PSID owned 871.754k shares of DIGAD per 10.08 filing: http://www.sec.gov/Archives/edgar/data/924642/000139843213000680/psid20131007c_sc13ga.htm.
DIGAD is trading around 2.00$ today. IF (mite not be enough buying interest their) they could have sold those shares for 2.00*871.754 = 1.742m$. Instead as today's p/r shows, they only sold it for $750k. I guess that's the reason they got the warrants for 300k shares of DIGAD at 2.84$ (ie. to not crash the stock of DIGAD by dumping these shares in the open market).
update: PSID also owned, per today's p/r a convertible note that was convertible into 135.793k of DIGAD stock. It was also included in the sale for total proceeds of $750k.
My take: this was a horrible deal for PSID. Seems to me like some corruption going on. Even if PSID crashed DIGAD's stock and sold all the shares at an avg price of $1.00 (ie. 50% of Digad's current trading price), they'd still get $1.007547m!