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.
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):
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."