Countdown to World Premiere Screening of WILDFIRE!

Greetings HHSE Friends - it's been a long journey with the movie "WILDFIRE" - including a two year COVID delay and the need to reshoot prior scenes after teenaged cast members aged (!!). But the completion is finally here, and we are preparing the release promotions and launch for this impressive film.

In addition to the film's notable cast - we have assembled a stunning motion picture soundtrack companion album / CD / Streamer.  The WILDFIRE Soundtrack features music from, or inspired by, the Motion Picture... including 55-minutes of NEW music by multi-platinum artist Michael Martin Murphey, plus three additional original songs. 

With the picture edit finally completed and locked, we were able to conduct the "final scoring sessions" this week to add interstitial and background music. Cherokee musician TRAVIS FITE composed guitar accompaniment and riff tracks to supplement the film's music score, and these synchronized to the film at Crisp Recording Studio in Fayetteville, AR.  The remaining steps for the film are the Dolby surround mix (in Los Angeles) and the final color corrections and titles (in Burbank, CA) - both occurring this month.

WILDFIRE will be prominently featured at the Cannes Film Festival next month, with a market premiere screening set for Sunday, May 21 at the Palais de Festivals. The new INDIANA JONES film is screening at the Palais on May 18, and the new Scorsese film KILLERS OF THE FLOWER MOON is screening on the 20th. WILDFIRE is not in competition (as are those other two), but will be screened on a night without a major competition title to draw away media attention.

The completion of WILDFIRE is an important step of both corporate credibility as well as cash flow. Hannover House earns both an off-the-top distribution fee from sales and licenses... and retains a priority lien for repayment of loans made in support of the production, and ongoing profit participation. The MYFLIX Presentation Logo on the film's credits and poster is an added benefit to help build brand awareness.

We are so excited to have this project completed... and thank the many people, vendors and organizations in Oklahoma, Arkansas and the Cherokee Nation for their help in making our first Hannover House facilitated feature production.  It was a lot of hard work - with obstacles ranging from COVID delays to the "idiots brigade" of naysayers.

But we got it done, the movie looks great, and the market response has been solid.  

THANK YOU TO OUR LOYAL "LONGS" FOR BEING PATIENT AND SUPPORTIVE DURING THE WILDFIRE PRODUCTION - and the other key HHSE tasks in motion.

 

New OTC Formatting Rules - Require Modifications to prior HHSE 12-31-2022 Filing

The sudden appearance of a "Yield" sign on the OTC Markets page for HHSE today prompted us to reach out to find the reason.  Apparently, as of March 1st, the format in which our disclosures are presented have been modified for all OTC Markets filers. This is not to imply any deficiency in the filing, only that it doesn't fit the specific new formatting requirements that were listed on the OTC Markets site in February. It will take a day for HHSE to reformat and submit this same information into the new layout format... so it will likely result in the "Yield" sign for a few more days as the OTC Markets deals with the large back-log of companies that also were unaware of the formatting changes. Hold tight!!

David Grann's newly released book, "THE WAGER" has been selected as the next major feature production for director Martin Scorsese and star Leonardo DiCaprio. Congratulations to this team in joining forces with David Grann again - a perfect follow-up to Grann's "KILLERS OF THE FLOWER MOON."    

HHSE releases modified / reviewed 12-31-2022 Statement - sets stage for Form 10 Registration

Greetings HHSE Friends - although the 12-31-2022 annual report (published earlier today to the OTC Markets) may not look dissimilar to prior quarterly filings, the difference is in the details as minor applications of royalties to producer balances, payables to reconciled sums, and adjustments to shareholder retained earnings / assets / equity, took a tremendous amount of clerical time to complete. But the good news is that we are now in compliance with suggested adjustments - and this will expedite our Form 10 registration.  

Stay tuned!  

PHOTO CAPTION: Please note that HHSE tends to include a photo with each BLOG post as the presence of an image improves the blog's accessibility.

Hannover House welcomes back Desiree Garnier - to manage MYFLIX Launch

 Greetings HHSE Friends & Followers - after nearly three years of working side-by-side with art patron and Walmart heir ALICE WALTON, former HHSE Marketing Director DESIREE GARNIER has made the career step back to HHSE to oversee the final launch and initial operations of the MyFlix streaming service. This is an important step for the company - to hire a person of superior and known competencies and skills - as it will speed up the venture's growth as well as support the management breadth of HHSE as a going-concern and emerging company.

More to follow. Meanwhile, a public press release is reposted below.

