e.Digital Reports Second Quarter Results
November 13 2013 - 10:00AM
Marketwired
e.Digital Reports Second Quarter Results
SAN DIEGO, CA--(Marketwired - Nov 13, 2013) - e.Digital
Corporation (OTCQB: EDIG), a long standing source of innovation and
future-defining patented technologies, today announced results for
its second quarter of fiscal 2014, ended September 30, 2013.
Recent Highlights:
- Progress with Flash-R™ patent licensing: Through its law
firm, Handal & Associates, the Company has entered into
license and settlement agreements with a number of defendants. A
majority of the recent settlements negotiated during the
current quarter are in the process of being finalized and
documented. The Company expects additional settlements before
the end of the calendar year. During the last quarter, the
Company filed a notice of appeal to the Federal Circuit Court
of Appeals, challenging the August 21, 2013 collateral
estoppel ruling that could have an impact on the course of
future litigation against non-settled parties.
- Grant of new patent to portfolio of IP: The United
States Patent and Trademark Office has granted the Company a
new patent, US 8,572,440, titled System and Method for
Managing Information Stored in Semiconductors. This
patent is the foundation of the Company's newly created
microSignet™ IP portfolio. The Company has already filed a
continuation patent application that it expects will further
strengthen the portfolio.
- Continued marketing the Nunchi® family of patents: The Company
is marketing its Nunchi patent portfolio through a modified
licensing strategy involving the assistance of its law firm,
Handal & Associates.
Management Commentary: "Our legal team at Handal &
Associates has worked very hard navigating the challenges presented
by the defendants in our current litigation activities," commented
Fred Falk, president and CEO of e.Digital. "Good progress has been
made and as a result, we anticipate increased cash receipts through
the balance of the current round of license and settlement
activities. We remain dedicated and financially prepared to defend
our patents through trial against any defendants who infringe our
technologies and do not settle and license. We anticipate that the
proceeds from the current round of settlements will help fund our
overall litigation and licensing strategy, not only for our Flash-R
patents but for our Nunchi and microSignet patents as well.
e.Digital's litigation activities have created an awareness in the
industries and among current licensees, of our Nunchi and
microSignet patents and have opened the door for serious licensing
discussions for those patents, leading us to expand our
relationship with Handal & Associates. Although the Company
reported a financial loss for fiscal Q2, we expect increased patent
license revenues for the current quarter based on the recent
settlements and current negotiations," concluded Falk.
Second Quarter Fiscal 2014 Financial Summary: The Company
reported a net loss of $410,113 or $(0.00) per share, for the
second quarter of fiscal 2014 compared to a net loss of $376,005 or
$(0.00) per share for the prior year's second quarter. For the
second quarter of fiscal 2014 revenues totaled $101,729 compared to
$124,949 for the second quarter of the prior year. The most recent
quarter included $34,725 of patent license revenues compared to
$2,000 for the second quarter of the prior year. Operating expenses
increased to $511,842 from $500,954 for the prior year's comparable
quarter primarily due to increased patent-related legal costs.
For the six months ended September 30, 2013 the Company reported
a net loss of $481,550 or $(0.00) per share on revenues of
$551,187. For the comparable six months of the prior year the
Company reported a net loss of $708,988 or $(0.00) per share on
revenues of $257,495. The Company's results are impacted by the
timing and amount of license fees.
About e.Digital Corporation: For more than 20 years, e.Digital's
ideas and inventions have impacted the evolution of consumer
products. Today, e.Digital innovations, including its Flash-R™
portfolio of flash memory-related patents, are essential to many
portable consumer electronic products. The Company pioneered
dedicated portable in-flight entertainment systems and more than 30
airlines have made e.Digital powered products their in-flight
entertainment choice. For more information about e.Digital, please
visit: www.edigital.com.
Safe Harbor statement under the Private Securities Litigation
Reform of 1995: All statements made in this document, other than
statements of historical fact, are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act.
You should not place undue reliance on these statements. We base
these statements on particular assumptions that we have made in
light of our industry experience, our ability to protect and
monetize our IP portfolio, expected future developments and other
factors that we believe are appropriate under the circumstances.
These forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the businesses of the Company and the industries and markets in
which the Company operates. Actual outcomes and results may differ
materially from what is expressed or implied by the forward-looking
statements. More information about potential factors that could
affect the Company can be found in its most recent Form 10-K, Form
10-Q and other reports and statements filed with the Securities and
Exchange Commission ("SEC"). e.Digital Corporation disclaims any
intent or obligation to update these or any forward-looking
statements, except as otherwise specifically stated by it.
|
e.Digital Corporation and subsidiary |
Condensed Consolidated Balance Sheet |
(000's omitted except per share amount) |
(unaudited) |
|
|
|
September 30, |
|
March 31, |
|
|
2013 |
|
2013 |
|
|
$ |
|
$ |
ASSETS |
|
|
|
|
|
Current |
|
|
|
|
|
|
Cash |
|
1,356 |
|
1,741 |
|
|
Accounts receivable |
|
59 |
|
176 |
|
|
Inventory |
|
13 |
|
21 |
|
|
Deposits and prepaid expenses |
|
67 |
|
60 |
|
Total current assets |
|
1,495 |
|
1,998 |
|
|
Inventory, long term |
|
63 |
|
104 |
|
|
Property and equipment, net |
|
11 |
|
13 |
|
Total assets |
|
1,569 |
|
2,115 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current |
|
|
|
|
|
|
Accounts payable |
|
79 |
|
67 |
|
|
Accrued and other |
|
194 |
|
273 |
|
Total current liabilities |
|
273 |
|
340 |
|
Stockholders' equity |
|
1,296 |
|
1,775 |
|
Total liabilities and stockholders' equity |
|
1,569 |
|
2,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e.Digital Corporation and subsidiary |
|
Condensed Consolidated Statement of Operations |
|
(000's omitted except per share amount) |
|
(unaudited) |
|
|
|
|
|
For the three months ended September 30, |
|
|
For the six months ended September 30, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
Revenues |
|
102 |
|
|
125 |
|
|
551 |
|
|
257 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
63 |
|
|
99 |
|
|
171 |
|
|
193 |
|
|
Patent licensing and litigation costs |
|
113 |
|
|
53 |
|
|
225 |
|
|
75 |
|
|
Contingent legal fees and expenses |
|
14 |
|
|
1 |
|
|
30 |
|
|
3 |
|
Selling and administrative |
|
244 |
|
|
179 |
|
|
446 |
|
|
380 |
|
Research and related expenditures |
|
78 |
|
|
169 |
|
|
161 |
|
|
315 |
|
Total operating expenses |
|
512 |
|
|
501 |
|
|
1,033 |
|
|
966 |
|
Loss |
|
(410 |
) |
|
(376 |
) |
|
(482 |
) |
|
(709 |
) |
(Provision for) benefit from income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Loss attributed to common stockholders |
|
(410 |
) |
|
(376 |
) |
|
(482 |
) |
|
(709 |
) |
Loss per common share - basic and diluted |
|
(0.00 |
) |
|
(0.00 |
) |
|
(0.00 |
) |
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted |
|
293,187 |
|
|
293,003 |
|
|
293,187 |
|
|
293,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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