Significant and Positive Developments / Updates for Hannover House (HHSE) and MyFlix

Greetings HHSE Friends & Followers.  What a crazy year we had in 2020, but what an exciting year we are facing beginning in just the next few days!

Here's a few updates, including the most critically requested information on our FORM 10 Filing, the S1 Offering and the Launch of the MyFlix Consumer Site & Service.

1).  MYFLIX - If we were launching a streaming service with one (1) movie via a self-service "ROKU" Channel, we might have been able to create some momentary shareholder excitement... but we would not be creating a legitimate, sustainable service with repeat customers and a major revenue base. Accordingly, it was not surprising to discover (over the past few weeks of work with our web design supplier) that a major site like MyFlix - with access to over 15,000 titles - requires substantial infrastructure and technical attention for proper operations.  

What we do NOT want to do is launch with a skeleton site, or with a site featuring only 1,000 titles.  On the other hand, we also do NOT want to launch the site and see an immediate crash from data overload and streaming constrictions. Our plan was to publish the consumer site THIS WEEK (between Christmas & New Years), under the belief that there would be a lot of people at home due to Holidays and Covid. But the site simply is not ready, even with a simplified graphics and tendril model.  

Based on the ongoing problems with Covid and the delayed vaccine roll-out, we believe that people will STILL be mostly at home for some time... and that a release of the site in January is far more likely to not encounter technical problems.

2).  FORM 10 - As described previously, the "going-forward" business model for HHSE is two fold, consisting of the MyFlix service and the production of higher profile features. The prior model of acquiring and distributing micro-budgeted indie films for DVD release is no longer viable due to the maturation of the home video market away from low-budget, non-star-driven titles (plus, we have discovered that many of those micro-budget producers are delusional nuts - and prone to litigation). 

Accordingly, much of the body of the Form 10 Registration concerning operations is focused on MyFlix and not surprisingly, many details of the MyFlix site and supplier partner details are disclosed in the Form 10. With technical issues currently impacting the launch date of MyFlix, we find ourselves facing one of two principal choices:  1).  Delay the release of the Form 10 until MyFlix is launched; or 2). Revise the Form 10 to remove non-public details about MyFlix, and release this registration immediately after these edits. We have decided to go for option two, and we have been editing / updating the F10 the past three days so that it's publication will not inadvertently expose MyFlix supplier partners and unique site services. We do not want to self-sabotage MyFlix by revealing the details of the service before it is functionally "live" to consumers. 

With respect to Form 10 financial details, we have confirmed that there is no issue regarding our filings being viewed as "stale" under S.E.C. timing requirements. So, we will all enjoy an amazing start to 2021... which is more poetic than launching during a historically notorious year anyway. 

3).  S1 FILING - The filing of the S1 will be just a few days after the publication of the Form 10, and we have received strong indications from media partners and large investors that the initial block of 50-mm shares at $.03 / share are poised to sell out quickly. The likelihood of the second tranche of shares (50-mm at $.05) being sold will likely depend upon the public market's pricing for shares at that time. The funds raised will be utilized 70% for MyFlix and new operations, and 30% for existing debt management

4).  DEBT-TO-EQUITY - In advance of the Form 10 and S1, HHSE made deals to exchange approx. $500,000 of debt into HHSE restricted stock shares, thus improving the company's balance sheet and addressing creditors with a plan that could show them a significant upside.

5).  LEGAL UPDATES - HHSE participated in a court hearing last week regarding the "Getting Grace" dispute.  Months ago, we were informed (by the Company's prior counsel in Pennsylvania) that our settlement terms had been accepted but not documented. After months of delays, HHSE ultimately  prevailed in getting the case moved into Arkansas - where the local judiciary has little tolerance for inappropriate and unsupported claims by plaintiffs and their attorneys. Following last week's hearing, HHSE and our new counsel in the matter (Steven M. Kay) have renewed confidence that we will prevail in the dispute (instead of making a "settlement"), and were encouraged by the Judge's attention to a discussion about the appropriateness and applicability of awarding legal fees to Hannover House and other improperly named defendants. A long-term schedule was set, and this was a VERY GOOD day for HHSE. Stay Tuned...

GET READY FOR AN AMAZING 2021~!

Hannover House sends best wishes for a speedy recovery to HHSE Shareholder & Friend, Dr. Rico Simonini

Dear HHSE Friends & Followers:  as we find ourselves on the dawn of the COVID-19 Vaccine, now is not the time to let down our guard and potentially become infected.  

Certainly, this was not the case for HHSE shareholder, friend (and TOYS IN THE ATTIC voice actor) Dr. Rico Simonini - of Cedars Sinai Hospital in Los Angeles - whose exposure to COVID-19 was assuredly the result of his care for patients.  Still, Rico is now battling for his life, facing double pneumonia and other COVID-19 effects.

We send Dr. Simonini our best wishes, hopes and prayers for a speedy recovery.  

