e.Digital Corporation (fka EDIG)

[Cassandra]

sdr: You are incorrect in stating that:
"EDIG and APS have a revenue sharing arrangement on all IFE customers regardless of which one sells the customer."

e.Digital has never claimed that it has a "revenue sharing" agreement of any kind with APS.

APS orders digEplayer units from e.Digital and pays them a per-unit fee (which e.Digital calls a "royalty"). There is no "revenue sharing beyond the intial purchase.

However, according to e.Digital's SEC filings, it will have to pay for the manufacturing costs out of its "royalty" from APS. Therefore this claimed "several hundred dollar" per unit royalty will have the manufacturing costs deducted from it.