Congratulations to HHSE star Bill Skarsgård - on your #1 Movie and #1 Star Ranking!

Greetings HHSE Friends & Followers - It doesn't get any better than NUMBER ONE - so it's doubly-exciting today to announce that HHSE star Bill Skarsgård not only has the top movie in the world... but he is also listed on IMDB as the #1 Star in the World.

We are excited to be releasing Bill's next film, "BATTLECREEK" - which opens in theatres on Friday, Nov. 3, from director ALISON EASTWOOD.  Go HHSE!!

HHSE Update - as of Sept. 9, 2017

Greetings HHSE Friends & Followers - as promised, here is a brief update of key issues.

1).  CRIMSON FOREST  - The principal updates for the corporate merger with Crimson Forest all relate to Audit issues (see below). As previously disclosed in this blog, the ongoing review of Crimson activities indicates that the merger valuations will need to be significantly modified in favor of Hannover House shareholders. Regardless of the valuation levels that can be independently substantiated, the stock-swap portion of the merger cannot occur until Crimson is restored to fully reporting status - as this is a requirement for our planned immediate re-branding (plus, why would HHSE shareholders want CRIM shares - even if only briefly - while Crimson has a STOP sign on their OTC markets page?). 

2).  AUDIT ACTIVITIES UPDATES - New auditors were engaged to handle the Crimson Audits, as are required in order to restore CRIM to fully reporting / current status (which current status triggers the stock-for-stock swap, as well as the immediate re-branding of the newly merged pubcos). The new auditing firm is much larger than the auditors that handled previous Crimson reporting requirements... and the new firm has compliance standards that have been more challenging than the existing back-up from Crimson records of previous years. To address these requirements, two steps have been implemented, including:  

a).  Input of all transaction data into an exportable QB format by an outside accounting firm; and, 

b).  Forensic accounting for back-up of transactions previously expensed or capitalized by Crimson, which need independent review by the new auditors, despite representations of review from the previous auditing firm for Crimson.  

HHSE board members (Parkinson, Shefte and Sims), met last week to discuss time lines and options regarding the merger with Crimson Forest, and the problems that have been encountered relating to obtaining suitable back-up for prior Crimson Forest activities. In respect of the many other deals and activities in motion for the company, the board has determined that Sept. 30 shall be the latest, reasonable date to allow Crimson Forest to comply with the required documentation for the auditors. 

HHSE accounting and audit materials are fully current and properly formatted to enable the HHSE side of the merger to easily and quickly become fully reporting - which may be a reasonable option should Crimson Forest continue to delay in its willingness or ability to provide appropriate and required compliance documentation.

UPDATE - As a further clarification to the above two items concerning Crimson Forest, shareholders have asked for the corporate options for a road-map to achieve fully reporting status, regardless of merger status. Per discussions with HHSE's advisors, as well as the corporate counsel for Crimson Forest, the following options seem to be governing the steps that will occur if Crimson is unable to fully comply with document requirements by Sept. 30.

1).  First Option - Crimson provides required back-up in a timely manner, the auditors complete ongoing report, all "current" Crimson docs are then filed and the merger swap is completed, as per the March agreement (with the valuation adjustments since then).

2).  Second Option - Crimson is unable to provide appropriate back-ups for the auditors, so HHSE files the Form 10 (and two-years of audits, which are already formatted for submission), and HHSE becomes the "fully reporting" entity for which the stock-swap can occur with Crimson (again, under valuation adjustments).

3).  Third Option - Crimson is unable to provide appropriate back-ups for the auditors, but desires to keep working with HHSE for production, distribution and finance matters (but not as a singular, merged company), so the HHSE would proceed (on its own) to become fully reporting for the benefit of HHSE Shareholders and stock liquidity.

4).  Fourth Option - Crimson is unable to provide appropriate back-ups for the auditors, and the two companies seek an orderly dissolution of the merger process, without specific ongoing corporate activities specified. Under this scenario,  HHSE would proceed (on its own) to become fully reporting for the benefit of HHSE Shareholders and stock liquidity.

We have enjoyed  our working relationship with Crimson Forest this past year, and we believe that all parties are working to achieve a positive resolution to our shared, corporate goals. One way (or another), we are graduating off the Pink Sheets as a trading equity, and feel that this corporate maturation will deliver great value to our Shareholders.

