SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13G
                                 (Rule 13d-102)
                    INFORMATION TO BE INCLUDED IN STATEMENTS
                  FILED PURSUANT TO RULE 13d-1(b), (c) AND (d)
                AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(b)

                               (AMENDMENT NO. __)*

                            DIGITAL ANGEL CORPORATION
                       -----------------------------------
                                (Name of Issuer)

                    Common Stock, $0.005 par value per share
                    ----------------------------------------
                         (Title of Class of Securities)

                                    253830103
                                    ---------
                                 (CUSIP Number)

                                 August 31, 2007
                                 --------------
             (Date of Event which Requires Filing of this Statement)

Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

         |_| Rule 13d-1 (b)
         |X| Rule 13d-1 (c)
         |_| Rule 13d-1 (d)

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).


CUSIP No. 253830103
--------- ----------------------------------------------------------------------
1         NAME OF REPORTING PERSON: Laurus Master Fund, Ltd.
          S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 98-0337673
--------- ----------------------------------------------------------------------
2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a) |_|
                                                                      (b) |X|
--------- ----------------------------------------------------------------------
3         SEC USE ONLY

--------- ----------------------------------------------------------------------
4         CITIZENSHIP OR PLACE OF ORGANIZATION
          Cayman Islands
--------- ----------------------------------------------------------------------
NUMBER OF    5    SOLE VOTING POWER:  0 shares of Common Stock. *
SHARES       ---- --------------------------------------------------------------
BENEFICIALLY 6    SHARED VOTING POWER:  4,459,674 shares of Common Stock.  *
OWNED BY     ---- --------------------------------------------------------------
EACH         7    SOLE DISPOSITIVE POWER:  0 shares of Common Stock. *
REPORTING    ---- --------------------------------------------------------------
PERSON       8    SHARES DISPOSITIVE POWER:  4,459,674 shares of Common Stock. *
--------- ----------------------------------------------------------------------
9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
          4,459,674 shares of Common Stock
--------- ----------------------------------------------------------------------
10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
          |X|
--------- ----------------------------------------------------------------------
11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
          9.99%
--------- ----------------------------------------------------------------------
12        TYPE OF REPORTING PERSON
          CO, HC
--------- ----------------------------------------------------------------------


---------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.


CUSIP No. 253830103
---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON: Kallina Corporation
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 20-5823125
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP           (a) |_|
                                                                      (b) |X|
---------- ---------------------------------------------------------------------
3          SEC USE ONLY

---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION
           Delaware
-------------------- ---------- ------------------------------------------------
NUMBER OF    5    SOLE VOTING POWER:  0 shares of Common Stock. *
SHARES       ---- --------------------------------------------------------------
BENEFICIALLY 6    SHARED VOTING POWER:  4,459,674 shares of Common Stock. *
OWNED BY     ---- --------------------------------------------------------------
EACH         7    SOLE DISPOSITIVE POWER:  0 shares of Common Stock. *
REPORTING    ---- --------------------------------------------------------------
PERSON       8    SHARES DISPOSITIVE POWER:  4,459,674 shares of Common Stock. *
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
           4,459,674 shares of Common Stock
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
           |X|
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
           9.99%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON
           CO
---------- ---------------------------------------------------------------------


--------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.





CUSIP No. 253830103
---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON: Laurus Capital Management, LLC
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:  13-4150669
---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP           (a) |_|
                                                                      (b) |X|
---------- ---------------------------------------------------------------------
3          SEC USE ONLY

---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION
           Delaware
-------------------- ---------- ------------------------------------------------
NUMBER OF    5    SOLE VOTING POWER:  0 shares of Common Stock. *
SHARES       ---- --------------------------------------------------------------
BENEFICIALLY 6    SHARED VOTING POWER:  4,459,674 shares of Common Stock. *
OWNED BY     ---- --------------------------------------------------------------
EACH         7    SOLE DISPOSITIVE POWER:  0 shares of Common Stock. *
REPORTING    ---- --------------------------------------------------------------
PERSON       8    SHARES DISPOSITIVE POWER:  4,459,674 shares of Common Stock. *
---------- ---------------------------------------------------------------------
9          AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
           4,459,674 shares of Common Stock
---------- ---------------------------------------------------------------------
10         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
           |X|
---------- ---------------------------------------------------------------------
11         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
           9.99%
---------- ---------------------------------------------------------------------
12         TYPE OF REPORTING PERSON
           OO
---------- ---------------------------------------------------------------------


--------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.




