UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

                             Amendment 1 to
                               FORM 10-K

[X]  15, ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2008
 OR

[ ]  15, TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from     to

                     Commission File Number 000-24965

                       ADVANCED ID CORPORATION
       (Exact name of small business issuer as specified in its charter)

         Nevada                                   46-0439668
   (State or other jurisdiction                               (IRS Employer
      of incorporation                                      Identification No.)
      or organization)

   4500 - 5th Street NE, #200, Bay 6
     Calgary, Alberta, Canada                      T2E 7C3
  (Address of principal executive office)                     (Postal Code)

(403) 264-6300
(Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act:  None
Securities registered pursuant to Section 12(g) of the Act:  Common
Stock, $.01 par value

Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. Yes [  ] No [x]

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange act
Yes [  ] No [x]

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act during the preceding 12 months (or such shorter period that the
registrant was required to file such reports), and (2) has been subject
to such filing requirements for at least the part 90 days.
Yes [x] No[  ]

Indicate by check mark if disclosure of delinquent filers in response to
Item 405 of Regulation S-K is not contained hereof, and will not be
contained, to will be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K.  [  ]


<PAGE>2

Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company.  See definitions of "large accelerated filer,"
"accelerated file" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.  (Check one):

Large accelerated filer [ ] Accelerated filer         [ ]
Non-accelerated filer   [ ] Smaller reporting company [x]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [x]

State the aggregate market value of the voting and non-voting common
equity held by non-affiliates computed by reference to the price at
which the common equity was last sold, or the average bid and asked
price of such common equity, as of the last business day of the
registrant's most recently completed second fiscal quarter. The market
value of the registrant's voting $.01 par value common stock held by
non-affiliates of the registrant was approximately $3,160,237.

Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date. The number
of shares outstanding of the registrant's only class of common stock, as
of April 5, 2009 was 73,710,839 shares of its $.01 par value common
stock.

No documents are incorporated into the text by reference.



<PAGE>3
                         Advanced ID Corporation
                               Amendment to
                                Form 10-K
             For the Fiscal Year Ended December 31, 2008
                          Table of Contents

Part I

ITEM 1.  BUSINESS                                                   4
ITEM 1A. RISK FACTORS                                              13
ITEM 1B. UNRESOLVED STAFF COMMENTS                                 13
ITEM 2.  PROPERTIES                                                13
ITEM 3.  LEGAL PROCEEDINGS                                         13
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS       13

                                  Part II

ITEM 5.  MARKET FOR COMPANY'S COMMON EQUITY AND RELATED
           STOCKHOLDER MATTERS                                     14
ITEM 6.  SELECTED FINANCIAL DATA                                   15
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
           CONDITION AND RESULTS OF OPERATIONS                     15
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
           RISK                                                    25
ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA               25
ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
           ACCOUNTING AND FINANCIAL DISCLOSURE                     55
ITEM 9A. CONTROLS AND PROCEDURES                                   55
ITEM 9B.  OTHER INFORMATION                                        57

                                    Part III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERANCE   58
ITEM 11.  EXECUTIVE COMPENSATION                                   60
ITEM 12.  SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
           MANAGEMENT AND RELATED STOCKHOLDERS MATTERS             61
ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
           DIRECTOR INDEPENDENCE                                   61
ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES                   63

                                     Part IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES                  65



<PAGE>4
                                     PART I

ITEM 1.   BUSINESS

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, The registrant's now wholly
owned AVID Canada and the original security holders of USA now hold
7,000,999 shares in the registrant.  No consulting fees or finder's fees
were paid in relation to the reverse merger transaction.

In 2008, we had three wholly-owned subsidiaries; Pneu-Logic Corporation
Limited located in U.K., AVID Canada Corporation, and Advanced ID Asia
Pacific Company Limited. 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.  PLCL is a reseller of RFID products
for the tire industry.  Due to limited sales in 2008, the administration
and management of PLCL were moved to the registrant's head office.
Advanced AP was set up in Hong Kong to allow us to enter the Chinese
market.   Advanced AP has one wholly-owned subsidiary, Advanced ID
(Shenzen) Co, Ltd.  Advanced Shenzen was set up to carry out our
operations in China.

On July 1, 2007, the registrant decided to divest our 60% interest in
AFG Asia Engineering Co. Ltd. of Chiang Mai, Thailand.

