886328--6/29/2007--E_DIGITAL

related topics

{product, market, service}

{stock, price, share}

{property, intellectual, protect}

{control, financial, internal}

{customer, product, revenue}

{interest, director, officer}

{regulation, change, law}

{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 do not Anticipate Paying Dividends 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. 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 for Revenue and Customer Litigation 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 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. The WEEE and RoHS Directives in Europe May Impact the Cost of Our Products and/or Our Ability to Sell We May Incur Liability from Our Requirement to Indemnify Certain Customers Regarding Current Litigation and Certain Intellectual Property Matters. Failure to Achieve and Maintain Effective Internal Controls in accordance with Section 404 of the Sarbanes-Oxley Act Could Have a Material Adverse Effect On Our Business. 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--6/29/2007--E_DIGITAL_CORP