This has been an AMAZING month at HHSE for so many reasons:
a). NEW RELEASE DVD SHIPMENTS: For the first time ever, HHSE has manufactured and shipped initial title quantities of FOUR (4) new release titles in a single month! AMERICAN JUSTICE, POSSESSION WITHIN, SPRING BREAK MURDERS and VALLEY OF THE WITCH are all shipping out NOW to retailers and wholesalers. In addition, FATHERS OF THE SPORT has shipped for the Walmart Budget Bins (yowsa!) and replenishment orders shipped for five popular selling catalog DVD items to a variety of retail and wholesale accounts.
b). NEW STAFF FOR EXPANDED ACTIVITIES: Five new employees are in action at HHSE, which dramatically enhances the company's ability to respond quickly to opportunities and to fulfill operational activities. Support from new employees handling Accounting, IR-PR, Production Management, Sales Admin and Webmaster positions will enable HHSE managers to get the big-important stuff "done" without distraction or delay.
c). BIG THEATRICAL SCHEDULE: To enhance the company's consumer profile and market credibility, HHSE is releasing several titles to theatres beginning Q4, including "ON ANY SUNDAY: THE NEXT CHAPTER", "BONOBOS", "THE WEATHER STATION", "BORRAR DE LA MEMORIA" and a couple of 'surprise' acquisitions for release to theatres in Q1 (2015). The work to get these movies marketed and released is happening NOW!
d). OTHER DVD / BLU-RAY SLATE: Over 25 additional titles are "in queue" for release during Q4 and Q1, and the preparation work for those is also now underway. Talk about a HUGE revenue spike in process!
e). VODWIZ ON-BOARDING and CONSUMER LAUNCH: "Be careful of what you wish for," as enormous opportunities require enormous effort. With each movie being added to the site, HHSE and our supplier partner studios (as well as our VODwiz site-operational partner, Nanotech Entertainment) must put together very specifically formatted masters, and a tonnage of meta-data in a consistently structured database. It's a Herculean task to get the train rolling... but watch what happens when this new venture is up to full speed. "Scary-Exciting" is the term that HHSE C.E.O. Eric Parkinson used in yesterday's staff meeting, the likes of which he has not experienced since the release of Terminator 2 (and the simultaneous re-release of Terminator 1 - both of which simultaneously hit #1 in their respective sales categories).
f). PRODUCTIONS: Holy smokes, the status update on each production alone requires a lengthy blog! But news on each key production venture will be released as deemed appropriate.
And there's more (not the least of which is the work that Regina and Daniel are conducting for the audit portion of our Form 10 filings). But put it all together and you've got an AMAZING MONTH for Hannover House!
Wednesday, August 27, 2014
Monday, August 25, 2014
New Investor Relations Manager - in house at HHSE
Dear HHSE Friends & Shareholders - as mentioned in our blog of new staff additions (four of whom started working today!), we're pleased to also announce the addition of an in-house Investor and Media Relations manager at Hannover House. Effective immediately, the direct email for this employee is: IR-PR@HannoverHouse.com.
Per our employment agreement, we have agreed to add this individual to our Officers & Employees Liability Policy, the application for which was filed last Thursday. We anticipate a more specific announcement imminently (actually, we expected our additionally-named certificate today!), and will provide a name and photo at that time. Meanwhile, questions of a public-nature can be sent to his attention at the above address, or copied as well to Eric@HannoverHouse.com.
Per our employment agreement, we have agreed to add this individual to our Officers & Employees Liability Policy, the application for which was filed last Thursday. We anticipate a more specific announcement imminently (actually, we expected our additionally-named certificate today!), and will provide a name and photo at that time. Meanwhile, questions of a public-nature can be sent to his attention at the above address, or copied as well to Eric@HannoverHouse.com.
YES! Two more BLU-RAY Placements for HHSE!
For many key accounts - including Walmart and Best Buy - sales of BluRay format movies is right about 25% of the total "units" as compared to DVDs. However, with the higher wholesale and retail prices, Blu-Ray is approaching 32% of gross revenues. So it's ALWAYS EXCITING to get a Hannover House title placed in Blu-Ray... but today's news is that we have TWO new titles earning shelf spots! "AMERICAN JUSTICE" and "SPRING BREAK MURDERS" will hit shelves at Walmart and Best Buy in both DVD and BluRay formats, so it's like having 32% MORE revenues for those items. GO GO GO HHSE!
Friday, August 22, 2014
Those HHSE guys seem crazy busy!
Yeah, the energy here is amazing... but don't count on getting instant access by phones or email for any random outreaches to the HHSE management for the next week or so!
In addition to the crazy-workload of finalizing masters for VODwiz uploads (and the complexity of the new venture announcement and consumer launch campaign next Saturday!), HHSE is also juggling a lot of other activities. There's the current production of the SHADOW VISION feature, the pre-production work on MOTHER GOOSE, BELLE STARR and CLOWN TOWN, the video productions of DINOSAURS and SOCCER, and all of the theatrical release activities for ON ANY SUNDAY, BLACK-EYED DOG, WEATHER STATION, ASALTO AL CINE, WIDE BLUE YONDER and BORRAR DE LA MEMORIA (whew!).
On top of all that, Daniel and Regina are triple-checking the 2012 and 2013 audit packages... and our technical services suppliers are handling the day-to-day "pre-release" work to create DVD and Blu-Ray art layouts and authored elements for 25+ titles in our short-term pipeline (below). That in itself is a massive endeavor! Thankfully, HHSE has four new staffers starting on Monday!
So this is the busiest period in our company history... but we think that the steps we're taking to complete the Form 10, to launch VODwiz, to expand our theatrical slate and to release a ton of new titles to DVD, Blu-Ray and V.O.D. is well worth the effort. In short time, the results of these actions will be evident to a broader base of shareholders and investment funds, and those smart and patient longs will enjoy the results of all of this activity.