On July 1, 2007, the registrant acquired all operating assets of Pneu-
Logic Limited of England in order to align ourselves with addressing the
tire maintenance solution for fleet owners across the world.  Our
product line has been successful in the European market.

In July 2008, the registrant partnered with our largest distributor in
Brazil to establish Advanced ID, Brazil, Ltd.  As part of our expansion
into Brazil, we have acquired a 20% interest in AIDO BR. However, the
transaction is still awaiting government approvals in Brazil.  To date
no funds have been advanced for this project.

We develop, manufacture and sell, either directly or through
distributors, microchip identification technologies referred to as radio
frequency identification microchips and readers to the animal industry.



<PAGE>5

In the second quarter of 2004, we began commercializing these products
under the brand name, DataTRAC(tm).  We own the intellectual property
rights to the DataTRAC(tm) products.

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 over 600,000 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 2008. . We sold UHF identification tags to Goodyear Tire and
Rubber Company under several purchase orders continuing into 2008.
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 and SOKYMAT LF RFID products.  We are expanding our
sales effort for SOKYMAT chips into several countries, including China,
Taiwan, Thailand and Japan

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.  We have made good
progress in the supply chain market, especially in Asia.  Our marketing
efforts in the livestock area have been reduced because no country's
government has either mandated or approved for 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 and SOKYMAT and 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

<PAGE>6

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.

<PAGE>7

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 in 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  put further
development of the livestock application on hold.  However, interest is
increasing for a UHF RFID solution and the company is responding to that
interest.

   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 readers that we will
resell to our customers.

We have entered the UHF RFID reader product line with both hand held and
stand alone readers that have read ranges from several inches to 20
feet.  The readers are intended to capture a large market share through
aggressive pricing and full features.  Our readers will work in
virtually all supply chain applications.

We acquired Pneu-Logic, a UK based company focused on the tire
maintenance market.  The products are well respected in the industry
around the world and follow on products, now under development, will
capture a significant new market share, especially in the off the road
market.

      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, we were 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.  The 2006 and 2007 NASCAR
racing tires had this product attached to their racing tires.  The
Goodyear Tire and Rubber Company of Akron Ohio renewed the Purchase
Order for 2008 for its NASCAR 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.

<PAGE>8

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

   -   Expand 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

We are 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 through 2008.  However, the softening economy has stalled
and we expect no growth in 2009.

   -   The global RFID market was several billion dollars, US in 2008.
No appreciable growth is expected for 2009.


<PAGE>9

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 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.  The registrant 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.  There is no contractual
agreement or volume commitment in place with any of these parties.

We will sell our tire management product line both direct and through
3rd party resellers.  We will purchase tire tags from the Hana Group
from Ohio and Thailand.  The market is global.

We will sell our UHF RFID reader line both direct and though 3rd party
resellers.  The market is global.

We will sell our Pneu-Logic product line both direct and through 3rd
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

<PAGE>10

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 - We have received approval for our new ISO chip made
by SOKYMAT.  With the significant cost savings associated with this new
ISO standard chip, Advanced ID has reduced our prices in Canada and
other countries and sales are increasing.  We have developed a new LF
reader for companion animals that can be sold in several countries with
language specific readout capabilities.

Livestock Tagging - We have not further developed its livestock RFID
product line but have 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 - We have 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.  Management is of
the belief that, with our RFID tire management product line and the
Pneu-Logic tools, the market is blanketed better than with any other
company.

We plan to be in leadership position in this market and will focus its
energies and resources to obtain a leadership role as the market
matures and reaches high volume requirements.

UHF RFID Reader Development - We have 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.  We have designed 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.  We intend to be the company that ultimately offers a
$100 UHF RFID reader.  In 2007, we completed the development of new
reader PR 500 low price, low range but practical for inventory
management.  The new reader was sought and installed at a new book
store in Portugal, Spain.  In 2009, we will be marketing the new reader
into various industries.

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.  The remaining 15% market share is spread among two companies
which includes Microchips 4 Solutions and EIDAP.

<PAGE>10

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.

The current method of livestock identification predominantly utilizes
standard bar code visual tags. The barriers for adoption of current
RFID technology include its high cost and its limited read range.
Currently, we have a very small market share in this segment.  Our top
three competitors in the livestock market are as follows:

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.

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.

In the UHF RFID Market, there are several competitors who have readers
that compete with the company.  Intermec, Psion and Symbol all sell
readers but at very high prices.  In the tire RFID business, this is, at
present, no competition.

