SOURCE: e.Digital Corporation

e.Digital Corporation

August 12, 2015 16:30 ET

e.Digital Reports First Quarter Results

SAN DIEGO, CA--(Marketwired - August 12, 2015) - e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced results for the first quarter of fiscal 2016, ended June 30, 2015.

The Company reported a net loss of $120,275 or $(0.00) per share for the first quarter of fiscal 2016, compared to a net income of $30,439 or $0.00 per share for the prior year's first quarter. For the first quarter of fiscal 2016, revenues totaled $545,126 compared to $682,748 for the first quarter of the prior year. The most recent quarter included $540,000 of patent license revenues compared to $632,500 for the first quarter of the prior year. Operating expenses increased to $665,401 from $652,309 for the prior year's comparable quarter primarily due to increased licensing, patent and non-cash stock compensation costs.

Highlights:

  • Flash-R licensing - The Company has successfully monetized this technology since 2008 through patent enforcement actions against 109 companies and related distributors, with 77 agreeing to license terms as of June 30, 2015. Three of the Flash-R patents expired in 2014 and the remaining two patents expire in March 2016.
  • Nunchi® - Nunchi technology encompasses the drawing together of data from fixed or mobile sensors and uniquely fusing it to recognize, understand and affect interactions. The Company has filed patent infringement lawsuits against companies in the connected home security market, including Dropcam, Arcsoft/Simplicam, and Oco, and continues to identify companies that may be infringing this technology. The Nunchi patent portfolio consists of seven patents, two continuations and one continuation in part. A Markman hearing was recently held in the United States District Court for the Northern District of California to construe certain asserted claims related to the Dropcam case. The ruling is pending.
  • New patent application - During the first quarter of fiscal 2016, the Company filed a new patent application in an exciting new area of secure communications. Code-named "Pluto", the technology enables applications to achieve the highest levels of security; protecting user communications, user data, online transactions, and physical security. Using sensor technology, it allows separate devices to independently construct large volumes of the same secure data internally, without ever having to exchange secure data between the devices. One potential application of this unique technology would allow users to fully secure communications. Central to this new technology is the mechanism to independently create common, secure data between devices.
  • microSignet - The Company owns intellectual property in the area of on-line data protection, called microSignet. It includes one granted patent and a pending patent continuation. Unlike other security solutions, microSignet utilizes the internal physical characteristics of semiconductor memories, to establish a 'fingerprint' which uniquely identifies a given piece of hardware, such as a smart phone or desktop computer, that can be used for device authentication, or to bind valuable content to a particular device. For a more complete description and video demonstration, visit the microSignet webpage. The Company is seeking to license this technology, as well as develop the technology through others.

About e.Digital Corporation: For more than 25 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, and Nunchi® portfolio, are essential to many portable consumer electronic products. For more information about e.Digital, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include the substantial uncertainties inherent in pursuing patent enforcement activities including, but not limited to the risks and costs of litigation and support activities, the timing and amount of settlements/licenses if any, the acceptance of existing and future products and technologies, the difficulty of commercializing and protecting new technology such as the Company's Nunchi, microSignet and other technologies, the impact of competitive products, technologies and pricing, general business and economic conditions, and other factors detailed in the Company's Annual Report on Form 10-K and other periodic reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

 
e.Digital Corporation and subsidiary
Condensed Consolidated Balance Sheet
(000's omitted except per share amount)
 
   (Unaudited)  (Audited)
   June 30,  March 31,
   2015  2015
   $  $
ASSETS      
 Current      
  Cash  1,737  1,953
  Accounts receivable  72  11
  Inventory, net  -  -
  Deposits and prepaid expenses  40  43
 Total current assets  1,849  2,007
  Inventory, long term  -  -
  Property and equipment, net  6  7
 Total assets  1,855  2,014
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
 Current      
  Accounts payable  128  140
  Accrued and other  99  157
 Total current liabilities  227  297
 Stockholders' equity  1,628  1,717
 Total liabilities and stockholders' equity  1,855  2,014
       
       
e.Digital Corporation and subsidiary
Condensed Consolidated Statement of Operations
(000's omitted except per share amount)
(unaudited)
 
   For the three months
   ended June 30,
   2015  2014
   $  $
Revenues  545  683
Cost of revenues      
 Products and services  4  54
 Patent licensing and litigation costs  112  112
 Contingent legal fees and expenses  230  207
Selling and administrative  221  187
Research and related expenditures  98  93
Total operating expenses  665  653
Income (loss) before provision for income taxes  (120)  30
Income tax benefit (expense)  -  -
Income (loss) attributed to common stockholders  (120)  30
Income (loss) per common share - basic and diluted  (0.00)  0.00
       
Weighted average common shares outstanding      
 Basic  293,392  293,328
 Diluted  293,392  294,188