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you know I had to look....
Company BEASLEY INVESTMENTS LIMITED
Building Palm Chambers 3 Street
Area PO Box 3152
Town Road Town
Country Virgin Islands, British
is this your company?
me too....
"Other than my cautions to others not to read too much into the post I have posted nothing on the subject of his post."
Other than expressing my opinion of the original post to others and a couple of responses to their questions, I have posted nothing on the subject either. I mean other than cautioning folks like you did.
And since this post is a response to your post that isn't about the shareholder claiming FF gave him non-public information and then asked him to "please" not act on it, I guess this post isn't about that subject either. I mean other than my comments on it.
So what are you trying to discuss with me then? Since this is a response to your post not talking about the subject post, does that mean we are now discussing your post?
Well I will try really hard not to get caught up in it, but it appears your follow longs really want to discuss this in some detail. I posted one initial comment on the matter and then only responses to folks that wanted to continue to discuss it. Like you.
Why do you suppose a follow long would post such accusations on the internet?
I never said there was non-public information in the post. What I said was to claim that an officer of the company gave a couple of individual investors non-public information and then asked them not to act on it, whether true or not, is just not a smart thing to post on the internet.
In case you missed it, it was Frank making the claim that FF passed on non-public information, not me. From his post:
"In fact FF knew he spoke out of turn when he said to both of us, Dinkie can confirm this, ''Please do not take any action on this, I wouldn't want to be responsible if anything goes awry''...meaning don't jump into the stock market on what I just said....I assured him I would not....."
So if you have problems with someone claiming FF disclosed something he shouldn't have, take it up with sunpoop, not me. He made the claim, not me. I was merely commenting on it being reported.
Is what is being claimed by these longs proper?? Why do you think these longs would say that FF "knew he spoke out of turn" and then had to ask them not to take action based on what he said? If it was something that was already properly disclosed, they should have been free to take whatever action they like with that info, no??
my amazement over what was posted has nothing to do with it being "hearsay" or "truth". My comments were directed more towards the pure stupidity of what was posted.
If it was a made up pump, it doesn’t make much sense to make an officer of the company such a central part of the story, disclosing non-public information and then begging folks not to act on it. Then to follow it up with a public posting of the whole thing on several Internet sites. I would hardly think that this the type of thing that would attract legitimate investors. So if you are going to make something up, at least try and come up with something that does not make the company you are trying to pump look like a bunch of bumbling idiots at best and crooks at worst.
And the only way what was written could possibly be any dumber is if it was true. So true or not, my opinion of what was posted by that EDIG long remains the same.
I am amazed at what some folks will put in writing...
"He gave us no names, no time schedule but an area of business and on a scale that we have not been told of or even hinted at. If I were to tell you what he said now it would set off an avalanche of posts and questions and other communications to not only FF but to other people. Not smart.....In fact FF knew he spoke out of turn when he said to both of us, Dinkie can confirm this, ''Please do not take any action on this, I wouldn't want to be responsible if anything goes awry''...meaning don't jump into the stock market on what I just said....I assured him I would not....."
that is just amazing, disclose something you shouldn't have to an individual investor and then ask him not to act on it to cover your tracks?? Real professional. But hey, at least Frank didn't take any action on it, I mean besides posting on the internet his claim that an officer of this company apparently violated the Fair Disclosure laws, he didn't take any action, other than that.
and all of that added up to what???
"How about Gateway,HP/Disney ears,Digiplayer,Eclipse."
a $700k revenue quarter with more red ink on top of the already $65M previously squandered.
well...
"That shows that his priority was to please Sunpoop and D.inkie rather than to show respect for the potential customer and earn new business that might create shareholder value."
selling stock is the only profitable thing EDIG has ever done, so is it a big surprise where the attention would be focused.
And as far as reading the boards, of course they do. It helps them figure their next angle for selling the next boatload of stock. Selling stock IS EDIG's business after all, every other thing they do is geared toward that. Everything from negative margin deals to paper SEC filings, all to keep the hook set for he next printing of stock.
well again, 15 years and $65M++ later....
some may say it has gone unnoticed. And since millions of shares continue to flood the market to this very day, any "notice" they have gotten clearly hasn't slowed the printer in the least.
I disagree anyhow; I think the truly GREAT thieves are the ones that do it in the open and get people to WILLING give up the wealth because they BELIEVE in something. If you can get someone to the point where they give you money because of an almost religious like belief and devotion (or as RP called it, a "cult"), then you have truly accomplished what few have done.