Thanks for your support of HHSE as we've enhanced (and expanded) our business model to generate greater revenues and results for our shareholders!
Onward...!
CURRENT VIDEO ART & AUTHORING
In addition to the crazy-workload of finalizing masters for VODwiz uploads (and the complexity of the new venture announcement and consumer launch campaign next Saturday!), HHSE is also juggling a lot of other activities. There's the current production of the SHADOW VISION feature, the pre-production work on MOTHER GOOSE, BELLE STARR and CLOWN TOWN, the video productions of DINOSAURS and SOCCER, and all of the theatrical release activities for ON ANY SUNDAY, BLACK-EYED DOG, WEATHER STATION, ASALTO AL CINE, WIDE BLUE YONDER and BORRAR DE LA MEMORIA (whew!).
On top of all that, Daniel and Regina are triple-checking the 2012 and 2013 audit packages... and our technical services suppliers are handling the day-to-day "pre-release" work to create DVD and Blu-Ray art layouts and authored elements for 25+ titles in our short-term pipeline (below). That in itself is a massive endeavor! Thankfully, HHSE has four new staffers starting on Monday!
So this is the busiest period in our company history... but we think that the steps we're taking to complete the Form 10, to launch VODwiz, to expand our theatrical slate and to release a ton of new titles to DVD, Blu-Ray and V.O.D. is well worth the effort. In short time, the results of these actions will be evident to a broader base of shareholders and investment funds, and those smart and patient longs will enjoy the results of all of this activity.
Thanks for your support of HHSE as we've enhanced (and expanded) our business model to generate greater revenues and results for our shareholders!
Onward...!
CURRENT VIDEO ART & AUTHORING
BLACK EYED DOG |
BOBBY DOGS |
BONOBOS |
BURIED ALIVE |
CHAMPIONSHIP SOCCER |
DINOSAURS OF THE JURASSIC |
FAMILY MOVIE NIGHT |
FRANKENSTEIN: DAY OF THE BEAST |
GABRIELLE |
GRIM |
ILLUMINATI |
MAFIA MAN |
NEXT UP: COMEDY FROM SUNSET STRIP |
ON ANY SUNDAY: THE NEXT CHAPTER |
PAPPA CAP URBAN SIX PACK |
POSSESSION WITHIN |
REACH |
SPRING BREAK MURDERS |
SUNSHINE |
THE HONEYMOON |
THE LION PRINCE |
THEATRE OF FEAR – MIDNIGHT HORROR SHOW |
VALLEY OF THE WITCH |
VATOS LOCOS |
WIDE BLUE YONDER |
Thursday, August 21, 2014
SNAP! Another HHSE Title is Now Shipping to Retailers!
Shipments began today for director Andrew North's impressive and intense Welsh-thriller, "VALLEY OF THE WITCH." This title streets in Canada next Month, and will appear in USA retailers in November. Earlier this week, Hannover House began shipments of "POSSESSION: THE INGLODA WITHIN." Exciting new release activity under the direction of HHSE's recently hired VP of Sales, TOM SIMS, and our enhanced in-house support staff. Much more to come!
Wednesday, August 20, 2014
HHSE Welcomes New Staffers to our Team!
Good morning HHSE Friends & Shareholders! Lots of exciting activities at Hannover House require an enhanced and specialized support staff and team. Accordingly, we are pleased to announce the following new Hannover House employees, all of whom will be working out of the company's principal headquarters offices in Arkansas:
REGINA HURST - Accounting Compliance Manager - Regina's accounting and bookkeeping background will help HHSE stay current on statements and audit-compliant reports
CAITLIN MCKENZIE - Sales & Marketing Administration - Caitlin has demonstrated a wide range of skills, from creative writing and direct communications to organizational and data management.
MITSI MCKEE - Webmaster - As the need for updates on the HHSE site grows, as well as need for an in-house coordinator for VODwiz technical activities, a skilled webmaster like Mitsi is welcomed.
KATHERINE MILLS - Production Manager - Katherine will coordinate production activities with directors, producers and outside entities that are providing the higher-profile titles to HHSE.
WE WELCOME THESE NEW TEAM MEMBERS, AND LOOK FORWARD TO EXCITING TIMES AS WE IMPLEMENT THE HHSE PLAN!
REGINA HURST - Accounting Compliance Manager - Regina's accounting and bookkeeping background will help HHSE stay current on statements and audit-compliant reports
CAITLIN MCKENZIE - Sales & Marketing Administration - Caitlin has demonstrated a wide range of skills, from creative writing and direct communications to organizational and data management.
MITSI MCKEE - Webmaster - As the need for updates on the HHSE site grows, as well as need for an in-house coordinator for VODwiz technical activities, a skilled webmaster like Mitsi is welcomed.
KATHERINE MILLS - Production Manager - Katherine will coordinate production activities with directors, producers and outside entities that are providing the higher-profile titles to HHSE.
WE WELCOME THESE NEW TEAM MEMBERS, AND LOOK FORWARD TO EXCITING TIMES AS WE IMPLEMENT THE HHSE PLAN!
S.E.C. Edgar Database - Periodic Filings
Good Morning HHSE Friends & Shareholders - Apparently, yesterday's press release about Q2 earnings - which also addressed the artificial manipulation that has temporarily depressed the HHSE share price - touched a "nerve" with the smear-fear gang. While they had been laughing about their promise to "close the stock under a penny" the day before, yesterday's start of a PPS price correction rebound was the first punch back against their "smear-fear" strategy.
One of our legitimate shareholders sent a blog post to HHSE yesterday from "the leader of the smear-fear" in which the poster was trying to say that the low HHSE share price was due to malfeasance of management (?!!?), and no mention was made of the multiple "paint-down" fake sales that this same trader has used!
