05-30-06 The Lease
posted on
Apr 01, 2007 06:09AM
The "lease" is merely another financing method for EDIG to offer its customer base. EDIG would not carry any lease itself, but rather designate that to a financing company, who would still pay EDIG upon completion of the deal up front and then "carry the paper" on the lease. For that they receive interest and principal payments from the customer and likely a percentage of the total sale price from EDIG.
"We have put in to place the key elements of a turnkey entertainment services business including financial services partners for qualifying customers to lease eVU units as well as provide warranty and insurance coverage in case of failure, damage, or normal wear and tear. Our turnkey service enables qualifying eVU customers to get eVU units into the hands of their customers/passengers/patients and quickly begin generating revenue without significant initial costs. Not only are our eVU costs and product margin covered up front by a financial services company on qualifying orders, in many cases we also expect to receive monthly content, logistic services, and warranty fees over the lifetimes of the contracts. Based on our expected product and leasing margins and our turnkey entertainment services being fully implemented, we believe we can become profitable with annual eVU sales of approximately 4,000 units."