(SAN DIEGO, CA, – November 10, 2016) – 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 year 2017, ended September 30, 2016.
Patent monetization update – Nunchi® –The Company began enforcing its Nunchi® patents against companies in the connected home security market in fiscal 2015. One royalty-bearing license agreement was signed in the fourth quarter of fiscal 2016 and two new license agreements covering three companies were signed during the first quarter of fiscal 2017.
In September 2016, the Company filed patent infringement lawsuits against additional companies in the connected home security market, including Netgear, Y-Cam, and Netatmo, and continues to identify companies that it believes infringe the Nunchi technology.
Nunchi technology gathers information based on physical sensors, actions in an environment, as well as historical data, and acts on this information to perform operations or communicate. Applications based on Nunchi technology may include the use of the cloud, communication networks, sensors, algorithms, as well as databases, to understand and respond to the needs of people.
Smart home product development – Utilizing its patented intellectual property, the Company is developing a smart home product to monitor a household’s water usage, help prevent water damage and reduce insurance claims by detecting leaks and monitoring water pressure in real-time, assess water quality, and assist homeowners with water conservation efforts. Water conservation is a critical issue impacting the environment as nationwide water supplies become increasingly stressed and water damage claims cost individual homeowners thousands of dollars, and insurance companies billions of dollars every year.
New Board Members – The Company recently announced the appointment of two new, independent board members:
Russell H. Packer is Chief Financial Officer of GeoOptics, Inc., and is the former CFO of Geometric Results Incorporated (“GRI”), a Ford Motor Company business and technology services subsidiary. Mr. Packer additionally serves on the Company’s Audit Committee.
Donald W. Springer is the co-founder and has been Chairman of The Colton Group since 2004, a board directorship and executive advisory firm providing actionable growth strategies to ignite and accelerate growth of emerging businesses, global companies, and social enterprises. Mr. Springer additionally serves on the Company’s Compensation Committee.
“As consumers continue to embrace sensor based smart home products, we are very excited about revenue opportunities from our new product development,” commented Fred Falk, president and CEO of eDigital. “Reception to our product designs from potential customers and partners has been very positive. Our new Board members are helping to refine our strategic direction with regard to not only our smart home product but also our microSignet and Synap technologies. Our legal team will continue to enforce our patents against companies we believe infringe our Nunchi intellectual property,” concluded Falk.
The Company reported a net loss of $367,814 or $(0.00) per share, for the second quarter of fiscal 2016 compared to a net loss of $354,382 or $(0.00) per share for the prior year’s second quarter. There were no patent licenses signed in the second quarter of fiscal 2017 and accordingly no revenues. This compares to revenues of $164,405 for the second quarter of the prior year including $153,500 of patent license revenues. Operating expenses decreased to $367,814 from $518,787 for the prior year’s comparable quarter primarily due to decreased patent-related legal costs.
For the six months ended September 30, 2016, the Company reported a net loss of $413,035 or $(0.00) per share on revenues of $593,366. For the comparable six months of the prior year the Company reported a net loss of $474,657 or $(0.00) per share on revenues of $709,531. The Company expects additional Nunchi related license revenue in the last half of fiscal 2017 and the Company’s results are materially impacted by the timing, size and nature of license fees and related costs.
About e.Digital Corporation: For more than 27 years, eDigital’s ideas and inventions have impacted the evolution of consumer products. Today, eDigital innovations, including the Nunchi® portfolio, empower many portable consumer electronic products. For more information about eDigital, 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, Synap 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.
CONTACT: e.Digital Corporation: Investor Relations, (858) 304-3016 ext. 205, firstname.lastname@example.org
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