As for any kind of insurance, I`d be very surprised if there is any involved. It appears that such insurance, in some form, is available. But, again, I seriously doubt EDIG secured any - they`re depending more on good faith track record and contract law IMO (after all, the contract IS your basic insurance).

I found the payment info via Sunpoop to be ``very strange`` - where Wencor/digEcor would make a direct payment to Maycom vice moving the money through EDIG in normal business fashion.

I went and looked, and in the PR citing the SEC filing, it says:

``On November 11, 2005, in the normal course of our business, we placed a purchase order for 1250 digEplayers with our contract manufacturer, Maycom Co., Ltd. (“Maycom”). Maycom was paid progress payments with final payments made in full for the order by e.Digital and directly by our customer, digEcor (“digEcor”) in March, 2006.``

So digEcor did make a direct payment(s). So, Sunpoop, you got that right and I apologize for questioning. However, those dollar figures still don`t make sense as you stated. I believe you said that you were told that $790K was paid to EDIG by digEcor, and EDIG paid $600K of that to Maycom. There must be some mis-communication here, if indeed digEcor paid monies direct to Maycom (and not through EDIG). I say this because the $600K amount for 1,250 digEs sounds about right based on prior info ($480/unit), as does the ``all-up`` $790K as EDIG`s price tag ($630/unit; 24% ``profit`` for royalties and manufacturing oversight). So IF digEcor paid monies directly to Maycom above and beyond these amounts for those same 1,250 units, all the numbers get fouled up and unrealistic based on ``what we think we KNOW``. I suspect there was actually some combo of payments made by EDIg and digEcor adding up to these figures.

I still believe that the REAL impact of all this will be very minimal, even in a ``worst case scenario`` as I described yesterday. Nothing to get too excited about, especially considering the parties involved, our history, and our (non-) future together. Investor sentiment? How many are paying THAT close of attention these days? Will they see it as THAT big a negative? (answers IMO: So what?, Very few, no - if they really think about it).

Hopefully this debackle, regardless of mini-magnitude, will present the opportunity for EDIG to tell us some things about progress in general.

But I KNOW nuttin`!

SGE

PS: I`m surprised no one has ever said a word about digEcor`s visit to Maycom in January and how that may conflict with EDIG`s role of providing, for a fee, manufacturing oversight. I find that interesting - to the point where I`m thinking that it may be possible that THIS is what the Utah suit is about - digEcor being compelled to perform EDIG`s role (failure to perform to customer expectation?).