Dear HHSE Friends & Followers - HHSE Management (and some shareholders) were surprised to see that the OTC Markets had downgraded our disclosure status from CURRENT to YIELD. This was surprising because we had not only include EVERY item that the OTC Disclosures requires, but that we had ALSO included quite a few of additional disclosures and reports that the Securities and Exchange Commission requires for 10Q and 10K filings.
However, the OTC Markets is not the S.E.C., and they have the ability to require that filings be in a particular order and format. So, in order to restore our CURRENT listing status with the OTC, the 3-31-2020 report has been chopped in half, and reformatted and re-ordered to fall into the compliance structure that is the preferred layout for OTC review.
That said, all of the additional disclosures will remain on the S.E.C. 10Q report for 3-31-2020, and for those preferring a condensed version, the OTC Markets listing will suffice.
ONWARD!
Thursday, May 21, 2020
Sunday, May 17, 2020
HHSE hires staff for MyFlix Launch - Sets August 25, 2020 as Initial Consumer Launch
Greetings HHSE Friends & Followers - As previously communicated, the current market conditions from the worldwide COVID-19 Pandemic have resulted in nearly a doubling of industry-wide revenues from Streaming Media (and Video-On-Demand sites). This dynamic market trend perfectly complements our strategy for the launch of the MyFlix one-stop digital superstore site.
MyFlix has hired four full-time staff members for a pre-build beginning Monday, June 1, 2020 - and an initial consumer launch on August 25, 2020. At this time, MyFlix is targeting to have "at least 2,500" titles available on the launch date (from a combined catalog of more than 15,000 titles from 43 supplier studios). To enhance the credibility of the site, an assortment of approximately 90 titles from Major Studio Suppliers will be prominently promoted, along with genre-categorized offerings from all of the independent and television supplier partners.
Initial marketing will be targeting high-consumption film audiences, reachable through entertainment media specific websites and through targeted social media. As revenues grow - supplemented from proceeds of the Hannover House S1 Registration - hundreds of additional titles will be added each month and consumer advertising and publicity outreach will grow proportionately.
The MyFlix staff and executives will be practicing "social distancing" at the offices, including the wearing of safety masks until such time that scientific and medical data supports a relaxation of such precautions. The August 25, 2020 launch date corresponds with the anticipated "second wave" of required lock-downs for the USA Market, resulting from the premature relaxation of social distancing practices that some states are now encouraging. MyFlix believes that the many millions of consumers impacted by the ongoing COVID-19 pandemic will continue to actively purchase direct-to-home streaming entertainment... and that the wide variety of independent, art, foreign, action, genre and esoteric programming available on MyFlix will prove to be a welcomed alternative for those with "Netflix Fatigue" or general exhaustion of key titles from other high-profile sites.
Newly hired positions are: Marketing Director, Web Programming Director, Data Manager and Programming Coordinator. UPDATE (June 8, 2020):On or about June 1st, a general press release will be posted listing these new staff hires, along with a group photo of the MyFlix team at work. Two of our four new MyFlix support staff hires did not start last week as previously planned... one was due to delays in relocation to NW Arkansas and the other due to a slightly longer requested "notice" period for a prior employer (to wrap-up a prior streaming-related project). This does not impact our timeliness for the August 25 initial consumer launch.
* * * * *
OTHER HHSE UPDATES:
* DWAC / DTCC - We have been informed that our application for Electronic Clearing of HHSE stock shares has been APPROVED. This is actually a surprisingly impactful development for several reasons:
a). LARGE INVESTORS - we have been handicapped from attracting some large and institutional investors to become HHSE shareholders because of the prior "paper certificate" handicap. With share issuances now available electronically, this obstacle has been removed.
b). TRACKING AND POLICING OF SHORT SALES - The DTCC clearing makes it easier to track and block short-sellers by eliminating the uncertainty of potential share availabilities against which to borrow to cover a short sale position.
c). SUPPORTING BROKERS - There are only a few brokerage houses at present in the USA that will handle the clearance of paper certificates. But the electronic clearing opens up HHSE Shares to be cleared by almost all brokerage houses.
It will take up to two weeks for Standard Registrar to complete the process of converting HHSE transactions over to all electronic issuances. Additional updates will be provided on this blog.
* FORM 10 UPDATE - HHSE continues to resolve the issues of third-party audit verifications and other document requirements. HHSE has also received pledges of funding commitments of more than $1-mm from the initial $1.5-mm of the S1 Offering (i.e., 50-mm shares at $.03 each). So, there's a tremendously attractive and beneficial reward within reach. Additional updates will be provided on this blog.
* BELLE STARR - HHSE has been negotiating a film financing venture to secure $5.5-mm to cover all costs for the production of the historic western, "The Legend of Belle Starr" (which will have two major "A" level stars). Subject to COVID-19 safety considerations, this film could begin shooting in September, 2020. Additional updates will be posted on this blog.
* WILDFIRE & "VIRTUAL CANNES" MARKET - The first-ever "theatrical trailer" from the current feature production of WILDFIRE is in the works... and will debut at the Virtual Cannes Market that is being held next month (in lieu of the physical Cannes Market in France, which was cancelled due to COVID-19 issues). While the trailer will have it's world premiere debut via the Virtual Cannes Market, HHSE shareholders will be able to see it the next day, via a link that will be posted on this blog site.
