Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020shares | |
Document And Entity Information | |
Entity Registrant Name | Hannover House, Inc. |
Entity Central Index Key | 0001069680 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | No |
Entity Interactive Data Current | No |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business Flag | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 715,942,844 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | |
CURRENT ASSETS | |||
Cash & Cash Equivalents | $ 1,028 | $ 4,849 | |
Accounts Receivable, Net | 336,903 | [1] | 324,652 |
Prepaid Wages | |||
Merchandise Inventory | 100,704 | 100,704 | |
Prepaid Advertising | 765,000 | 765,000 | |
Prepaid Producer Royalties | 2,454,674 | 2,454,674 | |
Producer Marketing Recoupment | 3,016,762 | 3,016,762 | |
Film Distribution Rights | 1,996,379 | 1,996,379 | |
Film Production Investments | 469,389 | 469,389 | |
Notes Receivable and Net Recoupment | 41,641 | [2] | 41,641 |
TOTAL CURRENT ASSETS | 9,182,480 | 9,174,050 | |
PROPERTY & EQUIPMENT | |||
Less Accumulated Depreciation | |||
TOTAL PROPERTY & EQUIPMENT | 117,561 | 117,561 | |
OTHER ASSETS | |||
TOTAL OTHER ASSETS | 27,413,517 | 27,413,517 | |
TOTAL ASSETS | 36,713,558 | 36,705,128 | |
CURRENT LIABILITIES | |||
Accounts payable | 19,365 | 9,115 | |
Accrued Royalties | 94,065 | 94,065 | |
Acquisition Advances Due | 285,399 | 285,399 | |
Accrued Wages | 122,182 | 122,182 | |
Payroll Taxes Payable | |||
Deferred Income Tax Payable | |||
NB Cal AFIL P&A Loan | |||
TOTAL CURRENT LIABILITIES | 1,264,773 | 1,254,523 | |
LONG-TERM LIABILITIES | |||
Long-Term Payables | 1,033,382 | 1,033,382 | |
Executive Salary Deferrals | 766,415 | 766,415 | |
Lewin Foreign Judgment | 1,629,442 | [3] | 1,629,442 |
Contingent Legal Liabilities | 727,022 | [4] | 727,022 |
Officer Notes Payable | 115,670 | 115,670 | |
TOTAL LONG-TERM LIABILITIES | 4,271,931 | 4,271,931 | |
TOTAL OF ALL LIABILITIES | 5,536,704 | 5,526,454 | |
SHAREHOLDER'S EQUITY | |||
Common Stock | 27,212,387 | 27,272,077 | |
Retained Earnings | 3,964,467 | 3,906,597 | |
TOTAL SHAREHOLDER'S EQUITY | 31,176,854 | 31,178,674 | |
LIABILITIES & SHAREHOLDER'S EQUITY | 36,713,558 | 36,705,128 | |
Hounddog P&A Note (EFG) [Member] | |||
CURRENT LIABILITIES | |||
Notes payable | |||
Interest | |||
Shuttlewood Investments Note [Member] | |||
CURRENT LIABILITIES | |||
Notes payable | [5] | ||
Interest | |||
Graham Financial Services Note [Member] | |||
CURRENT LIABILITIES | |||
Notes payable | 98,825 | 98,825 | |
Interest | 2,051 | 2,051 | |
Short Term Notes (Various) [Member] | |||
CURRENT LIABILITIES | |||
Notes payable | 576,685 | 576,685 | |
Interest | 51,201 | 51,201 | |
Bank of Fayetteville Note [Member] | |||
CURRENT LIABILITIES | |||
Notes payable | 15,000 | 15,000 | |
Interest | |||
FILM & TV LIBRARY (incl. VODWIZ) [Member] | |||
OTHER ASSETS | |||
TOTAL OTHER ASSETS | 27,413,517 | 27,413,517 | |
Office Furnishings, Equip. & Film Gear [Member] | |||
PROPERTY & EQUIPMENT | |||
Less Accumulated Depreciation | (37,164) | (37,164) | |
TOTAL PROPERTY & EQUIPMENT | 154,725 | 154,725 | |
Vehicles [Member] | |||
PROPERTY & EQUIPMENT | |||
Less Accumulated Depreciation | |||
TOTAL PROPERTY & EQUIPMENT | |||
Real Property [Member] | |||
PROPERTY & EQUIPMENT | |||
TOTAL PROPERTY & EQUIPMENT | |||
[1] | Accounts Receivable has been adjusted to include mark-downs for DVD price reductions, as well as other reconciliation activities relating to the application of credits for returns and other payment credits. | ||
[2] | Notes Receivable includes a loan made by the company to Snowy Morning, Inc. in the amount of $41,641 to assist with production costs for the film "WILDFIRE," which loan is to be considered as a fully-recoupable advance against Snowy Morning's share of theatrical revenues in the film. Company holds a lien against other revenue sources, in the event that the producer's share of net theatrical revenues from "WILDFIRE" is not sufficient to fully repay the loan. | ||
