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Valid points.
Let’s put HHSE’s performance into perspective . HHSE has over 1 Billion shares outstanding but in 2Q23 only had revenues of $ 57,000 . LOL
Is this the same person as the “ former CPA” recently identified as “reviewing”
the recent OTC Markets filing ? If so, he is not a CPA. As he is alleged to have Sarbanes Oxley expertise, he might start by assessing HHSE’s liabilities to make sure that the SEC filings properly include and disclose the full amounts owed. If these amounts are not accurate, perhaps he might advise Mr. Parkinson if he might have potential personal liability issues if there are an misrepresentations.
This film has a cast of over 250 and Parki’s role is cited as “ uncredited “
Gotta love the audacity on the accounting ! Parki once claimed that a $400k California Court Judgement that was immediately due and payable was being accounted for as a “long term liability” because the debt had been owed for “ a long time”. Seriously !
BTW - out of curiosity, does anyone know if a “ former CPA “ perform an audit ? My guess is “No”. Anyone else wonder why the accountant is no longer a CPA ? Age ? Discipline ? Is he in California?
-Regarding HHSE’s now admitted flawed legal strategy, there is a $400k ( plus accrued interest at 8% ) judgement in California but NO contact from HHSE. Can someone ask Mr. Parkinson to give a call ?
I hope the auditor has a complete list. No one has contacted me
Has HHSE ever gotten an audit in the past year ? Or two ? Who is the audit firm ? I doubt they are aware of some of the outstanding liabilities.
What is left to turnaround?
I’d stay in watch mode. The company lost its Rich Dad Poor Dad product line several years ago and has been imploding ever since. There may be some filing out there that they are in default on several loans.
Any news ? What is the business model?
There has been no attempt to retire the $400,000 ( plus accrued interest ) Inter Star California judgement. My understanding is that the judgment has been renewed.
Does HHSE have an auditor to confirm that this judgement is included in liabilities ? Eric once said that it was included in Long Term Liabilities rather than as a Current Liability because it” has been owed for a long time”. Classic Parki.
What has happened to all the historic posts from the people who followed LEAI ?
Very interesting.
Ha Ha Ha. $500,000 would evaporate like spit in a hot skillet. I haven’t been contacted about any upside settlement
This list is likely as long as the list of outside shareholders
Today Apple cut the price of Apple TV to $4.99 a month. Do you think it was a preemptive price cut to thwart competition from MyFlix and HHSE ?
From the "No Spin Zone" -- What this really says is that HHSE needs to have a GAAP compliant AUDIT in order to get raise additional capital and get uplisted with the SEC / OTC. An audit will require full disclosure of all Court Judgements. No audit firm is going to speculated on the validity of Eric Parkinson's legal theories. No disclosure of the judgments / No audits. Period. No audits, no F-10 filing. No S-1 filing, No SEC "next" questions about whether HHSE is a going concern.
With apparently somewhere north of $10,000,000 of outstanding court judgments, all of which are "current liabilities", HHSE is insolvent and could not pass any "going concern" test.
It's time for HHSE is face the facts and reach settlements with all the judgment holders to reduce current liabilities in order to pass any liquidity test. Maybe HHSE needs to pledge its current interest ( whatever this amounts to ) in MyFlix to a creditors trust in order to accomplish this.
September 25 Meeting with SEC? Not to interlope, but please advise if you would like me to see if [img][/img]having a judgment creditor attend is possible.
Is it fair to summarize the most recent HHSE blog posting to say that 1) Fred is retiring ( bailing out) so Eric is left alone to fill dvd shipping orders by himself. If Fred had been deferring his salary , how is HHSE going to pay a "public company " CFO ? 2) Now 8 months into the year of the Tent Pole Strategy, Eric says the company still has virtually no revenues. 3) Eric is lending the company money to keep the doors open (barely) but who knows where this is coming from and how long it will last. 4) Let's presume some eagle eye will note the amount and terms of Eric's loans. 5) We have yet another promise of a Form 10 filing "next week" and the implication of a completed audit both of which will require proper accounting for all of the outstanding judgments. How is the auditor getting paid 4) Some observers estimate the outstanding judgment liabilities at over $13 million which implies that HHSE is insolvent 4) The HHSE blog summary of legal proceedings and judgements is incomplete, which raises the possibility of the Form 10 being subject to Eric Parkinson Judgment Denial Syndrome. 5) MyFlix still not near being launched. If there are no current revenues,how are the costs of this being covered ? 6)
The HHSE August 4 blog posting does not address all of the legal liabilties that have been awarded against HHSE. All Court awarded Judgements are by definition are legitimate. To argue otherwise is foolishness.
