Hannover House (HHSE) 10-K 8 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020USD ($)shares
Cover [Abstract]
Entity Registrant Name	Hannover House, Inc.
Entity Central Index Key	0001069680
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Season Issuer	No
Entity Voluntary Filer	No
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 Public Float | $	$ 13,302,878
Entity Common Stock, Shares Outstanding | shares	733,642,844
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)		Dec. 31, 2020	Sep. 30, 2020
CURRENT ASSETS
Cash & Cash Equivalents		$ 9,067	$ 403
Accounts Receivable, Net	[1]	499,903	397,403
Prepaid Wages
Merchandise Inventory		100,704	100,704
Prepaid Advertising		765,000	765,000
Prepaid Producer Royalties	[2]	2,406,065	2,454,674
Producer Marketing Recoupment		2,944,307	3,016,762
Film Distribution Rights		1,996,379	1,996,379
Film Production Investments		469,389	469,389
Notes Receivable and Net Recoupment	[3]	53,742	41,641
TOTAL CURRENT ASSETS		9,244,556	9,242,355
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		36,775,634	36,773,433
CURRENT LIABILITIES
Accounts payable		45,501	19,365
Accrued Royalties	[4]	143,933	94,065
Acquisition Advances Due		13,000	285,399
Accrued Wages	[5]	122,182	122,182
Payroll Taxes Payable
Deferred Income Tax Payable
NB Cal AFIL P&A Loan
TOTAL CURRENT LIABILITIES		1,407,355	1,294,039
LONG-TERM LIABILITIES
Long-Term Payables	[6]	1,343,221	1,024,382
Executive Salary Deferrals		766,415	766,415
Lewin Foreign Judgment	[7]	1,629,442	1,629,442
Contingent Legal Liabilities	[8]	1,124,000	727,022
Officer Notes Payable	[9]	109,040	115,670
TOTAL LONG-TERM LIABILITIES		4,972,118	4,262,931
TOTAL OF ALL LIABILITIES	[10]	6,379,473	5,556,970
SHAREHOLDER'S EQUITY
Common Stock		27,115,128	27,115,128
Retained Earnings		3,281,033	4,101,335
TOTAL SHAREHOLDER'S EQUITY		30,396,161	31,216,463
LIABILITIES & SHAREHOLDER'S EQUITY		36,775,634	36,773,433
Hounddog P&A Note (EFG) [Member]
CURRENT LIABILITIES
Notes payable
Interest
Shuttlewood Investments Note [Member]
CURRENT LIABILITIES
Notes payable	[11]	320,000
Interest
Graham Financial Services Note [Member]
CURRENT LIABILITIES
Notes payable		98,422	98,825
Interest		540	6,603
All Other Notes Payable [Member]
CURRENT LIABILITIES
Notes payable	[12]	557,527	590,684
Interest		106,251	61,916
Bank of Fayetteville Note [Member]
CURRENT LIABILITIES
Notes payable			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 newly invoiced on-boarding & metadata services performed for MyFlix program suppliers.
[2]	Prepaid Producer Royalties include adjustments previously not applied against advances paid (e.g "American Justice" net producer revenues are to be applied against the large royalty advance paid).
[3]	Notes Receivable includes additional loans of $12,101 made by the company to Snowy Morning, Inc. 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
[4]	Accrued Royalties increased by $49,608 after reconciling video-on-demand and physical home video receivables that were otherwise consolidated payments;
[5]	Accrued Wages are unchanged on the 12-31-2020 report as compared to 9-30-2020; however, subsequent to the end of this reporting period, Company was made aware that former VP of Sales, Tom Sims, believes that the accrued / deferred wages for him have been understated. Upon receipt and review of his notes in this matter, this line-item may be updated;
[6]	Long Term Payables increased by $318,839, primarily due to the company's prior oversight in not accruing the proper rate of interest awarded to the Anderson's in their P&A loan judgment (the total accrued interest to Andersons is $252,858).
[7]	Lewin Foreign Judgment - 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.
[8]	Company is also reserving a total of $1,124,000 with respect to three foreign cases, as the potential liability that could occur should the Company not prevail in actions for dismissal or adjudication in Arkansas
[9]	Officer Notes Payable include adjustments in which the prior amount registered for Don Frederick Shefte as of 9-30-2020 ($32,358) has been applied against funds received by Shefte over the prior year to eliminate any current balance to him. Additional changes include the receipt of new loans from Eric Parkinson totaling $25,728.76 for the year.
[10]	The increase in total liabilities is due almost entirely to large reserves for "potential" items.
[11]	A prior agreement to forgive the Shuttlewoods Investments P&A loan for "Daisy Winters" (upon HHSE's performance of certain items), may be in doubt as the counsel for Shuttlewoods has since reinstated actions to file a judgment. While HHSE has the opportunity to move to set-aside such judgment (or to appeal to the principals of Shuttlewoods to honor the prior agreement), upon advice of counsel, until such actions occur, the Company is reinstating this dispute as a potential liability.
[12]	Adjustments were made to "Other Notes Payable" to reflect the corrected loan amounts received over the past seven years from Genautica LLC and DSM LLC as well as a recalculation of the accrued interest on these loans.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Notes Receivable	$ 53,743
Accrued royalties increased	49,608
Long term payable increased	318,839
Reserves for company potential libility	1,124,000
Don Frederick Shefte [Member]
Notes payables		$ 32,358
Eric Parkinson [Member]
New loan include additional changes	25,729
Snowy Morning, Inc [Member]
Notes Receivable	12,101		$ 41,641
Andersons [Member]
Accrued interest	$ 252,858

