e.Digital Corporation (fka EDIG)

[Cassandra]

Although they "currently" lean primarily on winning law suits against those who have infringed, they do not rely on it exclusively.

That is false. e.Digital has never won a patent infringement lawsuit. In fact, it has never fully litigated one. Under Handal & Associates guidance, e.Digital follows the patent troll business plan of filing numerous frivolous lawsuits and then offer to settle for FAR less than nuisance value -- a pure patent troll strategy.

Three were 22 licenses (settlements) in FYE 3/31/14 totaling $2,045,385 or an average of $93,000 each. One of these was Apple. If one were to subtract Apple and the other 2 or 3 biggest settlements from the total, the others would be miniscule.

The only other source of income for the company is from its very antiquated eVU product, which loses more money than it generates. In FYE 3/31/14, eVU products and services brought in $253,373 but cost $307,737 in direct cost of revenue not counting all of the indirect allocations. The 10-K states that this business continues to decline and and is expected to continue to drop. In other words, it's NOT going to get any better and is expected to get worse.

Even a semi competent CEO would have cut off this growing cash drain long ago. A couple of years ago I suggested selling off the eVU business to another provider of portable IFE devices. That opportunity has long has passed.

Simply closing the division, writing off the small inventory that remains and laying off personnel employed for customer service, device repair and content uploads would immediately streamline and improve the company's operations. Why hasn't Fred Falk taken this action instead of allowing more operational drainage?