3).  VODWIZ - As of 7:00-pm CST (Saturday, Sept. 9), we have not received word back for the release of new partnership news relating to VODWIZ program suppliers... we expected this by today, but will honor the studio's schedule and approval process.

4).  NEW RELEASES - Here's a quick summary of some of the previously unannounced (or delayed) titles that will be driving the majority of revenues for HHSE-Medallion over the next six months:

a).  BLOODFEAST - finally received a "R" rating from the MPAA after three rounds of edits. Accordingly, the title is now eligible for release to the major theatre circuits as well as for Walmart, Redbox and Target home video placement later. New release plans are in motion.




b).  BATTLECREEK - On the heels of the mega-hit "IT" now setting box office records in theatres, HHSE / Medallion is pleased to announce the Nov. 3 theatrical release of "Battlecreek" from director ALISON EASTWOOD - and starring BILL SKARSGARD ("IT"), DELROY LINDO ("Gone in 60-Seconds"), PAULA MALCOLMSON ("Hunger Games") and CLAIRE VAN DER BOOM ("Hawaii Five-0").  Early enthusiasm from theatres and home video retailers is already quite significant for this title. National Media Day Oct. 24 (LA), Red-Carpet Premiere Nov. 2 (LA).

c).  DEATH HOUSE - Imagine a movie with nearly ALL of the biggest horror film stars from the 1980's and 1990's - all together on Halloween night, in one location, for one incredibly funny and outrageous horror film?  That's DEATH HOUSE, and producer RICK FINKELSTEIN ("Bill & Ted's Bogus Journey") thinks that this new film from director B. HARRISON SMITH ("Camp Dread") will be a huge, sleeper hit release. Coming to theatres on Jan. 26, 2018.

5).  ADDITIONAL VICTORIES / RESOLUTIONS - A separate and detailed blog about recent settlements (or victories) in prior legal matters impacting HHSE / Medallion has been prepared. However, under advice from counsel, and in order to respect the release of information from the courts or the confidentiality of terms, this portion of the blog update is not ready for release as of today, Sat., Sept. 9. 

6).  NEW HHSE STAFF HIRES - We are pleased to announce the return of Desiree Garnier as our Director of Marketing.  Desiree worked with Hannover House / Medallion throughout 2015 and through July of 2016 when she joined the start-up team at Rock Hill Studios (the Fayetteville, AR based motion picture production studio owned by Blake and Kerri Elder).  After a year at Rock Hill - during which time Desiree supervised the construction of the largest sound stage in the State of Arkansas, as well as the production of the horror film, "Door in the Woods" - she has returned to HHSE to help with our impressive slate of theatrical features for the fall and winter seasons.

7).  NEW DISTRIBUTION PARTNERSHIPS - HHSE / Medallion have entered into a distribution agreement with Random Media (the indie studio headed by former Paramount President Eric Doctorow and indie-film producer Tom Skouras). Random will be handling a significant portion of the upcoming release slate for Video-On-Demand placements and Television licensing. Additionally, Random was the catalyst for an exciting new distribution pact with Sony Pictures Home Entertainment, details of which will be announced separately, but which will involve selected titles. HHSE / Medallion will continue to maintain and service the existing distribution relationships with Cinedigm, Vision, All-Channel Films, Entertainment Studios and other key distribution partners.

HHSE Weekly Updates...

Greetings HHSE Friends & Followers - we are preparing an update for this week's acitivities that we plan to post to this blog tomorrow (SATURDAY).  The purpose of posting tomorrow instead of today is to allow two key outside parties time to review and approve the information that concerns them.

FYI, what will be covered will include:

1).  CRIMSON FOREST Merger updates

2).  AUDIT Activities updates

3).  VODWIZ New Activities

4).  NEW RELEASE Activities (Theatrical, HV / VOD / TV).

5).  ADDITIONAL VICTORIES / RESOLUTIONS in old legal matters.

6).  NEW HHSE STAFF HIRES

7).  NEW DISTRIBUTION PARTNERSHIPS update.