If you can repeat the cycle over and over, with the same folks especially, always extending out the "big reward" and never returning more than required to keep the hook set, then you will be richer then most people will ever even dream about.
"If they really know what they're doing why is everyone so upset?'
I think you missed fred's subtle point that while they "know what they're doing", some cynic may think what they are doing may not be aimed at delivering value to shareholders. If one were to suppose that their main purpose is to create a market for millions of shares of new stock, then fred's statement would not be inconsistent. It is inconsistent only in context of your limited view on the matter.
who are the "people" you talk about??
"people would assume the player would be like Gateway's"
Who besides the 12 folks that post on this board know EDIG has anything to do with GW? And if what you claim is true, how is that "perception" possibly going to change for a different OEM besides H-P?? Won't the same "people" make the same assumption next time?
"One of the strengths of e.digital is to manufacture their platform incorporating numerous features designed to set them apart."
H-P didn't see it that way. Make all the excuses you want, one of EDIG's big partners that was supposed to think so highly of them has just REJECTED the very core products EDIG has to offer in favor of the competition.
Maybe EDIG figured it didn't have enough shares left on the printer to buy the H-P business with their now famous negative margins. Or can you think of another reason EDIG's partner REJECTED them?
well that is news....
"....after all if they went with edig their unit would be similar to the Gateway."
I thought one of EDIG's touted strengths was the ability to differentiate their player for many different OEM's?? Was that all a lie? And if H-P could not get a EDIG to come up with something sufficiently different from GW, how are they ever going to land anyone else? Won't they have the same problem next time as well?
Were there any issues with the headsets that made H-P reject their partners DAP designs?
Isn't H-P a big "parnter" of EDIG?? Wasn't H-P aware of the EDIG offerings in the DAP area?? Or did they know about it and just decided to pass on EDIG?
Either way, to have your good "partner" slap you in the face like that has got to hurt. I am starting to think the H-P "partnership" was slightly overblown!!!
But hey, there is Musical. Just think, if they repeat past success, that will mean like another $10k in reveune next year for EDIG!!!
I disagree....
"The equator fluff was just oem bait while this one looks like it was developed from the ground up per the request of oems/customers whatever."
The first couple of times they Pr'ed the Eclipse thing may have been OEM bait, now it is pure stock selling bait. How many folks out there do you figure bought shares based on the promised "2 PR's ready to go"??
They had to put something out to cover their butts, so it's Eclipse one more time!!!
As far as the second one, just the same old carrot hung out that will never mean any significant revenue to EDIG.
I guess the monster deals that were supposed to make EDIG profitable LAST year just aren't getting the job done anymore.
well after 3 years, why are they taking "pre-orders"?? Why aren't they SELLING the units??
It would appear that Eclipse is not willing to jump in whole hog on this EDIG device. They sure seem to be hedging with wanting to "pre-sell" before placing any actual units into production. Maybe Eclipse got cold-feet after it took so long for EDIG to re-work the out of spec initial design.
Who knows, maybe NEXT year the annual Eclipse PR will be about units actually SHIPPING!!!
ahhh yes...the third annual Eclipse PR, right on schedule!!! This was great the first two years it was released. Just gets better as the years go by!!!
And EDIG announces "it is developing digital audio products that incorporate the Cornice Storage"?? A lot of others are SELLING while EDIG is developing. Great that EDIG got the 1.8" HDD players out just as everyone else moves to 1".
I am not sure the Nitrus 1.5GB uses the Cornice, but on that unit the download speed is fine. I only use USB 1.1, so the initial load took a couple of minutes. But since then, the adding or deleting of a couple songs here or there does not take long at all. When I download the .88 cent songs from Walmart, it takes about as long to get the license as it does to load the songs on the player.
I don't change the music that often, so download speed has never really been an issue for me.
I picked up a Nitrus 1.5GB for $119 after rebates a couple of weeks back. For my purposes, the form-factor and capacity are perfect. It fits in the pocket and you don't even know it is there. The capacity blows away flashed based players and the form-factor kills the larger HDD players for carrying around, especially during physical activities.
I previously had a larger HDD player for when I wanted a lot of songs and a flash based player for on the go and running. Now the Nitrus does both. Most of the larger HDD players will skip when you jog or during other physical activities, the Nitrus never misses a beat. I have been snowboarding with it for 2 weeks and it worked great. Plus it gets about 16 hrs per charge.