Are we supposed to believe that a LEGITIMATE representation of the HHSE share value is represented by a trader that sell TWELVE (yes, "12") shares to a bid that's 15% below the next lowest ask price? How much is that worth, about 15-cents? How much was the brokerage fee on that trade, maybe $7.99? These tiny "paint-down" orders make NO SENSE from a business standpoint, unless your agenda is to ARTIFICIALLY DEPRESS the perceived stock price in order to manipulate shareholder earnings and trades. There is NO OTHER possible explanation for why someone would purposely LOSE money on a tiny trade, except to paint an artificial price for the equity.
Needless to say, HHSE is working closely with two investigators of the FBI white collar crimes unit, as well as the U.S. Attorney's office. Every single stock transaction for HHSE is being watched, tracked and recorded. Some of these "clever" manipulators are using the "accounts of friends" to try to mask their HHSE trading manipulations... which (unfortunately for them), is further evidencing the deliberate conspiracy to hide the manipulation. Maybe such shenanigans are acceptable in places like, for instance, South Pasadena... but they are not making it past the folks in D.C. that HHSE is working with.
SO WHAT'S HAPPENING TODAY?? There is a "full-out-assault" by the smear-fear-gang to TRY TO SCARE SHAREHOLDERS into selling and pushing the stock back below a penny. THEY ARE DESPERATE TO STOP the PPS rebound recovery! However - and this is the best part - in making today's new posts (and recruiting new "alias posts") they are giving the investigators significant new data and NEW conspirators to flip this into prosecutorial steps!
Anyway - HHSE was asked to comment on S.E.C. Edgar filings.
Back in late 2012, HHSE applied to the S.E.C. for a Edgar access. This initiated a lengthy series of calls and emails with various members of the S.E.C. office in Washington. Ultimately, and as previously blogged, the company was granted access to file periodic reports. However, our ability to file all formats of documents as a "full reporting status" company is limited until we file a Form 10 Registration Statement. We applied for an "exception" to the 2-years of audits rule, and ultimately lost that appeal because the company has been operating for 20-years. As a side note, "No" the company is not a coffee shop, not a trailer park and not a Post Box facility as the same smear-fear gang would like shareholders to believe. Reality has NOTHING to do with their insane efforts to "poop-and-scoop" shares on the cheap... then ride the price back up and then (and this is their own phrase), "Rinse and Repeat."
There's also more baloney about HHSE being a "Shell" company, which is more nonsense. Taking a line out of context from a 10+ year old filing (in which the same document contradicts the line!), is part of the confusion strategy that these posters hope to use to breed fear. Multiple attorneys have reviewed the company's corporate history and filings - and addressed ambiguities and inconsistencies in some of the older filings. All of them have given TDGI / HHSE a clean bill of health. One of the most thorough historic and forensic examinations was conducted by FINRA when the company filed for a name and ticker change. That case was closed.
They are desperate - and as they say, "desperate people do desperate things." I hope that our Longs will join forces to CRUSH these guys the only way we can: to pressure them to get the hell away from HHSE by proving that their scare tactics will NOT work on our longs, and to take their school-yard BULLY strategy to the company's out there that have NOT been operating for 20+ years and who do NOT have established product lines and clearly functional businesses.
Meanwhile - we welcome the smear-fear-gang (any member is fine) to do their best to contact the S.E.C. and ask them about the HHSE applications and communications regarding the filing of periodic reports. Maybe the S.E.C. will want to know the identity and motivations of persons making such absurd threats? It's time to get REAL and time to HIT these smear-fear manipulators where it HURTS them the most... the PPS for HHSE should be allowed to recover and rebound.
One of our legitimate shareholders sent a blog post to HHSE yesterday from "the leader of the smear-fear" in which the poster was trying to say that the low HHSE share price was due to malfeasance of management (?!!?), and no mention was made of the multiple "paint-down" fake sales that this same trader has used!
Are we supposed to believe that a LEGITIMATE representation of the HHSE share value is represented by a trader that sell TWELVE (yes, "12") shares to a bid that's 15% below the next lowest ask price? How much is that worth, about 15-cents? How much was the brokerage fee on that trade, maybe $7.99? These tiny "paint-down" orders make NO SENSE from a business standpoint, unless your agenda is to ARTIFICIALLY DEPRESS the perceived stock price in order to manipulate shareholder earnings and trades. There is NO OTHER possible explanation for why someone would purposely LOSE money on a tiny trade, except to paint an artificial price for the equity.
Needless to say, HHSE is working closely with two investigators of the FBI white collar crimes unit, as well as the U.S. Attorney's office. Every single stock transaction for HHSE is being watched, tracked and recorded. Some of these "clever" manipulators are using the "accounts of friends" to try to mask their HHSE trading manipulations... which (unfortunately for them), is further evidencing the deliberate conspiracy to hide the manipulation. Maybe such shenanigans are acceptable in places like, for instance, South Pasadena... but they are not making it past the folks in D.C. that HHSE is working with.
SO WHAT'S HAPPENING TODAY?? There is a "full-out-assault" by the smear-fear-gang to TRY TO SCARE SHAREHOLDERS into selling and pushing the stock back below a penny. THEY ARE DESPERATE TO STOP the PPS rebound recovery! However - and this is the best part - in making today's new posts (and recruiting new "alias posts") they are giving the investigators significant new data and NEW conspirators to flip this into prosecutorial steps!
Anyway - HHSE was asked to comment on S.E.C. Edgar filings.