In addition to his work with Hannover House in TOYS IN THE ATTIC, Rico has appeared in quite a few feature films, including MAX PAYNE, A GOOD DAY TO DIE HARD and in the starring role as Frank Sinatra in last year's FRANK AND AVA. 

Godspeed and recovery to a great guy and friend!  BE SAFE, HHSE FRIENDS!

HHSE Advisors for Legal / Accounting & Filing Matters

 Greetings HHSE Friends & Followers - some shareholders have contacted management today with concerns about legal filings, payments, audit formats and other non-issues that have been suggested by stock-manipulators.  In respect of these concerns, we will quickly address such misinformation:

1).  AUDIT FORMAT - The HHSE Auditing company is PCAOB Certified, and has recently completed three other Pub-co Audits and filings. We are confident that their procedures and the formatting of our filing and their report coverage complies with S.E.C. rules.

2).  F10-S1 ATTORNEY - The HHSE Attorney handling the review and re-draft (as needed) of both the F10 and S1 filings has many years of experience in these areas, including a recent F10 filing that received quick S.E.C. approval.  We are confident that the advice and structural assistance being provided is top shelf.

HAVE A GREAT DAY / FANTASTIC WEEKEND - and HAPPY CHANNUKAH (to those for which this greeting applies), and an awesome month of Holiday and Religious celebrations!

R.I.P. to Hannover House star Tommy "Tiny" Lister / 6'5" Lead Actor from AMERICAN JUSTICE

 HHSE Mourns the sudden death of Tiny Lister today in Los Angeles at the age of 62. Tiny was anything "but" tiny in stature, standing over 6'5" and carrying a body mass of muscle that some guessed to be north of 350-lbs of power and might.

Tommy "Tiny" Lister was the star of AMERICAN JUSTICE from Hannover House - which was one of the first feature films shot in Oklahoma under the State of Oklahoma Film Incentives program.  Hannover House had a successful home video release of AMERICAN JUSTICE through Walmart, Target, Best Buy and Redbox (among others), plus successful streaming placement through Vision Films to most major digital platforms.  The film has not yet been sold to domestic television, but there have been inquiries recently from Starz and Showtime. 

R.I.P. big man, you will be missed....

https://www.youtube.com/watch?v=_3jJLFi2CmY

Wyoming S.O.S. Adjusts HHSE A/S to Accommodate first $4-mm of S1 Registration Offering

 A key step for the F10 / S1 Fiings has been accepted as of today by the Wyoming Secretary of State, namely, the increase in A/S to 980-mm for Hannover House / HHSE.  Stay Tuned...

HHSE insights on Disclosure, Timing and Actions

Greetings HHSE friends & followers - While the Coronavirus pandemic rages ever more out-of-control, the anticipated turmoil in the streets following the Presidential elections did not manifest, and the general stock market response has been surprisingly robust. Accordingly, most of the general market apprehensions expressed by key S1 financing parties have been placated - and HHSE is back on a good track for the completion of our corporate filings.

As often stated in this blog - and to a lesser extent in press and OTC Markets filings - the primary point of HHSE filing the Form 10-12(g) registration is to elevate the company's credibility and accounting transparency in order that the S1 raising can occur. Theoretically, a S1 could be filed without first being preceded by the Form 10-12(g), but the opportunity to uplist off the Pinksheets is more assured if we follow this prescribed order.

Over the next few days, there will be several filings with the S.E.C. Edgar Department that cover HHSE filings and activities. The first should publish tomorrow (Monday, Nov. 16) or at the latest on Tuesday. This first filing covers a series of Board of Directors actions relating to the Form 10, the S1, the change in share structure and a courtesy "advance notification" to the marketplace via the legitimacy of the S.E.C. Edgar Database, that HHSE is moving forward with a new share issuance under the S1. Our counsel advises that advance notification prior to a new stock offering / issuance (even if at a per-share price that is nearly 3-times the current level ), is a diligent and respectful move for formal, prior shareholder notification. Other filings this week will cover operational issues and legal actions impacting the company's pre-offering balance sheet.  The filings will culminate with the Form 10 registration, quickly followed by the S1-offering (which is tied closely into the Form 10 business activities for the Company).  

Many shareholders have sent emails to HHSE managers discussing various prognostications about the market's potential response to the Form 10 filing and the S1 offering. All have been positive and quite hopeful in their predictions of attracting new shareholders, new volume and significantly improved pricing per share. Obviously, we hope that these shareholder predictions prove true - certainly there is a logical basis for such expectations. While 2020 has been a challenging year on so many levels... it has proven to the world that streaming services are the entertainment delivery medium of both TODAY and for the FUTURE... lending great interest into the company's MyFlix business model.  STAY TUNED....

The Right Place, but at the Wrong Time

Good afternoon HHSE Friends & Followers - As shareholders in HHSE know, the purpose of filing the Form 10-12(g) Registration is to elevate the company to fully-reporting so that we can promptly elevate our OTC Status, file a S1 Registration offering, and raise the significant funding needed for a commercial launch of MyFlix (among other corporate endeavors that will benefit from the S1 raising).  

