Jefother,

"For a company that loses money on a consistent basis there is never enough cash because they spend more than they earn. The only collateral they have is the value of their patents and in the stock they have been authorized to issue.  That's it. Unfortunately, because the share price is so low, the company has to issue large quantities of stock to cover relatively small obligations. This means even their stock has little value right now."

Absolutely Agree

"The brutal truth that some posters don't want to accept is that fundamentals ARE important. If you don't accept or look at the fundamentals you can't understand the magnitude of the risk you are accepting when holding stock in a company."

Agree but would add: The brutal truth that others don't want to accept or look at is the fact that emotion and anticipation can absolutely drive a stock given the right circumstances...even in our current market. I am not saying we're in such a position at this time, merely that we could be.

"On a positive note, those entities "loaning" money to e.Digital see it as an investment and are willing to accept stock as payment because they believe they can sell at a profit. Even here one needs to be careful because e.Digital is paying with stock which has been discounted so that when it is sold by the receiver, let's say at $.13 a profit can be made."

Spot on. 

"I'm not accusing anyone of anything when I make the following statement. In the penny stock world it is common to have people hyping a stock to generate buying interest when large blocks of stock are being sold into the market."

Agree but would add: In the penny stock world it is also common for people to be subtly (or not so subtly) negative for their own self interests. 

Some individuals on both sides of this issue do so just because it's their nature to do so.

Coyote