Don't know if you received an answer yet, but it is on page 16 of the HHSE Quartlerly report. The following was taken verbatim from the report about the NTEK/HHSE relationship:
Since the end of the applicable reporting period, Company has grown concerned with the status of a servicesagreement
entered into in 2013 with Nanotech Entertainment for the operational (technical upload and delivery)
needs for the upcoming VODWIZ digital-streaming service. HHSE is concerned that the insufficient attention and
resources may have been committed to uploading new titles to VODWIZ, and is currently, actively seeking to
address these concerns and to work towards establishing a mutually acceptable framework for a moving-forward
relationship. HHSE acknowledges that Nanotech may also have concerns about masters and other delivery elements
from HHSE and HHSE supplier studios that are participating in the VODWIZ launch. The establishment of the
VODWIZ site and portal is complex, and involved literally thousands of feature films and more than a dozen
suppliers, each delivering elements in a wide assortment of formats. It is not unreasonable that the task of uploading
titles has proven time-consuming and, at times, problematic. It is HHSE’s intention to continue working with
Nanotech, provided that an acceptable game-plan and schedule can be agreed. HHSE has been approached by other
technical services providers, and anticipates that there would be no negative impact to the consumer roll-out of the
VODWIZ site and portal if, for any reason, including mutual dissolution, that the services agreement with Nanotech
is not continued. There are no other material disputes or lawsuits requiring Company’s response.
Some have stated that this is a non-issue as far as NTEK is concerned. I would respectively disagree. Any time you have a disgruntelled partner you need to seek remedial action. This is a potential revenue source. However, HHSE does acknowledge that there is a level of difficulty here that is not the fault of NTEK and so they appear to want to stay with NTEK. And we should seek to make it worthwhile for them to do so - as long as it also benefits NTEK. Oh, I am long in both NTEK and HHSE.
Since the end of the applicable reporting period, Company has grown concerned with the status of a servicesagreement
entered into in 2013 with Nanotech Entertainment for the operational (technical upload and delivery)
needs for the upcoming VODWIZ digital-streaming service. HHSE is concerned that the insufficient attention and
resources may have been committed to uploading new titles to VODWIZ, and is currently, actively seeking to
address these concerns and to work towards establishing a mutually acceptable framework for a moving-forward
relationship. HHSE acknowledges that Nanotech may also have concerns about masters and other delivery elements
from HHSE and HHSE supplier studios that are participating in the VODWIZ launch. The establishment of the
VODWIZ site and portal is complex, and involved literally thousands of feature films and more than a dozen
suppliers, each delivering elements in a wide assortment of formats. It is not unreasonable that the task of uploading
titles has proven time-consuming and, at times, problematic. It is HHSE’s intention to continue working with
Nanotech, provided that an acceptable game-plan and schedule can be agreed. HHSE has been approached by other
technical services providers, and anticipates that there would be no negative impact to the consumer roll-out of the
VODWIZ site and portal if, for any reason, including mutual dissolution, that the services agreement with Nanotech
is not continued. There are no other material disputes or lawsuits requiring Company’s response.
Some have stated that this is a non-issue as far as NTEK is concerned. I would respectively disagree. Any time you have a disgruntelled partner you need to seek remedial action. This is a potential revenue source. However, HHSE does acknowledge that there is a level of difficulty here that is not the fault of NTEK and so they appear to want to stay with NTEK. And we should seek to make it worthwhile for them to do so - as long as it also benefits NTEK. Oh, I am long in both NTEK and HHSE.
