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Well...
"The total cost of this refinancing was an outlandish $80,000 in stock.
I'm sorry, I just don't see this as a bad thing.'
I would venture most investors would focus more on the fact that EDIG can not pay thier bills than on the amount they had to pay to avoid paying their bills. But even using your $80,000 figure as their cost, they just paid 9% of the principle amount to avoid paying their bills. I bet if you add up all the "special payments" and such EDIG has made over the years to keep extending these notes, they have probably have paid the note holders back many times over. But because of the poor business folks they are, they made all those payments and still owe most of the principle. It is so poorly managed that it almost makes you think they are doing that on purpose and do not want to retire the debt.
Plus I think you must have missed the part about them issuing 7.5M additional shares at .08/share to pay off half of the other loan. Buy issuing such highly discounted shares to pay their bills; they essentially took that money right out of the shareholders pockets. Again, in that case, most investors would focus on the fact that EDIG can not pay their bills and had to resort to diluting the stock holder's equity versus the total dollar amount being a "bargain".
There is simply no why for this not to be a "bad thing".
Actaully, they have paid for the units, but....
"Maycom was paid progress payments with final payments made in full for the order by the Company, and directly by digEcor, in March 2006. Maycom has failed to timely deliver the order resulting in this complaint. We have received recent verbal and written assurances from Maycom that they intend to perform under the purchase order but there can be no assurance thereof or the impact this may have on the litigation.
In August 2006 we filed a motion seeking to amend our response and counterclaims including seeking an injunction against digEcor from manufacturing and selling their planned next generation player based on alleged improper use of the Company's confidential information.
We are unable to determine at this time the impact this complaint and matter may have on our financial position or results of operations if Maycom does not timely fulfill its obligation and we are unable to deliver product to digEcor in a timely manner. We have not recognized any revenue or costs related to products associated with this order. We intend to seek restitution from Maycom for any damages we may incur from this matter and the digEcor complaint though recovery is not assured. At March 31, 2006 we recorded an impairment charge of $603,750 to expense as cost of revenues the value of deposits made to Maycom that became impaired as a result of Maycom's nonperformance. "
you can see from the above, that just because the units were prepaid does not mean digEcor has to take them. If they don't, EDIG is on the hook to refund the money. That is why EDIG took a charge to cover the liability on what digEcor has paid to date.
what would be the economic impact of that?
"As previously stated, delivery of this order is not assured nor can there be assurance that digEcor will accept delivery pursuant to the terms of the order."
can EDIG afford to get stuck with these players? If these are digEplayer branded units and digEcor does not take them. What are EDIG's options?
Given the current litigation, if I was digEcor and had no obligation to take these units, I would not. EDIG eating these units gives them that much less resources to pursue the litigation.
funny, they are paying them with stock to buy the stock.
Progress on the XT manufacturing & Shipping
SPRINGVILLE, Utah - May 25, 2006 - In an informal interview today, Brent Wood, digEcor's CEO said that there was some confusion on when the XT version of the digEplayer would be available for shipment to customers. He revealed that the main computer boards were on schedule at Wolf Electronix. Wolf will use its existing multiple board assembly lines to product the needed boards for production.
Mr. Wood said that when e.digital reduced its staff last fall, repair of the 5500 model was turned over to digEcor, who at that time hired staff and established a repair department. At that same time, e.digital sold its inventory of repair parts to digEcor and also directed digEcor to obtain its future repair parts from companies such as Maycom.
Mr. Wood said that its final assembly line for the XT will actually be done by moving its existing 5500 repair department to another area of its building (scheduled for the first week of June) and adding additional staff and equipment. The initial assembly work will be under the direction of a Triad engineer who has 40 years experience with new product manufacturing for HP. Triad has approximately 125 hardware and software people available to help on a contract basis.
With Triad's combined employee experience, they have brought over 250 new products to market and have used that same experience to develop the XT product. They were given the goal of designing all the best features of the 5500 into the XT (without the use of e.digital IP) and add new features and the latest technology available to insure that the XT will be the best player on the market. A further goal was to make the XT design match the needs for digEcor's future embedded system. They have met and exceeded those goals and digEcor will meet its goal of having players in stock by mid to late summer.
Well...