HHSE THANKS OUR SHAREHOLDERS AND OUR "LONGS" FOR YOUR SUPPORT!
MyFlix has hired four full-time staff members for a pre-build beginning Monday, June 1, 2020 - and an initial consumer launch on August 25, 2020. At this time, MyFlix is targeting to have "at least 2,500" titles available on the launch date (from a combined catalog of more than 15,000 titles from 43 supplier studios). To enhance the credibility of the site, an assortment of approximately 90 titles from Major Studio Suppliers will be prominently promoted, along with genre-categorized offerings from all of the independent and television supplier partners.
Initial marketing will be targeting high-consumption film audiences, reachable through entertainment media specific websites and through targeted social media. As revenues grow - supplemented from proceeds of the Hannover House S1 Registration - hundreds of additional titles will be added each month and consumer advertising and publicity outreach will grow proportionately.
The MyFlix staff and executives will be practicing "social distancing" at the offices, including the wearing of safety masks until such time that scientific and medical data supports a relaxation of such precautions. The August 25, 2020 launch date corresponds with the anticipated "second wave" of required lock-downs for the USA Market, resulting from the premature relaxation of social distancing practices that some states are now encouraging. MyFlix believes that the many millions of consumers impacted by the ongoing COVID-19 pandemic will continue to actively purchase direct-to-home streaming entertainment... and that the wide variety of independent, art, foreign, action, genre and esoteric programming available on MyFlix will prove to be a welcomed alternative for those with "Netflix Fatigue" or general exhaustion of key titles from other high-profile sites.
Newly hired positions are: Marketing Director, Web Programming Director, Data Manager and Programming Coordinator. UPDATE (June 8, 2020):
* * * * *
OTHER HHSE UPDATES:
* DWAC / DTCC - We have been informed that our application for Electronic Clearing of HHSE stock shares has been APPROVED. This is actually a surprisingly impactful development for several reasons:
a). LARGE INVESTORS - we have been handicapped from attracting some large and institutional investors to become HHSE shareholders because of the prior "paper certificate" handicap. With share issuances now available electronically, this obstacle has been removed.
b). TRACKING AND POLICING OF SHORT SALES - The DTCC clearing makes it easier to track and block short-sellers by eliminating the uncertainty of potential share availabilities against which to borrow to cover a short sale position.
c). SUPPORTING BROKERS - There are only a few brokerage houses at present in the USA that will handle the clearance of paper certificates. But the electronic clearing opens up HHSE Shares to be cleared by almost all brokerage houses.
It will take up to two weeks for Standard Registrar to complete the process of converting HHSE transactions over to all electronic issuances. Additional updates will be provided on this blog.
* FORM 10 UPDATE - HHSE continues to resolve the issues of third-party audit verifications and other document requirements. HHSE has also received pledges of funding commitments of more than $1-mm from the initial $1.5-mm of the S1 Offering (i.e., 50-mm shares at $.03 each). So, there's a tremendously attractive and beneficial reward within reach. Additional updates will be provided on this blog.
* BELLE STARR - HHSE has been negotiating a film financing venture to secure $5.5-mm to cover all costs for the production of the historic western, "The Legend of Belle Starr" (which will have two major "A" level stars). Subject to COVID-19 safety considerations, this film could begin shooting in September, 2020. Additional updates will be posted on this blog.
* WILDFIRE & "VIRTUAL CANNES" MARKET - The first-ever "theatrical trailer" from the current feature production of WILDFIRE is in the works... and will debut at the Virtual Cannes Market that is being held next month (in lieu of the physical Cannes Market in France, which was cancelled due to COVID-19 issues). While the trailer will have it's world premiere debut via the Virtual Cannes Market, HHSE shareholders will be able to see it the next day, via a link that will be posted on this blog site.
HHSE THANKS OUR SHAREHOLDERS AND OUR "LONGS" FOR YOUR SUPPORT!
Thursday, May 7, 2020
HHSE Shareholders - What would you do if you were holding a winning lottery ticket?
Good Morning HHSE Friends & Followers – Recent stock trades for HHSE sparked the question that some of us would face when holding a winning lottery ticket. Do we immediately announce it, cash it in, and decide what to do with the proceeds later? Or, do we proceed with careful deliberation, strategic planning, and perhaps even implement the behind-the-scenes formation of a trust or tax-beneficial entity for the receipt of the proceeds before alerting the Lotto officials?
In the wake of the current COVID-19 Pandemic and its impact on businesses and task efficiencies, HHSE managers are facing a lot of pressure to cash our winning lotto ticket NOW. Yes, our Form 10 Registration, our substantially pre-subscribed initial S-1 Funding, our MyFlix launch and our backlog of exciting HHSE news is like holding a winning lottery ticket in our collective, corporate pockets. We know that in short order, sophisticated traders predict that HHSE shares will be trading for north of $.05 each and with the level of robust volume that makes a “last minute manipulative trade” of 5,000 shares ($41) - to “paint” a false value on the stock - into a non-event from desperately pathetic parties.
