This could be your answer re extreme volatility , paragraphs from e.DIGITAL form 10 - K

Management faces challenges in fiscal 2012 to execute its plan to grow product and service revenues and increase Flash-R patent portfolio license fees. Results of rulings from the Markman hearing and reexamination of certain Flash-R patent claims by the USPTO could have a significant positive or negative impact on future licensing activity in 2012 and beyond.

Read more: http://www.faqs.org/sec-filings/110621/E-DIGITAL-CORP_10-K/#ixzz1n3xQgawl