It has a neat synchronization feature that allows for easy updates/swapping out the music and it will automatically check for new firmware. The only thing it is lacking is on-the-fly playlist creation.
If Cornice is going to increase capacity and hold price points, these will be the players to have.
Christmas comes early for the "financiers"……
"The Investors were given registration rights under a Registration Rights Agreement requiring e.Digital to file a registration statement respecting the Common Stock within 30 days following the closing date of the purchase agreement. If the registration statement covering the shares held by the Investors is not filed within the timeframe specified in the Registration Rights Agreement, e.Digital will be obligated to pay liquidated damages to the Investors equal to 1.5% per month of the amount invested by the Investors. In the event that the registration statement is not declared effective by the Securities and Exchange Commission on or before the 120th day following the closing date, then e.Digital will be required to pay additional liquidated damages to the Investors equal to 1% per month of the of the amount invested by the Investors."
$1,277,000 x 1.5% = $19,155 for the first month. The locked in profit wasn’t enough, they had to backdoor them another $20K!!! and counting!!!!
A $20K early Christmas gift as a result of management not doing what they needed to do. Perhaps they were too busy reading Internet stock boards.
A 40 or 50 to 1 reverse split is probably more in line in this case. Why bother with something that puts you right on the edge?? Go to all that bother and then a little drop takes you back under $5 anyway? Go big or don't do it.
The webcast showed they they clearly cannot get there with the revenue they are projecting, the weight of the float is just too overwhelming for a $1M-$2M a quarter company.
Serious question, if they did do this reverse split, does the authorized outstanding shares stay at 200M?? They would then have the added advantage of being able to print millions and millions and millions of more shares without getting shareholder approval? Anyone know?
Another questions from the webcast. Is "working with OEMs on PRs" the 2003 equivalent to "stacks of PRs on my desk"? And are all the unnamed, super-secret deals the 2003 equivalent of "double digit OEMs". Did they just replay the tape from 2 years ago?
If what you claim is true, then it is much worse than I thought.
"The player only went on sale a few weeks ago and I'd bet that EDIG won't realize licensing fees until product is sold by gateway to the end user."
So what you are saying is all the reports of shipments selling out, overwhelming demand, the HSN selling thousands at a pop, are all wrong?? Overblown by enthusiastic longs??
I also find it interesting that you put forth the idea that EDIG doesn't get paid until the end user purchases, sounds suspiciously like a "consignment" business model, but if you say so. So reports of shipments selling out were not to "end users"? Interesting.
But maybe you are right, maybe there have been very few sales and EDIG negotiated such horrible terms that they do not get paid upfront by the OEM, do not get paid when a unit is produced, and do not get paid upon delivery to GW. So where does that leave us? With next quarters numbers!!
Next Q's numbers paint an even worse picture based on your assertions. A little math:
Guidance = $1.5M-$2.0M
Revenue from the F-T contract due next Q= $1M
Remaining revenue from all other sources, including GW= $.5-$1M
So the $1M from F-T abortion, which they have been projecting for "next quarter" for a number of years now, makes up the bulk of the revenue next Q and at the moment is still a one time shot and probably a loss leader at that. The remaining $.5-$1M in revenue puts it in the same neighborhood as this Q's $700k, not much progress That means the APS follow on orders, the HUGE digeplayer refurbish monies, GW revenue, and all new business is then expected to add only $150K to $300K a month for next Q?? The numbers just don't add, at least not to any significant, repeatable revenue source.
In other words, take out the F-T revenue, which EDIG has worked for like 3 years to earn, and all the new developments combined are going to generate less revenue per month than a eBay Power Seller brings in.
And if they are off on their guidance by a factor of 10X+ like they were last time, you have a real disaster on your hands.
I found the whole webcast amusing. Any time Todd is reduced to posting "This Rocks", you know ther was nothing there.
so apparently the revenue potential of the GW deal was overblown by many here on this board. With the volume numbers that were estimated, it would seem that the per units revenue to EDIG is next to nothing. Otherwise this number would be much higher. And even the pump number for next quarter clearly reflects very little potential for this deal.
I was half-way hoping that this wasn't going to be just another fluff fest. No I have to go back and complie all those post by the "longs" going on and on about how EDIG would never hold this without concrete news.
But at least we now know why the webcast, it was to kick-off the CES2004 PUMP in grand style!! Is this an EDIG record for earliest ever CES PUMP? Anyone remember?
because like lots of others, she probably finds the total lack of market savvy displayed by so called "long and strong" EDIGGERs humorous and can't help but poke fun at the poor things.
