HHSE "Current" Status Restoration / Uplist / MyFlix & More

Greeting HHSE Friends & Followers:  

First of all, regardless of your personal political affiliations or leanings, we hope that you will join Fred Shefte, Eric Parkinson and Randall Blanton as we extend our sincerest best wishes for the recovery of President Trump and the First Lady from the COVID-19 virus.  With all of the turmoil and instability already affecting our nation, we do not need an additional political crisis at this crucial time, and we hope that their recovery is swift and complete.  For those of you directly affected by COVID-19 - whether through direct affliction or from the tragedy of watching loved ones die - as well as for all of us - we hope for a speedy solution to this worldwide viral crisis.

Meanwhile, here are a couple of HHSE updates of interest to shareholders.

1).  OTC Markets - We obtained verification yesterday that our renewal of the OTC Pinksheets subscription will be 100% transferrable into our OTC QB filing fee. We did not promptly renew the OTC Pinks subscription ($3,500) out of concern that this would be lost money due to the OTC QB subscription fee. But with the Yield Sign imminently turning into a STOP sign - we have renewed the filing access to post the Q2 and Q3 filings and be restored as CURRENT REPORTING.  We believe that our filing access to post the Q2 and Q3 reports will be restored TODAY, and that a review of these filings will occur on MONDAY to remove the "STOP" sign.  UPDATE - (Sunday, Oct. 4) - Renewal payment was wired to OTC Markets on Friday. However, HHSE's access to upload filings was not  restored prior to closed-of-business Friday.  Accordingly, we will press our contacts at OTC on Monday morning to reactivate our subscription access so that the required filings needed for "CURRENT" reporting status can be immediately uploaded.  TUESDAY (Oct. 6) Update - HHSE was asked on Monday to advance an additional $1,000 to the OTC Markets due to the lapsed time of the subscription renewal.  This was unclear as the invoice received from them via email last Thursday only listed the $3,500 (which was promptly paid); this additional $1,000 was also promptly paid (via bank wire) already.  We are awaiting their reinstatement of filing access so that the Q2 and Q3 disclosures can be posted and the "Current" status for the company restored. 

2).  MYFLIX - We have signed-up a new supplier partner with very large film library (over 3,000 titles), which elevates both the stature of our releases and the overall available title count (15,000+). We had written an exciting press release about this development, but recognize that we must respect the value of our existing suppliers who have not yet been announced.  A revised "consumer teaser" press release is being drafted which we hope will be substantive but not exclusionary or dismissive of some of our original suppliers.  MyFlix has three consulting firms helping us with the preparation and launch (e.g., Website design, APP creation and PR Outreach); we also now have forty-four (44) supplier partners, which makes an announcement challenging.  This will be resolved as we plan to launch consumer awareness by the end of next week (Oct. 9);

3).  FORM 10 - Company is on target for release this month;  there is some material information about a significant production financing / distribution partnership that is being reviewed and modified so that the Form 10 can proceed with or without specifying non-public information impacting a separate public company. Hold tight...

4).  "SALUTE TO TAHLEQUAH" - Over 250 local businesses, actors and crew in N.E. Oklahoma have helped with the production of "WILDFIRE" - many of whom are likely to be on the HHSE-Snowy Morning Production team once again in June and July with the multimillion dollar production of "THE LEGEND OF BELLE STARR." In a nod of respect and gratitude, Snowy Morning, Inc. and Hannover House, Inc. have placed a full-page color ad in this weekend's edition of the TAHLEQUAH DAILY PRESS thanking the community for the tremendous support received.  In a world that has grown increasingly tense and divisive, it never hurts to show some class and manners with a sincere "thank you" to those of merit.

THANK YOU TO THE PATIENT HHSE LONGS AND SUPPORTERS!

