Forward Looking Statements

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes and other financial information appearing elsewhere in this Annual Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including without limitation the disclosures made in Item 1A of Part I of this Annual Report under the caption "Risk Factors."

Results of Operations for the three-month period ended June 30, 2020

The first six months of 2020 were utilized by management primarily to complete reporting requirements for the Company's forthcoming Form 10 Registration filing, as well as the Company's subsequent S1 Registration and raising. Additional activities included ongoing supervision of the editorial process of the feature film, "WILDFIRE" as well as on-boarding and mastering work related to the preparation and prelaunch of the consumer streaming site, MyFlix. Revenues for Q2 were a modest $75,319 of which $69,345 were non-cash journal entries for invoiced services rendered ($54,250), studio royalties ($8,945) and rental-space barter ($6,150).





Cost of Revenue

There were not cost-of-goods incurred during Q1 which impacted the G&A or Income Statement for this period.





Gross & Net Profits

For the applicable reporting period, Company posted a Gross Profit of $75,319 which after interest and operational expenses resulted in a net income of $57,870. Due to tax-loss carry forwards, no provision for income taxes has been included in this quarterly assessment of net income





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General and Administrative Expenses

General and administrative expenses for the current reporting period were $9,848. This G&A expense for the period ending 6-30-2020 is lower than in prior quarters due to the waiver of salary from officers and the cessation of travel, entertainment and releasing costs as a result of the COVID-19 impact to the motion picture and video distribution industries, including Hannover House, Inc.





Interest expense.

Interest expense was $7,601 for the three-month period ended June 20, compared to $7,502 for the three-month period ended March 31, 2019, which represents a modest and predicted rise in the interest expenses due to compounding balances.





Liquidity & Capital Resources

The company had limited and minimal liquidity during the three-month period ended June 30, 2020, which was not problematic due to a cessation of most costs due to the COVID-19 industry shut downs.

As of the June 30, 2020, Company had cash of $1,028, as compared to $4,849 as of March 30, 2020, representing a decrease of $3,821.

This filing includes a summary of Cash Flows for the Company during the applicable reporting period.





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Critical Accounting Policies and Estimates

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ("GAAP"). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use if estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note 1 of our financial statements. While all these significant accounting policies impact its financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as "special purpose entities".

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