Important HHSE Updates for our current and prospective Shareholders

Greetings HHSE Friends & Followers:  There's a lot of activity in motion, so we will try to be brief in order to cover the most pressing of topics.

1).  OTC-MARKETS UP-LIST STATUS - As mentioned in prior blogs, we have been advised to convert our financial reporting to a "cash" basis as opposed to accrual accounting. This has been done for the most part, but with some revenue exceptions for contractual receivables. Accordingly, futures-payments on contracts (whether in the form of a pre-sale payment guarantee, or an international sale license, or even for "mastering" and on-boarding fees for MYFLIX titles), will NOT be reported in our audited filings as REVENUES, but will be foot-noted as a contract receivable. 

Under G.A.A.P. rules, most businesses do not record a sale as a receivable or revenue until AFTER delivery or shipment of merchandise (or the completion of a services contract for which payment is therefore undeniably due). With respect to MYFLIX mastering receivables, these only become collectible AFTER the launch of the MyFlix site... and international sales only become enforceable after a film  is fully ready for delivery (or has been delivered, and is awaiting payment). It would be misleading to NOT include contract sales in financial footnotes, otherwise, an investor, lender or shareholder would not have an accurate view of the company's activities and financial future. However, for simplicity in having the company's 1120-S Corporate Returns conform to the cash balance sheet reporting for OTC Markets and Edgar, we are hereafter reporting on a CASH basis. The 12-31-2024 filings (posting  tomorrow) will include both the accrual accounting year-end, and a separate balance sheet showing how these results will look under a fully Cash-Basis accounting. SUNDAY NIGHT UPDATE: HHSE was just advised that the 12-31-2024 report being filed tomorrow with the OTC Markets should ONLY show the existing format of financial reporting that HHSE has been following for years (e.g., a mix of cash reporting and accrual for contracted sales). To also include a "cash only basis" balance sheet and financials may be confusing to shareholders and may violate the OTC rules, possibly resulting in the year-end report being declared deficient. Rather than risk that outcome, we will refrain from posting the cash-only basis financials until we file the OTC Markets Up-list (and audit letter) in April.

Timing wise, we will release the OTC Markets up-list application as soon as we receive the final blessing from auditors that our cash-basis adjustments (and all necessary back up) have been properly itemized and confirmed. There are some remaining costs for the completion of this process, and multiple means are being pursued. 

2).  TRUMP BOOK - At the request of Barr McClellan, Hannover House delayed and rescheduled the release of his book (AMERICAN MANIFESTO) in order to enable Barr to include new information about the inauguration and the first 100-days of the second Trump Presidency. Hannover House has received delivery of the modified and updated manuscript and will be releasing the E-BOOK version in April and the hard-cover edition in June. The launch of the E-BOOK also triggers some very high profile television news appearances for both Barr McClellan and HHSE CEO Eric Parkinson - which should have a dramatic impact on sales of both formats.

3).  WILDFIRE - Full delivery has been completed for master elements and documents regarding a major studio partnership for the release of this film... stand by for this significant news... which is positively impactful not only due to the prestige of a studio partner on HHSE's first major production... but also due to the significant upfront licensing fee.

4).  UNHOLY SONG - The film continues to please audiences as its limited theatrical release rolls out... including two sold-out shows in Stockton, CA this weekend, and upcoming theatrical runs for LOS ANGELES and NEW YORK. The film will hit streaming services in June and DVD and Blu-Ray formats in August. Due to the size differential of a video package as compared to a full one-sheet theatrical poster, the DVD and Blu-Ray packaging will feature the "Witch in Flames" concept... as opposed to the smoking tape recorder that is seen on the film's theatrical poster.  We are very excited to have contracted with FANGORIA for a major promotion in support of the STREAMING launch of UNHOLY SONG in June. The Fangoria support includes a feature story, a "website take over" (e.g., top banner and side ads), a color ad in the print edition of the magazine (at newsstands and Barnes & Noble Stores) and two outbound email blasts to subscribers and opt-in mailing list members. Collectively, the Fangoria support promises to deliver 3-million consumer impressions... most of which will have a HOT-LINK to the TUBI page for the film (HHSE gets paid EVERY TIME someone watches a film on TUBI).

One of the most successful elements of the UNHOLY SONG Marketing Campaign has been the production and distribution of the "COMIC BOOKS." Thousands of copies of these have been placed in theatre lobbies for up to four weeks prior to the film's opening at that location... and the cliff-hanger ending has fueled audience interest to see how it ends. From the data of results vs. locations without the comic books, the costs to design, print and distribute the comic books delivers a lower "per impression" cost - and more effective conversion rate - than any other major (and directly measurable) form of media outreach. This is superior and creative marketing on a shoe-string budget!

