Edgar Filing: ADVANCED ID CORP

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

Amendment 2 to
FORM SB-2
Registration Statement
Under the Securities Act of 1933

Advanced ID Corporation
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Nevada 3825 46-0439668
(State or other jurisdiction (Primary Standard (I.R.S. Employer
of incorporation or Industrial Classification Identification
organization) Code Number) Number)

Daniel Finch
4500 - 5th Street NE 4500 - 5th Street NE
#200 Bay 6 #200 Bay 6
Calgary, Alberta Calgary, Alberta,
Canada T2E 7C3 Canada T2E 7C3
(403) 264-6300 (403) 264-6300
(Address, and telephone number (Name, address and telephone number
of principal executive offices) of agent for service)

Copies to:
Ms. Jody Walker ESQ.
7841 South Garfield Way
Littleton, CO 80122
Phone 303-850-7637 Fax 303-220-9902

APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As
soon as practicable after this Registration Statement becomes
effective.

If this form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering.
[ ]

If this form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]

If this form is a post-effective amendment filed pursuant to Rule
462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]

If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box [x]

CALCULATION OF REGISTRATION FEE

TITLE OF EACH CLASS OF AMOUNT PROPOSED PROPOSED AMOUNT OF
SECURITIES TO BE BEING MAXIMUM MAXIMUM REGISTRATION
REGISTERED REGISTERED OFFER PRICE AGGREGATE FEE
PER SHARE OFFER PRICE

Units 6,000,000 $0.24 1,440,000 $169.49
Warrants 6,000,000 $0.10(8) 600,000 70.62
Common Stock(1) 6,000,000 $0.24 1,440,000 169.49
Common Stock(2) 6,000,000 $0.40 2,400,000 282.48
Common Stock(3) 140,000 $0.25 35,000 4.12
Common Stock(4) 1,194,584 $0.30 358,375 42.18
Common Stock(5) 350,000 $0.35 122,500 14.42
Common Stock(6) 100,000 $0.36 36,000 4.24
Common Stock(7) 1,806,667 $0.40 722,667 85.06
--------- ---------- -------
Total $8,134,542 $842.10

(1) Represents common stock from each unit purchased. One unit is
comprised of one common share and one common stock purchase warrant.
(2) Represents common stock from each warrant exercised. The exercise
price is $0.40 per warrant and one warrant acquires one common share.
(3) Represents common stock underlying currently outstanding warrants.
The exercise price is $0.25 per warrant and one warrant acquires one
common share.
(4) Represents common stock underlying currently outstanding warrants.
The exercise price is $0.30 per warrant and one warrant acquires one
common share.
(5) Represents common stock underlying currently outstanding warrants.
The exercise price is $0.35 per warrant and one warrant acquires one
common share.
(6) Represents common stock underlying currently outstanding warrants.
The exercise price is $0.36 per warrant and one warrant acquires one
common share.
(7) Represents common stock underlying currently outstanding warrants.
The exercise price is $0.40 per warrant and one warrant acquires one
common share.
(8) Estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457(a), (c) and (g) under the Securities Act of
1933, as amended.

The Registrant amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this
registration statement shall hereafter become effective in accordance
with Section 8(a) of the Securities Act of 1933, or until the
registration statement shall become effective on such date as the
Commission, acting pursuant to Section 8(a), may determine.

Preliminary Prospectus Dated November 8, 2007. SUBJECT TO COMPLETION

$1,440,000

Up to a maximum of 6,000,000 Units and
3,591,251 Common Shares to be issued upon exercise of
3,591,251 outstanding Warrants

Advanced ID Corporation

Advanced ID is registering 6,000,000 units at the purchase price of
$.24 per unit for the aggregate offering price of $1,440,000. Each
unit consists of one common share and one common stock purchase
warrant. The securities are immediately detachable from the unit. The
warrants are exercisable for three years from the effective date of
this registration statement at $.40 per common share. Additionally, we
are registering 3,591,251 common shares to be issued upon the exercise
of 3,591,251 currently outstanding warrants.

The offering will commence on the effective date of this prospectus and
will terminate on or before August 30, 2008.

Our common stock is currently listed on the NASD Over-The-Counter
Bulletin Board under the trading symbol "AIDO".

We will sell the units ourselves and do not plan to use underwriters or
pay any commissions. We will be selling our units using our best
efforts and no one has agreed to buy any of our units. There is no
minimum amount of units we must sell so no money raised from the sale
of such units will go into escrow, trust or another similar
arrangement.

Consider carefully the risk factors beginning on page 6 in this
prospectus.

Neither the SEC nor any state securities commission has approved these
units or determined that this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.

The information in this prospectus is not complete and may be changed.
We may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This
prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any state where the
offer or sale is not permitted.

Proceeds of the Offering
Per Unit Total
Offering Price $0.24 $1,440,000
Proceeds to Advanced ID, before expenses $0.24 $1,440,000

4
TABLE OF CONTENTS

Prospectus Summary 5
Risk Factors 6
Forward Looking Statements 10
Use of Proceeds 11
Plan of Distribution 12
Business Operations 13
Dilution 23
Dividend Policy 24
Determination of Offering Price 24
Management's Discussion and Analysis of Financial
Condition and Results of Operations 24
Directors, Executive Officers Control Persons 27
Security Ownership of Certain Beneficial Owners
and Management 30
Certain Relationships and Related Transactions 32
Description of Capital Stock 34
Shares Eligible for Future Sale 35
Disclosure of Commission Position on Indemnification 36
for Securities Act liabilities
Market for Common Stock and Related Stockholder
Matters 36
Experts 37
Legal Proceedings 37
Legal Matters 37
Where You Can Find More Information 37
Financial Statements 39

PROSPECTUS SUMMARY

To understand this offering fully, you should read the entire
prospectus carefully, including the risk factors beginning on page 6
and the financial statements.

Operations. Advanced ID has three subsidiaries, Advanced ID
Asia Engineering Co. Ltd. (formerly AFG Asia
Engineering Co. Ltd.) AVID Canada Corporation
and Universal Pet Care, both of whom are wholly
owned. AVID Canada Corporation is a reseller
of radio frequency identification microchips
and scanners manufactured by American
Veterinary Identification Devices of the United
States under the brand name AVID. AVID Canada
does not own the AVID brand name or trademark.
There currently exists no distribution
agreement with AVID. Advanced ID Corporation
began manufacturing and selling their own ISO
microchips in 2006. The AVID products are
marketed to the companion animal and biological
sciences sectors in Canada only, the ISO
microchips are sold in North America, Asia and
Europe. Universal Pet Care is a non-operating
entity with no assets or liabilities.

On July 1, 2005 Advanced ID concluded an
agreement to acquire a 60% interest in AFG Asia
Engineering Co. Ltd. of Chiang Mai, Thailand to
strengthen its resources in the radio frequency
identification market. AFG Asia Engineering is
a leader in the design and development of ultra
high frequency radio frequency identification
technology.

Advanced ID develops, manufactures and sells,
either directly or through distributors,
microchip identification technologies referred
to as radio frequency identification microchips
and readers to the animal industry. In the
second quarter of 2004, we began
commercializing these products under the brand
name, DataTRAC(tm). The intellectual property
rights to the DataTRAC(tm) products are owned by
Advanced ID Corporation. Sales of microchips
and readers to the companion animal and
biological sciences markets in Canada continue
to contribute a majority of our income in 2006,
additionally sales of Ultra High Frequency
animal tags and readers were made to the states
of New York and Colorado for the purpose of
identifying captive Elk and Deer who are
potential carriers of Chronic Wasting Syndrome
Disease. Additionally Advanced ID Corporation

6
continues to sell UHF identification tags to
Goodyear Tire and Rubber Company under several
purchase orders continuing into 2007. Tire tag
and tire patch sales have been made to VAR's in
several countries for trial or pilot runs.
Readers for the tire tag market have been sold
to tire manufacturers and resellers in India,
Canada, Mexico, Venezuela, Australia, Japan and
the United States. Michelin US has purchased
multiple readers.

Common stock
Outstanding 54,937,845

Units comprised of
common shares and
warrants being sold
in this offering 6,000,000

Common shares to be
issued upon exercise
of warrants comprised
in the units being
sold in this offering 6,000,000

Common shares to be
issued upon exercise
of outstanding
warrants 3,591,251

Termination of the
Offering The offering will commence on the effective
date of this prospectus and will terminate on
or before August 31, 2008.

Market for our
common stock Our common stock is listed on the NASD Over-
The-Counter Bulletin Board under the trading
symbol "AIDO". We can provide no assurance
that there will be an active market for our
common stock.

RISK FACTORS

Advanced ID's business is subject to numerous risk factors, including
the following.

1. We cannot offer any assurance as to our future financial results.
You may lose your entire investment.

We have not received substantial income from operations to date and
future financial results are uncertain. We cannot assure you that
Advanced ID can operate in a profitable manner. We have an accumulated

deficit of $(7,647,323) as of June 30, 2007. Even if we obtain future
revenues sufficient to expand operations, increased production or
marketing expenses would adversely affect liquidity of Advanced ID. In
their opinion on our financial statements as of and for the year ended
December 31, 2006, our auditors have indicated that there is
substantial doubt about our ability to continue as a going concern.

2. We do not have an active market in our securities. If our common
stock has no active trading market, you may not be able to sell your
common shares at all.

We do not have an active public market for our common shares. The
trading volume of our securities on the OTC Bulletin Board has averaged
307,926 shares per day over the last twelve months ended December 2006
ranging from an average low of 45,284 shares per day in the month of
June 2006 to an average high of 2,120,939 shares per day during the
month of April 2006. We cannot assure you that an active public market
will ever develop. Consequently, you may not be able to liquidate your
investment in the event of an emergency or for any other reason.

3. We do not meet the requirements for our stock to be quoted on
NASDAQ, American Stock Exchange or any other senior exchange and even
though our stock is quoted on the OTC Bulletin Board, the tradability
in our stock will be limited under the penny stock regulation.

The liquidity of our common stock is restricted as Advanced ID's common
stock falls within the definition of a penny stock.

Under the rules of the Securities and Exchange Commission, if the price
of the company's common stock on the OTC Bulletin Board is below $5.00
per share, the company's common stock will come within the definition
of a "penny stock." As a result, Advanced ID's common stock is subject
to the "penny stock" rules and regulations. Broker-dealers who sell
penny stocks to certain types of investors are required to comply with
the Commission's regulations concerning the transfer of penny stock.
These regulations require broker-dealers to:
- Make a suitability determination prior to selling penny stock to
the purchaser;
- Receive the purchaser's written consent to the transaction; and
- Provide certain written disclosures to the purchaser.

These requirements may restrict the ability of broker/dealers to sell
the company's common stock, and may affect the ability to resell the
company's common stock.

4. Our cash balances in banks and brokerage firms may exceed the
insurance limits. Our liquidity may be negatively affected if these
institutions should fail.

At June 30, 2007, we maintained cash balances with the Bank of
Montreal, Canadian Imperial Bank of Commerce and Bank One. Balances
are insured up to $100,000 by the Federal Deposit Insurance
Corporation. At times, balances may exceed such insurance limits. Our
liquidity may be negatively affected if these institutions should fail.

5. We are dependent on Dan Finch and key management personnel. The
failure to attract and retain the necessary personnel could have a
materially adverse effect on our business, operations and financial
condition.

Our success is dependent upon, among other things, the services of Dan
Finch CEO & President. The loss of Mr. Finch's services could have a
material adverse effect on our business, operations and financial
condition. We do not have key-man life insurance policy for Mr. Finch.
The expansion of our business will place further demands on existing
management and future growth. Profitability will depend, in part, on
our ability to hire and retain the necessary personnel to operate our
business. There is no certainty that we will be able to identify,
attract, hire, train, retain and motivate other highly skilled
technical, administrative, managerial, marketing and customer service
personnel. Competition for such personnel is intense and there is no
certainty that we will be able to successfully attract, integrate or
retain sufficiently qualified personnel. The failure to attract and
retain the necessary personnel could have a materially adverse effect
on our business, operations and financial condition.

6. We are in an intensely competitive industry. There are numerous
competitors offering various components of the type of products and
services we offer. Also, there is no certainty that additional
competitors will not enter markets that we intend to serve.

We believe that our ability to compete depends on many factors both
within and beyond our control. At this time, there are a few other
companies offering similar services as those intended to be offered by
us. It should be expected that in the future we would be competing
with additional companies, many of which may have greater financial
resources than our company. There is no certainty that we will be able
to compete successfully in this market.

7. Changes in foreign policies could have an adverse effect on our
operations. A portion of our marketing will be done international
distributors.

To date we have entered into three distribution agreements with
international distributors. In May 2003, we signed an agreement with
Loving Kindness International Technology Co., Ltd. for the distribution
of our products in Taiwan. In November 2003, we entered into an
agreement with Natural Fields S.A. of Argentina for distribution in
that country. In January 2004, we signed an agreement with Trace
Australia Pty Ltd. as its exclusive distributor for Australia. As of
May 30, 2007, all three distribution agreements remained in place.

There is no certainty that our marketing strategies will be effectively
implemented. Changes in foreign policies by international governments
could have a material negative effect on our marketing strategies.

8. Our success may depend on the ability of our distributors to
implement viable marketing initiatives.

We intend to offer the majority of our products and services through a
network of independent distributors. Our success is dependent upon the
ability of these distributors to implement viable marketing
initiatives. Many of these distributors may carry products from
several different companies. There is a risk that these distributors
will give priority to the products of other suppliers. The reduction
or loss in sales by one or more of our key distributors, or the
inability to attract new distributors, could have a material adverse
effect on our business.

9. Changes in the foreign exchange rate could negatively affect our
profitability.

We face foreign exchange rate exposure. We will offer payment for our
products and services in U.S. dollars except for our Canadian customers
who will pay us in Canadian dollars. With the majority of expenses
expected to be in Canadian dollars, we will be exposed to fluctuations
in foreign exchange rates from both a transactional and transnational
perspective. There is a risk that foreign exchange rate fluctuations
between the Canadian dollar and the U.S. dollar will be disadvantageous
to us.

10. We may be subject to product obsolescence that could result in
reduced profitability.

The markets for our products are characterized by evolving industry
standards, technological changes and changing customer needs. The
introduction of products embodying new technologies and the emergence
of new microchips or software could render our existing products
obsolete and unmarketable. Consequently, our success will depend upon
our ability to successfully develop and introduce new and enhanced
products that evolves with technological and industry developments,
industry standards and customer needs. The timing and success of
product development is unpredictable due to the inherent uncertainty in
anticipating technological developments, difficulties in identifying
and correcting design flaws and market acceptance. Any significant
delay in releasing new products or enhancements could have a material
adverse effect on the success of new products or enhancements that
could have a material adverse effect on our business.

There is no certainty that we will be able to introduce new products on
a timely basis, that such products will achieve any market acceptance
or that any such market acceptance will be sustained for any
significant period. Failure of new products to achieve or sustain
market acceptance could have a material adverse effect on our business.

11. We will also depend on technology from third parties and should
there be any problems or delays, this could have a material adverse
effect on our business.

We will contract with third parties to provide some of the
technological components regarding our products. We have outsourced
the design and manufacturing of the antennae utilized as one of the key
components in Advanced ID's RFID products to Hana Microelectronics

Public Co. Ltd of Lamphun, Thailand. In addition, Advanced ID has
outsourced manufacturing of the plastic encapsulation of its RFID tags
to Guide-Trend Co., Ltd. of China. In April 2003, we signed a
strategic partnership agreement with Guide-Trend to perform production
and encapsulation functions. There are no general contractual
requirements as the terms are negotiated and specified for each
purchase order based on volumes purchased. We cannot assure you that,
if we cannot contract with these parties on terms favorable to us, that
we will be profitable.

