At June 30, 2009 the Company had an accrual of $80,000 related to a deposit for batteries made by digEcor and had an additional accrual of $100,000 based on a previous settlement offer. The Company is evaluating the impact this favorable ruling and any possible cost recoveries will have on the amounts accrued in its financial statements and expects to reduce the accrual at September 30, 2009.

It sounds like e.Digital could go after some costs from digEcor.