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.



<PAGE>12

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 two years have
included researching, designing and developing RFID tags and readers for
general supply chain applications including the tire management
industry.

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.



<PAGE>13

Employees

At the end of 2008, we had six full-time employees, six contract
employees and one part-time employee.  On July 1, 2005, we acquired a
60% interest in AFG Asia Engineering Ltd of Chiang Mai, Thailand.  The
Managing Director, Mr. Gottfried Auer and 40 % owner of AFG Engineering
Asia Ltd. has been providing us with all RFID engineering services
since 2003.  Mr. Auer has a Staff of nine hardware and software
engineers and support staff in the Chiang Mai office.  Subsequent to
the purchase of AFG Asia Engineering Ltd. the corporate name was
changed to reflect the new ownership structure and is now known as
Advanced ID Asia Engineering Co. Ltd.  We divested our interest in
Advanced ID Asia Engineering Co. Ltd in 2007 but continue to outsource
certain tasks to Advanced ID Asia Engineering Co. Ltd. We purchase RFID
readers and pet recovery microchips from Advanced ID Asia Engineering
Co.

On July 1, 2007, we purchased the assets of UK based Pneu-Logic Limited
and added three contract employees.  At the end of 2008, two of the
employees had left.  The managing director remains as a contract
employee.


ITEM 1A.  RISK FACTORS

Not required for smaller reporting companies.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

Not applicable.


ITEM 2.  PROPERTIES

We currently have an agreement to lease office premises until August 31,
2012.  We have committed to leasing approximately 1,920 rentable square
feet and are obligated to pay basic rent and all operating costs,
including utilities and taxes for a total cost of CDN$2,800 per month.
The real property utilized by us is in good condition, adequate for
present operations and adequately covered by insurance.  We also
maintain insurance coverage for commercial general liability including
blanket contractual liability, tenant's legal liability, non-owned
automobile and cross liability coverage.  The property is located at,
4500 5the Street NE, #200 Bay 6, Calgary, Alberta T2E 7C3 Canada.


ITEM 3.  LEGAL PROCEEDINGS.

The registrant is not involved in any legal proceedings at this date.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.



<PAGE>14
PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

    Item 5(a)

a)  Market Information.  The registrant began trading publicly on the
NASD Over the Counter Bulletin Board on October 17, 2002 under the
symbol "AIDO".

The following table sets forth the range of high and low bid quotations
for the registrant's common stock.  The quotations represent inter-
dealer prices without retail markup, markdown or commission, and may not
necessarily represent actual transactions.

                             Fiscal 2008               Fiscal 2007
                           High       Low            High       Low
                           ----       ---            ----       ---
First Quarter            $0.24        $0.13         $0.46      $0.22
Second Quarter           $0.25        $0.16         $0.49      $0.23
Third Quarter            $0.27        $0.11         $0.36      $0.22
Fourth Quarter           $0.14        $0.06         $0.28      $0.15

b)  Holders.  At July 31, 2009, there were approximately 1,900
shareholders of the registrant.

c)  Dividends.  Holders of the registrant's common stock are entitled to
receive such dividends as may be declared by its board of directors.  No
dividends on the registrant's common stock have ever been paid, and the
registrant does not anticipate that dividends will be paid on its common
stock in the foreseeable future.

d)  Securities authorized for issuance under equity compensation plans.
No securities are authorized for issuance by the registrant under equity
compensation plans.
<TABLE>
Plan Category             Number of Securities        Weighted Average Exercise      Number of Securities
                          Issued upon Exercise of     Price of Outstanding Options    Remaining Available
                          Outstanding Options,        Warrants and Rights             Future Issuance

                             <c>                         <c>                            <c>
Equity
Compensation
Plans Approved
by Security Holders                 n/a                         n/a                          n/a

Equity
Compensation
Plans Not Approved
by Security Holders           5,580,000                       $0.383                         n/a
                              ----------                       ------                      ------
Total                         5,580,000                                                      n/a
</TABLE>
e)  Performance graph.  Not applicable.



<PAGE>15

f)  Sale of unregistered securities.

