DVD and Blu-Ray orders worth more than $550,000 in wholesale revenues were canceled by Hannover House in early 2013 due to a payment dispute with Phase 4 Films, the Company's wholesale supplier at that time for the placement of video products into Walmart. The loss of those orders, and the release opportunities lost during the engagement of a replacement wholesaler, ultimately cost the Company an estimated $1-million in sales placements during 2013. Hannover House products are now being serviced to Walmart through Anderson Merchandisers and Allegro Media Group, and the Company expects to recapture the placement opportunities that were lost during 2013 with sales to be realized during 2014.
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