July looks to be a busy time for HHSE!

Happy Friday to our HHSE Friends & Followers - Corporate movements are kicking into third gear for July, with material activities on multiple fronts, and lots of meetings and travel support.

The Launch of MYFLIX requires two L.A. trips during July - plus one web-hosting visit to Seattle.  The L.A. trip will also allow for some face-to-face meetings with key MYFLIX suppliers and other major studios that we are seeking to enlist.  The aggressive Q3 / Q4 home video & digital release slate for the HHSE / Medallion core distribution business will also benefit from direct meetings with key wholesalers and distribution partners in the L.A. metro.  And of course, we anticipate one or more day trips during July to meet with the auditors (current Form 10 project), should issues requiring clarification not be easily resolved by calls or Skype.

Hannover's original production of the Period-Thriller, THE RIOT ACT, will likely be rescheduled for theatrical release in SEPTEMBER in order to access a retail cross promotion and a College / Universities support campaign. Previously, we had planned this title for theatrical launch on Aug. 24... but the mid-to-late September date is looking more interesting.  HHSE / Medallion also have two other titles for theatrical release - both planned for OCTOBER (neither acquisition has yet been announced, so out of respect for the stature of the films, the company will announce the titles via separate wire-services press releases).

With all of this exciting activity and results, some current and prospective shareholders are asking about the HHSE stock and timing. Accordingly, we share with you below the summation of notes from large traders / professional funds that have been in communication with HHSE management over the past few months.

WHY IS THIS A GREAT TIME TO LOOK AT HHSE?

1).  STABILITY - Company has been in business for 25-years (since 1993).

2).  DIVERSITY - Original business of BOOK PUBLISHING evolved into DVD Distribution and now into THEATRICAL and INTERNATIONAL Distribution as market conditions changed.

3).  NEW MEDIA - the new MYFLIX Venture into digital streaming (www.MyFlix.com), has over 30-studio and film library participants, collectively with over 10,000 feature films and television episodic hours of entertainment. This platform will have (literally) THOUSANDS of movies not available on any other streaming site. Less than ten years ago, NETFLIX was a mail order video rental business. NOW they are among the top movers and shakers in the entertainment industry DESPITE having a very limited selection of programming for viewers.  We believe that MYFLIX could be a revolutionary new streaming destination - and a massive turning point for Hannover House.

4).  STOCK REGISTRATION - HHSE is currently on the "OTC-Pinksheets" exchange. This status has impeded some large, institutional investors and hedge funds from buying into the stock. However, the pending Form 10 filing (including audits), will elevate the stock to the OTC:QB status as an initial step towards possible further up-listing. The OTC:QB status will open the door to significant new shareholders, which most professional traders and investors feel will dramatically improve the PPS and trading volume for HHSE.

5).  NO STOCK ISSUANCES / NO DILUTION - HHSE has not issued any new shares in the past three years, and management has repeatedly stated that there are no plans to dilute shareholders through any deals now in motion or anticipated in the future.  

6).  PRESENTLY UNDER-VALUED PPS - Based on the Price-Earnings ratio for other publicly traded film / entertainment distributors, HHSE should be enjoying a 22X share price based on earnings.  HHSE is on target to realize $1,250,000 in earnings for FYE 12-31-2018. This supports a share price of $.034 at present... and does not take into account the tremendous good-will and enthusiasm factor for the upcoming launch of MyFlix. Some highly respected stock analysts have communicated to HHSE management their prediction that the company's activities could support a share price of $.15 - which is more than ten-times current pricing. Even if their predictions are off by 75% - there is still an easily justifiable share price that is many times more than current trading levels.

7).  TIMING-TIMING-TIMING - The launch of Myflix is a "second generation" site, in that the digital streaming technology and consumer acceptance have already been established. With that essential battle already won, MyFlix can concentrate on becoming "the better mousetrap" for digital entertainment.  You combine this ideal market timing with the company's stock registration uplist, the presence of significant new shareholders post-registration, and new distribution pacts for the company's core film distribution activities (SONY / CINEDIGM), many feel that NOW is the ideal time to take a position in HHSE shares (while the HHSE Price Per Share is artificially low).  Are these professional traders right?  We will all know very soon!  

