Hollywall Entertainment Inc (HWAL)

[Kool Aid Man]

HWAL's "VALUATION REPORT INTELLECTUAL PROPERTY" (music library)...

When reading the 68 pages closely it becomes clear HWAL's grandiose valuation is based entirely on their own projections of revenues >>IF<< they were ever to generate the sales of CD's, downloads, broadcasting, etc. they told the evaluator would be forthcoming. Page 37-38 -->

The management of Hollywall Entertainment, Inc prepared the forecasted activity and is solely responsible for the assumptions used to create the information used as a basis for the valuation analysis. We were unable to Secure sufficient third party documentation to enable us to determine whether the assumptions are reasonable....as of the date of this report, we have not been provided with documentation to show that distribution contracts have been signed to place product into traditional retail outlets or digital distributors. In addition, management’s assumptions (see Exhibit 13) reflect a significant reliance on direct to consumer sales via broadcast partners. As of the date of this report, we have not been provided with documentation to show that Agreements have been signed to sell product in this manner. In addition, we have not been provided with any documentation to show that Agreements have been signed for licensing of the existing recorded music masters... Accordingly, if management is unable to achieve the results as forecasted , then the value reflected in this report will be substantially less than stated. http://doczz.net/doc/12843/valuation-report-intellectual-property

There's much more but you get the drift. In short, the valuation of this "asset" is entirely based on what HWAL claimed they themselves would generate with it.

IMO HWAL continues to misrepresent this hypothetical "valuation of potential revenues" as an "asset" on their books.