TERROR IS COMING TO AMERICA! Jan. 1st marks the DVD / BluRay and V.O.D. Release of "SLEEPER CELL: THE ALGERIAN"

Greetings HHSE Friends & Followers - while Parkinson and Shefte labor away on the HHSE corporate filings matters, the RELEASE SLATE ROLLS ON!  Coming to home video and digital streaming platforms on Tuesday, January 1st, is the long-awaited release of the theatrical title, "THE ALGERIAN" - now rebranded for home video as:  SLEEPER CELL: THE ALGERIAN.  Watch for this title in Walmart, Target, Best Buy and other major retailers via HHSE / MEDALLION, Random Media / Sony / AEC as well as onto digital streaming via I-Tunes, Amazon and many more platforms.  Netflix to follow in March... ONWARD!

Tickets Selling QUICKLY for L.A. Launch of "THE RIOT ACT!"

Attn: L.A. Based HHSE Friends & Followers - Check out THE RIOT ACT opening this Friday at the Laemmle Fine Arts Theatre, 8556 Wilshire Blvd., Beverly Hills.  The 7:30-pm evening show on Friday will be attended by ALL of the major cast members, along with some very notable A-List guests.  Should be quite an event worth attending.... tickets are on sale via Laemmle.com, but are selling QUICKLY!

https://www.laemmle.com/theaters/purchase/25/5515297?replace=

HHSE / MyFlix / Audit & Release Updates

Welcome to the First Week of October to our HHSE Friends & Followers - 

As C.E.O. of Hemdale Communications, Inc. (NASD) from 1991 through 1996, Eric Parkinson had a large support staff (at one point up to 125 full-time employees), and monthly revenues often exceeding $5-million. Video orders from retailers and wholesalers used to be placed via facsimile machine and Hemdale had to have FOUR such antiques in roll-over sync to handle the constant printing out of incoming P.O.'s. 

In the 20+ years since the VHS heydays, the home media industry has since evolved through consolidation of the customer base, streamlining of the wholesale distribution process and media transitions from VHS to DVD to BluRay and now on to Digital Streaming Formats. 

But the two basic operational principles for a media distribution company have remained the same:  

1). Acquire commercially meritorious products; and 

2). Efficiently market said products through the applicable media technologies.

Unlike Hemdale, at Hannover House the company does not  employ an army of technical, financial and marketing specialists. At times, the responsibilities for project completions are borne entirely by Parkinson and Shefte, as the absence of "middle managers" at HHSE raises the stakes on assuring that key issues are handled accurately.

While having a smaller staff certainly saves the company a lot of overhead dollars... it has definite drawbacks, evidenced primarily in HHSE's consistent inability to meet it's targeted completion deadlines for projects. 

It is with this reality in mind that HHSE is providing the following updates for a variety of important projects - as well as some news for shareholders.

1).  HEALTH STATUS - FRED SHEFTE - On or about Labor Day, HHSE President Fred Shefte began experiencing heart and breathing ailments that required hospitalization at Washington Regional Medical Center / Walker Heart Institute in Fayetteville. Except for a few days during the past four weeks, Shefte has been hospitalized and undergoing treatments that the physicians feel will restore him to good health by mid-October.  Unfortunately, during Fred's absence all of the legal, operational, financial and filings projects he was handling were either functionally "on-hold" or being handled on a time-available basis by Parkinson. However - with two films in theatres, four films being prepped for home video, a major new financing structure, the audit, uplist and MyFlix occupying Parkinson's 80-hour weekly schedule - the schedule for two of Fred's key projects (Form 10 and MyFlix Operations) are about four weeks behind.  Shefte is undergoing a final procedure this week, and is expected to be back at HHSE full time as of Monday, Oct. 8.  

Painting the hair of Fred Flinstone into white resulted in a funny "Get Well Soon" card for HHSE President Fred Shefte from the staff and some locally-based suppliers!

2).  AUDIT / UPLIST - XBRL tables for historical data, forecasts and non-audit materials have been prepared - along with the narrative write-up of the company's Form 10.  An issue regarding freight allocations was received in early September, but will not be fully addressed until Shefte's return to the HHSE offices. 

3).  MYFLIX STATUS - The "home page" (and landing page for APP) has been designed and approved for conformation to our Host Provider. Upload / On-Boarding of titles continues daily, and new suppliers are being signed up each week - with new titles adding to the venture's impressive roster.  As of last Friday, it was determined that it was not possible to launch the site to management's preferred level in time for the MIPCOM International Media Conference in France (mid-October); accordingly, the MyFlix site will not be revealed at the media streaming panel at that industry confab, as was previously targeted. 

HHSE's David Garrison overseas the meta-data uploads for all MyFlix titles, which consists of a multi-part XL spreadsheet that serves as a database for instantaneous page creation as MyFlix viewers "click" onto a particular title.

