Replies to post #59739 on e.Digital Corporation (fka EDIG)

[chwdrhed]

Thanks for the clarification.

[friendlyfred]

I thought edig decided on upfront payments for the units in lieu of royalties / licensing fees?

[rollingrock]

sdr... yes thanks. So how does the content
work? I was assuming APS handled that because it was their player. But it sounds like EDIG is free to sell it on their own as well. And how do the movies and music and I'm sure advertizements get updated anyway?

[Cassandra]

sdr: You are incorrect in stating that:
"EDIG and APS have a revenue sharing arrangement on all IFE customers regardless of which one sells the customer."

e.Digital has never claimed that it has a "revenue sharing" agreement of any kind with APS.

APS orders digEplayer units from e.Digital and pays them a per-unit fee (which e.Digital calls a "royalty"). There is no "revenue sharing beyond the intial purchase.

However, according to e.Digital's SEC filings, it will have to pay for the manufacturing costs out of its "royalty" from APS. Therefore this claimed "several hundred dollar" per unit royalty will have the manufacturing costs deducted from it.