HHSE makes no representation, guarantee or warranty that our share price will improve significantly as a result of these and other current activities. Every stock investment involves risks and factors outside of the control of issuers and management. But we proudly share with you the above information, projections and rationale' that professional traders have identified as the basis for why they believe that NOW is a great time to look at HHSE. 

CHECK THIS BLOG SITE FOR REGULAR UPDATES ON HHSE and MYFLIX!

Delivering the HHSE Audit Package feels a bit like the final scene from "Indiana Jones"

At long last, the HHSE Audit package has been completed and has been delivered by courier today (it was "after business hours" tonight when the final alphabetizing of the file folders was completed)  Some aspects of the prep for this project were relatively easy... such as the electronically delivered Quickbooks ledger of sales and payables, and scans of 1120-S filings.  But other items - such as the reconciliation of producer recoupment positions for over 450 titles (many going back to 2005) - as well as the copying and collating of agreements (which averaged 12-pages per title, plus term renewals). For these more voluminous elements, a physical copy from Fedex office was more expeditious than the time that would have been required to scan, upload and download more than 4,000 pages of supporting agreements.

But it's done, and we can all now set our sights on a prompt filing of our Form 10 Registration Statement - timed to correspond with our peak consumer promotions for MYFLIX in early August.

TO BE CLEAR: THE AUDIT PACKAGE IS DELIVERED TO OUR REPUTABLE (PCAOB CERTIFIED) AUDITORS!

Stay tuned for updates!  Onward & Upward!

Okay... so maybe it's not QUITE as daunting as the Indiana Jones warehouse image... but a LOT of work, copying, collating and organizing went into the completion of the HHSE audit package!

Monday, June 25, 2018 - The Summer is Sizzlin'

Greetings HHSE Friends & Followers - It's been said that if you don't actually ever sleep... that life is like one incredibly long day. Maybe that explains the 10-day lapse in HHSE Blog postings? Or the long summer days thick with heat and humidity?

For those of you who have not yet been involved with a "start-up" business like MYFLIX, long, sleepless days and nights are the norm, not the exception. This digital platform venture will have thousands of films and hours of TV episodic programming... so it's not dissimilar to launching 100 cable channels simultaneously in terms of product diversity and offerings. 

That said, some HHSE longs are still awaiting news of core activities and operations. In this respect, we have been asked to comment on the status of the HHSE audit package for presentation to the PCAOB auditors. While this is not our first audit... it is definitely the most thorough and specific examination the myriad of investments, deals and financial activities comprising the operations of HHSE. Our goal with the audit prep project has been to anticipate issues that could arise with the auditors as well as with the S.E.C. in the review of our Form 10 registration filing. We are comfortable and confident with our back-up and methodologies; accordingly, we are optimistic that our audit process can now proceed with minimal comments and delay.

The audit package is being presented Thursday morning; we are anticipating a process of about four weeks before the audited financials can be dropped into the otherwise completed Form 10 registration filing. An outside service has been engaged to format the audited financials into the XBRL formatting, and to submit to the S.E.C. Edgar department.  This should put the Form 10 filing date at or near August 1st, approximately the same time that consumer promotions for the MYFLIX launch will be at a frenzied peak. We think the coordination of these two material events for HHSE could be a one-two punch to knock the stock into significant attention.

Will Myflix be the tail that wagged the dog?  Will Myflix become a top destination portal for digital streaming... and a widely recognized consumer brand name?  Will the HHSE core business of indie film distribution grow significantly as the Myflix launch results in a rising tide of revenues, profits and visibility?

Watch this space...

Friday, June 15 - HHSE Blog Report

Greetings HHSE Friends & Followers - Most of the "post-Cannes" follow-up work has been completed (sales, new acquisitions and Myflix launch partners);  accordingly, it's a good time for us to highlight SOME of the release items set for the upcoming month.  Not listed below are the NEW titles recently acquired (Cannes and Post-Cannes) - including two Q4 theatrical titles.  However, as some of these titles have been long-delayed from home video release, we wanted to provide the update as to the imminent status for these items.