4).  RELEASES UPDATE - "THE RIOT ACT" continues to expand to other markets.  For HHSE Shareholders in Southern California / Los Angeles Metro - you may want to consider attending the FRIDAY (OCT. 5), L.A. opening night event at the Laemmle Fine Arts Theatre, 8556 Wilshire Blvd., Beverly Hills. ALL of the principal cast will be in attendance, along with some notable "A-List" guests.  If you plan to attend, buy your tickets SOON because over 200 have already been presold (out of 400 total seats):

https://www.laemmle.com/theaters/purchase/25/5515297?replace=

In other release news, "DOGPATCH USA" launches on Wednesday at the Malco Fort Smith, and will expand regionally throughout October.

On the Home Video front - replication is in the works for "GETTING GRACE", "SLEEPER CELL: THE ALGERIAN", "RIDE UNITED" and "AMERICA UNITED" all for Q4 release to home video and streaming platforms.

5).  $20-MM PRODUCTION / P&A FUND - In the category of "you miss 100% of the shots you never take" (a Wayne Gretzky classic line), HHSE has been presented with the opportunity to implement a financing venture that would cover the production and theatrical releasing costs for FOUR (4) "event" level feature films.  The deal structure is non-recourse against HHSE, does not involve any stock issuances and HHSE would perform both the Studio function of physical film production as well as remain as the North American Theatrical Distributor for all films.  But the sub-distribution outside of theatrical would be placed with a designated Major Studio (as international distributor) and a separate and designated Major Studio (for domestic Video, Streaming and Television). Two of the four pre-approved titles are:  MELTDOWN and MOTHER GOOSE: JOURNEY TO UTOPIA. A business plan has been structured in consultation with the funding group; HHSE will keep shareholders posted as this significant opportunity progresses (or evolves).  It is HHSE's long-range plan to upgrade the profile of its releases in order to ascend to a significantly higher annual revenue model. 

 ADDITIONAL MISCELLANEOUS IMAGES:

"The Riot Act" Producer & Leading Lady (LAUREN SWEETSER, Center), is joined by HHSE Marketing Staffers PAULINA SOBCZAK and MARYEVELYN JONES at a recent screening event.

"The Riot Act" is into its FOURTH WEEK at key locations in Arkansas, and expands to top 10 markets during October - beginning this Friday at the Laemmle's Fine Arts in Beverly Hills.

N.W. Arkansas is enjoying an ascent as a major location for independent film and television production, including the recent features "The Riot Act" and "Sweet Inspirations" as well as HBO's $70-mm series production of  TRUE DETECTIVE 3.  Additional major features are in the works from HBO, Hannover House as well as our friends at ROCKHILL STUDIOS (Pictured above with the cast & principals of "The Riot Act").  Left-to-Right:  Brett Cullen, and Lauren Sweetser (stars of "The Riot Act"), Kerri Elder (Rock Hill Studios), Connor Price ("The Riot Act"), Blake Elder (Rock Hill Studios) and writer-director DEVON PARKS of "The Riot Act."

RIOT ACT Premiere's Add Significant Dollars to Opening Weekend Results!

Greetings HHSE Friends & Followers - HHSE conducted Three Special Event Screenings in anticipation of TODAY's opening of "THE RIOT ACT," all of which will be included as "Thursday Pre-Shows" in the opening weekend's box office.

The first screening at the Malco Fort Smith sold out the auditorium with 202 ticket sales at $13.22 each.  The second screening, a VIP promotion to support the King Opera House, sold 50 tickets at $100 each, and at the third and final screening at the Malco Razorback sold 208 tickets at $13.22.  Support for the After-Screening Reception last night was provided by RIOT ACT promotional sponsors Shogun Grill, The University of Arkansas Communications Department and The Inn at Carnall Hall.  

THE RIOT ACT opening weekend numbers will reflect this nice kick-start of $10,420 going into the Friday matinees!  

FOR MORE INFORMATION ON THE PREMIERE EVENTS THAT WERE OPEN TO THE PUBLIC, Visit:

https://www.RiotActFilm.com/theriotactpremiere

FOR MORE INFORMATION ON "THE KING OPERA HOUSE" Visit:  

https://www.vanburen.org/king-opera-house/

Pre-Opening Shows: $10,420... a GOOD START!  Friday and Saturday night prime evening shows are already at or near SOLD OUT status at key RIOT ACT locations!  Go HHSE!

ARKANSAS DEMOCRAT GAZETTE

Arkansas's Largest Newspaper

ReviewThe Riot Actby Philip Martin |

The Riot Act, a theatrical release from Northwest Arkansas-based media company Hannover House, is an enjoyable Western thriller (there's a Deadwood meets The Phantom of the Operavibe) allegedly based on a true story -- more likely a true legend -- about Van Buren's King Opera House, which is prominently featured and becomes a kind of character in the film.

