Posted On: 05/24/2016 8:00:58 PM
Post# of 7452
HHSE FORM 10 very near...Library Valuation $28M+
Item 11 A1-A6 – Supplemental Disclosures.
i).
Company anticipates that the updated Form 10-12(g) Registration Filing, including 2-years of full-year audits and a revised and updated Film Library Valuation Report will be submitted to the S.E.C. in the near-term future, subject to the completion of the new Film Library Valuation (it should be noted that Company is seeking to obtain a lowered valuation than the initial figure determined by the new Library Evaluators, which contains sales forecasts for titles greater than Company Management’s estimates. It is Company’s position that a Library Valuation that is significantly higher than forecasts based on Company’s existing, internal self-distribution apparatus, could elevate shareholder expectations higher than management’s more conservative forecasts. While the higher sales values provided by the first Library Valuation report have as a premise the assumption that HHSE will align itself with one of the Major Studios in the coming year, there can be no assurance that such a deal will occur, and as such, management feels that the current Film Library Valuation should reflect existing distribution channels and revenues, and conform closer to management’s estimated current value of $28-mm. A review of sales activities at the Cannes Film Festival and Marche du Film (held in May, 2016, subsequent to the current reporting period), will be included in a telephonic discussion on May 25 with the Film Library valuation supplier, with the goal of reaching a mutual consensus as to a value that is both realistic within the industry, and obtainable based on Company’s current distribution apparatus.
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Item 11 A1-A6 – Supplemental Disclosures.
i).
Company anticipates that the updated Form 10-12(g) Registration Filing, including 2-years of full-year audits and a revised and updated Film Library Valuation Report will be submitted to the S.E.C. in the near-term future, subject to the completion of the new Film Library Valuation (it should be noted that Company is seeking to obtain a lowered valuation than the initial figure determined by the new Library Evaluators, which contains sales forecasts for titles greater than Company Management’s estimates. It is Company’s position that a Library Valuation that is significantly higher than forecasts based on Company’s existing, internal self-distribution apparatus, could elevate shareholder expectations higher than management’s more conservative forecasts. While the higher sales values provided by the first Library Valuation report have as a premise the assumption that HHSE will align itself with one of the Major Studios in the coming year, there can be no assurance that such a deal will occur, and as such, management feels that the current Film Library Valuation should reflect existing distribution channels and revenues, and conform closer to management’s estimated current value of $28-mm. A review of sales activities at the Cannes Film Festival and Marche du Film (held in May, 2016, subsequent to the current reporting period), will be included in a telephonic discussion on May 25 with the Film Library valuation supplier, with the goal of reaching a mutual consensus as to a value that is both realistic within the industry, and obtainable based on Company’s current distribution apparatus.
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