OTC Markets to confirm our status was an obstacle that was finally resolved.


There is, however, a new obstacle that we feel could temporarily impede shareholder enthusiasm for HHSE news.  The "Lewin NY Judgment" heated up after the resignation and bankruptcy of former HHSE President D. Frederick Shefte. Existing shareholders will recall that Bruce R. Lewin - an investor in the movie "Dancin' It's On" - filed a lawsuit in New York against Hannover House and our two principal officers at the time, even though there is no agreement (verbal, written or otherwise) with Mr. Lewin for HHSE or the officers to have any obligations to him.  In fact, the only contract that exists for "Dancin' It's On" is with the production company and director (David Winters), and the company has been performing its obligations under that agreement.  In any event, Mr. Lewin's attorneys in New York were able to force a default judgment, which they are NOW (finally, after several years), seeking to enforce in the State of Arkansas.  Counsel for Hannover House will respond by the end of the week with the initial filings available under Arkansas law, to stay any such foreign enforcement actions and to open and adjudicate the facts of the matter. Our counsel believes that we will prevail with both goals ("freeze" of enforcement actions and "victory" in the actual matter of the\non-existent agreement with Lewin).


However, this foreign judgment has an absurdly high dollar amount listed - almost $2-million dollars.  So, we are concerned that new or limited information shareholders might see this nuisance lawsuit as something real, existential or scary... and thus the impact of positive HHSE news from the real world could be diminished.  Accordingly, we will not be releasing significant news over the next few days, until our court filings in the Lewin matter have initiated (later this week). That way, the positive news of our progress and deals will not be diluted by misinformation about a crazy, foreign lawsuit.


Hold tight!  The soup is brewing-up wonderfully!







Tuesday, April 27, 2021

HHSE "Current" Status at OTC & Additional Clarifications

Greetings HHSE Friends - many shareholders have expressed frustration at the prolonged delay in getting the "Yield" sign removed from the HHSE OTC Markets page, even though the company has complied with the new disclosure formatting process. We were told by OTC Markets personnel yesterday that HHSE had forfeited our priority review status for 12-31-2020 due to having TWO of our prior 12-31-2020 reports reviewed and rejected (the first for being in the prior format, and the second for listing information not requested). We refiled the 12-31-2020 OTC annual report (and kept it limited to the specific items that they feel are worth reporting); yet, two weeks later we're still listed as "Yield."  The response from OTC Markets yesterday was to accelerate and file the Q1 results ASAP, and that this action will get HHSE back to the top of the compliance review list.  Accordingly, we are completing this filing now - and hope to post it tonight.


There are additional issues of inquiry and concern from Shareholders over the past few days, which we will briefly address below:


1).  LEWIN LAWSUIT - Shareholders may remember that the investor in the movie "Dancin' It's On" filed a lawsuit against Hannover House (and officers), despite having no agreement with the company or officers (the company only has an agreement with the producer / licensor of the movie). In any event, despite hiring NY counsel (Michael Drobenare) to move for dismissal in the New York courts, we were surprised to find out months later that attorney Drobenare actually moved to "strike" our answers (without prior approval or notification). The result was that the company and officers ended up on the wrong side of a default judgment from a party with whom no contract or agreement existed. Fast-forward to April 2021, and we find that a local collection agent / attorney in Arkansas is now rattling-the-sword to attempt enforcement of this foreign (NY) default.  Accordingly, we have now engaged Arkansas counsel to move to set-aside the judgment / stay enforcement, and coordinate in moving to strike the New York Judgment. Due to the facts being on HHSE's side (i.e., no agreement or contract) - and strengthened by the Arkansas limitation on the enforcement of a sister-state default judgment - we feel confident that the outcome will be in HHSE's favor.