The story goes that, not long after the opera house opened in 1901, a young actor in a traveling troupe fell in love with the daughter of a prominent local doctor. The two made plans to run away together, but the doctor intercepted them at the train depot and beat the young actor to death. It's said that the ghost of the victim haunts the King, and employees there have reported strange goings-on. Lights are turned off only to be found glowing in the morning. Some people have felt the presence of the spirit while in the building; a few others report having sighted the ghost itself.

The Riot Act

85 Cast: Lauren Sweetser, Brett Cullen, Connor Price, Micah Hauptman, Brandon Keener, Dean Denton

Director: Devon Parks

Rating: PG-13, for violence and brief drug material

Running time: 1 hour, 41 minutes

A few years ago, Van Buren native Devon Parks made a 28-minute feature for AETN, Step Into The King Opera House, based on the ghost stories surrounding the venue. It won a regional Emmy and convinced Parks -- and more importantly The Riot Act producers -- that he could make a full-blown movie using the opera house and the material. The Riot Act is the handsome result.

One of those producers, Arkansas native Lauren Sweetser (Winter's Bone), stars as Allye Pearrow, daughter of "the world renowned physician" Dr. Willard Pearrow (Brett Cullen), the (fictional) owner of the King who takes issue with the romance. (It's interesting and probably not coincidental that Pearrow is a homonym for Perot, as in Ross, as in the grand theater in Texarkana.)

But Parks' script quickly dispenses with the boyfriend (who is shot, not beaten to death in this version) before the main title appears, and picks up the story two years down the road with the arrival of Cyrus Grimes' (Micah Hauptman) "high end" vaudeville revue, an eight-act extravaganza with a centerpiece performance that hits a little close to home for the the snobbish, racist doctor.

While there is a certain "aw, come on" factor in the overly embroidered script (which -- as with most movies -- is the weakest link in the chain), The Riot Act is a handsomely mounted if thoroughly conventional film. It's well shot in a stately amber mode by Travis Joiner. Van Buren is convincing as an early 20th-century version of itself, and the actors, especially Sweetser, acquit themselves well despite having to deliver a few clunker lines.

All in all, The Riot Act is an impressive accomplishment, and local audiences especially will find much to admire. But everyone involved will probably find themselves in better movies down the road.

MovieStyle on 09/14/2018

RIOT ACT - Northwest Arkansas MEDIA DAY & Initial Premieres

Greetings HHSE Friends & Followers - This Friday marks the opening of "THE RIOT ACT" in theatres throughout Arkansas.  

As part of the promotional support, HHSE arranged for a MEDIA DAY to be held at the INN AT CARNALL HALL on the campus of the University of Arkansas... for TV and Newspaper interviews with cast and principals.  Later last night, the first of TWO sneak-peek premieres was held in Fort Smith to a packed theatre (202 seats), with another full house pre-sold for tonight in Fayetteville.  Three local TV stations and four local Radio Stations have covered these events thus far... with some national media attending the Fayetteville premiere tonight.

Unlike recent HHSE theatrical releases, "THE RIOT ACT" is being released in a very targeted manner to specific theatres as the launch strategy.  Based on this weekend's success, the company can make the most informed decisions for expansion. 

The company is looking at "THE RIOT ACT" strategy as a way to target our focus on selected locations - see if we can make the film click with audiences - and THEN expanding to the more costly, larger markets.  So we will have good data to share with our friends and shareholders on MONDAY!

www.RiotActFilm.com

MyFlix Update...

Good Morning HHSE Friends & Followers - as we wind down on the last days of "Summer" we felt an update on the status and timing of MyFlix was deserved.  

Back in May - at the Cannes Film Festival / Marche du Filme - we announced in ads and brochures that the MyFlix site would be live to consumers "this summer."  With twelve days remaining before the Autumnal Equinox (Sept. 22), it is clear that by all definitions of summer, MyFlix will not be live to consumers during this time frame. We COULD launch the site immediately, but it would be without some key components that we believe will impact the consumer's impression of the venture and the overall optimal functionality. For instance, the mobile device APP cannot be completed until the primary website / OTT layout is approved for conformity by our platform host; also, we will not have our "test" assortment of high-profile titles from three major studios on-boarded until after we achieve these two operational benchmarks.  

Our new target for initial launch is Oct. 12 (which would be for a  "beta site" and APP with approx. 2,000 titles to start). The achievement of this date would correspond with the MIPCOM International Television Market in Cannes, France, where a major panel discussion of top portal sites and the new digital frontier will dominate the headlines. In order to hit this date, HHSE / MYFLIX will need to step up the daily rate of on-boarding titles and implement our primary consumer launch marketing campaign. Over then next 2+ weeks, we will be in turbo-charge mode towards the achievement of this launch date.  However, if we determine (by Sept. 28) that an Oct. 12 launch is not in the best interests of MyFlix, we anticipate that we could accurately determine an optimally date at that time and launch the consumer marketing around that target. 