So the whole point of the Form 10 Registration has always been to set a receptive stage for a stock offering and raising.

Accordingly, it's not surprising that the company's advisors have strongly recommended (today) to delay the filing of the Form 10-12(g) registration - in the wake of THREE powerful (and not favorable) market indicators.  In the past week, the market receptivity to an OTC Markets S1 offering has been impacted by:

1).  MARKETPLACE UNCERTAINTY - the Dow Jones declines over the past week are indicative of a general uncertainty within the marketplace.

2).  MASSIVE INCREASES IN CORONAVIRUS CASES, HOSPITALIZATIONS and DEATHS - There is concern that the second wave of Covid-19 is now in high-gear and could have a much deeper economic impact than the initial and brief shut-downs from back in March.

3).  UNCERTAINTY ABOUT NOV. 3 ELECTIONS AND LITIGATION - There is concern that the results of the election next Tuesday could be contested - adding uncertainty to the markets - and there are additional rumors of impending lawlessness from overly enthusiastic political supporters on both sides. 

The HHSE Form 10-12(g) contains a lot of new and not-yet public information, including assumptions that are based on the timely filing of the S1 Registration & Offering.  Accordingly, we cannot file the Form 10 unless we are confident that filing the S1 Registration within 5-days is a wise move.  As of today - and due to extreme uncertainty in market conditions - we cannot confidently proceed as if this is a great time to file our registration and offering.  It's frustrating, to be "all dressed-up and ready to go to the ball..." only to be told that the event venue is on fire at this present moment.  

Accordingly, let's all hope for a peaceful resolution to the elections, a thoughtful strategy to attack COVID, and a favorable marketplace response to these developments. The addressing and resolution of these issues are believed to be key factors to re-establishing a greater stability within the markets. 

We still have several more weeks before the Sept. 30 financial review (addendum to year-end audits) risks becoming "stale" under S.E.C. timelines.  We do not intend to wait longer than a small allotment of this remaining time for the market conditions to improve.

We realize that some HHSE longs have grown impatient.  So we ask them, do YOU think this is a good time for us to file?  We believe an objective and reasonable analysis of current market conditions will result in the same recommendation as the HHSE advisors. We apologize for those that wanted the filing to occur in October "no matter what." But at what cost do we proceed when conditions are far from ideal?  We want to be in a position in which the first $1.5-mm of the S1 sells out in less than 10-days... and market stability is a requirement for this to happen. 

MONDAY - Nov. 2 - UPDATE - Greetings HHSE Shareholders:  there has been some distress regarding the above blog, in that some are wondering if we are waiting for COVID to be cured, or the Dow Jones to recover (again) before filing the Form 10 and S1.  Apologies for creating a lack of clarity.  

What we are waiting for is the resolution of the Presidential election and the expected (rumored or predicted?) uncertainty and conflicts to be derived therefrom.  Over the past 15-months, HHSE has been communicating with prospective S1 supporters, including companies with existing activities in the digital streaming arenas, who have multiple incentives to support the MyFlix venture. The consensus last week was that the general uncertainty in the marketplace - fueled by at least THREE major factors - would temper the enthusiasm of general market support for the S1 offering. While we cannot wait for a resolution of all issues - we DO believe that a peaceful resolution to the U.S. elections will help calm concerns that are presently impacting the timing of HHSE filings.  We are not anticipating post-election issues that are not resolved quickly... and that this resolution will restore market confidence.

Stay tuned....

HHSE approved for "Current Status" listings - NO LATER than pre-market MONDAY

 Greetings HHSE Friends & Followers - OTC Markets just confirmed by phone that the Q2 reports meet compliance requirements and that HHSE has been approved for restoral to "Current Information Status" - no later than pre-market Monday (could happen sooner, too).

We apologize for the disruption that occurred as a result of allowing the OTC Pinks subscription to expire, in our quest to apply payment to the OTC QB instead.  Allowing the subscription to lapse triggered a slow renewal process that we did not expect (based on prior times that the company had to renew the OTC Pink access subscription).

We hope everyone has a fantastic weekend - and for those of you living in an Autumn Fall Foliage zone, we hope that you enjoy the colors and beauty of this seasonal moment in time.  Pictured below is the lovely LAKE LUCILLE in Fayetteville, Arkansas, reflecting late afternoon sun off the leaves and into a pastel palette of reflections across the water's surface.

ONWARD!

