When you're constantly on the job, sometimes 24-7 is still not enough…

Last month when HHSE selected July 28 as the filing date for our Form 10 registration, this was based on Q2 review time needed for the auditors, and the additional formatting and XBRL time needed for M2 Compliance prior to submission to the S.E.C. Edgar Database. 

 

We knew last month, that HHSE would separately be required to make additional changes, updates and new filings in order for all disclosures and accounting procedures to be consistent with the audit report and Form 10. The most time-challenging remaining items on the Form 10 HHSE plate have been:  revision of 2019, 2020 and 2021 Federal 1120-S tax returns to conform to a cash-only accounting basis, and a restatement and re-filing of the 12-31-2020 and 12-31-2021 OTC Markets Annual Reports to also reflect the cash-basis accounting and revisions to the Film & Television Rights Library. Previous obstacles - all major events - were already completed (including the Library update, the settlement or resolution of material legal matters and significant balance sheet strengthening through negotiated debt reductions). 

 

Theoretically, this could have all been done by today’s goal. But without a support staff, and working within the physical limitations of a 24-hour day (and the occasional need for food and sleep), the target goal has proven itself impractical.  Accordingly, the Form 10 registration was not released today – but a lengthy delay is not this project's destiny. HHSE must make these updates and revised filings first before we can publish the registration.  There is also a logistics issue to resolve in that restating the 2020 and 2021 Annual Reports will require a new attorney opinion letter, and needs to be implemented in a manner to minimize the risks of a temporary change in the OTC Markets status for the company.  But it's all doable (and everything requires some investment of time). 

 

Some shareholders have reached out to HHSE CEO Eric Parkinson for status updates on the Form 10 – which information cannot be given out individually under disclosure rules, but which must be publicly disseminated, such as via this blog.  So, apologies for the lack of response to these shareholders. 

 

Bottom Line is that great effort has been made to complete the HHSE agenda items – but July 28^th proved to be an unobtainable publishing date. If all other HHSE issues, projects, calls and operational obligations had been completely ignored – there would still be the limitation of a 24-hour day and a seven-day week. So, sincere apologies on behalf of the company and individually from Eric Parkinson.  It’s all getting done, and literally could not be completed any faster under the reality of a linear-time.

 

Over the next few days – watch for OTC Markets filings (and a SEC Form 8 Information Disclosure) – all of which are components of the registration process.  Then one morning, very soon, watch this blog for a link to the S.E.C. Edgar site and the HHSE Form 10.

 

We realize that there are some exhausted shareholders - and some that might decide to sell their HHSE shares now, at the worst possible time for their own self-interests. If this occurs, this could be a fantastic upside opportunity for those following the WARREN BUFFET strategy of buying for value and buying for where a company is headed... not for the momentary peaks and dips from emotionally-charged day trading. HHSE was founded in 1993 (29-years ago), and is a long-term serious play.  There are occasional "day trade" opportunities such as buying into a stock pump promotion behind a company with no assets, zero revenues and $235-MILLION in debt (yes, some shareholders suggested that HHSE should operate more like a particular - unnamed - OTC issuer that purportedly is an "entertainment" company despite nothing more than mountains of debt and a stock promotion !!!). But that's the opposite of the HHSE operating business model. HHSE is not a stock pump... and with MyFlix and the HHSE slate of high-end original productions, HHSE is turning into the big, long-term score you can brag about to your kids and grandkids. 

Hold tight and watch this space.

Thank you.