"I am sure Mezzo wants bad quality or poor quality. That'll impress their customers!"
correct me if I am wrong here, but isn't that the exact reason WENCOR is now suing EDIG? Because they did not want "bad quality or poor quality" and that is what they claim EDIG gave them?
What changed? Based on EDIG's past history, probably a couple million free shares to the principles involved in exchange for a vague PR which will never generate a single dime of profit for EDIG..
This is the typical dribble from EDIG, devoid of commitments, projections, or anything that can possibly be construed as a solid business deal. A new no-name business partner that will end up exactly the same as all the rest.
What's changed for Mezzo? What has changed for EDIG? Answer: nothing at all.
hey, I thought one of the things that was hyped about EDIG was their ability to "oversee" production for end customers and provide a complete "turn key" solution.
From what they write in the 8K, EDIG has no clue as to what is going on and someone from digecor had to travel to Maycom and provide the role that had been previously hyped as an EDIG strength.
Typical.
they fire up the boiler rooms for a little pop so the "friendlies" (including some of the directors) can get their next fix of shares priced about half the going rate and you jump up and down that "some good happens"?
You have a funny perspective of what is "good" for the common shareholder. Ten's of million of new shares in additional dilution rammed down shareholder throats at the same time "friends and insiders" reward themselves with shares below market, and that is "good"? Do you understand the impact the dilution has on the poor sap stuck many dollars below their break even? Do you think insiders that only buy at a discount to market is a good thing? Do you think triggering the repricing of all those other financing deals is a good thing?
" Good luck to all those believers still holding on."
If they are still holding on faith, they never had a chance to begin with.
For the entire quarter EDIG sold nothing but spare parts for units already in serivce?
"Cost of sales includes manufacturing costs for products sold, operation costs associated with product support and other costs associated with the delivery of our engineering support and services. Cost of sales for the three months ended December 31, 2005 consisted of $105,550 of product costs primarily related to spare parts used for the in-flight entertainment units. Cost of sales for the three months ended December 31, 2004 consisted of $969,896 of product costs and $10,796 of service costs, consisting mostly of research and development labor funded in part by OEM development agreements. Although we do not anticipate any significant future contract losses, we cannot guarantee that we can maintain positive gross margins in the future or with future customers.
Gross profit for the third quarter of fiscal 2006 was $9,146 compared to a gross profit of $438,236 for the third quarter of fiscal 2005. Gross profit as a percent of sales for the third quarter of fiscal 2006 was 8% compared to a gross profit as a percent of sales of 31% for the same period last year. The decrease in gross profit is related to the lower margins on the sale of in-flight entertainment spare parts. At the present time, warranty costs are not significant. "
What do these guys get paid for? For three enitre months the only time EDIG sold anything is when someone else picked up the phone and called EDIG to say "we need replacement parts"? The entire sum of EDIG's own efforts is ZERO for the whole Q!!!
jtdiii...are you not aware of the history of this company and the churn of executives that has been fairly consistent over the last few years? If you are aware of the history, then you know it is not much of a stretch to state it will probably happen again. If you are not aware of the history a little research might be in order. I am some here could list all the "saviors" that have come and gone without having the slightest impact.
Of course there is the possibility that you are aware of the recent history but have decided to simply ignore it because it makes you feel better.
jtdiii...don't you think that if an officer of EDIG is so completely stupid that they tell these types of things to a person know to repost the conversations on the net, that the real problem is with that officer? The issue is not what resqjuc happens to do with those words, but that they were put out there to begin with.
The other possibility is that the conversation was completely made up or otherwise embellished, which again means the problem is with the original poster, not what someone else might do with that post.
As sad resqjuc may be, don't you find the person that felt compelled to utter those words or someone that makes them up much higher on the "sad little man" scale?
The whole symptom vs problem issue.
Have you noticed how every EDIG product has been touted as having "military applications"; yet there has never been a single military deployment of an EDIG product?
Why do you think that is? Do you think it has anything to do with the fact that the old "military" pump really plays well with the typical 80 yr old marks the EDIG boiler rooms tend to after to sell their 100's of millions of shares?
Or do you think it is that EDIG management is so inept that they can not close a single deal with the "military" despite about a decade of trying?
Dish goes with Archos, not EDIG.
