HHSE BLOG: Tuesday, June 7, 2016
So much in motion, but there's still only 24-hours in a day!
Greetings HHSE Friends & Followers - If HHSE management works through the night, does that blur the lines between successive days? Or does it just blur their short-term ability to focus on a computer screen? We will leave question to the philosophers.
Regardless - there's so much in motion, so little time, it sometimes feels like HHSE is existing in one, continuously long day!
With (literally) hundreds of follow-up emails and responses due from CANNES... plus FIVE (5) new release video titles shipping for Walmart this week, plus REMARKABLE LIFE in theatres (expanding) and HOMELESS BILLIONAIRE (opening June 17) - on top of Corporate issues of Film Library / Audit / Form 10 / Legal Resolutions and more - the current workload is quite demanding. So apologies for not updating the blog more regularly, or responding to Shareholder emails more promptly (or in some cases, responding at all!).
Here are some updates of items requested from Shareholder emails:
1). NOW SHIPPING TO WALMART - "Dark Awakening" - "Brutal Colors" - "Salvation" - "Union Bound" - "Linda Vista Project." It's an understatement to note that any single supplier - esepcially an independent distributor - would have successfully placed FIVE titles in Walmart at one time. This bodes very well for Q4 cash flows.
2). THEATRICAL ACTIVITIES - "Remarkable Life" has played in five cities thus far, with 12-more on tap for June 17 / June 26. "The Homeless Billionaire" opens in a single screen, Special SNEAK PEEK engagement at the Regal E-Walk Cinema in NYC on June 17. "Homeless Billionaire" will open across the nation on Labor Day Weekend. This Special Engagement is designed to build awareness and to enable HHSE to focus marketing efforts onto a single screen launch as a methodology to maximize results per theatre as initial positioning.
3). FORM 10 FILING STATUS - The completion of the Film Library analysis report is occupying a large amount of the attention for this major corporate governance project. HHSE management is not being allowed to "ignore" the many titles acquired over the past few years - which collectively tip the film & video library to 418 titles. Factors impacting the completion are the needs to generate reasonable and realistic forecasts for titles "yet-to-be-released" - and as such, without the benefit of a prior sales history, HHSE has been required to generate release analysis summaries for all new titles, referencing "comparable" prior releases. It's been a frustratingly time-consuming requirement - but one which we feel will be completed (on HHSE's side) by next week, as we have only 47 more (unreleased) titles requiring release overviews and analysis reports. The addition of the Film Library report will be added to the Audits and the Form 10 for the S.E.C. Filing.
4). VODWIZ - Still awaiting third-party approval to announce a major venture covering VODWIZ. We have discovered that the bigger the partner, the slower their legal departments tend to move...
5). CANNES ACQUISITIONS - We plan to start releasing news of each of the new title acquisitions from Cannes beginning this week.
6). TCA - Someone wrote to ask if the withdrawal of the TCA Lawsuit means that their UCC lien against specific assets is automatically relieved? Unfortunately, the answer is "no," as HHSE counsel will now need to file dismissal forms to negate the UCC filings. But from a practical standpoint, "yes," the end of the lawsuit means that the UCC cannot be used against HHSE without serious legal repercussions to TCA.
Someone also asked if the end of the TCA matter means that they will suddenly be SELLING the 10-mm HHSE restricted collateral shares? The answer is "No." We can confidently state that position due to several mitigating factors: 1). TCA does not have actual possession of the share certificate: it was issued in the name of Caledonian Bank and that entity is now in bankruptcy, under the jurisdiction of a Trustee who has frozen all assets. 2). The S.E.C. has suspended Caledonian from making any securities transactions, thus freezing the asset value of the HHSE Certificate even if they wanted to liquidate it. 3). Caledonian would need to "remove" the Rule 144 Sale Restriction through the HHSE Transfer Agent (Standard Registrar), who have represented to HHSE that, if so requested to proceed, they will not remove the sale restriction without a court order authorizing such an action - due to HHSE's overpayment to TCA, which was evidenced in the court filings. That's where it stands at present. It's possible that someday the issue of the 10-mm share certificate will resurface, but not in the foreseeable future.
