Verichip Corp

VeriChip Corporation

Andrew Chiles

September 26, 2007

Stacy Barnes

ECO 110

VeriChip Corporation

Why would anyone ever think to put their hard-earned money into a company that has been in the red most of its corporate life? First, we will have to examine what the company produces. Next, we will have to examine the economic indicators that lured Stockholders to purchase over 8 million shares.

VeriChip Corporation develops and produces Radio Frequency Identification (RFID) devices for use in the healthcare industry, asset management and vibration monitoring. Digital Angel, which is a majority-owned company by Applied Digital, as well as VeriChip, has the only patented FDA approved human-implantable microchip on the market. VeriChip and Digital Angel collaborated to help use Digital Angel’s implantable chip as a vehicle for VeriChip’s RFID technology. No royalties are paid to Digital Angel. This microchip is primarily used in the healthcare industry as a tracking and information collection device for nurses and doctors. The device is injected under the skin and is as painless as a normal flu shot. The device is used in Emergency Rooms to track patients and store vital patient medical information. A scanner is used to extract the information. There are a few groups that believe this device violates privacy laws, but the device only has a range of ten feet and is not powerful enough to be used as a Global Positional System device. Also, the people are given the choice of whether or not to have the device implanted in their arm. These devices are reusable, which make them even more marketable and attractive to hospital administrators. VeriChip donated 560 chips to Harrison County after hurricane Katrina ripped through the area.

The chips were used to identify bodies from cemeteries that had become exposed due to flooding. These devices are better than the traditional toe tags and barcodes because toe tags can easily be removed...