Like the video iPod, the PocketDish devices (www.pocketdish.com) can store music, video and digital photos. Two of the three models have larger screens than the iPod, and all of them can store and play any movie, TV show or sporting event that has been saved on a Dish receiver with recording capability.
The Dish portables connect directly to the receiver, and all of the control takes place on the TV screen. You don't have to connect to a computer to get the video content, and you don't need a high-speed Internet connection.
The devices are manufactured by Archos, a French company.
the better prodcut always wins...
"Reality proves the better product does not always win ..."
Really? You are not going to roll out the old Beta vs VHS crap to make this point are you? The better product always wins, the better product is the one that does what the consumer wants at a price the consumer is willing to pay for it. If folks want porn and VHS gives them porn at the right price, VHS was the better product, period. If you have the best picture quality and folks are willing to sacrifice picture quality to get the content they want, you can not lay claim to a "better product" based on criteria the consumers do not use when making their purchase.
If folks wanted a simple scrolling interface rather than some Voice Nav BS and are willing to pay the asking price, then guess which is the better product? Remember the EDIG player that could not even play the tracks in album, order? Talk about an inferior tech and product.
You tell yourself it is a better tech because that is what you believed and you gave away large portions of your money because of it. By every single objective measurable know to man, it is not a better tech. It is not even a blip on the radar.
And on the only measure that even really matters, profit generated, it beyond a dismal failure as a tech.
Of course you believe whatever they tell you, that is what you do.
"I don't believe its a lie ..."
and just for the heck of it, how much are you down on this investment?
If EDIG is in tight with all the players and has the valuable tech, why do you think they have had 17 years of staggering losses to show for it? Is management so completely incompetent that they can not leverage such great tech and all those partnerships into a single dime of profit?
If the tech is all it is touted to be and those great partnerships were 1/10th of what was being claimed, EDIG would have been in the black a decade ago.
But they are not, so management is incompetent, the tech isn't what is touted, or the partnerships were not what was being pumped?
Of course it could be all three.
jo....how could you have been so wrong about this:
"Cass, that is horsepukey! They are in talks at this time with clients for an embedded system. I have contacted Wencor and edig about this and news will be forthcoming about contracts in due time. Will you leave the boards for good if they announce a contract for the embedded system? I sure hope so. Joe"
What was your source for the claim you made about edig having an embedded contract "forthcoming" and how could they have been so wrong?
What is your source telling you now that everyone knows edig has nothing to do with the embedded system? How did it go from a contract "forthcoming" to no involvement?
you could always try and state your differing opinion instead of crying about getting someone else'e post removed. Tell us how it really is then. I will even expound for you:
"1. EDIG adds absolutely no value to the process/product and just adds an unnecessary additional layer to the entire process."
EDIG has been selling these things for what? Two years now? And with all those airlines and all those thousands of players sold, they never once managed to cover their extremely low burn rate. Why? Because they do not add enough value in the process to extract enough economic value from the process to generate enough margins to cover their extremely low burn rate. Not opinion or bashing; statement of fact backed by the losses on file with the SEC.
"3. They are tired of being associated with as stock selling scam."
EDIG's most successful product for 15 years has been new shares of stock. That is how they pay the bills and that is how they pay themselves and friends. It also directly correlates to my previous point #2 which even you had to admit is valid. If EDIG was a valid ongoing business concern, they would not have to resort to the special "financing" and "upfront payments". Most large companies like WENCOR will have minimum standards for suppliers on things like working capital available, profitability, and the like. If EDIG does not meet the WENCOR standards (and I can't imagine they would); then it is not a stretch to think WENCOR is tired of the drama.
"4. EDIG does not seem capable of hitting any type of steady cadence on the production (probably related to point #2). There were several reports of trials that had problems because of delays and even EDIG has missed some of their own "expects to ship" projections by entire quarters. Potential and current customers were probably less than impressed."
From EDIG's own statements and filings they have "expected" and "projected" many things in quarters that either got pushed back or more than likely never happened at all. Public statements have alluded to the fact that their were issues with the delivery of units on some of the tests. Do you think it is a stretch to think WENCOR would not be happy with that? Trying to put your best foot forward for a potential customer only to be torpedoed with late deliveries would not make me happy.