... more to follow...
So much in motion, but there's still only 24-hours in a day!
Greetings HHSE Friends & Followers - If HHSE management works through the night, does that blur the lines between successive days? Or does it just blur their short-term ability to focus on a computer screen? We will leave question to the philosophers.
Regardless - there's so much in motion, so little time, it sometimes feels like HHSE is existing in one, continuously long day!
With (literally) hundreds of follow-up emails and responses due from CANNES... plus FIVE (5) new release video titles shipping for Walmart this week, plus REMARKABLE LIFE in theatres (expanding) and HOMELESS BILLIONAIRE (opening June 17) - on top of Corporate issues of Film Library / Audit / Form 10 / Legal Resolutions and more - the current workload is quite demanding. So apologies for not updating the blog more regularly, or responding to Shareholder emails more promptly (or in some cases, responding at all!).
Here are some updates of items requested from Shareholder emails:
1). NOW SHIPPING TO WALMART - "Dark Awakening" - "Brutal Colors" - "Salvation" - "Union Bound" - "Linda Vista Project." It's an understatement to note that any single supplier - esepcially an independent distributor - would have successfully placed FIVE titles in Walmart at one time. This bodes very well for Q4 cash flows.
2). THEATRICAL ACTIVITIES - "Remarkable Life" has played in five cities thus far, with 12-more on tap for June 17 / June 26. "The Homeless Billionaire" opens in a single screen, Special SNEAK PEEK engagement at the Regal E-Walk Cinema in NYC on June 17. "Homeless Billionaire" will open across the nation on Labor Day Weekend. This Special Engagement is designed to build awareness and to enable HHSE to focus marketing efforts onto a single screen launch as a methodology to maximize results per theatre as initial positioning.
3). FORM 10 FILING STATUS - The completion of the Film Library analysis report is occupying a large amount of the attention for this major corporate governance project. HHSE management is not being allowed to "ignore" the many titles acquired over the past few years - which collectively tip the film & video library to 418 titles. Factors impacting the completion are the needs to generate reasonable and realistic forecasts for titles "yet-to-be-released" - and as such, without the benefit of a prior sales history, HHSE has been required to generate release analysis summaries for all new titles, referencing "comparable" prior releases. It's been a frustratingly time-consuming requirement - but one which we feel will be completed (on HHSE's side) by next week, as we have only 47 more (unreleased) titles requiring release overviews and analysis reports. The addition of the Film Library report will be added to the Audits and the Form 10 for the S.E.C. Filing.
4). VODWIZ - Still awaiting third-party approval to announce a major venture covering VODWIZ. We have discovered that the bigger the partner, the slower their legal departments tend to move...
5). CANNES ACQUISITIONS - We plan to start releasing news of each of the new title acquisitions from Cannes beginning this week.
6). TCA - Someone wrote to ask if the withdrawal of the TCA Lawsuit means that their UCC lien against specific assets is automatically relieved? Unfortunately, the answer is "no," as HHSE counsel will now need to file dismissal forms to negate the UCC filings. But from a practical standpoint, "yes," the end of the lawsuit means that the UCC cannot be used against HHSE without serious legal repercussions to TCA.
Someone also asked if the end of the TCA matter means that they will suddenly be SELLING the 10-mm HHSE restricted collateral shares? The answer is "No." We can confidently state that position due to several mitigating factors: 1). TCA does not have actual possession of the share certificate: it was issued in the name of Caledonian Bank and that entity is now in bankruptcy, under the jurisdiction of a Trustee who has frozen all assets. 2). The S.E.C. has suspended Caledonian from making any securities transactions, thus freezing the asset value of the HHSE Certificate even if they wanted to liquidate it. 3). Caledonian would need to "remove" the Rule 144 Sale Restriction through the HHSE Transfer Agent (Standard Registrar), who have represented to HHSE that, if so requested to proceed, they will not remove the sale restriction without a court order authorizing such an action - due to HHSE's overpayment to TCA, which was evidenced in the court filings. That's where it stands at present. It's possible that someday the issue of the 10-mm share certificate will resurface, but not in the foreseeable future.
... more to follow...
