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: September
30, 2015



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."

f/k/a "Mindset Interactive Corp."

330 Clematis Street, Suite 217, West
Palm Beach, Florida 33401 (561) 514-0936
(Former name or former address and former fiscal year, if changed since last report)

_________________

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 BANKRUPTCY
PROCEEDINGS 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 September 30, 2015:



| | a. | Total Common Stock Shares in issue as of September 30, 2015: 754,843,404*
| | -- | -------------------------------------------------------------------------

| | b. | Above Shares Restricted from Sale: 103,860,595*
| | -- | -----------------------------------------------



TOTAL COMMON STOCK SHARES
IN MARKET: 650,982,809*



| | c. | Series “A” Preferred Shares: 3,000,000
| | -- | --------------------------------------



Shareholders of Record: 2,018
(Standard Registrar count)



Total Beneficial Shareholders:
344 (Broadridge, ICS count)



Total Authorized Common Stock Shares:
800,000,000

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



* Share count includes 10-mm restricted
stock shares issued as collateral to TCA Global Master Fund, which are subject to return to treasury stock. Share count also includes
the issuance by Transfer Agent during the current reporting period of a block of approximately 9,854,147 common stock shares to
Blackbridge Capital, which Company has demonstrated to have been issued in error by the Transfer Agent, and which occured without
meritorious basis. Company has engaged litigation counsel to pursue its rights and remedies in recovering these shares or obtaining
financial consideration.





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





























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|PART I.  FINANCIAL INFORMATION |         
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|PART II.  OTHER INFORMATION    |         
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|SIGNATURES                     |         
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Page 3







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 September 30, 2015 are contained within the following pages. In compliance with regulations governing FORM 10-Q reports,
the information contained within these financial statements is unaudited.





































Page 4







HANNOVER HOUSE, INC.

CONSOLIDATED STATEMENT OF INCOME &
RETAINED EARNINGS

FOR THE THREE-MONTH PERIOD ENDING SEPT.
30, 2015 (UNAUDITED)









Page 5







HANNOVER HOUSE, INC.

CONSOLIDATED GENERAL AND ADMINISTRATIVE
EXPENSES

FOR THE THREE MONTHS ENDING 9-30-2015





















Page 6







HANNOVER HOUSE, INC.

Consolidated Balance Sheet /
As of Sept. 30, 2015 (Unaudited)











Page 7







HANNOVER HOUSE, INC.

Consolidated Balance Sheet
/ As of Sept. 30, 2015 (Unaudited) / continued



Page 8











Page 9







HANNOVER HOUSE, INC.

Change In Shareholder’s
Equity

For the Three Month Period Ending
September 30, 2015















































Page 10







HANNOVER HOUSE, INC.



Sales by MEDIA and Ranked by
Top 15 Titles During Q3, 2015













Page 11







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 Annual OTC Markets filing for the year ending December 31, 2014. 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 September 31, 2014 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 $812,000 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.





Page 12







As of 9-30-2015, there were no further
changes of “control”.



As of 9-30-2015, there were no increases
of 10% or more of the same class of outstanding equity securities.



During the quarterly reporting period
ending 9-30-2015, the Company issued a total of 31,031,291 shares of stock. Additionally, and without legal basis, authorization
or prior notification to Company, Standard Registrar & Transfer Co., Inc., issued 9,854,147 shares to Blackbridge Capital,
which is the subject of a pending legal action for recover of shares or proceeds. The authorized and legitimate new issuances consisted
of a total of 15,972,128 shares issued to Magna Investments, in a debt conversion transaction to reduce the balance owed to TCA
Global Master Fund; and 15,089,163 to Blackbridge Capital in consideration of debt reductions for National Bank of California loan
balance.



The Company has not experienced any delisting
of the issuer’s securities. As of the 9-30-2015, 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 9-30-2015 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 or through the company’s recently formed multi-studio sales cooperative, Medallion Releasing, Inc. 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. 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 being released under the Hannover House label, as this form of licensing arrangement can ultimately be more lucrative
for the company. Most of the titles being distributed by the Medallion Releasing division are under sales agency agreements, ranging
from 15% to 50% revenue splits with the program suppliers and outside labels.