12. Our business may be negatively affected by the misappropriation of
our intellectual property.

We have entered into confidentiality and assignment agreements with our
employees, suppliers and contractors, and non-disclosure agreements
with outside parties with which we conduct business, in order to limit
access to and disclosure of our proprietary information. There is no
certainty that these contractual arrangements will protect our
intellectual property from misappropriation or deter third party
development of similar technologies. We will pursue registration of
our trademarks and may license our proprietary rights to third parties.
While we will attempt to ensure the quality of our brand names is
maintained by distributors and licensees, there is no certainty that
such distributors and licensees will not take action that might
materially adverse effect our business, operations and financial
condition.

FORWARD LOOKING STATEMENTS

The statements contained in this prospectus that are not historical
fact are forward-looking statements which can be identified by the
use of forward-looking terminology such as "believes," "expects,"
"may," "should," or "anticipates" or the negative thereof or other
variations thereon or comparable terminology, or by discussions of
strategy that involve risks and uncertainties. We have made the
forward-looking statements with management's best estimates prepared
in good faith.

Because of the number and range of the assumptions underlying our
projections and forward-looking statements, many of which are
subject to significant uncertainties and contingencies that are
beyond our reasonable control, some of the assumptions inevitably
will not materialize and unanticipated events and circumstances may
occur subsequent to the date of this prospectus.

These forward-looking statements are based on current expectations,
and we will not update this information other than required by law.
Therefore, the actual experience of Advanced ID, and results
achieved during the period covered by any particular projections and
other forward-looking statements should not be regarded as a
representation by Advanced ID, or any other person, that we will
realize these estimates and projections, and actual results may vary

materially. We cannot assure you that any of these
expectations will be realized or that any of the forward-
looking statements contained herein will prove to be accurate.

USE OF PROCEEDS

Any proceeds received from the sale of our units or from the exercise
of warrants will be deposited directly into the operating account of
Advanced ID. We will be attempting to raise up to $1,440,000, minus
expenses of $29,147, from the sale of our units. These proceeds will
be used as follows:

$ 175,000 Complete development and manufacture of low cost reader
and reader module integration
$ 175,000 Further develop marketing and sales initiatives for our
livestock and non Livestock RFID technology throughout
our distribution channels.
$ 400,000 Complete complimentary business acquisition
$ 400,000 Complete Engineering and development of RFID microchips
to be utilized in animal and non-animal applications.
$ 260,853 Working capital to pay for manufacturing of RFID
---------- products and to manage timing differences in cash
flows.
$1,410,853 TOTAL

Additional details regarding our use of funds are noted below:

1. Complete the development of the company's new low cost UHF RFID
reader and finalize the integration of new reader module software -
entails design, and testing of proto type testing of the low cost
reader by our engineers.

2. Further develop marketing and sales initiatives to develop sales of
our livestock and inanimate RFID technology throughout our distribution
channels - includes hiring a marketing person, advertising to build
brand name recognition of our products, sourcing additional
distribution partners in other countries, travel expense and employing
sales staff.

3. Complete due diligence and financial analysis of potential business
acquisition.

4. Complete engineering and development of RFID microchips to be
utilized in animal and non-animal applications - entails design,
development and testing of RFID tags by our engineers, engineering
consulting fees, laboratory fees, travel costs and component costs.

In the event we are not successful in selling all of the securities to
raise $1,440,000, we would give priority to allocating capital to
launching marketing and sales initiatives to develop sales in the
industries we are currently working in, our next priority would be to

continue to refine our current RFID technology followed by completing
an acquisition of a potential complementary business. Any remaining
capital to fund our working capital needs.

We may receive up to $3,674,542 from the exercise of warrants comprised
in the units and the currently outstanding warrants. Any proceeds
received from the exercise of the warrants shall be utilized for
working capital needs.

PLAN OF DISTRIBUTION

This prospectus relates to the sale of 6,000,000 units comprised of
common shares and warrants and 3,591,251 common shares to be issued
upon exercise of 3,591,251 currently outstanding warrants.

We will sell the units ourselves and do not plan to use underwriters or
pay any commissions. We will be selling our units using our best
efforts and no one has agreed to buy any of our units. There is no
minimum amount of units we must sell so no money raised from the sale
of our units will go into escrow, trust or another similar arrangement.

The units are being offered by Dan Finch and Sudeep Bhargava, officers
and directors of Advanced ID. Messrs. Finch and Bhargava will be
relying on the safe harbor in Rule 3a4-1 of the Securities Exchange Act
of 1934 to sell the common shares. No sales commission will be paid
for units sold by Messrs. Finch and Bhargava. Messrs. Finch and
Bhargava are not subject to a statutory disqualification and are not
associated persons of a broker or dealer. Additionally, Messrs. Finch
and Bhargava primarily perform substantial duties on behalf of Advanced
ID otherwise than in connection with transactions in securities.
Neither Mr. Finch nor Mr. Bhargava were a broker or dealer or an
associated person of a broker or dealer within the preceding 12 months
and they have not participated in selling an offering of securities for
any issuer more than once every 12 months other than in reliance on
paragraph (a)4(i) or (a)4(iii) of Rule 3a4-1 of the Securities Exchange
Act of 1934.

The offering shall terminate on August 31, 2008.

These are no finders.

Under the rules of the Securities and Exchange Commission, our common
stock will come within the definition of a "penny stock" because the
price of our common stock on the OTC Bulletin Board is below $5.00 per
share. As a result, our common stock will be subject to the "penny
stock" rules and regulations. Broker-dealers who sell penny stocks to
certain types of investors are required to comply with the Commission's
regulations concerning the transfer of penny stock. These regulations
require broker-dealers to:
- Make a suitability determination prior to selling penny stock to
the purchaser;
- Receive the purchaser's written consent to the transaction; and
- Provide certain written disclosures to the purchaser.

These requirements may restrict the ability of broker/dealers to sell
our common stock, and may affect the ability to resell our common
stock.

BUSINESS OPERATIONS

Overview
--------
On October 17, 2002 AVID Canada Corporation combined with USA Sunrise
Beverages, Inc., an inactive publicly owned company with no assets or
liabilities, in a business combination accounted for as an acquisition
of AVID Canada and a recapitalization of USA. USA had then outstanding
shares of 10,625,724 and agreed to return 3,624,725 for cancellation,
leaving 7,000,999 shares outstanding. USA then issued 28,000,000
shares to Heritage Ventures Ltd., AVID Canada's former parent company,
in exchange for the 200 outstanding shares of AVID Canada and $505,724
in debt owed by AVID Canada to Heritage Ventures. Avid Canada was
incorporated in Alberta, Canada, on November 26, 1993. USA changed its
name to Advanced ID Corporation effective November 15, 2002. As a
result of the reverse merger transaction, Advanced ID now wholly owned
AVID Canada and the original security holders of USA now hold 7,000,999
shares in Advanced ID. No consulting fees or finder's fees were paid
in relation to the reverse merger transaction.

Advanced ID has three subsidiaries, Advanced ID Asia Engineering Co.
Ltd., formerly AFG Asia Engineering Co. Ltd., AVID Canada Corporation
and Universal Pet Care, both of whom are wholly owned. AVID Canada
Corporation is a reseller of radio frequency identification microchips
and scanners manufactured by American Veterinary Identification Devices
of the United States under the brand name AVID. AVID Canada does not
own the AVID brand name or trademark. There currently exists no
distribution agreement with AVID. The products are marketed to the
companion animal and biological sciences sectors in Canada only.
Universal Pet Care is a non-operating entity with no assets or
liabilities.

On July 1, 2005 Advanced ID concluded an agreement to acquire a 60%
interest in AFG Asia Engineering Co. Ltd. of Chiang Mai, Thailand to
strengthen its resources in the radio frequency identification market.
AFG Asia Engineering is a leader in the design and development of ultra
high frequency radio frequency identification technology.

Effective July 1, 2007, Advanced ID entered into an agreement to sell
its 60% share of Advanced ID Asia Engineering Co. Ltd. The closing
date of the agreement is contingent on several engineering related
performance conditions on the part of the acquirer and is scheduled to
occur no later than December 31, 2007. Advanced ID is to receive
engineering and consulting services and other increased license fee
consideration, in exchange for conveyance of its 60% share. The
carrying amount of the major classes of assets and liabilities included
in this disposal group are as follows as of June 30, 2007:

RFID allows for the positive identification and location tracking of
animals or objects that are embedded or tagged with RFID microchips. We
currently supply over 3,000 organizations such as animal shelters,
veterinarians, breeders, government agencies, universities, zoos,
research labs and fisheries with RFID devices for companion animals,
exotics, equines, bovines, llamas, alpacas, ostriches, aquatic species,
reptiles, migratory and endangered species. We have implanted
microchips in over500,000 companion and other valuable animals,
currently track nearly one million animals in our PETtrac database, and
reunite numerous lost animals with their families each month.

Sales of microchips and readers to the companion animal and biological
sciences markets in Canada continue to contribute a majority of our
income in 2006, additionally sales of ultra high frequency animal tags
and readers were made to the states of New York and Colorado for the
purpose of identifying captive Elk and Deer who are potential carriers
of Chronic Wasting Syndrome Disease. Additionally Advanced ID
Corporation continues to sell UHF identification tags to Goodyear Tire
and Rubber Company under several purchase orders continuing into 2007.
Tire tag and tire patch sales have been made to VAR's in several
countries for trial or pilot runs. Readers for the tire tag market
have been sold to tire manufacturers and resellers in India, Canada,
Mexico, Venezuela, Australia, Japan and the United States. Michelin US
has purchased multiple readers.

As noted above, we are currently serving the Canadian market as a
reseller for AVID. In 2006, we received international approval to
manufacture and sell our own ISO low frequency microchips through our
subsidiary, Advanced ID Asia Engineering Co. Ltd. (formerly AFG Asia
Engineering Co. Ltd.) . We are expanding our sales effort for Advanced
ID Corporation ISO Low Frequency (LF) microchips chips into several
countries, including China, Taiwan and Thailand.

Since we own the intellectual property of the DataTRAC(tm) microchips, we
are continuing to develop and market our UHF RFID products in both the
supply chain and livestock markets throughout the world, either
directly or through international distributors. Advanced ID has made
good progress in the supply chain market, especially in Asia. Advanced
ID's marketing efforts in the livestock area has been reduced because
no country's government has approved the use our UHF RFID technology

Products and Services Overview
------------------------------
Companion Animal/Biological Sciences, Inanimate Products and Services

Our current product offering includes an established line of RFID tags,
readers, and software.

RFID Tags: Our RFID Tags purchased from American Veterinary
Identification Devices or manufactured by Advanced ID Asia Engineering
Co. Ltd. consist of an integrated circuit or microchip utilizing a low
frequency of 125 KHz or 134 KHz. The microchip is sealed in glass,
compatible with the animal's body, containing a programmed
identification number which fits inside a hypodermic needle, and can be
injected under the skin of an animal. Since these RFID Tags are
passive, meaning they do not require a battery, a reader temporarily
energizes the microchip allowing it to transmit its data to the reader
with error-free reliability. Under normal conditions, the RFID Tags
can last in excess of 20 to 25 years and generally well beyond the life
of any companion animal. The read range for low frequency tags is
approximately three to seven inches.

RFID Readers: We offer a variety of hand-held readers that read
both our microchips and our competitors' microchips. Our reader
formats include International Standards Organization, Federation of
European Companion Animal Veterinarian Association and AVID's encrypted
standard.

Software: We offer a proprietary Microsoft(r).Net based database
called PETtrac which is our advanced software program that stores and
tracks identification numbers from implanted animals by recording their
microchip ID as well as unique information including data such as:

- Pet name, breed, and description;
- Animal's brand and tattoo numbers;
- Present/past owners, and current details;
- Medical history of the animal, medication, allergies, etc.; and
- Other pertinent information specific to each sector/industry.

Services: We provide an electronic and manual data entry service to
the PETtrac global tracking system for all animals identified with a
microchip, including our competitors' microchips, collar tags, rabies
vaccination numbers and tattoo numbers in Canada. Animal recoveries can
be performed by accessing our database through a web browser, as well
as through a 24/7 operator assisted service by calling a toll free
line.

Livestock Animal Products and Services
--------------------------------------
Our livestock products offering which was completed in early 2006
includes three different sized RFID tags, readers, and software
specifically tailored to meet the needs of each type of livestock and
region.

RFID Tags: Our RFID Tags will be comprised of an integrated circuit
or microchip utilizing an ultra high frequency of 915 MHz. An antenna
is attached to the microchip to provide a longer read range, all of
which is encapsulated in plastic. Our RFID Tags are passive thereby
not requiring a battery, and can transmit their data to the reader with
a read range of up to approximately ten feet.

Effective April 2003, we signed a strategic partnership agreement with
Guide-Trend Technology Company Ltd. of China for the manufacturing of
our RFID tags. Once completed, the final product is shipped directly
to our customers. The integrated circuits or microchips are purchased
on our behalf by Guide-Trend from EM Microelectronic of Switzerland or
Philips Semiconductors of the Netherlands, two of the world's largest
RFID integrated circuit manufacturers. There exists no purchase
contract with any of our suppliers as each purchase order is negotiated
separately at this time.

Currently, we are the only company that is offering ultra high
frequency tags to the livestock industry. All of our competitors offer
low frequency tags which are generally more costly to produce, offer a
shorter read range, and have limited reading capability within
automated livestock processing plant environments. Adoption of RFID
technology by animal owners has been slower than anticipated resulting
lower than anticipated sales, additionally the adoption of Low
Frequency ISO 11784 and 11785 compliant technology by a growing number
of countries has impacted on the market potential and the company has
reduced the scales of its continuing development of the livestock
application.

RFID Readers: We offer stationary and handheld readers that will
scan and read our microchips. Effective November 2003, we secured a
partnership agreement with Applied Wireless Identifications Group, Inc.
of New York to supply us with ultra high frequency modules and readers
that we will resell to our customers. Additionally, in 2006 we secured
a second supplier of UHF reader modules from Skye Tek Inc. of
Westminister Colorado.

Services: Our objective is to become the complete system
provider for livestock identification and trace-back. As part of
providing a complete system for our customers, we will provide in-
depth analysis prior to implementation of a recommended solution.

Inanimate Products and Services: In August 2005, Advanced ID was
awarded a purchase order from Goodyear Tire and Rubber Company of Akron
Ohio for RFID identification tags. Goodyear is undertaking trials to
test the durability and practicality of embedding UHF tags specifically
designed for their tires. Tags were produced on a prototype basis
initially prior to moving into larger scale production. A second
purchase order was awarded in August 2006 to Advanced ID to further
support Goodyear Tire's testing efforts. The 2006 and 2007 NASCAR
racing tires will all have this product attached to their racing tires.

Business Model
--------------
We are planning to enhance our current revenue streams by:

- Offering ISO microchips in both the Canadian and Global companion
pet recovery markets. Create PETtrac capabilities in various important
languages, Chinese a foremost consideration. Develop improved Low
Frequency readers that will display in various languages.

- Offering higher integrity and more cost effective identification
solutions over current practices in the global livestock markets with
our DataTRAC(tm) RFID tags and readers, and our web-based tracking and
recovery software system.

- Expanding our current market presence into other veterinary
clinics and animal shelter markets across Canada by lowering prices,
improving customer service and establishing more comprehensive sales
channels, both direct and third party.

- Expanding RFID technology into industrial applications such as
the energy and manufacturing industries. The knowledge and profile
gained through the relationship with Goodyear Rubber and Tire Company
is one example.

- Expanding the tire management market to include: tire
manufacturers, resellers, fleet owners, retail, retreaders, system
integrators, database managers.

