What is management really selling?
Let's take a look:
In the fiscal year ending March 2003, EDIG sold approximately 15.1 million shares for a paid-in capital amount of approximately $4.8 million.
During this period the company sold $2.6 million in product and services.
Shares sold: 15.1 million
paid-in capital amount: 4.8 million dollars
sales of product&service: 2.6 million dollars
operating LOSS: 5.8 million dollars
FY ending March 2002:
Shares sold: 2.4 million
paid-in capital amount: 1.8 million dollars
sales of product&service: 2.4 million dollars
operating LOSS: 5.8 million dollars
FY ending March 2001
Shares sold: 3.9 million
paid-in capital amount: 7.9 million dollars
sales of product&service: 1.8 dollars
operating LOSS: 3.8 million dollars
Over the past three fiscal years e.Digital has sold approximately 21.4 million shares of stock for 14.5 million dollars (or an ASP of $0.67 per share) and in return the company has generated a 15.4 million dollar loss from operations on 6.8 million dollars from the sale of products and services.
So for every $1.00 management generates from the sale of stock to finance operations (ie their paycheck), management LOSES $1.06 for the company.
Put another way, for each dollar of dilution, management loses an additional $1.06. Impressive. True visionaries.
Again, what is it exactly that e.Digital management is selling?
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