L.A. Major Studio meetings for projects - including WILDFIRE Distribution

Greetings HHSE Friends - We tried to keep this confidential, but HHSE C.E.O. Eric Parkinson was spotted at several high-end meetings in L.A. this past week... and it's best to address his visit to L.A. rather than feed a misinformed rumor mill. 

HHSE was invited to travel to L.A. for meetings with two major studios, but both under strict Non-Disclosure Agreements (NDA) so we can only elaborate to a limited degree. 

One of the ventures involves an "exclusive" streaming license to a major studio for the WILDFIRE movie. The other venture is a covering a worldwide distribution venture for a major feature film production for HHSE that has not yet been disclosed. 

We have seen the benefits of NOT disclosing major ventures until they are completed - as issues on complex business matters sometimes affect dates and details. Rather than update as details change, we have found that it's best to hold the news after-the-fact and catch the trading market by surprise. 

In an unrelated matter, Parkinson was given a V.I.P. advance tour of the new $50+ million Post Production Studio and 8K LED Screening Room built for Jeff Bezos / Amazon-MGM. This stunning facility features the world's only 8k LED Theatre screen - with an unsurpassed contrast ratio - and a next-gen Dolby ATMOS sound system. The plan is to make going to the movies something that cannot be replicated in a home viewing environment... and this new visual and sound experience certainly fulfills that mission!

Stay Tuned for VERY EXCITING news for HHSE from the results of these L.A. meetings!

An overview of How the SMART distributors are MAKING MONEY in the Film Distribution Business

Greetings HHSE Friends & Followers - I was surprised to get some emails on Saturday from some HHSE shareholders that were lamenting that the 20-theatre opening weekend launch for UNHOLY SONG "only grossed $7,000" on the opening day.  

Well, let me clarify several key issues that may have NOT been clearly communicated in our prior blogs.

1).  BOX OFFICE RESULTS ARE IRRELEVANT TO OUR MARKETING GOAL - Our mission has been to enhance the visibility and awareness of the property... so if it sells some tickets, GREAT, but that was not the goal of a limited theatrical release. The point was to ENHANCE THE PROFILE of the movie so that it will be eligible for PRIORITY PLACEMENT onto TUBI, ROKU and AMAZON - all of which have a "theatrical release" preference for creating priority placements. THE MONEY IN THIS INDUSTRY IS BEING MADE VIA STREAMING SERVICES - not via Theatrical (unless you have a mega budget hit). When was the last time you went to a movie theatre... versus... the last time you STREAMED something to your home?

2).  WHILE $7,000 grosses on a FRIDAY might sound small... it indicates that the film will likely hit $20,000 this weekend WHICH IS WHAT WE SPENT IN THEATRICAL MARKETING. So in only three days, we GROSS back the total P&A expenditure... PLUS we have now enhanced the credibility of the movie for PRIORITY V.O.D. support.  NOT THAT IT MATTERS... but our "Per Screen" average on Friday of $355 makes the movie the NUMBER SEVEN best seller of tickets per location out of ALL Movies!!  We will PROBABLY end up with about $1,000 "per screen" average... and likely in the TOP TEN on this per-screen basis. 

3).  BECAUSE OF THE THEATRICAL RELEASE - this title is now eligible for DVD and Blu-Ray sales at WALMART, TARGET and BEST BUY.  These major retailers have found that INDIE films in key genre's WILL SELL WELL in pre-recorded, packaged goods formats... and we have now MET that condition (FYI, the genre's are HORROR, FAMILY, and CHRISTIAN appeal movies).

4).  WE HAD THE OPPORTUNITY TO LAUNCH ON 300+ Screens - but decided that this would not be as ASSURED of a good return-on-investment. You see, 300 screens would cost the company about $250,000 in total costs... but would NOT generate a 10-X greater return from streaming than our initial launch with 20 screens (and a few more locations for UNHOLY SONG during March). 

TWENTY theatres and $20k in launch costs is the SWEET SPOT to maximize R.O.I.  Frankly, there's a mathematical argument AGAINST opening any film on 300 screens... because this level or release adds huge costs but is not a wide-enough release to cross the critical mass into a top ten that consumers will "want to see" sort of movie release.