But by all means, keep going. You are really nailing her on this one!!!!!
I think tteddy1, the person who posted the west coast remark, is in fact a staunch EDIG long. Much like yourself there Niz.
If you can't tell that Cass was poking fun at your follow EDIG long, well that doesn't surprise me any more than an EDIG long thinking the market is open longer on the coast.
Do you think the CEO's of Phillips and Sony will be on the call for the announcement of these historic deals?? And since these deals with the powerhouse CE companies is clearly worth hundreds of millions of dollars to EDIG, then there is no way we will see much additional dilution announces at the same time, right?
Because EDIG will take these "unprecedented" deals worth hundreds of millions of dollars and march straight to the a bank and not only borrow enough money at 2% to fund operations for the next 5 years, but with huge contracts like this in hand, signed and done, EDIG will be able to secure enough conventional financing to retire ALL the high interest debt they have outstanding at this point (without issuing shares).
As a matter of fact, with the meteoric ride the stock price is about to take based on these HUGE deals, there is no way that EDIG can be on the hook for more than the 2-3M millions shares required for conversion based on the price the day of the agreement. The only way they could be on the hook for more is if the price was going down from here, right? They certainly are not going to plan on that with these huge deals now signed!!
So the news Thursday, should be the huge deals, registration of no more than the minimum required 2-3M shares, and based on the revenue guaranteed by the huge contracts, conversion of all high interest debt to conventional loans with standard rates from a reputable bank.
If they cannot use these HUGE deals to secure conventional financing and they also register more than the minimum number of shares required, then something doesn't quite add up.
Or you could be wrong I guess.
Actually, you really shouldn't bet on an exact shareprice. The bet should be will the close next Friday be higher or lower than todays close. In you think they are going to have positive, meaningful news, it should be a no brainer for you to take the over. And I'm sure he will be more than happy to take the under.
Otherwise, it's pretty much a sucker bet for the one that names their price first.
well now that is interesting....
"Posted by: lancebps
In reply to: Cassandra who wrote msg# 12869 Date:12/12/2003 8:28:23 AM
Post #of 12972
i just read the recent filings on EDIG,all i
can say is that they better have some real good
news coming to withstand the recent filing or
they will lose half of the .44 i.m.o in the coming months..
the .60 cent slid to .44 was probably the 3 million shares
hitting the market on the pos am filings since it only
had a .45 strike price and there was little room for
margin with them..
THEY BETTER STRIKE UP THE PRESSES...
plus i want to hear if raising the authorised shares
was discussed in this meeting they just had,cant
see that not becoming a issue in next 2-3 months.."
You longs better set this guy straight!! He clearly must have it in for EDIG. He doesn't understand that the filings were requested by large OEMs that are about to sign huge contracts with EDIG. Niz, get over there now!!!
OK, so far this morning the speculation calls for deals with Intel, Samsung, Olympus, and Microsoft. Did I miss any?? You guys must be very excited with those big names being bandied about, even if it is just based on hopes and dreams. I think it is good to set the bar high in these cases.
That way the "financiers" can get those last shares shorted for maximum profit, and the huge disappoint when Intel, Samsung, Olympus, or Microsoft doesn't happen will lead to an even bigger pay off on the other end.
But lets look at facts for just a moment. From the latest death spiral financing agreement:
"e.Digital Corporation ("e.Digital") entered into a Convertible Preferred Stock Purchase Agreement dated as of November 19, 2003 with a group of institutional and accredited investors (collectively, the "Investors") for the sale by e.Digital to the Investors of 12,770 shares of Series E Convertible Preferred Stock (the "Series E Stock") at a per share price of $100, for an aggregate amount of $1,277,000 The transaction was completed on November 19, 2003."
As part of that agreement, EDIG is required to file a registration statement for the millions and millions of shares they will need to print up.
"The Investors were given registration rights under a Registration Rights Agreement requiring e.Digital to file a registration statement respecting the Common Stock within 30 days following the closing date of the purchase agreement. If the registration statement covering the shares held by the Investors is not filed within the timeframe specified in the Registration Rights Agreement, e.Digital will be obligated to pay liquidated damages to the Investors equal to 1.5% per month of the amount invested by the Investors. In the event that the registration statement is not declared effective by the Securities and Exchange Commission on or before the 120th day following the closing date, then e.Digital will be required to pay additional liquidated damages to the Investors equal to 1% per month of the of the amount invested by the Investors."