During 2008, the registrant issued the following unregistered
securities:
   -  3,857,933 common shares for services rendered valued at $640,150,
   -  1,340,968 common shares for debt settlement valued at $141,373,
   -  841,667 common shares for deposits received in 2007 for $190,500
which included 325,000 common shares for $97,500 on the exercise of
warrants in 2007;
   -  12,631,395 common shares for cash proceeds of $1,276,503and for
subscriptions receivable of $99,430.

We also wrote off a note receivable that we had accepted in 2007 in
exchange for the issuance of 10,000 shares of common stock valued at
$2,000 to one investor due to an inability to pay.  These shares were
returned to treasury.

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


    Item 5(b)  Use of Proceeds.  Not applicable.

    Item 5(c)  Purchases of Equity Securities by the issuer and
affiliated purchasers.

None.


ITEM 6.  SELECTED FINANCIAL DATA

Not applicable to smaller reporting companies.


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The registrant signed an agreement with Corporate Insights in April 2008 with
the purpose of funding the purchase of Shenzhen DDCT Technology, Co.  At the
end of 2008, it was clear that funding could not be obtained and the merger
was not completed.  A replacing bilateral sales agreement is being developed
in 2009.  In June 2008, the registrant restructured its Pneu-Logic subsidiary
to save costs.  As the economy collapsed in the second half of 2008, sales of
Pneu-Logic products, as well as all of the registrant's products, declined
and further steps had to be taken to cut costs.  The administrative functions
of PLCL were moved to Advanced ID's head office in Calgary although sales
efforts continued in Europe through a bilateral sales agreement with Pneu-
Logic Limited.  The bilateral sales and marketing agreement had no impact on
revenues but gave Advanced ID exclusive access to the products of Pneu-Logic
Limited and gave PLL access to Advanced ID's products and readers and
favorable prices.  The agreement expired September 1, 2009.



<PAGE>16

Also in late 2008, the registrant contracted with La Jolla Cove, an
investment company to secure funding to complete the asset purchase of
Shenzhen DDCT.  That funding agreement was in place at the end of 2008.
However, due to the fact that the registrant will not purchase DDCT, the
parties are currently negotiating to alter that agreement.

The registrant is moving forward on several fronts.  These initiatives
were started in 2008 and continue into 2009.  Our largest fleet related
system integrator has committed to several hundred truck probes in
2009/2010.  Our primary software development partner for the truck probe
will release in April 2009, tire management software (middleware) that
will allow the probe and ultimately our RFID readers to communicate with
any embedded fleet management database. Our strategic partner in Brazil
is conducting major trials with Bandag and Bridgestone in the tire ID
business and just presented a countrywide solution for RFID and gas
vessels.  The registrant's low cost point of sale RFID reader is going
through final trials in Europe with product acceptance expected in the
2nd quarter of 2009.  At that point, this product will be presented to
retail outlets worldwide.  The pet recovery business (microchips)
outside of North America is becoming increasingly viable.  We have been
asked to deliver trial product for China, Taiwan, Japan and the US in
late 2008, early 2009.

The registrant is exploring ways to add complementary products without
extensive engineering and other product development.  Preliminary
discussions are being held with potential strategic partners to combine
products under one company umbrella, especially where our sales and
system integrator network provide additional sales professionals on the
street.

Results of Operations for the Fiscal Years Ended December 31, 2008
versus December 31, 2007.

The net loss of $2,516,131 for the year ended December 31, 2008 was
lower by $205,852 versus 2007 due to a lower impairment charge on
goodwill and lower research and development expenses.

Revenues

Revenues of $1,159,039 during the year ended December 31, 2008 increased
by $149,036 or 14.76% over last year.  The increase in revenues for the
year ended December 31, 2008 was a result of increased RFID tag sales,
stable chip sales to the companion animal sector, increased UHF RFID
readers and the addition of Pneu-Logic product sales.

On November 1, 2006, National Companion Animal Coalition's approval was
received for our ISO companion animal microchips.  Although FECAVA
microchips are being phased out for companion animals by the NCAC in
Canada, we continue to sell them for use in non-companion animals and to
veterinarians who continue to prefer FECAVA to ISO microchips.  We are
also actively promoting the ISO microchip throughout Canada and Asia as
well.



<PAGE>17

With the continued acceptance by owners to microchip their pets,
increased activity by the biological science community and government
agencies for the tracking of non-domestic species and increased
frequency by various municipal animal control agencies to set policy and
by-laws for the permanent tagging of pets in their respective
communities, we believe that the market will incrementally increase for
several years.  The actions by government and industry officials to
implement identification and trace back systems in the livestock
industry to minimize or eliminate the spread of diseases and ensure food
safety will continue to elevate our market presence and translate into
higher revenues for future reporting periods as well.