"5. Boyer didn't know any better, WENCOR realizes the folks at EDIG are a bunch of hacks. "
The demands of an individual that has a seed of an idea are probably a little different from the requirements of a large multinational corporation that understands what it takes to survive in their particular area of expertise. I have seen nothing form the EDIG team that would be very impressive to folks who have any business acumen at all.
"6. WENCOR understands that EDIG is basically reselling a bunch of off the shelf parts from other folks and figures they can do that themselves."
The fact that WENCOR cut EDIG out of the digesystem completely validates this statement 100%. Unless WENCOR stole the proprietary, patented EDIG tech, they are doing it on their own with off the shelf components. Do you see any other way they could be doing it?
well, just off the top of my head...
"why wencor would want edig out of the picture."
1. EDIG adds absolutely no value to the process/product and just adds an unnecessary additional layer to the entire process.
2. Because of their extraordinarily poor financial condition, running the orders through EDIG requires WENCOR to make large upfront deposits to secure the production. They probably are not used to that, don't like having to do it and have better use for their capital.
3. They are tired of being associated with as stock selling scam.
4. EDIG does not seem capable of hitting any type of steady cadence on the production (probably related to point #2). There were several reports of trials that had problems because of delays and even EDIG has missed some of their own "expects to ship" projections by entire quarters. Potential and current customers were probably less than impressed.
5. Boyer didn't know any better, WENCOR realizes the folks at EDIG are a bunch of hacks.
6. WENCOR understands that EDIG is basically reselling a bunch of off the shelf parts from other folks and figures they can do that themselves.
EDIG a day late and dollar short to the health care scene:
http://www.detnews.com/2005/health/0508/18/C01-283411.htm
but they probably figured it was an obscure enough market that they could get some pumpage out of it for a bit.
$950K is the 6th worst quarter of the last 9 quarters and means they will probably have a loss in the $700K range for the quarter.
All those airlines and ten's of thousands of players sold and the net result is the same-old-same-old.
just brutal....
it is pretty bad when this is the best they can come up with:
“Product definition is still under review, but at least for the balance of 2005, I believe that the current version of the digEplayer will be marketed and offered for sale to our customers"
doesn't exactly sound like the digeplayer is the cornerstone of their IFE plans.
That's worth another 100M shares for the boys to continue to get fat off of, isn't it?
aren't you the same guy who called a double from .21 back in April? Has there ever been anyone that has been more wrong about this stock than you?
well that begs the question...
"Pellegrini/IMS got no where with the PEA Air Sahara? LOL They were toast on this product and they knew it."
why would WENCOR, which has been previously held up as a great organization with vision suddenly become stupid enough to pay good money for products that "got no where" and where "toast". Doesn't make any business sense.
Why not just let them wither on the vine and die? The only scenario to buy an inferior product that makes sense is if they had a bunch of locked-up contracts, which you have pointed out they don't.
Buy a whole company to get their people? Especially someone that "struck out" previously? WENCOR just spent how long hiring folks for this area? Nope, WENCOR saw something there that they did not have and buying the company lock, stock, and barrel was a cheaper/better solution then developing with EDIG.
the truth is that if EDIG and their offerings where anywere close to the hype, there would have been no need to go out and pay for IMS and their products.
This part sums it up....
"CUSTOMERS
Our revenues result from the sale of products, product royalties, fees from engineering services, order fulfillment, technical support services, warranty services and/or design services. In some cases, we rely on outside subcontractors to perform services including manufacturing, testing and certification, industrial design, and assembly.
We have revenue-producing contracts or revenue-producing licensing and marketing arrangements with the following customers:
APS/WENCOR - We licensed our DVAP technology to APS and customized it for use in their branded portable IFE device known as the digEplayers 5500(TM) for Alaska Airlines. This portable IFE product has since and continues to be marketed and sold to other airlines by APS/Wencor. We provide product to APS/Wencor pursuant to license and supply agreement.
BANG & OLUFSEN - We licensed technology to Bang & Olufsen for use in their branded digital audio player products. The first product developed under our licensing agreement (the BeoSound 2 portable MP3 player) reached the retail market in June 2002. Bang & Olufsen sells their branded products, including the BeoSound 2, through exclusive retail stores worldwide. "
No other revenue prodcuing contracts other than APS FOR THE DIGEPLAYER ONLY and the B&O from years ago that they collect about a dollar a year on.
