Notes from OTC MARKET resulted in Formatting "tweaks" to the 12-31-2021 Annual Report

 Dear HHSE Friends - We received an email of comments from the OTC Markets, regarding our previously filed 12-31-2021 Annual Report.  There were no substantive issues or changes other than formatting. On the front cover page, the previously disclosed share counts for the CURRENT PERIOD, the PRIOR PERIOD and the MOST RECENT FULL REPORTING YEAR did not appear clearly enough to meet the formatting standards.  So we CAPITALIZED these sections so that the information could be more easily seen by a busy person.  

Also, with respect to SHARE HOLDERS and NOTE HOLDERS listed in sections 3a and 3b, we clarified the CONTROL BENEFICIAIRES for the corporate entities... and with respect to LLCS or PARTNERSHIPS for which no individual is the primary controlling party or beneficiary, we indicated as such.

We have been told that all other items in our prior filing were satisfactory, and that these two tweaks would be looked at within the first few days of this week.  HHSE will also post the ATTORNEY LETTER before the end of the week.  MONDAY UPDATE (May 2).  Final confirmations from Standard Registrar were sent directly to Morgan Petitti today (per her request, and due to the need for third-party compliance); accordingly, the HHSE Annual Attorney Letter for the period ending 12-31-2021 was finally POSTED to the OTC Markets as of 7:11-pm today.   

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In other news... we have been polishing up a final theatrical TRAILER for the movie "WILDFIRE." It's looking quite good - and the drama and visual impact of the car crash that serves as the catalyst for the film's plot drew gasps for our test viewers.  The WILDFIRE Trailer will be premiered next month at CANNES - and a link will be provided for HHSE shareholders.  HHSE will also show the updated Pilot for COWBOYS OF CANNABIS (featuring SNOOP DOGG, JIM BELUSHI and DAN AKYROYD), as well as a promo teaser for the epic western, THE LEGEND OF BELLE STARR at Cannes. 

IN MEMORY of Don Frederick Shefte - March 11, 1947 - April 18, 2022

Don Frederick Shefte

March 11, 1947 – April 18, 2022

Don “Fred” Shefte, former President of Hannover House, Inc., passed away peacefully on Monday, April 18, 2022 at a hospital in Springdale, Arkansas. Shefte had been battling health issues for the past four years, stemming from an ever-worsening lung ailment.

 

Shefte obtained his law degree from Vanderbilt University and worked as a military JAG officer before practicing law in Southern California - working his way to partner status at the prestigious Seltzer-Caplan firm in San Diego.  Shefte relocated to Fayetteville, Arkansas in 1998, working as an independent supplier for Walmart Stores, Inc. He accepted the position of V.P. Treasury officer at the Bank of Fayetteville in 2002.  In April of 2006, he accepted the position of President of Hannover House, Inc. – a multi-faceted entertainment distribution company – which post he held until March of 2021 when he retired due to health issues.

 

He is survived by his ex-wife, Diana Shefte and son, David Shefte, daughter Alison Mitchell and four grandchildren.

Eric Parkinson and Fred Shefte at the CANNES FILM FESTIVAL market announcement of the MYFLIX multi-studio streaming service (May 2018)

Shefte in his Fayetteville, AR office - March 2019

Parkinson and Shefte are joined by former Paramount Home Video President ERIC DOCTOROW on the Sony Pictures Studios lot, April 2018.

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Eric Parkinson, Desiree Garnier and Fred Shefte at the post-screening reception for DAISY WINTERS, in New York City, Oct. 5, 2017.

Diana & Fred Shefte at the Cannes Film Festival, May 2018. 

MyFlix at Cannes: the Right Place at the Right Time!

Watch this space for news and details of a major MYFLIX event to occur four weeks from now at the Cannes Film Festival and Marche du Filme:  Digital Streaming has taken over the distribution side of entertainment, and HHSE is in the right place at the right time!

Quick HHSE Status Update

Good Morning HHSE Friends & Followers - no time to get into great detail this morning - due to deals in motion. However, here's a quick summary in response to Shareholder email inquiries:  

1).    Final terms for DAISY WINTERS and UPTONE Settlements agreed and executed;

2).    Funds paid by HHSE in satisfaction of settlements have been paid;

3).    Still awaiting new license confirmations and term extensions back on five of the ten key titles needed for support of the new Library Valuation Report;

4).    Awaiting OTC Markets to verify full year-end compliance and to restore "current" status to HHSE OTC Markets Listing;

5).    Updated information has been submitted to Securities counsel;

Happy Passover, Good Friday and Easter Holiday Weekend!