My point exactly. The prospective future sale of HHSE shares to some unknown buyer doesn't provide any current liquidity. The reality is that on March 31, 2019 HHSE only had about $3,500 of cash not over $350,000 as alleged in a post.
When current liabilities are subtracted from current liabilities, the company is insolvent. This is made far worse when all of the Court Judgements ( over $10,000,000) are properly accounted for as current liabilities.
A massive issuance of stock would appear to be the only viable option to reduce the current liability burden,
Minor Correction - Fred Shefte first promised audits in 2008 in the midst of the Empire Films merger.
Huh ? A quick review of the SEC Edgar website shows NO HHSE 10-Q for 1Q2019. However, the OTCMarkets site shows a non audited quarterly filing report for Pink Sheet companies. This reflects $3,400 of cash.
BTW - how does an alleged future sale of shares ( at more than 2X the current market price) convert to current liquidity ?
Agree with Anvil on both counts. For the Form 10 to happen, HHSE needs an audit. For the audit to happen, the CEO needs to acknowledge the numerous court judgments as no legitimate auditor will buy into the the logic that they are to valid liabilities. Of course, this all implies that HHSE can pay a retainer to an auditor which appears to be a significant hurdle.
Good Post BeverlyH ! Looking forward to seeing these reflected in the forthcoming "audit" along with all the other foreign judgments as well.
I was wondering the same thing. Post people these days upload the records electronically via a secure internet portal making delivery instantaneous. However HHSE would actually need to have an auditor to do this.
Pesky things those "audit packages". Has HHSE sent out the Blood Hounds or maybe even some St Bernards to search for it at the Post Office ? Or perhaps this was another thing on Fred's desk that got overlooked.
BTW - has the shareholders meeting been rescheduled yet ? Just curious as I'm neither a long nor a shot, just a creditor.
Tsk, Tsk, Tsk ---then why didn't HHSE's appeal on the damages award prevail ? Why does the HHSE continue to cry over long ago spilt milk?
There are likely at least a half dozen companies where the facts fit. The on-going mythical audit might be deemed part of the shell game.
Interesting thought - but what good are treble damages from an insolvent company?
Ha Ha Ha -- and just where are the actual realized revenues from MyFlix and the "tent pole" films. If I recall, this was going to be the same strategy when the merger with Empire Films was announced.
That's a knee slapper. So a 20% distribution fee would be about $10 million, or maybe just enough to pay off the outstanding court judgments. To date myself, I remember Fred telling be to be patient and the revs from Hound Dog would make everyone happy.
Given the recurring pattern of activity, could HHSE be considered a "corrupt organization" ?
Yes - the same MO in multiple lawsuits - HHSE and production company enter into a distribution agreement which provides all revenues go to a lockbox account with a bank where they will be split. However, the money never gets to the bank but goes straight to HHSE with the small producers chasing EP and Fred for years. Fred keeps promising an audit. Meanwhile, HHSE plays litigation lottery figuring the odds of the production companies actually filing suit or settling on the basis of a lowball offer from HHSE.
Absolutely Agree and the matter between InterStar and HHSE is a settled legal matter as HHSE lost to InterStar in the California State Court and also on appeal. On this there is no grounds for dispute. HHSE has also acknowledged the liability in writing and in financial statements. The Court of Eric Parkinson's Opinion is totally irrelevant. This is a current liability and must be properly reported in any audit. No proper disclosure of all judgments and liabilities, then no audit, then no F-10 , then no S registration, then no imaginary new investors, then no desperately needed working capital, then no mythical MyFlix, then no flaccid tent poles, etc, etc, etc.
Love the reference to Mother Goose being ready for a "summer 2013" release. HHSE remains suck in a time warp again. It appears that EP's tent pole could use a little blue pill.
Agree - FTR - HHSE has not contacted InterStar about the $400,000 plus liability which it is currently still owed.
The link you posted only referenced 8 completed audits for which Terry Johnson, CPA performed the services. Since HHSE has never had a completed audit, they would not be included in this disciplinary action. However, the remaining question is whether Terry Johnson CPA was ever retained / engaged by HHSE to provide auditing services for HHSE regardless of whether an audit was actually completed.
BeverlyH - Can you refresh our memories on the connection between HHSE and Terry Johnson, CPA
Correct. However, it my understanding that it is not clear whether HHSE ever actually retained the attorney in question to represent them. Obviously, if this is the case, it explains why no options were ever pursued. But what about an D&O ommissions claim? It would seem there were omissions here by both Directors and Officers.