Greetings HHSE Friends - the past two weeks have been challenging in terms of workload vs. available hours in a day. But we're getting everything done. The purpose of this short blog today is to provide some updates, without stepping over-the-line of revealing details under quarantine due to third-party partners, or to provide information which could be purposely misinterpreted by those with a stock-suppression or short-sale agenda.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
1). Audit issues relating to our 12-31-2024 year-end and OTC:QB uplist have been resolved, but require some management consideration of optional issues. For instance, capitalized costs for prior production investments, marketing expenditures and prepaid royalty advances, may prove to be more beneficial to the company if written-down (in full or in part) to create a Net Operating Loss as an offset anticipated taxes from the company's current activities. The upside is that HHSE could retain more of the funds from the current revenue activities... the downside is that future income from such capitalized ventures would be taxed from first dollar, without offsets. A decision on direction must be made soon, as the 12-31-2024 filing is due to the OTC Markets this week.
2). Regarding WILDFIRE, the film's April 19 theatrical launch is further delayed due to timing issues relating to the film's major studio streaming venture. The theatrical release cannot occur earlier than 60-days prior to the Studio streaming premiere... so we are forced to acquiesce to their schedule. There's a lot of money involved, so following the studio lead is a no-brainer.
3). The production of INDIAN TERRITORY was approved by the Screen Actors Guild under their new "post-strike" terms. Principal photography will commence June 3 - and the film's four "major stars" and key supporting players have an impressive worldwide box office cumulative value of more than $10-billion. So, that's an exciting project for this summer, after the uplist scramble is completed.
4). MyFlix continues to be stalled, but due solely to lack of marketing-launch funds. A major investor has agreed to support the venture's launch, but only after the QB uplist is completed... so that's a relief to know that matter of required funding has been addressed.
5). Cowboys of Cannabis has not been a windfall success. The initial results via TUBI were good enough for them to ask for a sequel... but questionable on our end as to whether or not a sequel makes good sense. So for now, the material shot in December is on hold with the editors, pending a wider placement of the first Cowboys of Cannabis to other platforms. Hannover House will not spend time or money on projects that don't generate positive cash flow... and to date, this one is still unrecouped.
6). Unholy Song - First edit cut turned out fantastic, and that feature is now moving into Sound and Music post production steps. Superb project - with a planned USA Theatrical launch on Jan. 31, 2025. Exorcism-themed horror films seem to have a solid and predictable audience.
7). Native Fables - Episode four of the Native Fables series films in April, with the important theme of "Missing & Murdered Indigenous Women" (MMIW). Hannover House is working with a major tribe and a major non-profit MMIW support group to create legislation for the U.S. Congress to allocate more funds to the Bureau of Indian Affairs Rapid Response Unit ("Shadow Wolves"). So, it's a great film with a greater cause to benefit. Stay tuned...
The computing power and data management potential of Computer Generated Image technology for feature films has grown exponentially in recent years. Now, a simple green-screen cyclorama in a warehouse building can compete with the world's largest and most expensive "sound stages" in terms of image creation. This evolution in image creation has already rendered some film industry jobs obsolete: set construction, stunt players and non-creative support jobs. The winners in this new entertainment world are the CREATIVES: writers, directors and producers who make the magic happen through manifestation of concept and images. Over the next few years, expect to see this paradigm shift impact the revenues, value and stock prices for companies with vision and ideas - but which may have previously lacked only the funding resources that "the old way" of making movies required. This is the golden-age of entertainment production creation.