2).  LISA HIGGINS, CPA - In 2019, Fred Shefte met with Lisa Lashley Higgins about having her tax firm prepare and file the HHSE consolidated 1120 Federal Tax Returns for 2018 (and later, added for 2019 and 2020). Lisa agreed to accept HHSE as a tax client. However, she suggested that these tax filings (even though already late), should be delayed until AFTER the PCAOB auditing firm completes the F10 reviews for HHSE. Lisa correctly predicted that some items and aspects of the HHSE accounting would need revision to conform to GAAP and Sarbanes-Oxley requirements, and that filing cash-basis tax returns that might not later conform with the audited reports could create an issue for both the IRS and the Securities and Exchange Commission.  Accordingly, despite Lisa's willingness to handle the company's tax returns, she has not yet performed this service as we are still making formatting changes to the worksheets provided to the F10 auditors.  Due to previous attempts by "HHSE Critics" (aka Stock Short Sellers / Bashers), to sabotage and otherwise interfere with the previous PCAOB auditing firms that HHSE engaged, the disclosure of the current PCAOB auditing firm has been intentionally delayed until the maximum possible date - to occur as close as possible to the F10 filing. 


3).  HANNOVER HOUSE FILM & TELEVISION LIBRARY - Although it seems self-evident to anyone with knowledge of the film industry, the HHSE Film & Television Library is NOT a giant building full of DVDs and is NOT an asset which can be sold or otherwise liquidated in order to achieve its valuation. A film library is the projected value that the items being handled by a company should ultimately receive over the length of each title's agreement with that company.  It's a projection that assumes current market sales patterns and projects these out over time to reach the "ultimate" valuation. In the case of the HHSE film library, the valuation report is now stale (it's over 10-years old), and there has been a paradigm shift during that time wherein the tiny sums predicted for Digital Streaming have offset (and in some instances) even surpassed the prior "huge" amounts listed for projected DVD and BluRay sales (which revenue streams are now insignificant). Additionally, and as is almost always the requirement for indie producers placing a title with an indie distributor, the rights conveyed to HHSE terminate if HHSE ceases to operate, if HHSE attempts to "sell" the agency rights granted from each supplier, or if "key man" Eric Parkinson leaves the company for any reason. These conditions protect the producers / owners of the titles from the possibility that an adversarial creditor might try to force a sale of the HHSE agency rights... or if the company ceases to operate... or if Eric Parkinson is abducted by aliens and there's only a collections agent remaining at HHSE to try to market the producer's asset over the next 10-years.  The company DOES need a new and updated Film & Television Library Report.  We haven't done it yet due to the cost ($40,000); however, we DO plan to proceed with a new and updated Library Report (from one of the top three specialty firms), with proceeds from the Company's S1 Offering.  

Most of the HHSE titles are under Sales Agency agreements, which do not convey a transference or license of the film's rights or underlying copyrights, but which authorize HHSE to make copies of the titles in the fulfillment of the HHSE duties as Sales Agency.  Again, these are standard provisions that a majority of the owners of films require before engaging a sales agency distributor. 


The LIBRARY OF CONGRESS and the U.S. COPYRIGHT OFFICE is an actual PHYSICAL SPACE holding tonnage of editions of a wide-range of media properties and documents.  A Film Industry Library is NOT a physical place or repository:  it is an informed projection of what a collection of titles is expected to generate over the length of those titles' rights to the distributor or sales agency. The value of a Film Library is predicated upon the ongoing operation of the sales agency and key personnel at that agency. 


FWIW (For What It's Worth) - HHSE has been successful in acquiring sales rights to titles due to the sales track record of CEO Eric Parkinson.  Beginning his video distribution career in 1984 with the "Summer Olympic Highlights" video (the first title in 2-years to knock the Jane Fonda Workout out of the #1 position on the Billboard Magazine Top Videos Charts), Parkinson has handled the release of over 1,350 titles to the video market. He has had eight # 1 Billboard hits and 137 titles qualifying for R.I.A.A. Gold or Platinum Selling Status.  In 1991, his re-release of "TERMINATOR" (timed for the theatrical launch of T2) generated 2.8-million unit sales to launch Hemdale Home Video;  and his bold launch into "Sell-Thru" pricing of new release titles in 1995 sold another 6-million videos combined of Little Nemo, The Magic Voyage, The Princess & The Goblin and Savage Land.  In 2004, when Walmart first launched the "$5 Budget Bin" - titles handled by Parkinson / Hannover House put the unit volume into the top ten of all Walmart DVD suppliers (and at one time, Parkinson titles were 7 of the 10 top selling titles at Walmart based on unit sales). This history for Parkinson - from 1984 through the hey days of DVD - have proven to be a powerful magnet for the company to find successful engagement as a Sales Agency / Distributor for independent films.  As the world moves into the Digital Streaming media over physical devices, the Parkinson track record has again proven to motivate MyFlix supplier studios into agreeing to join in this one-stop digital superstore concept.  