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Hannover House Sets Marketing Guru Desiree Garnier as Interim MyFlix President

 

(Fayetteville, AR).  Hannover House, Inc. (OTC: HHSE) has recruited Desiree Garnier to join the MyFlix team in the position as interim President and general manager of the streaming operation.  Garnier had previously worked at Hannover House as Director of Marketing from 2015 through 2018, before joining the management team at Art Bridges, a creative venture and vision from arts patron Alice Walton.

 

“Desiree is a proven commodity for us at Hannover House,” said Eric Parkinson, C.E.O.  “We are excited to bring her back onto the team after nearly three years at Art Bridges. Desiree is a multi-talented executive, capable of a wide-range of task skills, from the highest level of oversight to the ground-floor projects needed for a start-up venture. She knows the program suppliers, the MyFlix vendors, the launch task we now face and was with Hannover House in 2017 and 2018 when the MyFlix service was first publicly announced at the Cannes Film Festival to the industry,” he concluded.

 

Garnier will supervise a staff and team of vendors that handle many aspects of the MyFlix work load, from website design and mastering, to the creation of marketing materials and videos. She will also work alongside Parkinson and the HHSE Board to help find and recruit additional management and team members for the MyFlix launch and operations.

 

An initial sixty-day period for Garnier started on Monday, March 13, and will end with the mutual determination by the HHSE Board and Garnier in May to formalize her status as President and General Manager of MyFlix.

 

The MyFlix service has been structured as a one-stop, multi-studio streaming service similar to TUBI, Netflix, VUDU and other major services that are not studio or category specific. Over forty suppliers collectively controlling over 15,000 programs have agreed to participate by placing their programs onto MyFlix, giving the service one of the largest libraries of titles for consumers to stream.  The MyFlix website has been designed and built off-line, with a temporary “place-holder” website published until the formal consumer launch of the service.

 

Hannover House, Inc. has been operating continuously for almost thirty years, with entertainment and publishing activities spanning books, film, television and theatrical releases. The evolution of the company into a major streaming service with MyFlix is expected to have a significant impact to the company’s revenues and profile – leading many investors and funds to anticipate meteoric growth in the company’s stock price over the coming weeks and months.

 

For More Information Contact:

ERIC PARKINSON, Eric@HannoverHouse.com / 818-481-5277

Enhanced website security measures created temporary "glitch" for HannoverHouse.com site

Greetings HHSE friends - although the HannoverHouse.com corporate website has only minimal traffic at this time, we decided to upgrade the SECURITY features on this site while we were already doing the same for the security needs with MyFlix.com.  

What we did not realize is that the upgraded security changes resulted in a change-of-DNS direction. You see, HannoverHouse.com was registered as a domain in the year 2001 with NETWORK SOLUTIONS, although the website itself has been hosted by GODADDY since 2009.  MyFlix, on the other hand, was registered as a domain AND hosted by GODADDY since day one, so the GoDaddy technicians were able to update the DNS direction for that site internally.

After receiving word of this DNS glitch, we were able to correct the web address with Network Solutions in a manner of minutes.  However, it may take up to 24 hours for the connection to GoDaddy's hosted site to be completed.

So many major projects and activities happening for HHSE and MyFlix, that it's hard to get upset about a technical website direction glitch.  

HHSE management is finishing the OTC 12-31-2022 filing, now that the historic payables and flow-throughs for the last three years have been completed. Pretty much the final item needed for the Form 10 project. Stay tuned...

HHSE C.E.O. Eric Parkinson, on location with director ANTOINE FUQUA

MyFlix twin-sister, TUBI, turns down $2-BILLION buy-out offer

Greetings HHSE Friends - Two weeks ago, BLOOMBERG NEWS reported that Fox had turned down an offer to buy its TUBI.TV streaming service for TWO-BILLION DOLLARS.  This should be a huge wake-up call for any HHSE / MYFLIX skeptics - as our business model very closely follows the TUBI plan:  lots of programming, minimal to no licensing fees, little or no advertising, and a "split" of net revenues with the program suppliers.  In fact, the only thing more surprising to skeptics about TUBI's success might be the impressive and impactful TUBI ad purchased during the recent SUPERBOWL broadcast... one of the first major ads ever placed by Fox in support of TUBI. 

For the past three years, HHSE has been hesitant to launch MYFLIX for two primary reasons that may no longer apply:  1). MAJOR TITLES was always a concern for MYFLIX, as the principle of "one chance to make a first impression," suggested that having only independent films could look bad to potential MyFlix users;  and 2).  MAJOR ADVERTISING support was felt to be essential for a successful MyFlix launch.  Well, TUBI's incredible success has shot holes in both of those concerns. 