Various Updates on HHSE Issues / OTC Markets / Filings / Legal Issues

Greetings HHSE Shareholders & Friends - Quick summaries on items and issues that Shareholders have been asking about:

OTC MARKETS LISTING - It's been TWO (2) weeks since HHSE paid the renewal fee for our OTC Markets access restoral... and 10-days since we provided additional funds and documents as were requested at that time.  In the past, whenever the OTC Pinks subscription expired, all we had to do was wire the funds and it would be resolved the next day.  Now, however, there are new procedures regarding reinstatement of listed equities... including a thorough review of the HHSE shareholder's lists (including both Objecting Beneficial Owners - OBOs - and Non-Objecting Beneficial Owners - NOBOs), which the OTC Markets told us "normally takes three weeks" under this new procedure.  That said, the primary OTC Markets representative that has been helping HHSE over the past few years said that it was LIKELY that we will be reactivated by tomorrow (Friday, Oct. 16), based on our 10+ years of prior membership and their effort to push us through as a priority issuer.  We will update this BLOG as soon as we are reactivated... which could be tomorrow.  SUNDAY UPDATE - HHSE was approved by the OTC Markets - after the review of the Shareholder's list - on Friday evening, and our active status has been reinstated. However, our ability to upload the Q2 and Q3 financials requires a manual entry tomorrow - so that will now happen and enable us to restore "current" listing for the company.  

TUESDAY NIGHT - UPDATE - HHSE was fully approved (again) as an issuer for OTC Markets, and our access to the site was reinstated Monday night.  The company has prepared the Q2 financials and the Q3 financials (along with all required disclosures). There are two issues of compliance that HHSE is addressing in the morning with the OTC Markets (formatting and breadth of disclosure under new rules).  We anticipate these being resolved tomorrow and the Q2's posted before end of day / Q3's on Thursday.  Moral of the story:  due to the new compliance rules for OTC Markets, it's definitely best to NOT EVER allow an issuer's subscription to lapse... it will literally takes WEEKS to get reinstated (!!).

Q2 / Q3 FILING & AUDITS - Once the OTC Markets access is restored, we will file the Q2 and Q3 filings in order to be restored to "current" status.  We have also sent the auditors the Q3 reports for inclusion in the Form 10 filing, to preserve the recency of the financials.

MYFLIX INITIAL LAUNCH - We did not hit our target response goals with the initial web teaser ads... which our marketing team consensus blames on "poor graphics" and "too much text."  We are reworking these layouts and will try again.  That said, the point of these quiet tests is to tweak the promo ads BEFORE we launch the site... so that the day we turn on the MyFlix site and APP, that we have a major consumer blast campaign ready to activate (and one that we have determined "works"). 

Some Shareholders have also asked for a pre-Form 10 update on a few LEGAL issues for Hannover House.  AT THE REQUEST OF CORPORATE COUNSEL (10-21-2020)- WE HAVE BEEN ADVISED TO ONLY POST ON THE "BLOG" ACTUAL COURT FILINGS - AND NOT COMMENTARY OR STRATEGY.

HHSE and MYFLIX have a winning business plan that completely AVOIDS the LUNACY of dealing with micro-budgeted Indie Producers and the acquisition of third-party titles for distribution.  HHSE has developed a financing structure for the production of HIGH-END feature films (with significant budgets and legitimate stars), and on the opposite end of the spectrum, MYFLIX is riding the Tsunami Wave of consumers gravitating away from DVD and BluRay in favor of streaming directly to their homes.  Two solid business models... combined for strength and diversity as HHSE matures into the ever evolving home entertainment market.  STAY TUNED!

Soft Launch of MYFLIX Consumer Awareness Starts Today

 Greetings HHSE Friends & Followers - The company is doing some last minute pre-launch "tests" of consumer promotional campaigns in support of MyFlix, which commence today.  We will be investigating which offers draw the greatest consumer response, as a guide for the formal ad campaign.  Watch this blog for screen grabs to be added later today showing some of the consumer outreach from paid ads, social media and press today.

Note: the consumer outreach activities launching today are NOT a launch of the MyFlix App and Site.  This is a launch of consumer promotions being tested in support of the official rollout (which is coming next). 

The roll out is a progressive ramp test, with extremely targeted Social Media and IMDB placements for the first few days until we have sufficient data to determine which of the internet ads is the most effective, if any. After two days, the Concept 3 has generated about 2-X the traffic as Concept 1 and 2, perhaps due to the legibility of the small ads (and text heavy Concepts 1 and 2).  

Our two agencies are already working on new concepts for Tuesday and Wednesday as the response for these initial layouts is not hitting marketing projections. This is the whole point of a soft consumer outreach launch... to tweak a campaign for efficiency before blasting big dollars behind it.  The next round of ads will have LIMITED TEXT to see if that helps with the click-thru rate. Stay tuned....

HHSE "Current" Status Restoration / Uplist / MyFlix & More

Greeting HHSE Friends & Followers:  

First of all, regardless of your personal political affiliations or leanings, we hope that you will join Fred Shefte, Eric Parkinson and Randall Blanton as we extend our sincerest best wishes for the recovery of President Trump and the First Lady from the COVID-19 virus.  With all of the turmoil and instability already affecting our nation, we do not need an additional political crisis at this crucial time, and we hope that their recovery is swift and complete.  For those of you directly affected by COVID-19 - whether through direct affliction or from the tragedy of watching loved ones die - as well as for all of us - we hope for a speedy solution to this worldwide viral crisis.