- Expanding RFID technology into supply chain applications for
hostile environments. Avoid the high volume, low cost applications
that will satisfy the Wal-Mart requirement.

Intellectual Property
---------------------
Our intellectual property is comprised of our radio frequency
identification tags utilized for the identification and trace back of
livestock. We currently do not own any patents and have not licensed
any intellectual property used in our products. Our tire tag technology
is based on IP from Goodyear and under license from Michelin. Our new
reader line will include intellectual property that the company will
exploit through patent protection and other protection of proprietary
assets

Target Market
-------------
Advanced ID is fulfilling the needs of the companion animal and
biological sciences markets in the RFID industry as outlined below:

- Increasingly, municipal animal control agencies are setting
policy and by-laws for permanent tagging of pets.

- Pending guidelines will require livestock and meat product
operators to use advanced tagging and tracking systems. UHF will
compete with LF in the future.

- Industries are demanding increased efficiencies in logistics,
distribution, asset management, and tracking.

The tire management industry was started in 2005 and growth has been
steady in 2006. We believe 2007 will see significant growth without
significant new competition

- The global RFID market was several billion dollars, US in 2005.

Our PETtrac system has been approved for use across Canada by the
National Companion Animal Coalition thereby giving us access to over
3,000 professional veterinarians as well as all SPCAs and humane
societies, thus tapping a market of over eight million animals.

In the livestock industry, the Bovine Spongiform Encephalopathy (i.e.
BSE or Mad Cow Disease) disease that plagued Europe in 1998 was thought
to have infected North American herds. This resulted in legislative
efforts for animal identification and tracking systems with RFID being
the preferred technology. Governments are implementing legislation
requiring a quick and secure animal trace back system, aimed at
improving food safety for consumers from animal diseases. Our products
have been designed to exceed existing regulations.

Advances in microchip design, miniaturization, global positioning
tracking, read range, read/write capabilities and data storage have
greatly expanded the applications for RFID tags. RFID systems are being
piloted and used in a wide range of retail, commercial and industrial
applications. Advanced ID will carefully choose those technologies and
market sectors where we can successfully compete.

Marketing and Sales Strategy
----------------------------
Sales and Distribution Channels

With a strong channel already established in the Canadian companion
animal and biological sciences markets with our direct sales team,
comprised of one sales representative and three customer support
personnel, we intend to leverage this position by securing additional
relationships with other veterinarian professionals in targeted regions
across Canada. Currently, we have relationships with the following
distribution agencies; Associate Vet Purchasing, Western Drug
Distribution Center, Vet Purchasing, Canadian Kennel Club and Centre de
Distribution de Medicaments Veterinaires (CDMV). There is no
contractual agreement or volume commitment in place with any of these
parties. During fiscal 2006, we had two customers, Veterinary
Purchasing and Goodyear Tire and Rubber Company, that each accounted
for more than 10% of our revenues.

We will sell our tire management product line both direct and through
third party resellers. The Hana Group from Ohio and Thailand will
manufacture the tire tags according to our specifications and industry
requirements. The market is global.

We will sell our UHF RFID reader line both direct and though third
party resellers. The market is global.

Pricing Strategy

We plan to be a price-performance leader with all of our products and
services. This is intended to assist our efforts to gain market
acceptance and secure market share in the companion pet recovery
industry throughout the world, and further allow us to continue to both
increase the market size and our market share in the tire management
market. It is our goal to keep our expenditures small to ensure we

maintain low product price points to discourage other competitors from
entering the market yet allowing us to earn a healthy margin. We
anticipate that any cost savings we achieve through process
improvements will lead to reductions in our price points to discourage
other competitors from entering the market.

Recent Developments

Companion Animal - Advanced ID has received approval from the National
Companion Animal Coalition for its new ISO chip made by Advanced ID
Asia Engineering Co. Ltd. With the significant cost savings associated
with this new ISO standard chip, Advanced ID has reduced its prices in
Canada and other countries and sales are increasing. Advanced ID has
developed a new LF reader for companion animals that can be sold in
several countries with language specific readout capabilities.

Livestock Tagging - Advanced ID has not further developed its livestock
RFID product line but has maintained its ability to provide a complete
product solution as the requirement develops. Recent outbreaks of BSE
and bird flu could well re-ignite interest in this product.

Tire Management - Advanced ID has continued to develop, with Hana and
others, products that will serve the tire management industry from the
tire maker in Ohio to the fleet owner in Great Britain. Advanced ID is
in a leadership position in this market and will focus its energies and
resources to remain in a leadership role as the market matures and
reaches high volume requirements.

UHF RFID Reader Development - Advanced ID has developed a series of
high powered, long read range, UHF RFID readers that are being sold in
the supply chain industry and the tire tag business. This reader
product line is sold to the trade at about half the prevailing price
for an equivalent product sold by the competition. The company has
designed also a lower cost, mass market UHF RFID reader that will sell
for half the price of our current readers. This is the reader product
line that will take the cost of UHF readers out of the value
proposition. The UPC Barcode business did not take hold in the
70's/80's until the price of readers went under $100. Advanced ID
intends to be the company that ultimately offers a $100 UHF RFID
reader.

Asset Acquisition - Effective July 1, 2007, Advanced ID acquired all of
the assets of Pneu-Logic, Ltd. for total consideration of $800,000
comprised of $400,000 cash and 1,000,000 restricted shares of Advanced
ID valued at $400,000. The cash component consists of $100,000 paid on
the date of closing and ten $30,000 monthly installments commencing
October 1, 2007 based on meeting certain revenue targets. Pneu-Logic
Ltd. is engaged in the business of fleet tire management.

Competition
-----------
Our largest competitor in the companion animal and biological sciences
market in Canada is Pethealth Inc. who is estimated to have
approximately 45% market share compared with our estimated 40% market

share. During 2004, Anitech Enterprises Inc. ceased operations and no
longer remains a competitor. Less than four years ago, Anitech held
the largest market share in Canada. The remaining 15% market share is
spread among two companies which includes Microchips 4 Solutions and
EIDAP. While in business, Anitech was a reseller of Digital Angel
Corporation's microchips and readers and as further referenced under
Applied Digital Solutions below.

Pethealth Inc. - Pethealth's vision is to become the leading
provider of insurance and integrated health related information
services to the North American companion animal market. Currently
Pethealth claims it is Canada's largest provider of accident and
illness insurance for dogs and cats to pet owners and the second
largest in North America. Pethealth entered the companion animal
industry in February 2003 where it has grown its market share by
offering significantly lower priced products than all other competitors
in North America. Pethealth is a reseller of Allflex USA's companion
animal products and which is further discussed below. Allflex's
technology offers no competitive advantages over our technology except
that Pethealth is offering a significantly lower priced product at this
time. For the year ended December 31, 2006, Pethealth showed microchip
and non-insurance revenues of CAD $3,299,698 from microchip sales in
Canada and United States. Revenues from microchip and non-insurance
revenues during the year ended December 31, 2005 totaled CAD
$1,364,762.

Allflex USA Inc. - Allflex claims to be the world's leading
supplier of livestock identification and management systems. Its
products include visual identification ear tags and applicators,
electronic identification systems and a variety of precision
instruments. Allflex works closely with official and commercial
organizations around the world to develop reliable and efficient
systems for collecting and transferring information on animal
identification, movement and performance. Allflex has manufacturing
and technology subsidiaries in USA, Canada, Europe, Australia, New
Zealand, Brazil and China. Allflex products are distributed in 80
countries worldwide. Unaudited revenues for 2006 could not be found.

Applied Digital Solutions, Inc. - Applied Digital, through its
subsidiary Destron Fearing, has been in the animal identification
business since 1945. For over 50 years, Destron Fearing has developed,
manufactured and marketed a broad range of individual animal
identification products. As the animal identification industry
expanded, the company culminated a merger of Fearing Manufacturing and
Destron/IDI in November 1993. Their products range from visual ear
tags attached to livestock, to electronic microchips implanted under
the skin of pets, fish, laboratory animals and livestock. On April 25,
2000, Destron Fearing was acquired by Applied Digital Solutions, Inc.
(ADSX - NASDAQ) for $84.6 million through a merger of its wholly owned
subsidiary, Digital Angel Corporation. For the year ended December
2006, Digital Angel had revenues of $57.0 million and a loss of $6.8
million. For the year 2005, Digital Angel had revenues of $56.8
million and a loss of $9.5 million.

Trovan, Ltd. - Trovan is a privately held United Kingdom company
established in 1988. Trovan is focused on developing and marketing
RFID technology, telemetric systems and biomedical delivery
technology. Trovan has established a network of distributors
located in North America, South America, Europe, Asia, Australia,
Africa and the Middle East. Users of their technology include
Volkswagen, Daimler Benz, Coca Cola, Siemens, Nestle SA, Nissan,
Merck, Samsung and Hoechst/Aventis in the private sector, as well as
60 government agencies in 13 countries around the world.

Other Competition - Other competition will come from the
continued use of bar code tags in those countries that have not made
it mandatory for users to purchase an RFID tag. The reason that bar
code tags are used almost exclusively over an RFID tag is largely a
function of price and the fact that previous RFID technology does
not offer any significant benefits over bar code tags.

Competitive Advantages
----------------------
Based on in-house research, the existing RFID technology available for
livestock is centered on low frequency (30 to 300 KHz) tags and high
frequency tags (3 to 30 MHz) which offers a read range up to three feet
at a retail price point of $2.00 to $10.00 per tag. Low and high
frequency livestock identification tags have been available in the
market for approximately ten years yet there has been only a limited
level of adoption of this technology. This is largely because the read
range is nominally greater than bar code tags that are currently priced
at $1.00 to $1.50 per tag and because the technology has not fully met
the requirements of most users.

Our RFID technology utilizes a higher frequency of 915 MHz that
provides a read range up to ten feet at a price point of $1.50 to $2.00
per tag. Some of our RFID tags also include a bar code to ensure a
seamless transition for current bar code customers to adopt RFID
technology. In addition, we will be developing RFID tags to offer
read/write functionality allowing users to store additional data on
each tag such as the animal's birth date, vaccinations, etc.

Our management team and board of directors have extensive experience in
the RFID and Livestock industries. Strong relationships have been
cultivated over numerous years with key participants in the livestock
industry including relationships with key principals of national cattle
associations, feedlots, packing plants, distribution groups and co-
operatives, and primary producers. These relationships have been
attained through personal contact, meetings, conferences and
presentations, both within our current business operations and through
prior business experience.

It is our belief that the adoption of any livestock identification
method will require some form of mandatory requirement either through
government legislation or import regulations by those countries that
import meat and livestock. Currently, Canada has enacted legislation
for mandatory identification of cattle and the European Union has
enacted legislation for mandatory identification of all livestock.

Other countries such as the United States, Australia, New Zealand,
Argentina, Brazil, Taiwan and Thailand are considering similar
requirements.

Our research and development activities over the last four years have
included researching, designing and developing RFID tags for livestock
identification. This entailed sourcing integrated circuit and reader
manufacturers, whose products could perform under harsh environments,
designing and optimizing an antenna to maximize read range, and
developing an appropriate encapsulation process to protect these
components from extreme weather conditions. Numerous tests were
concluded in both a laboratory environment and under field conditions
including farms, ranches, feedlots, and processing plants. These
various tests have been conducted in United States, Germany, China,
Canada, Taiwan, Argentina, Australia, Thailand and Brazil.

Trademarks and Patents
----------------------
We will be filing trademark registrations for certain brand names. In
addition, we have secured the following Internet names: avidcanada.com,
advancedidcorp.com and advancedid.ca. We have also identified
additional trademarks and URLs that we plan to register in the
immediate future. We currently do not have any patents registered.

Employees
---------
We presently have five full-time employees, four contract employees and
one part-time employee. We have entered into consulting agreements
with two other parties to perform such duties as technical support,
software development, channel development, product development,
marketing and sales.

Reports to Security Holders
---------------------------
Effective October 17, 2002, we became a fully reporting company under
the requirements of the Exchange Act, and to date we have filed the
necessary quarterly and other reports with the Securities and Exchange
Commission. Although we are not required to deliver our annual or
quarterly reports to security holders, we would be pleased to forward
this information to security holders upon receiving a written request
to receive such information. The reports and other information filed
by us will be available for inspection and copying at the public
reference facilities of the Securities and Exchange Commission located
at 450 Fifth Street, N. W., Washington, D.C. 20549.

Copies of such material may be obtained by mail from the Public
Reference Section of the Securities and Exchange Commission at 450
Fifth Street, N. W., Washington, D.C. 20549, at prescribed rates.
Information on the operation of the Public Reference Room may be
obtained by calling the SEC at 1-800-SEC-0330. In addition, the
Commission maintains a World Wide Website on the Internet at:
http://www.sec.gov that contains reports, proxy and information
statements and other information regarding registrants that file
electronically with the Securities and Exchange Commission.

Properties
-----------

On June 6, 2007, Advanced ID entered into a new lease for office space.
The five year lease commenced September 1, 2007 with estimated minimum
lease payments of approximately $2,500 per month.

DILUTION

Assuming completion of the offering but not including the exercise of
any warrants, there will be up to 60,937,845 common shares outstanding.
The following table illustrates the per common share dilution as of
June 30, 2007 that may be experienced by investors at various funding
levels.

Funding Level $1,440,000 $720,000 $360,000 $180,000
---------- -------- -------- --------

Offering price $.24 $.24 $.24 $.24

Net tangible book
value per common
share before offering .005 .005 .005 .005

Increase per common
share attributable to
investors .022 .011 .006 .002
----- ----- ----- -----
Pro forma net tangible
book value per
common share after
offering .027 .016 .011 .007
----- ------ ------ ------
Dilution to investors .213 .224 .229 .233
Dilution as a
percentage of
offering price 89% 93% 95% 97%

Based on 54,937,845 common shares outstanding as of June 30, 2007
and total stockholder's equity of $259,404 utilizing unaudited June
30, 2007 financial statements.

Since inception, the officers, directors, promoters and affiliated
persons have paid an aggregate average price of $.09 per common share
in comparison to the offering price of $.24 per common share.

Further Dilution

Advanced ID may issue equity and debt securities in the future. These
issuances and any sales of additional common shares may have a
depressive effect upon the market price of Advanced ID's common shares
and investors in this offering.

DIVIDEND POLICY

We have never declared or paid any dividends. In addition, we
anticipate that we will not declare dividends at any time in the
foreseeable future.

Instead, we will retain any earnings for use in our business. This
policy will be reviewed by our board of directors from time to time in
light of, among other things, our earnings and financial position.

No distribution may be made if, after giving it effect, we would not be
able to pay its debts as they become due in the usual course of
business; or the corporation's total assets would be less than the sum
of its total liabilities plus (unless the articles of incorporation
permit otherwise) the amount that would be needed, if we were to be
dissolved at the time of the distribution, to satisfy the preferential
rights upon dissolution of shareholders whose preferential rights are
superior to those receiving the distribution. The board of directors
may base a determination that a distribution is not prohibitive either
on financial statements prepared on the basis of accounting practices
and principles that are reasonable in the circumstances or on a fair
valuation of other method that is reasonable in the circumstances.

DETERMINATION OF OFFERING PRICE

The offering price of the units was arbitrarily determined by Advanced
ID based on the financial needs of Advanced ID without regard to the
book value or market value, if any, of our common shares.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

Results of Operations for the Six Months Ended June 30, 2007 and June
30, 2006.

The net loss of $(1,207,517) for the six months ended June 30, 2007
decreased by $439,462 compared to last year due to higher sales as a
result of extra sales promotions and lower general and administration
expense primarily from lower non-cash compensation expense.

