Implantable RFID Chip Company Tries Again To IPO; Despite No Clear Plans To Make Money
from the you-know,-the-important-stuff dept
A little over a year ago, we wrote that Applied Digital Solutions, parent company to implantable RFID chip company, VeriChip, was planning to go public. Apparently, that never happened, as the NY Times has reported that the company is about to file to go public again this week. That article notes much of the criticism the company has faced over the years concerning its products, and also some of the questionable financial situation the company is in, with tremendous losses, not much in the way of demand and no clear plans for profitability. It also mentions the odd structure of the company where it's been kept alive by a series of loans from a subsidiary to the company (which makes implantable RFIDs for pets -- which are common and are quite popular). The article leaves out, however, some of the more questionable behavior from the company in the past, including lying about FDA approval and then ignoring some of the limitations the FDA gave them. Then, of course, any potential investor in the company might also want to read up the time that the company sued IBM after IBM tried to collect on collateral from unpaid loans by Applied Digital (yes, apparently, Applied Digital defaulted on its loans, and when IBM went to collect, Applied Digital sued them). It's hard to believe the company is still in business, let alone has enough people willing to invest money to take it public.