e.Digital Corporation (fka EDIG)

[But Anyway]

Using your royalties figures of $5 to $12 per unit and only expensing for the monthly $250,000 in "overhead" mentioned in the webcast:

At a $12 royalty e.Digital needs to generate monthly unit orders of 20,800, again just to cover "overhead", if this business model is going to have a chance at success.

At a $5 royalty e.Digital needs to generate monthly unit orders of 50,000, again just to cover "overhead", if this business model is going to have a chance at success.

Annualized unit order volume of 249,600 at $12 per unit and 600,000 at $5 per unit- just to cover the $250,000 per month in "overhead", or, as I understand it, fixed-costs.

EDIG has averaged about $450,000 per month in combined R&D and SG&A costs over the past four quarters. They are going to have to get that figure under $100,000 before we can even begin to think about whether this business model makes any sense.

First and foremost should be a pay cuts among the executive rank (Falk alone was a $13,000 per month drain on the company last year- absolutely unearned, in my opinion) and then make the difficult decision of either cutting back on R&D or Sales.

Looking at some of their earlier financials when service (NRE) sales were the predominant source of revenues, they were still hemmoraging cash after operations. What's the point in any of these NRE contracts other than to give an engineer a job?

http://www.investorshub.com/boards/read_msg.asp?message_id=661266