Revenues

Revenues of $469,097 during the six months ended June 30, 2007
increased $61,854 from last year. This increase can be attributed to
higher bulk tag, reader and reader accessories. These sales increases
are attributed to increased sales focus on animal shelters and
broadening of sales of readers and accessories to more customers.

The Company is actively promoting the ISO microchip throughout Canada
and Asia. Of the total revenues earned of $469,097 for the six months
ended June 30, 2007, $283,827 or 60.51% were from our companion
animal/biological sciences division in Canada and $185,270 or 39.49%
were from our ultra high frequency (UHF) division with sales throughout
the world.

Cost of Revenues

Cost of Revenues of $286,883 for the six months ended June 30, 2007
increased by $53,492 or 22.9% over same period in the previous year.
The increase in Cost of Revenues is attributed to higher sales levels
and slight changes in the product sales mix to lower margin items.
Gross profit of $182,214 increased by $8,362 from the six month period
ending June 30, 2006. The gross profit margin decreased slightly from
42.7% to 38.8%, reflecting the slight change in product mix.

Research and Development

Research and development expenses of $16,809 for the six months ended
June 30, 2007 decreased by $39,133 from last year's comparable period.
This decrease is due to the fact that the engineering development of
the UHF livestock product development is near completion.
Additionally, much of the business development team in Chiang Mai,
Thailand, formerly focused on research and development activities,
continues to be responsible for sales and marketing activities in Asia
and UHF RFID reader development and sales throughout the world.

General, administrative and selling expense

For the six months ended June 30, 2007, general and administrative and
selling expenses of $1,366,805 were lower by $390,148 or 22.2% than
last year due to lower payroll costs as a result of fewer employees,
lower non-cash compensation expense and lower investor relations and
public relation expenses offset, in part by higher consulting expenses.
However, general and administrative expenses will increase as we
implement sales and marketing initiatives during the remainder of the
year.

Minority Interest

On July 1, 2005, Advanced ID acquired a 60% interest in AFG Asia
Engineering Co. Ltd. The minority interest of $8,299 represents the
40% non-owned interest in AFG Asia Engineering. The amount increased by
$7,509 over the comparable six month period in 2006 due to greater
sales levels in AFG Asia Engineering.

Other income (expense)

During the six months ended June 30, 2007, other income of $2,182 was
higher by $9,328 than last year due to lower interest costs related to
the full payment of a loan to a related party during the first six
months in 2006.

Liquidity and Capital Resources

As at June 30, 2007, we had cash and cash equivalents of $145,833.

During the six months ended June 30, 2007, net cash used in operating
activities of $383,746 was higher by $9,422 or 2.5% as compared to the
quarter ended June 30, 2006. The increase in cash used by operating
activities during 2007 resulted primarily from an overall increase in
cash general and administrative expenses offset in part by higher cash
generated from non-cash working capital amounts.

During the six months ended June 30, 2007, net cash used by investing
activities of $17,642 compared to $9,967 for the six months ended June
30, 2006. Cash used by investing activities resulted from our purchase
of office furniture and equipment, computer hardware, and software. We
have no commitments for future purchases of capital assets.

During the six months ended June 30, 2007, net cash provided by
financing activities of $292,588 was lower by $187,041 or 39.0% as
compared to the six months ended June 30, 2006. The lower cash
generated is a result of lower proceeds from sales of stock, lower
collection of subscription receivables and lower proceeds from the
exercise of warrants and options.

Our internal and external sources of liquidity have included cash
generated from the exercise of options and warrants, proceeds raised
from subscription agreements and private placements, and advances from
related parties. We are currently not aware of any trends that are
reasonably likely to have a material impact on our liquidity. Our
current cash balance is estimated to be sufficient to fund our current
operations for two months. We are attempting to increase the sales to
raise much needed cash for the remainder of the year, which will be
supplemented by our efforts to raise cash through the issuance of
equities securities. It is our intent to secure a market share in the
livestock and inanimate identification industry which we feel will
require additional capital over the long term to undertake sales and
marketing initiatives, further our research and development, and to
manage timing differences in cash flows from the time product is
manufactured to the time it is sold and cash is collected from the
sale. Our capital strategy is to increase our cash balance through
financing transactions, including the issuance of debt and/or equity
securities.

Additionally, we will require additional cash resources to fund our
acquisition of Pneu-Logic which we expect to fund through the sale of
stock.

DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS

Our bylaws provide that the number of directors who shall constitute
the whole board shall be such number as the board of directors shall at
the time have designated. We confirm that the number of authorized
directors has been set at five pursuant to our bylaws. Each director
shall be selected for a term of one year and until his successor is
elected and qualified. Vacancies are filled by a majority vote of the
remaining directors then in office with the successor elected for the
unexpired term and until the successor is elected and qualified. The
directors, officers and significant employees are as follows:

NAME AND ADDRESS AGE POSITIONS HELD SINCE

Dan Finch 64 President & CEO, Director September 2005
Sudeep Bhargava 50 COO/V.P. of Operations January 2007
Interim CFO August 2007
Seymour Kazimirski,
Honolulu, Hawaii 60 Director/Chairman October 2002
Hubert Meier, Kowloon,
Hong Kong 60 Director February 2003
Terry Fields,
Honolulu, Hawaii 64 Director July 2005

Business Experience
------------------

Dan Finch - President and CEO, has 20 years of executive level
management experience in wireless HSIA and VoIP phone technology, high-
speed internet infrastructure and financial services for small pre IPO
high tech companies. Dan Finch led a division of DSC that designed and
manufactured all the cell switches for Motorola, under the Motorola
brand. While serving at C-COR/COMLUX he was responsible for the
turnaround of this subsidiary, and realized three-fold growth. Dan
Finch's educational background includes an MBA, Finance and Economics
from University of Chicago, a BS in Physics from the Indiana Institute
of Technology and certification in Technical Management from the
University of California, Berkeley.

Sudeep Bhargava - Chief Operating Officer, Interim Chief Financial
Officer, Vice President of Operations, has over 27 years of management
experience in hospitality industry and in non-profit sector, and lately
in the pet industry at the Calgary Humane Society as the General
Manager of Finance & Operations for over eight years. Sudeep Bhargava
has a Bachelor of Commerce degree from Agra University, Agra, India in
1977. Later in 1994, he earned the accounting designation of Certified
Management Accountant (CMA) in Regina, Saskatchewan, Canada.
Currently, Sudeep Bhargava is a member of CMA Alberta, a professional
association for management accountants. He has for many years
contributed numerous hours of his time to many volunteer organizations
in Regina and Calgary and continues to do so in Calgary.

Seymour Kazimirski - Director/Chairman. In 1995, Mr. Kazimirski
established Hawaii Pet Care Alliance which is involved in radio
frequency identification for companion animals, and where he continues
to serve as president. From 1995 to 1998, Mr. Kazimirski consulted to
AVID Inc., a manufacturer of radio frequency identification microchips
and readers. In 1993, Mr. Kazimirski established Global Consulting
which houses his consulting operations that specializes in finance,
administration and marketing. In 1980, Mr. Kazimirski established
Florexotica International Inc., an import/export business acquiring
products from Asia and Europe, and resold to U.S. military and major
retail stores.

Hubert Meier - Director. Mr. Meier is a graduate of electronic
engineering at Oskar von Miller Polytech in Munich. Mr. Meier has been
operating his own consultancy firm specializing in radio frequency
identification technology since May 2002. Prior to this Mr. Meier was
with Hana Technologies Ltd. in Hong Kong, a technology company
specializing in the development and manufacturing of integrated
circuits, light emitting diodes, smart cards, RFID technology, and
other electronic components and devices, from 1997 to 2002 where he
served as CEO, Managing Director and Board member. From 1993 to 1997,
Mr. Meier served as the Vice President Sales, Managing Director and
Board member of Temic Hong Kong, a German based company supplying
electronics for applications in power train, safety and body
electronics. From 1978 to 1993, Mr. Meier was with Eurosil, a German
company involved in developing and manufacturing integrated circuits,
where he served as Sales Director, Managing Director and Board member.

Terry Fields - Director. Mr. Fields practiced law in California for
over thirty-three years, initially in litigation, but ultimately
concentrating in corporate and business law. Mr. Fields has been a
director of twelve public corporations over the last twenty years and
President of six of those, equally distributed between the U.S. and
Canada. Mr. Fields has extensive business experience, especially with
public corporations and their securities, as well as mergers and
acquisitions. Mr. Fields has strong ties with the financial
communities, both domestic and international, having lived in Europe
for five years. At present, Mr. Fields is President and Director of
Sunburst Acquisitions IV, Bishop Resources Inc. and Visual Statement
Inc., a private Canadian corporation.

The above named directors will serve in their capacity as director
until our next annual shareholder meeting to be held within six months
of our fiscal year's close. Directors are elected for one-year terms.

Code of Ethics Policy
---------------------
We have not yet adopted a code of ethics that applies to our principal
executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.

Corporate Governance
--------------------
There have been no changes in any state law or other procedures by
which security holders may recommend nominees to our board of
directors. In addition to having no nominating committee for this
purpose, we currently have no specific audit committee and no audit
committee financial expert. Based on the fact that our current
business affairs are simple, any such committees are excessive and
beyond the scope of our business and needs.

Family Relationships
--------------------
There are no family relationships between our officers and directors.

Involvement in Certain Legal Proceedings
----------------------------------------
None of our directors, executive officers and control persons have been
involved in any of the following events during the past five years:
- Any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the
time of the bankruptcy or within two years prior to that time,
- Any conviction in a criminal proceeding or being subject to any
pending criminal proceeding (excluding traffic violations and other
minor offenses);
- Being subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining, barring, suspending or otherwise
limiting his or her involvement in any type of business, securities or
banking activities,; or
- Being found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading Commission to
have violated a federal or state securities or commodities law, and the
judgment has not been reversed, suspended, or vacated.

Executive Compensation
----------------------
We may elect to award a cash bonus to key employees, directors,
officers and consultants based on meeting individual and corporate
planned objectives.

On September 15, 2005, Advanced ID entered into an employment agreement
with Dan Finch, as Advanced ID's CEO and president for an annual salary
of $94,200. In addition to his salary, Mr. Finch will receive a one-
time payment of $5,000 for moving expenses and has an opportunity of
earning up to 1,000,000 options when pre-determined increases in
revenues are attained.

Long Term Compensation
Annual Compensation Awards Payouts
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Other All
Name Annual Restricted LTIP Other
and Compen- Stock Options/ Pay- Compen-
Principal Salary Bonus sation Awards SARs Outs sation
Position Year ($) ($) ($) ($) ($) ($) ($)

Dan Finch
Chief Executive Officer 2006 $103,620 - - - - - -
2005 $94,200 - - - - - -
2004 n/a - - - - - -

Sudeep
Operations Director 2006 n/a - - - - - -
2005 n/a - - - - - -
2004 n/a - - - - - -

We do not have any standard arrangements by which directors are
compensated for any services provided as a director. On April 26,
2006, we issued 1,000,000 options to five directors and 10,000
restricted common shares to each director in lieu of a cash payment.
Also on July 21, 2005 we issued 1,000,000 options to five directors,
also on July 21, 2005 20,000 common shares were issued to one director
and 10,000 common shares were issued to six other directors. April 22,
2004, we issued a total of 1,150,000 options to five directors. Also,
on April 22, 2004, we issued 10,000 restricted common shares to each
director in lieu of a cash payment. No cash has been paid to the
directors in their capacity as such.

We do not have any standard arrangements by which directors are
compensated for any services provided as a director. No cash has been
paid to the directors in their capacity as such.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth, as of September 30, 2007, the number
and percentage of outstanding shares of Advanced ID common stock owned
by (i) each person known to us to beneficially own more than 5% of its
outstanding common stock, (ii) each director, (iii) each named
executive officer and significant employee, and (iv) all officers and
directors as a group.

(i) Persons Beneficially Owning More Than 5% of Outstanding Common
Stock

Title of Class Name of Beneficial Owner Common Stock Percentage of
Beneficially Owned Class Owned

Class A Common Seymour Kazimirski 3,022,352 5.5%
Class A Common Heritage Ventures Ltd. 14,883,161 27.1%

Heritage Ventures Ltd. is a widely held public company that was de-
listed from trading on the Alberta Stock Exchange, predecessor to the
TSX Venture Exchange, effective May 7, 1999. The largest shareholder
that we are aware of controls approximately 5.3% of the outstanding
shares in Heritage Ventures.

(ii) Directors of Advanced ID

Title of Class Name of Beneficial Owner Common Stock Percentage of
Beneficially Owned Class Owned

Class A Common Seymour Kazimirski 3,025,351 5.6%
Class A Common Hubert Meier 705,015 1.3%
Class A Common Terry Fields 180,712 .33%
Class A Common Dan Finch 20,000 <.1%

(iii) Officers and Significant Employees of Advanced ID

Title of Class Name of Beneficial Owner Common Stock Percentage of
Beneficially Owned Class Owned

Class A Common Dan Finch 20,000 <.1%
Class A Common Sudeep Bhargava 0 0.0%

(iv) Directors and Officers of Advanced ID as a Group

Title of Class Name of Beneficial Owner Common Stock Percentage of
Beneficially Owned Class Owned

Class A Common Directors/Officers 3,931,078 7.3%

Based upon 54,137,248 issued and outstanding as of September 30, 2007.

Warrants
--------
The following table sets forth, as of September 30, 2007, the number
and percentage of outstanding warrants of Advanced ID owned by (i) each
person known to us to beneficially own more than 5% of its outstanding
warrants, (ii) each director, (iii) each named executive officer and
significant employee, and (iv) all officers and directors as a group.

(i) Persons Beneficially Owning More Than 5% of Outstanding Warrants

Name of Beneficial Owner Number of Percentage of
Warrants Beneficially Owned

N/A

(ii) Directors of Advanced ID

Name of Beneficial Owner Number of Percentage of
Warrants Beneficially Owned

Seymour Kazimirski 550,000 3.7%
Hubert Meier 600,000 4.0%
Terry Fields 400,000 2.7%
Dan Finch 200,000 1.3%

(iii) Officers and Significant Employees of Advanced ID

Name of Beneficial Owner Number of Percentage of
Warrants Beneficially Owned

Dan Finch 200,000 1.3%
Sudeep Bhargava 0 0%

(iv) Directors and Officers of Advanced ID as a Group

Name of Beneficial Owner Number of Percentage of
Warrants Beneficially Owned

Directors/Officers 1,750,000 11.9%

Based upon 15,000,000 outstanding warrants as of September 30, 2007.

Securities Authorized For Issuance under Equity Compensation Plans
------------------------------------------------------------------

Plan Category Number of Securities
Issued Upon Exercise of Weighted Average Exercise Number of Securities
Outstanding Options, Price of Outstanding Options Remaining Available
Warrants and Rights Warrants and Rights For Future Issuance

(a) (b) (c)
Equity Compensation Plans
Approved by Security Holders n/a n/a n/a
Equity Compensation Plans
Not Approved by Security
Holders 14,745,417 $0.44 n/a
Total 14,745,417 $0.44 n/a

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Heritage Ventures Ltd.
----------------------
Heritage is a venture capital company specializing in assisting
software and technology companies. Upon entering into a reverse merger
transaction between AVID Canada Corporation and USA Sunrise Beverages,
Inc., Heritage sold its ownership in AVID Canada Corporation in return
for 28,000,000 common shares in USA Sunrise Beverages, Inc. whose name
was changed to Advanced ID Corporation effective November 15, 2002. Of

the 28,000,000 shares received by Heritage, a portion of these shares
was paid to certain creditors of AVID in exchange for approximately
$703,581 in debt.