As a refresher, our challenges with MyFlix are centered around functionality and programming diversity.  The Site / APP needs to be easily accessed, operated and navigated by consumers... and the programming selection that consumers see needs to be interesting, broad and diverse (to establish the benefits of the site for wide selection and uniqueness).  For years, the operational functionality was the biggest challenge. With that issue now solved, the management focus has evolved two-fold onto the acquisition (and on-boarding) of programming... and the critical steps of creating a consumer branding, awareness and a marketing campaign for the venture. 

We are working with a top design firm for the website, another for the APP and a marketing agency for the consumer launch. It's a monumental endeavor, one that has been years in the making but only weeks away from launch... stay tuned...

NEW OFFICE!  Effective Monday, Sept. 10, our principal offices for all HHSE operations were moved across the street to 355 N. College Ave., to a space more conducive to our MyFlix needs.  Mail service will be forwarded for the next six months, and our various corporate filings will be updated as required or available. The company will be saving over $1,000 per month and gaining 50% more workable space, so it was a terrific opportunity!

RIOT ACT Theatre Lobby Standees - Generating Maximum Visual Impact!

Greetings HHSE Friends & Followers - the original Hannover House production of THE RIOT ACT launches to theatres next Friday (Sept. 14), and will expand based on results. At the suggestion of two of the key theatre circuits, HHSE has designed "Lobby Standees" to support the release (see photos). The research studies indicate that Lobby Standees have wider visibility and recognition than "on-screen trailers" of the same movie... based upon the higher traffic that shuffles past a standee as compared to the small number of audience members actually exposed to a film trailer (oftentimes, in a 16-theatre multiplex, a particular trailer might be "up" on only two or three of the screens). 

www.RiotActFilm.com

So, it will be interesting to see if the locations WITH STANDEES for THE RIOT ACT perform better on the opening weekend than those without...

More to follow...

Friday (Aug. 31) Updates on HHSE / MyFlix & Other Activities

Greetings HHSE Friends & Followers - Here's a super quick recap on some key items of interest to shareholders (based on emails to management):

1).    TIMING OF AUDIT COMPLETION - At the request of our auditors, we have been told that forecasting a specific date for the posting of the Form 10 Registration filing would likely result in a "comment" of concern from the S.E.C.  Why?  Because publicly stating a specific date creates stock trading advantages for those buying in anticipation of the date, or those that work against the best interests of the Company by hoping that an announced date is not met.  That said, we can state that the process of audit continues in motion, and that the additional steps of XBRL formatting for EDGAR compatible upload are also in motion.

2).    RELEASE UPDATES - Well, it's technically TWO WEEKS before the Sept. 14 opening in theatres of "THE RIOT ACT."  But in the film distribution business, this means that we are crazily handling umpteen issues (from masters, to Ads, to P.R., to talent travel for our premieres, etc...). Busy times... and two weeks after that?  DOGPATCH U.S.A. opens in theatres.  Also consuming marketing and prep time are the Q4 home video releases for various projects / clients.  Lots on our plates!

3).    LEGAL UPDATES - We understand that the legal strategies being pursued by HHSE regarding disputed matters can be unclear at times to shareholders. The short answer is that we cannot publicly state our various actions in matters without inadvertently alerting opposing counsel. Suffice it to say that our strategies in the matters listed below are on target for resolution to HHSE's favor:

3a).  Crimson Forest - There is action by HHSE to pursue claims against Crimson Forest for their unmotivated withdrawal from the corporate merger of 2017. In a related matter, the Crimson Forest-JSJ court appearance for Arkansas today was withdrawn by JSJ.

3b).  JSJ - The Company has a solid strategy to stop the JSJ foreign judgment activities and prevail in the matter... which is in motion.

3c).  BEDROCK - The Company also has a solid strategy to stop the Bedrock foreign judgment activities and prevail in the matter... which is in motion.

The specifics of the Company's legal strategies in these three matters will be revealed once filed with the appropriate courts of jurisdiction.

4).   MYFLIX - It would take hours to provide an update on everything with MyFlix...hours which HHSE management cannot allocate at this time (today).  Likely, a more detailed update will be posted on Labor Day, which tends to be a less busy day for phone calls to the office and other distractions.  UPDATE - Tuesday, Sept. 4 - WE ARE AWAITING "APPROVAL" FROM OUR WEB DESIGN VENDOR REGARDING THE MYFLIX UPDATE SENT TO THEM ON SATURDAY (INTENDED AS AN UPDATE TO SHAREHOLDERS).  APPARENTLY, THEIR FIRM RECOGNIZES HOLIDAYS AND WEEKENDS (!!!), AS THEY SAID THAT THEY WILL RESPOND THIS AFTERNOON. 

HAVE A GREAT WEEKEND!