Back in late 2012, HHSE applied to the S.E.C. for a Edgar access. This initiated a lengthy series of calls and emails with various members of the S.E.C. office in Washington. Ultimately, and as previously blogged, the company was granted access to file periodic reports. However, our ability to file all formats of documents as a "full reporting status" company is limited until we file a Form 10 Registration Statement. We applied for an "exception" to the 2-years of audits rule, and ultimately lost that appeal because the company has been operating for 20-years. As a side note, "No" the company is not a coffee shop, not a trailer park and not a Post Box facility as the same smear-fear gang would like shareholders to believe. Reality has NOTHING to do with their insane efforts to "poop-and-scoop" shares on the cheap... then ride the price back up and then (and this is their own phrase), "Rinse and Repeat."
There's also more baloney about HHSE being a "Shell" company, which is more nonsense. Taking a line out of context from a 10+ year old filing (in which the same document contradicts the line!), is part of the confusion strategy that these posters hope to use to breed fear. Multiple attorneys have reviewed the company's corporate history and filings - and addressed ambiguities and inconsistencies in some of the older filings. All of them have given TDGI / HHSE a clean bill of health. One of the most thorough historic and forensic examinations was conducted by FINRA when the company filed for a name and ticker change. That case was closed.
They are desperate - and as they say, "desperate people do desperate things." I hope that our Longs will join forces to CRUSH these guys the only way we can: to pressure them to get the hell away from HHSE by proving that their scare tactics will NOT work on our longs, and to take their school-yard BULLY strategy to the company's out there that have NOT been operating for 20+ years and who do NOT have established product lines and clearly functional businesses.
Meanwhile - we welcome the smear-fear-gang (any member is fine) to do their best to contact the S.E.C. and ask them about the HHSE applications and communications regarding the filing of periodic reports. Maybe the S.E.C. will want to know the identity and motivations of persons making such absurd threats? It's time to get REAL and time to HIT these smear-fear manipulators where it HURTS them the most... the PPS for HHSE should be allowed to recover and rebound.
Monday, August 18, 2014
NOW SHIPPING! Non-stop action with "AMERICAN JUSTICE"!
Greetings HHSE Friends & Shareholders - Hannover House is BLASTING into Q3 and Q4 beginning with today's initial DVD and Blu-Ray shipments of "AMERICAN JUSTICE." This impressive action-adventure features a powerful cast of proven video stars, including TOMMY "TINY" LISTER ("Next Friday"), JOHN SCHNEIDER ("Smallville"), JAMES RUSSO ("Djano Unchained"), VIDA GUERRA ("Dorm Daze 2") and JOHNNY "NITRO" HENIGAN (WWE Wrestling superstar). Walmart CANADA streets in September, Walmart USA (and Redbox) street in December... This is the first of nine acquisitions that were made at the Cannes Film Festival in May to hit the retail market from Hannover House.
STORYLINE: A lone, black man stands against a corrupt small town police force that uses strong-armed, military-style tactics to suppress the rights of citizens.
Sound timely to you??
STORYLINE: A lone, black man stands against a corrupt small town police force that uses strong-armed, military-style tactics to suppress the rights of citizens.
Sound timely to you??
Sunday, August 17, 2014
HHSE Q2 Results to SEC Edgar & OTC Markets
Greetings HHSE Friends - Happy Sunday to you. First of all, let us apologize for erroneously uploading a draft-in-progress of the Q2 report late Friday evening. The file extension names were identical (except for the final time-stamp), and an incomplete draft of the Q2 report was posted on the OTC site for all of Saturday and most of Sunday. Fortunately, the correct version (which we confirmed WAS received by the S.E.C. Edgar Database, for publication tomorrow), was also published onto the OTC Markets this afternoon. So with the markets closed during the time that the incomplete draft was posted, no one would have been damaged by trades by relying upon the wrong draft. Apologies, it was an innocent mistake.
Next, let us address some of the key issues that the Q2 filings present.
1). INTERNATIONAL SALES - HHSE has been advised that we should defer posting revenues from international presales for projects that are:
a). Not 100% funded; and,
b). Not already in production;
Contrary to some chat board comments, having a "completion bond" is not a requirement for posting revenues for productions (however, in most cases, a completion bond is a requirement for traditional bank financing of productions). Accordingly, we are NOT recognizing any new international presale activities, and only reporting co-production revenues for two, fully funded (and "in production" features). The biggest title in queue to impact our revenues is "MOTHER GOOSE" which we hope will be fully funded in the next few months.
2). VODWIZ Revenues - HHSE is charging our producer-clients for staff time and materials relating to creating metadata files and master dubs for each title. The revenues in Q2 from VODwiz are related to this service, and not to consumer transactions. The consumer campaign is being launched at the end of August, so "consumer" revenues are expected to show for our Q3 report (period ending Sept. 30, 2014).
3). CORE VIDEO ACTIVITIES - Our Q2 for direct-to-video was down in Q2, which can be attributed entirely to street date delays on "SPRING BREAK MURDERS" and "POSSESSION: THE INGLODA WITHIN." These are good titles for Walmart, but "not strong enough" to demand shelf space when HHSE requests. In these cases, these two titles are in release at Walmart Canada, but have been delayed for placement into Walmart USA. We're very excited about the distribution pipeline and infrastructure that our new VP of Sales, Tom Sims is implementing. However, he works several months "in advance," and we just wrapped DECEMBER placements two weeks ago, and are now working on January. With secondary titles, it's essential to give the major accounts plenty of time to find shelf placements... so we are supporting Tom's efforts in getting HHSE multiple new release titles into the marketplace.
WHAT'S ON OUR PLATES THIS WEEK?
* Big push to finalize the marketing buy and support campaigns with Redbull for ON ANY SUNDAY: THE FINAL CHAPTER (opens Nov. 7th on about 261 screens from HHSE).
* Big push to get studio supply partners to ship master elements for VODwiz titles to Nanotech for uploading.
* Big push to add a "business-to-business" feature on the HHSE website so that Tom Sim's key accounts can access artwork, trailers, listing data and more directly from our site.
