Dear HHSE Shareholders - in support
of the Form 10 Registration Statement, HHSE has been advised to provide a
more "media-specific" breakdown to the Company's 2013
revenue results; additionally, in support of the Company's
new ventures and financing, we have been advised to provide an analysis /
snapshot of how 2014 is developing into revenues (which includes
management's forecasts for next month's CANNES Film Festival launch of
Medallion International Pictures, and a year-end forecast for this
summer's consumer launch of the VODWIZ streaming service). Management
feels that a combined revenue goal in the $10-mm range is realistic and
obtainable. If earnings margins maintain at the 2010 - 2013 rate, then
such a result would support a share price in the range of $.15 (based on
current P/E ratios for this industry sector).
The Form 10 Registration is being
reviewed and adjusted in order to minimize the likelihood of significant
"comments" back from the Securities & Exchange Commission.
HHSE Management makes no representation, warranty or guarantee that 2014 gross
revenues will continue through the end of this year at the current
rate (which is presently tracking at $10-mm) or that the
stock share price will reflect the industry average price-earnings ratios.
Still, this data is relevant for shareholder analysis, and has been suggested
for inclusion in the Form 10 filing.
* * * * *
| Hannover House, Inc., | |||
| Revenue Snapshot 2013 | |||
| 2013 | 2014 | ||
| REVENUE DESCRIPTION | Results | Analysis | |
| DVD / BD Home Videos | $ 1,007,412 | $ 1,635,000 | |
| V.O.D. Subscription | $ - | $ 430,000 | |
| V.O.D. Transactional | $ 13,993 | $ 27,400 | |
| Book Publishing | $ 109,150 | $ 256,000 | |
| Theatrical Settlements | $ - | $ 80,000 | |
| Misc - IRS Rebate | $ 1,506 | $ - | |
| Audio CD Sales | $ - | $ 1,250,000 | |
| New Title, Intl. Sales | $ 2,000,000 | $ 4,500,000 | |
| Catalog, Intl. Sales | $ - | $ 88,000 | |
| Television Licenses | $ - | $ 125,000 | |
| VODwiz Income | $ - | $ 2,500,000 | |
| GROSS REVENUES | $ 3,132,061 | $ 10,891,400 | |
| Pre-Tax Earnings | $ 1,154,556 | ||
| Margin Percentage | 36.86% | ||