Cardboard Character Cut-Outs for THE RIOT ACT Theater Lobby Standees come in both "REGULAR" and "HOBBIT" sizes!!

OTC Markets Update re: HHSE / Q2

Good Morning HHSE Friends & Followers - Despite renewing our OTC Markets subscription in a timely manner, our "account access" needed for the posting of the Q2 report still has not been restored. We have been working with the OTC Markets staff on this for the past week, providing them with tracking information to help locate the wire-transfer payment and apply it to our issuer account. They are promising restoration by the end of the day.

Meanwhile, we are making terrific progress on a wide range of fronts... from the MyFlix build-up, to theatrical release activities for THE RIOT ACT and DOGPATCH. Still in the "waiting cycle" with respect to any additional comments or issues for our audit (and how that impacts the Form 10 registration). But while we are waiting, we are dancing with delight at the first ten days of sales success through SONY PICTURES HOME ENTERTAINMENT with the release of HHSE's "BONOBOS: BACK TO THE WILD."  The title continues in its second week to be a top performing Documentary feature on most major platforms... and with respect to physical DVD units placed at retail, the title has enjoyed about 27% sell-thru in the first 10-days.  We feel this bodes well for upcoming promotions, including a HOLIDAY timed release of GETTING GRACE (and a holiday-timed "Budget Bin" promotion for BATTLECREEK with a new package campaign), among other titles and activities.

LOVED the terrific write-up that FANDANGO created in support of "THE RIOT ACT" - and we obtained their permission to use this as the official Press Kit Synopsis!

https://www.fandango.com/the-riot-act-213444/movie-overview

ONWARD!

Pre-Launch Status & General Updates for the MYFLIX Streaming Venture

Good Morning HHSE Friends & Followers - On the "content" side of the venture, upload activities continue on the first 1,200 titles for the MyFlix site, and we anticipate moving into the next set of masters (2,000+ titles) by the end of this week. Regarding "marketing" - HHSE is in pre-production of two MyFlix videos that explain and promote the service. Filming is expected to occur within the next three weeks. Other marketing efforts include a seven (7) faceted campaign that also include traditional advertising (both paid and barter), social media, influencers / taste-makers, mainstream publicity, targeted P.R. and national media.

As some longs will recall, HHSE pursued two previous paths for the launch of the streaming site. In 2014, extensive research was made for the "VODWIZ" site (prior name) to be hosted in the Arkansas Technology Center through a bank of high-speed computers attached to the internet via fiber optics and backed-up with remote stations in geographically diverse locations. The costs for this operational concept proved prohibitive... so the company looked at a "hosting" arrangement with a third-party supplier (Nanotech) that over a protracted two-year time-span simply did not prove to be a viable fit. Ultimately, the opportunity to be hosted through Amazon - utilizing their vast digital network and infrastructure - revitalized the venture's viability and dramatically reduced the MyFlix start-up costs.  

But it's still very costly to acquire the rights and upload film masters - to build a consumer friendly site - and most importantly, to PROMOTE the site so that consumer traffic drives the revenue streams. 

This is why HHSE has entered into an off-balance sheet financing agreement for MyFlix: a structure which provides the funding for the venture's creation and launch, while preserving HHSE's right to earn full ownership. Similar to a home mortgage, HHSE owns MyFlix, subject to the retirement of the note (which balance is to be repaid to the lenders from the share of incoming revenues otherwise designated for HHSE). On the HHSE Registration Statement, disclosures and balance sheet, the loan proceeds paid towards the creation and launch of MyFlix will be recognized as a HHSE loan payable, secured for the benefit of the lenders by the assignment of incoming revenues from MyFlix.

HHSE Management felt that this form of traditional lending structure offered a cleaner financing mechanism than more complex fundings that involved stock issuances (which stock-based financing structures have proven to be unpopular with shareholders).  The concept of having the MyFlix venture "pay for itself" and through cash-flow made sense for a variety of reasons which will be further detailed in the Registration Statement.  

HHSE's enthusiasm for the viability of this new MyFlix division grows with each day of progress in the build-up and launch activities... and we feel vindicated to have learnt from prior missteps and taken this wise course toward success. 

Stay Tuned!

SONY picks Winning KEY ART for "SLEEPER CELL: THE ALGERIAN"

Happy Friday to our HHSE Friends - We are pleased to present the FINAL DVD art as selected by the SONY Team for our December 4th Home Video and V.O.D. Release of "SLEEPER CELL: THE ALGERIAN."  Hey, it wouldn't be the holidays without a good terrorism movie, right?!  Sort of in the "Die Hard" tradition...

ONWARD!

HHSE Presents: AMERICA UNITED: In Support of our Troops

Greetings to All - Well, with this being an ELECTION YEAR, the one issue that most members of the two main political parties can agree on is that we all SUPPORT OUR TROOPS!  Accordingly, HHSE is pleased to present the ABC-TV Special Concert:  "America United: In Support of our Troops" - Featuring JANET JACKSON, ZZ TOP, SNOOP DOGG and many more top artists and comedians.

