886328--6/17/2008--E_DIGITAL

related topics

{property, intellectual, protect}

{product, market, service}

{stock, price, share}

{financial, litigation, operation}

{regulation, change, law}

{control, financial, internal}

{customer, product, revenue}

{interest, director, officer}

{stock, price, operating}

{capital, credit, financial}

{personnel, key, retain}

{cost, regulation, environmental}

{cost, operation, labor}

{acquisition, growth, future}

{investment, property, distribution}

Cautionary Note on Forward Looking Statements We Have a History of Losses and May Incur Future Losses Unless We Obtain Adequate Financing and Increase Our Revenues We May Be Unable to Continue as a Going Concern. We Need to Obtain Additional Financing to Continue Operating our Business We Expect Our Operating Results to Fluctuate Significantly We May Experience Product Delays, Cost Overruns and Errors Which Could Adversely Affect our Operating Performance and Ability to Remain Competitive. We do not Anticipate Paying Dividends Risks Related to Sales, Marketing and Competition We May Be Unable to Successfully Compete in the Electronic Products Market Which is Highly Competitive and Subject to Rapid Technological Change We Rely on a Limited Number of Customers from One Industry for Revenue If We Are Unsuccessful in Achieving Market Acceptance of Our Products, It Could Harm Our Business We Have Limited Marketing Capabilities and Resources Which Makes It Difficult For Us to Create Awareness of and Demand for Our Products and Technology. The Success of Our Business Depends on Emerging Markets and New Products. Development of New or Improved Products, Processes or Technologies May Render Our Technology Obsolete and Hurt Our Business. We Depend On a Limited Number of Contract Manufacturers and Suppliers and Our Business Will Be Harmed By Any Interruption of Supply or Failure of Performance If We Lose Key Personnel or Are Unable to Attract and Retain Additional Highly Skilled Personnel Required For the Expansion of Our Activities Our Business Will Suffer Because Some of Our Management are Part-Time and Have Certain Conflicts of Interest, Our Business Could Be Harmed Risks Related to our Patent Enforcement Strategy Enforcement of Our Patented Technologies is Untested and We Face Uncertain Revenue Prospects or Market Value. Our Fee Arrangement with Patent Enforcement Counsel Subjects Us to Certain Risks and Substantial Costs and Fees Could Limit Our Net Proceeds From Any Successful Patent Enforcement Actions. New Legislation, Regulations or Rules Related to Enforcing Patents Could Significantly Decrease Our Prospect for Revenue and Increase the Time and Costs Associated with Patent Enforcement. Should Litigation Be Required to Enforce Our Patents, Trial Judges and Juries Often Find It Difficult to Understand Complex Patent Enforcement Litigation, and as a Result, We May Need to Appeal Adverse Decisions By Lower Courts In Order to Successfully Enforce Our Patents. Federal Courts are Becoming More Crowded, and as a Result, Patent Enforcement Litigation is Taking Longer. As Patent Enforcement Litigation Becomes More Prevalent, It May Become More Difficult for Us to Voluntarily License Our Patents. Risks Related to Intellectual Property and Government Regulation Failing to Protect Our Proprietary Rights to Our Technology Could Harm Our Ability to Compete, as well as Our Results of Our Operations. We May Face Intellectual Property Infringement Claims That May Be Difficult to Defend and Costly to Resolve, Which Could Harm Our Business. Risks Related to Government Regulation, Content and Intellectual Property Government Regulation May Subject Us to Liability and Require Us to Change the Way We Do Business. Compliance With Current And Future Environmental Regulations May Be Costly, Which Could Impact Our Future Earnings. We May Incur Liability from Our Requirement to Indemnify Certain Customers Regarding Current Litigation and Certain Intellectual Property Matters Our Internal Control Over Financial Reporting Is Not Adequate And May Result In Financial Statements That Are Incomplete Or Subject To Restatement. Risks Related to Trading in Our Common Stock The Sale of our Common Stock to Fusion Capital May Cause Dilution and the Sale of the Shares of Common Stock Acquired by Fusion Capital Could Cause the Price of our Common Stock to Decline. Investing in a Technology Stock (Such as Ours) May Involve Greater Risk Than Other Investments Due to Market Conditions, Stock Price Volatility and Other Factors Low-Price Stocks and Stocks Traded on the OTC Electronic Bulletin Board are Subject to Special Regulations and may have Increased Risk. Important Factors Related to Forward-Looking Statements and Associated Risks

Full 10-K form ▸

886328--6/17/2008--E_DIGITAL_CORP