Director Independence
---------------------
Advanced ID's board of directors consists of Dan Finch, Seymour
Kazimirski, Hubert Meier and Terry Fields. Dan Finch and Seymour
Kazimirski are not independent as such term is defined by a national
securities exchange or an inter-dealer quotation system.

During the six months ended June 30, 2007, there were no transactions
with related persons other than as described below.

Seymour Kazimirski
------------------
In addition to being a director of Advanced ID, Mr. Kazimirski also
provides consulting services to Advanced ID for the purpose of
assisting with product and market development. Specifically, Mr.
Kazimirski has been responsible for establishing distribution partners
in countries located outside of North America, assisting the company in
finding and negotiating supplier partnership agreements, and other
general business tasks as requested by the company. There exists no
written consulting agreement in place but it has been mutually agreed
that Mr. Kazimirski will receive $175 per hour for his services for an
undefined term which began January 3, 2003. For fiscal 2006, Mr.
Kazimirski was paid $105,315 in consulting fees. For fiscal 2005, Mr.
Kazimirski was paid consulting fees totaling $79,643.

Hubert Meier
------------
In addition to being a director of Advanced ID, Mr. Meier also provides
consulting services to Advanced ID for the purpose of assisting with
product and supplier development. Specifically, Mr. Meier has been
responsible for development, manufacturing and testing of our DataTRAC(tm)
RFID tags, sourcing microchip manufacturers, sourcing reader
manufacturers, sourcing antennae design suppliers, and overall product
development. Mr. Meier receives $175 per hour for his services. For
fiscal 2006, Mr. Meier was paid $31,712 in consulting fees. For fiscal
2005, Mr. Meier was paid consulting fees totaling $4,725.

David Goldenberg
----------------
Mr. Goldenberg is a past director of Advanced ID. Mr. Goldenberg
provides consulting services to Advanced ID for the purpose of
corporate reporting and is the Interim CFO and Secretary. Mr.
Goldenberg receives $175 per hour for his services. For fiscal 2006,
Mr. Goldenberg was paid $3,238 in consulting fees. For fiscal 2005,
Mr. Goldenberg was paid consulting fees totaling $4,466.

Terry Fields
------------
Mr. Fields is a director of Advanced ID. Mr. Fields also provides
consulting services to Advanced ID in the area of investor relations
and public relations. Mr. Fields receives $175 per hour for his
services. For fiscal 2006, Mr. Fields was paid $21,000 in consulting
fees. For fiscal 2005, Mr. Fields was paid consulting fees totaling
$36,200.

Convertible Debenture
---------------------
On April 28, 2003, Advanced ID signed a convertible debenture agreement
with Mr. Li, a former Director. The lender provided a loan for
$100,000, with $50,000 received upon execution and the balance to be
received upon satisfaction of specific conditions. At December 31,
2005, Advanced ID had received $50,000 under the agreement. During
2006, this note was converted into common stock at $0.25 per share, as
per the original note agreement.

In connection with this note, Advanced ID also issued third party
warrants to acquire 250,000 shares of Advanced ID common stock at $0.25
per share. During 2006, these warrants were exercised resulting in the
issuance of 250,000 shares of common stock.

Related party loan
------------------
As part of the acquisition with AFG Asia on July 1, 2005, $21,289 of
loan from a related party were acquired. Interest on the loan is
3.6%. As of December 31, 2006, the balance on the loan is $14,388.
$6,641 of the loan is scheduled to be paid back in 2007 with the
remaining $7,747 to be paid back over the following three years.
The collateral on this loan is a company car that was purchased in
2004 with the proceeds.

Board of Directors' Stock Option Exercise Price
-----------------------------------------------
On August 3, 2007, the Board of Directors of Advanced ID unanimously
voted to increase the stock option exercise price to $0.50 per share on
800,000 options granted to directors. Previously, these options were
exercisable at $0.40 per share.

DESCRIPTION OF CAPITAL STOCK

The following statements constitute brief summaries of Advanced ID's
certificate of incorporation and bylaws, as amended.

Common Shares. Advanced ID's articles of incorporation authorize it to
issue up to 100,000,000 common shares and 500,000 preferred shares,
$0.01 par value per common and preferred share.

Liquidation Rights. Upon liquidation or dissolution, each outstanding
common share will be entitled to share equally in the assets of
Advanced ID legally available for distribution to shareholders after
the payment of all debts and other liabilities.

Dividend Rights. There are no limitations or restrictions upon the
rights of the board of directors to declare dividends out of any funds
legally available therefore. Advanced ID has not paid dividends to date
and it is not anticipated that any dividends will be paid in the
foreseeable future. The board of directors initially may follow a
policy of retaining earnings, if any, to finance the future growth of
Advanced ID. Accordingly, future dividends, if any, will depend upon,
among other considerations, Advanced ID's need for working capital and
its financial conditions at the time.

Voting Rights. Holders of common shares of Advanced ID are entitled
to voting rights of one hundred percent. Holders may cast one vote for
each share held at all shareholders meetings for all purposes.

Other Rights. Common shares are not redeemable, have no conversion
rights and carry no preemptive or other rights to subscribe to or
purchase additional common shares. Common Shares do not have
cumulative voting features. Our bylaws allow action to be taken by
written consent rather than at a meeting of stockholders with the
consent of the holders of a majority of shares entitled to vote.

Transfer Agent. Signature Stock Transfer, Inc. of 2301 Ohio Drive,
Suite 100, Plano, Texas, 75093 acts as Advanced ID's transfer agent.

Units. The units consist of one common share and one common stock
purchase warrant. The securities are immediately detachable from the
units. The warrants are exercisable for three years from the effective
date of the offering at an exercise price of $.40.

SHARES ELIGIBLE FOR FUTURE SALE

Upon the date of this prospectus, there are 54,137,248 shares of our
common stock outstanding of which 37,355,668 common shares may be
freely traded without restriction.

Upon the effectiveness of this registration statement and subsequent
exercise of the warrants, up to an additional 9,591,251 common shares
may be issued and will be eligible for immediate resale in the public
market. The remaining common shares will be restricted within the
meaning of Rule 144 under the Securities Act, and are subject to the
resale provisions of Rule 144.

In general, under Rule 144, a person who has beneficially owned, for at
least one year, shares of common stock that have not been registered
under the Securities Act or that were acquired from an affiliate of
Advanced ID is entitled to sell within any three-month period the
number of shares of common stock that does not exceed the greater of:

- one percent of the number of then outstanding shares of common
stock, or

- the average weekly reported trading volume during the four
calendar weeks preceding the sale.

Sales under Rule 144 are also subject to notice and manner of sale
requirements and to the availability of current public information and
must be made in unsolicited brokers' transactions or to a market maker.
A person who is not an affiliate of Advanced ID under the Securities
Act during the three months preceding a sale and who has beneficially
owned such shares for at least two years is entitled to sell the shares
under Rule 144 without regard to the volume, notice, information and
manner of sale provisions. Affiliates must comply with the restrictions
and requirements of Rule 144 when transferring restricted shares even
after the two year holding period has expired and must comply with the
restrictions and requirements of Rule 144 in order to sell unrestricted
shares.

No predictions can be made of the effect, if any, that market sales of
shares of common stock or the availability of such shares for sale will
have on the market price prevailing from time to time. Nevertheless,
sales of significant amounts of our common stock could adversely affect
the prevailing market price of the common stock, as well as impair our
ability to raise capital through the issuance of additional equity
securities.

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES

Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of
the small business issuer as provided in the foregoing provisions, or
otherwise, the small business issuer has been advised that in the
opinion of the SEC such indemnification is against public policy as
expressed in the Securities Act and is, therefore, unenforceable.

In the event that a claim for indemnification against such liabilities,
other than the payment by the small business issuer of expenses
incurred or paid by a director, officer or controlling person of the
small business issuer in the successful defense of any action, suit or
proceeding, is asserted by such director, officer or controlling person
in connection with the securities being registered, the small business
issuer will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.

MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market Information
------------------
Our common stock is traded over the counter and is quoted by the Over
The Counter Bulletin Board (OTCBB) under the trading symbol AIDO. Our
common stock began trading on the OTCBB effective October 17, 2002 upon
conclusion of our reverse merger with USA Sunrise Beverages, Inc. The

market prices noted below were obtained from the OTCBB and reflect
inter-dealer prices, without retail mark-up, mark-down or commission
and may not represent actual transactions.

Fiscal 2007 Fiscal 2006 Fiscal 2005
----------- ----------- -----------
High Low High Low High Low
---- --- ---- --- ---- ---
First Quarter $0.42 $0.23 $0.43 $0.12 $0.49 $0.27
Second Quarter $0.48 $0.29 $1.40 $0.28 $0.39 $0.21
Third Quarter $0.32 $0.22 $0.38 $0.21 $0.30 $0.18
Fourth Quarter $0.32 $0.21 $0.19 $0.12

Holders
-------
As of September 30, 2007, the approximate number of shareholders of
common stock of Advanced ID was 1,772.

Dividends
---------
We have not declared any cash dividends on our common stock since our
inception and do not anticipate paying any dividends in the foreseeable
future. We plan to retain any future earnings for use in our business.
Any decisions as to future payment of dividends will depend on our
earnings and financial position and such other factors as the board of
directors deems relevant.

EXPERTS

The financial statements of Advanced ID appearing in this registration
statement have been audited by LBB & Associates, Ltd., LLP, independent
auditors and are included in reliance upon such report given upon the
authority of such firm as experts in accounting and auditing.

LEGAL PROCEEDINGS

We are not a party to any legal proceedings the outcome of which, in
the opinion of our management, would have a material adverse effect on
our business, financial condition, or results of operation.

LEGAL MATTERS

The validity of the units being offered hereby will be passed upon by
Jody M. Walker, Attorney At Law, Centennial, Colorado.

WHERE YOU CAN FIND MORE INFORMATION

At your request, we will provide you, without charge, a copy of any
document filed as exhibits in this prospectus. If you want more
information, write or call us at:

Advanced ID Corporation
4500 - 5 Street NE
Calgary, Alberta Canada T2E 7C3
Telephone: (403) 264-6300

Attention: Daniel Finch, Chief Executive Officer

Our fiscal year ends on December 31st. We are a reporting company and
file annual, quarterly and current reports with the SEC. You may read
and copy any reports, statements, or other information we file at the
SEC's public reference room at 450 Fifth Street, N.W., Washington D.C.
20549. You can request copies of these documents, upon payment of a
duplicating fee by writing to the SEC. Please call the SEC at 1-800-
SEC-0330 for further information on the operation of the public
reference rooms. Our SEC filings are also available to the public on
the SEC Internet site at http:\\www.sec.gov.

FINANCIAL STATEMENTS

The following financial statements required by Item 310 of Regulation
S-B are furnished below:

Consolidated Balance Sheets,
June 30, 2007(unaudited) and December 31, 2006
Consolidated Statements of Operations and Comprehensive Loss
for the three and six months ended
June 30, 2007 and 2006
(unaudited)
Consolidated Statements of Cash Flows for the
three and six months ended June 30, 2007
and 2006 (unaudited)
Notes to consolidated financial statements

Report of Independent Registered Public Accounting Firm dated April 6,
2007.
Consolidated Balance Sheet - December 31, 2006
Consolidated Statements of Operations for the periods ended December
31, 2006 and 2005.
Consolidated Statement of Stockholders' Equity and Comprehensive Loss
for the years ended December 31, 2006 and 2005.
Consolidated Statements of Cash Flows for the years ended December 31,
2006 and 2005.
Notes to Consolidated Financial Statements.

40
ADVANCED ID CORPORATION
CONSOLIDATED BALANCE SHEETS

June 30, December
2007 31, 2006
---------- -----------
(Unaudited)

ASSETS
CURRENT ASSETS:
Cash $ 145,833 $ 266,787
Trade accounts receivable, net of allowance for
doubtful accounts of $5,355 and $4,896 163,274 110,883
Inventory 117,003 44,386
Prepaid expenses 78,625 34,399
---------- ----------
Total current assets 504,735 456,455
---------- ----------
Property and equipment, net 125,693 143,960
Goodwill 55,486 55,486
---------- ---------
Total other assets 181,179 199,446
---------- ---------
Total assets $ 685,914 $ 655,901
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 139,220 $ 112,959
Accounts payable - related parties 205,103 166,092
Current portion of loan payable - related party 3,743 6,641
Accrued expenses 22,689 90,417
---------- ----------
Total current liabilities 370,755 376,109

Loans payable - related parties, net of
Current portion 8,733 7,747
---------- ----------
Total liabilities 379,488 383,856
---------- ----------
MINORITY INTEREST IN AFG ASIA ENGINEERING 47,022 38,723
---------- ----------
COMMITMENTS

STOCKHOLDERS' EQUITY:
Series A preferred stock, $0.01 par; 500,000 shares
authorized; none issued - -
Common stock, $0.01 par; 100,000,000 shares
authorized; 54,937,845 and 52,219,914 shares
issued and outstanding, respectively 549,379 522,199
Additional paid-in capital 7,537,375 6,000,805
Subscriptions receivable (195,000) (22,000)
Accumulated deficit (7,647,323) (6,284,159)

Accumulated other comprehensive income 14,973 16,477
---------- ----------
Total stockholders' equity 259,404 233,322
---------- ----------
Total liabilities and stockholders' equity $ 685,914 $ 655,901
========== ==========

The accompanying notes are an integral part
of these consolidated financial statements

42
ADVANCED ID CORPORATION
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2007 2006 2007 2006
---------- ---------- ---------- ----------

Revenues $ 239,158 $ 181,007 $ 469,097 $ 407,243
Cost of Revenue 129,839 119,990 286,883 233,391
----------- ----------- ----------- -----------
Gross Profit 109,319 61,017 182,214 173,852

Research and development expense 9,840 29,012 16,809 55,942
General and administrative
expense 1,041,726 1,386,732 1,366,805 1,756,953
----------- ----------- ----------- -----------

Operating loss (942,247) (1,354,727) (1,201,400) (1,639,043)

Interest income (expense) 1,504 (3,393) 2,182 (7,146)
----------- ----------- ----------- -----------
Loss before minority interest (940,743) (1,358,120) (1,199,218) (1,646,189)
Minority interest 867 1,598 (8,299) (790)
----------- ----------- ----------- -----------
Net Loss (939,876) (1,356,522) (1,207,517) (1,646,979)

Warrant holder inducement
Dividend (155,647) - (155,647) -
----------- ----------- ----------- -----------
Net loss applicable to common
shareholders (1,095,523) (1,356,522) (1,363,164) (1,646,979)
Other Comprehensive Income,
(loss):
Foreign currency
translation (12,714) 3,690 (1,503) (5,185)
----------- ----------- ----------- -----------
Comprehensive Loss $(1,108,237) $(1,352,832) $(1,364,667) $(1,652,164)
=========== =========== =========== ===========
Net loss per share:
Basic and diluted $ (0.02) $ (0.03) $ (0.02) $ (0.03)
========== ========= ========= =========
Weighted average shares
Outstanding
Basic and diluted 53,525,584 48,896,230 53,083,046 47,460,960
========== ========== ========== ==========

The accompanying notes are an integral part
of these consolidated financial statements

43
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 2007 AND 2006
(Unaudited)

2007 2006
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,207,517) $ (1,646,979)
Adjustments to reconcile net loss to
cash used in operating activities:
Depreciation 46,559 26,031
Stock issued for services - 378,275
Stock options issued for services 613,012 854,275
Increase in allowance for doubtful accounts - 800
Minority interest 8,299 790
Change in assets and liabilities:
Accounts receivable (52,391) 40,666
Inventory (72,617) (2,166)
Prepaid expenses (44,226) 497
Accounts payable 26,261 (48,059)
Accounts payable - related parties 366,602 (17,666)
Accrued expenses (67,728) 39,212
---------- ----------
CASH FLOWS USED IN OPERATION ACTIVITIES (383,746) (374,324)
---------- ----------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of property and equipment (17,642) (9,967)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on loans payable - related party (1,912) (21,121)
Proceeds from sale of stock 231,000 272,750
Proceeds from the exercise of stock
Options/warrants 63,500 228,000
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES 292,588 479,629
---------- ----------

EFFECT OF EXCHANGE RATE CHANGES (12,154) (5,185)
---------- ----------
NET INCREASE(DECREASE) IN CASH (120,954) 90,153
Cash, beginning of period 266,787 198,814
---------- ----------
Cash, end of year $ 145,833 $ 288,967
========== ==========
CASH PAID FOR:
Interest $ - $ -
Taxes $ - $ -
NON CASH INVESTING AND FINANCING
TRANSACTIONS:
Common stock issued for debt $ 327,591 $ 86,000
Common stock issued for assets $ - $ 150,000

The accompanying notes are an integral part
of these consolidated financial statements

44
ADVANCED ID CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Advanced ID
Corporation ("Advanced ID") have been prepared in accordance with
accounting principles generally accepted in the United States of
America and the rules of the Securities and Exchange Commission
("SEC"), and should be read in conjunction with the audited financial
statements and notes thereto contained in the Company's Annual Report
filed with the SEC on Form 10-KSB. In the opinion of management, all
adjustments, consisting of normal recurring adjustments, necessary for
a fair presentation of financial position and the results of operations
for the interim periods presented have been reflected herein. The
results of operations for our interim periods are not necessarily
indicative of the results to be expected for the full year. Notes to
the financial statements which would substantially duplicate the
disclosure contained in the audited financial statements for fiscal
2006, as reported in the Form 10-KSB filed on April 18, 2007, have been
omitted.