There is still a reasonably robust "physical" market (DVD and BluRay) for the right products (and usually for theatrical-caliber titles).  Revenues from Video-On-Demand streaming (including transactional, subscription and electronic sell-thru) are beginning to surpass physical DVD and BluRay revenues.  The release slate below for physical video dates & forecasts does not include V.O.D. revenues sources, television or international for these particular titles.

Customarily, some of these titles would have been released to home video quite some time ago, most notably:  BONOBOS, SLEEPER CELL, RIDE UNITED, AMERICA UNITED and DINOSAURS OF THE JURASSIC. Due first to the move over from Anderson / Alchemy to Cinedigm as principal two-step wholesaler... then the protracted, "slow-dance" of a proposed merger with Crimson Forest, both of which contributed to strategic delays in these home video releases.  Now, with distribution channels firmly in place, the HHSE corporate status no longer uncertain, and significant new theatrical titles in the upcoming pipeline, HHSE / Medallion are finally empowered to begin harvesting the significant revenue streams to be enjoyed from the release of these titles via physical, digital, television and international markets.

MORE TO FOLLOW...

HOME VIDEO (2018) GROSS FORECASTS:  $2,900,000
THEATRICAL (2018) GROSS FORECASTS:  $435,000
STREAMING GROSS FORECASTS:  $780,000
TELEVISION GROSS FORECASTS:  $245,000
INTERNATIONAL GROSS FORECASTS:  $540,000
MYFLIX NET SHARE?  REVENUE FORECASTS T.B.D.

Securities Attorney Opinion: It is legal for HHSE officers to BUY shares on open market

Greetings HHSE Friends & Followers - A combination of factors have created an environment within which the stock pricing for HHSE has been temporarily and artificially lowered through manipulative trading activities. 

Due to the current, absurdly low stock price, HHSE managers reached out this morning to a securities attorney to seek an opinion as to whether it was LEGAL and APPROPRIATE for Parkinson and / or Shefte to PURCHASE HHSE shares off the open market in order to achieve a substantial R.O.I. benefit for their trusts.

Here's a summary of the securities attorney's opinion:

1).  Yes, public company officers are allowed to buy shares on the open market, but these shares immediately become "restricted" from regular resale, as with all other officer owned or controlled Rule 144 shares.

2).  Yes, but if a public company officer buys any shares, these acquisitions or dispositions must be disclosed in a Form 4 filing with the S.E.C. "...before the end of the second business day following the day on which a transaction resulting in a change in beneficial ownership has been executed."

3).  Yes, public company officers can profit from buying shares during artificially manipulated pricing dips, but not if the officers have any involvement with the traders or brokers that have created the artificially low pricing.

4).  Yes, public company officers CAN act on their superior knowledge of a company's operations and activities and make wise investment decisions... PROVIDED... that all of the key elements for motivating an officer's direct purchase of shares are based on publicly disclosed information... in order that no non-affiliate shareholders are impeded from having the same, superior and accurate information about the company.

ACCORDINGLY, and in order to be fully transparent in providing ALL SHAREHOLDERS with the same level of superior, accurate and updated information on all activities for HHSE that is enjoyed by the managers, please note the following key updates:

1).  FORM 10 REGISTRATION activities are well into motion.  HHSE managers believe that the fully reporting status (automatic on 60-days after filing), will positively impact the company's share price and volume.

2).  MAJOR INSTITUTIONAL INVESTORS / FUNDS - HHSE managers have been working with three major investors / fund groups, one of which has already accumulated a position in HHSE.  The other two are restricted from acquiring Pinksheet equities, but have confirmed with HHSE their intentions to acquire significant shares "post registration."  HHSE managers believe that the successful recruitment of these major funds into HHSE will have a very significant and positive impact to the share price, volume and liquidity.

3).  ELIMINATION OF BALANCE SHEET DEBTS - As a component of the Registration filing, HHSE managers have successfully negotiated substantial reductions in debts currently carried on the Balance Sheet (which have been achieved without any new share issuances).  HHSE managers feel that this will improve the optics of the company's liquidity and credibility to outside financiers.