What we can go ahead and "tease" today is the MONDAY announcement via Wire Services and EPK.TV of the October 6th release of "DAISY WINTERS."  This is a powerful, awards-caliber feature film that will be supported with HHSE's biggest marketing campaign ever (TV, Print, Internet, Radio and Social Media will deliver more than 350-million consumer impressions!).  Full details will be released on Monday.

HAVE A GREAT WEEKEND!!

HHSE scores another major legal victory - as we transition into a new era for higher-quality films!

Greetings HHSE Friends & Followers - Hannover House achieved a major legal victory on Wednesday with the ruling in HHSE's favor by the court in the "AMITYVILLE ASYLUM" case. Bottom line is that the producer's claims for "damages" in this contract law dispute were supported with (quote from the presiding judge) "... no credible or reasonable evidence" - and the ruling was made in favor of Hannover House.  The judge further stated that the accounting reports from Hannover House appear to be "very thorough"  and with "third-party verification" of units sold, units returned, monies paid and amounts due.

Although the producers of "AMITYVILLE ASYLUM" were seeking a total of $300,000, the court ruled that all they were entitled to was $12,651 - which is the net balance due on actual, earned royalties.

HHSE had previously offered to settle for a far greater amount than the actual royalties, to avoid the nuisance and distraction of ongoing litigation. But the Amityville producers rejected this lucrative offer in favor of hoping to persuade the court that they had somehow been mistreated. The principal evidence that they submitted to support their claim of "damages" was a statement of "projected earnings" from Alchemy Entertainment, Inc., on four totally different movies. But Alchemy filed bankruptcy and ultimately never paid anything to the Amityville producers - thus rendering the Alchemy valuation forecasts as unreliable.

During testimony received via SKYPE from Wales, Amityville principal Robert Graham admitted under oath that the film was intentionally titled "Amityville Asylum" in hopes of confusing consumers into thinking the film was part of the successful AMITYVILLE HORROR film franchise. This sworn testimony supported Hannover's claim that many retailers refused to carry the title out of their concern for potentially confusing and upsetting their customers. This specific admission under testimony could be used in a trademark claim, should Emmett-Furla Films or MGM (co-owners of the true "Amityville Horror" franchise), decide that this willful infringement merits legal action. But that's not a HHSE matter of concern.

The biggest victory is the court's ruling that the HHSE statements represented an accurate and verifiable history of sales activities for the titles... and how today's victorious result may temper the enthusiasm for future, baseless claims from any other producer of "projected losses" or damages. The HHSE producer reports were accurate to the penny - and fully conformed to the independent third-party back-up.  For a producer to claim that they are owed MORE than the HHSE-generated producer statements, is fundamentally a false assumption and one that will never win over basic math.

HHSE provided a fully accurate statement to "AMITYVILLE."  We tendered the first of four, mutually-agreed installment payments (three payments at $5,000, plus one of $2,751), but before the second payment was released, the Amityville producers filed a lawsuit. Ultimately, three years later, they got exactly what the title was due, period. No punitive damages, speculative or projected earnings...none of that complete nonsense.

In 24-years of operations, Hannover House has been named (often as one of multiple-named parties) in NINE (9) lawsuits from program suppliers, representing a total of 17 films.  This represents an extremely low percentage of unhappy producers (about 3.7%) out of our 451-title film library.  As a point of comparison, the industry's two largest indie studios (LIONSGATE and WEINSTEIN COMPANY) are reported to have producer lawsuits in 10% and 25% (respectively) of all films handled.  This does not mean that any of the companies are doing business in a dishonorable way. It just means that producers almost ALWAYS have very high expectations for how they THINK their movies should perform... and the distributor usually gets the blame, even when a film gets horrible reviews from film critics (how is that the distributor's fault?).

As HHSE grows into the evolving media market for independent films - our new business model of handling HIGHER PROFILE titles and ORIGINAL PRODUCTIONS is expected to dramatically reduce or eliminate future producer lawsuits. If we are no longer handling micro-budgeted films from first-time producers, we won't need to waste time in a courtroom explaining how math or consignment video sales work. We are NOW dealing with a higher class of program suppliers, and are intimately involved in the production processes of most of these films - to create better quality titles with the greatest commercial value. It's the beginning of an exciting era for HHSE, and corresponds with the end of the micro-budget, direct-to-video market. Consumers demand better quality films, with original stories, quality production values, known stars and legitimate theatrical release... that's our 2017 - 2018 and beyond business model, so stay tuned for more!