Meanwhile, here are a couple of HHSE updates of interest to shareholders.

1).  OTC Markets - We obtained verification yesterday that our renewal of the OTC Pinksheets subscription will be 100% transferrable into our OTC QB filing fee. We did not promptly renew the OTC Pinks subscription ($3,500) out of concern that this would be lost money due to the OTC QB subscription fee. But with the Yield Sign imminently turning into a STOP sign - we have renewed the filing access to post the Q2 and Q3 filings and be restored as CURRENT REPORTING.  We believe that our filing access to post the Q2 and Q3 reports will be restored TODAY, and that a review of these filings will occur on MONDAY to remove the "STOP" sign.  UPDATE - (Sunday, Oct. 4) - Renewal payment was wired to OTC Markets on Friday. However, HHSE's access to upload filings was not  restored prior to closed-of-business Friday.  Accordingly, we will press our contacts at OTC on Monday morning to reactivate our subscription access so that the required filings needed for "CURRENT" reporting status can be immediately uploaded.  TUESDAY (Oct. 6) Update - HHSE was asked on Monday to advance an additional $1,000 to the OTC Markets due to the lapsed time of the subscription renewal.  This was unclear as the invoice received from them via email last Thursday only listed the $3,500 (which was promptly paid); this additional $1,000 was also promptly paid (via bank wire) already.  We are awaiting their reinstatement of filing access so that the Q2 and Q3 disclosures can be posted and the "Current" status for the company restored. 

2).  MYFLIX - We have signed-up a new supplier partner with very large film library (over 3,000 titles), which elevates both the stature of our releases and the overall available title count (15,000+). We had written an exciting press release about this development, but recognize that we must respect the value of our existing suppliers who have not yet been announced.  A revised "consumer teaser" press release is being drafted which we hope will be substantive but not exclusionary or dismissive of some of our original suppliers.  MyFlix has three consulting firms helping us with the preparation and launch (e.g., Website design, APP creation and PR Outreach); we also now have forty-four (44) supplier partners, which makes an announcement challenging.  This will be resolved as we plan to launch consumer awareness by the end of next week (Oct. 9);

3).  FORM 10 - Company is on target for release this month;  there is some material information about a significant production financing / distribution partnership that is being reviewed and modified so that the Form 10 can proceed with or without specifying non-public information impacting a separate public company. Hold tight...

4).  "SALUTE TO TAHLEQUAH" - Over 250 local businesses, actors and crew in N.E. Oklahoma have helped with the production of "WILDFIRE" - many of whom are likely to be on the HHSE-Snowy Morning Production team once again in June and July with the multimillion dollar production of "THE LEGEND OF BELLE STARR." In a nod of respect and gratitude, Snowy Morning, Inc. and Hannover House, Inc. have placed a full-page color ad in this weekend's edition of the TAHLEQUAH DAILY PRESS thanking the community for the tremendous support received.  In a world that has grown increasingly tense and divisive, it never hurts to show some class and manners with a sincere "thank you" to those of merit.

THANK YOU TO THE PATIENT HHSE LONGS AND SUPPORTERS!

Major Retailer plans for Q1 (2021) Enable HHSE to finally schedule new DVD / BluRay Releases

Greetings HHSE Friends & Followers - After nearly two (2) years of NO NEW RELEASE ACTIVITY for home video products, HHSE is finally able to formalize release dates for a series of titles that have been held back due to market conditions (and COVID impact on retailers).  Watch for these new releases (and new edition re-releases) coming in Q1 (2021) and shortly thereafter from HHSE / Medallion:

MARCH 2, 2021

HEXING - Sci-Fi Horror starring Dominique Swain (DVD / BluRay)

    Gross Sales Forecast:  $65,000

RIDE UNITED - Redbull Motorsports (DVD / BluRay)

    Gross Sales Forecast:  $30,000

MARCH 30, 2021

MANHUNTERS - Action Adventure (DVD / BluRay)

    Gross Sales Forecast:  $115,000

AMERICA UNITED - Concert Special (DVD / BluRay)

    Gross Sales Forecast:  $20,000

SPICES OF LIBERTY - Comedy with South-India audience appeal (DVD / BluRay)

    Gross Sales Forecast:  $35,000

APRIL 20, 2021

SACRED PREY - Trade edition / Fiction Book

    Gross Sales Forecast:  $30,000

EASY LOVE - Foreign Art Film (Streaming, DVD / BluRay)

    Gross Sales Forecast:  $55,000

TOTAL GROSS SALES FORECAST (all seven items):  $345,000

(Approx. HHSE "margin":  $85,000, plus $25,000 in recoupment)

Except for MANHUNTERS, these were all previously acquired titles or re-release promotions that were DELAYED due to the evolving retail marketplace and changes that occurred as a result of the retail shopping impact caused by COVID-19.  With most of the preparation costs completed for these releases, the benefit to HHSE is quite good as there are not significant expenses at this point other than direct cost of goods and freight.  So it will be a nice little bonus revenue stream in Q1 to add to the company's substantial production services fees (for the new feature productions) as well as the MyFlix (HHSE) share of 50% of the net on all MyFlix producer revenues.  Primary retail commitments fueling these specific title sales forecasts are from:  Best Buy, Family Video, Redbox and Barnes & Noble. The company will not be pursuing Walmart placements on these secondary releases, due to Walmart's requirement of approx. 25,000 units of inventory per DVD placement (which is an inventory level greater than the realistic retail unit depletions for these items). 