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.







Page 13







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),as
well as VODWIZ, Inc. (the special purpose video-on-demand portal venture), and Medallion Releasing, Inc. (the multi-studio
sales venture). 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 9-30-2015 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 been involved in some feature film productions during 2014 and the first quarter of 2015, including
development, pre-production and post-production work on “Bonobos: Back to the Wild” (nature docudrama),
“Mother Goose: Journey to Utopia” (live-action fantasy adventure), “Dinosaurs of the Jurassic”
(Documentary), “Shadow Vision” (Sci-Fi Thriller), “The Summoning” (Horror-Thriller),
“Shuck and Jive” (Urban Drama) and “Clown Town” (Horror). The Company is also
working on structuring financing and distribution ventures for three additional features, “Extreme Operative”
(action-adventure), “Dog and Pony Show” (Family-Animal Adventure), “Bridge To Redemption”
(Action-Thriller), “The Legend of Belle Starr” (Historic-Action-Western), “True Freshman”
(Sports-Christian-Feature), “Over The Edge” (action-adventure),and“Primate”
(sci-fi-creature-feature).A previously announced development project, “Wild Oats” has been licensed under
a distribution pact between the production company and The Weinstein Company, for which Hannover House is both credited and a profit
participant. Production on “Wild Oats” is completed, and stars Shirley MacLaine, Demi Moore and Jessica Lange.
The film was directed by Andy Tennant(director of studio megahits “Ever After”, “Sweet Home Alabama”
and “Hitch” – all of which surpassed $100-mm in domestic USA Box Office proceeds).The company feels that
its participation in facilitating the production of these and other higher-end titles generates many benefits: longer license periods
(usually perpetuity), greater revenue opportunities (including international rights), and higher-end titles to serve
as locomotives to elevate the company’s stature with theatrical exhibition chains and video mass merchants which can help
with catalog and secondary title placements.



The Company has not incurred any non-negligible
costs relating to compliance with environmental laws, whether to federal, state or local. As of 9-30-2015, the Company had 12 full-time
employees, positions were: CEO, President, VP Sales, Director of Sales, Director of Promotions, Production Manager, Bookkeeper,
Film Booker, Receptionist, Technical Services, Publicity Assistant and Warehouse Manager.







Page 14







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; Atlantic-Pacific Picdtures; Atlas Films; BerVon Entertainment; Cinetic Media; CMD; Daybreak Pictures; Empire Film Group, Inc.; Eurocine International; Gaumont, SA; Green Apple Films; Little Film Company; Origin Motion Pictures; Plaza Entertainment, Inc.; Phoenix Entertainment; Phoenix Releasing Group; Sola-Media, GmbH; Shoreline Entertainment; SND Films; Studio 3 Entertainment; PWI-Veracruz Entertainment and XVIII 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 12-31-2014 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.
        Medallion Releasing 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.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Page 15







| | 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 (Hannover House's) is 3.1, based on an annualized projection of the current reporting period.
This extremely low P/E rate for Hannover House shares relative to the other publicly traded companies operating in the same business
sector, suggests that the shares are currently trading at a price that is undervalued by a factor of approximately 6-times when
compared to the industry average.



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 September 30, 2015, 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 September 30, 2015 .



Page 16







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 September 30, 2015, the Company was involved in the following legal matters for which ongoing court activities / filings or
adjudicated status were still pending:



1). TCA GLOBAL MASTER FUND
– The previously disclosed balance due to TCA Global from Company, was the subject of a Florida Courts judgement issued during
Q3, 2015. The Company noted that the court filings from the attorneys for TCA contained several demonstrably erroneous statements,
including the wrong balances due to TCA, and misstatements that TCA had been unable to secure payment via “debt conversion”
transactions (which had been occurring regularly throughout the prior year). Rather than spend significant legal fees to rebut
and contest the statement errors, Company decided instead to pay off the proper balance, in order to enjoy the benefits of the
release of the UCC Security Interest and the return of the 10-million “collateral” shares of Company’s stock
that were issued to TCA back in May of 2013. As of the date of this filing, the balance due to TCA has been reduced to approximately
$61,000, and is expected to be paid in full during the month of December.



