e.Digital Corporation (fka EDIG)

[richardosborne]

DABOSS...That should be a minimum amount of gross margin.
If they were going retail through CC, Best Buy, etc, they would be selling to them at approximately 50% of the retail price. That portion and the margin we would have made anyway makes it very attractive.

The one down side is volume. The set up is absorbed by fewer units and until we reach economic order quantities, the margins will be lower than we would eventually expect.