With HHSE now having a monthly overhead of less than $10,000 (excluding MYFLIX and PRODUCTIONS which overhead costs are funded separately and off-balance-sheet), reinstating a release slate of smaller titles actually becomes a nice bottom-line profit for the company. 

GO HHSE!

HEXING, Trailer:

https://www.youtube.com/watch?v=nGiAJJVSCeE

MANHUNTERS (aka "Redneg") Trailer:

https://www.youtube.com/watch?v=pmMT_y2zx5o

EASY LOVE, Trailer:

https://www.youtube.com/watch?v=wNxYVjNaDHM

So, it's August 25. Why isn't the MyFlix Portal launched to Consumer?

 Dear HHSE Friends & Followers - HHSE Managers have been getting a LOT of emails from shareholders today, due to Aug. 25 being the announced launch date back in May for the MyFlix Streaming site.

Some of you may have already seen the Access Wire release / USA Today story about the MyFlix Launch.  But this blog will provide additional information to shareholders that was too much in-the-weeds of details for a consumer press release.

https://www.accesswire.com/viewarticle.aspx?id=603340

So here's the status of what HHSE management is resolving with respect to MyFlix.  The vast majority of titles that have been licensed from the 43 supplier studios are films that are MORE than eight years old.  This is an important consideration because "direct-to-home-digital streaming" was not a key revenue source eight years ago, and MANY (if not MOST) of the licensing agreements did not specifically spell out "direct to home digital streaming" as a media right being granted.  Accordingly, before Hannover House / VODWIZ / MyFlix can be safely covered under the Errors and Omissions Insurance Policy, there needs to be additional steps taken on a per-title basis to verify that the owner of the films (or authorized copyright proprietor) has approved the inclusion of "direct-to-home-digital streaming" rights in whatever agreement they originally entered into with suppliers X, Y or Z.  

Some of the MyFlix suppliers define streaming as an extension of the physical home video rights granted to them.  Other suppliers classify streaming as being included in television rights that were granted (because there's not a physical videogram unit).  Some suppliers have found that the ambiguity can result in litigation, because a film's actual owner or copyright proprietor might use the absence of specific digital-streaming rights as the basis to file a lawsuit against the MyFlix Studio Supplier (and possibly also against MyFlix, Vodwiz and HHSE).  Accordingly, the company's Errors and Omissions underwriter has asked for copyright owner acknowledgment of the MyFlix placement AND an indemnification to MyFlix from the supplier studios for every, single title to be offered on MyFlix.  So far, we have only lost about a dozen titles to this process... and we are getting the proper verifications at a good clip (about 300 per week). But we cannot chance it, launch the site, and face huge copyright violation claims.  As of today, we have cleared over 1,100 of the 2,500 titles otherwise on-boarded. We should be able to clear another 1,200 to 1,500 in the next four weeks.

Another key issue impacting a planned MyFlix launch today is marketing funds. We have said for years that you only have one chance to make a first impression.  Accordingly, we felt that a successful MyFlix launch would need AT LEAST 2,500 TITLES to start, including MAJOR STUDIO HITS, and a handful of "EXCLUSIVES."  But we also need more than a hope and prayer for a successful launch:  we need marketing impressions and consumer outreach.  A HUGE amount of our exposure will be generated through "barter" placements of key websites onto MyFlix in exchange for MyFlix links on theirs.  But even with a $200,000 value barter campaign with IMDB, there is still a mandatory $35,000 out-of-pocket PAID ad expense component (which the company cannot comfortably fund until we get the first disbursement of S1 Proceeds).  Overall, we have a $1-mm launch for MyFlix ads, requiring about $150,000 in out-of-pocket cash.  We can internally fund the on-boarding process, the clearances and even the preparation of ads and promotions.  But the launch of the high-impact consumer ads is something that will require a chunk of cash in the $150,000 range that we do not currently have available. Could we launch with a "soft start" and limited noise?  Yes, we can do that... and we can re-invest cash flow (collected via credit cards quickly) into offsetting our marketing fund needs.  But we're not doing it until we have at least 2,500 titles both on-boarded AND cleared for insurance coverage.

The company is also not ready to file the Form 10.  There is about a two week time requirement remaining for the last applicable accounting period to be updated to June 30, 2020 (and to avoid having "stale" financials).  There is also some non-public information in the Form 10 regarding certain titles and supplier deals for MyFlix that we prefer to not release until the site has been launched. But we can scrub this information from the Form 10 and release the registration statement as soon as the auditors sign off on the June 30 updates.

