On August 24, 2007, a majority-owned subsidiary of Applied Digital Solutions, Inc., Digital Angel Corporation ("Digital Angel") entered into Amendment No. 6 to the Securities Purchase Agreement, between Imperium Master Fund, Ltd. ("Imperium") and Digital Angel ("Amendment No. 6"). Pursuant to the terms of Amendment No. 6, Imperium and Digital Angel agreed to extend the repayment date of Digital Angel's 10.25% senior secured debentures by up to one month, or until September 27, 2007. The extension was granted without cost to Digital Angel. As previously disclosed, Digital Angel delivered on June 28, 2007, a sixty-day prepayment notice per the terms of Digital Angel's 10.25% senior secured debentures and, accordingly, Digital Angel will pay 102% of the outstanding principal amount of the debentures on the repayment date plus all accrued and unpaid interest.

On August 27, 2007, Digital Angel issued a press release announcing that Digital Angel finalized a global settlement of its patent infringement litigation against Datamars, Inc., Datamars S.A., The Crystal Import Corporation and Medical Management International, Inc. (collectively, "Datamars"). Under the terms of the settlement agreement, Datamars made a lump sum payment to Digital Angel, the parties granted mutual releases, Digital Angel dismissed the infringement claims against Datamars, and Digital Angel was dismissed from the antitrust litigation. Digital Angel also granted a non-exclusive license to Datamars for syringe-implantable identification transponders that could reasonably be alleged to be covered by the patent at issue in the infringement litigation. The financial terms of the settlement have not been disclosed.

(d) Exhibits

10.1   Amendment No. 6 to the Securities Purchase Agreement, dated as of
       August 24, 2007, between Digital Angel Corporation and Imperium Master
       Fund, Ltd.