I saw nothing regarding a split of companies, my understanding is that it is a new division or group within the company:

Key New Technologies and Partnerships

(SAN DIEGO, CA, – December 15, 2010) – e.Digital Corporation (OTC: EDIG), long known as a focal point of commercial innovation, today announced the formation of the e.Digital Innovations Group (EDIG). EDIG’s charter is to further e.Digital’s history of innovation, develop a new, strong and diverse intellectual property portfolio and to collaborate with strategic partners to bring game-changing technologies and products to market.

“Throughout our twenty-two year history we have created foundational technologies, many of which are at the core of wireless headset, digital audio/video recorder and portable music player markets,” said Fred Falk, president and CEO of e.Digital Corporation. “Technology innovation has always been our principal value and our new EDIG business unit has been chartered with innovating and monetizing new technologies that we believe have significant potential for consumer products and industries.”

“Our EDIG division is already developing several new technologies...

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