We have acquired three "exclusives" for MyFlix, which is pretty exciting.  We also have a letter-of-intent regarding the financing of $5.5-million for "THE LEGEND OF BELLE STARR" for production in Spring of 2021 (two MAJOR stars), which provides operating cash flow and overhead for HHSE. 

Hannover House is chasing really big stuff with really small resources. As a result, we cannot solve some of the problems we encounter by throwing tons of cash at them. At present, we must rely on hard work, a cheap staff and a little bit of luck.  But isn't that the American dream?  Even Jeff Bezos was packing boxes in his garage back in 1995 during the "hard work, cheap staff and little bit of luck" years for Amazon.com.  

Hang in there, we're going to get this done...

Timing and Luck are sometimes the Greatest Elements for Success in the Entertainment Business

Greetings HHSE Friends & Followers:  When the COVID-19 Pandemic shut down the world in mid-March, the schedule of filings and launches for HHSE ground to a halt. The world hunkered down (with some countries more disciplined than others), and we all wondered what the coming weeks and months would bring.  

One of the first issues that became evident in the new COVID reality of a home-quarantine world was that Americans were consuming more entertainment product than ever before... and utilizing a plethora of digital streaming options. 

More than a few people told HHSE management that they blew-through the "MANDOLORIAN" series, all of the STAR WARS movies and the thin slice of Disney / Fox offerings on the DISNEY+ channel in just a few days. Others said that they had already grown fatigued with the limited options on NETFLIX and were hoping that the NBC Peacock or other "brand-specific" streaming services would offer them another slice of delicious enjoyment. All of these issues - consumers wanting more streaming product and no other sites following the MyFlix MULTI-STUDIO all-genres model - have indicated that we are in the right place at the right time for MyFlix.  

In only five weeks, MyFlix is scheduled for an initial consumer launch, and all indicators show that we should have a strong immediate reaction.  As disclosed previously, the launch of MyFlix is not conditioned upon any new financing resulting from the Form 10 / S1 activities. We have separate financing for MyFlix - although the rapid expansion which we hope to need in the months following launch, could benefit from a portion of the S1 proceeds. Regarding the F10, our only update today is that we are confident it will be filed prior to the MyFlix launch.... and this is another example of good timing being in our favor with respect to corporate endeavors with electronic clearing of HHSE shares (now in effect), as the credibility benefits of the F10 and the working-capital benefits of the S1 Registration more closely matching the timing of our MyFlix launch.

But one of the least anticipated results is the tremendous distribution activity in motion for the original production of "WILDFIRE."  The stature of our cast continues to rise as young "Voice" winner CHEVEL SHEPHERD has completed a studio album and is launching a virtual concert tour (DEFINITELY sign up for her July 31 concert at:  https://spproductionslive.com/ ). KEEP IN MIND THAT 13-MILLION AMERICANS VOTED FOR "CHEVEL SHEPHERD" FOR HER WIN OF "THE VOICE" COMPETITION.  It's reasonable to predict that a good percentage of those people will want to see her motion picture debut in "WILDFIRE." 

Another cast member (Olivia Slatton-Fite) has just landed a major modeling contract and a recording deal; Michael Martin Murphey and Mo Brings Plenty each have concerts, films and TV shows lined-up for post-COVID, and Anne Heche and Thomas Jane continue to be solid, proven, Major Studio stars. 

But it's the concept of a teen-aged girl and a majestic horse that has the licensors most excited... as this particular genre of movie is almost always a mid-level commercial hit ($20-mm to $40-mm at the box office).  While this level of Box Office performance is uninteresting to the Major Studios for them to pursue as one of their own production endeavors...they are more than happy to have another company like HHSE facilitate such a production... and for us, the upside is literally millions of dollars more than our prior top-grossing film ("TWELVE" at $4.2-mm total).  So we are very happy with the response to WILDFIRE, as well as the upcoming MyFlix launch and the corporate filings that collectively will make HHSE into a highly visible, highly credible company. 

FOR THOSE OF YOU INTERESTED IN SEEING SOME FOOTAGE FROM WILDFIRE:  We have been cleared to show a VIP Distributor's Promo Reel that is approximately 17-minutes long.  The only requirement for viewing this "not cleared for public broadcast" video is that access can only be granted to verified HHSE Shareholders as of July 17, 2020. The rest of the general public will have to wait until the 2:30-trailer is released later this summer.  Also, please note that the VIP reel has the "Stunt Fall" off the cliff scene REMOVED because this has been promised to a major network entertainment show as a world premiere scene for them to show in support of the film's release.

TO REQUEST A VIEWING LINK for the WILDFIRE Sneak Peek Promo Reel, send an email to: Eric@HannoverHouse.com;  if you are not already known to the company as an existing shareholder of record, please be prepared to provide evidence of your HHSE Stock ownership eligibility to see this VIP reel. 

