Re: Plan B - Jefother
posted on
Nov 16, 2009 01:15PM
I made mention of that earlier but didn't realize the company must disclose the information. Your post.
This quarters Q is more complicated than in prior years because of the recent accounting rule change I posted a couple of weeks ago.
If material information becomes available after the close of the quarter but prior to the release of the 10Q then the company must disclose the information. The Digecor settlement could have percipitated the re-writing of the 10Q or have caused EDIG to add a section in which it is mentioned. Just a guess.
The other thing that could affect the release of the financials is stipulated in the agreement.
Finally, pursuant to the Settlement Agreement, e.Digital has agreed to make a payment to digEcor in the amount of $60,000 (the "Payment") by 6:00 p.m. Mountain Standard Time on Wednesday, November 18, 2009. digEcor gives notice that within one business day of its timely receipt of the Payment, digEcor shall file with the Court a Satisfaction of Judgment in the form agreed upon by the Parties. However, the Judgment shall remain in full force and effect until e.Digital makes the Payment required under the Settlement Agreement. If e.Digital should fail to make the Payment digEcor may fully and freely enforce the Judgment. The Parties acknowledge and agree that all disputes between them will be fully settled and mutually released effective upon digEcor’s timely receipt of the Payment as specified in the Settlement Agreement.
They could delay booking the financials until these transactions are complete. All should be finalized prior to the scheduled shareholders meeting. The fact that this is a material event and has occurred prior to release of the financials necessarily requires the company to disclose the information as you suggest. Thanks for pointing this out.
Larry