e.Digital Corporation (fka EDIG)

[But Anyway]

The webcast provided plenty of grist for the mill but failed to address exactly what the company is doing now (as in today, tomorrow, next week, next month) to stop the hemmoraging.

Okay, so they are making progress in reducing "overhead". Cost cutting measures are a positive but revenues (even when assuming cost of sales of nil) still fail to cover fixed costs.

Again I strongly believe they need to aggressively slash the budget, fire unproductive employees, cut salaries and focus on the one market offering the most promising rewards. The financial situation simply cannot support multiple projects without shareholder's facing increased and accelerating dilution.

Until they make a serious effort to focus their creative capital and financial capital on one, and only one, avenue; this will continue to be Norris', along with his friends and family, engineering hobby shop, financed entirely by the shareholders.

What disturbs me greatest is Jabra Corporation. Once the value of the technology and market's served were identified, management more experienced in taking a company from innovation to market penetration were retained and NCII/EDIG had in their possession (100% owned at one time) a fast growing company. By the time it was taken out for $40 million plus additional incentive-based payments, EDIG's ownership stake was essentially nil.

There are parallel examples with ATCO and PTSC in that a "technology transfer" occurred just prior to the transferee company awarded a government contract based on the underlying technology "escaping" the grip of PTSC and ATCO shareholders.

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