For those of you interested in Music Soundtracks, we will have THREE Chevel Shepherd Songs, plus a remake of Murphey's "WILDFIRE" a remake of the CCR hit "SUSIE Q" - along with four licensed tracks, two new recordings of public domain tracks and three additional original songs all for the WILDFIRE soundtrack CD and digital album. 

We feel fortunate, we feel blessed, and we feel a bit lucky at how the circumstances and timing have worked into our favor. We hope that each of you also will benefit from this good fortune.  Meanwhile, stay safe, stay strong and stay long!

ONWARD....

HHSE General Blog Update: Friday, July 17

Greetings HHSE Friends - It's been a crazy week, with post-market follow-ups, the F10 and S1, and the completion of the film "WILDFIRE."  A general update blog has been promised, and yet, when there's around the clock activity, it's hard to keep track of the days and timing and to stop and reflect on the marathon now underway.

However, as promised, we will provide additional details on these key corporate activities and initiatives today. 

Hold tight... it's all in motion and all is good!

HHSE MGMNT

New HHSE film, "The Hangin' Judge" Feature Documentary is just-in-time for the CANNES VIRTUAL MARKET!

Greetings HHSE Friends & Followers - "The Hangin' Judge" Feature Documentary (from 7-time Emmy Award Winning Producer-Director LARRY FOLEY) is being launched TODAY by Hannover House for the buyers of the Cannes Virtual Market.  Additional release details to follow.  Here's a copy of our Email blast to 7,100 Documentary and TV buyers today... along with some production photos.

HHSE has kept this and many other current productions "under the radar" from public announcement, as we had planned to release news (almost) every day for the first month following our Form 10 filing. But with this email blast happening NOW for the Cannes Market, it was not realistic to think that HHSE can keep this particular new 2019 - 2020 production a secret any longer.

It has been our belief that any and all news happening PRIOR to the Form 10 filing would be wasted in that most of our shareholders have a rather singular focus on the registration as the company's priority. That hasn't STOPPED HHSE from producing and acquiring additional products... it's just stopped us from publicly disclosing such ventures for a temporary period of time.

ONWARD, GO HHSE, and STAY SAFE (but hey, please wear a mask when in public!).

DVD/BluRay and Streaming Video "key art" design.

"Good Morning America" TV Personality TJ HOLMES is the Host and Narrator of the Film.

Bill Rogers as JUDGE ISAAC C. PARKER in the historically accurate re-enactment scenes. 

Jennica Schwartzman as ADA PETERSON in the historically accurate re-enactment scenes

Judge Parker's court in Fort Smith - and his heavy-hand of the law extended into the "Indian Territory" now known as Oklahoma.

Writer-Producer-Director LARRY FOLEY,

7-time EMMY Award Winner and Chairman of the

Department of Journalism, University of Arkansas

New Era in Trading Ease with HHSE now a DWAC / DTC / FAST approved Equity!

Dear HHSE Friends & Followers - it's an "invisible" achievement unless you are the beneficiary of a certificate issued directly by Hannover House. But the approval for DWAC / Electronic clearing of our shares is a huge step towards our overall credibility with major traders and funds.

For the vast majority of buyers and sellers of HHSE on the "open public markets" (such as brokers platforms like ETrade, Scottrade, TD Ameritrade, etc...), your purchases and sales of HHSE shares have already been processed electronically.  But for direct-issued stock certificates (such as consideration from the company), until now, these have been "Paper Certificates" physically issued and released.

The existence of HHSE shares in paper form has actually created a greater risk of "Naked Shorts" for cover to short sellers... as the inability to immediately verify access to (or ownership of) HHSE shares electronically created a plausible cover for some of these manipulators.  Now, however, with shares instantly clearing electronically, it will become obvious if a short-seller does not control HHSE shares at the time of a fake sale.

In any event... Electronic Clearing is just ONE of the major benchmarks... and was confirmed last week by AMY MERRILL of our Transfer Agent, STANDARD REGISTRAR & TRANSFER CO., INC.  A copy of Amy's email is reprinted below.  She has invited shareholders to call for verification.

ONWARD!!!

UPDATED:  Apparently, a support staff worker at STANDARD REGISTRAR misinformed a caller about our status, as she simply did not handle the matter.  Her email to the shareholder correcting this error is below.  Please note that EVEN THOUGH our HHSE shares are now DWAC / DTC / FAST cleared, this does NOT change the tacking / aging period requirements of anyone receiving shares.  For instance, HHSE President's FRED SHEFTE's ex-wife (Diana) will be issued shares of HHSE in the next two months following certification of their divorce settlement. The date of the shares that Ms. Shefte receives will start the clock for a 12-month aging before they are eligible to sell. This is a Rule 144 legal requirement, regardless of what "the sky is falling" proven stock manipulators try to convince you.

Hannover House resubmits 3-31-2020 Financials to Conform to Specific OTC Markets Formatting

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!

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!

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!