Replies to post #33699 on e.Digital Corporation (fka EDIG)

[chwdrhed]

Frankly I would be more concerned if it was a coincidence. That would mean that management had no idea it was going to happen. Now that would be bad.

[Cassandra]

The 8-K was the sole reason for the unscheduled webcast. It was certainly NOT a "coincidence" that the webcast happened to be on the day of the filing. E&Y resigned on 3/18/03 and EDIG had only five business days to file the 8-K. That's why the webcast was so hastily arranged to do damage control. Looks like it worked as the share price would have expected to tank rapidly on such material news. EDIGers are amazingly loyal (or naive).

Except for EDIGers, most investors consider the resignation of the certifying account to be one of the worst red flags about a company. That's why the SEC requires it to be filed so quickly. In fact, there is a proposed rule change to require the filing within 2 business days instead of 5. The new rules would also require that the departure of officers or Board members must also be reported even if there were no disagreement. Had the new rules been in place, EDIG would have had to report the departures of Jane Rinard (former CF0) and Jim Collier (former president/COO) as well as the departures of both Skip Matthews and Robert Jecmen (former Board members).

US Securities and Exchange Commission:

Form 8-K

This is the "current report" used to report material events or corporate changes that have previously not been reported by the company in a quarterly report (Form 10-Q) or annual report (Form 10-K). These events or changes include: acquisition or sale of significant assets not made in the ordinary course of the company’s business; change in control of the company; bankruptcy proceedings; change in the company’s accountant; and a director’s decision to resign or not stand for re-election because of a disagreement with the company over the company’s operations, policies, or practices.

Depending on the nature of the event or change, Form 8-K currently must be filed within 5 business days or 15 calendar days after the event or change has occurred. Please note that the SEC has proposed a rule that would shorten the time that companies have to file Form 8-K to two business days and would add 11 new triggering items.

You can find a company’s Form 8-K in the SEC’s EDGAR database. You can learn how to use EDGAR to find information about companies. You can also see a copy of the Form.

http://www.sec.gov/answers/form8k.htm