30 JAN 16 Blog - b). The HHSE Film Library
Post# of 7505
Posted On: 06/07/2016 3:25:02 PM
30 JAN 16 Blog -
b). The HHSE Film Library Report is missing over 220 titles that have been added since 2010 (the last date that the library was reviewed and evaluated by an outside party). The new auditors have encouraged HHSE to immediately complete a current (12-31-2015) Library Valuation Report - and to utilize one of the top six specialty firms in that industry. HHSE has already commenced this engagement and new library report.
Both items (3a and 3b above) are expected to be completed in the next few weeks, and will become items referenced within (or directly included within, either fully or in abbreviated formats) to the Company's Form 10-registration statement and Auditors report. Company asks shareholders to note that once HHSE's work portions are submitted to the Auditors and Film Library Valuation Company, that the control over completion timing is no longer under Company's control.
c). NEW AUDITING COMPANY and NEW LIBRARY VALUATION COMPANY - Some shareholders have asked if HHSE is going to formally announce the new auditors and the new Library Valuation firm prior to the filing of the Form 10 registration. HHSE counsel informs management that since HHSE is not yet fully reporting and fully registered, that such a disclosure in advance of the Form 10 Registration is not required. In respect of prior "interventions" by shareholders in contacting auditors, HHSE prefers to minimize these unprofessional distractions and enable our service providers to do their work without interference.
3a). 2015 YEAR END RESULTS - Full year (2015 results) are expected to be released on or before February 12, 2016.
4). UPDATED LIBRARY VALUATION STUDY - The addition of 220+ titles not currently carrying any value to the HHSE library, is expected to more than offset any write-downs due to a general decline in catalog sales for DVDs over the past five years. Other revenue streams (most notably Video-On-Demand) have offset much of the decline in physical goods sales, but only for certain genres of movies (and for current theatrical releases); older direct-to-video titles have, for the most part, under-performed at the income levels previously forecasted... while theatrical titles have over-performed. HHSE management will be looking at these market trends, as well as title-specific sales histories for the past three-to-five years, in order to extrapolate a realistic and achievable value for each of the titles in the Hannover House / Medallion Releasing film libraries.
So JAN through JUN for a library valuation? Something is off with the library valuation. Fear not, I will get to the bottom of it.
b). The HHSE Film Library Report is missing over 220 titles that have been added since 2010 (the last date that the library was reviewed and evaluated by an outside party). The new auditors have encouraged HHSE to immediately complete a current (12-31-2015) Library Valuation Report - and to utilize one of the top six specialty firms in that industry. HHSE has already commenced this engagement and new library report.
Both items (3a and 3b above) are expected to be completed in the next few weeks, and will become items referenced within (or directly included within, either fully or in abbreviated formats) to the Company's Form 10-registration statement and Auditors report. Company asks shareholders to note that once HHSE's work portions are submitted to the Auditors and Film Library Valuation Company, that the control over completion timing is no longer under Company's control.
c). NEW AUDITING COMPANY and NEW LIBRARY VALUATION COMPANY - Some shareholders have asked if HHSE is going to formally announce the new auditors and the new Library Valuation firm prior to the filing of the Form 10 registration. HHSE counsel informs management that since HHSE is not yet fully reporting and fully registered, that such a disclosure in advance of the Form 10 Registration is not required. In respect of prior "interventions" by shareholders in contacting auditors, HHSE prefers to minimize these unprofessional distractions and enable our service providers to do their work without interference.
3a). 2015 YEAR END RESULTS - Full year (2015 results) are expected to be released on or before February 12, 2016.
4). UPDATED LIBRARY VALUATION STUDY - The addition of 220+ titles not currently carrying any value to the HHSE library, is expected to more than offset any write-downs due to a general decline in catalog sales for DVDs over the past five years. Other revenue streams (most notably Video-On-Demand) have offset much of the decline in physical goods sales, but only for certain genres of movies (and for current theatrical releases); older direct-to-video titles have, for the most part, under-performed at the income levels previously forecasted... while theatrical titles have over-performed. HHSE management will be looking at these market trends, as well as title-specific sales histories for the past three-to-five years, in order to extrapolate a realistic and achievable value for each of the titles in the Hannover House / Medallion Releasing film libraries.
So JAN through JUN for a library valuation? Something is off with the library valuation. Fear not, I will get to the bottom of it.
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