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Thursday, May 21, 2015

Corporate Governance Update

Good Morning HHSE Friends - the time distractions of our Cannes activities, new release shipments and VODWIZ mastering over the past two weeks had a major impact on the timeliness of some corporate housekeeping matters. However, we're pleased to report the following:

1).  Current OTC Status - the attorney's letter is expected today, for posting tonight. This should restore HHSE to Current OTC  status.

2).  Q1 full filing to OTC - also expected to be posted later today.

We do not have as specific of information on the refiling of the revised Form 10 - as we do not have a working history with the new auditors against which to estimate their completion.

Press updates on Cannes, theatricals and productions will be released without prior fanfare.


Wednesday, May 13, 2015

This is why a Soft-Launch is so Crucial - - -

Over the past two weeks since consumers were first made aware of the forthcoming launch of VODWIZ, we have generated over 30,000 clicks to checkout the site, earned over 2,300 FaceBook "likes" and registered hundreds of new VODWIZ users.  Unfortunately, we've also encountered various problems with registration confirmations, order processing and glitch-free digital deliveries.

As stated before, a soft-launch for a major consumer website is crucial for working out such issues before going gangbusters with tonnage of new title listings and millions of consumer impressions.

The technical glitches are being addressed, and will hopefully be resolved in the next few days.  HHSE and VODWIZ are making a presence at the Cannes Film Festival and Marche du Filme this week (and next) with quite a few new supplier studios and rights-licensing agencies ready to sign-up for participation.

On a related note, HHSE and VODWIZ are pleased to announce the appointment of Katherine Mills as VODWIZ STUDIO RELATIONS Manager.  Katherine has been working in a production and mastering capacity at HHSE since last September, and as of this past Monday, has been promoted to this enhanced position as primary contact person for all VODWIZ supplier studios.

Could VODWIZ become the tail that wags-the-dog at HHSE?  Based on the enthusiastic response received from a wide range of suppliers, many would  predict "yes," that VODWIZ could become something very significant!  A few glitches need tweaking and more titles need adding - but the structure is in place for an exciting result...




Monday, May 11, 2015

Q1 for 2015 Sets Record Pace for Record Year at HHSE!

Good Morning HHSE Friends & Shareholders - As predicted back in November, the cumulative benefit of handling a record number of new release titles for DVD, BluRay and Video-On-Demand has already generated a record sales result. Core sales for Q1 2015 (physical video and V.O.D.) increased to $1,264,337 compared to $346,639 for the same quarter in 2014.  Overall revenues for Q1 2015 were impressive at $1,732,208 - and even after adjustments for potential video returns (unsold merchandise from mass merchants), the revenues remained on record pace at $1,397,997.

Cost of sales and operations increased in Q1-2015 as compared to 2014 - due to a larger staff and salaries, as well as due to new accounting procedures for larger hold backs on accrued royalties and deferred income taxes. However, HHSE management feels that the substantial increases in both revenues and bottom line results justifies the modest increase in overhead and operating costs.

Key video titles in Q1 were AMERICAN JUSTICE, GABRIELLE, ASALTO AL CINE and GRAND CHAMPION,  Other items and sources adding significantly to revenues included sales contracts for THE SUMMONING, several video-on-demand agreements with Netflix and ongoing revenues from 20th Century Fox Home Video for TWELVE.

Below are the summary charts for G&A and the Income Statement for Q1, 2015 - with comparison columns for the same reporting quarter in 2014.  The complete financials for Q1, 2015 are included in the company's 10Q report, which will be released later this week onto both the OTC Markets site, as well as through the S.E.C. Edgar site.

Upcoming activities scheduled for HHSE this week and next week include:

*   Filing of 10Q Report;  Filing of Atty's Letter (to restore OTC Current Status);

*   Re-Submission of Form 10-12(g) with new auditor's report and compliance;

*   Cannes Film Festival Announcements / Acquisitions & Alliances;

*   Investor Awareness Campaign - including HHSE as a Featured Company at the Money Show;

*   VODWIZ Technical Tweaking, New Title Additions and expansion of consumer outreach;

*   New Product Shipments for JUNE & JULY street dates;

*   New Staff Additions (VODWIZ and Theatrical Services);
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HHSE Managers are grateful and thankful for our many loyal, and long-standing shareholders, who have stayed with the company during the rough growth periods, and remained strong against the three-ring circus of anti-HHSE flippers. The company set a goal to be a successful and growing player in the entertainment & media industries, and HHSE is clearly delivering. These next few days, weeks and months are shaping up to be major turning points for HHSE. If the wise and proven stock prognosticators are correct, the volume and PPS for HHSE could each see new highs.

