Marketwired - June 23, 2016 - eDIGITAL Reports Fiscal Year 2016 Results
posted on
Jun 23, 2016 05:51PM
SAN DIEGO, CA--(Marketwired - June 23, 2016) - e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced results for its fiscal year ended March 31, 2016.
Highlights:
Management Commentary:
"Fiscal year 2016 was a transitional year for the Company as we phased out our legacy products and technologies, while opening the door to new technologies and business opportunities," commented Fred Falk, president and CEO of eDigital. "We believe the rapidly growing smart home industry, also known as the Internet of Things (IoT), presents eDigital with an opportunity to participate at a product design level. Our strategy is to position the Company, employing its supporting patents, to engage this exciting new market allowing eDigital to continue to do what it does best; innovate.
"With regard to our unique microSignet and Synap technologies, the online security industry is challenging due to its multifarious nature. We are also up against much larger companies with their own proprietary solutions and virtually unlimited financial and technical resources. However, we remain confident that we can gain a foothold in this space by partnering with smaller companies that have an established presence in the online security sector.
"As we move forward in this new fiscal year we are excited about the road that lies ahead, and participating in the growth of the emergent Internet of Things industry," concluded Falk.
Fiscal 2016 Financial Summary:
Revenues totaled $709,531 for the fiscal year ended March 31, 2016 compared to $2.2 million in the prior year. The decline is primarily the result of decreased patent license revenues. Revenues for fiscal year 2016 included $693,500 in licensing fees from the Company's patent portfolio. For the prior year, licensing revenue was $2.1 million. During fiscal 2016, the Company licensed 15 companies, and in the prior year had 29 new patent license agreements.
Operating costs and expenses for fiscal year 2016 were $1.98 million, decreased from $2.7 million in fiscal year 2015. The decrease is primarily as a result of reduced headcount and expenses related to the terminated eVU business and reduced contingent legal fees due to fewer license agreements.
The net loss for fiscal year 2016 was $1,275,164 or ($0.00) per diluted share, compared to the net loss of $235,153 or ($0.00) per diluted share for fiscal 2015.
About e.Digital Corporation: For more than 25 years, e.Digital's ideas and inventions have impacted the evolution of consumer products. Today, e.Digital innovations, including Nunchi® portfolio, empower many portable consumer electronic products. For more information about e.Digital, please visit: www.edigital.com.
Safe Harbor statement under the Private Securities Litigation Reform of 1995: This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include the substantial uncertainties inherent in pursuing patent enforcement activities including, but not limited to the risks and costs of litigation and support activities, the timing and amount of settlements/licenses if any, the acceptance of existing and future products and technologies, the difficulty of commercializing and protecting new technology such as the Company's Nunchi, microSignet and other technologies, the impact of competitive products, technologies and pricing, general business and economic conditions, and other factors detailed in the Company's Annual Report on Form 10-K and other periodic reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.
e.Digital Corporation and subsidiary | ||||||
Consolidated Balance Sheet | ||||||
(000's omitted except per share amount) | ||||||
March 31, | ||||||
2016 | 2015 | |||||
$ | $ | |||||
ASSETS | ||||||
Current | ||||||
Cash and cash equivalents | 701 | 1,953 | ||||
Accounts receivable | - | 11 | ||||
Inventory | - | - | ||||
Deposits and prepaid expenses | 31 | 43 | ||||
Total current assets | 732 | 2,007 | ||||
Property and equipment, net | 27 | 7 | ||||
Total assets | 759 | 2,014 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current | ||||||
Accounts payable | 121 | 140 | ||||
Accrued and other | 109 | 157 | ||||
Total current liabilities | 230 | 297 | ||||
Stockholders' equity | 529 | 1,717 | ||||
Total liabilities and stockholders' equity | 759 | 2,014 | ||||
e.Digital Corporation and subsidiary | ||||
Consolidated Statement of Operations | ||||
(000's omitted except per share amount) | ||||
For the year | ||||
ended March 31, | ||||
2016 | 2015 | |||
$ | $ | |||
Revenues | 710 | 2,236 | ||
Cost of revenues: | ||||
Products and services | 8 | 242 | ||
Patent licensing and litigation costs | 450 | 455 | ||
Contingent legal fees and expenses | 300 | 700 | ||
Selling and administrative | 860 | 929 | ||
Research and related expenditures | 367 | 367 | ||
Total operating expenses | 1,985 | 2,693 | ||
Other income | - | 52 | ||
Net loss and comprehensive loss | (1,275 | ) | (405) | |
Income tax benefit | - | 170 | ||
Net loss and comprehensive loss | (1,275 | ) | (235) | |
Loss per common share - basic and diluted | (0.00 | ) | (0.00) | |
Weighted average common shares outstanding | ||||
Basic | 293,593 | 293,339 | ||
Diluted | 293,593 | 293,339 | ||