Major Retailer plans for Q1 (2021) Enable HHSE to finally schedule new DVD / BluRay Releases

Greetings HHSE Friends & Followers - After nearly two (2) years of NO NEW RELEASE ACTIVITY for home video products, HHSE is finally able to formalize release dates for a series of titles that have been held back due to market conditions (and COVID impact on retailers).  Watch for these new releases (and new edition re-releases) coming in Q1 (2021) and shortly thereafter from HHSE / Medallion:

MARCH 2, 2021

HEXING - Sci-Fi Horror starring Dominique Swain (DVD / BluRay)

    Gross Sales Forecast:  $65,000

RIDE UNITED - Redbull Motorsports (DVD / BluRay)

    Gross Sales Forecast:  $30,000

MARCH 30, 2021

MANHUNTERS - Action Adventure (DVD / BluRay)

    Gross Sales Forecast:  $115,000

AMERICA UNITED - Concert Special (DVD / BluRay)

    Gross Sales Forecast:  $20,000

SPICES OF LIBERTY - Comedy with South-India audience appeal (DVD / BluRay)

    Gross Sales Forecast:  $35,000

APRIL 20, 2021

SACRED PREY - Trade edition / Fiction Book

    Gross Sales Forecast:  $30,000

EASY LOVE - Foreign Art Film (Streaming, DVD / BluRay)

    Gross Sales Forecast:  $55,000

TOTAL GROSS SALES FORECAST (all seven items):  $345,000

(Approx. HHSE "margin":  $85,000, plus $25,000 in recoupment)

Except for MANHUNTERS, these were all previously acquired titles or re-release promotions that were DELAYED due to the evolving retail marketplace and changes that occurred as a result of the retail shopping impact caused by COVID-19.  With most of the preparation costs completed for these releases, the benefit to HHSE is quite good as there are not significant expenses at this point other than direct cost of goods and freight.  So it will be a nice little bonus revenue stream in Q1 to add to the company's substantial production services fees (for the new feature productions) as well as the MyFlix (HHSE) share of 50% of the net on all MyFlix producer revenues.  Primary retail commitments fueling these specific title sales forecasts are from:  Best Buy, Family Video, Redbox and Barnes & Noble. The company will not be pursuing Walmart placements on these secondary releases, due to Walmart's requirement of approx. 25,000 units of inventory per DVD placement (which is an inventory level greater than the realistic retail unit depletions for these items). 

With HHSE now having a monthly overhead of less than $10,000 (excluding MYFLIX and PRODUCTIONS which overhead costs are funded separately and off-balance-sheet), reinstating a release slate of smaller titles actually becomes a nice bottom-line profit for the company. 

GO HHSE!

HEXING, Trailer:

https://www.youtube.com/watch?v=nGiAJJVSCeE

MANHUNTERS (aka "Redneg") Trailer:

https://www.youtube.com/watch?v=pmMT_y2zx5o

EASY LOVE, Trailer:

https://www.youtube.com/watch?v=wNxYVjNaDHM

So, it's August 25. Why isn't the MyFlix Portal launched to Consumer?

 Dear HHSE Friends & Followers - HHSE Managers have been getting a LOT of emails from shareholders today, due to Aug. 25 being the announced launch date back in May for the MyFlix Streaming site.

Some of you may have already seen the Access Wire release / USA Today story about the MyFlix Launch.  But this blog will provide additional information to shareholders that was too much in-the-weeds of details for a consumer press release.

https://www.accesswire.com/viewarticle.aspx?id=603340

So here's the status of what HHSE management is resolving with respect to MyFlix.  The vast majority of titles that have been licensed from the 43 supplier studios are films that are MORE than eight years old.  This is an important consideration because "direct-to-home-digital streaming" was not a key revenue source eight years ago, and MANY (if not MOST) of the licensing agreements did not specifically spell out "direct to home digital streaming" as a media right being granted.  Accordingly, before Hannover House / VODWIZ / MyFlix can be safely covered under the Errors and Omissions Insurance Policy, there needs to be additional steps taken on a per-title basis to verify that the owner of the films (or authorized copyright proprietor) has approved the inclusion of "direct-to-home-digital streaming" rights in whatever agreement they originally entered into with suppliers X, Y or Z.  