They have 30 days from the date they signed the agreement to file a registration statement. They signed the agreement on 11-29 . Well lets see, hmm, that would mean they need to file the registration statement by when?? Oh yeah, they have to have it done by 12-19!!!!! Of course they could always not do it and start paying the liquidated damages.
And let's not forget that starting next month they are supposed to finally start paying on the $750K loan that they have never made cash payment on. Anyone smell a couple MILLION SHARES coming to make that little problem go away??
I must say though, that if you believe what is being pumped about the web cast, the timing is pretty incredible. For as many years as the "big deal" carrots have been floated, and re-floated, and re-floated, to have one finally come through and EDIG being able to announce it the day before MILLIONS & MILLIONS of SHARES come flying off the printer is well, very fortunate from them.
Just think of the utter disappointment if they are just talking about the MILLIONS & MILLIONS of SHARES and not Intel, Samsung, Olympus, and Microsoft.
But you can learn so much by looking back, for example did you know that EDIG, over the last year not only hasn't paid a dime toward the $750k loan or interest, they still haven't paid APL the $80K they have owed them for over a year? So why do you suppose a company that is pumped as having a "low burn rate" and million dollar contracts with huge margins doesn't bother to pay their bills?
If you want to learn even more about this company by looking back, add in the fact that they paid themselves bonuses and you just learned even more. We already knew they used cash to pay themselves bonuses and then had to take a loan from a director at outrageous interest rates to fund inventory, but did you know that in addition, they paid themselves bonuses instead paying the bills?? Would you run your business like that? Would you pay your bills? I think it says a ton about what this company is all about. Hmmm… we have enough money to pay our bills, fund inventory, or pay ourselves a bonus?? We can only do one, so which should we do?? Which would you do?
So you look forward, same as you did on the 4 billion dollar OEMs deals the last time around, clearly there is no lessons to be learned from the past for you. As far as your portfolio, are you really going to make me drag up your years of posts claiming buys at levels many, many times the current level? Or did you forget about those?
So in your mind, are you as excited about the "one, maybe two, rather large deals, the likes of which are unprecedented in the company's history" as you were about the oldie but goodie 4 billion dollar OEM pump? Do you feel these two current carrots are actually as big as those four older carrots? Didn't you have pretty high expectations for those deals back when they were the talk of the boards? And didn't they result in very little to EDIG?
When you compare those non-deals to these non-deals, what exactly do you use to determine which would have been bigger if they ever would have happened? Is it just a gut feel for carrots?
Isn't amazing how the carrots always come right before the truckloads of shares?
ahh.. actually they're good for at least one more thing.....
"It cracks me up that Cassandra throws out the words "Death Spiral", "Toxic", and "Floorless" when discussing the convertible shares E-Digital has issued. Those words are good for the shock value, but that is all."
They are also good for describing the TYPES of financing deals that EDIG completes with their "friendly" financiers. It would seem to me that if you have an issue with those words being used to described the horrible financing deals, you ought to direct your efforts to the management of the company that enter into these deals time and time and time again. Not the BB poster commenting on the deals management freely entered into.
" In reality, E-Digital probably had no other choice than to raise money using this vehicle. Here is my theory of why this happened: "
Well yes, that is what happens when you run a company into the ground over 13 years and burn through $75M+ without ever even getting a whiff of making PENNY ONE in profit. You find your choices rather limited because most conventional money sources understand the complete and utter failure and the company can not demonstrate enough of a future potential to convince conventional sources to lend them dime one. EDIG has to leave a CASH DEPOSIT for their credit cards for crying out loud; of course they had no other choice
"When the previous S-3 for shelf shares application was issued, the registration took longer than expected, and E-Digital management was convinced that there would be enough shares to get through the period of time required for profitability. When the retail and e-tail operations became costly, and capital had to be raised, they were out of shelf shares, and in order to cover the losses, had to take out short terms loans to cover these losses."
So what you are saying is that EDIG management botched and misjudged the registration process, misjudged the amount of capital required to enter the retail CE market, and had no clue as to how and do any type of long term contingency planning. Given the level of incompetence you have detailed here, is there any question as to why they cannot raise money without going into the shareholder pockets?
"Again E-Digital management was convinced that the O-1000 and IFE and F-10 would bring them to profitability quickly, and therefore there was no need for new shelf shares. But the revenues from these products now took much longer than expected, and more capital was required, so they needed another short term solution."