... last but not least, speaking of EMMETT-FURLA films, here's an oldie-but-goodie photo of HHSE C.E.O. Eric Parkinson with RANDALL EMMETT and CURTIS 50-CENT JACKSON at the Sundance Film Festival.  Parkinson has worked with George Furla and Randall Emmett on five prior productions, including "FUTURE SHOCK" (directed by Parkinson) and "GRIZZLY MOUNTAIN" (written and Produced by Parkinson).  "FUTURE SHOCK" is an HHSE title for worldwide rights;  "GRIZZLY MOUNTAIN" is a MGM-UA title.

Oh Boy, what an interesting dilemma!!

So - even after a significant re-cut and re-mix, the MPAA Film Ratings board will still NOT issue an "R" rating for the film!  This poses some interesting questions, obstacles and opportunities...

* Will horror fans flock to see a watered-down version... or will they wait for an unrated home video release?

* Will indie theatres (non-chains) agree to book the unrated version... or will they also require the "R" rating that Regal, Cinemark and AMC prefer?

* Will the film's struggles to get an "R" rating make it more visible and desirable to the horror market?

So many questions, so little time... maybe the Ghost of Bloodfeast Past will provide a vision?!?

Stay Tuned....

VODWIZ presents: Three Steps to a POWERFUL Marketing Angle & Position

Greetings HHSE Shareholders, Friends & Followers - As the home-entertainment world continues to evolve and mature, we find ourselves in an interesting position with our VODWIZ streaming portal.  As originally envisioned several years ago, VODWIZ has been structured with the support of nearly all major independent film companies, as a "one-stop" destination site for independent films.  As the venture grew, we found that three major studio labels were willing to "give VODWIZ a try" by offering an assortment of higher-end theatrical titles... so the venture was becoming MORE than a site solely for lesser-known, independent movies.

As we prepared for the launch of VODWIZ, we discovered that the cost for HHSE to build out the hosting, delivery and customer-service infrastructure was enormous (well over $1-mm), and that it was prohibitive to try to finance this with internal resources... and unattractive as a vehicle for borrowing (as a start-up streaming division with no revenue history).  So, when the opportunity to have hosting and operations handled by Nanotech arrived, we felt that this was a good solution to defraying these significant infrastructure costs.  

Unfortunately, launching via Nanotech did not work to either company's satisfaction.  HHSE supplier partners wanted to see the site fully functional before opening the floodgates to 1000's of films... but Nanotech wanted a substantial initial title count before committing more resources to the venture. Ultimately, after losing several years of momentum, Nanotech and HHSE/VODWIZ parted ways. We wish Nanotech well as they pursue the UltraFlix strategy of offering 4k format programming for streaming.

For the past year, VODWIZ was working to satisfy some benchmarks required for Cinedigm to act as the host and operational partner for the venture.  However, the cost-structure for Cinedigm's involvement was impeding enthusiasm from some of the HHSE-VODWIZ supplier studios.

So, what's happening with VODWIZ now?  As described last week, VODWIZ has now partnered with Amazon Digital Services for hosting, operations, payment processing and customer service of all activities.  This is being done without prohibitive benchmark requirements and at a fraction of the costs presented through the prior operational structures.  Better yet, the massive data and streaming capacity available through Amazon's multitude of regionally-based servers, has opened up two new "channels" (so to speak) for VODWIZ.  The VODWIZ site now being assembled, prepared and uploaded will feature THREE main categories of programming on the home-page menu:

WATCH - LEARN - PLAY

WATCH - menu link will open to the traditional VODWIZ assortment of passive-viewing programing:  thousands of feature films and television episodes, primarily from indie studios, will be available for viewing on both a transactional basis, or a subscription basis. This is the model that VODWIZ has planned from initial conception several years ago.

LEARN - this menu link is a new twist to the Video-On-Demand streaming market.  With an abundant supply of educational programming now available, the "LEARN" menu of VODWIZ can offer a wide range of subjects and levels.  Art, English & Composition, Foreign Languages, History, Math, Science, Social-Sciences and many more subjects and achievement levels (from beginner to advanced levels).  Most of these subject programs will offer interactive "quizzes" so that the user can track their achievement goals.