But there is a challenge. An increase in daily trading volume of the HHSE may be what's required to break past the $.02 barrier that some "flippers" would like to impose as a ceiling. The strategy of these "Rinse-and-Repeat" manipulators is to try to box the stock from not breaking back to it's book value ($.08 to $.12 according to several media industry experts). Why?  Because at $.02, the PPS is easier to jam down to $.01 through relentless blabber on chat boards, which sometimes can demoralize legitimate shareholders into selling at artificially lowered prices. Then, boom, magically the flippers "shut the f**k up" for a few days and allow the stock to bounce back up. "Rinse-and-Repeat" is the phrase that the primary manipulator has used on one of the more popular chat boards to describe their coordinated and illegal scheme.

If HHSE were trading over $.04, it would be very difficult for the flippers to impact the stock with their modest purchasing abilities. So while HHSE now has a Civil Lawsuit drafted for Federal Court - and the FBI and US Attorney's office have a Criminal action against the flippers in motion - one very wise HHSE long had some interesting advice to share: >>>

He said: "The best way to hurt them immediately is to do the opposite of what they say.  If they are screaming 'the sky is falling' yet again, then that means BUY NOW, BUY LARGE.  If they say 'sell, sell, sell' that means HOLD OR ACCUMULATE.  Think of every day as 'opposite day' when reading the clown squad's IHUB posts."

Regarding the HHSE lawsuit, the update is that the US Attorney's office reviewed our complaint and responded this past Thursday with comments and a check list for HHSE to handle. The actual identities of all but one of the chat-room clowns has been verified, and HHSE has hired a private investigator in Malibu to track down locally there the identity of this last party in the civil lawsuit.  Unfortunately, HHSE cannot access the FBI's investigation results for the filing of our Civil lawsuit. But we have been providing them with all of the materials and evidence off various chat boards, from the many Private Messages that have been provided to us, and from emails that some of them (!!) have sent directly to HHSE management - apparently, oblivious to HHSE's voluntary decision to provide access for all company emails to the FBI Investigations team. HHSE will comply with the US Attorney's comments, and then we will authorize the filing of the Civil lawsuit in Federal Court in Arkansas. That's another (potentially) major development for HHSE over the next couple of weeks...

Meanwhile - Q1 Results are EXCITING and proof that the new MEDALLION RELEASING, Multi-Studio Venture under Tom Sims is a successful new component of HHSE's Growth and Emergence as a Major Independent Studio!  Go HHSE!




















Friday, May 8, 2015

Pocket-Flyer - Introduction to HHSE for Money Show Attendees!

    HHSE is honored to have so many supportive shareholders - and to see a concerted initiative to help build awareness and a better informed shareholder base. Beginning today, HHSE will be one of the featured companies at the Money Show in Las Vegas, and will be visible through Catalyst Global,  brochures and signage.  HHSE managers wish to thank Graham Financial Services and the other longs who arranged for and paid the funds required for this important initiative of IR support. It is our understanding that these outreach of informative activities will occur over the next few months, with increasing velocity as HHSE achieves its benchmark goals. Stay Tuned!


Revised Form 10 to be Promptly Re-Filed with the S.E.C.

Dear HHSE Friends - As previously reported, HHSE was informed on April 28 that our prior auditor (Terry L. Johnson) had lost his authority to sign-off on Public Company audits.  Accordingly, and without delay, HHSE engaged a new PCAOB firm to handle the 2014 audit project.  No, the new auditor is not Grizzly Adams, or whatever entity the anti-HHSE stock clowns wish it were.

In any event, on Tuesday, HHSE received a call from Dana Brown and Melissa Raminpour of the S.E.C. to discuss the Terry Johnson matter in further detail.  While the audit work that Johnson performed on HHSE was never in question, the revocation of this PCAOB approval suddenly rendered his previously approved financials as "deficient" - solely due to his certification authority, (and having absolutely nothing to do with HHSE's audit or the validity of the Form 10).  A follow-up call to evaluate options for a time extension was suggested, to enable HHSE the opportunity to determine if the new auditing firm would be able to expeditiously review and certify the 2012 and 2013 work already performed.  It was determined today that the 2012 and 2013 audit review would not be ready by Monday (May 11), and that the Form 10 maturation date (of 60-days) may have resulted in the registration becoming "Active" but materially deficient for lack of three-years of PCAOB certified audit confirmation.