Some of the MyFlix suppliers define streaming as an extension of the physical home video rights granted to them.  Other suppliers classify streaming as being included in television rights that were granted (because there's not a physical videogram unit).  Some suppliers have found that the ambiguity can result in litigation, because a film's actual owner or copyright proprietor might use the absence of specific digital-streaming rights as the basis to file a lawsuit against the MyFlix Studio Supplier (and possibly also against MyFlix, Vodwiz and HHSE).  Accordingly, the company's Errors and Omissions underwriter has asked for copyright owner acknowledgment of the MyFlix placement AND an indemnification to MyFlix from the supplier studios for every, single title to be offered on MyFlix.  So far, we have only lost about a dozen titles to this process... and we are getting the proper verifications at a good clip (about 300 per week). But we cannot chance it, launch the site, and face huge copyright violation claims.  As of today, we have cleared over 1,100 of the 2,500 titles otherwise on-boarded. We should be able to clear another 1,200 to 1,500 in the next four weeks.

Another key issue impacting a planned MyFlix launch today is marketing funds. We have said for years that you only have one chance to make a first impression.  Accordingly, we felt that a successful MyFlix launch would need AT LEAST 2,500 TITLES to start, including MAJOR STUDIO HITS, and a handful of "EXCLUSIVES."  But we also need more than a hope and prayer for a successful launch:  we need marketing impressions and consumer outreach.  A HUGE amount of our exposure will be generated through "barter" placements of key websites onto MyFlix in exchange for MyFlix links on theirs.  But even with a $200,000 value barter campaign with IMDB, there is still a mandatory $35,000 out-of-pocket PAID ad expense component (which the company cannot comfortably fund until we get the first disbursement of S1 Proceeds).  Overall, we have a $1-mm launch for MyFlix ads, requiring about $150,000 in out-of-pocket cash.  We can internally fund the on-boarding process, the clearances and even the preparation of ads and promotions.  But the launch of the high-impact consumer ads is something that will require a chunk of cash in the $150,000 range that we do not currently have available. Could we launch with a "soft start" and limited noise?  Yes, we can do that... and we can re-invest cash flow (collected via credit cards quickly) into offsetting our marketing fund needs.  But we're not doing it until we have at least 2,500 titles both on-boarded AND cleared for insurance coverage.

The company is also not ready to file the Form 10.  There is about a two week time requirement remaining for the last applicable accounting period to be updated to June 30, 2020 (and to avoid having "stale" financials).  There is also some non-public information in the Form 10 regarding certain titles and supplier deals for MyFlix that we prefer to not release until the site has been launched. But we can scrub this information from the Form 10 and release the registration statement as soon as the auditors sign off on the June 30 updates.

We have acquired three "exclusives" for MyFlix, which is pretty exciting.  We also have a letter-of-intent regarding the financing of $5.5-million for "THE LEGEND OF BELLE STARR" for production in Spring of 2021 (two MAJOR stars), which provides operating cash flow and overhead for HHSE. 

Hannover House is chasing really big stuff with really small resources. As a result, we cannot solve some of the problems we encounter by throwing tons of cash at them. At present, we must rely on hard work, a cheap staff and a little bit of luck.  But isn't that the American dream?  Even Jeff Bezos was packing boxes in his garage back in 1995 during the "hard work, cheap staff and little bit of luck" years for Amazon.com.  

Hang in there, we're going to get this done...

Timing and Luck are sometimes the Greatest Elements for Success in the Entertainment Business

Greetings HHSE Friends & Followers:  When the COVID-19 Pandemic shut down the world in mid-March, the schedule of filings and launches for HHSE ground to a halt. The world hunkered down (with some countries more disciplined than others), and we all wondered what the coming weeks and months would bring.  

One of the first issues that became evident in the new COVID reality of a home-quarantine world was that Americans were consuming more entertainment product than ever before... and utilizing a plethora of digital streaming options. 

More than a few people told HHSE management that they blew-through the "MANDOLORIAN" series, all of the STAR WARS movies and the thin slice of Disney / Fox offerings on the DISNEY+ channel in just a few days. Others said that they had already grown fatigued with the limited options on NETFLIX and were hoping that the NBC Peacock or other "brand-specific" streaming services would offer them another slice of delicious enjoyment. All of these issues - consumers wanting more streaming product and no other sites following the MyFlix MULTI-STUDIO all-genres model - have indicated that we are in the right place at the right time for MyFlix.  

