UNITED
STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

_________________

FORM
10-Q

_________________

QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For
the quarterly period ended: March 31, 2014



Hannover
House, Inc.

(Exact
name of registrant as specified in its charter)

_________________

|Wyoming                               | 000-28723    | 91-1906973             
|------------------------------------- | ------------ | -----------------------
|(State or Other
    Jurisdiction      | (Commission  | (I.R.S. Employer       
|of Incorporation
    or Organization) | File Number) | Identification
    No.)

1428
Chester Street, Springdale, AR 72764
(Address of Principal Executive Offices) (Zip Code)

479-751-4500
(Registrant’s telephone number, including area code)

f/k/a
"Target Development Group, Inc."



_________________

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.     YesoNoþ

Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     YesoNoþ

Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company.

|Large
    accelerated filero | Accelerated
    filero | Non-accelerated
    filero | Smaller
    reporting companyþ
|---------------------------- | ---------------------- | -------------------------- | ------------------------------

Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     YesoNoþ



APPLICABLE
ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCYPROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by SectionS 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     YesoNoþ

APPLICABLE
ONLY TO CORPORATE ISSUERS

Indicate the number
of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.







The
Company’s stock is traded on the OTC “Pinksheets” Markets under the trading symbol: HHSE. The Cusip number for
the Company is: 410686 101. The following is true and correct, per our transfer agent, as of and at the period ending on March
31, 2014:



|a. |  | Total
    Common Stock Shares in issue as of Dec. 31, 2013:	580,232,365
|-- |  | -----------------------------------------------------------------------



|b. |  | Above
    Shares Restricted From Sale: 	130,651,743
|-- |  | ---------------------------------------------------



|TOTAL |  | COMMON
    STOCK SHARES IN MARKET:	449,580,622
|----- |  | ----------------------------------------------



|c. |  | Series
    “A” Preferred Shares:	 1,000,000
|-- |  | -------------------------------------------



Shareholders
of Record: 183 (Standard Registrar count)

Total
Beneficial Shareholders: 342 (Broadridge, ICS count)

Total
Authorized Common Stock Shares:700,000,000

Total
Authorized Series "A" Preferred Shares: 10,000,000

(Note:
Total Authorized Common Stock Shares was decreased to 600,000,000 by action of the Board of Directors, which reduction took effect
as of January 1, 2013. Notification of this reduction in Total Authorized Shares was filed with the Wyoming Secretary of State.
The decrease expired as of 12-31-2013, and the original level of 700-million “authorized” shares was restored).



The
Transfer Agent for the Company’s stock is:

Standard
Registrar & Transfer Company, Inc.

12528
South 1840 East

Draper,
UT 84020

Tel.
801-571-8844 / Fax 801-571-2551



























Page2







Hannover
House, Inc.

Table
of Contents

|                                   |         
|---------------------------------- | --------
|                                   |         
|                                   |         
|PART
    I.  FINANCIAL INFORMATION |         
|                                   |         
|                                   | ITEM 1. 
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   |         
|                                   | ITEM 2. 
|                                   |         
|                                   | ITEM 3. 
|                                   |         
|                                   | ITEM 4. 
|                                   |         
|PART
    II.  OTHER INFORMATION    |         
|                                   |         
|                                   | ITEM 1. 
|                                   |         
|                                   | ITEM 1A.
|                                   |         
|                                   | ITEM 2. 
|                                   |         
|                                   | ITEM 3. 
|                                   |         
|                                   | ITEM 4. 
|                                   |         
|                                   | ITEM 5. 
|                                   |         
|                                   | ITEM 6. 
|                                   |         
|SIGNATURES                         |         
|                                   |         













Page3







FORWARD-LOOKING STATEMENTS



This
disclosure statement contains “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. In some cases you can identify forward-looking statements by terms such as “may”, “intend”,
“will”, “could”, “would”, “expects”, “believe”, “estimate”,
or the negative of these terms, and similar expressions intended to identify forward-looking statements. 	These forward-looking
statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties.
Also, these forward-looking statements present our estimates and assumptions only as of the date of this disclosure statement.
Except for our ongoing obligation to disclose material information as required by federal securities laws, we do not intend to
update you concerning any future revisions to any forward-looking statements to reflect events or circumstances occurring after
the date of this disclosure statement.