HHSE was advised that a Form RW withdrawal of the Form 10-12(g) Registration Statement would prevent the company from potentially becoming a deficient filer... and enable the company to promptly re-file the revised Form 10-12(g) - with the three years of audits - under an Accelerated approval request.

So the bad news is that the Registration Statement will not be active as on Monday, May 11.  The good news is that HHSE will promptly re-file and request accelerated review, since the rest of the Form 10 has been studied.  It's a delay, but not a very long one.

Quite likely, the clown-squad - the "sky is falling" IHUB chorus that has grown so tiresome over these past five years (when their oft-promised disasters never occur) - will gleefully try to convince shareholders that HHSE's decision to follow the sage advice of counsel is actually something nefarious.  Yes, it was a disappointment to find out that five weeks after filing the Form 10, our auditor lost his certification. But it was promptly resolved by hiring a much larger accounting firm.  It was another blow to learn that the 2012 and 2013 results were no longer valid for the same certification reason.  But we dealt with that too... and have a plan for accellerated approval of the revised Form 10-12(g) filing.

Next week:  Q1 results (very good!), HHSE presentation at MONEY SHOW (in Las Vegas), and big CANNES LAUNCH announcement.  Would have been nice if the Form 10 had matured on Monday, but it's only a short delay, and everything else positive is still on the prior schedule!

Watch this space...

Meanwhile, here's the Form RW filed with the S.E.C. today...

FORM RW
Hannover House, Inc.
1428 Chester Street
Springdale, AR  72764
(Commission File No. 000-28723)

May 8, 2015
VIA EDGAR AND FEDERAL EXPRESS
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, D.C. 20549-6010

Attention:              Dana Brown, Legal Department
                                Andrew Mew, Senior Assistant Chief Accountant

                Re:          Hannover House, Inc.
                                Request to Withdraw Registration Statement of Form 10-12(g), (File No. 02202015)
Gentlemen:
Following the telephonic discussion with your office regarding subsequent events that have impacted our company’s Form 10-12(g) Registration Statement – specifically the requirement for the company to engage a new PCAOB certified auditing firm due to the recent revocation of the certifying authority granted to Terry L. Johnson, C.P.A. – Hannover House, Inc. is unable to comply by May 11 with all required revisions to the Registration Statement, as were specified in your letter of March 26, 2015 and as further clarified in subsequent telephone calls.
Pursuant to Rule 477 promulgated under the Securities Act of 1933, as amended, (the “Securities Act”) Hannover House, Inc., a Wyoming corporation (the “Company”), hereby respectfully requests that the Securities and Exchange Commission (the “Commission”) consent to the withdrawal of the Company’s Registration Statement on Form 10-12(g) (File No. 02202015) together with all exhibits thereto (the “Registration Statement”) as of the date hereof or at the earliest practicable date hereafter. The Company is withdrawing the Registration Statement because the audit report from the new auditing firm is not expected to be ready by May 11.  The Company intends to promptly re-file with a revised Form 10-12(g) report containing the new audit certification (and additional disclosures and compliance instructions). The Form 10-12(g) Registration Statement was originally filed with the Commission on March 11, 2015. The Registration Statement was not declared effective by the Commission under the Act.
Please send copies of any written order granting withdrawal of the Registration Statement that the Commission may issue to the undersigned at the address above on this letter with a copy to the Company’s counsel, James Scheltema, Esq. by email at Jim@SmallCapDevelopment.com or by fax at (850) 912-8529. If you have any questions regarding this letter, please contact the undersigned, Eric F. Parkinson, C.E.O. at (479) 751-4500. Thank you for your assistance with this application for withdrawal.

                                                                                                                                Sincerely,

                                                                                                                                HANNOVER HOUSE, INC.


                                                                                                                                By: /s/ Eric F. Parkinson                                                                                                                                                                     Eric F. Parkinson, C.E.O.


Wednesday, May 6, 2015

Soft Launch of VODWIZ is gaining positive momentum and followers!

Good morning HHSE Friends - There have been requests for an update and commentary on the soft-consumer launch of VODWIZ this past weekend.

COMMENTS:

1).  REGISTRATION PROBLEMS - We have received about a dozen email complaints from consumers that they were unable to fully "register" for use on the site.  We are working with our services provider to address this issue.