In only five weeks, MyFlix is scheduled for an initial consumer launch, and all indicators show that we should have a strong immediate reaction.  As disclosed previously, the launch of MyFlix is not conditioned upon any new financing resulting from the Form 10 / S1 activities. We have separate financing for MyFlix - although the rapid expansion which we hope to need in the months following launch, could benefit from a portion of the S1 proceeds. Regarding the F10, our only update today is that we are confident it will be filed prior to the MyFlix launch.... and this is another example of good timing being in our favor with respect to corporate endeavors with electronic clearing of HHSE shares (now in effect), as the credibility benefits of the F10 and the working-capital benefits of the S1 Registration more closely matching the timing of our MyFlix launch.

But one of the least anticipated results is the tremendous distribution activity in motion for the original production of "WILDFIRE."  The stature of our cast continues to rise as young "Voice" winner CHEVEL SHEPHERD has completed a studio album and is launching a virtual concert tour (DEFINITELY sign up for her July 31 concert at:  https://spproductionslive.com/ ). KEEP IN MIND THAT 13-MILLION AMERICANS VOTED FOR "CHEVEL SHEPHERD" FOR HER WIN OF "THE VOICE" COMPETITION.  It's reasonable to predict that a good percentage of those people will want to see her motion picture debut in "WILDFIRE." 

Another cast member (Olivia Slatton-Fite) has just landed a major modeling contract and a recording deal; Michael Martin Murphey and Mo Brings Plenty each have concerts, films and TV shows lined-up for post-COVID, and Anne Heche and Thomas Jane continue to be solid, proven, Major Studio stars. 

But it's the concept of a teen-aged girl and a majestic horse that has the licensors most excited... as this particular genre of movie is almost always a mid-level commercial hit ($20-mm to $40-mm at the box office).  While this level of Box Office performance is uninteresting to the Major Studios for them to pursue as one of their own production endeavors...they are more than happy to have another company like HHSE facilitate such a production... and for us, the upside is literally millions of dollars more than our prior top-grossing film ("TWELVE" at $4.2-mm total).  So we are very happy with the response to WILDFIRE, as well as the upcoming MyFlix launch and the corporate filings that collectively will make HHSE into a highly visible, highly credible company. 

FOR THOSE OF YOU INTERESTED IN SEEING SOME FOOTAGE FROM WILDFIRE:  We have been cleared to show a VIP Distributor's Promo Reel that is approximately 17-minutes long.  The only requirement for viewing this "not cleared for public broadcast" video is that access can only be granted to verified HHSE Shareholders as of July 17, 2020. The rest of the general public will have to wait until the 2:30-trailer is released later this summer.  Also, please note that the VIP reel has the "Stunt Fall" off the cliff scene REMOVED because this has been promised to a major network entertainment show as a world premiere scene for them to show in support of the film's release.

TO REQUEST A VIEWING LINK for the WILDFIRE Sneak Peek Promo Reel, send an email to: Eric@HannoverHouse.com;  if you are not already known to the company as an existing shareholder of record, please be prepared to provide evidence of your HHSE Stock ownership eligibility to see this VIP reel. 

For those of you interested in Music Soundtracks, we will have THREE Chevel Shepherd Songs, plus a remake of Murphey's "WILDFIRE" a remake of the CCR hit "SUSIE Q" - along with four licensed tracks, two new recordings of public domain tracks and three additional original songs all for the WILDFIRE soundtrack CD and digital album. 

We feel fortunate, we feel blessed, and we feel a bit lucky at how the circumstances and timing have worked into our favor. We hope that each of you also will benefit from this good fortune.  Meanwhile, stay safe, stay strong and stay long!

ONWARD....

HHSE General Blog Update: Friday, July 17

Greetings HHSE Friends - It's been a crazy week, with post-market follow-ups, the F10 and S1, and the completion of the film "WILDFIRE."  A general update blog has been promised, and yet, when there's around the clock activity, it's hard to keep track of the days and timing and to stop and reflect on the marathon now underway.