Actual
results in the future could differ materially and adversely from those described in the forward-looking statements as a result
of various important factors, including the substantial investment of capital required to produce and market films and television
series, increased costs for producing and marketing feature films, budget overruns, limitations imposed by our credit facilities,
unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual
property, difficulties in integrating acquired businesses, and technological changes and other trends affecting the entertainment
industry.



PART
I — FINANCIAL INFORMATION

The Company's Financial Statements
for the three-month period ending March 31, 2014 are contained within the following pages. In compliance with regulations governing
FORM 10-Q reports, the information contained within these financial statements is unaudited.

































Page4







HANNOVER HOUSE, INC.

CONSOLIDATED
STATEMENT OF INCOME & RETAINED EARNINGS

FOR THE
THREE-MONTH PERIOD ENDING MAR. 31, 2014 (UNAUDITED)



|                                                    |  |   |           | 
|--------------------------------------------------- |  | - | --------- | 
|REVENUES                                            |  |   |           | 
|Product Sales (consumer packaged goods and V.O.D.)  |  | $ | 246,639   | 
|International Licenses*                             |  | $ | 500,000   | 
|TOTAL REVENUES                                      |  | $ | 746,639   | 
|                                                    |  |   |           | 
|COST OF SALES                                       |  |   |           | 
|Commissions                                         |  | $ | 0         | 
|Sales and Marketing                                 |  | $ | 4,409     | 
|Video Manufacturing                                 |  | $ | 5,101     | 
|Film and Book Royalties                             |  | $ | 1,525     | 
|Freight                                             |  | $ | 908       | 
|Other Expense, Accrued third party participations * |  | $ | 400,000   | 
|                                                    |  |   |           | 
|TOTAL COST OF SALES                                 |  | $ | 411,943   | 
|GROSS PROFIT                                        |  | $ | 334,696   | 
|                                                    |  |   |           | 
|GENERAL AND ADMINISTRATIVE EXPENSES                 |  | $ | 49,522    | 
|                                                    |  |   |           | 
|INCOME (LOSS) FROM OPERATIONS                       |  | $ | 285,174   | 
|                                                    |  |   |           | 
|OTHER INCOME (EXPENSE)                              |  | $ | 0         | 
|                                                    |  |   |           | 
|INCOME (LOSS) BEFORE INCOME TAXES                   |  | $ | 285,174   | 
|                                                    |  |   |           | 
|PROVISION FOR INCOME TAXES **                       |  | $ | 0         | 
|                                                    |  |   |           | 
|NET INCOME (LOSS)                                   |  | $ | 285,174   | 
|                                                    |  |   |           | 
|                                                    |  |   |           | 
|RETAINED EARNINGS, BEGINNING OF PERIOD              |  | $ | 4,469,539 | 
|                                                    |  |   |           | 
|                                                    |  |   |           | 
|RETAINED EARNING, END OF PERIOD                     |  | $ | 4,754,713 | 









*
International Sales Contracts have been allocated based on gross revenue amounts, less accrued third party participations or assignments.



**
Corporate tax returns are calculated on a cash basis, while period reports are calculated on an accrual basis.











Page5







HANNOVER
HOUSE, INC.

CONSOLIDATED
AND GENERAL & ADMINISTRATIVE EXPENSES

FOR THE
THREE MONTH PERIOD ENDING MAR. 31, 2014 (UNAUDITED)





|GENERAL AND ADMINISTRATIVE EXPENSES     |  |   |        | 
|--------------------------------------- |  | - | ------ | 
|Auto                                    |  | $ | 0      | 
|Bank Charges                            |  | $ | 235    | 
|Consulting                              |  | $ | 0      | 
|Employees                               |  | $ | 20,771 | 
|Entertainment                           |  | $ | 0      | 
|Equipment                               |  | $ | 0      | 
|Fees                                    |  | $ | 0      | 
|Insurance                               |  | $ | 0      | 
|Labor                                   |  | $ | 0      | 
|Legal and Accounting                    |  | $ | 4,000  | 
|Miscellaneous                           |  | $ | 8,654  | 
|Office                                  |  | $ | 3,335  | 
|Rent                                    |  | $ | 9,600  | 
|Taxes (including Payroll Taxes)         |  | $ | 228    | 
|Telephone                               |  | $ | 1447   | 
|Travel                                  |  | $ | 0      | 
|Utilities                               |  | $ | 797    | 
|TOTAL GENERAL & ADMINISTRATIVE EXPENSES |  | $ | 49,522 | 

































Page6







HANNOVER
HOUSE, INC.