That said, it is still helpful to have an assortment of major studio titles to supplement the 15,000+ indie titles available to MyFlix. And, some level of advertising and publicity support will help with the launch. But the bottom line on how much money it will take to launch MyFlix has reduced tremendously - as market conditions have evolved. We are in the Golden Age of Streaming Services... and MyFlix is positioned to be a successful brand name option for consumers.

So what does this mean for HHSE shareholders?  It's hard to predict - as so many factors can impact each project and opportunity. But, starting with managements internal forecasts for 2023 - we can begin to build a basis for estimating the company's valuation. On the 2023 revenue projections chart below, we can see the following:

1).  PASSIVE ROYALTIES (V.O.D. from Library) will be modest, approx:  $108,883

2).  PRODUCTION INCOME from original shows and films will be the largest revenue source in 2023 (Production fees, Overhead Fees, Dist. Fees & Profit Shares):  $1,355,740

3).  MYFLIX income will likely turn into positive cash flow by June and will closely follow production incomes, through net revenue share and mastering fees:  $1,133,250

4).  STOCK OFFERING will hopefully generate over $1-mm for the company, about half of which will be used for MyFlix staff / operations / basic marketing:  $450,000

The previous plan to raise up to $8-million for MyFlix through a series of stock offerings seems invalid in the current marketplace. There will not be a major dilution of shares issued, as the needs for the MyFlix launch are only $1-mm or less.

While the 2023 projections are modest revenues, based on the company's low overhead, there should be a significant revenue surplus to enable key judgments to be paid off and most short-term notes to be retired... essentially freeing the company from the burden of old payables management that has cannibalized management productivity. 

Moving into 2024 and beyond - it's not unrealistic to forecast significant increases over the 2023 "launch" results - as services (like TUBI) post an average annual growth of 37.63%.

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After extensive research and analysis, Zippia's data science team found the following key financial metrics. Tubi's revenue growth from 2018 to 2022 is 37.63%.Sep 30, 2022

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So, what does this mean to HHSE shareholders? 

Again, it's speculative and subject to many variables. But the results of comparable businesses suggest a tremendous upside for HHSE. 

In pursuing programming suppliers for MYFLIX, the HHSE management came into communication with a variety of funds, brokers and advisers specializing in media and entertainment stocks. The consensus as communicated to HHSE is that the company is pursuing a viable and successful path, specifically:

a).  REGISTER THE STOCK SHARES - via the Form 10-12(g) S.E.C. filing;

b).  LAUNCH MYFLIX - especially focusing on the "free" Advertiser supported model;

c).  RETIRE JUDGMENTS AND DEBTS as quickly as cash flow enables; and,

d).  DIVERSIFY ASSET BASE THROUGH ORIGINAL PRODUCTIONS - rather than relying upon third-party-owned programming, being involved with cash-flow-positive "productions" balances the MyFlix model and provides an alternative revenue source.

These investors / analysts / traders consider themselves to be "the smart guys" in that their annual R.O.I. results consistently out-perform general market indices. Will the market give HHSE a 34-X price-earnings ratio (consistent with other streaming & media companies)?  Will the market give a 2-X to earnings "goodwill" boost to take into consideration that 2023 represents the launch of MyFlix and not the full operations?  Will HHSE / MyFlix achieve the baseline revenues to support a pre-tax income of $1.385-mm?

Perhaps all three might occur... and if so... the HHSE stock in this model would be trading at around $.17 / share.  Perhaps none of the three would occur at these levels... but even in the worst analytical scenario, there analysist report the widespread expectation that the stock will be at or above $.10 by year's end. 

This is why - for months heading into years - HHSE Management has encouraged shareholders to HOLD or GROW their HHSE holdings, rather than sell prior to the completion of these key endeavors. Penny stocks can offer a tremendous upside... but they can also be the wrong fit for a short-term trader. In the case of HHSE, the "clean-up" of the prior business model (e.g., the collapsed DVD distribution business and an illogical predisposition to ignore meritless litigation), has slowed the company's progress. HHSE has been bullish for years on filing the Form 10 registration AND in launching the MyFlix service. But the company's advisors have prioritized efforts to clean-up the balance sheet, deal with previously ignored legal issues, and to show a solid "going concern" viability before filing the registration.  That's how we got to where we are now:  never taking our eyes off the prize, but working daily to resolve all issues that impact the viability of the registration filing. 

