Jerry Polis and Jim Barnes have also participated in numerous financings of public corporations established by Woody Norris, most frequently with San Diego, California-based e.Digital Corporation, an entity to which ASI Capital extended a short term $750,000 working capital loan at 18% interest in March 2007. The loan has had two extensions of maturity date with payments of additional financing charges paid in e.Digital stock and principal reductions, the most recent of which reduced the loan to $450,000. According to ASI, e.Digital is the only entity outside the State of Nevada to which it has funded a loan.
ASI's annual report also discloses that Jerry Polis owned 4.9% of e.Digital stock as of September 30, 2007, but denied that is should be considered a "related entity." Polis's private Davric Corporation also funded a loan to e.Digital which is still in effect. Although placed years prior to the ASI loan and for a larger amount, the Davric loan is subordinate to the ASI loan, which is secured by all of the assets of e.Digital.
On 1/9/2008, Jerry Polis filed a report with the SEC disclosing that he is the beneficial owner of 25,408,566 shares of e.Digital Corporation stock. This amount translates to approximately 10% of e.Digital's shares outstanding. Polis attributed the substantial increase in ownership to the contractually mandated conversion of e.Digital Series D preferred stock and accumulated dividends which resulted in the issuance of 17,000,000 additional shares of e.Digital stock to entities he owns and/or controls.