CONSOLIDATED
BALANCE SHEET

MARCH
31, 2014 (UNAUDITED)





|ASSETS                                     |  |   |            |  
|------------------------------------------ |  | - | ---------- | -
|CURRENT ASSETS                             |  |   |            |  
|Cash & Cash Equivalents *                  |  | $ | 43,220     |  
|Accounts Receivable**                      |  | $ | 3,481,211  |  
|Prepaid Wages                              |  | $ | 0          |  
|Merchandise Inventory                      |  | $ | 146,808    |  
|Prepaid Advertising                        |  | $ | 0          |  
|Prepaid Producer Royalties                 |  | $ | 1,876,191  |  
|Producer Marketing Recoupment              |  | $ | 2,204,544  |  
|Film Distribution Rights                   |  | $ | 2,314,914  |  
|Film Production Investments                |  | $ | 497,166    |  
|Notes Receivable and Net Recoupment        |  | $ | 0          |  
|                                           |  |   |            |  
|TOTAL CURRENT ASSETS                       |  | $ | 10,564,054 |  
|                                           |  |   |            |  
|PROPERTY & EQUIPMENT                       |  |   |            |  
|Office Furnishings, Fixtures and Equipment |  | $ | 155,081    |  
|Less Accumulated Depreciation              |  | $ | (39,356    | )
|Vehicles***                                |  | $ | 15,000     |  
|Less Accumulated Depreciation              |  | $ | (5,000     | )
|Real Property                              |  | $ | 0          |  
|TOTAL PROPERTY & EQUIPMENT                 |  | $ | 125,725    |  
|                                           |  |   |            |  
|OTHER ASSETS                               |  |   |            |  
|FILM & TELEVISION LIBRARY                  |  | $ | 22,315,337 |  
|                                           |  |   |            |  
|TOTAL OTHER ASSETS                         |  | $ | 22,315,337 |  
|                                           |  |   |            |  
|                                           |  |   |            |  
|                                           |  | $ | 33,005,116 |  





* Includes third-party financing
proceeds designated specifically for use in new marketing ventures, and not for general purposes or payables.



** Accounts Receivable includes
the gross contract values for international presale agreements, for which the net amount payable to producers / licensors is expensed
on the liability detail.













Page7







HANNOVER HOUSE, INC.



CONSOLIDATED
BALANCE SHEET

MARCH
31, 2014 (UNAUDITED)



|LIABILITIES AND STOCKHOLDER'S EQUITY               |  |  
|-------------------------------------------------- |  | -
|                                                   |  |  
|CURRENT LIABILITIES                                |  |  
|Accounts Payable                                   |  | $
|Accrued Royalties                                  |  | $
|Producer Acquisition Advances Due                  |  | $
|Accrued Wages                                      |  | $
|Payroll Taxes Payable                              |  | $
|NB Cal AFIL P&A Loan                               |  | $
|Hounddog P&A Note (Weinreb)                        |  | $
|Other Bank Note (BOF and TCA)                      |  | $
|                                                   |  |  
|TOTAL CURRENT LIABILITIES                          |  | $
|                                                   |  |  
|LONG-TERM LIABILILTIES                             |  |  
|Long-Term Payables (including Interstar & Bedrock) |  | $
|Assignment of Intl. Sales Net to Production        |  | $
|Executive Salary Deferrals                         |  | $
|Officer Notes Payable                              |  | $
|                                                   |  |  
|TOTAL LONG-TERM LIABILITIES                        |  | $
|                                                   |  |  
|TOTAL OF ALL LIABILITIES                           |  |  
|                                                   |  |  
|                                                   |  |  
|SHAREHOLDER'S EQUITY                               |  |  
|Common Stock (580,232,365 shares                   |  |  
|issued and outstanding) *                          |  | $
|Retained Earnings                                  |  | $
|                                                   |  |  
|TOTAL SHAREHOLDER'S EQUITY                         |  | $
|                                                   |  |  
|                                                   |  |  
|                                                   |  | $













Page8







HANNOVER
HOUSE, INC.