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2020		Sep. 30, 2020		Jun. 30, 2020		Mar. 31, 2020	Dec. 31, 2020
Income Statement [Abstract]
REVENUES (all media, fees & licenses)	$ 114,109		$ 209,132		$ 75,319		$ 90,541	$ 489,101
Net, Collected Revenues	11,609		148,632		14,919		3,769	178,929
Additional Invoiced Sales	102,500		60,500				86,772	249,772
Reserve for Potential Returns
ADJUSTED REVENUES FOR PERIOD	114,109		209,132		75,319		90,541	489,101
COST OF SALES
Commissions
Sales and Marketing
Video Mfg & Releasing Costs
Film & Book Royalties	1,236							1,236
Freight
Other Expenses (Ads, PR, Publicity)
TOTAL COST OF SALES	1,236							1,236
GROSS PROFIT	112,873		209,132		75,319		90,541	487,865
GENERAL AND ADMINISTRATIVE EXP.	36,131		8,922		9,848		40,642	95,543
INCOME FROM OPERATIONS	77,978		200,210		65,471		49,899	393,558
INTEREST EXPENSES	297,733	[1]	7,601		7,601		7,502	320,437
OTHER EXPENSES (SALARY DEFERRALS)
INCOME BEFORE TAXES	(219,755)		192,609		57,870		42,397	73,121
PROVISION FOR INCOME TAXES
NET INCOME	(219,755)		192,609		57,870		42,397	73,121
RETAINED EARNINGS (Beginning of Period)	4,101,335		3,908,726	[2]	3,906,597		3,864,200	3,864,200
RETAINED EARNINGS (End of Period)	$ 3,281,033		$ 4,101,335		$ 3,908,726	[2]	$ 3,906,597	$ 3,281,033
[1]	Interest charged to Q4 includes ledger entry for $252,858 in interest previously not recognized with the Andersons P&A Notes, as well as an increase (correction) in the accrued interest due on DSM notes of $41,022. Both corrections in the recognition of interest are the result of charges incurred over seven or more years, and are not Q4 specific.
[2]	Q2 Retained Earnings reduced Sept. 2020, due to payables corrections.

Consolidated Statement of Inc_2

Consolidated Statement of Income (Parenthetical)	3 Months Ended
	Dec. 31, 2020USD ($)
Interest expenses	$ 297,733	[1]
Andersons P and A Note [Member]
Interest expenses	252,858
DSM Note [Member]
Increase (correction) of accrued interest	$ 41,022
[1]	Interest charged to Q4 includes ledger entry for $252,858 in interest previously not recognized with the Andersons P&A Notes, as well as an increase (correction) in the accrued interest due on DSM notes of $41,022. Both corrections in the recognition of interest are the result of charges incurred over seven or more years, and are not Q4 specific.

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2020
Cash flows from operating activities
Net Income	$ (219,755)	$ 192,609	$ 73,121
Increase in Accounts Receivable	102,500
Decrease in Prepaid Expenses	48,609
Decrease in Other Current Assets	72,455
Increase in Notes Payable	38,059
Increase in Accounts Payable	26,136
Cash Provided By / Used in Operating Activites	68,004
Cash Flow from Investing Activities
Cash Provided By / Used in Investing Activities	(59,340)
Cash Flow from Financing Activities
Cash Provided by Financing Activities
NET INCREASE IN CASH	8,664
BEGINNING CASH BALANCE	403
ENDING CASH BALANCE (12-31-2020)	$ 9,067	$ 403	$ 9,067

Statement of Shareholders Equit

Statement of Shareholders Equity - 3 months ended Dec. 31, 2020 - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Balance at Sep. 30, 2020	$ 27,115,128	$ 4,101,335	$ 31,216,463
Balance, Shares at Sep. 30, 2020	831,429,996
Net Adjustments to Equity
Net Adjustments to Retained Earnings
Net Income		(219,755)	(219,755)
Balance at Dec. 31, 2020	$ 27,115,128	$ 3,881,580	$ 30,396,161
Balance, Shares at Dec. 31, 2020	831,429,996

General and Aministrative Expen

General and Aministrative Expenses	3 Months Ended
	Dec. 31, 2020USD ($)
Income Statement [Abstract]
Auto
Bank Charges	99
Consulting
Employees and Officers
Entertainment
Equipment
Fees
Insurance
Labor
Legal and Accounting	28,849
Misc / Marketing & Promotions
Office
Rent	6,150
Payroll Taxes
Telephone	1,033
Travel
Utilities
TOTAL OF GENERAL AND ADMINISTRATIVE EXPENSES	$ 36,131