NOTE 2 - COMMON STOCK

During the six months ended June 30, 2007, Advanced ID issued a total
of 2,717,931 shares of common stock; 840,000 shares of common stock
were issued for cash proceeds of $224,000, $7,000 was collected from a
subscription receivable, 811,667 shares of common stock were issued on
the exercise of warrants for $63,500 and subscription receivable of
$180,000, and 1,066,264 shares of common stock were issued as
settlement of debt valued at $327,591.

During the six months ended June 30, 2007, the Company issued warrants
to purchase 2,040,000 shares of common stock; 1,590,000 warrants expire
one year from the date of issuance and are exercisable at $.40 per
share and 450,000 warrants expire in three years from the date of
issuance and are exercisable at $.32 - $.36 per share.

In May 2007, the Board approved the vesting of the President's
remaining 800,000 options that were originally granted as part of his
initial employment contract.

In May 2007, the Board approved an option plan to issue each board
member 200,000 common shares at $0.36 per common share for a term of
five years.

In May 2007, the Board authorized options to purchase 50,000 common
shares with a term of 5 years to its employee and consultant. These
common shares shall be registered under Form S-8 with the Securities
and Exchange Commission.

As an inducement to all warrant holders with $0.30 exercise price, the
Company has offered to issue two new warrants for each warrant
exercised. These new warrants expire one year from issuance and are
exercisable at $0.40 per share. During May 2007, 500,000 warrants with
an exercise price of $0.30 per share were exercised. As a result,
1,000,000 additional warrants with an exercise price of $0.40 per share
were issued. The Company has recorded a warrant holder inducement
dividend of $155,647 related to the additional warrants issued.

NOTE 3 - COMMITMENTS

As part of an employee's compensation, the Company has agreed to issue
10,000 registered shares on July 15, 2007 and January 15, 2008.

The Company has agreed to pay each director $1,500 per month as part of
their compensation. In addition, each director will be paid $175 per
hour for their services rendered on behalf of the Company.

On June 6, 2007, the Company entered into a new lease for office space.
The five year lease commences September 1, 2007 with estimated minimum
lease payments of approximately $2,500 per month.

NOTE 4 - SUBSEQUENT EVENTS

Effective July 1, 2007, the Company acquired all of the assets of Pneu-
Logic, Ltd. for total consideration of $800,000 comprised of $400,000
cash and 1,000,000 restricted shares of Advanced ID Corporation valued
at $400,000. The cash component consists of $100,000 paid on the date
of closing and ten $30,000 monthly installments commencing October 1,
2007 based on meeting certain revenue targets. Pneu-Logic Ltd. is
engaged in the business of fleet tire management.

Effective July 1, 2007, the Company entered into an agreement to sell
its 60% share of Advanced ID Asia Engineering Co. Ltd. The closing
date of the agreement is contingent on several engineering related
performance conditions on the part of the acquirer and is scheduled to
occur no later than December 31, 2007. The Company is to receive
engineering and consulting services and other increased license fee
consideration, in exchange for conveyance of its 60% share. The
carrying amount of the major classes of assets and liabilities included
in this disposal group are as follows as of June 30, 2007:

Current assets $138,601
Property and equipment, net 53,191
Current liabilities (31,882)
Loans payable - related party (12,476)

During July and August 2007, 402,161 shares valued at $111,381 were
issued in exchange for services.

On August 3, 2007, the Board of Directors of the Company unanimously
voted to increase the stock option exercise price to $0.50 per share on
800,000 options granted to Directors. Previously, these options were
exercisable at $0.40 per share. This change will be filed with the SEC
filings effective September 30, 2007.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
Advanced ID Corporation
Calgary, Alberta, Canada

We have audited the accompanying consolidated balance sheet of Advanced
ID Corporation (the "Company") as of December 31, 2006, and the related
consolidated statements of operations, stockholders' equity and
comprehensive loss and cash flows for each of the years in the two-year
period ended December 31, 2006. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting.
Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control over
financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position
of Advanced ID Corporation as of December 31, 2006 and the results of
its operations and its cash flows for each year in the two-year period
ended December 31, 2006 in conformity with accounting principles
generally accepted in the United States of America.

As discussed in Note 3 to the consolidated financial statements, the
Company's absence of significant revenues, recurring losses from
operations, and its need for additional financing in order to fund its
projected loss in 2007 raise substantial doubt about its ability to

continue as a going concern. The 2006 consolidated financial
statements do not include any adjustments that might result from the
outcome of this uncertainty.

LBB & Associates, Ltd., LLP
Houston, Texas

April 6, 2007

48
ADVANCED ID CORPORATION
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2006

ASSETS
CURRENT ASSETS:
Cash $ 266,787
Trade accounts receivable, net of allowance for
doubtful accounts of $4,896 110,883
Inventory 44,386
Prepaid expenses 34,399
----------
Total current assets 456,455

Property and equipment, net 143,960
Goodwill 55,486
----------
Total other assets 199,446
----------
Total assets $ 655,901
==========

LIABILITIES AND
STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 112,959
Accounts payable - related parties 166,092
Current portion of loan payable - related party 6,641
Accrued liabilities 90,417
----------
Total current liabilities 376,109

Loans payable - related parties, net of
Current portion 7,747
----------
Total liabilities 383,856
----------
MINORITY INTEREST IN AFG ASIA ENGINEERING 38,723
----------
COMMITMENTS

STOCKHOLDERS' EQUITY:
Series A preferred stock, $0.01 par; 500,000 shares
authorized; none issued -
Common stock, $0.01 par; 100,000,000 shares
authorized; 52,219,914 shares outstanding 522,199
Additional paid-in capital 6,000,805
Subscriptions receivable (22,000)
Accumulated deficit (6,284,159)

Accumulated other comprehensive income 16,477
----------
Total stockholders' equity 233,322
----------
Total liabilities and stockholders' equity $ 655,901
==========

See accompanying summary of accounting policies
and notes to financial statements.

ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005

2006 2005
---------- ----------
REVENUES $ 889,089 $1,027,723
COST OF REVENUES 539,655 582,171
----------- ----------
Gross profit 349,434 445,552

RESEARCH AND DEVELOPMENT EXPENSE 73,091 236,445
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 2,467,705 1,229,538
----------- ---------
Loss from operations (2,191,362) (1,020,431)
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 496 -
Other income 2,438 910
Interest expense (8,932) (17,913)
----------- -----------
Total other income (expenses) (5,998) (17,003)
----------- -----------
Loss before minority interest (2,197,360) (1,037,434)

Minority interest (13,943) (12,771)
----------- -----------
Net Loss $(2,211,303) $(1,050,205)
=========== ===========
Comprehensive Loss:
Foreign currency translation 560 (9,537)
----------- -----------
Comprehensive Loss $(2,210,743) $(1,059,742)
=========== ===========

Basic and diluted loss per share $(0.05) $(0.02)
=========== ===========
Basic and diluted weighted average
Shares outstanding 48,981,027 43,248,255
=========== ===========

See accompanying summary of accounting policies
and notes to financial statements.

ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005

Additional
Common Stock Paid -in Subscription
Shares Amounts Capital Received
---------------- ---------- -----------

BALANCE, December 31, 2004 42,155,341 $421,553 $3,113,563 $ -

Comprehensive loss:
Net loss - - - -
Foreign currency - - - -
Total comprehensive loss

Stock issued for services 540,000 5,400 114,300 -
Stock issued for cash 1,595,002 15,950 223,300 -
Stock issued on acquisition 350,000 3,500 70,000 -
Stock issued for compensation 730,000 7,300 146,000 -
---------- ------- --------- -------
BALANCE, December 31, 2005 45,370,343 453,703 3,667,163 -

Comprehensive loss:
Net loss - - - -
Foreign currency - - - -
Total comprehensive loss

Stock issued for services 1,319,485 13,195 429,668 -
Stock issued for cash 3,513,594 35,136 563,864 (22,000)
Stock issued on purchase of
assets 500,000 5,000 145,000 -
Stock issued on conversion of
debt 263,158 2,632 83,368 -
Exercise of options and
warrants 1,253,334 12,533 257,467 -
Compensation expense on
issuance of options - - 854,275 -
---------- -------- ---------- --------
BALANCE, December 31, 2006 52,219,914 $522,199 $6,000,805 $(22,000)
========== ======== ========== ========

52
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005
(Continued)

Accumulated
Other Total
Comprehensive Accumulated Stockholders'
Income Deficit Equity
------------- ----------- -------------

BALANCE, December 31, 2004 25,454 (3,022,651) 537,919

Comprehensive loss:
Net loss - (1,050,205) (1,050,205)
Foreign currency (9,537) - (9,537)
-----------
Total comprehensive loss (1,059,742)
-----------
Stock issued for services - - 119,700
Stock issued for cash - - 239,250
Stock issued on acquisition - - 73,500
Stock issued for compensation - - 153,300
------- ---------- ----------
BALANCE, December 31, 2005 15,917 (4,072,856) 63,927

Comprehensive loss:
Net loss - (2,211,303) (2,211,303)
Foreign currency 560 - 560
---------
Total comprehensive loss (2,210,743)
---------
Stock issued for services - - 442,863
Stock issued for cash - - 577,000
Stock issued on purchase of assets - - 150,000
Stock issued on conversion of debt - - 86,000
Exercise of options and warrants - - 270,000
Compensation expense on issuance of
options - - 854,275
--------- ----------- ---------
BALANCE, December 31, 2006 $ 16,477 $(6,284,159) $ 233,322
========= =========== =========

See accompanying summary of accounting policies
and notes to financial statements

53
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,211,303) $(1,050,205)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 76,542 14,672
Common stock issued for services 442,863 119,700
Stock option expense 854,275 -
Non-cash compensation - 153,300
Non-cash interest - 12,552
Minority interest 13,943 12,771
Change in assets and liabilities:
Trade accounts receivable 12,974 (64,818)
Inventory (2,244) 39,584
Prepaid expenses (28,432) 4,538
Accounts payable (9,308) 61,811
Accounts payable - related parties 41,214 119,304
Accrued liabilities 72,673 (40,251)
---------- ----------
Net cash used in operating activities (736,803) (617,042)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in AFG Asia Engineering Co., Ltd. - 18,343
Purchase of fixed assets (16,175) (7,646)
---------- ----------
Net cash provided (used) by investing activities (16,175) 10,697
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock 577,000 239,250
Proceeds from options and warrants exercised 270,000 -
Principal payments on
loans payable - related parties (20,347) (5,866)
Principal payments on notes payable - -
---------- ----------
Net cash provided by financing activities 826,654 233,384
---------- ----------

Foreign currency translation effect (5,703) (4,709)
---------- ----------

NET INCREASE (DECREASE) IN CASH 67,973 (377,670)
CASH AND CASH EQUIVALENTS, beginning of year 198,814 576,484
---------- ----------
CASH AND CASH EQUIVALENTS, end of year $ 266,787 $ 198,814
========== ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Payment of interest $ - $ -
Payment of taxes $ - $ -

NON CASH FINANCING ACTIVITIES:
Acquisition of AFG Asia Engineering
for stock, net of cash received $ - $ 55,157
Common stock issued for subscription
receivable $ 22,000 $ -
Common stock issued for debt $ 86,000 $ -
Common stock issued for assets $150,000 $ -

See accompanying summary of accounting policies
and notes to financial statements

55
ADVANCED ID CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - NATURE OF OPERATIONS
Advanced ID Corporation ("Advanced ID" or the "Company") was originally
incorporated in South Dakota on August 13, 1990. Advanced ID is in the
business of marketing Radio Frequency Identification ("RFID") products
for the purpose of identification and trace back of animals in the
companion animal, biological sciences and agricultural sectors.
Advanced ID is the Canadian re-seller of products manufactured by Avid
Marketing Inc. In 2004, Advanced ID began commercializing its
proprietary ultra high frequency DataTRAC(tm) tags, readers, and trace
back management solutions to minimize or eliminate the spread of
disease, and the resulting impact of biosecurity and food safety issues
related to the livestock industry. During 2005, the Company commenced
selling Ultra High Frequency identification tags to a tire company.
The sales of RFID tire tags to Goodyear helped the Company focus on
supply chain RFID as an additional line of business. By the end of
2006 the Company had initial sales of tire tags, tire patches and UHF
RFID readers associated with the tire management industry to ten
companies in six countries. Additionally, the Company is enjoying a
higher level of interest and sales in the general supply chain business
in Asia. Lastly, the Company's universal RFID reader product line will
be released early next year.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United
States of America and include the following significant accounting
policies:

Basis of Consolidation
----------------------

The consolidated financial statements include the accounts of Advanced
ID Corporation, its wholly-owned subsidiaries Avid Canada Corporation,
Universal Pet Care, Inc. ("UPC") and a sixty percent owned subsidiary
Advanced ID Asia Engineering Co. Ltd. ("AFG"). All significant inter-
company accounts and transactions have been eliminated in
consolidation.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts
reported in these financial statements and accompanying notes. Actual
results could differ from these estimates.

Concentration of Risk
---------------------
The Company places its cash and temporary cash investments with
established financial institutions. At various times during the year,
the Company maintained cash balances in excess of insurable limits.
Management feels this risk is mitigated due to the longstanding
reputation of these banks. No losses have been incurred by the Company
related to this risk.

Foreign Currency Translation
----------------------------

Since Advanced ID is located in Canada, the Canadian dollar has been
designated as the functional currency. All balance sheet accounts have
been translated at the current exchange rate as of December 31, 2006.
Statement of operations items have been translated at average currency
exchange rates. The resulting translation adjustment is recorded as a
separate component of comprehensive loss within stockholders' equity.

Revenue Recognition
-------------------

Advanced ID recognizes revenue when persuasive evidence of an
arrangement exists, shipment has occurred, the sales price is fixed or
determinable and collectibility is probable.