CHANGE
IN SHARE STRUCTURE DURING REPORTING PERIOD

MARCH
31, 2014





|                                 |  |           |             |            |  |        
|-------------------------------- |  | --------- | ----------- | ---------- |  | -------
|                                 |  |           |             |            |  | Change 
|                                 |  |           |             |            |  | During 
|Share
    Structure Description  |  | 3/31/2014 |             | 12/31/2013 |  | Quarter
|Unrestricted
    Common Stock*   |  |           | 449,580,622 |            |  |        
|Restricted
    Common Stock      |  |           | 130,651,743 |            |  |        
|COMMON
    STOCK ISSUED*         |  |           | 580,232,365 |            |  |        
|COMMON
    STOCK AUTHORIZED      |  |           | 700,000,000 |            |  |        
|                                 |  |           |             |            |  |        
|Preferred
    Shares Issued      |  |           | 1,000,000   |            |  |        
|Preferred
    Shares Authorized  |  |           | 10,000,000  |            |  |        
|                                 |  |           |             |            |  |        
|Total
    Beneficial Owners      |  |           | 345         |            |  |        
|(per
    Broadridge)             |  |           |             |            |  |        
|                                 |  |           |             |            |  |        
|Total
    Shareholders of Record |  |           | 183         |            |  |        
|(per
    Standard Registrar)     |  |           |             |            |  |        





* Common Stock share
count as of March 31, 2014 includes a reduction in shares issued, which had been inadvertently overstated on the prior quarterly
filing.



























Page9







Item
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following
discussion should be read in conjunction with the unaudited interim consolidated financial statements and related notes to the
unaudited interim consolidated financial statements included elsewhere in this report. This discussion contains forward-looking
statements that relate to future events or our future financial performance. These statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking
statements. These forward-looking statements are based largely on our current expectations and are subject to a number of uncertainties
and risks including the Risk Factors identified in our Quarterly Form 10-Q for the three-month period ending December 31, 2013.
Actual results could differ materially from these forward-looking statements. Hannover House, Inc. is sometimes referred to herein
as "we," "us," "our" and the "Company."



The
nature of the issuer’s business is driven by the operating entity, Hannover House, which is a full-service producer
and distributor of entertainment products (i.e., feature films for theatrical, video, television and international distribution,
and a publisher of books).



Hannover
House, Inc., is a Wyoming Corporation. Truman Press, Inc., d/b/a “Hannover House” is an Arkansas Corporation.



Hannover
House, Inc., f/k/a Target Development Group, Inc. (which was also formerly known as "Mindset Interactive Corp.") was
registered as a corporation in Wyoming on January 29, 2009. Truman Press, Inc., d/b/a “Hannover House” was registered
as a corporation in California on September 15, 1993, and re-registered in Arkansas effective June 2008. The Ecklan Corporation,
registered on March 25, 1998, in the State of Texas, was the predecessor entity to Target Development Group, Inc.



The Company,
Hannover House, Inc., as well as Truman Press, Inc., d/b/a “Hannover House” each have an effective fiscal year-end
date of December 31.



Neither
the Company, Hannover House, Inc., nor the operating entity, Truman Press, Inc., d/b/a “Hannover House” have ever
been in bankruptcy. To the best of management’s knowledge, no predecessor entity has ever been in bankruptcy.



Effective
January 1, 2010, Target Development Group, Inc., acquired all of the shares of Truman Press, Inc., d/b/a “Hannover House”
in a stock-swap agreement. The details of this acquisition venture are described in detail within the information statement posted
on the OTC Markets Disclosure Statement of December 14, 2009.