So, how do you create a DVD package for such a star-studded collection?  If you show an image of ONE artist, but not ALL, then is that an unintended disrespect?  

But how could you show ALL on a DVD box art image that's barely 7-inches tall X 5-inches wide?  Perhaps the best solution is a CONCEPT CAMPAIGN that concentrates on the TROOPS as opposed to the individual performers?  Here are some art ideas that HHSE put together in-house that we will present to ABC and the program producers for feedback:

High-Traffic APPLE TRAILERS Site Features THE RIOT ACT Trailer

HHSE is pleased to announce that APPLE  TRAILERS has selected our RIOT ACT Trailer for premium placement and promotions effective Tuesday, August 7.  This is good timing in support of the film's Sept. 14 theatrical launch.  Check it out!

https://trailers.apple.com/trailers/independent/the-riot-act/

General HHSE / MYFLIX Updates - Monday, August 6, 2018

Greetings HHSE & MyFlix FANS & FOLLOWERS - 

UPDATE ON LONG-TERM CORPORATE STRATEGY - HHSE management has been contacted by several "long" shareholders with the inquiry regarding LONG-TERM STRATEGY for both the core business (traditional film distribution) and the NEW business (digital streaming / MyFlix). As the market for lower-end films continues to diminish (i.e., lower-budgeted films without notable star casts), the merits of the HHSE plan to pursue "event" level features becomes more obvious. The sort of films that are driving theatrical box office have the same elements that are driving home video, streaming, television and international sales. Movies like "MOTHER GOOSE: JOURNEY TO UTOPIA" and "THE LEGEND OF BELLE STARR" are event-level theatrical features with major star casts.  HHSE has known this for years, and struggled to secure the multi-millions of dollars required to bring each of these films to the screen. The challenges have been daunting, including:

a).  Difficulties in obtaining "bankable" foreign presales (i.e., a prior contract with Odyssey Pictures for a $2-mm Minimum Guarantee against foreign royalties for "Mother Goose" met with banking resistance to the point of futility).

b).  Skepticism Regarding likely Production Values - Until HHSE could show the production quality obtainable in Arkansas for amounts that by film industry standards were considered "small," the company met with presale and private investor skepticism that a quality film could be produced for the amounts that HHSE was arranging. Now, with films like "THE RIOT ACT" as available evidence - and the boom of production in Arkansas due to State incentives and low-cost crews and accommodations - the HHSE budgets for "Mother Goose" and "Belle Starr" are no longer being viewed as "too low to be viable" but as "too reasonable to not pursue." 

c).  General Corporate Status - Without being a fully reporting company, and plagued with nuisance lawsuits from the "old" business model for HHSE, both private investors and banks have taken pause at times when HHSE is presented as the distributor for these locomotive, windfall-generating event pictures. The solution to these concerns includes the current registration filing and uplist, a continued elimination of nuisance litigation and balance sheet debts, and a series of significant distribution partnerships from theatrical to international.

It is HHSE's belief that ONE title like "MOTHER GOOSE: JOURNEY TO UTOPIA" is capable of generating over $40-mm in gross revenues... or more than TEN TIMES what HHSE generates in a 10-Year Period with the smaller titles of the prior business model. For these reasons - the long-term goal of major features as the locomotives will drive the core distribution business... while the exciting new venture of MyFlix streaming will be the tail that wagged the dog as a complementary venture. 

COMPLIANCE & AUDIT UPDATES - Progress continues to be made in the audit compliance issues and general status of the Form 10 Registration. Q2, 2018 filing will be made on or before the August 14 OTC Markets Guidelines (a filing which was held from prior release in order to conform as much as possible to current status news and audit adjustments).

MYFLIX - On-boarding of titles for this impressive streaming site continues, while marketing & P.R. efforts for the upcoming launch  consume the majority of management focus. The company's trademark filing was approved, which was an important step towards empowering HHSE attorneys to halt any "squatters" that are attempting to utilize the MyFlix brand name (we are aware of two current attempts that will be pursued for halting). An outside firm has been engaged for the creation and placement of the MyFlix APP (onto all major platforms and hardware devices)... and a website compliance meeting is scheduled for late August in order to test the functionality of the MyFlix operational infrastructure. At this point, a public launch to consumers in mid-to-late September is looking more realistic. It's understandable (now) why the Disney streaming site allowed themselves 18-months of development (they launch in March, 2019). 