It's expensive (and frustratingly complex and time-consuming) to launch a site such as MyFlix. But watch what happens to HHSE when this new superstore is opened-for-business!


Thursday, April 15, 2021

OTC Markets Compliance & Status Restoral

 Dear HHSE Friends & Followers - we have been told by the OTC Markets that our "Current" status should be restored ASAP (but may not show on the site as such until tomorrow morning), as we have conformed to the new disclosure formatting.


We have intentionally delayed the release of significant and exciting news until our "Current" status is restored... as we felt that the "Yield" sign might temper enthusiasm from potential new shareholders driven to look into HHSE as a result of our news. 


In the meantime, condolences to anyone who is selling now... and kudos to those who are getting bargain priced shares.  


UPDATE:  FRIDAY, APRIL 16, 11:55-pm CST - We have just been informed by the OTC Markets that our REVISED filing needs to be EDITED  and RE-FILED yet again, to remove "disclosure information not required under the new formatting rules." So this is happening now.  


TUESDAY MORNING UPDATE (April 20, 2021) - Obviously, the OTC Markets are taking longer than their prediction last Thursday, due in part to Hannover's "too much information" requiring the re-edit and reposting of the 12-31-2020 filings this past weekend. Our OTC Counsel (Morgan Petitti) confirmed that it appears that the most recent filing met the new format standards, and as such, she released the annual attorney compliance letter. The restoral of the "CURRENT" reporting status is essential before our newswire press release, as we would not want to draw new attention to HHSE and have interested parties look at the OTC page and see a "Yield" sign instead of Current.  We are told that it's in motion... yet, like the kids in the back seat of the car, the suspense of "are we there yet?" can be frustrating.  We will maintain a polite but steady pressure onto OTC. 





Tuesday, April 6, 2021

New Format & Disclosure Requirements for OTC Markets "Current" Reporting Standards

 Dear HHSE Friends - as of March 1, 2021, the OTC Market changed (once again) both the format and breadth of disclosure information required in order to maintain "current" reporting status. Unfortunately, we did not see the format changes when our 12-31-2020 report was filed on March 8... and as a result, we have now been declared deficient or otherwise outside of compliance to the new standards.


Accordingly, we will revise the 12-31-2020 Annual Filing for the OTC markets immediately and resubmit. Separately for those who has asked, the annual attorney letter to the OTC Markets is not due until April 30, 2021. Also, the need for OTC filings is rendered moot with the company's full S.E.C. registration.


Part of the new disclosure rules will include additional items which were previously disclosed, but not via the methodology the new requirements mandate. So, there will be some non-newsworthy items posted under the OTC News listings merely to comply with the newly revised reporting standards.


REGARDING THE PLANNED PRESS RELEASE FOR TODAY - We have elected to hold the press release until tomorrow. One of the executives that we have been negotiating with to join MYFLIX is still under a non-compete provision with a prior employer (an SVOD industry leader). While neither HHSE nor the individual believe that a hiring by MyFlix violates this post-employment restriction, we do not feel that the publicity or distraction of a legal battle is in the best interests of MyFlix at this time.  Tomorrow's news will address other exciting and relevant topics....  WEDNESDAY NIGHT UPDATE (midnight Central Time) -The Press Release planned for today was held for PRE-MARKET tomorrow (Thursday); however, it is now midnight Central Time, and an OTC Markets disclosure that precedes the wire services press release is still not posted onto the OTC Markets website. We will push forward for the publication of both items early Thursday morning and for expeditious processing by the OTC.  It’s frustrating that these new OTC Markets disclosure and formatting requirements are currently impeding the timely flow of information to our shareholders. Hold tight, it’s all in motion. THANKS!!

