David Koh and Lilly Bright did the deal on behalf of Arthouse Films and Curiously Bright Entertainment along with Hattendorf and producer Masa Yoshihkawa.
Arthouse plans a DVD release in early 2008 on the Arthouse Films label distributed through Arts Alliance America and Mongrel Media in Canada.
The award winning film follows the film-maker as she befriends Japanese-American artist and former internment camp detainee Jimmy Mirikitani who lives on the streets of New York.
'We're honoured to be distributing this very human, poignant story about the power of art, community, family and the love of cats,' Koh and Bright said.
'We are proud to work with the film-makers on broadening the reach of a wonderfully touching film with a heart-warming ending.'
The film was produced by lucid dreaming in association with The Independent Television Service and the Center for Asian American Media, with funding provided by The Corporation for Public Broadcasting.
Additional funding was provided by The Japan Foundation, The New York State Council On The Arts, and private donors.