...This suggests that digEcor, being a direct party to the contract, could not sue EDIG for Maycom`s failure to deliver. It would be much more likely that digEcor and EDIG would together go after Maycom or that digEcor (the suffering party) would go after Maycom directly/independently (sans EDIG, which was not injured by Maycom).

These thoughts add credence to my ``PS`` in my last message. Potential impact to EDIG IMO would be limited to a portion of their fee for manufacturing oversight (~$100K?, or 1M shares of added float, adding ~.33% to float - trivia)...

I think you are right. At least in my business, the buyer (Wencor) not paying through the seller (EDIG) would be very rare. The only instance I have been involved with included using IP from the buyer to be included into our finished good. The buyer simply wanted to have tech guys at the factory to approve the product on site to save time vs. shipping sample production for approval.

As for Wencor`s visit in January, that is odd since Wencor did not employ the tech expertise in days gone by. Maybe Triad went with the Wencor gang??? Who knows? It is problem that should not be happening, IMO, without some sort of unknown issue with Wencor or with Maycom.

Either way, I believe EDIG has addressed the problem via the 8K (OZ posted the detail) and the full impact is not a big issue.

John