100,000,000 new shares to keep the scam going....
"2. To approve an amendment to the Company's Certificate of Incorporation to increase the number of shares of common stock, $.001 par value, that the Company is authorized to issue from 200,000,000 to 300,000,000"
that ought to be good for at least a couple more year of the cons getting fat as pigs at the expense of the slaughtered sheep. On the other hand, the sheep don't have to keep giving them money, but they will.
Hey did you sheep ever think about the fact that you are actually helping them pull this off by refusing to sell you nearly worthless shares and effectively reducing the float?
easiest one of all to answer....
"why have no insiders bought stock?"
because, they more than anyone on these boards, more than anyone on this planet, understand the inner working of EDIG, it's prospects, and what the potential happens to be.
They are the most in the know and they have expressed their level of confidence with their wallets. It is ZERO!!
Outrageous? $70k over 9 months in non-WNCOR revenue from all the other HUGE projects. Kino, Gateway, billion dollar OEM, Kiosks and all the other things things they are working on on you don't think $70K in revenue for all that isn't outragous?
EDIG gets revenue by using stock holder funds to pay $2 for a prodcut and than turns around and sell it for a $1.
Even in your kool aide induced haze you can read the financials and see that.
But just keep buying slick, you'll show us all someday!!!!
now you are just trying to be funny, right?
98% of their revenue comes from WENCOR. That leaves about $70K in total from all other sources. By the time you back out all the huge development payments from the KINO OEM's, and the ton of money they must have received for developing the Fusion pvr, there is nothing left.
Don't forget that EDIG's tech is so highly sought after that they demand and receive their payments up front. I mean EDIG has so many things going and are getting paid for all of it, right? You can only split that $70K so many ways.
a sale requires two parts, one party provides something and the second party PAYS for it in some form or fashion.
"were able to sale Gateway a modified O1000!"
it isn't really a "sale" if you do not get paid for it. And when you are giving it for free and they still don't want it, it really isn't a "sale".
and by the way...
"However, it does not appear logical to me that many of eDigital's clients were simply using eDigital's PR machine and waiting for a better product to appear on the horizon as the answer. "
You are just ignoring reality here. F-T went on to sell a different player, Musical went on to sell other players, TGE sells other players. Gateway replaced the EDIG player. Most of EDIG's "clients" in fact move on without EDIG exactly as I describe.
you missed my point...
"However, it does not appear logical to me that many of eDigital's clients were simply using eDigital's PR machine and waiting for a better product to appear on the horizon as the answer."
I did not mean the "clients" were "using" the "EDIG PR machine". I meant they where willing to take advantage of the fact that EDIG was only interested in putting out PR's to sell stock. And since EDIG is willing to subsidize products to get those PR's, they went along for a bit.
"This would be a huge waste of our client's financial and staffing resources. Not to mention their reputation."
Not really, having a PR hungry OTC company subsidize things and sell them to you below cost is a waste of resources?? The reputation bit is valid, and probably explains why there were no reorders on most of what EDIG has ever produced. Even for free, companies ran after the initial go around in fear of harming their rep.
Well, since you seem to be afraid to step up to the plate and actually answer a question, I am more than happy to help you out.
What did you think F-T was thinking when they strung EDIG along?
F-T thought they would let PR focused EDIG use shareholders funds to develop them a player at a loss until they could get a better system developed in house.
What do you think GW was thinking when they allowed EDIG to supply players for a whole 60 days before dumping them?
GW thought they would let PR focused EDIG use shareholders funds to sell them players at a loss until they could get a better system developed in house or using someone else (a real company, not an OTC shame)..
Why do you suppose the follow on orders for the Disney headsets never came?
Disney thought they would let PR focused EDIG use shareholders funds to sell them headsets at a loss until they could get a better system developed in house or using someone else (a real company, not an OTC shame)..
Why do you think B&O dumped EDIG?
B&O thought they would let PR focused EDIG use shareholders funds to sell them players at a loss until they could get a better system developed in house or using someone else (a real company, not an OTC shame)..
Why do you think Musical never paid EDIG anything?