PLAY - VODWIZ will be offering a significant menu of single-player, interactive and group-play VideoGames under the PLAY menu option.  Amazon's large storage capacity and data delivery capabilities make the gaming / PLAY / option an important and exciting new component of the VODWIZ venture.

USER OPTIONS - VODWIZ will offer programming under two models:  Pay-Per-Transaction (starting at only $.99 per program, and increasing based upon studio rental models), and Monthly Subscription  Model (monthly plans for each category, and Premium Plans for LEARN & PLAY as described below).

The Premium Subscription Model will enable up to five (5) individual users per subscription (so that "Billy, Jr." can have his own login-access).  Parents can "limit" the access granted to their kids to wide range of restrictions (e.g., no "R" rated movies, no Violent Video Games, only 4-hours per day, etc...). Even better, parents can create a performance-based rewards model for the kids, by activating the Achievement Points option under the LEARN menu:  passing grades on the on-line quizzes generate access points to enable Billy, Jr. to watch movies or play video games!  With kids spending more-and-more time in front of electronic media today, having a mechanism to incentivize taking on-line classes to earn access to video games and movies is a twist to VODWIZ that we feel families will embrace.

Management is still working on the pricing models for the various Subscription options.  However, we are attempting to work out a $7-per-month model for "watch" only, and a $10-per-month "premium model" (which allows for multiple users, limitations as well as achievement awards access).  Our initial (first year) target is to have 100,000 subscription customers, averaged at $8.50 per month - for annualized gross revenues of $10.2-million.  The operational system we are building with Amazon will accommodate data servicing for up to 50-million monthly subscriptions, should the venture prove to be widely popular!

WATCH HERE FOR MORE VODWIZ UPDATES EACH WEEK!

HHSE Updates - Friday, August 18, 2017

Greetings HHSE Friends & Followers - Below are a few updates as requested by shareholders.

1).  MERGER UPDATE - The stock-for-stock swap, as originally structured back in March, placed a value on the Crimson Forest assets side which ultimately could not be reasonably supported by independent valuations. Accordingly, the ratio of stock for HHSE shareholders under the Crimson merger will need to be adjusted in favor of HHSE shareholders maintaining a larger percentage of the combined stock issued - and therefore, a higher premium-to-market formula. These Crimson Forest asset valuation issues impacted their balance sheets as well as the ongoing auditing process, but now seem to be heading towards a final resolution in the next few days. It is likely (but not assured) that the Newco post-merger company will be branded under Crimson Forest World Media, Inc., symbol CFWM.

2).  LEGAL UPDATES - Settlement in principal has been made with the producers of "UNION BOUND" through mutual legal counselors.  Settlement also seems imminent (according to HHSE counsel) in the XVIII matter; meanwhile, in anticipation of resolution and settlement, counsel for XVIII has extended the time for HHSE to file a response until the end of August. No other legal matters represent a material issue impacting the company outside of the ordinary course of business.

3).  NEW RELEASE ACTIVITIES - No formal theatrical re-launch date has been set for "BLOODFEAST" until the film receives the MPAA "R" rating (currently under appeal, after two rounds of editing).  There are THREE significant theatrical releases from HHSE for Q4, however, in respect of the merger activities and co-branding with other distribution partners, these titles have not yet been formally announced.  The first is opening in theatres Oct. 6 (so announcement needs to be done very soon).  The second release is November 3 and the final release of these three is Dec. 1 - all are significant level theatrical openings.  On the home video front, HHSE withheld / delayed the street dates to five titles that would otherwise have hit the video market during Q2 - and three additional titles that were slated for home video release during Q3.  These titles will begin hitting the home video, V.O.D. and Electronic / Digital platforms in Q4 and Q1 (2018).

4). NEW VODWIZ PARTNERSHIP - We are pleased, honored and excited to announce a new partnership with Amazon Digital to host the VODWIZ streaming platform - which is being tailored to fit the infrastructure of the Amazon Prime operations.  This major development has breathed a hurricane of new life into VODWIZ, so watch for updates on this venture beginning next week...