So what you are saying is that they learned absolutely nothing from the prior fumblings and repeated the same mismanagement, misjudgment of the markets, and poor contingency planning. Are you trying to convince us here that not only are they incompetent, they are slow learners as well?
"Obtaining a short term loan was probably out of the question, since anyone making this loan would be subordinate to the first loan, and nobody was willing to be put in that position. The only way to raise capital quickly would be to issue the Series D convertibles, which allow the financers to have a garunteed return in all possible cases. Again the E-Digital management only issued enough Series D shares to get them through the time required for what they were convinced would be profitability, and would no longer require any more capital."
Same mistake yet AGAIN? Wow, why doesn't someone send them a note or something? Help them out!! If you can figure it out, why can't they. I sure hope they learned their lesson this time.
"Again, delays in projects, and higher than expected costs put them in another situation where they required more capital. Since an S-3 registration is time consuming, and they still had the original outstanding loan, they had no other choice than to issue the Series E convertibles. These convertibles also garunteed the investors a return no matter the future share price. E-Digital management probably considers this enough capital to carry them through the period necessary before profitability."
OH NO!! I can’t understand how an intelligent person could make this mistake for what, a FOURTH or FIFTH time? Can't they go to the library and check out a book on capital planning? I am sure they could find a source on the web that would help explain to them what contingency planning is.
"Now it is likely that new shares will be registered with an S-3, both to cover the convertibles, and possibly to have shares on hand if more capital is required.
The current situation could have been avoided by either registering sufficient shares in the previous S-3 to cover the period of time where the company was losing money, or to at least have registered a new S-3 when the $750,000 loan was made, so that new capital would be available in time to pay off this loan. Of course nobody could predict that it would have taken this long to become profitable."
Nobody could have predicted it?? Are you sure about that?? I seem to have some vague recollection of one or two folks making predictions along those lines. Now the fact that you did not listen to them is certainly your choice, but that does not mean it wasn't predicted.
"Hopefully the previous poor capital planning is now behind us, and the company will register enough shares for any unseen future difficult situations."
Well yeah, I mean the learned their lesson after the first time, I mean after the second time, oops- I meant after the third time, errr, fourth ??…..anyway, I'm sure they got it now!!!
"Of course this is all just my theory of what may have happened, and it is always much easier being a Monday morning quarterback."
I was just wondering, did the thought that management has played this exactly how they wanted to at every step of the way ever occur to you. Are you sure they ever even wanted conventional financing? How do you account for the same mistake over and over and over?
Have you ever looked at other companies the same folks are involved with, seen any patterns?
Then I guess it was a good thing that EDIG, in addition to the other aspects of the sweetheart deal, gave the "investors" warrants for MILLIONS of shares that they can claim as a offsetting "long" position. That way, they cannot be accused of "naked" shorting!
And speaking of dilution, if anyone thinks the latest agreements are the only source of dilution coming, think again. The other shoe is about to drop on the 15% Unsecured note for $750k.
In case you don't remember, here is some history from the SEC filings:
On 12-11-2002 EDIG entered into a $750K Unsecured note at 15%, payments on the note were to be $50K/month.
Within days, EDIG defaulted on the loan and entered into a forbearance agreement through 12-31-2002.
On 12-23-2002, the holder of note extended the maturity of the note from 2-11-2004 to 5-31-2005 and reduced monthly payment from $50k to $7500/month. The $50k/month payments are to begin again on 1-31-2004.
NOTE: Default within days and 12 days after the note is issued they are restructuring the deal? Seems odd.
On December 30, 2002, the Company issued 133,223 shares of Common Stock in consideration for all unpaid interest
NOTE: Christmas is still going strong at EDIG!!! 19 days after taking the loan, EDIG is giving it up like the prom queen on prom night!! They gave up 133k shares for 19 days worth the interest on this note??? Go ahead and do the math, at 15% that is in the PENNIES per share.
It does not appear that EDIG has EVER paid anything on this loan other than the Christmas present shares. As of 9-30-2003, accrued interest totaled $84,375
So we can add $84k to the $750k for a total owed of $834K as of 9/30/2003 . By the end of the this year they will have 3 more months of interest due to bring the total owed to around $855k!!!
Undated in the last filing- Company has entered into a additional forbearance agreement with lender deferring any payments through and including 12-31-2003.
Now, many thing here. First, EDIG is due to start the $50k payments next month, little wonder they needed additional financing recently. Remember, in they official SEC filings they told you they could not service this debt with the current or anticipated revenue levels. Also, the $50K payments from next month through 5/2005 barely cover the amount currently owed on the note, not the additional interest that will be incurred over that period.
