Greetings HHSE Friends & Followers - We have been extremely busy lately with corporate ventures, filings, financings, productions and MyFlix activities. So much so, that have neglected to give our shareholders a photo-tour and update on how well our combo office-warehouse-production facility has worked out for the company. While HHSE has evolved with changing markets and product direction over our 31-years of operations... we have adapted our offices to meet present demands. Our current home these past 8-months has been working perfectly for our "post-DVD" business model. So, here's a quick history and some photos of our operations.
A BRIEF HISTORY OF HHSE OFFICES
The company's first office was leased in 2001 at the "Old Post Office" on the downtown square of Fayetteville, Arkansas. This was a super-cool office, right in the center of town and the weekly farmer's market. But we outgrew it quickly (and frankly, some of the support staff were freaked out about the "rumor" of the Postmaster's Ghost - to which every creaking sound was attributed).
In 2004 - HHSE relocated to "THE ICE HOUSE" in Fayetteville - located just south of the Walton Arts Center. This location also proved to have logistics problems - as the lack of a loading dock and warehousing space resulted in senior managers stopping work almost daily to load orders or unload other shipments. SO - in 2008 - HHSE moved to an Office-Warehouse combo in Springdale, Arkansas. This was a great location for eight years... until such time that the company MOVED the storage of DVDs to an off-premises warehouse...
Moving DVD storage resulted in the 8,000+ square feet of the Springdale office being over-kill in terms of space. Accordingly, in 2016, the company moved to office at College and Dickson Street in Fayetteville. These were nice offices... but on the "second year" of the lease, the landlord started charging 30% more rent. This arbitrary surcharge resulted in a dispute and ultimately in a lawsuit. So, in 2018 - HHSE moved across the street to another office.
Frankly, with DVD product stored off-premises and a focus on location productions and MyFlix development - the company really did NOT need offices anymore at that point. But former HHSE President (Fred Shefte) wanted a work-space that was separate from his residence... so we basically got the office for Fred. There was a period of time in which the Fayetteville office was still under lease - AND - a separate office was operating in Tahlequah, Oklahoma (as a production office). Then there was a period of time in which ONLY the Tahlequah office was under lease (2022 - 2023). But when the company finally found its current location in Fayetteville (Feb. 2024), we knew we had finally located an ideal space.
Our offices are more than sufficient in terms of managerial office space. But more notably, we have over 1,500 square feet for STORAGE, plus separate office / work areas for Construction, Film Equipment and Wardrobe. Most notably, we have the largest cinema quality Green Screen production stage in Northwest Arkansas. Financially, we are paying only about $1,000 per month MORE than what we had been paying for various storage facilities each month.
At our current offices, we can receive semi-trucks, process orders, and even "build sets" or build props. In fact, we recently "built" an 1880's style Prisoner Transport Wagon for use in the HHSE movie, INDIAN TERRITORY. We were unable to find or rent one... so we BUILT it for $1,500... and have since already "rented" it to a different production for $1,500, first rental out!
We still have the same HHSE Directors: Eric Parkinson, Christian Large and Kyle Martens. We also have an operations (warehouse) manager and an administrative secretary on staff. As for "advisors" - we are working with some very high-profile and well-known entertainment investors and executives, which will be evident quite soon (disclosure of advisory panel will occur contemporaneously with our current uplist filings).
Yes, what we are doing is VERY ambitious and has a MAJOR upside for our shareholders... But also YES, it has taken quite a bit of time to pull it all together. It's notable to remind our longs that HHSE has paid or otherwise eliminated over $6.5-mm in debt in the past five years... AND... the company has not had any lawsuits of any sort in the past five years (corresponding to the timeframe that Fred Shefte took a medical-leave-of-absence... ending his prior strategy of "allowing" out-of-state disputes to go to judgment). NOW? If we have a dispute with a vendor or producer-supplier, we resolve it without litigation... thus our spotless record these past five years.
Regarding business model - we are focused on the production of original feature films that the company owns or controls (instead of just "earns a fee for a short period of time"). We are also continuing work on what is likely a $100-mm venture: MYFLIX. Yes, it has taken a long time... but that's because we are putting it together WITHOUT the benefit of millions of dollars of working capital. Such handicaps require more time...
MEANWHILE - there will be some fun news over the next two weeks... so stay tuned!