* Helping TXSTAR with the star casting on "BRIDGE TO REDEMPTION" - a fully funded thriller that we plan to formally announced to the international market at the AFM / IFTA market in Santa Monica in November.
Will blog throughout the week... !!
Next, let us address some of the key issues that the Q2 filings present.
1). INTERNATIONAL SALES - HHSE has been advised that we should defer posting revenues from international presales for projects that are:
a). Not 100% funded; and,
b). Not already in production;
Contrary to some chat board comments, having a "completion bond" is not a requirement for posting revenues for productions (however, in most cases, a completion bond is a requirement for traditional bank financing of productions). Accordingly, we are NOT recognizing any new international presale activities, and only reporting co-production revenues for two, fully funded (and "in production" features). The biggest title in queue to impact our revenues is "MOTHER GOOSE" which we hope will be fully funded in the next few months.
2). VODWIZ Revenues - HHSE is charging our producer-clients for staff time and materials relating to creating metadata files and master dubs for each title. The revenues in Q2 from VODwiz are related to this service, and not to consumer transactions. The consumer campaign is being launched at the end of August, so "consumer" revenues are expected to show for our Q3 report (period ending Sept. 30, 2014).
3). CORE VIDEO ACTIVITIES - Our Q2 for direct-to-video was down in Q2, which can be attributed entirely to street date delays on "SPRING BREAK MURDERS" and "POSSESSION: THE INGLODA WITHIN." These are good titles for Walmart, but "not strong enough" to demand shelf space when HHSE requests. In these cases, these two titles are in release at Walmart Canada, but have been delayed for placement into Walmart USA. We're very excited about the distribution pipeline and infrastructure that our new VP of Sales, Tom Sims is implementing. However, he works several months "in advance," and we just wrapped DECEMBER placements two weeks ago, and are now working on January. With secondary titles, it's essential to give the major accounts plenty of time to find shelf placements... so we are supporting Tom's efforts in getting HHSE multiple new release titles into the marketplace.
WHAT'S ON OUR PLATES THIS WEEK?
* Big push to finalize the marketing buy and support campaigns with Redbull for ON ANY SUNDAY: THE FINAL CHAPTER (opens Nov. 7th on about 261 screens from HHSE).
* Big push to get studio supply partners to ship master elements for VODwiz titles to Nanotech for uploading.
* Big push to add a "business-to-business" feature on the HHSE website so that Tom Sim's key accounts can access artwork, trailers, listing data and more directly from our site.
* Helping TXSTAR with the star casting on "BRIDGE TO REDEMPTION" - a fully funded thriller that we plan to formally announced to the international market at the AFM / IFTA market in Santa Monica in November.
Will blog throughout the week... !!
Thursday, August 14, 2014
60+ NEW titles already adding value to the HHSE Film Library!
Dear HHSE Friends & Shareholders - There have been questions about the HHSE Library Valuation and its impact on the Form 10 registration filing and audits.
There has also been some ludicrous misinformation on one of the more popular "chat boards" where truthfulness and accuracy (and apparently grammar and linear-thought) are not required!
In respect of the legitimate shareholder inquiries, we can release some data about the Form 10 filing and Library footnotes. First of all, we are pleased to announce that a new library valuation will be conducted at the end of 2014. The primary purpose of conducting the new library report is to make the adjustments to add in the 60+ titles that are not currently valued in the previous library report. Adjustments will also be made to account for increasing Video-On-Demand Revenues vs. packaged goods. The new library valuation will NOT impact our imminent filing of the Form 10 and audits... we just wanted to let shareholder's know that it's just being done again "in the future" for 2015 uses.
Over the past three years, Hannover House has been "deleting" title values from the Library report as the distribution rights for certain items have expired (twelve titles in total have been removed from the valuation report). However, the company has NOT been adding back-in the valuation of all the new titles, including the items listed below (39 titles plus 23 items licensed from PEG). The reason that no values have been assigned to these 62 newly added items is that under G.A.A.P. rules, the valuation must be independently determined by a non-affiliated and qualified party. The company itself cannot assign values.
Additionally, and impacting the value of the new titles even more, HHSE has been negotiating to acquire "more" rights than just home video... and to include Television and V.O.D. in almost every case, and Theatrical and International when appropriate or available. Accordingly, we are informed that the company will be required to "footnote" that the valuation set forth in the prior film library valuation is likely significantly under-valued, based on these new items.
It's also important to note that only "fully delivered" titles are allowed to be included in the library valuation report. So the six current productions (which collectively have a film-investment cost of $21.5-million!), are NOT YET included in the company's film library. Some of them WILL be added to the new report (which is being done by one of the "top three" specialty firms).
There has also been some ludicrous misinformation on one of the more popular "chat boards" where truthfulness and accuracy (and apparently grammar and linear-thought) are not required!
In respect of the legitimate shareholder inquiries, we can release some data about the Form 10 filing and Library footnotes. First of all, we are pleased to announce that a new library valuation will be conducted at the end of 2014. The primary purpose of conducting the new library report is to make the adjustments to add in the 60+ titles that are not currently valued in the previous library report. Adjustments will also be made to account for increasing Video-On-Demand Revenues vs. packaged goods. The new library valuation will NOT impact our imminent filing of the Form 10 and audits... we just wanted to let shareholder's know that it's just being done again "in the future" for 2015 uses.
Over the past three years, Hannover House has been "deleting" title values from the Library report as the distribution rights for certain items have expired (twelve titles in total have been removed from the valuation report). However, the company has NOT been adding back-in the valuation of all the new titles, including the items listed below (39 titles plus 23 items licensed from PEG). The reason that no values have been assigned to these 62 newly added items is that under G.A.A.P. rules, the valuation must be independently determined by a non-affiliated and qualified party. The company itself cannot assign values.
