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Monday, April 16, 2018

General Updates - Monday, April 16, 2018

Greetings HHSE Friends & Followers - Quick Blog Update on a few items of interest to some of our shareholders.

1).  PRE-AUDIT PACKAGE (2016 / 2017) - outside CPA activities to compile and conform to our auditor's formatting standards is still in process... delayed by only a few days for annual tax client filings.  Prepayment of Form 10 activities (outside CPA, Library Valuation and basic audit) will assure that the registration process moves quickly over the next few weeks.

2).  CANNES SCREENING SCHEDULES - Four HHSE / Medallion titles have been accepted for official market screenings at the Palais Des Festivals.  DEATH HOUSE and THE RIOT ACT will screen on May 15;  GETTING GRACE and DAISY WINTERS will screen on May 16.  Major international buyers are confirmed to attend these screenings, including some of the European representatives from Sony Pictures International.

3).  LEGAL UPDATES - Although HHSE has not been served, we have been informed of legal filings made by Uptone Pictures (UNION BOUND) and an unknown affiliate of Crimson Forest. On the surface, from the information received, both appear to be completely without merit and of the nature in which our counsel will be able to move for dismissal.  Once served, HHSE counsel will reply and move for dismissal, as well as the possibility of sanctions and fines for the filing of baseless, nuisance litigations as an abuse of service to the court.

4).  ALTERNATIVE CINEMA VENTURE - Working closely with five major theatre circuits,  HHSE has structured a new and unique strategy for theatrical distribution of films that we are calling "Alternative Cinema."  A formal press announcement will launch this week (likely Thursday or Friday), detailing how movies such as "SPICES OF LIBERTY", "DEATH HOUSE", "BLOOD FEAST" and even "GETTING GRACE" can reach over 100 theatre locations under a cost effective means that is designed to drive special event attendance.

5).  VIDEO REPLICATION - HHSE / Medallion are in discussions to move a portion of video manufacturing (DVD / BluRay) over to SONY DADC in Terre Haute, Indiana - in order to more efficiently service physical release titles that are being handled for the Company by Sony Pictures Home Entertainment.  For the past four years, HHSE has been utilizing Encore Media Services (aka "Signature Media") in Valencia, CA for all video manufacturing; the move over to Sony will only be for specific (Sony-distributed) titles.

6).  CURRENT / ONGOING THEATRICAL ACTIVITIES - "GETTING GRACE" continues to add new markets. Openings last week in the greater Salt Lake City metro are all being held-over.  New markets for this weekend as we as 4/27 include Dallas-Ft. Worth, Saginaw, MI, and Bethlehem, PA. Markets this weekend for "BLOOD FEAST" include Minneapolis-St. Paul and St. Louis.  "DEATH HOUSE" is off-screen this weekend and on 4/27 - but will launch under the Alternative Cinema venture the first week of May.

7).  PRODUCTION UPDATE - Principal photography for "LAST CHANCE" is being scheduled for mid-September in Fayetteville, AR, in order to accommodate the availability of a major star to play the lead role.  "THE RIOT ACT" edit is now completed and is now in final scoring and mixing in time for the Cannes screening on May 15.  Finance meetings regarding the bigger-budgeted "MOTHER GOOSE: JOURNEY TO UTOPIA" will continue at the Cannes market in May, which HHSE feels could be more fruitful now with Sony Pictures Home Entertainment as the USA distribution partner.

More to follow...  onward & upward!!