Over the
past four years, the Company has defaulted on several loan or credit obligations, but none representing a material event to the
Company or falling outside of the ordinary course of business. As previously disclosed through the Company's filings with the
OTC Markets, the Company had incurred debt relating to the theatrical releasing costs of the film "Twelve" (debt obligations
were accrued with Andersons, AOL, Bedrock Ventures, 42 West, Technicolor, Tribune Ent. and others). As of December 31, 2013 the
Company had reduced the cumulative total of the outstanding debt balances for this film from an original gross of $4.2-million
(inclusive of obligations to the production company / licensor), down to less than $850,000 as of this reporting period. Other
significant obligations of the Company include "P&A" for the release of the film, "Hounddog" (Weinreb
loan), "P&A" for the release of "All's Faire In Love" (NBCal Loan), producer / licensor obligations to
Interstar Releasing, Fantastic Films and E.E. Smith, all of which are itemized or otherwise included within the Company's financials.





Page10





As
of 3-31-2014, there were no further changes of “control”.



As of 3-31-2014,
there were no increases of 10% or more of the same class of outstanding equity securities.



During
the quarterly reporting period ending 3-31-2014, the Company did not issue any new shares.



The Company
has not experienced any delisting of the issuer’s securities. As of the 3-31-2014, there were no current, past, pending
or threatened legal proceedings or administrative actions that could have a material effect on the issuer’s business, financial
condition or operations other than those items specifically described hereunder or otherwise disclosed in OTC Markets Filings.
As of 3-31-2014 and remaining true through the date of this filing, there were no past or pending trading suspensions by a securities
regulator. The legal proceedings, whether past, pending or threatened, all fall under the guidelines of being within the ordinary
course of business, and are disclosed in detail in this filing or incorporated within previously filed disclosures with the OTC
Markets.



Business
of Issuer -- The SIC Codes most closely conforming to the Company’s business activities are: 7822 (Services –
Motion Picture & Video Tape Distribution) and 2731 (Books: Publishing). The Company is currently operating. At
no time has the Company ever been a “shell company” as defined in the guidelines.



Through
the operating entity of “Hannover House,” the Company is actively involved with the production, acquisition and distribution
of entertainment products into the USA and Canadian markets, including theatrical films, home video releases, rights licenses
of films and videos to Video-On-Demand platforms and television, as well as book publishing (including printed editions and electronic
“E-Book” formats).



FILMS
& VIDEOS – Most of the film and video titles that are distributed by the Company are “acquired” or otherwise
licensed from third-party suppliers, often production companies or media companies seeking to expand their income and market reach
through a relationship with Hannover House. Some of the properties distributed by the Company are “sales agency”
ventures, in which the Company performs certain sales & marketing functions on behalf of the owners of the properties, as
opposed to having the Company actually purchase or otherwise license rights into the property. Historically, most of the titles
sold by the Company were under such “sales agency” ventures. However, beginning in 2010 with the merger of
Hannover House and Target Development Group, Inc., the Company began moving away from “sales agency” ventures
and pursuing actual rights-licensing / acquisition structures for new titles. Examples of “sales agency” titles
would include “Hounddog” from Empire Film Group and “Grand Champion” from American Family
Movies; examples of rights-licensed titles would include “Twelve” from Gaumont and “Turtle: The Incredible
Journey” from Sola-Media. The Company benefits from rights-licensed titles over sales-agency titles in a variety of
ways: a). the fees to the Company are usually higher under rights licenses, b). the duration of the terms of representation rights
are usually longer for rights licenses, and c). titles falling under rights- licenses provide the Company with additional balance
sheet and collateral benefits.



For the
calendar year ending 12-31-2013, the Company generated over ninety-two percent (92%) of the gross revenues from the sales, distribution
and licensing of Film & Video properties. The average “gross margin” generated for the benefit of the Company
from the release of Films & Videos is twenty-seven percent (27%).



BOOKS
/ E-BOOKS – The Company remains active in the acquisition and licensing of publishing rights to printed books and e-Books.
The gross margins earned by the Company in the release of Books are generally much higher than the margins derived from the release
of Film and Video properties; however, the upside revenue potential for books is usually not as high as the potential for Films.
So the Company seeks to maintain a balance in its release slate of high-margin book properties, with high-revenue Film and Video
properties.