So as in the past history of this deal, will there be another boatload of shares in the pennies to cover the interest portion to date? Or will they take the route they have used in other deals and issue millions of additional shares to retire the entire note? This would be in addition to the 13% dilution already being discussed.
Of course, one is left to wonder why EDIG cannot, at this point, pay their debts. Where is all the supposed revenue gone? Or where the predictions on revenue and margins slightly overblown?
What exactly would you like me to restrain from? Discussing your inaccurate speculation? Why did you post it if not to discuss?
I see you have now stretched "a couple" to mean "several" and now "a couple" means $10??. OK, if you say. Kind of like when EDIG claims 20% margins and then pretends like they didn't really mean that after all when it turns out to be wrong. I notice you tend to ignore your other claim of "no release of amount". So are you now going to tell us that "no release" really meant "they will be discussing it in private with individual shareholders in a couple of hours from now"?
I didn't "turn" anything onto .10 or .20 cents. I was making the observations that based on past predictions, usually you can divide by at least a factor of ten to be close to the truth of what EDIG will make. Although to be accurate, there are probably more times were you would actually have to MULTIPLE the predictions by a NEGATIVE number to make them accurate.
And while I appreciate your concern, why do you care if I am angry, happy, sad, or melancholy? Does my mood somehow impact your life in any way?
Well yes lots of amusing things, there are all the nifty one-liners you and chwdr mange to zip off when you cannot formulate a coherent response to the business issues being discussed. I especially like your "I know I'm not but what are you" responses.
Of course you don't. But at the same time expect to get called on it. So your story now is that you are claiming this was just your speculation?
"Posted by: murgirl
In reply to: Sentinel who wrote msg# 53824 Date:12/5/2003 3:21:21 PM
Post #of 54221
re royalties with Asian OEM..expect a couple of bucks per unit and no release of amount as they want to be able to negotiate higher fees in the future."
Couple of odd things here. First, usually when someone presents speculation that they just made up out of thin air as a fact, Todd and others on this board are all over them demanding backup and concrete "proof". Apparently they decided to give you a free pass on this one. Or maybe, they just have double standards??
Second, your wild speculation on "no release of amounts", as wrong as you were, is an odd bit to take a wild guess on. I guess you don't know as much about "they" as you think.
Thanks for clearing all that up. I will keep the information handy for reference on future postings of fact.
I couldn’t help but notice you passed on the opportunity to identify the source of your "couple of bucks" information and your apparently incorrect assertion that "no information about amounts will be released"??
What is highly amusing is when certain posters rail on and on about how above board these private disclosures are, but then refuse to identify the individual from the company that is passing the information one to individual investors in private conversations.
Like the in-the-know investors that John claims are more worried about holding their ownership below reporting levels than owning a bigger piece of EDIG, apparently management prefers to operate out of the sunlight. I wonder why.
If true, what management is telling selected shareholders in these one-on-one conversations appear in some cases to be in direct conflict with what is stated in the SEC filings and even in opposition to what you were claiming on this board just a couple of days ago. Did you get your information on a "couple of bucks" from management as well? Is the person that told you there would be "no information on amounts released" involved with EDIG in anyway or was that just your speculation? If you heard this from management, is it the same person who told the other poster something different at a later point or was it someone else?
At the very least, if the comments are accurate, it would appear to show a lack of understanding by that member of management in regards to EDIG's own business dealings. There are clearly factual errors in the statement about the financiers and the structure of the deal with Eclipse. So either the poster is wrong, the member of EDIG management is wrong, or the SEC filings are wrong on those two points. Which do you think it is?
And beside the flat out factual errors, the rest of it raises FD issues that have already been discussed.
Same old stuff, only two years ago......
Huskers Fall at Colorado
Courtesy: NU Sports Information
Release: 11/23/2001
BOULDER, Colo. (Ticker) -- Nebraska's national title hopes collapsed under a Colorado avalanche.
Chris Brown rushed for six touchdowns and 14th-ranked Colorado posted a stunning 62-36 Big 12 Conference victory over the second-ranked Cornhuskers.
Huskers Claim Rose Bowl Bid
Courtesy: NU Sports Information
Release: 12/08/2001
Lincoln -- The Nebraska football team earned a trip to the 2002 Rose Bowl Game presented by AT&T in Pasadena, Calif., to battle the undefeated and No. 1 Miami Hurricanes for the national title on Thursday, Jan. 3, at 7 p.m. on ABC.
