POSITIVEID CORP (PSID) - Description of business

Company Description

PositiveID Corporation, incorporated in November 2001, is engaged in developing, marketing and selling radio frequency identification (RFID), systems used for the identification of people in the healthcare market. The Company is focusing on providing health and security identification tools to protect consumers and businesses, operating in two segments: HealthID and ID Security. The Company's HealthID segment is focused on the development of the glucose-sensing microchip, in conjunction with Receptors LLC (Receptors). Its HealthID segment also includes the VeriMed system, which uses an implantable passive RFID microchip (the VeriChip) that is used in patient identification applications. The Company's ID Security segment includes its Identity Security suite of products, sold through its NationalCreditReport.com brand and its Health Link personal health record. NationalCredit-Report.com offers consumers a variety of identity security products and services primarily on a subscription basis.

On November 10, 2009, the Company, VeriChip Acquisition Corp., the Company's wholly owned subsidiary and Steel Vault Corporation (Steel Vault) merged with and into Steel Vault, with Steel Vault surviving and becoming a wholly owned subsidiary of the Company (the Merger). In February 2010, the Company acquired the assets of Easy Check Medical Diagnostics, LLC, including the Easy Check breath glucose detection system and the iGlucose wireless communication system.

Healthcare Products

The Company's Healthcare Products include the development of a glucose-sensing microtransponder. The Company has partnered with Receptors to develop an in-vivo glucose sensor to detect glucose levels in the human body. In conjunction with Receptors, the Company has completed Phase I development of the glucose-sensing microchip and are in Phase II development. The Company's VeriMed system, which includes its VeriChip, is designed to identify people who are unconscious, confused or unable to communicate at the time of medical treatment. Its VeriMed system provides emergency room physicians and staff who use its scanner, linking a patient to the VeriMed Registry to have access to patient pre-approved information, including the patient's name, primary care physician, emergency contact information, advance directives and, if the patient elects, other pertinent data, such as personal health records.

Identity Security

NationalCreditReport.com provides consumer provision of credit reports, credit score and credit monitoring products. This business provides a medium for consumers to retrieve and review their credit history, as well as monitor their credit files with one or all three of the credit reporting bureaus: Experian, Equifax and TransUnion. Its products and services are offered to consumers on a monthly subscription basis.

Health Link Personal Health Record

Health Link is a patient-controlled, online repository to store personal health information, such as medications, allergies, family history, previous surgeries, vaccinations and lab results. Health Link also connects the patient to a multitude of customized materials, such as personalized health education and online connectivity to caregivers.

VeriMed System

VeriMed System improves patient care, improves productivity and lower costs. As of December 31, 2009, more than 100 patients and caregivers have received the VeriChip as part of the study.

Other Applications

During the year ended December 31, 2009, in conjunction with Raytheon Microelectronics Espana, the Company developed an eight millimetre microchip, which has functionality that is substantially equivalent to the VeriChip. The Company also has another system that utilizes the implantable microchip, its VeriTrace system. Its implantable microchips were used to provide an end-to-end tagging solution for the tracking and identification of human remains and associated evidentiary items.