Additionally, and impacting the value of the new titles even more, HHSE has been negotiating to acquire "more" rights than just home video... and to include Television and V.O.D. in almost every case, and Theatrical and International when appropriate or available. Accordingly, we are informed that the company will be required to "footnote" that the valuation set forth in the prior film library valuation is likely significantly under-valued, based on these new items.
It's also important to note that only "fully delivered" titles are allowed to be included in the library valuation report. So the six current productions (which collectively have a film-investment cost of $21.5-million!), are NOT YET included in the company's film library. Some of them WILL be added to the new report (which is being done by one of the "top three" specialty firms).
Friday, August 8, 2014
Significant balance sheet improvements and modest debt issuance actions in 4-years
Good afternoon HHSE Friends & Shareholders - The company has received inquiries regarding the issuance of debt conversion shares over the past month, and we've seen a lot of misinformation posted on various stock chat boards. In order to analyze the managerial steps that have been taken over the past four years at HHSE, it's important to look at the overall corporate position and direction.
Below are two graphic charts, covering total shares and debt structure.
The first is a table showing the total amount of shares in issue for HHSE over the past four years, and the rate that new shares and debt conversion equities have been issued during that time frame. The bottom line summary is that HHSE has increased the total shares in issue by 31.9% over the past four years, representing a total count increase of 147,132,575. Out of this 147-mm increase, 10-million shares are in the process of return to treasury (from the settlement of the TCA venture) and 27-million shares are considered to be in "long-term / friendly" hands (through the VODwiz / Nanotech venture structured by Ahnume Business Consultants).
The second table is a side-by-side comparison of data from the company's 12-31-2010 and 12-31-2013 balance sheets. Contrary to some chat board posts, the total amount of debt has DECREASED over the past four years (by about $600,000). But the point of this chart is to show how nearly $3-million dollars of "short term" or "toxic" debt has been either paid off or moved into long-term / friendlier structures over the past three years. The company has judiciously utilized its modest debt conversion / equity issuances to retire debt or to motivate the creditors into longer-term payment structures.
At the Annual Shareholder's Meeting (held this past February at the Grand Hyatt in New York City), and via prior public filings, the Company disclosed that the total amount of Authorized Shares was to be RESTORED to its prior level of 700-million. It was further disclosed with clarity that the purpose of restoring the authorized share count was to enable the managers to continue with modest and judicious debt-conversion transactions specifically to retire toxic debts, or to motivate key creditors into accepting longer-term payment plans that were more conducive to the company's operating cash flows.
Over the next few weeks, with the launch of VODwiz and with the filing of the Form 10 Registration Statement, there is widespread confidence that the company's share price could significantly appreciate. Accordingly, future debt conversion, as needed, will not require as large a number of shares to effectuate the same levels of cash relief.
Below are two graphic charts, covering total shares and debt structure.
The first is a table showing the total amount of shares in issue for HHSE over the past four years, and the rate that new shares and debt conversion equities have been issued during that time frame. The bottom line summary is that HHSE has increased the total shares in issue by 31.9% over the past four years, representing a total count increase of 147,132,575. Out of this 147-mm increase, 10-million shares are in the process of return to treasury (from the settlement of the TCA venture) and 27-million shares are considered to be in "long-term / friendly" hands (through the VODwiz / Nanotech venture structured by Ahnume Business Consultants).
The second table is a side-by-side comparison of data from the company's 12-31-2010 and 12-31-2013 balance sheets. Contrary to some chat board posts, the total amount of debt has DECREASED over the past four years (by about $600,000). But the point of this chart is to show how nearly $3-million dollars of "short term" or "toxic" debt has been either paid off or moved into long-term / friendlier structures over the past three years. The company has judiciously utilized its modest debt conversion / equity issuances to retire debt or to motivate the creditors into longer-term payment structures.
At the Annual Shareholder's Meeting (held this past February at the Grand Hyatt in New York City), and via prior public filings, the Company disclosed that the total amount of Authorized Shares was to be RESTORED to its prior level of 700-million. It was further disclosed with clarity that the purpose of restoring the authorized share count was to enable the managers to continue with modest and judicious debt-conversion transactions specifically to retire toxic debts, or to motivate key creditors into accepting longer-term payment plans that were more conducive to the company's operating cash flows.
Over the next few weeks, with the launch of VODwiz and with the filing of the Form 10 Registration Statement, there is widespread confidence that the company's share price could significantly appreciate. Accordingly, future debt conversion, as needed, will not require as large a number of shares to effectuate the same levels of cash relief.
Wednesday, August 6, 2014
Industry - Genre description
Good morning HHSE friends - for your convenience, we have linked below a handy-dandy list of "film genre" categories as commonly used in the entertainment business to track box office results of different types of films.
"ON ANY SUNDAY: THE NEXT CHAPTER" is a general interest documentary. It is not a "nature" film or a "politically-themed" film. It is a documentary. In its direct category, it very well could be the top grossing film of the year. When compared to other categories for which it is not applicable, then this would not be the case. For instance, some might characterize "THE AVENGERS" as an action film... whereas the industry considers it a superhero film. Yes, it has action and elements of an action movie, but the primary characters are superheroes - bigger than life - and this results in a more specific categorization.
http://www.boxofficemojo.com/genres/
"ON ANY SUNDAY: THE NEXT CHAPTER" is a general interest documentary. It is not a "nature" film or a "politically-themed" film. It is a documentary. In its direct category, it very well could be the top grossing film of the year. When compared to other categories for which it is not applicable, then this would not be the case. For instance, some might characterize "THE AVENGERS" as an action film... whereas the industry considers it a superhero film. Yes, it has action and elements of an action movie, but the primary characters are superheroes - bigger than life - and this results in a more specific categorization.
http://www.boxofficemojo.com/genres/
Tuesday, August 5, 2014
False judgment to be rescinded
Greetings again HHSE friends - just a quick word to update more misinformation on IHUB. A company called CAV Distributing has filed a motion to try to collect against HHSE for a judgment owed to them by ELITE ENTERTAINMENT. Our L.A. counsel is confident that the move to strike this false and erroneous filing will promptly prevail.
