Veriteq (DIGA) 8-K Other Events

Exhibit 99.1

ITEM 6. SELECTED FINANCIAL DATA

The following table sets forth our consolidated financial data as of and for each of the years in the five year period ended December 31, 2006. The following selected financial data have been derived from our audited historical consolidated financial statements, certain of which are included elsewhere in the Current Report. The selected financial data should be read in conjunction with our financial statements and supplementary data set forth in Exhibit 99.3 and, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Exhibit 99.2.

Results may not be comparable due to acquisitions and/or dispositions that have occurred in the periods presented. The selected financial data for all periods presented below has been prepared reflecting discontinued operations in accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, all revenues and expenses associated with discontinued operations have been excluded from income from continuing operations and assets and liabilities of discontinued operations have been reclassified in the selected financial data.

During the quarter ended June 30, 2007, we made a decision to sell our 50.9% -owned subsidiary, InfoTech USA, Inc., or InfoTech. In addition, on July 2, 2007, our majority-owned subsidiary, Digital Angel Corporation sold its subsidiary, OuterLink Corporation, or OuterLink. As a result, InfoTech and OuterLink have been reclassified for presentation purposes as discontinued operations for all periods presented herein.

	For the Fiscal Year Ended December 31,
	2006			2005			2004			2003			2002
Statement of Operations Data:
Net revenue	$	105,019		$	94,822		$	92,245		$	78,531		$	75,765
Cost of products and services sold		57,824			53,792			63,093			52,946			48,898
Gross profit		47,195			41,030			29,152			25,585			26,867
Selling, general and administrative expense		58,030			45,821			32,962			53,658			64,769
Research and development		7,572			5,871			3,068			6,255			4,130
Goodwill and asset impairment		6,629			—			—			302			38,657
Operating Loss		(25,036	)		(10,662	)		(6,878	)		(34,630	)		(80,689	)
(Loss) gain on sales of subsidiaries and assets		—			—			—			(330	)		132
Gain on extinguishment of debt		—			—			—			70,064			—
Interest and other income		1,347			2,664			1,892			908			2,400
Interest (expense) recovery		(3,219	)		1,935			(2,738	)		(22,569	)		(17,451	)
(Loss) income from continuing operations before benefit (provision) for taxes, minority interest, losses attributable to capital transactions of subsidiaries and equity in net loss of affiliate		(26,908	)		(6,063	)		(7,724	)		13,443			(95,608	)
(Provision) benefit for income taxes		(62	)		434			(66	)		(463	)		(397	)
(Loss) income from continuing operations before minority interest, losses attributable to capital transactions of subsidiaries and equity in net loss of affiliate		(26,970	)		(5,629	)		(7,790	)		12,980			(96,005	)
Minority interest		2,510			(73	)		(415	)		2,094			11,412
Net (loss) gain on capital transactions of subsidiaries		(1,632	)		411			11,090			(244	)		(2,437	)

	For the Fiscal Year Ended December 31,
	2006			2005			2004			2003			2002
Gain (loss) attributable to changes in minority interest as a result of capital transactions of subsidiaries		503			598			(20,203	)		(6,535	)		(2,048	)
Equity in net loss of affiliate		—			—			—			—			(291	)
(Loss) income from continuing operations		(25,589	)		(4,693	)		(17,318	)		8,295			(89,369	)
Loss from discontinued operations, net of income taxes		(1,620	)		(5,556	)		(2,166	)		(4,770	)		(24,536	)
Income (loss) on disposal of discontinued operations, including provision for operating losses during the phase-out period, net of income taxes		—			84			2,185			(382	)		1,420
(Loss) income from discontinued operations		(1,620	)		(5,472	)		19			(5,152	)		(23,116	)
Net (loss) income		(27,209	)		(10,165	)		(17,299	)		3,143			(112,485	)
Preferred stock dividends and other		—			(1,573	)		—			—			—
Accretion of beneficial conversion feature of preferred stock		—			(474	)		—			—			—
Net (loss) income attributable to common stockholders	$	(27,209	)	$	(12,212	)	$	(17,299	)	$	3,143		$	(112,485	)

	For the Fiscal Year Ended December 31,
	2006			2005			2004			2003			2002
Net (loss) income per common share — basic:
Continuing operations	$	(0.38	)	$	(0.11	)	$	(0.34	)	$	0.23		$	(3.32	)
Discontinued operations		(0.02	)		(0.08	)		—			(0.14	)		(0.86	)
Net (loss) income attributable to common shares — basic	$	(0.40	)	$	(0.19	)	$	(0.34	)	$	0.09		$	(4.18	)
Net (loss) income per common share — diluted:
Continuing operations	$	(0.38	)	$	(0.11	)	$	(0.34	)	$	0.22		$	(3.32	)
Discontinued operations		(0.02	)		(0.08	)		—			(0.14	)		(0.86	)
Net (loss) income attributable to common shares — diluted	$	(0.40	)	$	(0.19	)	$	(0.34	)	$	0.08		$	(4.18	)
Average common shares outstanding (amounts in thousands):
Basic		67,338			62,900			51,291			36,178			26,923
Diluted		67,338			62,900			51,291			37,299			26,923

(Loss) Earnings Per Share Adjusted For the Reverse Stock Split - On March 12, 2004, our board of directors authorized a 1-for-10 reverse stock split which was effectuated on April 5, 2004. The reverse stock split had the effect of reducing the number of issued and outstanding shares of our common stock, and accordingly, (loss) earnings per share increased as a result of the decrease in the weighted average number of shares outstanding. The above presents our basic and diluted (loss) earnings per share giving retroactive effect to the reverse stock split.

	As of December 31,
	2006		2005		2004		2003		2002
	(amounts in thousands)
Balance Sheet Data:
Cash and cash equivalents	$	7,271	$	22,062	$	30,603	$	9,510	$	3,208
Restricted cash		81		310		327		765		—
Current assets from discontinued operations		6,213		5,848		6,361		4,467		5,029
Property and equipment		11,751		10,849		7,646		7,931		7,958
Goodwill		82,385		86,231		64,340		63,331		63,297
Other assets from discontinued operations		671		502		8,408		415		4,311
Total assets		171,350		185,958		140,188		111,931		111,156
Current liabilities of discontinued operations		10,517		10,352		10,256		10,339		7,707
Long-term debt		14,211		15,692		2,288		2,860		2,436
Total debt		21,473		18,511		2,485		8,071		84,228
Other liabilities of discontinued operations		1,059		536		745		—		—
Minority interest		47,984		48,325		52,644		21,259		14,613
Minority interest, discontinued operations		1,090		1,437		1,669		1,770		3,809
Stockholders’ equity (deficit)		43,864		66,546		40,844		32,736		(36,092	)