e.Digital Corporation (fka EDIG)

[Cassandra]

sdr: Your information is massively incorrect or an outright lie.

On 2/3/00, the SAME day the NASDAQ application was announced, Fred Falk, Robert Putnam and Renee Warden exercised options at $0.08 (Renee's were at 0.10) and sold them on the open market for $12+, netting millions in personal profits. Fred Falk's profits alone were about $3.3 million.

Fred did exercise some more 8-cent options in the fall not long before the NASDAQ rejection was announced, which could have triggered AMT, but it would pale in comparison to his gain earlier in the year and he can use that AMT as a tax credit when he disposes of those shares.

RP did not exercise any more options until June 2003 when he exercised options for 500,000 shares at $0.10.

You are also incorrect about the SEC not allowing the sale of shares at more than a 7% discount. The Diaz restricted share sale occurred on 8/2/02, as EDIG reported to the SEC, at a 45%discount to the market. Additionally, several of the sales of shelf shares were at discounts in the 20% range.

Are you claiming that e.Digital broke the law in those cases or lied to the SEC about the date of the Diaz sale?