Hannover House had a previous judgment from 2008 owed to ELITE ENTERTAINMENT. This judgment has been FULLY PAID / SATISFIED. However, C.A.V. has a judgment against ELITE and is ignoring the satisfied status of the HH matter and attempting to collect again. While it's possible that the C.A.V. attorney has made an "honest" mistake, we will still move immediately to vacate this erroneous judgment. Hannover House has never had any direct involvement with C.A.V. manufacturing, and we have no balance due to Elite. So this will be eliminated.
UPDATE: 2:15 pm Central Time - INITIAL NOTICE TO VACATE FILING TODAY, there will be a more formal motion to dismiss which includes the California Satisfaction of Judgment documents in the original matter, which was fully retired by Hannover House.
Hannover House had a previous judgment from 2008 owed to ELITE ENTERTAINMENT. This judgment has been FULLY PAID / SATISFIED. However, C.A.V. has a judgment against ELITE and is ignoring the satisfied status of the HH matter and attempting to collect again. While it's possible that the C.A.V. attorney has made an "honest" mistake, we will still move immediately to vacate this erroneous judgment. Hannover House has never had any direct involvement with C.A.V. manufacturing, and we have no balance due to Elite. So this will be eliminated.
UPDATE: 2:15 pm Central Time - INITIAL NOTICE TO VACATE FILING TODAY, there will be a more formal motion to dismiss which includes the California Satisfaction of Judgment documents in the original matter, which was fully retired by Hannover House.
Wide range of activities in full throttle at HHSE
Dear HHSE Friends & Shareholders - Lots of activity underway at Hannover House, from our day-to-day core business of video distribution - to our new theatrical activities (including the 250-print, Nov. 7th release of ON ANY SUNDAY: THE NEXT CHAPTER), the imminent consumer launch of VODwiz, and the ongoing production activities for FOUR major features and two direct-to-video projects.
As some shareholders know, there has been a small but vocal group of "IHub Bashers" that belong to what we consider "The Flat Earth Society" of reality denial. Whenever something momentous and materially positive for the company occurs - such as today's announcement of the HHSE partnership with Redbull on the 250-print theatrical release of an Oscar-nominee-bound film - instead of acknowledging this achievement, they instead try to change the subject.
Today, a poster pretending to be knowledgeable about the movie industry has suggested that HHSE is "not" in production on our slate of films and videos... which is such an absurdly and easily disproven statement that it evidences how truly "outside" of the industry that this fake poster orbits. What this pretend movie persona is suggesting is that because he (or she) does not know certain details about the status of our productions, that they must not be happening. Really? We would like to know the identity of someone who is so amazingly connected that they know the whereabouts and activities of every single cast and crew member in the industry and worldwide! Such an all-knowing expert surely must be a billionaire many times over, rather than posting 19-times a day on the HHSE IHub board. Such a mixture of ignorance and arrogance could inspire a character in a Will Ferrell comedy.
Hannover House has not "PR'd" our principal cast, crew or locations for most of the bigger productions. Why not? Simple answer. When you're engaging a star for a less-than-rate agreement (what is often called a "no quote" fee), you are obligated to not promote their involvement until the film is ready for release. So if you have a multi-million dollar actor in a film (hypothetically, let's say TOM CRUISE) who has agreed to perform a particularly interesting role for much less than their "studio quote," it is imperative to not jeopardize the agreement for their participation with premature announcements and hype. Why? Just ask the agents at C.A.A. who might say, "hey, how can I demand $10-mm for your next studio film when you're off in Ireland doing a indie film for only $100,000?" It's a very good point from the Agent's standpoint, so the solution is to NOT publicize a film's specifics to the marketplace of "wanna-be's" out there. It's out of respect for the no-quote and a requirement to protect the participation of significant talent.
HHSE will announce the status, cast and principal crew members of all of our major films as this information becomes appropriate or required. We won't do it because some yahoo who has never produced a film thinks it's the right thing to do. We'll do it AFTER we have expressed authority to proceed, and do it in a manner that results in a carefully orchestrated publicity support for the film.
Meanwhile, it's a VERY SUNNY day at HHSE; we're sipping on Redbulls and booking theaters for ON ANY SUNDAY, which is unquestionably the biggest theatrical release in the history of HHSE. Could also be the biggest documentary of the year (we'll have to wait and see). For those of you living in the real world, we thank you for your support as we build the company in this positive direction!
* * * * *
A few basic film terms...
As some shareholders know, there has been a small but vocal group of "IHub Bashers" that belong to what we consider "The Flat Earth Society" of reality denial. Whenever something momentous and materially positive for the company occurs - such as today's announcement of the HHSE partnership with Redbull on the 250-print theatrical release of an Oscar-nominee-bound film - instead of acknowledging this achievement, they instead try to change the subject.
Today, a poster pretending to be knowledgeable about the movie industry has suggested that HHSE is "not" in production on our slate of films and videos... which is such an absurdly and easily disproven statement that it evidences how truly "outside" of the industry that this fake poster orbits. What this pretend movie persona is suggesting is that because he (or she) does not know certain details about the status of our productions, that they must not be happening. Really? We would like to know the identity of someone who is so amazingly connected that they know the whereabouts and activities of every single cast and crew member in the industry and worldwide! Such an all-knowing expert surely must be a billionaire many times over, rather than posting 19-times a day on the HHSE IHub board. Such a mixture of ignorance and arrogance could inspire a character in a Will Ferrell comedy.
