e.Digital Corporation (fka EDIG)

[Cassandra]

RO: We actually agree on this. I see no valid reason why e.Digital does not let shareholders know how the money flows between the entities, especially who pays DW, APS or EDIG.

The only reason I can think of is that they may think that their ambiguous statements about "royalties of up to several hundred dollars per unit" give shareholders a more favorable impression than would reality.

It's also unfortunate that extent of exclusivity on each party is not known. You want to know if EDIG is free to contact other airlines or must always go through APS. From what FF stated in the webcast, APS fully owns the design of this device and e.Digital owns MicroOS. Therefore, it would appear that EDIG can not independently market this particular design/device IMO.

It is unknown if the agreement prohibits e.Digital from designing and marketing its own competing device. That's a sticky question anyway since it would likely discourage other entrepreneurial companies from coming to e.Digital to help design and develop innovative products if e.Digital were to take a customer's concept and go into direct competition with the customer. IMO, it would be a bad idea, whether or not the agreement prohibits it.

The more relevant question is whether or not APS is free to bypass e.Digital and go directly to Digitalway or other manufacturers for future orders. Hopefully e.Digital would not have agreed to that, but it's certainly possible.

If I were an EDIG long, I would insist that the company reveal the answers to the above issues. Actual dollar figures are not necessary, but the financial flow and exclusivity restrictions should be revealed.