Hannover House Inc (HHSE)

[speckulater]

THREE SUBSIDIARIES INCORPORATED COMPANYS CONSOLIDATED FINANCIAL STATEMENTS

What are current HHSE investing in when they buy Hhse shares?

5) Issuer’s Business, Products and Services

Company is a media production and distribution enterprise, involved in book publishing, feature film and
video production, and distribution of feature films and videos through various media platforms and
territories worldwide.

Wholly-owned subsidiaries are Medallion Releasing, Inc. (for handling non-Hannover House producer
clients), Vodwiz, Inc. and Bookworks, Inc., a special purpose entity utilized for signatory purposes with
the Screen Actors Guild. Both Medallion Releasing, Inc., Vodwiz, Inc. and Bookworks, Inc. are Arkansas
domiciled corporations. Income, assets and costs (if any) from these three subsidiaries are incorporated
into the Company’s consolidated financial statements.

Company publishes fiction and non-fiction books; Company’s media distribution includes the release of
films to theatres, home video, digital streaming formats, television outlets and international licensors.
Company is working with MyFlix, LLC for the development and launch of a new digital streaming site to
be named “MyFlix.” The business model for MyFlix is to consolidate feature films and television series
programming owned by a wide range of studios and content owners, into a single destination digital
streaming site. The revenue model for MyFlix will be to pay third-party streaming and billing costs off the
top and divide remaining revenues on a fifty-fifty basis between the program suppliers and with MyFlix.
Consumers visiting the MyFlix website (or accessing the service through mobile APPS or over-the-top
devices such as Roku, AppleTV or hardware installed APPS) can purchase movies or TV episodes on a “per transaction basis” (ala Amazon) or alternatively, can open a monthly subscription with MyFlix for
unlimited access to approximately half of the programming otherwise available for per-transaction
access. A third revenue model, inspired by the billion-plus dollar success of TUBITV.com, is to offer
programs to be viewed by consumers “for free” but with advertising commercial breaks (AVOD). As of
the date of this filing, forty-three program suppliers, collectively representing over 12,000 titles, had
agreed to participate in the MyFlix service, which would position the site as number two only to Amazon
in terms of total programming. The growth of digital streaming services has created both a boom and
bust in the independent film sectors. Consumers are less likely now to purchase DVDs of unknown
movies knowing that the same ten-dollar cost could cover a month’s subscription to a service such as
Netflix with over 1,000 titles at any given time. As other studios scramble to open “studio specific”
streaming services, Hannover House believes that the MyFlix model is more like the successful Walmart
retail strategy of offering a wider selection of programming at everyday low prices. Hannover House has
an option to purchase MyFlix subject to the achievement of obtainable corporate benchmarks which
include the filing of the Form 10 Registration and the resolution or dismissal of four foreign judgments for
which the Company has meritorious defenses and legal strategies to oppose.

(Pages 7 & 8)
https://www.otcmarkets.com/otcapi/company/financial-report/333024/content