Replies to post #85004 on e.Digital Corporation (fka EDIG)

[mrkool]

If EDIG does not leverage licenses from companies that infringe on Nunchi, if all they do is collect small amounts of money to pay salaries, then they are a patent troll.

When a person buys shares in a company it is for the purpose of making money, to see the PPS rise. No one buys shares in a company to get in the RED and say "gee I'm glad the lights have not been turned out - oh how wonderful for me that the company is still in business..."


The question of whether EDIG is a patent troll will be answered very soon with the enforcement of the Nunchi patents. For example, if companies determine that they can infringe on the Nunchi patents and only pay a small settlement fee to keep money coming into management's hands, then EDIG is a patent troll and the shareholders are getting screwed...

It's management's job to enrich the shareholders, not to make a salary at the expense of them. If Nunchi is worth something, EDIG management is obligated to make money for the shareholders, this means LARGE deals not small settlements...If EDIG management fails to exploit Nunchi, they need to GO...

[Cassandra]

Although they "currently" lean primarily on winning law suits against those who have infringed, they do not rely on it exclusively.

That is false. e.Digital has never won a patent infringement lawsuit. In fact, it has never fully litigated one. Under Handal & Associates guidance, e.Digital follows the patent troll business plan of filing numerous frivolous lawsuits and then offer to settle for FAR less than nuisance value -- a pure patent troll strategy.

Three were 22 licenses (settlements) in FYE 3/31/14 totaling $2,045,385 or an average of $93,000 each. One of these was Apple. If one were to subtract Apple and the other 2 or 3 biggest settlements from the total, the others would be miniscule.

The only other source of income for the company is from its very antiquated eVU product, which loses more money than it generates. In FYE 3/31/14, eVU products and services brought in $253,373 but cost $307,737 in direct cost of revenue not counting all of the indirect allocations. The 10-K states that this business continues to decline and and is expected to continue to drop. In other words, it's NOT going to get any better and is expected to get worse.

Even a semi competent CEO would have cut off this growing cash drain long ago. A couple of years ago I suggested selling off the eVU business to another provider of portable IFE devices. That opportunity has long has passed.

Simply closing the division, writing off the small inventory that remains and laying off personnel employed for customer service, device repair and content uploads would immediately streamline and improve the company's operations. Why hasn't Fred Falk taken this action instead of allowing more operational drainage?