LEGAL ISSUES - Responsive filings have been made in the Crimson Forest matter; at the recommendation of counsel, HHSE has been advised to not elaborate on the company's legal strategy on this publicly-accessible blog. 
Regarding Origin Films, the Motion to Dismiss was rejected, so this matter will proceed to trial at some time over the next two weeks. Based upon the contracts and math, HHSE believes that a reasonable review of the accounting reports will result in another victory for HHSE: an adjudication based solely on reality. HHSE has prevailed in the past three matters in which producers chose to ignore the terms of the agreements, and instead sued for "fictional" amounts they incorrectly claimed were owed. As stated previously in this blog, the long-term solution for HHSE to avoid this sort of baseless and frivolous action in the future is to avoid dealing with inexperienced producers and low-end programming. 

NEW THEATRICAL UPDATES - Materials preparation and marketing support are underway for TWO theatrical releases coming in September.  On Sept. 14, THE RIOT ACT will open in approx. 10 theatres in Arkansas and 10 theaters in Top 10 DMA markets... each theatre will have focused marketing support, including lobby standees.  If the film's opening weekend results in holdovers, then a plan to expand to additional markets will be immediately implements.  On Sept. 28, DOGPATCH USA will open in Arkansas theatres, along with NY and LA exclusives. This documentary feature tells the story of the now-defunct theme park which was based on characters from the Lil' Abner comic strip by Al Capp.

OPPORTUNITIES IN THE ARKANSAS PRODUCTION BOOM? - As N.W. Arkansas businesses enjoy the $70+ million in production funds currently being spent by HBO on Season 3 of "True Detective," the availability of experienced crews has grown significantly - while the supply of cinema production equipment has been squeezed out. There is talk of additional HBO funded productions. But regardless, with two smaller-budgeted features in the works for HHSE - and two "event level" features being pursued - HHSE is beginning to investigate the opportunity to allocate some portion of the current off-balance sheet production funding to build-up production equipment inventory and to possibly enjoy third-party rentals when such gear is not in use. This concept is still in the research stage, but appears to make sense based on the lucrative State of Arkansas incentives, the current commitments for funding of two new features and the prospective production of the two "event" features.

Friday Updates on HHSE & Various Projects

Good Afternoon HHSE Friends & Followers - here's a quick summary of a few key items of interest.

1).  BONOBOS / SONY - Street date is August 7, and the HHSE shipments were received in time and in good condition; great way to start this important wholesale relationship for physical DVD release.  Additionally, placements for Video-On-Demand (also Aug. 7) are across the board at all major sites...

2).  AUDIT UPDATE - HHSE received a request from the auditors on Tuesday for additional backup detail on the net positions for the company's back list library (as these figures impact both the "royalties payable" balance sheet entry, and the "producer recoupment" balance sheet entry).  Staff is on this task already. 

UPDATE:  HHSE provided back-up for 117 titles to the auditors  on Monday - which fully satisfied this back-up document request. HHSE videos or products generating less than $10,000 in gross sales during the prior three years were excluded from this additional endeavor. ONE HUGE STEP CLOSER!. Also, for what it's worth, HHSE has engaged a very seasoned auditing firm and securities counsel for the Form 10 registration project. We are completely confident in their competency and direction to HHSE as to what items and issues are required for a Form 10 registration and expeditious acceptance. 

3).  THE RIOT ACT - Terrific response & support from key theatres after providing the V.I.P. screening link to this period-thriller.  Film opens Sept. 14.  Screen count is still being determined, but looks like at least TEN (10) locations within the State of Arkansas due to the historic basis of this film premise (based on a true incident - a murder - at the King Opera House in Van Buren, Arkansas). Other key markets include NYC, LA, CHI, PHIL, DFW and SF Bay Area.

4).  DOGPATCH USA - This whimsical documentary about the now defunct theme park in Arkansas will benefit from some licensed character support and promotions from the classic Al Capp comic strip, LIL ABNER.  This film will open in theatres on Sept. 28.

5).  OTHER UPCOMING VIDEO RELEASES - Activities are well underway for the forthcoming home video and V.O.D. releases of:  AMERICA UNITED, DAISY WINTERS, GETTING GRACE, HEXED, RIDE UNITED and TRINITY.  More details, packaging art and promotional support will be posted to this blog over the next few weeks.

6).  MYFLIX UPDATES - New title acquisition and on-boarding continues for the forthcoming launch of this exciting new digital streaming platform.  Consumer promotional campaigns are in the design / implementation stages for a coordinated launch. HHSE C.E.O. / MyFlix senior executive Eric Parkinson has been invited to participate in an industry panel at the upcoming MIPCOM Television Conference to discuss "The Big Shift" of entertainment from theatres, video and television over into the emerging digital streaming platforms (especially with the next generation of media consumers). MyFlix represents the RIGHT business model at the RIGHT time for HHSE!

7).  TWO NEW PRIVATELY FUNDED FEATURES - HHSE has been approached by private investors to finance both the PRODUCTION and the DISTRIBUTION of two commercial film projects. These ventures came about in large part as a result of the superb quality of THE RIOT ACT production in Arkansas, which is generating good "buzz" among the local investment community. Watch for more details on this blog within the next month. 

