Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events

14. Subsequent Events

As disclosed in Note 17 to the audited consolidated financial statements of the Company’s Annual Report on 10-K for the year ended December 31, 2011, in January 2012, Bluehill ID AG, a majority-owned subsidiary of the Company acquired approximately 58.8% of the outstanding shares of payment solution, a company organized under the laws of Germany. Subsequently, on April 2, 2012, the Company entered into a Share Exchange Agreement with an additional selling shareholder of payment solution, pursuant to which the Company acquired additional shares of payment solution and increased its ownership to approximately 82.5% of the outstanding capital stock of payment solution. In exchange for the additional shares of payment solution, the Company issued 548,114 shares of its Common Stock to the selling shareholder, having a value of approximately $1.2 million. The shares were issued to a qualified investor outside the United States in reliance on the exemption provided by Regulation S under the U.S. Securities Act of 1933 from the registration requirements of such Act, as well as comparable exemptions under applicable foreign securities laws.