e.Digital Corporation (fka EDIG)

[HotrodHans]

Here ya go Cassie,
more fodder....


http://www.investrend.com/articles/article.asp?analystId=0&id=21292&topicId=137&level=13....


Smaller Public Companies, Representing 80% Of Issuers, May Become Exempt From Sarbanes-Oxley Costly 404 Provisions / Information
Some 80 percent of U.S. public companies, with market capitalizations under $700 million, may soon be exempt from Section 404 of the Sarbanes-Oxley Act, which requires internal controls, and those under $100 million may become exempt fro “SarBox” altogether, if the U.S. Securities and Exchange Commission adopts the proposals of its Advisory Committee on Smaller Public Companies.

Companies that would be fully exempt would include Isonics Corp. (NASDAQ: ISON) and Generex Biotech (NASDAQ: GNBT), along with most OTCBB and PinkSheets quoted issuers. Companies that would still have to comply with Sarbanes-Oxley but not the more onerous Section 404 requirements would include Charles and Colvard (NASDAQ: CTHR) and Taser International (NASDAQ: TASRE).

All of these companies have received coverage by Investrend Research or its affiliates. The committee is also urging the SEC to encourage public companies that have no research coverage to sponsor their own research through such programs. Investrend and its affiliates subscribe to the “Standards For Independent Research Providers” at http://www.firstresearchconsortium.com, and their coverages are enrolled for investor-monitoring by the Shareholders Research Alliance (http://www.shareholdersresearch.com).

The SEC appointed its advisory committee, whose members include James A. (Drew) Connolly, director of corporate development for Investrend Communications, Inc., parent to Investrend Information, publishers of FinancialWire, and also parent to Investrend Research, in an effort to determine how much relief from the exhorbitant costs associated with SarBox should be afforded smaller public companies and their shareholders.

During the year-long series of meetings and public comment, the advisory committee learned that a large proportion of public company shareholders might suffer financial problems if companies that could not afford compliance were to delist, or “go dark,” and the committee’s proposals are in part an attempt to prevent this from happening.

The proposals, overwhelming adopted by an 18-1 vote, are not yet final. On January 9, the committee will hold its sixth meeting to consider the draft final report. The committee’s master schedule is at http://www.sec.gov/info/smallbus/acspc/acspc-mastersched.pdf . Then, on January 17, the first draft of the final report will be published in the Federal Register and opened to public comment until February 16. There will be another meeting in March to adopt the final report, and submit it to the Commission.

The SEC so far has been very responsive to its committee, and has adopted requested interim measures.

“We value internal controls strongly,” James C. Thyen, CEO of Kimball International and co-chair of the advisory committee told the New York Times. “We see the goodness in it, but we think there has to be some proportionality in costs versus benefits.”



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