e.Digital Corporation (fka EDIG)

[But Anyway]

As of December 31st, 2002, e.Digital had cash and equivalents of $264,084, "sufficient capital resources for the next two months".[1]

January.

End of February - e.Digital is broke.

On March 6th, 2003, e.Digital raised an additional $80,750 for general corporate purposes.[2]

On March 18th, 2003, e.Digital's auditors resign, two weeks before the end of the company's fiscal year.[3]

Beginning of April - e.Digital is broke.

The company has exhausted all of it's capital. Assuming e.Digital received $500,000 worth of new inventory and is selling it at a 20% margin, e.Digital will have raised $100,000 in additional capital or about enough money to fund operations for another week or two into April.

Prediction: e.Digital will file their 10K, due at the end of June, late---if at all.

This is a disaster, the stock price will continue to drift lower.

Buy more! Support your company! Support the price level! Think about the engineers who will have to find a real job, think about the management who will be forced to find a real job! Think aobut their children! THEIR CHILDREN! SUPPORT THE STOCK PRICE! THINK- BUY!




[1]"At December 31, 2002, we had cash and cash equivalents of $265,084. Other than cash and cash equivalents and accounts receivable, we have no material unused sources of liquidity at this time. We have no material commitments for capital expenditures or resources. Based on our cash position and assuming (a) continuation of existing OEM arrangements and (b) currently planned expenditures and level of operation, we believe we have sufficient capital resources for the next two months. However actual results could differ significantly from management plans. The actual future margins to be realized, if any, and the timing of shipments and the amount and quantities of OEM shipments, orders and reorders are subject to many factors and risks, many outside our control."

http://www.sec.gov/Archives/edgar/data/886328/000116923203001168/d53551_10q.htm

[2]"The net proceeds to us from the sale of 425,000 shares to Sunrise will be approximately $80,750. We plan to use the net proceeds for general corporate purposes"[.]

http://www.sec.gov/Archives/edgar/data/886328/000114420403000886/doc1.txt

[3]"On March 18, 2003, Ernst & Young LLP resigned as the Registrant's independent auditor."

http://www.sec.gov/Archives/edgar/data/886328/000114420403001093/doc1.txt