Editor JON McCALLUM continues with an around-the-clock final edit assembly of the WILDFIRE feature film - while songwriter / composer MICHAEL MARTIN MURPHEY progresses with the recording of the original music score (and soundtrack album for the film). "Murph" is currently working with the Cherokee Nation on original Cherokee Language lyrics and a vocal performance in Cherokee for one of the movie's key songs. 

Revised HHSE Year-End Filing - SHOULD Quickly Restore "Current Reporting Status"

 Greetings HHSE Friends - late on Thursday, the OTC Markets finally responded to our calls and emails asking for clarity and direction as to why the company's listing status went from "Current" to "Yield."  There were two issues.  Firstly, the filing occurred after midnight EASTERN TIME on 3-31-2022. This triggered the automatic drop to "Yield."  Next, their review of the filing showed a deficiency, in that the statement of cash flows only reflected the last three months of 2021 - and they require a full year statement of cash flows.  This issue has been corrected and the year-end report has been refiled.

Preparing a news / blog update on final legal settlements and library issues, which will be coming in the next few days as these situations are fully confirmed.

Big night last night in Oklahoma City at the Western Heritage Museum annual awards show.  MO BRINGS PLENTY - star of "Yellowstone", "Wildfire" and the upcoming production of "Legend of Belle Starr" was the emcee of the event - which included the awarding of a lifetime achievement award to the legendary KURT RUSSELL.  Fingers crossed on some very interesting, brewing activity!

MO BRINGS PLENTY

KURT RUSSELL

WILDFIRE Stars MO BRINGS PLENTY and MICHAEL MARTIN MURPHEY confer with HHSE C.E.O. ERIC PARKINSON (and Director of the "Wildfire" feature) on staging and blocking of an upcoming scene - shot in the Frankllin Castle (Tahlequah, OK). 

Updates on HHSE OTC Markets / Settlements / Other Form 10 Issues

Greetings HHSE Friends - well, it took four business days to get a response from the OTC Markets.  As many HHSE Shareholders realized, as of MONDAY morning, the company's "current" reporting status was reduced to LIMITED INFORMATION (Yield Sign).  We were told that this occurred automatically as a result of our filing happening AFTER Midnight on 3-31-2022 EASTERN TIME (although, the enforcement of time-zones for the cut off did not previously specify EASTERN time as the filing deadline).

The OTC Markets has reviewed our filing since then - and notified us tonight of a deficiency in our CASH FLOW report, in that the current filing does not include all twelve months of 2021... but only the last three months.  This item will be promptly rectified and a new Annual Report filling will be posted.

In other news, we seem to be on the final moments for mutual execution of settlement agreements in the UPTONE and DAISY WINTERS matters. We're hoping for good news in the next trading day or two.  With respect to the film library report, we have received back some comments that are being addressed (most notably, the issue that the original rights licenses to some of the HHSE titles expired years ago... but that the program rights owners have extended "at will" authority for the company to continue selling them.  This 'courtesy extension' is problematic for creating a valuation of projected earnings in the future - because it's a bit too informal to opine on how much this-or-that title might generate in the next seven years, when the sales rights are not contractually assured).  In order to fix this - which task is already underway - we have been asked to get more formal rights extension amendments on ten (10) titles that represent over 30% of the revenues from these "courtesy extension" titles. This is not expected to be problematic or time consuming.

In other news, MyFlix will be prominently featured at the Cannes Film Festival & Marche Du Film in mid-May, with feature stories already confirmed for three of the top five industry publications at that important world market. This will be great timing for MyFlix for many reasons that will be evident within the next month.  There will also be trade ads in some of the Cannes publications announcing the completion of WILDFIRE (including the final poster and a QR scannable code to see the final trailer); the pre-production announcement of LEGEND OF BELLE STARR (including a QR code to see a promo reel); and the availability of COWBOYS OF CANNABIS to international television broadcasters, cable networks and streaming services (with scannable QR codes to see both the updated trailer and pilot episode - which now features SNOOP DOGG, JIM BELUSHI and DAN AYKROYD).  

Will update the blog as soon as the various FORM 10 related items are resolved.