MHHC Enterprises, Inc. Showcases Strong Financial Performance and Strategic Initiatives to Ensure Long-Term Success

Rhea-AI Summary

MHHC Enterprises, Inc. announces substantial financial advancement through restructuring efforts.

Positive

• MHHC Warranty and Services has demonstrated significant financial progress, with revenue growing to $417,828 in the six months ended June 30, 2023, compared to $270,849 for the same period in 2022.
• 2023 year-to-date extended service contract sales have increased to $2.4 million as of September 25, 2023, compared to $423,702.40 for the full nine months ended September 30, 2022.
• The company acquired 25 new enterprise business sales and 18,160 new warranty policy contracts in the six months ended June 30, 2023.
• Net operating cash has significantly improved, with a total increase of 21,520 new contracts in the six months ended June 30, 2023.

Negative

• None.

OLYMPIA, WA / ACCESSWIRE / October 5, 2023 / MHHC Enterprises, Inc. (OTCQB:MHHC) is proud to announce substantial advancement in its financial performance, driven by a comprehensive restructuring effort that has fortified revenue growth, operational efficiency, and overall resilience.

In the realm of the company's largest revenue producer, MHHC Warranty and Services, a robust Revenue Growth Strategy has been successfully implemented. The Sales and Marketing Organization has strategically focused on three key business channels, resulting in a diversified revenue stream. These channels include agents reselling warranty products through various channels, and enterprise businesses procuring original equipment manufacturer (OEM) and Extended Service coverage in mass quantities. We have also continued the development of a Consumer Direct channel enabling individuals to purchase warranty coverage through the WarrantyYourWorld.com portal.

As of September 25, 2023, MHHC Warranty and Services has demonstrated significant financial progress. As a result of these efforts, the Company's revenue grew to $417,828 in the six months ended June 30, 2023, compared to $270,849 for the six months ended June 30, 2022. The company has increased 2023 year-to-date extended service contract sales to $2.4 million (subject to deferred revenue accounting treatment as attributed to extended service contracts beyond one year terms) as of September 25, 2023, as compared to $423,702.40 for the full nine months ended September 30, 2022, acquired 25 new enterprise business sales leading to 18,160 new warranty policy contracts in the six months ended June 30, 2023, and experienced a notable increase of 3,360 new agent policy contracts from agent sales over the same period. Deferred revenue is recorded within the contract liabilities line of the Company's balance sheet.

Operational efficiency enhancements have been a key focus, including cost-effective methods and procedures to enhance efficiency in bulk sales to Enterprise or Agent sales sectors, automated processing of claims, and streamlined financial outputs. Key performance indicators have also been implemented to manage the claims process more efficiently.

As a result of these restructuring efforts, MHHC's financial resilience and advancement have become evident. This includes improved net operating cash, increased contracts sold reflecting a substantial increase in revenue-generating activities, and enhanced operational resilience through improvements and redundancy in underwriting support.

Management is actively working to increase revenue-generating operations, with a primary focus on cash flow from product sales. Additionally, efforts are underway to raise working capital through various financing sources, including potentially through the issuance of equity and/or debt securities.

As of September 25, 2023, after $1.1 million was collected, accounts receivable stand at approximately $1.3 million, with diligent efforts to enhance collection ongoing. Based on forecasted sales, management anticipates accounts receivable to exceed $4 million by the end of 2023.

The company has witnessed a significant improvement in net operating cash, with a total increase of 21,520 new contracts in the six months ended June 30, 2023. These strategic initiatives, aimed at enhancing operational efficiency and shareholder value, position MHHC Enterprises, Inc. for a prosperous future. The company remains committed to transparent communication and is confident that these efforts will positively impact the company's financial position and instill confidence in stakeholders.

More information on the Company's operating results for the six months ended June 30, 2023, is available in the Company's Semi-Annual Report on Form 1-SA filed with the Securities and Exchange Commission on September 28, 2023.

About MHHC Enterprises, Inc.
MHHC Enterprises Inc. (MHHC) is a diversified holding company which through its subsidiaries, MHHC Warranty and Services Inc., WarrantyYourWorld Inc., MHHC Reinsurance Inc., and ONBLi Inc. and led by CEO and President Frank Hawley, offers help desk and warranty services throughout the U.S. The Company offers its products through over 1,000 retail locations and online. Additionally, the Company has a focus on the protection of consumer assets through the utilization of value-added warranties underwritten by top-rated insurance carriers. The Company is also focused on improving its subsidiaries to provide increased value to its customers and other stakeholders.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding including statements relating to future plans, events, financial performance, strategies, business opportunities, expectations and other statements other than historical fact, including statements concerning our growth initiatives and restructuring efforts and the anticipated results of these undertakings on our operating results and liquidity, expected increase in accounts receivable by the end of 2023, our plans to raise capital, the launch of our new "Warranty Your World" application offering, and our ability to enhance operational efficiency, achieve positive trends in our financial condition and deliver value to our shareholders. All statements contained in this presentation other than statements of historical fact are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our operating results, financial condition, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks arising from the possibility that our accounts receivable forecast for the balance of 2023 will not be met, the lack of operating history for our new subsidiaries, the possibility that one or more of our product or service offerings and/or our management's involvement do not produce the results we expect or that one or more of the assumptions or projections on which our expectations are based prove to be incorrect, the possibility that we do not raise sufficient funding in our qualified Regulation A offering under which we have not raised any proceeds despite becoming qualified in January 2023, or otherwise access capital needed to fund our operations and business plan on favorable terms, in a timely manner or at all, the possibility that we are unable to cultivate or sustain a positive trend in our financial results in future periods due to economic uncertainty, a possible recession or other factors beyond our control, as well as those described in the section titled "Risk Factors" in our Offering Circular on Form 1-A (File No. 024-11406), the most recent version of which was filed with the SEC on January 10, 2023 and qualified by the SEC on January 19, 2023. Moreover, we operate in a competitive and rapidly changing environment characterized by significant competition including from larger and better-capitalized businesses, substantial regulatory burdens, and ongoing technological advancement. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Considering these risks, uncertainties, and assumptions, the future events and trends discussed in this presentation may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law.

Media Contact:
info@mhhcco.com

SOURCE: MHHC Enterprises Inc.

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FAQ

What is the revenue growth of MHHC Warranty and Services?

Revenue grew to $417,828 in the six months ended June 30, 2023, compared to $270,849 for the same period in 2022.

How much are the 2023 year-to-date extended service contract sales?

The sales have increased to $2.4 million as of September 25, 2023, compared to $423,702.40 for the full nine months ended September 30, 2022.

How many new enterprise business sales and warranty policy contracts did the company acquire in the six months ended June 30, 2023?

The company acquired 25 new enterprise business sales and 18,160 new warranty policy contracts in that period.

How much did the net operating cash improve in the six months ended June 30, 2023?

The net operating cash significantly improved with a total increase of 21,520 new contracts in that period.