Product sales are recognized by Advanced ID generally at the time
product is shipped. At the time revenue is recognized, Advanced ID
provides for the estimated cost of product warranties and reduces
revenue for estimated product returns.

When other significant obligations remain after products are delivered,
revenue is recognized only after such obligations are fulfilled.
Shipping and handling costs are included in cost of goods sold.

Research and Development Costs
------------------------------

Research and development costs are expensed as incurred.

Cash and Cash Equivalents
-------------------------

For the purposes of presenting cash flows, Advanced ID considers all
highly liquid investments with original maturities of three months or
less to be cash equivalents.

Allowance for Doubtful Accounts
-------------------------------

The Company provides an allowance against accounts receivables for
estimated losses that may result from our customers inability to pay.
The allowance is determined by analyzing known uncollectible accounts,
aged receivables, economic conditions, historical losses and changes in
customer's cycles and customer's credit-worthiness. Amounts later

determined and specifically identified to be uncollectible are charged
and written off against this allowance. To minimize the likelihood of
uncollectibility, the Company reviews our customer's credit worthiness
periodically based on independent credit reporting services, the
Company's experience with the customer and the economic condition of
the customer's industry. Material differences may result in the amount
and timing of expense for any period if the Company were to make
different judgements or utilize different estimates. If the financial
condition of our customers deteriorates resulting in an impairment of
their ability to make payments, additional allowances may be required.
The Company has not experienced significant variances in the past
between our estimated and actual doubtful accounts and anticipate that
we will be able to continue to make reasonable estimates in the future.

Inventory
---------

Inventory consists of finished goods held for resale and is recorded at
the lower of cost or net realizable value. Cost is determined on a
first in-first out basis.

Long-lived Assets
-----------------

Fixed assets are stated on the basis of historical cost less
accumulated depreciation. Depreciation is provided using the straight-
line method over the two to five year estimated useful lives of the
assets.

Impairment losses are recorded on long-lived assets used in operations
when indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the
assets' carrying amount. No impairment losses have been recorded since
inception. Expenditures for repairs and maintenance are expensed as
incurred. Expenditures for major renewals or betterments that extend
the useful lives of existing property and equipment are capitalized and
depreciated. Upon retirement or dispositions of property and
equipment, any resulting gain or loss is recognized consolidated
statement of operations.

Goodwill
--------

The Company accounts for goodwill in accordance with SFAS No. 141,
"Business Combinations," and SFAS No, 142, "Goodwill and Other
Intangible Assets." Under SFAS No. 142, goodwill and intangible assets
deemed to have an indefinite life are not amortized but are subject to
annual impairment tests.

Fair Value of Financial Instruments
-----------------------------------

The Company's financial instruments consist of cash and cash
equivalents, receivables and debt. The carrying amount of these
financial instruments approximates fair value due either to length of
maturity or interest rates that approximate prevailing market rates
unless otherwise disclosed in these consolidated financial statements.

Income Taxes
------------

Income taxes are computed using the asset and liability method. Under
the asset and liability method, deferred income tax assets and
liabilities are determined based on the differences between the
financial reporting and tax bases of assets and liabilities and are
measured using the currently enacted tax rates and laws. A valuation
allowance is provided for the amount of deferred tax assets that, based
on available evidence, are not expected to be realized.

Loss per Common Share
---------------------

Advanced ID is required to provide basic and dilutive earnings (loss)
per common share information.

The basic net loss per common share is computed by dividing the net
loss applicable to common stockholders by the weighted average number
of common shares outstanding.

Diluted net loss per common share is computed by dividing the net loss
applicable to common stockholders, adjusted on an "as if converted"
basis, by the weighted average number of common shares outstanding plus
potential dilutive securities. For 2006 and 2005, potential dilutive
securities had an anti-dilutive effect and were not included in the
calculation of diluted net loss per common share. Total shares
issuable upon the exercise of options, warrants, and the conversion of
debt for the years ended December 31, 2006 and 2005, were 61,493,664
and 51,067,845, respectively.

Stock Options
-------------

The Company uses the fair value accounting method as provided under
SFAS No. 123. The fair value of each option granted is estimated on
the date of grant using the Black-Scholes option-pricing model. The
following weighted average assumptions were used in the calculation of
the 2006 compensation expense: dividend yield $0, expected volatility
of 157.5%, risk-free interest rate of 5.8%, and expected lives of 5
years.

During 2005, the Company has elected to follow APB No. 25, and related
Interpretations in accounting for its employee stock options because,
as discussed below, the alternative fair value accounting provided for
under SFAS No. 123 requires the use of option valuation models that

were developed for use in valuing stock options. Under APB No. 25, no
compensation expense is recognized if the exercise price of the
Company's employee stock options equals the market price of the
underlying stock on the date of grant.

For purposes of pro forma disclosures, the estimated fair value of the
options is amortized to expense over the options' vesting period. Set
forth below is a summary of the Company's net income and earnings per
share as reported and pro forma as if the fair value-based method of
accounting defined in SFAS No. 123 had been applied. The pro forma
compensation expense may not be representative of future amounts
because options vest over several years and generally expire upon
termination of employment, and additional options may be granted in
future years.

The following table illustrates the effect on net income and earnings
per share if Advanced ID had applied the fair value recognition
provisions of FASB Statement No. 123, Accounting for Stock-Based
Compensation, to stock-based employee compensation.

Year Ended
December 31,
2005
-------------

Net loss, as reported $ (1,050,205)
Deduct: Total stock-based employee
compensation expense determined under
the fair value based method for all awards (745,736)
------------
Pro forma net loss $ (1,795,941)
Pro forma net loss per share:
Basic and diluted - as reported $ (0.02)
Basic and diluted - pro forma $ (0.04)

The fair value of each option granted is estimated on the date of grant
using the Black-Scholes option-pricing model with the following
weighted average assumptions: dividend yield $0, expected volatility of
100%, risk-free interest rate of 4.0%, and expected lives of 10 years.

Reclassifications
-----------------

Certain 2005 amounts have been reclassified to conform to 2006
presentation.

Recent Accounting Pronouncements
--------------------------------
In September 2006, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 157, Fair Value Measurements. SFAS No. 157 defines
fair value, establishes a framework for measuring fair value in GAAP,
and expands disclosures about fair value measurements. This statement
is effective for financial statements issued for fiscal years
beginning

after November 15, 2007. The Company is currently evaluating the impact
SFAS No. 157 will have on the Company's financial position, results of
operations, and cash flows.

In February 2007, the FASB issued SFAS No. 159 "The Fair Value Option for
Financial Assets and Financial Liabilities - including an amendment of
FASB statement No. 115." This Statement permits all entities to choose,
at specified election dates, to measure eligible items at fair value (the
"fair value option"). A business entity shall report unrealized gains
and losses on items for which the fair value option has been elected in
earnings (or another performance indicator if the business entity does
not report earnings) at each subsequent reporting date. Upfront costs
and fees related to items for which the fair value option is elected
shall be recognized in earnings as incurred and not deferred. If an
entity elects the fair value option for a held-to-maturity or available-
for-sale security in conjunction with the adoption of this Statement,
that security shall be reported as a trading security under Statement
115, but the accounting for a transfer to the trading category under
paragraph 15(b) of Statement 115 does not apply. Electing the fair value
option for an existing held-to-maturity security will not call into
question the intent of an entity to hold other debt securities to
maturity in the future. This statement is effective as of the first
fiscal year that begins after November 15, 2007. The Company is
currently analyzing the effects of SFAS 159 but does not expect its
implementation will have a significant impact on the Company's financial
condition or results of operations.

In July 2006, the FASB issued FASB Interpretation ("FIN") No. 48
Accounting for Uncertainty in Income Taxes - An Interpretation of FASB
Statement No. 109. FIN 48 prescribes detailed guidance for the financial
statement recognition, measurement, and disclosure of uncertain tax
positions recognized in an enterprise's financial statements in
accordance with SFAS No. 109, Accounting for Income Taxes. Tax positions
must meet a more-likely-than-not recognition threshold at the effective
date to be recognized upon the adoption of FIN 48 and in subsequent
periods. FIN 48 will be effective for fiscal years beginning after
December 15, 2006, and the provisions of FIN 48 will be applied to all
positions upon the adoption of the Interpretation. The cumulative effect
of this applying the provisions of this Interpretation will be reported
as an adjustment to the opening balance of retained earnings for that
fiscal year. The Company is currently evaluating the impact of FIN 48 on
the financial statements but does not believe that its adoption will have
a material effect on the Company's financial position, results of
operations, or cash flows.

In September 2006, the SEC issued Staff Accounting Bulletin No. 108,
Considering the Effects of Prior Year Misstatements when quantifying
Misstatements in Current Year Financial Statements ("SAB 108"). SAB 108
requires companies to evaluate the materiality of identified unadjusted
errors on each financial statement and related financial statement
disclosure using both the rollover approach and the iron curtain
approach, as those terms are defined in SAB 108. The rollover approach
quantifies misstatements based on the amount of the error in the current
year financial statement, whereas the iron curtain approach quantifies

misstatements based on the effects of correcting the misstatement
existing in the balance sheet at the end of the current year,
irrespective of the misstatement's year(s) of origin. Financial
statements would require adjustment when either approach results in
quantifying a misstatement that is material. Correcting prior year
financial statements for immaterial errors would not require previously
filed reports to be amended. If a company determines that an adjustment
to prior year financial statements is required upon adoption of SAB 108
and does not elect to restate its previous financial statements, then it
must recognize the cumulative effect of applying SAB 108 in fiscal 2006
beginning balances of the affected assets and liabilities with a
corresponding adjustment to the fiscal 2006 opening balance in retained
earnings. SAB 108 is effective for interim periods of the first fiscal
year ending after November 15, 2006, and will be adopted by the Company
in the first quarter of 2007. The Company does not expect the adoption
of this interpretation to have an impact on its financial position or
results of operations.

NOTE 3 - FINANCIAL CONDITION AND GOING CONCERN

Advanced ID has incurred losses for the years ended December 31, 2006
and 2005 of $2,211,303 and $1,050,205, respectively. Because of these
losses, Advanced ID will require additional working capital to develop
its business operations.

Advanced ID intends to raise additional working capital through private
placements, public offerings and/or bank financing. There are no
assurances that Advanced ID will be able to either (1) achieve a level
of revenues adequate to generate sufficient cash flow from operations;
or (2) obtain additional financing through either private placements,
public offerings and/or bank financing necessary to support Advanced
ID's working capital requirements. To the extent that funds generated
from operations and any private placements, public offerings and/or
bank financing are insufficient, Advanced ID will have to raise
additional working capital. No assurance can be given that additional
financing will be available, or if available, will be on terms
acceptable to Advanced ID.

These conditions raise substantial doubt about Advanced ID's ability to
continue as a going concern. The financial statements do not include
any adjustments relating to the recoverability and classification of
asset carrying amounts or the amount and classification of liabilities
that might be necessary should Advanced ID be unable to continue as a
going concern.

NOTE 4 - ACQUISITION OF AFG ASIA ENGINEERING

On July 1, 2005, Advanced ID acquired a 60% interest in AFG, located in
Chiang Mai, Thailand, for 350,000 shares of Advanced ID common stock.
AFG is a leader in the design and development of ultra high frequency
(UHF) radio frequency identification technology. The results of

operations of AFG have been included in these financial statements from
the date of acquisition. This acquisition has been valued at $73,500
based on the Company's closing share price of $0.21 on July 1, 2005.

The fair value of net assets acquired:

Cash $ 18,343
Non-cash working capita 3,779
Fixed assets 29,190
Loan from related parties (21,289)
Minority interest (12,009)
----------
Fair value of net assets acquired 18,014
Purchase price 73,500
----------
Goodwill $ 55,486
==========

NOTE 5 - PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

2006
----------

Equipment and furniture $ 25,616
Computer hardware and research and
development equipment 41,448
Vehicles 24,311
Building 9,823
Computer software 150,401
---------
Total assets 251,599
Less accumulated depreciation (107,639)
---------
Net book value $ 143,960
=========

Depreciation expense for 2006 was $76,542 (2005 - $14,672).

NOTE 6 - INCOME TAXES

Advanced ID has had losses since inception and therefore has no income
tax liability. The net deferred tax asset generated by the loss carry-
forward has been fully reserved. The cumulative Canadian net operating
loss carry-forward is approximately $4,385,000 at December 31, 2006,
and will expire in various years through 2015. Advanced ID recorded an
increase (decrease) in the valuation allowance of $340,000 and $(6,000)
for the years ended December 31, 2005 and 2004, respectively.

Deferred income taxes consist of the following at December 31, 2006:

2006
----------
Long-term:
Deferred tax assets $ 1,300,000
Valuation allowance (1,300,000)
-----------
$ -
===========

NOTE 7 - COMMON STOCK

During 2006, Advanced ID issued a total of 6,849,571 shares of common
stock. Of these, 3,513,594 shares were issued for cash proceeds of
$577,000 and a subscription receivable of $22,000; 1,319,485 were
issued for services valued at $442,863 shares (including 997,983 shares
issued to members of the Board of Directors valued at $363,024);
500,000 shares were issued for purchase of software valued at $150,000;
263,158 shares were issued to a former director for conversion of loans
payable and accounts payable for a total of $86,000; 753,334 shares
were issued on the exercise of warrants for proceeds of $213,500 and
500,000 shares were issued on the exercise of stock options for total
proceeds of $56,500 (including 50,000 shares issued to a member of the
Board of Directors for total proceeds of $11,500).

With the exception of the shares issued on the exercise of options and
warrants and the shares issued in connection with a private placement
to arm's-length parties, the shares were valued based on the closing
price on the date they were issued. The shares issued in connection
with private placements with arm's-length parties were valued based on
negotiated prices.

During 2005, Advanced ID issued a total of 3,215,002 shares of common
stock.

On July 1, 2005, Advanced ID issued 350,000 shares of Common Stock to
acquire a 60% interest in AFG Asia Engineering Co. Ltd.

On July 21, 2005, Advanced ID issued a total of 730,000 shares of
Common Stock to five employees as compensation for past services.
Advanced ID recorded a non-cash expense of $153,300 related to these
shares. The shares were valued based on the closing price on the date
they were awarded.

During 2005, Advanced ID issued 460,000 shares and 80,000 of Common
Stock for consulting services and director fees, respectively.
Advance ID recorded a total non-cash expense of $119,700 (Consulting
- $102,900, Director Fees $16,800) related to these shares. The
shares were valued based on the closing price on the date they were
awarded.

During 2005, Advanced ID issued a total of 1,595,002 shares (200,000
to a Director) of Common Stock for cash proceeds totaling $239,250.
In connection with the issuance of these shares, 1,595,002 warrants
were issued with a fair value of $140,031.

NOTE 8 - STOCK OPTIONS AND WARRANTS

Options:

During 2006, Advance ID's Board of Directors approved the issuance of
options to acquire 1,600,000 shares of common stock at $0.50 per share
to consultants and Board members. The Company recorded a non-cash
accounting charge of $854,275 for these options, which approximated the
fair value of such share based compensation as outlined in the provisions
of SFAS 123R.

During 2005, Advance ID's Board of Directors approved the issuance of
options to acquire 1,100,000 shares of common stock at $0.23 per share
to consultants and Board members. The Board also approved the
acceleration of the vesting of all options. As a result, 1,280,000
previously issued options became vested effective April 20, 2005. No
accounting charges were made for the issuance of these options nor for
the change in vesting dates.