Onward....



Film Production in Oklahoma is back in full swing now - with the entire Cast & Crew of "WILDFIRE" now having received the COVID-19 Vaccination (although, unlike the above photo - and under S.A.G. safety protocols - the "WILDFIRE" team is still wearing masks and practicing social distancing, except for performers on camera). 




Friday, April 2, 2021

Good Friday Updates - HHSE, MyFlix and More...

Greetings HHSE Friends and Followers - Happy Good Friday / Easter and Passover Weekend to those for whom such good wishes apply.  Spring is in the air... a COVID Vaccine is in wide distribution, and HHSE and MyFlix are on a path for substantial success.  Yes, 2021 is turning into the antithesis of the frozen-in-time quarantines of last year... and we could not be more ready to get back on track.


Yesterday, we alluded to a significant news break in today's blog... THIS blog, in fact.  After sending a draft this morning to the HHSE counsel for approval, we were asked "why" would we be presenting this information AT THIS TIME and under a BLOG POST as opposed to the mass visibility of a newswire release?  Good questions for which there are no good justifications.  We do have significant and substantial news that our counsel feels should be treated with the respect that such developments deserve... and that a Good Friday Blog would be a wasted opportunity to have a positive impact to the company's visibility, credibility and shareholder enthusiasm.


So, we will move these items into mainstream newswire releases beginning Tuesday.  Meanwhile, we can provide shareholders with some updates on less substantial issues.


1).  MYFLIX Gaming & Educational Portals - We are moving "up" the coordinated launch of these two key MyFlix Features to correspond more closely to (or simultaneously to) the launch of the MyFlix passive-streaming service.  The rationale' for this move will be clarified in an updated MyFlix mission statement, as detailed in the Company's Form 10 and S1 Offering documents.


2).  MYFLIX Exclusives & Premiere Programming - New financing structures will enable MyFlix to also offer key titles on an "exclusive" basis, including first-release premiere programming.  This was not previously contemplated due to the costs for exclusives or premiere titles.  The structure and rationale' for such a move is also detailed in the Company's Form 10 and S1 Offering documents.


3).  MYFLIX Principals and Advisors - We have recruited proven executives from successful streaming services to join the MyFlix team in either executive or advisory positions - which we believe will add operational insights and venture credibility to the MyFlix launch. 


4).  MYFLIX - SVOD Subscribers Goal - Based on the quantity of titles for MyFlix, as well as the unique special features the site and APP will offer - the company feels that it's realistic and obtainable to have over 1-million "monthly" subscribers within a year (paying approx. $9 / month), with an annualized gross revenue basis of $108-mm.  This forecast goal is based in part by the success of ACORN and AMC channels (see article below), which now has over 4-million monthly subscribers at $5.99 each (about $300-mm annual gross).


MORE TO COME>>>

Have a great weekend and an awesome April!

NEW PRODUCTION VENTURE:
HHSE is providing seed capital for the development of "NATIVE FABLES" (working title) - a live-action, feature anthology based on popular legends of the Cherokee Nation and Indigenous Peoples of North America.

DID YOU KNOW THAT....?
ANNE HECHE and VINCE VAUGHN co-starred together in both "Psycho" (Universal, 1998) and "Return To Paradise" (Polygram, 1998).  Each of these two screen legends has appeared in principal roles in movies that have collectively generated over ONE-BILLION-DOLLARS each at the worldwide box office... making them into not only well-known stars, but bankable commercial talents. 

Acorn TV: Everything You Need to Know About the SVOD Service Battling BritBox for Control of the U.S. Anglophile Market