4).  ELIMINATION OF NUISANCE LEGAL MATTERS - The evolution and maturation of the home video business (away from Physical unit sales to streaming), has resulted in some dead-on-arrival DVD releases for HHSE over the past few years... and this has ended up in "nuisance" lawsuits from small producers that have ignored the contractual structure and disputed the applicability of releasing costs.  One recent case, AMITYVILLE ASYLUM, was found in HHSE's favor, and another recent case (XVIII ENTERTAINMENT - four titles), was dismissed.  There are other cases in motion, including Origin Films and Crimson Forest, that HHSE managers and outside counsel are very confident will also be easily won or promptly resolved with no adverse affect to HHSE.  Accordingly, the elimination of these legal matters will also improve the optics and credibility for HHSE,

5).  WIDESPREAD SUPPLIER SUPPORT FOR MYFLIX - Like the opening day for the Oklahoma Land Rush, HHSE is at the starting line with our wagons loaded for a major digital stake into MYFLIX.  The venture already has over 30 significant suppliers, including titles from three major studios, and potentially could be the # 2 streaming site in North America (subordinate only to Amazon.com) in terms of total quantity of features, television episodics, video games and educational programming.  Titles that are currently "only" selling 5,000 DVDs suddenly become VERY PROFITABLE under the Myflix model, as there are no manufacturing or freight costs to dilute the revenue streams.  Titles generating 5,000 TVOD transactions at $1.99 each (about $10,000) doesn't sound like a big deal... until you realize that Myflix now has access to over 10,000 titles and episodics.  The potential revenues to be generated from this new streaming operation dwarfs even the best years ever achieved from the HHSE core activities with physical goods distribution.

6).  TIMING IS IMMINENT:  During the next few weeks, months and all occurring during this current fiscal year, HHSE believes that:  a).  Registration will occur; b).  Myflix will be launched; c).  New "whale" investor funds will begin accumulating shares; d).  The new key-titles distribution pact through SONY and ongoing title releases through CINEDIGM will begin to monetize; e).  The IRS Tax issue -  the principal for which is now fully paid - will result in a formal "release of levy" filing;  f).  Production funding for two "event" level films will be finalized; and, g). HHSE's general credibility and financial position will dramatically increase.

It is for THESE KEY REASONS that HHSE managers have sought an opinion as to the legality and appopriateness for officers, directors and managers to buy HHSE shares off the open market at this time.

HHSE recognizes that there are currently some "bad optics" that the "bad-actor" traders have used to attempt to create fear and uncertainty. We feel the relentless (and false) criticisms against HHSE on stock chat boards by these trading manipulators has contributed to what is currently a "Black Friday" level of buying opportunities for HHSE shares. The motivation of these "bad actors" is to control the stock pricing and try to keep it trading at under $.015 for maximum swing on the "rinse-and-repeat" boxing strategy.  But in doing so, they have taken our stock - which has been predicted by substantial investment funds to be worth ten-cents per share or more by year's end - and created a tremendous buying opportunity.

HHSE managers are seriously contemplating the prospect of buying shares at these current pricing levels, and wish to note to all legitimate shareholders that all of the information otherwise considered "inside" or "beneficial" towards supporting such an opinion, has been reiterated above. HHSE managers have NOT stalled on

the filing of the Form 10, or the resolution of legal matters, in order to fuel this unusual stock pricing opportunity.  If HHSE managers proceed with purchases of HHSE shares off the open market at these current levels, the disclosure requirements of a Form 4 statement will be properly filed with the S.E.C. in a timely manner.

