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, 2007. The selected financial data should be read in conjunction with our consolidated financial statements and related notes, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and other financial information appearing elsewhere in the Annual Report on Form 10-K for the year ended December, 31, 2007 as filed with the Securities and Exchange Commission on March 17, 2008. The Statement of Operations Data set forth below for each of the years in the three-year period ended December 31, 2007, and the Balance Sheet Data as of December 31, 2007 and 2006 have been derived from, and qualified by reference to, our financial statements appearing elsewhere in the Annual Report. The Statement of Operations Data for the years ended December 31, 2004 and 2003, and the Balance Sheet Data as of December 31, 2005, 2004 and 2003 are derived from audited financial statements not included in the Annual Report. The selected financial data give effect to the classification of the accounts of the our subsidiaries, Florida Decision Corporation (formerly Pacific Decision Sciences Corporation) and ThermoLife Energy Corp., which the we decided to sell during the three months ended March 31, 2008, as discontinued operations for all periods presented. See notes 1 and 16 to the consolidated financial statements.

	For the Fiscal Year Ended December 31,
	2007			2006			2005			2004			2003
	(in thousands)
Statement of Operations Data:
Revenue	$	109,900		$	81,359		$	69,721		$	44,707		$	35,989
Cost of sales		63,923			43,559			36,057			24,902			20,617
Gross profit		45,977			37,800			33,664			19,805			15,372
Selling, general and administrative expense		67,852			51,660			39,037			25,958			46,001
Research and development		9,379			7,228			5,493			2,712			6,255
Goodwill impairment charges		4,632			—			—			—			—
Operating loss		(35,886	)		(21,088	)		(10,866	)		(8,865	)		(36,884	)
Gain (loss) on sale of assets		691			—			—			—			(330	)
Gain on extinguishment of debt		—			—			—			—			70,064
Interest and other income		223			1,344			2,119			1,889			896
Interest (expense) recovery		(6,930	)		(3,155	)		1,984			(2,728	)		(22,458	)
(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		(41,902	)		(22,899	)		(6,763	)		(9,704	)		11,288
Benefit (provision) for income taxes		896			165			600			(1	)		(191	)
(Loss) income from continuing operations before minority interest, losses attributable to capital transactions of subsidiaries and equity in net loss of affiliate		(41,006	)		(22,734	)		(6,163	)		(9,705	)		11,097
Minority interest		12,245			2,510			(73	)		(415	)		2,094
Net gain (loss) on capital transactions of subsidiaries		3,158			(1,632	)		411			11,090			(244	)
(Loss) gain attributable to changes in minority interest as a result of capital transactions of subsidiaries		(9,437	)		503			598			(20,203	)		(6,535	)
(Loss) income from continuing operations		(35,040	)		(21,353	)		(5,227	)		(19,233	)		6,412
Income (loss) from discontinued operations		3,020			(5,856	)		(4,938	)		1,934			(3,269	)
Net (loss) income		(32,020	)		(27,209	)		(10,165	)		(17,299	)		3,143
Preferred stock dividends and other		—			—			(1,573	)		—			—
Accretion of beneficial conversion feature of preferred stock		—			—			(474	)		—			—
Net (loss) income attributable to common stockholders	$	(32,020	)	$	(27,209	)	$	(12,212	)	$	(17,299	)	$	3,143

(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 table below presents our basic and diluted (loss) earnings per share giving retroactive effect to the reverse stock split.

	For the Fiscal Year Ended December 31,
	2007			2006			2005			2004			2003
	(in thousands)
Net (loss) income per common share — basic:
Continuing operations	$	(0.51	)	$	(0.32	)	$	(0.12	)	$	(0.38	)	$	0.18
Discontinued operations		0.05			(0.08	)		(0.07	)		0.04			(0.09	)
Net (loss) income attributable to common shares — basic	$	(0.46	)	$	(0.40	)	$	(0.19	)	$	(0.34	)	$	0.09
Net (loss) income per common share — diluted:
Continuing operations	$	(0.51	)	$	(0.32	)	$	(0.12	)	$	(0.38	)	$	0.17
Discontinued operations		0.05			(0.08	)		(0.07	)		0.04			(0.09	)
Net (loss) income attributable to common shares — diluted	$	(0.46	)	$	(0.40	)	$	(0.19	)	$	(0.34	)	$	0.08
Average common shares outstanding (in thousands):
Basic		69,122			67,338			62,900			51,291			36,178
Diluted		69,122			67,338			62,900			51,291			37,299

	As of December 31,
	2007		2006		2005		2004		2003
	(in thousands)
Balance Sheet Data:
Cash and cash equivalents	$	9,443	$	7,067	$	22,001	$	30,076	$	9,123
Restricted cash		90		81		310		327		765
Current assets from discontinued operations		7,682		11,223		13,974		12,546		14,552
Property and equipment		12,966		11,289		10,387		7,194		7,602
Goodwill and intangibles, net		93,948		91,002		89,587		47,632		46,623
Other assets from discontinued operations		2,249		11,339		19,342		25,776		17,586
Total assets		171,689		172,225		185,958		140,188		111,931
Current liabilities of discontinued operations		6,332		20,943		20,337		18,704		22,062
Long-term debt		17,217		14,192		15,657		2,288		4,767
Total debt		32,963		21,438		18,461		2,485		9,928
Other liabilities of discontinued operations		2,631		2,267		571		745		1,523
Minority interest		12,811		47,984		48,325		52,644		21,259
Minority interest, discontinued operations		554		1,090		1,437		1,669		1,770
Stockholders’ equity		70,995		43,864		66,546		40,844		32,736