Page11





The use of the term "Company"
refers to the combined entities, as reported on a consolidated basis, of Hannover House, Inc., Truman Press, Inc., d/b/a “Hannover
House” and Bookworks, Inc. (a special purpose entity utilized for Screen Actors Guild activities and productions). Each
of the corporate entities files separate income tax returns with the federal government and respective states of registration;
however, financial statements and reports, as of January 1, 2010, refer to the combined and consolidated results of all entities.
Hannover House, Inc. is the publicly-traded entity for all operating divisions. Truman Press, Inc., d/b/a “Hannover House”
is the operating and releasing division entity for all consumer products. Bookworks, Inc., is a special purpose entity established
for the servicing of book and publishing ventures, and more recently, used for Screen Actors Guild productions.



As of 3-31-2014
and remaining true through the date of this filing, the Company does not foresee any probable or existing governmental regulations
as having an adverse or material impact to the operations.



During
calendar year 2009 (and specifically limited to activities for Truman Press, Inc., d/b/a “Hannover House”), the Company
invested approximately $15,000 on activities that could be characterized as ‘research and development.’ During the
calendar year of 2010, and under the consolidated reporting of all entities, the Company invested approximately $20,000 on projects
and activities that could be characterized as ‘research and development.’ During the calendar year of 2011 and under
consolidated reporting of all entities, the Company invested approximately $166,000 on projects and activities that could be characterized
as ‘research and development.’ (specifically, the production of feature film / video products). During 2012, the Company
invested approximately $287,114 on production projects / R&D assignable; during 2013, the Company made no new investments
in production or activities that would be R&D assignable.



The Company
has not incurred any non-negligible costs relating to compliance with environmental laws, whether to federal, state or local.



As of 3-31-2014,
the Company had 6 full-time employees.















































Page12





The
nature of products and services offered:



| | A. | The principal products
    of the Company, and their respective markets are:
| | -- | ----------------------------------------------------------------------------



| | i. | Theatrical films
    – released to theatres in the United States
| | -- | ----------------------------------------------------------------



| | ii. | Home Video Products
    (DVDs, Blu-Rays, Digital Copies) – released to video specialty retailers, mass-merchandisers, bookstores, schools, libraries
    and rental outlets (including kiosks) in the United States and Canada;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii. | Video-On-Demand
    releases – films and videos offered for direct ‘in-home viewing’ by consumers via a variety of service providers.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------



| | iv. | Books and E-Books
    – sold through bookstores, schools, libraries, internet retailers and streamed through a variety of e-Book platforms.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------



| | B. | The primary distribution
    methods used by the Company for all consumer product goods can be categorized as: “two-step wholesale” distribution
    (wherein the Company sells its products to an authorized wholesale distributor, which in turn, resells the products to retailers
    or consumers) and “direct distribution” wherein the Company sells its products directly to consumers or directly
    to the end-user retailer.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | C. | The Company has
    announced, and included in previously published disclosures, a listing of some of the principal, upcoming theatrical films
    that will also be released onto home video formats.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | D. | Competitive Position
    – The Company competes for theatrical screens and retail (home video) shelf space against seven (7) Major Studio suppliers
    and approximately eight (8) independent studio suppliers. While all of the Major Studio competitors operate their own (in-house)
    home video distribution divisions, only three of the independent studio suppliers operate both theatrically and in the home
    video markets. Operating a home video releasing label “in-house” provides the Company with an advantage in the
    solicitation of titles for acquisition, as well as provides greater control over the Company’s cash-flow and corporate
    goals.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | E. | Materials and Suppliers
    – The principal service providers to the Company are listed in detail in this disclosure, below. The principal suppliers
    of new release film and video products include the following production companies and programming sources (listed alphabetically):Allegheny Image Factory; American Family Movies; Associated Television; Atlas Films; BerVon Entertainment; Cinetic Media;
    Daybreak Pictures; Empire Film Group, Inc.; Eurocine International; Gaumont, SA; Origin Motion Pictures; Plaza Entertainment,
    Inc.; Phoenix Entertainment; Phoenix Releasing Group; Sola-Media, GmbH; Shoreline Entertainment; Studio 3 Entertainment; PWI-Veracruz
    Entertainment. The principal suppliers of books for the Company to publish include (listed alphabetically): James Danielson,
    Phil Goodman, Brenda Hancock, Vivian Kaplan, Barr McClellan and Vivian Schilling. The Company sees no shortage of properties
    available for acquisition in any of the applicable media.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | F. | Dependence on Major
    Customers – Two of the Company's current customers as of 12-31-2013 contributed fifteen percent (15%) or more to the
    overall, annualized sales revenues.  Wal-Mart Stores, Inc. (inclusive of sales to their SAM’S Clubs division),
    has been purchasing most of the Company's new release DVD titles.. The Company does not see the Wal-Mart market share as an
    unhealthy dependence on a key customer, as Wal-Mart constitutes a much smaller share of the Company’s overall revenues
    than for many Major Studios, and the Company does not anticipate that the growth in sales to Wal-Mart Stores, Inc., will grow
    disproportionately with the Company’s other customers. Revolution International has commenced activities for the international
    sales and licensing of higher-end properties owned or controlled by the Company, the revenue results for which also exceed
    the fifteen percent (15%) threshold of total, annualized revenues.  The Company does not feel that the rapidly growing
    sales revenues being realized from the international markets poses an unreasonable or viable threat to operations, as sales
    are cumulative over multiple licensing agreements for specific territories, media and titles.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Page13