Those in-the-know regarding streaming recognize that HOME PAGE or PRIORITY placement with TUBI, ROKU and AMAZON streaming services will make the difference between a title generating $50,000 in V.O.D.... and those titles that go on to generate more than $500,000 from streaming.

The theatrical launch of UNHOLY SONG was designed to make the film eligible for PRIORITY SUPPORT FOR V.O.D. and for Physical Goods (DVD and BluRay).  The money invested by HHSE has been well-thought out, frugally spent, and delivers an assured R.O.I.

Why are we doing this limited theatrical release RIGHT NOW? Because we also have the OTC QB UPLIST, the Studio Partner deal with WILDFIRE, the $22-mm funding for TEMPUS PORTA and several other "yet to be announced" projects that combine to elevate HHSE to the next level. 

UNHOLY SONG having a handful of theatres is a smart step to enhance the film's profile and become a part of a well-planned strategy to make HHSE into a respected indie studio (and towards our goal of a $.25/PPS stock). 

Those that ACTUALLY KNOW and work in this business, will see that we have hit a solid base-hit with UNHOLY SONG, on our way to winning the world series... just watch, it's all happening NOW>>>>>

Almost ANY movie can be placed onto TUBI and ROKU... but the financial winners are those that have HOME PAGE or CATEGORY PAGE priority listings. How do you get that? One way only: theatrical release exposure.

What better way - and what better spokesperson - than to have HHSE CEO Eric Parkinson promoting the company and releases like UNHOLY SONG at national media events (such as the SATURN AWARDS), and on local market media, such as KNWA (Fayetteville) and FoxNews10 Sacramento? These media appearances cost HHSE $0 dollars, which is a refreshing change to some of the company's prior experiences (e.g., paying an actress $20,000 to appear on THE TONIGHT SHOW, plus another $5,000 "wardrobe allowance" and $5,000 for hair-and-make-up entourage and private SUV Sedan car service... ugh!!).

HERE ARE SOME MORE REVIEW LINKS for "UNHOLY SONG"

I-HORROR.com

https://ihorror.com/indie-horror-unholy-song-gets-an-a-for-effort-review/

PRETTY  PARANORMAL  SITE

https://open.spotify.com/episode/1vwXtmOCGcQ7WWhx921eWP

KEY MARKETS for INITIAL LAUNCH:

San Francisco - Bay Area

Sacramento-Modesto-Stockton DMA

Nashville DMA

Las Vegas DMA

Kansas City DMA

Memphis DMA

Tulsa DMA

N.W. Arkansas DMA

More exciting BOX OFFICE news from Hannover House - HHSE

Greetings HHSE Friends - although we are still under a news announcement quarantine about our MAJOR STREAMING VENTURE on "WILDFIRE" - we have been granted permission to pursue a THEATRICAL RELEASE for the film in April. Below is a full-page ad for BOX OFFICE Magazine (March-April) that will also have bonus circulation at the CINEMACON 2025 Show in Las Vegas (March 31 - April 3).  

Hannover House will be present at Cinemacon - with meetings set for the major exhibitors, as well as sneak-peek teasers on the epic and transformative major production of TEMPUS PORTA.  Just the big-stuff folks!

In other theatrical news, UNHOLY SONG launches this weekend in advance of a key market expansion on March 14.  Hannover House is positioning the film to create momentum and to maximize our streaming revenues (starting in May). International sales of UNHOLY SONG will be posted to the company's Q1 and Q2 reports, but are already sufficient to self-finance the company's decision to "greenlight" the production of UNHOLY SONG 2 to film this summer in Northern California. This is our development of a franchise IP, like "TERRIFIER" for HHSE to control. Just imagine the cash flows when this indie-horror property hits streaming!

Ain't no TALK, folks. This a DELIVERING real results and real REVENUES!

Social Media Ads Launch THIS WEEKEND with Theatre Chains, FaceBook and Instagram for UNHOLY SONG

Greetings HHSE Friends & Followers - with just a week to go for the initial theatrical launch of UNHOLY SONG, we are kicking off a Social Media campaign -including theatre-specific BANNER ADS and POSTS such as those pictured below.  

Our UNHOLY SONG 60-second trailer has been viewed over 12-million times across a variety of platforms, publications and sites... and these new BANNER ADS should make about 3-million impressions in the next 8-days... 

All of these actions to create market visibility and awareness will pay off for HHSE as we move into the lucrative V.O.D. market... as well as commence with International Deliveries and the production of UNHOLY SONG 2.  Much more to come!

