Item 1.02 Termination of a Material Definitive Agreement.

On July 18, 2008, the Company's 48.3% owned subsidiary VeriChip Corporation ("VeriChip") sold its wholly-owned subsidiary Xmark Corporation to the Stanley Canada Corporation, a wholly-owned subsidiary of The Stanley Works, for $47.9 million in cash (the "Sale").

From the proceeds of the Sale, VeriChip paid the Company a cash amount of approximately $5.3 million on July 18, 2008. $4.8 million of this amount was to prepay all of its outstanding obligations to the Company under the Third Amended and Restated Revolving Line of Credit Note Working Capital dated as of February 8, 2007, as amended, payable by VeriChip to the Company ("Note"), that had been issued pursuant to the Commercial Loan Agreement dated December 27, 2005, as amended, between the Company and VeriChip. This amount reflects the prepayment discount as provided by previously disclosed agreements. As a result of the prepayment discount, the Company will record a loss on debt forgiveness of approximately $2.5 million in its third fiscal quarter.

On July 21, 2008, the Company issued a press release regarding the Sale. A copy of the press release is attached hereto as Exhibit 99.1, which is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Exhibit 99.1 shall not be incorporated by reference into any filing under the Securities Exchange Act of 1934 or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release dated July 21, 2008

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