Hannover House has not "PR'd" our principal cast, crew or locations for most of the bigger productions. Why not? Simple answer. When you're engaging a star for a less-than-rate agreement (what is often called a "no quote" fee), you are obligated to not promote their involvement until the film is ready for release. So if you have a multi-million dollar actor in a film (hypothetically, let's say TOM CRUISE) who has agreed to perform a particularly interesting role for much less than their "studio quote," it is imperative to not jeopardize the agreement for their participation with premature announcements and hype. Why? Just ask the agents at C.A.A. who might say, "hey, how can I demand $10-mm for your next studio film when you're off in Ireland doing a indie film for only $100,000?" It's a very good point from the Agent's standpoint, so the solution is to NOT publicize a film's specifics to the marketplace of "wanna-be's" out there. It's out of respect for the no-quote and a requirement to protect the participation of significant talent.
HHSE will announce the status, cast and principal crew members of all of our major films as this information becomes appropriate or required. We won't do it because some yahoo who has never produced a film thinks it's the right thing to do. We'll do it AFTER we have expressed authority to proceed, and do it in a manner that results in a carefully orchestrated publicity support for the film.
Meanwhile, it's a VERY SUNNY day at HHSE; we're sipping on Redbulls and booking theaters for ON ANY SUNDAY, which is unquestionably the biggest theatrical release in the history of HHSE. Could also be the biggest documentary of the year (we'll have to wait and see). For those of you living in the real world, we thank you for your support as we build the company in this positive direction!
* * * * *
A few basic film terms...
We concede that the vast majority of HHSE shareholders or followers have never produced a motion picture before. Accordingly, perhaps it's a tad disrespectful or presumptuous of us (although completely unintentional), to presume that everyone shares a broad knowledge of basic film terminology. So in this respect, we apologize for inadvertently confusing some HHSE followers with our brevity and vernacular choices.
When a production company comes to a distributor (such as Hannover House) with a movie project for production financing, one of the initial questions asked by the distributor is "do you have any stars attached?" The word "attached" has very specific meaning in the film industry and usually means that a specific star talent has agreed to be in the movie, subject to some general conditions (usually schedule issues as the priority, and often smaller contract terms).
If an actor is genuinely considering a role, but the "deal" has not yet been worked out to the satisfaction of the Agent or funding source, then the term generally used to describe their orbit of the project is "in negotiations."
If an actor is determined to be accessible to the director, believed to be available during the production window and believed to be available for the amount budgeted in the production, then this sort of talent may be "pre-approved" by the distributor. This action of "pre-approving" talent assures that the movie ultimately being delivered to the distributor will be of the commercial level required to justify the production investment... and having the distributor's pre-approval of talent provides the production company with the authorization to make a formal offer for such services.
With every major production that Hannover House is developing or producing with outside entities, each project has a list of talent that meets these conditions for "pre-approval" and anticipated obtainability. For instance, the multi-party agreement with the investors, Hannover House and Odyssey Pictures for the movie "Within Screaming Distance" includes specific language that John Malkovich is pre-approved for the lead role. Does that mean that John Malkovich is absolutely "signed", "attached" and otherwise committed to the film? Absolutely not. In this particular case, there are still issues of director approval, final script, schedule and money specifics. It's a distance from being a done-deal, because any one of those elements might pose an obstacle that results in Mr. Malkovich not starring in the movie. For the movie "The Unwelcome" pre-approved cast members include Neve Campbell, Alyssa Milano and Fairuza Balk (all for the SAME role); having Hannover's endorsement of these actresses enables the producers greater flexibility regarding scheduling and other considerations. Any of them would be GREAT in that film, as might other actresses in the event that these specific performers are unavailable.
There are clues within most of the HH Facebook posts. Look over the past few months and see if you can recognize the pattern? While the company is generous in extending Kudos to others in the industry, there's usually more than the surface of a post to each subject.
When a production company comes to a distributor (such as Hannover House) with a movie project for production financing, one of the initial questions asked by the distributor is "do you have any stars attached?" The word "attached" has very specific meaning in the film industry and usually means that a specific star talent has agreed to be in the movie, subject to some general conditions (usually schedule issues as the priority, and often smaller contract terms).
If an actor is genuinely considering a role, but the "deal" has not yet been worked out to the satisfaction of the Agent or funding source, then the term generally used to describe their orbit of the project is "in negotiations."
If an actor is determined to be accessible to the director, believed to be available during the production window and believed to be available for the amount budgeted in the production, then this sort of talent may be "pre-approved" by the distributor. This action of "pre-approving" talent assures that the movie ultimately being delivered to the distributor will be of the commercial level required to justify the production investment... and having the distributor's pre-approval of talent provides the production company with the authorization to make a formal offer for such services.
With every major production that Hannover House is developing or producing with outside entities, each project has a list of talent that meets these conditions for "pre-approval" and anticipated obtainability. For instance, the multi-party agreement with the investors, Hannover House and Odyssey Pictures for the movie "Within Screaming Distance" includes specific language that John Malkovich is pre-approved for the lead role. Does that mean that John Malkovich is absolutely "signed", "attached" and otherwise committed to the film? Absolutely not. In this particular case, there are still issues of director approval, final script, schedule and money specifics. It's a distance from being a done-deal, because any one of those elements might pose an obstacle that results in Mr. Malkovich not starring in the movie. For the movie "The Unwelcome" pre-approved cast members include Neve Campbell, Alyssa Milano and Fairuza Balk (all for the SAME role); having Hannover's endorsement of these actresses enables the producers greater flexibility regarding scheduling and other considerations. Any of them would be GREAT in that film, as might other actresses in the event that these specific performers are unavailable.
There are clues within most of the HH Facebook posts. Look over the past few months and see if you can recognize the pattern? While the company is generous in extending Kudos to others in the industry, there's usually more than the surface of a post to each subject.