How long is a "few weeks"
Jan 30 2016
3). 2014 / 2015 FULL YEAR AUDITS - The new auditors for HHSE are PCAOB Certified with a spotless record for accuracy and compliance. There are two major issues that impacted the completion of this task in January.
a). HHSE must complete the internal controls & compliance documentation on the accounting of activities for the Company in a format that will fully conform to the Sarbanes-Oxley Act 404. While this internal procedure standard does not require that HHSE do anything differently than the methodologies used at present, it does require a voluminous set of internal documents describing each procedure (from how a cost is applied to a specific title or expenditure account, to how the company recognizes contract-receivables from financing ventures such as the manner that Netflix pays out over 2-year terms). PLEASE NOTE THAT THE YELLOW-HIGHLIGHTED AREAS ABOVE ARE FOR CLARITY... TO HELP OUT THOSE SLOWER READERS WHO MIGHT HAVE WRONGLY SURMISED THAT THE "SOX 404" IS A S.E.C. REQUIREMENT FOR ALL FILERS (IT IS NOT). WE APOLOGIZE FOR WRITING IN SLIGHTLY COMPLEX SENTENCES THAT CAN BE CONFUSING TO THOSE NOT HAVING BASIC LEVELS OF INTEGRAL COMPREHENSION. SO TO BE ABUNDANTLY CLEAR, "SOX 404" CONFORMITY IS A REQUIREMENT OF THE NEW AUDITING FIRM (AND MOST MAJOR FIRMS), AND IS NOT A S.E.C. FILING REQUIREMENT FOR ALL LEVELS OF REPORTING ENTITIES. IF WE COULD "WRITE" IN EVEN SIMPLER SENTENCES, AND STILL COMMUNICATE COMPLEX ISSUES, WE WOULD.
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.