CUSIP No. 253830103
---------- ---------------------------------------------------------------------
1          NAME OF REPORTING PERSON: David Grin

---------- ---------------------------------------------------------------------
2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP    (a) |_|
                                                               (b) |X|
---------- ---------------------------------------------------------------------
3          SEC USE ONLY

---------- ---------------------------------------------------------------------
4          CITIZENSHIP OR PLACE OF ORGANIZATION
           Israel
-------------------- ---------- ------------------------------------------------
NUMBER OF    5    SOLE VOTING POWER:  0 shares of Common Stock. *
SHARES       ---- --------------------------------------------------------------
BENEFICIALLY 6    SHARED VOTING POWER:  4,459,674 shares of Common Stock. *
OWNED BY     ---- --------------------------------------------------------------
EACH         7    SOLE DISPOSITIVE POWER:  0 shares of Common Stock. *
REPORTING    ---- --------------------------------------------------------------
PERSON       8    SHARES DISPOSITIVE POWER:  4,459,674 shares of Common Stock. *
--------- ----------------------------------------------------------------------
9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
          4,459,674 shares of Common Stock
--------- ----------------------------------------------------------------------
10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
          |X|
--------- ----------------------------------------------------------------------
11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
          9.99%
--------- ----------------------------------------------------------------------
12        TYPE OF REPORTING PERSON
          IN
--------- ----------------------------------------------------------------------


--------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.




CUSIP No. 253830103
--------- ----------------------------------------------------------------------
1         NAME OF REPORTING PERSON:  Eugene Grin
--------- ----------------------------------------------------------------------
2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP      (a) |_|
                                                                (b) |X|
--------- ----------------------------------------------------------------------
3         SEC USE ONLY
--------- ----------------------------------------------------------------------
4         CITIZENSHIP OR PLACE OF ORGANIZATION
          United States
------------------- ---------- -------------------------------------------------
NUMBER OF    5    SOLE VOTING POWER:  0 shares of Common Stock.*
SHARES       ---- --------------------------------------------------------------
BENEFICIALLY 6    SHARED VOTING POWER:  4,459,674 shares of Common Stock. *
OWNED BY     ---- --------------------------------------------------------------
EACH         7    SOLE DISPOSITIVE POWER:  0 shares of Common Stock. *
REPORTING    ---- --------------------------------------------------------------
PERSON       8    SHARES DISPOSITIVE POWER:  4,459,674 shares of Common Stock. *
--------- ----------------------------------------------------------------------
9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
          4,459,674 shares of Common Stock
--------- ----------------------------------------------------------------------
10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
          |X|
--------- ----------------------------------------------------------------------
11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
          9.99%
--------- ----------------------------------------------------------------------
12        TYPE OF REPORTING PERSON
          IN
--------- ----------------------------------------------------------------------


--------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.





CUSIP No. 253830103

Item 1(a).  Name of Issuer: Digital Angel Corporation

Item 1(b).  Address of Issuer's Principal Executive Offices:
            490 Villaume Avenue
            South St. Paul, MN 55075

Item 2(a).  Name of Person Filing: Laurus Master Fund, Ltd.

            This Schedule 13G is also filed on behalf of Kallina Corporation,  a
            Delaware  corporation and a wholly owned subsidiary of Laurus Master
            Fund,  Ltd.,  Laurus  Capital  Management,  LLC, a Delaware  limited
            liability  company,  Eugene  Grin and  David  Grin.  Laurus  Capital
            Management,  LLC manages  Laurus Master Fund,  Ltd.  Eugene Grin and
            David Grin, through other entities,  are the controlling  principals
            of  Laurus  Capital  Management,  LLC  and  share  sole  voting  and
            investment  power  over the  shares  owned by  Kallina  Corporation.
            Information  related  to each of  Laurus  Capital  Management,  LLC,
            Eugene Grin and David Grin is set forth on Appendix A hereto.

Item 2(b).  Address of Principal Business Office or if none, Residence:
            c/o Laurus Capital Management, LLC, 335
            Madison Avenue, 10th Floor, New York, NY 10017

Item 2(c).  Citizenship:  Cayman Islands

Item 2(d).  Title of Class of Securities: Common Stock ("Common Stock")

Item 2(e).  CUSIP Number:  253830103

Item 3.     Not Applicable

Item 4.     Ownership:

       (a)  Amount Beneficially Owned: 4,459,674 shares of Common Stock

       (b)  Percent of Class: 9.99%

       (c)  Number of shares as to which such person has:

            (i)   sole power to vote or to direct  the vote:  0 shares of Common
                  Stock. *


            (ii)  shared power to vote or to direct the vote:  4,459,674  shares
                  of Common Stock. *

            (iii) sole  power to  dispose  or to direct  the  disposition  of: 0
                  shares of Common Stock. *

            (iv)  shared  power to  dispose  or to direct  the  disposition  of:
                  4,459,674 shares of Common Stock. *

Item 5.     Ownership of Five Percent or Less of a Class:
            Not applicable

Item 6.     Ownership of More than Five Percent on Behalf of Another Person:
            Not applicable

Item 7.     Identification and Classification of Subsidiary Which Acquired the
            Securities:  Not applicable (see Item 2(a))

Item 8.     Identification and Classification of Members of the Group:
            Not applicable (see Item 2(a))

Item 9.     Notice of Dissolution of Group: Not applicable

Item 10.    Certification:

            By signing  below, I certify to the best of my knowledge and belief,
the  securities  referred  to above were not  acquired  and are not held for the
purpose of or with the effect of  changing  or  influencing  the  control of the
issuer of the  securities  and were not acquired and are not held in  connection
with or as a participant in any transaction having that purpose or effect.