Hannover House - Status Update for Shareholders

Greetings HHSE Friends & Followers - So many exciting things in motion at this time!  As requested by some HHSE Longs - here's a quick recap of key items and projects:

1).  TRUMP BOOK - Author Barr McClellan asked to add new material in order to cover the historic Inaugural week, plus "Promises Made, Promises Kept" (delivery on campaign pledges), as well as a recap summary chapter called "American Manifesto." These changes and additions will enhance the newsworthiness and shelf-life of the book - elevating it to a more lasting historical record. There will be about a 3-week delay in both the e-book and hardcover editions.... but in the scope of long-term values, we felt that this was a modest delay for a longer-term gain. Meanwhile PRESALES are ASTOUNDING!

   

2).  UNHOLY SONG - This is turning into a MAJOR SURPRISE HIT for HHSE. This low-budget horror thriller is the first title under our newly resurrected "releasing brand" of HEMDALE (the multi-Oscar winning indie studio where Hannover House CEO Eric Parkinson was previously CEO). The teaser trailer has already generated over 7-million total views (mostly via "X" posts and boosted ads) - which is a terrific sign of consumer interest. The film opens in theatres Feb. 28. FOR THE FIRST TIME EVER for a Hannover House release, Fandango and Rotten Tomatoes have ALREADY launched the title page... a full four weeks prior to the film's release! Watch for some jaw-dropping PUBLICITY over the next few weeks... we won't tell you what to watch for in advance.. we'll just SHOW YOU with the photos and video links!

 

   

3).  HHSE UPLIST - At long last, we are filing the application to uplist to the OTC: QB.  Our plan to do this in January was not met, but our commitment remains. There have been some issues to resolve including the refiling of some prior years 1120 corporate tax returns. But we are close to completion, and look forward to the days in which high-volume traders will step-up to support the HHSE stock growth.

4).  WILDFIRE - As stated last week, the final theatrical mixing and mastering was completed in Los Angeles... and the film is presently in "delivery mode" to turn this asset into positive cash flow. Some HHSE Longs asked for an explanation of how a Special Purpose Entity such as SNOWY MORNING, INC. is related to a parent organization such as HHSE - and how the transference and capitalization of the balance sheet asset works? We realize that none of our HHSE shareholders (and none of the chat-room posters) have ever actually produced a movie, so this logistics question is understandably an unknown to non-industry professionals. But every major studio and distributor involved in feature productions uses "SPE" Special Purpose Entities for the physical production of features. This is an important step for both signatory status to guilds, as well as for arm's-length protection of the affiliate studio from any liens or liabilities that sometimes occur with feature productions. Once a film is completed and cleared, the asset is moved to the studio owner / distributor. 

5).  OTHER BIG STUFF - We are preparing for the production shoot of INDIAN TERRITORY - as well as in Pre-Production (in Malta) with TEMPUS PORTA, and a privately funded Native American comedy, HARD TIMES IN T-TOWN. The company is also "almost" finished with the production of NATIVE FABLES - and will have this fully ready in May for the CANNES FILM FESTIVAL (including one of the segments in the short-film showcase competition!). 

Last but not least... the MYFLIX Streaming Service is positioned to LAUNCH... we have been awaiting FINANCIAL RESOURCES to assure a success. With deliveries now commencing for WILDFIRE - as well as TRUMP book presales strong and ticket demand for UNHOLY SONG strong - we feel the company will be well-positioned to self-finance the MYFLIX launch in the coming months!

 

 

More Positive Achievements for HHSE Production Activities

Greetings HHSE Friends - This was another productive week for Hannover House in terms of completing important assets for the company's library, balance sheet and revenue-generating tools.

The long-awaited "WILDFIRE" Movie was finally completed in Los Angeles with the theatrical 7.1-surround Stereo mix of the feature, and some mastering issues to conform to German (and other) broadcast standards.  A "work-in-progress" screening for the film was held in Nov. 2023 at the Lone Star Film Festival. However, the issues of music edit, sound mix, color corrections and some VFX / CGI visuals were not completed at that time. These are now all done... and this frees up HHSE to begin deliveries (CASH FLOW!!!), as well as to reinstate the prior promotions set-up for the USA Theatrical release of the film.

Overall, WILDFIRE will add about $700,000 in hard-cash investments to the Hannover House balance sheet. It is expected to add about $2-mm in revenues as well... which would elevate it to the top title currently in the HHSE Film & Television Library assets list. 

WE DID IT TEAM! "Got 'er done" - and now this asset will generate income for HHSE for 50+ years! 

More information on sales and release activities to follow....