Miami Takes Rose Bowl, National Championship
Courtesy: NU Sports Information
Release: 01/03/2002
PASADENA, Calif. (Reuters) - The top ranked Miami Hurricanes capped off a perfect season with a 37-14 win over fourth-ranked Nebraska Cornhuskers in the Rose Bowl on Thursday, giving college football the undisputed national champion it desperately wanted.
Most of your argument is based on an incorrect application of FD……
You repeatedly state that "This doesn't need to be reported anywhere". The FD laws have nothing to do with whether something NEEDS to be reported or not. FD tries to ensure that everyone has access to whatever information IS disclosed.
You also repeatedly post that "This "range" is general enough not to be considered specific information IMO". I don’t see how, all of the ranges cited narrow the numbers down pretty well. More importantly, the ranges are out of line with what one would normally expect for CE goods, especially the GW numbers quoted.
Based on those number ranges, if they are true, a person with any type of business savvy could use them in conjunction with an assessment of the market and share potential to determine a ballpark figure of the proper market capitalization for this company. They would obviously have an advantage in determining the potential of this company over someone who has no knowledge of the royalties/licensing ranges as well as the investor making their decisions based on the industry norms. Clearly the wider the gap with industry norms, the bigger the advantage over the later group.
In addition, the timing of when the different investor groups would know this info is really more of a factor with FD regulations. The investor who got this information in private now has a clear advantage over the investors who are not going to get the information until the financials are filed some time next year.
In addition, murgirl weighed in earlier today by writing the following about the GW royalties "I said a couple of dollars". As a follow up to her post below:
Posted by: murgirl
In reply to: Sentinel who wrote
Date: 12/5/2003 3:21:21 PM
Post # of 54090
re royalties with Asian OEM..expect a couple of bucks per unit and no release of amount as they want to be able to negotiate higher fees in the future.
I would think that everyone can agree that 'high single figure to low two figure range' is substantially different from "a couple of dollars". And while murgirl never claimed her info was from management, you can see there is confusion out there and having the correct answer right from the mouth of management would give that investor an advantage over murgirl in making decisions. The exact situation the FD regs try to eliminate.
And if murgirl’s info did come from management, it puts a whole different sinister spin on things. Perhaps she will cite the source of her info to clear things up. Especially the part where she claims right before the shareholder meeting that there will be "no release of amount as they want to be able to negotiate higher fees in the future" while another is claiming management indeed was releasing info on amounts shortly after the meeting.
Regardless if one believes if the disclosures where proper or not, wouldn't you think by now EDIG management would be going out of their way to avoid even the slightest appearance of anything improper or unprofessional. But clearly it is the same old same old for those guys.
Hey, at least management is bright enough to not waste their money buying EDIG stock on the open market at any price, noy even their bonus money.
"Musical was a joke and b&o hasnt been a significant contributor."
Makes my pont perfectly. Back in the day, these deals were going to be HUGE!! At least as big as GW! 2000+ Circuit City outlets and 3000+ B&O outlets all selling EDIG players. So many a month times each outlet times the huge royalties. All of it pure revenue to EDIG because of the business model. All of it evaporated in the light of day!!! To the point that EDIG doesn't even talk about them anymore and pretends they never happened.
When asked, management couldn't even articulate a coherent response about the Musical situation.
Then Digitalway and their 33% of the world wide mp3 market share was going to be the BIG thing. They already had the connections!! EDIG was going to sit back and collect pure revenue from there efforts. Can you figure out if that was a good deal for them yet?
Musical- was going to be huge, in all the CC stores, pure profit, disappeared.
B&O- was going to be huge, in all the B$O stores, pure profit, amounted to about what a 12 year old selling Yugi-Oh cards on eBay clears in a year.
Digtalway- was going to be huge, 33% of WW market, pure profit, never appeared to disappear.
GW- Is going to be HUGE? But unlike the other deals- EDIG is now going through an intermediary to deal with a power house on the other end. Do you really think EDIG is going to go through a third party (and the required revenue split that wasn't there before) and deal with GW on the other end and end up better than what they got from Musical, B&O, and DW?
What has changed since those prior deals to put EDIG in a better position to extract more money from bigger customer on higher volumes?
EDIG has seen their entire working capital wiped out since then and are at a deficit currently, they have a much higher debt level than when they made those prior deals and are in default, and there are many more competitors out there now. What has happened to give them leverage now? The products were always state-of-the art, cutting edge, right? So what's changed?