Attached files
| file | filename |
|---|---|
| 8-K - HHSE8K11192013 - Hannover House, Inc. | hhse8k11192013.htm |
Exhibit 1
HANNOVER HOUSE, INC.
CONSOLIDATED STATEMENT OF INCOME & RETAINED EARNINGS
FOR THE THREE-MONTH PERIOD ENDING SEPT. 30, 2013 (UNAUDITED)
| REVENUES | ||||
| Product Sales (including International Licenses) * | $ | 1,203,886 | ||
| IRS Tax Refund (previously expensed) | $ | 1,506 | ||
| TOTAL REVENUES | $ | 1,205,392 | ||
| COST OF SALES | ||||
| Commissions | $ | 0 | ||
| Sales and Marketing | $ | 490 | ||
| Video Manufacturing | $ | 9,950 | ||
| Film and Book Royalties | $ | 26,723 | ||
| Freight | $ | 3,314 | ||
| Other Expense, Accrued third party participations * | $ | 750,000 | ||
| TOTAL COST OF SALES | $ | 790,477 | ||
| GROSS PROFIT | $ | 414,916 | ||
| GENERAL AND ADMINISTRATIVE EXPENSES ** | $ | 63,229 | ||
| INCOME (LOSS) FROM OPERATIONS | $ | 351,687 | ||
| OTHER INCOME (EXPENSE) | $ | 0 | ||
| INCOME (LOSS) BEFORE INCOME TAXES | $ | 351,687 | ||
| PROVISION FOR INCOME TAXES *** | $ | 0 | ||
| NET INCOME (LOSS) | $ | 351,687 | ||
| RETAINED EARNINGS, BEGINNING OF PERIOD | $ | 3,786,450 | ||
| RETAINED EARNING, END OF PERIOD | $ | 4,138,137 |
* International Sales Contracts have been allocated based on gross revenue amounts, less accrued third party participations or assignments.
** Current Q3 G&A Expenses were significantly lower than the prior, Q2 G&A Expenses, due primarily to one-time costs during Q2 for accrued taxes, and for legal fees.
*** Corporate tax returns are calculated on a cash basis, while period reports are calculated on an accrual basis.
Exhibit 1 - Page 1
HANNOVER HOUSE, INC.
CONSOLIDATED AND GENERAL & ADMINISTRATIVE EXPENSES
FOR THE THREE MONTH PERIOD ENDING SEPT. 30, 2013 (UNAUDITED)
| GENERAL AND ADMINISTRATIVE EXPENSES | ||||
| Auto | $ | 75 | ||
| Bank Charges | $ | 670 | ||
| Consulting | $ | 0 | ||
| Employees | $ | 33,701 | ||
| Entertainment | $ | 0 | ||
| Equipment | $ | 0 | ||
| Fees | $ | 0 | ||
| Insurance | $ | 388 | ||
| Labor | $ | 0 | ||
| Legal and Accounting | $ | 3,650 | ||
| Miscellaneous | $ | 2,262 | ||
| Office | $ | 7,804 | ||
| Rent | $ | 9,737 | ||
| Taxes | $ | 1,113 | ||
| Telephone | $ | 2,532 | ||
| Travel | $ | 888 | ||
| Utilities | $ | 409 | ||
| TOTAL GENERAL & ADMINISTRATIVE EXPENSES | $ | 63,229 |
Exhibit 1 - Page 2
HANNOVER HOUSE, INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2013 (UNAUDITED)
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash & Cash Equivalents | $ | 22,427 | ||
| Accounts Receivable, Net | $ | 2,309,833 | ||
| Prepaid Wages | $ | 0 | ||
| Merchandise Inventory | $ | 121,742 | ||
| Prepaid Advertising | $ | 0 | ||
| Prepaid Producer Royalties | $ | 1,876,191 | ||
| Producer Marketing Recoupment | $ | 2,190,878 | ||
| Film Distribution Rights | $ | 2,314,914 | ||
| Film Production Investments | $ | 1,247,166 | ||
| Notes Receivable and Net Recoupment | $ | 0 | ||
| TOTAL CURRENT ASSETS | $ | 10,083,151 | ||
| PROPERTY & EQUIPMENT | ||||
| Office Furnishings, Fixtures and Equipment | $ | 155,081 | ||
| Less Accumulated Depreciation | $ | (34,356) | ||
| Vehicles | $ | 22,500 | ||
| Less Accumulated Depreciation | $ | (5,000) | ||
| Real Property | $ | 0 | ||
| TOTAL PROPERTY & EQUIPMENT | $ | 138,225 | ||
| OTHER ASSETS | ||||
| FILM & TELEVISION LIBRARY | $ | 22,315,337 | ||
| TOTAL OTHER ASSETS | $ | 22,315,337 | ||
| $ | 32,536,713 |
Exhibit 1 - Page 3
HANNOVER HOUSE, INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2013 (UNAUDITED)
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts Payable | $ | 130,088 | ||
| Accrued Royalties | $ | 289,879 | ||
| Producer Acquisition Advances Due | $ | 497,264 | ||
| Accrued Wages | $ | 0 | ||
| Payroll Taxes Payable | $ | 0 | ||
| NB Cal AFIL P&A Loan | $ | 351,898 | ||
| Hounddog P&A Note (Weinreb) | $ | 814,408 | ||
| Other Bank Note | $ | 23,843 | ||
| TOTAL CURRENT LIABILITIES | $ | 1,977,292 | ||
| LONG-TERM LIABILILTIES | ||||
| Long-Term Payables (including Interstar & Bedrock) | $ | 2,490,881 | ||
| Assignment of Intl. Sales Net to Production | $ | 750,000 | ||
| Executive Salary Deferrals | $ | 1,018,996 | ||
| Officer Notes Payable | $ | 184,840 | ||
| TOTAL LONG-TERM LIABILITIES | $ | 4,218,802 | ||
| TOTAL OF ALL LIABILITIES | 6,326,182 | |||
| SHAREHOLDER'S EQUITY | ||||
| Common Stock (563,089,514 shares | ||||
| issued and outstanding) | $ | 22,072,394 | ||
| Retained Earnings | $ | 4,138,137 | ||
| TOTAL SHAREHOLDER'S EQUITY | $ | 26,210,531 | ||
| $ | 32,536,713 | |||
Exhibit 1 - Page 4
HANNOVER HOUSE, INC.
CHANGE IN SHARE STRUCTURE DURING REPORTING PERIOD
SEPTEMBER 30, 2013
| Change | ||||||||||||
| During | ||||||||||||
| Share Structure Description | 9/30/2013 | 6/30/2013 | Quarter | |||||||||
| Unrestricted Common Stock | 424,437,772 | 376,787,474 | 0 | |||||||||
| Restricted Common Stock | 138,651,743 | 138,651,743 | 0 | |||||||||
| COMMON STOCK ISSUED | 563,089,514 | 550,334,514 | 12,755,000 | |||||||||
| COMMON STOCK AUTHORIZED | 600,000,000 | 600,000,000 | 0 | |||||||||
| Preferred Shares Issued | 1,000,000 | 1,000,000 | 0 | |||||||||
| Preferred Shares Authorized | 10,000,000 | 10,000,000 | 0 | |||||||||
| Total Beneficial Owners | 343 | 344 | (1) | |||||||||
| (per Broadridge) | ||||||||||||
| Total Shareholders of Record | 181 | 185 | (4) | |||||||||
| (per Standard Registrar) | ||||||||||||
Exhibit 1 - Page 5