However, as promised, we will provide additional details on these key corporate activities and initiatives today. 

Hold tight... it's all in motion and all is good!

HHSE MGMNT

New HHSE film, "The Hangin' Judge" Feature Documentary is just-in-time for the CANNES VIRTUAL MARKET!

Greetings HHSE Friends & Followers - "The Hangin' Judge" Feature Documentary (from 7-time Emmy Award Winning Producer-Director LARRY FOLEY) is being launched TODAY by Hannover House for the buyers of the Cannes Virtual Market.  Additional release details to follow.  Here's a copy of our Email blast to 7,100 Documentary and TV buyers today... along with some production photos.

HHSE has kept this and many other current productions "under the radar" from public announcement, as we had planned to release news (almost) every day for the first month following our Form 10 filing. But with this email blast happening NOW for the Cannes Market, it was not realistic to think that HHSE can keep this particular new 2019 - 2020 production a secret any longer.

It has been our belief that any and all news happening PRIOR to the Form 10 filing would be wasted in that most of our shareholders have a rather singular focus on the registration as the company's priority. That hasn't STOPPED HHSE from producing and acquiring additional products... it's just stopped us from publicly disclosing such ventures for a temporary period of time.

ONWARD, GO HHSE, and STAY SAFE (but hey, please wear a mask when in public!).

DVD/BluRay and Streaming Video "key art" design.

"Good Morning America" TV Personality TJ HOLMES is the Host and Narrator of the Film.

Bill Rogers as JUDGE ISAAC C. PARKER in the historically accurate re-enactment scenes. 

Jennica Schwartzman as ADA PETERSON in the historically accurate re-enactment scenes

Judge Parker's court in Fort Smith - and his heavy-hand of the law extended into the "Indian Territory" now known as Oklahoma.

Writer-Producer-Director LARRY FOLEY,

7-time EMMY Award Winner and Chairman of the

Department of Journalism, University of Arkansas

New Era in Trading Ease with HHSE now a DWAC / DTC / FAST approved Equity!

Dear HHSE Friends & Followers - it's an "invisible" achievement unless you are the beneficiary of a certificate issued directly by Hannover House. But the approval for DWAC / Electronic clearing of our shares is a huge step towards our overall credibility with major traders and funds.

For the vast majority of buyers and sellers of HHSE on the "open public markets" (such as brokers platforms like ETrade, Scottrade, TD Ameritrade, etc...), your purchases and sales of HHSE shares have already been processed electronically.  But for direct-issued stock certificates (such as consideration from the company), until now, these have been "Paper Certificates" physically issued and released.

The existence of HHSE shares in paper form has actually created a greater risk of "Naked Shorts" for cover to short sellers... as the inability to immediately verify access to (or ownership of) HHSE shares electronically created a plausible cover for some of these manipulators.  Now, however, with shares instantly clearing electronically, it will become obvious if a short-seller does not control HHSE shares at the time of a fake sale.

In any event... Electronic Clearing is just ONE of the major benchmarks... and was confirmed last week by AMY MERRILL of our Transfer Agent, STANDARD REGISTRAR & TRANSFER CO., INC.  A copy of Amy's email is reprinted below.  She has invited shareholders to call for verification.

ONWARD!!!

UPDATED:  Apparently, a support staff worker at STANDARD REGISTRAR misinformed a caller about our status, as she simply did not handle the matter.  Her email to the shareholder correcting this error is below.  Please note that EVEN THOUGH our HHSE shares are now DWAC / DTC / FAST cleared, this does NOT change the tacking / aging period requirements of anyone receiving shares.  For instance, HHSE President's FRED SHEFTE's ex-wife (Diana) will be issued shares of HHSE in the next two months following certification of their divorce settlement. The date of the shares that Ms. Shefte receives will start the clock for a 12-month aging before they are eligible to sell. This is a Rule 144 legal requirement, regardless of what "the sky is falling" proven stock manipulators try to convince you.