EDIG did the work for free in exchange for Musical allowing them to issue a PR which they could use to sell stock to less than savvy shareholders. Musical thought they would let PR focused EDIG use shareholders funds to sell them players at a loss until they could get a better system developed in house or using someone else (a real company, not an OTC shame).
What was TGE thinking?
TGE thought they would let PR focused EDIG use shareholders funds to sell them players at a loss until they could get a better system developed in house or using someone else (a real company, not an OTC shame)..
Where did the MILLION players go?
It was all a lie.
Why do you think that with all those airlines signed and all those digeplayers sold EDIG is still bleeding red ink like a stuck pig?
EDIG does not add enough value to the development, production, and licensing process to allow them to extract a margin large enough to cover even their extremely low overhead.
Why do you think EDIG can't get enough margins from WENCOR on all those thousands of units to even cover their extremely low overhead, let alone make a profit?
Again, EDIG does not add enough value to the process. Furthermore, EDIG does not care if they make a profit on any product they sell because their real money maker is selling stock to the faithful. Selling stock is the main focus of this company, it has been for years.
Can't wait to see your answers.
What company on the verge of exploding puts a part-timer in place as "chief accounting officer"?
"Robert Putnam, the company’s senior vice president, will act as the interim chief accounting officer until a successor to Ms. Warden can be appointed.
The guy is already a part-timer, and now he is in charge of saying "expects" and the money? Doesn't sound like they "expect" the "chief accounting officer" will have much to do anytime soon.
A part-timer holding two key management positions? Yeah, this company is on the up & up.
Like all other companies that have ever done business with EDIG, WENCOR probably thought they would let PR focused EDIG use shareholders funds to sell them players at a loss on the small 1000 units orders until they could can get a better system developed in house or using someone else (a real company, not an OTC shame).
What did you think F-T was thinking when they strung EDIG along? What do you think GW was thinking when they allowed EDIG to supply players for a whole 60 days before dumping them? Why do you suppose the follow on orders for the Disney headsets never came? Why do you think B&O dumped EDIG? Why do you think Musical never paid EDIG anything? What was TGE thinking? Where did the MILLION players go?
Why do you think that with all those airlines signed and all those digeplayers sold EDIG is still bleeding red ink like a stuck pig? Why do you think EDIG can't get enough margins from WENCOR on all those thousands of units to even cover their extremely low overhead, let alone make a profit?
What did happen to the "million" TGE devices? How does a company get away with stating they expect to ship a MILLION devices over a period of time and end up with ZERO?? 100% and a MILLION units off target??
HH...you have been told.
"When the news that edig is not involved with the embedded player finally comes out. Did the management at edig have a legal duty to tell shareholders of the news when it happened."
When Wencor announced the digesystem they clearly stated it was LINUX BASED. EDIG does not have a responsibility to actively inform they are not in a product when Wenocr themselves announced it was a LINUX based product.
If someone allowed other on various chat boards to convince them to discount the Wencor announcment and not take it at face value, that's their bad.
Now can EDIG management dodge the direct question as to whether or not they are involved, and give vague responses like they have instead of admitting they were not involved? I don't know, maybe legally they can find a way to cover it, but clearly doing so is about as sleazy as it gets.
Is this different from when he was going to stop posting a couple of months ago?
Clearly the LL persona has out lived its usefulness and Billy made several mistakes that prevent him from effectively playing his assigned role going forward.
But rest assured he is not going anywhere, he will continue to post under one of his other names and try and morph one of his other characters into the LL current role.
He is in way to deep and has lost way too much money to walk away now.
well, you got 2 out of 3 anyway....
"this company has good technology, no money and absolute liars running the company."
you need to come to grips with the fact that their tech is worthless. Their tech has prodcued a bunch of MP3 players they had to be dumped at staggering losses and an IFE player they sell 10 units at a time to 3rd world airlines.
But the biggest point you are missing is that the "liars" will always be running this company and their will never be any money in this company.
Sure, they may make some moves to give the appearance of changing things now and then, but the same old folks will be pulling the strings behind the scenes. And those folks will continue sucking every penny out of this company until the bitter end.
Don’t be fooled into thinking "if only someone else was in charge"; because it will never happen. Woody and the boys will always call the shots no matter what Jr. College flunky they give the title to.
To sum, the tech is worthless, the "liars" will always run the company, and they will never stop sucking every penny out of this company.