-----------------------------------
         * Based on 44,641,388 shares of the common stock,  $0.005 par value per
share (the  "Shares")  outstanding  of  Digital  Angel  Corporation,  a Delaware
corporation (the "Company"),  as disclosed in the Company's  Quarterly Report on
Form 10-Q for the fiscal  quarter  ended June 30,  2007.  As of August 31, 2007,
Kallina  Corporation  ("Kallina")  held (i) a warrant  (the "July  Warrant")  to
acquire  125,000  Shares,  at an exercise price of $2.68 per Share for the first
75,000 Shares  acquired  thereunder,  $2.91 per Share for the next 35,000 Shares
acquired  thereunder,   $3.38  per  Share  for  the  remaining  Shares  acquired
thereunder,  subject to certain  adjustments,  and (ii) a warrant  (the  "August
Warrant")  to acquire  967,742  Shares at an exercise  price of $1.69 per Share,
subject to certain adjustments. The July Warrant contains an issuance limitation
prohibiting Kallina from exercising or converting those securities to the extent
that such exercise would result in beneficial  ownership by Kallina of more than
4.99%  of  the  Shares  then  issued  and   outstanding   (the  "4.99%  Issuance
Limitation").  The August Warrant  contains an issuance  limitation  prohibiting
Kallina from exercising or converting  those  securities to the extent that such
exercise  would result in beneficial  ownership by Kallina of more than 9.99% of
the Shares then issued and outstanding  (the "9.99% Issuance  Limitation").  The
4.99% Issuance  Limitation may be waived by Calliope upon at least 75 days prior
notice to the Company  and shall  automatically  become null and void  following
notice to the Company of the occurrence  and during the  continuance of an event
of  default  (as  defined  in and  pursuant  to  the  terms  of  the  applicable
instrument).  The 9.99%  Issuance  Limitation  may be waived by Calliope upon at
least 61 days prior  notice to the Company and shall  automatically  become null
and void  following  notice to the  Company  of the  occurrence  and  during the
continuance  of an event of default (as defined in and  pursuant to the terms of
the  applicable  instrument).  Kallina is a wholly  owned  subsidiary  of Laurus
Master Fund,  Ltd. which is managed by Laurus Capital  Management,  LLC.  Eugene
Grin and David Grin, through other entities,  are the controlling  principals of
Laurus Capital  Management,  LLC and share voting and investment  power over the
securities owned by Calliope reported in this Schedule 13G.


CUSIP No. 253830103

                                    SIGNATURE

After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

                                    September 12, 2007
                                    ----------------
                                    Date

                                    LAURUS MASTER FUND, LTD.

                                    /s/ David Grin
                                    ----------------
                                    David Grin
                                    Director



CUSIP No. 253830103

APPENDIX A

A. Name:             Kallina Corporation, a Delaware Corporation
                     335 Madison Avenue, 10th Floor
                     New York, New York 10017
   Place of
   Organization:     Delaware


B. Name:             Laurus Capital Management, LLC, a Delaware limited
                     liability company 335 Madison Avenue, 10th Floor
                     New York, New York 10017
   Place of
   Organization:     Delaware


C. Name:             David Grin
   Business          335 Madison Avenue, 10th Floor
   Address:          New York, New York 10017

   Principal         Director of Laurus Master Fund, Ltd.
   Occupation:       Principal of Laurus Capital Management, LLC
   Citizenship:      Israel


D. Name:             Eugene Grin
   Business          335 Madison Avenue, 10th Floor
   Address:          New York, New York 10017

   Principal         Director of Laurus Master Fund, Ltd.
   Occupation:       Principal of Laurus Capital Management, LLC
   Citizenship:      United States



CUSIP No. 253830103

Each of Kallina  Corporation,  Laurus Capital  Management,  LLC, Eugene Grin and
David Grin hereby  agree,  by their  execution  below,  that the Schedule 13G to
which  this  Appendix  A is  attached  is  filed  on  behalf  of each  of  them,
respectively.

Kallina Corporation

/s/ Eugene Grin
-----------------------------------------
    Eugene Grin
    Chairman, President, Secretary
    September 12, 2007


Laurus Capital Management, LLC

/s/ David Grin
-----------------------------------------
    David Grin
    Principal
    September 12, 2007

/s/ David Grin
-----------------------------------------
    David Grin
    September 12, 2007

/s/ Eugene Grin
-----------------------------------------
    Eugene Grin
    September 12, 2007