2).  STREAMING PROBLEMS / "GLITCHINESS" - We have received some reports of images freezing on screen, or other glitch errors in streaming of movies.  We are also working with our services provider to address this issue.

3).  NEW MOVIES - With hundreds of films fully delivered to HHSE from partner studios, why aren't all of them posted onto VODWIZ already, is a question received several times.  This answer is compounded:

a).  Registration Issues - we need to smooth out this process before adding tonnage to the website traffic.

b).  Streaming Issues - we need to improve the quality of image / data delivery before adding tonnage to the website traffic.

c).  Marketing Opportunities - we believe that adding new titles on a WEEKLY basis provides a rationale for VODWIZ to reach out to registered users repeatedly to "come back and check out the newly added titles."

4).  FACEBOOK FANS - We have gone from less than 100 FaceBook Fans to over 2,200 "likes" in the first five days of our campaign... and our visibility will increase in pressure over the coming weeks!




Update on Form 10, Audits, Exchange Status, etc...

Good Morning HHSE Friends - Here's a quick recap of some Corporate Housekeeping issues of interest to shareholders.

1).  NEW AUDITOR & 2014 REPORT - As most of you may have already heard, the auditor hired by HHSE to perform the 2012 and 2013 audits (Terry L. Johnson) had his authority to sign-off on future public company audits revoked in mid-April.  HHSE was informed of this development by Mr. Johnson on April 28, when we contacted him for a status on our 2014 report.  Needless to say, this was distressing and unexpected news, and required immediate action on our part.  A new auditing firm (fully licensed and approved), was engaged, and the materials previously provided to Terry L. Johnson over the prior months (four large boxes of sales and payables detail and other audit materials) have been forwarded. Unfortunately, under PCAOB standards, the previously completed verifications are required to be performed yet again by the new auditor, and the expeditious completion of this task has challenged our prior internal schedule to have the 2014 numbers in hand by now.

2).  OTC "LIMITED INFORMATION" STATUS TO BE RESTORED - As a result of not being able to file the 2014 audit report by yesterday, the OTC Pinksheets status for HHSE was temporarily lowered to "Limited Information."  This will be restored in the next day or two as the company will provide the Attorney's Letter for OTC Markets compliance, rather than waiting any more days for the audit report to be delivered.  Maintaining "Fully Current" reporting status is important to our shareholders, and will be maintained while the issues of the new auditor and revised Form 10 are addressed.

3).  FORM 10 STATUS - A call is scheduled for Friday with the S.E.C. to discuss the revisions to the HHSE Form 10 filing, including the change of auditors.  A blog update will be posted after that discussion is completed.

4).  LAS VEGAS MONEY SHOW - We're pleased and honored to report that Hannover House will be a featured company at the "MONEY SHOW" in Las Vegas next week.  Over 10,000 attendees - many of whom represent deep pocketed, long hold investors - will be present.  An update will be posted on the morning of May 12, the first day of this three-day investor conference!

www.LasVegasMoneyShow.com


5).  CIVIL LITIGATION - HHSE has verified the actual identities of five of the individuals that have posted knowingly false and damaging attacks against the company and it's managers on IHUB. HHSE is also working with the FBI and the US Attorney's office in their investigation of trading activities that occur in concert with the periodic elevation of attack posts. We have been advised to not publicly disclose any greater detail at this time.

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COMMENTARY FROM HHSE - Filing the FORM 10 was a very big deal for the Company, and getting through the audits with Terry Johnson was no walk in the park.  HHSE hired Terry Johnson on Sept. 18, 2014 and it took months to complete the 2012 and 2013 audits.  In retrospect, had we known that the Form 10 would not be ready to file (due to audits) until March 11, 2014 - we obviously would have included 2014 in our plans.  However, waiting for the 2014 numbers would have slowed down the timing of the filing, and waiting was not a desirable strategy for many of our shareholders.

HHSE is committed to completing this process and fully complying with all filing requirements as set forth by the S.E.C. and the applicable rules and regulations.

Meanwhile, we continue to make progress with our core releasing activities (DVD and Bluray shipments - and MEDALLION STUDIOS vendor partners), as well as the quiet launch of VODWIZ and the roll out of summer theatrical releases.  While the auditor issue was an unexpected bump-in-the-road, it's clearly not more than a quickly resolved issue as HHSE forges ahead at ever increasing speed.  We believe that the sum total of all our positive developments will manifest soon in the marketplace.