2). STANDARD REGISTRAR –
The Company has engaged George B. Morton, Esq., to pursue an action to collect back from Standard Registrar an issuance of approximately
9.8-mm shares that were released by Standard to Blackbridge Capital in mid-September without legal basis or authorization. The
value of the shares at the date of issue was approximately $61,000, which sum falls below the jurisdiction under Federal Court
rules; accordingly, the original plan to file in US Federal Court in California has been modified to file as a civil court action
in Arkansas.



3). STOCK MANIPULATOR’S SUIT– The Company has engaged George B. Morton, Esq., to pursue an action against five known members of an organized
stock “bashing” gang that have collectively damaged the Company’s share price by more than $10-million in market
capitalization value over the past three years. Due to the size of the damages in this case, the jurisdiction will be the US Federal
Court, western district of Arkansas.



A related action to pursue charges for
the criminality of the actions taken by these manipulators is also being prepared for this same court venue.



4). BRENDA HANCOCK VS. HANNOVER
HOUSE – One of the Company’s “author” clients has filed a lawsuit in Washington County, Arkansas,
seeking an early termination of the distribution rights license extended to Hannover House for her book, “One of the Lucky
Ones.” The Company had previously agreed to an early termination of the license due to sluggish sales for the book. Accordingly,
the Company response (to be filed in early December) will be to seek payment of its legal fees to respond.



5). HANNOVER HOUSE VS. JSJ INVESTMENTS– Company offered to pay JSJ Investments in CASH for a convertible note, based upon the clear language in the note
which stated the legal interest rate of 17% plus the principal. JSJ refused to accept the cash and demanded to “convert”
the obligation into freely trading shares at a greater than fifty-percent discount to current market pricing. It is Company’s
position that the note clearly has a procedure for the payment of the principal and interest in cash, and that the “conversion”
option only applied in the event of a default on the note. The representative for JSJ communicated that it is their position that
they are entitled to massively discounted shares, and that the cash payment language was merely a formality, and never an actual
option. Company’s response to that position is to let the court decide what is legal under the law, recognizing the usury
rate caps for lenders and the presupposition that the note was entered into by both parties in good faith.



Page 17







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. Additionally, the engagement of Tom Sims as VP of Sales for both Hannover House, Inc. and Medallion Releasing,
Inc., makes him into an important and key man employee. The cessation of employment by any of these principals 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.



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, although a previously
active credit arrangement with TCA Global Master Fund has since been terminated by mutual consent.



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



Not applicable to Issuer.



Item 5.	Other Information.



Additional Information required by the
OTC Markets that is not (necessarily) required under S.E.C. reporting guidelines:













































Page 18











(OTC MARKETS “GUIDELINES
FOR CURRENT REPORTING STATUS” - PART D / MANAGEMENT STRUCTURE AND FINANCIAL INFORMATION



Item 11 (A-1 through A–6)
– The name of the Chief Executive Officer, members of the board of directors, as well as control persons are:



| | a) | Eric Filson Parkinson, Chief
Executive Officer and member of the board; business address for Mr. Parkinson is: 1428 Chester St., Springdale, AR 72764. At all
times during the prior five years, Mr. Parkinson has been employed as the C.E.O. of Truman Press, Inc., d/b/a “Hannover House.”
During 2014, Mr. Parkinson had been earning an accrued salary of ninety-thousand dollars (USD $90,000) per year, for which the
vast majority has been, and continues to be deferred and accrued. The salary that Parkinson is accruing during calendar year 2015
has been adjusted back to its previous level of one-hundred-eighty-thousand dollars (USD $180,000) per year. As of December 31,
2014 and continuing to this date, Mr. Parkinson beneficially owned 43,141,649 shares of Class A common stock in the Company, and
1,800,000 shares of Series A Preferred Stock. Mr. Parkinson has voluntarily surrendered back into company treasury a total of 31,800,000
shares of stock, to be held pending satisfaction of corporate and sales achievements, and subsequently delayed for review until
January, 2016. Parkinson has no other Board memberships or affiliations other than volunteer, non-profit associations.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Don Frederick Shefte, President
and member of the board; business address for Mr. Shefte is: 3741 N. Old Wire Road, Fayetteville, AR 72703. At all times since
November, 2006, Mr. Shefte has been employed as the President of Truman Press, Inc., d/b/a “Hannover House” as well
as a part-time, adjunct professor of Business at the Sam Walton School of Business at the University of Arkansas. Prior to joining
Truman Press, Inc. (in November, 2006), Shefte was the Senior Vice President and Senior Trust Officer at the Bank of Fayetteville.
During 2014, Mr. Shefte has an accrued salary of ninety-thousand dollars (USD $90,000) per year, for which the vast majority has
been, and continues to be deferred and accrued. The salary that Shefte is accruing during calendar year 2015 has been adjusted
back to its previous level of one-hundred-eighty-thousand dollars (USD $180,000) per year. As of December 31, 2014 and continuing
to this date, Mr. Shefte beneficially owns 31,487,546 shares of Class A common stock in the Company, and 1,200,000 shares of Series
A Preferred Stock. Shefte has no other Board memberships of affiliations other than volunteer, nonprofit associations. Shefte has
voluntarily surrendered back into company treasury total of 5million shares of stock, to be held pending satisfaction of corporate
governance achievements.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Tom Sims, currently employed
as Vice President of Sales for Hannover House, Inc., and Executive Vice President of Medallion Releasing, Inc., has agreed to join
the Board of Directors for Hannover House, Inc., effective upon the Company’s full registration and acceptance as a fully-reporting
Issuer with the Securities and Exchange Commission and the effective date upon which Sims is added as an additionally named, covered
party of the Officers and Director’s Liability Insurance. As of June 30, 2015, Sims received a first-year bonus of one-million
(1,000,000)
shares of Common Stock. Under the terms of his employment as Vice President of Sales, Sims is also entitled to receive an additional
one-million (1,000,000) shares for each $10-million in gross revenue generated by the Company in any given calendar year under
his sales management.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





B.Legal / Disciplinary History.
Neither of the board of directors members has been involved in any form of criminal conviction or proceeding or named as a defendant
in a pending criminal proceeding; neither director has been suspended, vacated or otherwise barred from any involvement in securities,
commodities or banking activities; neither director has been affected bya finding or judgment
by a court of competent jurisdiction, the Securities and Exchange Commission, the Commodity Futures Trade Commission or a state
securities regulator of a violation of federal or state securities or commodities laws; neither director has received an order
by a self-regulatory organization that permanently or temporarily bars or limits such person’s involvement in securities
activities.









Page 19









C.Disclosure of Family Relationships– There are no family relationships existing between or among either of the Board of Directors, or any other officers, directors,
or beneficial owners of more than five percent (5%) of any of the class of the issuer’s equity securities.



D.Disclosure of Related Party Transactions– The Company was not involved in any Related Party Transactions valued at $120,000 or more, or valued at more than one percent
of the issuer’s total assets at year-end for its last three fiscal years.



E.Disclosure of Conflicts of Interest– There are no known conflicts of interest.



(OTC
Markets) Item 14 – Beneficial Owners – The total count of Beneficial Owners as reported to the Company
by Broadridge ICS (as of Dec. 31, 2014) was 343. As of December 31, 2014 and remaining true through the date of this filing, the
Company was aware of only two shareholders controlling directly or beneficially more than five percent (5%) of any class of the
issuer’s total authorized equity securities (except as described in Item 14 c) below):



a)Eric F. Parkinson (CEO), 1428 Chester St., Springdale, AR 72764 – holding 43,141,649 shares
of Common Stock. Parkinson also owns 1,800,000 shares of Series A Preferred Stock. Mr. Parkinson retains a lien to reclaim up to
31.8-million shares from his original allotment of TDGI shares, which were a voluntarily surrendered back to the company’s
treasury pending achievement of certain corporate and revenue goals for the company under his direction as C.E.O. During Q2 (2012),
Parkinson allocated from his personal holdings a total of 1,800,000 shares of restricted stock, for the benefit of key employees
and as additional consideration for a term note extended to the Company by a private investor. Parkinson has an agreement with
the Company regarding a performance-based formula for the recapture / replacement of these shares, to occur no sooner than July
1, 2013, but since extended to January, 2016 for re-evaluation.