Our current Form 10 task evidences how far we have come. Out of 515 payables accounts, 42 were mis-valued by more than 3% after third party verification. With the corrected balances in hand, the basis for calculating corrected interest, and flowing this through to earnings and equity for each prior reporting period affecting the Form 10 is a clerical level task that shows our proximity to crossing the finish line. Will the HHSE stock "bounce and hold" following the Form 10 filing? Most analysts have told us "YES," as their prediction. Will the stock pop and hold at another level after the MyFlix site is formally launched? Again, most analysts have told us "YES" as a further prediction. Will consumers respond to MyFlix with ONE-TENTH of the revenues as TUBI is enjoying? Well, wouldn't that be incredible? One-Tenth of TUBI annual revenues is still enormous... so it would not take a media analyst to predict that the HHSE / MYFLIX stock would be quite a commodity!

The last few years have been a bit crazy - not just for HHSE, but for the whole media sector. The "old rules" no longer apply, and media executives (like HHSE / MYFLIX C.E.O. Eric Parkinson) have to be faster, harder-working and willing to think outside-of-the-box in order to succeed. That's why Parkinson is not afraid to forge new paths to help put HHSE and MyFlix onto the right track. Over the coming months - some of the creative, unusual  and behind-the-scenes activities that have occurred to support the MyFlix launch will become known - and could become somewhat legendary. This C.E.O. - owner of more than 50-mm HHSE shares - has a personal vision of a $1 share price. And this is the motivation for Parkinson to put in the insane hours and Herculean effort (with no salary) to make it all happen.

So, skeptics be warned, and longs be strong.  Watch what happens - and congratulations to those with the vision and perseverance to remain patient supporters of the HHSE plan. 

HHSE / MYFLIX - 2023 FORECASTED REVENUES SUMMARY

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Hannover House, Inc. makes no representation, warrantee or guarantee that the revenues forecasted by the company for calendar year 2023 hereinabove will be achieved, or that the market's response to the company's revenue performance will meet the expectation of the stock analysts and traders who have provided projections to HHSE management.  This informational blog is meant to provide existing and prospective shareholders with a factual and insightful basis for the determination of the company's current and potential value, and is not meant to serve as investment advice for anyone reviewing this blog. As with all investments, consider your risk potential and seek investment advice from legitimate and licensed professionals. 

Reconcilliation of Payables and Receivables per Third Party Verifications

Greetings HHSE Friends & Followers - the past week for HHSE management has been focused almost exclusively on implementing revisions to the 12-31-2020 and 12-31-2021 financials. This is a newly required step has been required in order to conform with discrepancies between previously reported amounts for payables, judgments and receivables, with the revised balances occurring after third-party verifications.  

Even inconsequential variances from the inadvertent under-or-over-reporting of liabilities and assets - requires revisions to the prior reporting years in order to establish the confirmed baseline values for each balance sheet item. For example, if interest on a judgment debt was accrued at a rate different from the court ordered rate, then this variance will impact accrued earnings and shareholder equity. Conversely, failure to recognize all receivables or to retire accounts payable balances long ago paid-in-full, will also impact earnings and equity.  

There are no issues with the XBRL and other formatting - and there is no special significance to the dates of Feb. 14 or Feb. 15 - mentioned here due to shareholder emails inquiring as such. These are final clean-up steps to assure that the OTC Markets revised filings will match with the Form 10 audited financials.

The best news is that future reporting periods and audits will be simple as compared to the extensive work required to verify starting balances and modify the past three years of prior filings (for both cash-basis as well as third party verifications).  

IN OTHER NEWS - Post-Production is nearing completion on WILDFIRE - with Michael Martin Murphey's original score laid-into the edit assembly, and supplemental "interstitial" mood music now been added.  The final mix and delivery are just a few weeks away... which triggers a significant distribution advance for the benefit of HHSE.

Pre-Launch activities continue for the MyFlix venture - as well as ongoing activities for the major features (Belle Starr, Modern Antiquities and Meltdown). 

Although HHSE news has been quiet recently, it's about to kick into gear, contemporaneously with our Form 10 filing and what many believe should be a meteoric stock response. More to come...

A business colleague in NYC complained recently to HHSE CEO Eric Parkinson that the company's Form 10 Registration had not yet been completed and published. Parkinson asked him how long it took from conception to completion of his 60-story Manhattan building? The message was received: it's easy to do something quickly if you don't care if it's badly done or doomed for failure. But doing things correctly, for lasting value, does take time.