The following table summarizes stock option activity:

Outstanding, January 1, 2006 2,730,000
Granted 1,600,000
Exercised (500,000)
Cancelled (150,000)
----------
Outstanding, December 31, 2006 3,680,000
==========
Exercisable at December 31, 2006 3,680,000
==========
Weighted-average grant-date fair value of
options, granted during the year $ 0.43
======
Weighted-average remaining, years of contractual life 6.38
======

Warrants:

In connection with the private placements in 2006, warrants to
acquire an additional 3,439,582 shares of common stock were issued.
These warrants are exercisable at $0.25 or $0.30 per common stock
and expire either 2 or 3 years from issuance. These warrants were
issued with a fair value of $611,286.

In connection with private placements in 2005, warrants to acquire an
additional 1,595,002 shares of common stock were issued. These
warrants are exercisable at $0.30 per common stock and expire three
years from issuance.

As of December 31, 2006, the Company had 5,453,750 warrants outstanding
of which 22,500 expire in 2007, 2,846,252 expire in 2008 and 2,584,998
expire in 2009.

NOTE 9 - RELATED PARTY TRANSACTIONS

On April 28, 2003, Advanced ID signed a convertible debenture agreement
with Mr. Li, a former Director. The lender provided a loan for
$100,000, with $50,000 received upon execution and the balance to be
received upon satisfaction of specific conditions. At December 31,
2005, Advanced ID had received $50,000 under the agreement. During
2006, this note was converted into common stock at $0.25 per share, as
per the original note agreement.

In addition to being a director of Advanced ID, Mr. Kazimirski provides
consulting services to Advanced ID for the purposes of assisting with
product and market development. Specifically, Mr. Kazimirski has been
responsible for establishing distribution partners in countries located
outside of North America, assisting the Company in finding and
negotiating supplier partnership agreements, and other general business
tasks as requested by the Company. There exists no written consulting
agreement in place but it has been mutually agreed that Mr. Kazimirski
will receive $175 per hour for his services for an undefined term, and
which began January 3, 2003. During 2006 and 2005, consulting fees
totaled $105,315 and $79,643 for his services, respectively.

In addition to being a director of Advanced ID, Mr. Meier provides
consulting services to Advanced ID for the purposes of assisting with
product and supplier development. Specifically, Mr. Meier has been
responsible for development, manufacturing and testing of our DataTRAC(tm)
RFID tags, sourcing microchip manufacturers, sourcing reader
manufacturers, sourcing antennae design suppliers, and overall product
development. His contract began on May 21, 2002 and expires in three
years or May 21, 2005. The contract was not renewed however Mr. Meier
continues to provide services based on his hourly rate. During 2006
and 2005 consulting fees totaled $31,712 and $4,725 for his services,
respectively.

In addition to being a director of Advanced ID, Mr. Goldenberg provides
consulting services to Advanced ID for the purpose of Corporate
reporting and is the Interim CFO and Secretary. During 2006 and 2005
consulting fees totaled $3,238 and $4,466 for his services,
respectively. Further, in 2006, rental payments on leased property of
$9,282 were made to Mr. Goldenberg.

In addition to being a director of Advanced ID, Mr. Fields provides
consulting services to Advanced ID for the purposes of assisting with
investor relations and stock development. Specifically, Mr. Fields has
been responsible for development of investor relations programs and
company funding activities such as private placements. His contract
began on May 21, 2002 and expires in three years or May 21, 2005. The
contract was not renewed however Mr. Fields continues to provide
services based on his hourly rate. During 2006 and 2005 consulting
fees totaled $21,000 and $36,200 for his services, respectively.

As part of the acquisition with AFG Asia on July 1, 2005, $21,289 of
loan from a related party were acquired. Interest on the loan is 3.6%.
As of December 31, 2006 the balance on the loan is $14,388. $6,641 of
the loan is scheduled to be paid back in 2007 with the remaining $7,747
to be paid back over the following three years. The collateral on this
loan is a company car that was purchased in 2004 with the proceeds.

NOTE 10 - COMMITMENTS

On September 15, 2005, Advanced ID entered into an employment agreement
with Dan Finch to act as the President and Chief Executive Officer.
Under the terms of this agreement, Mr. Finch is to receive an annual
base salary of $94,200 with a bonus to be determined annually by the
Board of Directors.

On April 15, 2003, Advanced ID entered into a consulting agreement with
Gottfried Auer related to the development and engineering of the
company's various RFID products. Under the terms of the consulting
agreement, compensation is based on a retainer of $5,000 per month for
an initial term that expired December 31, 2003, and which is currently
month to month. The consultant is entitled to receive a bonus of up to
$50,000 upon satisfaction of certain conditions. This agreement may be
terminated by either party upon prior written notice of 30 working
days.

The Company has a number of lease commitments related to office space
and equipment. Estimated future minimum lease payments under these
leases are as follows:

2007 19,993
2008 6,264
2009 6,264
2010 4,698
-------
$37,219
=======

Rent expense was $34,500 and $24,000 for the years ended December
31, 2006 and 2005, respectively.

Each director is compensated $1,500 per month resulting in a total
estimated directors' compensation of $90,000 per year ($18,000 per
director).

NOTE 11 - CONCENTRATIONS OF CREDIT RISK

As of December 31, 2006 and 2005, amounts due from customers which
exceeded 10% of trade accounts receivables amounted to $60,968 from two
customers and $106,156 from one customer, respectively.

We have only one customer which accounted for 22% of our total revenues
in 2006.

The Company has two vendors which accounted for approximately 23% of
total purchases in 2006.

NOTE 12 - SUBSEQUENT EVENTS

On January 1, 2007, the Company entered into an employment agreement
with Nadia Selemba to act as Sales Director. Under the terms of this
agreement, Ms. Selemba is to receive an annual base salary of $21,000
plus minimum annual commissions of $31,000. In addition, Ms. Selemba
is entitled to receive bonuses upon meeting certain sales targets.
On January 15, 2007, Advanced ID entered into an employment agreement
with Sudeep Bhargava to act as the Vice President of Operations. Under
the terms of this agreement, Mr. Bhargava is to receive an annual base
salary of $73,276 with a bonus to be determined annually by the Board
of Directors.

In January 2007, the Company issued 284,000 shares of Common Stock to
the former COO as compensation for termination of his employment
contract. In addition, the Company issued 35,000 shares of Common
Stock to four employees as a performance bonus.

Up to a Maximum of 6,000,000 Units and
3,591,251 Common Shares underlying
3,591,251 issued and outstanding Warrants

Prospectus

Advanced ID Corporation

November 8, 2007

YOU SHOULD ONLY RELY ON THE INFORMATION CONTAINED IN THIS PROSPECTUS.
WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION DIFFERENT
FROM THAT CONTAINED IN THIS PROSPECTUS. WE ARE OFFERING TO SELL, AND
SEEKING OFFERS TO BUY, UNITS ONLY IN JURISDICTIONS WHERE OFFERS AND
SALES ARE PERMITTED.

Until __________________2007, all dealers that effect transactions in
these securities, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to the dealers'
obligation to deliver a prospectus when acting as underwriters and with
respect to their unsold allotments or subscriptions.

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 24. Indemnification of Directors and Officers

Item 25. Other Expenses of Issuance and Distribution

The following table sets forth the estimated expenses to be incurred in
connection with the distribution of the securities being registered.
The registrant shall pay the expenses.

SEC Registration Fee . . . . . . $ 726.75
Printing and Engraving Expenses 1,500.00
Legal Fees and Expenses . . . . 20,000.00
Accounting Fees and Expenses. . 5,000.00
Miscellaneous . . . . . . . . . 1,920.00
----------
TOTAL . . . . . . . . . . . . . $29,146.75
==========

Item 26. Recent Sales of Unregistered Securities

Fiscal 2007 transactions.

During the six months ended June 30, 2007, Advanced ID issued warrants
to purchase 2,040,000 shares of common stock; 1,590,000 warrants expire
one year from the date of issuance and are exercisable at $.40 per
share and 450,000 warrants expire in three years from the date of
issuance and are exercisable at $.32 - $.36 per share.

In May 2007, the Board approved the vesting of the President's
remaining 800,000 options that were originally granted as part of his
initial employment contract.

In May 2007, the Board approved an option plan to issue each board
member 200,000 common shares at $0.36 per common share for a term of
five years.

On August 3, 2007, the Board of Directors of Advanced ID unanimously
voted to increase the stock option exercise price to $0.50 per share on
800,000 options granted to directors. Previously, these options were
exercisable at $0.40 per share.

As an inducement to all warrant holders with $0.30 exercise price,
Advanced ID has offered to issue two new warrants for each warrant
exercised. These new warrants expire one year from issuance and are
exercisable at $0.40 per share. During May 2007, 500,000 warrants with
an exercise price of $0.30 per share were exercised. As a result,
1,000,000 additional warrants with an exercise price of $0.40 per share
were issued. Advanced ID has recorded a warrant holder inducement
dividend of $155,647 related to the additional warrants issued.

All of the above securities issued in 2007 were issued pursuant to an
exemption from registration under Section 4(2) of the Securities Act of
1933 to sophisticated investors.

Fiscal 2006 transactions

During 2006, Advanced ID issued 1,608,594 common shares and 1,608,594
warrants for cash proceeds of $313,250.

During 2006, Advanced ID issued 1,319,485 common shares for services
valued at $442,863 shares, including 997,983 shares issued to members
of the board of directors valued at $363,024.

During 2006, Advanced ID issued 500,000 common shares for purchase of
software valued at $150,000.

During 2006, Advanced ID issued 263,158 shares were issued to Che Ki
Li, a former director, for conversion of loans payable and accounts
payable for a total of $86,000;

During 2006, Advanced ID issued 500,000 common shares on the exercise
of stock options for total proceeds of $56,500, including 50,000 shares
issued to a member of the board of directors for total proceeds of
$11,500.

All of the above securities issued in 2006 were issued pursuant to an
exemption from registration under Section 4(2) of the Securities Act of
1933 to sophisticated investors.

Fiscal 2005 transactions

On July 1, 2005, Advanced ID issued 350,000 shares of Common Stock to
acquire a 60% interest in AFG Asia Engineering Co. Ltd.

On July 21, 2005, Advanced ID issued a total of 730,000 shares of
Common Stock to five employees as compensation for past services valued
at $153,300.

During 2005, Advanced ID issued 460,000 shares to Financial Capital
Consultants for consulting services valued at $102,900 and 80,000
common shares for director fees valued at $16,800.

During 2005, Advance ID issued options to acquire 1,100,000 shares of
common stock at $0.23 per share to consultants and Board members.

All of the above securities issued in 2006 were issued pursuant to an
exemption from registration under Section 4(2) of the Securities Act of
1933 to sophisticated investors.

Item 27. Exhibits

INDEX TO EXHIBITS

Exhibit Number and Identification of Exhibit

(3) Articles of Incorporation, By-Laws and Stock Option Plan.
(i) Articles of Incorporation. 1
(ii) By-Laws. 1
(iii) Stock Option and Incentive Plan revised December 16,
2004. 7
(iv) Instruments defining common stock warrants. 5
(5) Consent and opinion of Jody M. Walker, Attorney At Law.
(10) Material Contracts.
(i) Agreement and Plan of Merger between AIDO Acquisition,
Inc., Advanced ID and Universal Pet Care, Inc. 4
(ii) Authorized Distributor Agreement with Trace Australia
Pty Ltd. 4
(iii) Consultant Agreement with Hubert Meier Consultancy Co.
dated May 21, 2002. 4
(iv) Convertible Debenture Purchase Agreement between
Universal Pet Care, Inc. and HEM Mutual Assurance LLC. 3
(v) $995,500 1% Convertible Debenture due January 20, 2009,
originally issued by Universal Pet Care, Inc., a Hawaii corporation to
HEM Mutual Assurance LLC on January 20, 2004.3

(vi) $4,500 1% Convertible Debenture due January 20,
2009, originally issued by Universal Pet Care, Inc., a Hawaii
corporation to HEM Mutual Assurance LLC on January 20, 2004.3
(vii) Strategic Partnership Agreement with Applied Wireless
Identifications Group, Inc. 5
(viii) Strategic Partnership Agreement with KSW Microtec
AG. 5
(ix) Strategic Partnership Agreement with Guide-Trend
Co., Ltd. 5
(x) Consulting Agreement with Gottfried Auer dated April
15, 2003.6
(xi) Authorized Exclusive Distributor Agreement with Kit Loong
Tyre Management Sdn Bhd dated September 15, 2007 7
(xii) Asset Purchase Agreement dated July 1, 2007 8

(11) Statement of Computation of Per Share Earnings
This Computation appears in the Financial Statements.
(21) Subsidiaries of the Registrant.
(i) AVID Canada Corporation, an Alberta private company
incorporated on November 26, 1993 is wholly owned by
the registrant.
(ii) Universal Pet Care, Inc., a Hawaii private company
incorporated on August 25, 1994 is wholly owned by
the registrant.

(23) Consent of Certified Public Accountant.

1 Filed previously on Form 10-KSB filed April 28, 1999.
2 Filed previously on Form 10-QSB filed May 13, 2004.
3 Filed previously on Form 8-K filed February 10, 2004.
4 Filed previously on Form SB-2 amendment 1 filed September 14, 2004.
5. Filed previously on Form SB-2 amendment 2 filed December 1, 2004.
6. Filed previously on Form SB-2 amendment 4 filed April 7, 2005
7. Filed previously on Form SB-2 amendment 2 filed October 2, 2007
8. Filed previously on Form 8-K filed November 6, 2007

Item 28. Undertakings

(a) The undersigned registrant undertakes:

(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
i. To include any prospectus required by Section 10(a)(3) of
the Securities Act;

ii. Reflect in the prospectus any facts or events arising after
the effective date of which, individually or together, represent a
fundamental change in the information in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of
securities offered, if the total dollar value of securities offered
would not exceed that which was registered and any deviation from the
low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the SEC in accordance
with Rule 424(b) of this chapter, if, in the aggregate, the changes in

volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effective registration statement; and

iii. Include any additional or changed material on the plan of
distribution.

(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered, and
the offering of such securities at that time shall be deemed to be the
initial BONA FIDE offering thereof.

(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.

(4) That, for the purpose of determining liability under the
Securities Act to any purchaser in the initial distribution of the
securities, the undersigned small business issuer will be a seller to
the purchaser and will be considered to offer or sell such securities
to such purchaser:
i. Any preliminary prospectus or prospectus of the
undersigned small business issuer relating to the offering required to
be filed pursuant to Rule 424 (section 230.424 of this chapter);
ii. Any free writing prospectus relating to the offering
prepared by or on behalf of the undersigned small business issuer or
used or referred to by the undersigned small business issuer;
iii. The portion of any other free writing prospectus
relating to the offering containing material information about the
undersigned small business issuer or its securities provided by or on
behalf of the undersigned small business issuer; and
iv. Any other communication that is an offer in the offering
made by the undersigned small business issuer to the purchaser.

(b) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling
persons of the registrant as provided in the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
SEC such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such
issue.

74
SIGNATURES

In accordance with the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements of filing on Form SB-2 and authorized
this registration statement to be signed on its behalf by the
undersigned, in the City of Calgary, Province of Alberta on the 8th day
of November 2007.

Advanced ID Corporation

By: /s/ Daniel Finch
Daniel Finch, President

In accordance with the requirements of the Securities Act of 1933, this
registration statement was signed by the following persons in the
capacities and on the dates stated.

By: /s/ Terry Fields By: /s/ Seymour Kazimirski
Terry Fields, Director Seymour Kazimirski, Director
November 8, 2007 November 8, 2007

By: /s/ Daniel Finch By: /s/ Hubert Meier
Daniel Finch, Director Hubert Meier, Director
Principal Executive Officer
November 8, 2007 November 8, 2007

By: /s/ Sudeep Bhargava
Sudeep Bhargava, COO
Interim Principal Financial Officer,
Controller, Director
November 8, 2007