Yes, the HHSE stock has been targeted by a group of stock manipulators – actually more akin to some punks on a street corner than an actual organized crime effort by career players. Regardless, HHSE management has been working with the FBI Special Crimes investigators for several years now, and we know the identities of these four individuals. Even more telling, we know exactly which trading accounts they are using, and know that each of their transactions are being monitored and recorded… so we know when they put up a large “wall” of shares that it’s not real, and we can see when they post economically unjustifiable sales and wash-trades to attempt to manipulate the HHSE stock price. Seriously, these four have made many HHSE sells of under 100 shares with a face-value of less-than-one-dollar ($1) in order to artificially manipulate the share price. What’s the average retail commission on trades? Is it $6.99 per trade?
Well, there’s a boatload of trade evidence of uneconomical transactions designed to “paint down” the HHSE stock price… so it will be quite a karmic moment to watch these guys try to squirm around the conflict about what brilliant stock traders they think they are, reconciled with so much evidence of intentional loss trades.
There’s so much in motion for HHSE right now that it’s very tempting to start releasing the news. We would love to update shareholders on the financing for Meltdown, Belle Starr, Wildfire and four other films not previously mentioned. We would love to release news about record-breaking streaming revenues in March and April. We would love to release news about new suppliers (and “exclusive programming”) for MyFlix…. and so much more.
But instead of immediately jumping up and declaring our wins from the Lotto, we are instead following a path that we feel is ultimately best for our shareholders: careful and deliberate movements so that the volume and value of HHSE shares and the company can be maximized.
In the meantime – it would be telling to see the results of a bit of buying pressure on the HHSE stock… now that these guys have finally pushed it to less than a penny (and instantly releasing a pre-written brag post to stock chat boards). What would it take to pop the stock to $.02 immediately? 1-million shares? 2-milion shares? Maybe even less. But it seems like even $.02 would be a good base for HHSE as the corporate filings and current activities arguably support a far higher valuation. Time will tell. But for now, we have the confident and quiet smile across our faces… because we know we have what is essentially a winning lotto ticket in our HHSE pockets.
So please don't let the street punks pee on your path. HHSE is a winning company and the winds of positive momentum will blow that mess back into their faces. Stay strong, stay safe!
Sunday, May 3, 2020
Update on Form 10 Filing
Greetings HHSE Friends & Followers - As communicated in a recent blog, all of the work required of the HHSE management for use in the updated Form 10 (including the recently added 3-31-2020 details), was completed in a matter of days (by mid-April).
However, getting third-party responses to various issues (including audit verification of material items and revised corporate tax returns to reconcile with the amounts of the IRS payroll tax levies), have both proven to be impacted by the current COVID-19 general shut down of businesses in the U.S.A. While our audit team is still working "from home" - the GAAP requirement of receiving third-party verification on all major items of material value is challenging when the third parties are businesses that are functionally closed at this time. Even trying to contact the IRS telephonically is impeded - so these issues have created a slightly longer delay in the finalization of the Form 10 than would customarily exist.
We are investigating the options to file "as is" under the COVID-19 limitations, and if such a move would be deemed reasonable by the S.E.C. under the current circumstances.
There is no precedent in the history of the Securities and Exchange Commission for exceptions to customary requirements in a time of general emergency. Yet, there is also no precedent for the general shut-down that COVID-19 has inflicted on our society and business and governmental operations. In fact, the S.E.C. was one of the very first agencies to recognize the contamination threat from the Coronavirus when they made the decision to indefinitely shut-down their Washington, D.C. offices back in early March. Accordingly, there is an expectation from HHSE advisors that a reasonable request would be considered.
As new information is obtained, we will update this blog.
Meanwhile, stay safe and stay long.
Best Wishes - HHSE MANAGEMENT
However, getting third-party responses to various issues (including audit verification of material items and revised corporate tax returns to reconcile with the amounts of the IRS payroll tax levies), have both proven to be impacted by the current COVID-19 general shut down of businesses in the U.S.A. While our audit team is still working "from home" - the GAAP requirement of receiving third-party verification on all major items of material value is challenging when the third parties are businesses that are functionally closed at this time. Even trying to contact the IRS telephonically is impeded - so these issues have created a slightly longer delay in the finalization of the Form 10 than would customarily exist.
We are investigating the options to file "as is" under the COVID-19 limitations, and if such a move would be deemed reasonable by the S.E.C. under the current circumstances.
There is no precedent in the history of the Securities and Exchange Commission for exceptions to customary requirements in a time of general emergency. Yet, there is also no precedent for the general shut-down that COVID-19 has inflicted on our society and business and governmental operations. In fact, the S.E.C. was one of the very first agencies to recognize the contamination threat from the Coronavirus when they made the decision to indefinitely shut-down their Washington, D.C. offices back in early March. Accordingly, there is an expectation from HHSE advisors that a reasonable request would be considered.
As new information is obtained, we will update this blog.
Meanwhile, stay safe and stay long.
Best Wishes - HHSE MANAGEMENT