[3] | Company has engaged counsel to move to set-aside this foreign judgment and locally filed writ, on the basis of fraud, personal jurisdiction and subject matter jurisdiction. The absence of an agreement between Company and Lewin, as well as the additional prohibition on HHSE officers from issuing "personal guarantees" as represented by Plaintiff Lewin, will support the motion for dismissal. These legal responses from Hannover House are temporarily on hold until the local courthouse reopens from COVID-19 closures. | ||
[4] | Upon advice of counsel, Company is also reserving an additional amount of $$727,722 regarding three foreign cases, as the potential liability that could occur should the Company not prevail in actions for dismissal or adjudication in Arkansas. | ||
[5] | Company is line-item listing the $0 balance due under the Mutual dissolution agreement (to discontinue distribution of the film "Daisy Winters"); however, Company has added in a line-item for "Contingent Legal Liabilities" (see footnote 9), in the event that Company's upcoming court proceedings in Arkansas in this dispute do not result in a favorable outcome consistent with the Mutual dissolution agreement. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | |
Balance due under the agreement amount | $ 0 | $ 0 |
Reserving additional amount | 727,722 | 727,722 |
Snowy Morning, Inc [Member] | ||
Notes Receivable | $ 41,641 | $ 41,641 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUES (all media, fees & licenses) | $ 75,319 | $ 90,541 |
Net, Collected Revenues | 14,919 | 3,769 |
Additional Invoiced Sales | 86,772 | |
Reserve for Potential Returns | ||
ADJUSTED REVENUES FOR PERIOD | 90,541 | |
REVENUES | 75,319 | |
COST OF SALES | ||
Commissions | ||
Sales and Marketing | ||
Video Mfg & Releasing Costs | ||
Film & Book Royalties | ||
Freight | ||
Other Expenses (Ads, PR, Publicity) | ||
TOTAL COST OF SALES | ||
GROSS PROFIT | 75,319 | 90,541 |
GENERAL AND ADMINISTRATIVE EXP. | 9,848 | 40,642 |
INCOME FROM OPERATIONS | 65,471 | 49,899 |
INTEREST EXPENSES | 7,601 | 7,502 |
OTHER EXPENSES (SALARY DEFERRALS) | ||
INCOME BEFORE TAXES | 57,870 | 42,397 |
PROVISION FOR INCOME TAXES | ||
NET INCOME | 57,870 | 42,397 |
RETAINED EARNINGS (Beginning of Period) | 3,906,597 | 3,864,200 |
RETAINED EARNINGS (End of Period) | $ 3,964,467 | $ 3,906,597 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net Income | $ 57,870 | $ 42,397 |
Increase in Accounts Receivable | 12,251 | |
Decrease in Prepaid Expenses | ||
Decrease in Other Current Assets | ||
Increase in Notes Payable | ||
Increase in Accounts Payable | 10,250 | |
Cash Provided By / Used in Operating Activites | 80,371 | |
Cash Flow from Investing Activities | ||
Cash Provided By / Used in Investing Activities | (84,192) | |
Cash Flow from Financing Activities | ||
Cash Provided by Financing Activities | ||
NET INCREASE IN CASH | (3,821) | |
BEGINNING CASH BALANCE | 4,849 | |
ENDING CASH BALANCE (12-31-2019) | $ 1,028 | $ 4,849 |
Statement of Shareholders Equit
Statement of Shareholders Equity - 3 months ended Jun. 30, 2020 - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Mar. 31, 2020 | $ 27,272,077 | $ 3,906,597 | $ 31,178,674 |
Balance, Shares at Mar. 31, 2020 | 811,029,996 | ||
Net Adjustments to Equity | |||
Net Adjustments to Retained Earnings | |||
Net Income | 57,870 | 57,870 | |
Balance at Jun. 30, 2020 | $ 26,518,209 | $ 3,964,467 | $ 31,176,854 |
Balance, Shares at Jun. 30, 2020 | 811,029,996 |
General and Aministrative Expen
General and Aministrative Expenses | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Income Statement [Abstract] | |
Auto | |
Bank Charges | 105 |
Consulting | |
Employees and Officers | |
Entertainment | |
Equipment | |
Fees | |
Insurance | |
Labor | |
Legal and Accounting | 2,500 |
Misc / Marketing & Promotions | |
Office | 435 |
Rent | 6,150 |
Payroll Taxes | |
Telephone | 658 |
Travel | |
Utilities | |
TOTAL OF GENERAL AND ADMINISTRATIVE EXPENSES | $ 9,848 |