e.Digital Corporation (fka EDIG)

[Cassandra]

EDIG relies exclusively on lawsuit settlements to survive. It loses money on its antiquated eVU product and has never shown the ability to sell licenses of its patented technolody.

If not for the patent troll business plan in which EDIG files patent infringement lawsuits and settles them for far less than the cost of defending them, e.Digital would have been out of business a long time ago.

What EDIG CEO Fred Falk does not seem to understand is that a business plan based on patent lawsuit litigation is not attractive to investors unless the company shares the spoils of its litigation in the form of cash dividends from the settlements.

e.Digital files only nuisance IP lawsuits. The settlements are split between the law firm and the company. The company's proceeds are held to assure the payment of the CEO's salary and perquisite package as well as other operating expenses.

EDIG shareholders, who are the owners of the company, have never received any benefit from lawsuit settlements in the form of dividends. In fact, the share price always decreased when the results of the settlements became known.