My concern is not as important as the auditor's concern. Both Ernst & Young (which resigned in March as e.Digital's auditors) and the current auditor (Singer, Lewack) have officially expressed that they believe there is substantial doubt that e.Digital will be able to remain a going concern.
e.Digital management makes similar warnings in the SEC filings.
e.Digital has only been able to survive by constantly selling more stock and diluting shareholder equity.
However, that being said, I believe the company is not in as bad shape as it was at this time last year when shareholders were just hearing that the previous quarter (9/30/02) was not going to meet the $2.6 million in revenue that management has guided, but that actual revenue was only $290K with negative gross margin on product sales of 538%!!!
At least they've given up the disastrous retail business plan that digging them deeper into a hole than if they had sat on their hands. They also finally trimed some expenses.
However, they still have a lack of money and can't even make meager $7,500 interest payments on its loan and had to borrow money from the chairman of the BOD to finance two manufacturing runs of 200 Ody 1000 units at a time.
I believe you will seem more red ink in the 10Q for QE 9/30/03 and a continuance of the "going concern" warning.
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