Blog Update for HHSE activities

Greetings HHSE Friends & Followers - Management has been very focused on the build-up and launch of Myflix, plus post-Cannes follow-ups, ongoing theatrical releas activities and the build up of an impressive Q3 and Q4 video release slate through SONY and CINEDIGM (which will transform our physical distribution structure and revenues).  However, there are corporate and legal housekeeping issues of concern or interest to Shareholders.  Accordingly, we are drafting a rather voluminous BLOG to address a variety of issues that Shareholders have presented.  Specifically:

1).  Status of Q1 filings - we have elected to proceed and file the Q1's despite our frustrating inability to receive a detailed ledger from the IRS of funds received against our prior garnishments (which  information - or lack of - directly impact the accuracy of our balance sheet listing of Accounts Receivable).  We have received verification from the IRS that our principal balance of taxes are fully paid - but not a ledger of the starting balance amount and which payments from HHSE and customers were applied to wipe out this principal balance.  Accordingly, the Q1 filing will have this item addressed on a balance sheet footnote.  HHSE is seeking to obtain IRS verification of three payments not currently showing in their system as credits for HHSE, specifically, one Netflix payment, one cashier's check paid in 2015 and an overpayment in 2015 - collectively totaling approximately $82,000 - which would put HHSE well into the "over-payment" category.

2).  Resolution of Nuisance Legal Matters - HHSE has already prevailed in one nuisance producer lawsuit, and is now facing three nearly identical claims which we feel are basic math matters.  We believe that our filings in the next few days will move to oppose or otherwise dismiss inaccurate claims in the UPTONE matter ("Union Bound"), the ORIGIN FILMS matter ("Brian Jaynes films" from 2012) and the Crimson Forest matter (for which HHSE has not yet been served, but we plan to file a response based on the court filing on line - NOTE:  HHSE has just been informed that a process server left a copy of the lawsuit with an office temp while the principals were out of the country at the Cannes Festival - which action does NOT constitute proper, legal service!). The Producer statements issued by HHSE to our various suppliers lists the Gross Shipments, actual net unit sales revenues, less HHSE distribution fee, less HHSE costs, with the remaining balances going to the producer/licensor.  A prior case (AMITYVILLE) attempted to circumvent the structure of the agreements and ignore these contractually agreed costs and product returns.  HHSE ultimately prevailed in that case.  We feel the same contract structure and math will apply to these other current matters - and that these nuisance lawsuits from small titles will no longer be an issue in the future under the new HHSE plan (which concentrates on higher-profile, better selling titles, as well as digital streaming over physical video units as the preferred revenue model).  With our proper and timely responsive filings, none of the current legal matters poses a material threat to the business operations of HHSE or will impede our Registration filing.  It should be noted that once HHSE is fully registered and fully reporting, that the company will be required to make more frequent and detailed disclosure filings for future legal matters if they meet the qualification of having a material impact to the business.  At present, as an OTC Pinksheets equity, all disclosures are fully voluntary or to the standards as required by the OTC Markets listing service.

3).  Status of Form 10-Registration - With Q1 accounts receivable balance to be filed under a footnote as described above, we can complete the audit document package for the PCAOB auditors and submit to them on Monday.  We do not see the auditor as requiring a lengthy process due to the organization of the materials to be submitted.

4).   Prognostications? - The elimination of nuisance lawsuits, the elimination of significant balance sheet debts, and the filing of a registration statement should have a positive impact on the company's credibility, profile and investor confidence.  Add to this mix the launch of what could be the #2 streaming site in North America (in terms of total quantities of programming available), the Myflix venture could be the rocket that propels HHSE to far greater heights than the old model of film distribution even anticipated.  Clearly, the old-model of distributing low-budget films to video is no longer a solid basis for HHSE or any distributor.  Retailers are still willing to put up 25,000 copies of micro-budget films onto their shelves... but with multiple other delivery means and entertainment options, consumers are no longer supporting the purchase of such secondary home video releases (and a majority of shipped units end up as "returns").  The solution?  Only handle higher profile theatrical titles... move physical distribution to outside wholesale partners... and concentrate on the low-cost, high-margin delivery medium accessible through the Myflix streaming venture... a three-pronged strategy for success!

MORE TO FOLLOW>>>

Ongoing Sales Sparks Longer Placement at Barnes & Noble Stores

The re-release of QUIETUS into a new, quality trade-back edition has been a sales success - and as a result, the placement into Barnes & Noble stores has been extended through the summer. In support of this continued retail placement, QUIETUS will be featured in the summer edition of STRAND MAGAZINE (on sale at all USA Barnes and Noble stores).