| | G. | The Company does
    not own or control any patents, franchise or concessions. The licenses and royalty agreements fall under the category of being
    part of the ordinary course of business.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | H. | The company does
    not need any government approvals of principal products or services.
| | -- | -----------------------------------------------------------------------------------------



The
nature and extent of the issuer’s facilities include a primary office and warehouse combo unit (under lease from Elder
Properties, Springdale, AR), comprising approximately 6,000 square feet.



Item
3	Quantitative and Qualitative Disclosures About Market Risk



Investment
in the Company's Stock bears similar risks as may exist with other stocks trading on the OTC Markets board. The trading price
for Company's Stock Shares can vary significantly based upon a variety of factors unrelated to the Company's actual value or revenue
achievements. On an accrual basis, the Company is generating profits each quarter, with regular DVD and Blu-Ray product sales
supplemented with long-term receivables for Subscription Video-On-Demand and Television sales. However, on a cash-flow basis,
the Company's cash resources are often strained by immediate and long-term debt obligations. Some investors and shareholders have
expressed discomfort with the Company's persistently tight cash position, which has been the result of balancing ongoing operational
needs with debt management and new release activities against product cash flows. Conversely, many shareholders have also expressed
resistance to the concept of issuing equity shares under "debt conversion" structures, which would relieve much of the
cash-flow burdens but would result in a dilution of shareholder equity. Accordingly, management has worked to find the best balance
of maximizing shareholder value and return, while minimizing equity dilution activities. There can be no assurance that ongoing
cash flow from product sales will, by itself, be sufficient to meet the Company's combined operational, debt-management and growth
needs. To address the Company's cash position, management has initiated an agreement with an Accounts Receivable-based lender,
to accelerate cash flow from current product sales and thus facilitate faster growth into new areas (such as the Company's "VODwiz.com"
streaming venture), as well as to provide working capital to enable the Company's Film and Television Rights Library to be more
efficiently exploited.



While there
are no material threats at present to the Company's ongoing viability, there can be no assurance that the majority of long-term
creditors will continue to comply with debt reduction and installment payment agreements. And while the Company continues to generate
DVD and Blu-Ray sales to major retailers (and Video-On-Demand contracts through the major VOD portals), there can be no assurance
that current and past sales performance will continue into the future. The remedies available to the Company for continued viability
and growth are revenues from product sales and licenses, credit arrangements (both with lenders and suppliers) and stock-equity
opportunities (ranging from shelf-registration of new shares to "debt-conversion" ventures to alleviate the cash-flow
burden from older, qualifying payables). Investment in the Company's Stock Shares bears significant risks, as well as significant
upside potential. The "Price-Earnings Ratio" for publicly-traded entertainment stocks in the Company's area of activity
results in an average P/E rate of 22-times. The current P/E ratio for Company's s(Hannover House's) is 5.8, suggesting that the
shares are currently trading at a price that is undervalued by a factor of approximately 4-times when compared to the industry
average.