SONY Design Team presents HHSE with Video Concept art for "SLEEPER CELL" (f.k.a. "The Algerian")

Good Morning HHSE Friends & Followers - Now that we have gotten past the initial DVD release launch through SONY, we are moving ahead on additional titles, including our 2015 theatrical release of "THE ALGERIAN."  In order for the movie to NOT sound like a foreign-language film to consumers, the more timely title of "SLEEPER CELL" has been chosen as the primary Video release title.  Listed below are FIVE (5) new campaigns provided to HHSE from the SONY design team, each of which seems visually stronger for a DVD box size than our prior theatrical release art.

We don't yet know which of these will be selected by SONY - or if a new concept or variation will be the final choice. But we are definitely impressed with the variety and impact from each concept.

CHEERS!  HHSE!


CAMPAIGN 1

CAMPAIGN 2

CAMPAIGN 3

CAMPAIGN 4

CAMPAIGN 5

The Characters from "LIL' ABNER" Comic Strip - come to life in DOGPATCH USA Film

Greetings HHSE Friends & Followers - The Al Capp comic strip "LIL' ABNER" was a worldwide hit in the 1960's and 1970's - with millions of daily readers, and eventually, it's own THEME PARK known as DOGPATCH USA.

Hannover House has entered into an agreement with the producers of "Dogpatch USA" for a limited theatrical release and servicing arrangement for videos into Walmart for the holiday collector's season. This impressive documentary tells the history of the Arkansas-based Theme Park, and it's unusual genesis and eventual downfall. Watch for more details - including new POSTER ART and TRAILER here soon - along with additional details on theatres that will be showing this documentary feature.

https://www.facebook.com/DogpatchUSA.documentary/

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In other HHSE / MyFlix news:

1).  BONOBOS DVDs will hit stores in August through SONY - shipments now in progress!

2).  HHSE Q2 Filing has been formatted and submitted to our auditors to provide the most current "reporting period" data for the Form 10 filing.

3).  AMERICA UNITED (the star-studded concert event from ABC Television, featuring Janet Jackson, ZZ Top, Snoop Dogg, Clint Black and many other superstars), will be released in early November to DVD, to coorespond to VETERAN'S DAY promotions.

4).  THE RIOT ACT has a new theatrical launch date:  Friday, Sept. 14 in NY, LA and other key markets. Watch for new trailer and poster art to be released in the next few days.

5).  ON-BOARDING / UPLOADS for MyFlix titles continues at a solid pace, while the visuals for the home page and title-genre' pages continue toward final tweaking.

MORE-TO-COME!!

Snapshots of typical day at Hannover House / MyFlix

Greetings HHSE Friends & Followers - while "Friday the 13th" is a rare calendar event, for all of us on the HHSE / MyFlix team, it's just another day in paradise!

Here's some snapshots from around the office and at the printers - showing some of our team and the sort of activities that we often handle each day.

HAVE A TERRIFIC WEEKEND!

Friday Morning started with another PRESS CHECK, this time for "BONOBOS" DVD Wraps, designed specifically for the "RENTAL" home video market (serviced by SONY).  HHSE Designer JON McCALLUM hams it up on the Just-Us Printers control panel after HHSE C.E.O. ERIC PARKINSON comments to the press team on color densities for visual impact.

Back at the office - in living proof that "ADVERTISING WORKS" - HHSE office manager MARYEVELYN JONES marvels at this month's "QUIETUS" ad in STRAND MAGAZINE, while HHSE President FRED SHEFTE rolls up his sleeves and helps with the fulfillment of HUNDREDS of copies of re-orders for BARNES & NOBLE STORES of this popular selling HHSE item!  Office Delivery Notification Expert (aka "Coco the dog") wags his approval of the company's ongoing success at sales!

But there's so much more to do on the core activities everyday.  Today involved:  new artwork updates from the SONY design team for ALGERIAN ("Sleeper Cell"), GETTING GRACE and THE LENNON PROJECT... video packaging design work for SPICES OF LIBERTY, the star-studded AMERICA UNITED and the insane Redbull Moto-Cross extravaganza RIDE UNITED.  The selection of images for both the front and back art of DVD and BluRay releases is very crucial to converting a browsing shopper into a purchasing consumer!

AND LAST BUT NOT LEAST... the ongoing "on-boarding" of approximately thirty titles PER DAY to the data-bank for the MYFLIX streaming site... ranging from Major Studio theatrical hits, to specialty independent films in a wide range of genres:  Action, Adventure, Animation, Christian, Classics Comedy, Drama, Family, Foreign, Full Contact Sports, Horror, Manga, Science-Fiction and Television Episodics to name a few! -

JUST ANOTHER DAY IN PARADISE, aka HANNOVER HOUSE / MYFLIX !