EDIG has shown to reduced its costs significantly from the prior year. This most recent compensation being discussed does not seem disrupt the ongoing effort to cut costs. Certainly that could change, but for this fiscal year, putting reliable people in place for the post reexam period seems reasonable to me.

From the latest 10Q:

"Gross profit for the second quarter, including the positive contribution of licensing margins, was $599,000, 57% of revenues, compared to $89,000, 37% of revenues, for the prior year’s second quarter. Operating expenses declined to $334,500 from $361,000 for the prior year’s comparable quarter primarily due to reduced staffing costs including reduced non-cash stock compensation expense. Quarter-end cash increased to $3,032,000 from $1,806,000 at March 31, 2011.

For the six months ended September 30, 2011 the Company reported net income of $894,000, or $0.00 per share, on revenues of $3.2 million. This is an improvement over the comparable six months of the prior year that had a net loss of $654,000 on revenues of $750,000."