e.Digital Corporation (fka EDIG)

[Neverending]

I thought the below letter accusing .EDIG.of.fraud was a bit much. EDIG always said they "hoped" and "expected" things to work out and unfortunately they did not. EDIG was a speculative investment not a guarantee to be rich. Investors trusted the company to have the judgement to know the value of their technology and how to best exploit it. Sadly that trust was misplaced but honestly god knows how it was even earned in the first place. People choose to trust EDIG even though all of their implied potential for over 17 years failed to lead to any lasting value. Shareholders trusted people at EDIG with bad judgement. That is not fraud. My bolding with my comments in parenthesis below:


"I am a long term shareholder of e.Digital Corporation and found you are the appointed trustee for the bankruptcy filing of company e.Digital Corporation, a Delaware corporation: (db) casbke 3:17-bk-04075. ch7 07/06/2017.

I am contacting you by email because as a shareholder of e.Digital Corporation I find this chapter 7 bankruptcy filing to be illegal and fraudulent. The reasons I suspect fraud was committed are as follows:


1. Company has no significant debt.

(so what they are out of money for continuing operations which cost over $100,000 a month.)

2. A very substantial loss carry forward.

(so what EDIG would need to make money to exploit their carry forward loss. Also, the tax law was amended to prevent another company from buying or merging with EDIG to take advantage of the tax loss carry forward to reduce their own tax liability).

3. Very optimistic forward looking comments in latest Press Releases pointing to the soon to be released annual report.

(NOTHING illegal about optimism. EDIG may have had settlements they hoped and expected to work out that fell through.)

5. The very much unantisipated filing this chapter7 just in front of the never filed annual report.

(EDIG filed when they ran out of money. The timing is irrelevant they were broke!)

6. Positive incoming results from patent applications with the USPTO.

(EDIGs been cranking out their junk patents for years and the results speak for themselves. Patents are not some automatic golden path to riches. Most patents are worth nothing)

7 announcing new board members with their positive considerations just in front of this chapter 7.

(the board members were announced last year not "just" in front of the Chapter 7. I am sure they tried to do something with EDIG it just did not work out).

8. Seemingly positive settlements with patent litigation.

(Only seemingly positive if you do not know what a "nuisance value" settlement is. It is NOT a win and validation of your patents. It is going away money that sued companies pay to avoid the much higher costs of the lawyers.)

All above comments in my opinion!