b)Don Frederick Shefte (President), 3741 N. Old Wire Road, Fayetteville, AR 72703 – beneficially
owned 31,487,546 shares of Common Stock. Shefte also owns 1,200,000 shares of Series A Preferred Stock. Upon closing of the acquisition
of Truman Press, Inc. by Target Development Group, Inc., in January, 2010, the TDGI stock allocation for Shefte was divided with
Shefte receiving 50,987,547 shares and each of his two adult children receiving 6,373,443 shares under a pre-existing agreement
relating to Shefte’s ownership interested in Truman Press, Inc. Mr. Shefte retains a lien to reclaim up to 5-million shares
from his original allotment of

TDGI
shares, which were a voluntarily surrendered back to the company’s treasury pending achievement of certain corporate governance
goals for the company under his direction as President.



Item 11 A1-A6 – Supplemental Disclosures.i).The Company has completed a Form 10-12(g) Registration Statement. This document is expected to be filed with the Securities
& Exchange Commission on or before Jan. 15, 2016, in order to include the full year-end audits for the
current year (2015), as well as the newly completed audit for calendar year 2014. Company is prepared to ‘close-out’
the 12-31-2015 period at the close of business on Thursday, Dec. 31, in anticipation of the corporate goal of an expeditious filing
of the Form 10 Registration Statement).





ii). Company expects to fully retire the debt balance due to
TCA Global Master Fund this calendar year, which will trigger the return of 10-mm shares of common stock issued to TCA in 2013
as partial collateral for a business loan.



iii). Company has recently enacted a change of corporate direction which puts a greater
emphasis on theatrical release activities, with the generation of fees for release services as well as from revenue collections.



iv). Company plans to add a total of three (3) new members to the Board of Directors in January, 2016, timed with the activation
of Officers & Director’s Liability Coverage and the filing of the Form 10 Registration;



v). Beginning in January, Company,
and dependent on factors including the Common Stock PPS at that time, as well as the Company’s status with certain, key creditors,
the Company may want to utilize a portion of cash collections to purchase common stock shares “off the open market”
and retire said shares back into treasury.



Page 20









vi). Company hopes to complete installment payment plans in December for several key
creditors, including the Anderson’s (“Twelve P&A Loan”), Michael Weinreb (“Hounddog P&A Loan”),
Second Star Investments (“Twelve P&A Loan”), Bedrock Ventures (“Twelve Acquisition Loan”), E.E. Smith
(“Boardinghouse Stew”) and Interstar Releasing (“Dawn of the Living Dead” dispute). Management believes
that the stronger cash flow being generated from current enhanced theatrical and home video releasing activities can be utilized
to reduce or retire the debt burden from these key creditors – all of which have demonstrated patience for several years
while the Company has grown.



Item 6.	Exhibits



Examples of theatrical one-sheet poster arts for recent, current
and upcoming theatrical releases from Company.
























































































Page 21





















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: November 15, 2015 | Hannover House, Inc.                                
|----------------------- | ----------------------------------------------------
|                        | By: /s/ Eric F. Parkinson                           
|                        | Eric F. Parkinson,Chairman & Chief Executive Officer







































Page 22







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:  November 15, 2015 | Hannover House, Inc                              
|------------------------ | -------------------------------------------------
|                         | By: /s/ Eric F. Parkinson                        
|                         | Eric F. ParkinsonChairman Chief Executive Officer









EXHIBITS

EXAMPLE “KEY ART”
POSTER IMAGES FOR

CURRENT & UPCOMING HANNOVER
HOUSE THEATRICAL RELEASES





Page 24