Microchip Implant CEO Is Paid More Than His Company's Revenues
PositiveID (PSID) CEO Scott Silverman made more money last year than his company earned in revenues, according to a recent 10-Q SEC filing. That fact, coupled with his recent failure to sell the company's online medical records business -- despite an announcement that the deal was done -- highlights Silverman's ongoing failure to turn his company around.
PositiveID is best-known for the VeriChip/VeriMed system, which features an implantable RFID microchip that can link to the web-based Health Link medical records system. The product is the subject of continuous dystopian speculation about whether Americans can be persuaded to carry their medical records in a chip under their skin.
In September, the company said it had agreed to sell Health Link, one of its signature offerings:
PositiveID Corporation ... announced today that it has agreed to sell its Health Link personal health record business for $1 million to Health Plexus, LLC.That deal fell through, the company confessed in November:
In September 2010, we agreed to sell our Health Link personal health record business for $1 million to Health Plexus, LLC. In November 2010, we made the decision to terminate those discussions.
The non-sale leaves the VeriMed-VeriChip-Health Link system intact as a business unit inside PositiveID, at least on paper.The company, which did not file an 8-K disclosure with the SEC when the deal was allegedly struck, gave no other details. I've repeatedly failed to uncover any evidence that Health Plexus exists beyond PositiveID's own press releases. (I'm sure that's a mere failure in my reporting and that sooner or later that company or PositiveID will set me straight.)
The collapse of the Health Plexus deal is the second recent strategic flameout from Silverman. He also failed to acquire Digital Angel (DIGA), which makes implantable chips for pets and farm animals.
Last year, PositiveID made only $353,000 in revenues and lost $11.6 million. Yet Silverman (above) received $363,000 in cash compensation, plus another $1.6 million in PSID stock. To restate that -- because it's worth restating -- Silverman took home in cash more than the entire company made in revenues for the year:
PositiveID's earnings report for Q3 2010 shows -- again -- that the company remains unprofitable.
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