Trading
volume in Company's stock is averages approximately 1,510,000 shares per day, suggesting that investments in the Company's stock
may not be as easily or quickly resold as some other stock offerings.













Page14





Item 4.	Controls and Procedures -
Evaluation of Disclosure Controls and Procedures



The
term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act
of 1934 as amended (the “Exchange Act”). These rules refer to the controls and other procedures of a company that
are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within required time periods specified in the SEC’s rules and
forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As
of March 31, 2014, the end of the period covered by this report, the Company carried out an evaluation under the supervision and
with the participation of our Chief Executive Officer and President of the effectiveness of our disclosure controls and procedures.
Our Chief Executive Officer and Chief Financial Officer have concluded that such controls and procedures continued to be effective
as of March 31, 2014.



Item
4T.	Controls and Procedures



Changes
in Internal Control over Financial Reporting

As
required by Rule 13a-15(d) of the Exchange Act, the Company, under the supervision and with the participation of the Company’s
management, including the Chief Executive Officer and Chief Financial Officer, also evaluated whether any changes occurred to
the Company’s internal control over financial reporting during the period covered by this report that have materially affected,
or are reasonably likely to materially affect, such control. Based on that evaluation, there has been no such change during the
period covered by this report.





PART
II - OTHER INFORMATION



Item
1.	Legal Proceedings



As of March
31, 2014, the Company was not involved in any open or non-adjudicated litigation matters.



Item
1A.	Risk Factors



Other than
as set forth in this FORM 10-Q filing, there are no specific risk factors relating to the Company's securities that are not universally
applicable to other equities trading on the OTC Markets.



Key
Man / Principals - The Company is reliant upon the continued employment and work performance of the two, principal managers,
Eric Parkinson (CEO) and D. Frederick Shefte (President). As an accommodation to benefit the Company's cash flow, both Parkinson
and Shefte have been deferring a majority of their salaries. Additionally, as has been required by many third-party program suppliers,
Parkinson has often been listed as a "key man" to the rights licenses or sales venture agreements for specific acquisitions,
due to his successful home video sales track record.



The cessation
of employment by either Parkinson or Shefte could have a material and negative impact on the Company, as current cash flows would
not facilitate the hiring of comparably qualified executives, and the loss of Parkinson as "key man" could result in
multiple title agreement cancellations.



Page15





Item
2.	Unregistered Sales of Equity Securities and Use of Proceeds.



Not applicable
to Issuer.





Item
3.	Defaults Upon Senior Securities



Not applicable
to Issuer.





Item
4.	Submission of Matters to a Vote of Security Holders.



Not applicable
to Issuer.





Item
5.	Other Information.



None.





Item 6.	Exhibits



None.



























































Page16









SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.



|Date: May 14,
    2014 | Hannover House, Inc.                                    
|---------------------- | --------------------------------------------------------
|                       | By: /s/ Eric F. Parkinson                               
|                       | Eric
    F. Parkinson,Chairman & Chief Executive Officer







































Page17





CERTIFICATION

I, Eric F. Parkinson certify
that:

|1. |  | I
    have reviewed this quarterly report on Form 10-Q of Hannover House, Inc.;
|-- |  | -------------------------------------------------------------------------------



|2. |  | Based
    on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
    to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
    to the period covered by this report;
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. |  | Based
    on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
    material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
    presented in this report;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. |  | The
    registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined
    in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) |  | Designed
    such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
    to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to
    us by others within those entities, particularly during the period in which this report is being prepared;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) |  | Designed
    such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
    our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
    statements for external purposes in accordance with generally accepted accounting principles;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) |  | Evaluated
    the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions
    about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based
    on such evaluation; and
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) |  | Disclosed
    in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s
    most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
    affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
    and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. |  | The
    registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control
    over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors
    (or persons performing the equivalent function):
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) |  | All
    significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
    are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
    information; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) |  | Any
    fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s
    internal control over financial reporting.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Date:  May
    14, 2014 | Hannover House, Inc                                  
|----------------------- | -----------------------------------------------------
|                        | By: /s/ Eric F. Parkinson                            
|                        | Eric F,
    ParkinsonChairman Chief Executive Officer





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