Cost of Revenues

Cost of revenues of $603,992 for the year ended December 31, 2008
increased by $78,865 or 15.02% over the previous year.  The increase in
cost of revenues is attributed to a higher volume of products sold
during 2008.

Research and Development

Research and development expenses of $37,940 for the year ended December
31, 2008 decreased by $227,847 or 85.73% over last year's comparable
period.  This decrease is due to the fact that the engineering
development of the new reader line was completed in 2007.

Selling, General and Administrative

For the year ended December 31, 2008, selling, general and
administrative expenses of $2,411,836 were higher by 4.13% over 2007.
This was in large part due to costs related the operations of Pneu Logic
Corporation Limited which commenced operation in July 2007.

Accretion and Finance Chares

In 2008, we recorded non-cash accretion and finance charges of $251,502
compared to $0.00 in 2007 as a result of the La Jolla Cove Investors
financing we received.

Interest Income and Expense

During the year ended December 31, 2008, interest expense was $39,581
while in 2007 we earned interest of $1,734.  The interest expense was
mostly due to charges related to the La Jolla Cove investment.

As at December 31, 2008, we had one loan payable for $60,000 outstanding
which accrues interest at 10% per annum, payable monthly.  In addition,
a convertible debenture that bears interest at 6% per annum is
outstanding for $1,000,000.  On the other hand, we had a promissory note
receivable for $725,000 that bears interest of 6.5% per annum.



<PAGE>18

Impairment of Assets

During the year ended December 31, 2008, we recognized impairment of the
assets of Pneu-Logic Corporation Limited based on sales results and the
necessity to move all the operations to our head office.  Property and
equipment was impaired for $13,913 and $0 for the year ended December
31, 2008 and 2007, respectively.  Customer list was impaired for $44,123
and $0 for the year ended December 31, 2008 and 2007, respectively and
took a further goodwill impairment charge of $122,468 compared to
$486,888 in fiscal 2007.

Liquidity and Capital Resources

As at December 31, 2008, we had cash and cash equivalents of $165,072.
During the year ended December 31, 2008, net cash used in operating
activities of $1,255,489 was higher by $516,806 or 69.96% as compared to
the year ended December 31, 2007.

During the year ended December 31, 2008, net cash provided by financing
activities of $1,723,458 was higher by $985,370 or 128.80% as compared
to the previous year ended December 31, 2007.  During 2008, cash has
been provided through, completed subscription agreements from investors
for $1,276,503 and proceeds from the sale of debentures of $275,000.

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 over the next two to three months and will not be sufficient
to fund our long term needs.  The basis that our cash balance is
expected to be sufficient to fund our current operations over the next
seven to ten months is based on our current net cash usage rate (cash
used offset by cash received) which we estimate to be $30,000 to $40,000
per month.  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

Going Concern

The registrant has incurred net losses for the years ended December 31,
2008 and 2007 of $2,516,131 and $2,721,983 respectively.  Because of
these losses, the registrant will require additional working capital to
develop its business operations.

The registrant intends to raise additional working capital through
private placements, public offerings and/or bank financing.  There are
no assurances that the registrant will be able to either

<PAGE>19

   -   achieve a level of revenues adequate to generate sufficient cash
flow from operations; or
   -  obtain additional financing through either private placements,
public offerings and/or bank financing necessary to support the
registrant's working capital requirements.

To the extent that funds generated from operations and any private
placements, public offerings and/or bank financing are insufficient, the
registrant 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 the registrant.  These
conditions raise substantial doubt about our ability to continue as a
going concern.

Off-Balance Sheet Arrangements

The registrant had no material off-balance sheet arrangements as of
December 31, 2008.
<TABLE>
Contractual Obligations
                                                        Payments due by period
                                              Less than 1     1-3         3-5   More than 5
     Contractual obligation         Total       year         years       years     years
     ----------------------         -----     -----------    -----       -----  -----------

                                  <c>           <c>        <c>         <c>       <c>
Long-term debt obligation        $1,000,000          -   $1,000,000         -        -
Capital Lease Obligations                 -          -            -         -        -
Operating Lease Obligations        $111,793    $33,668      $59,734   $18,391        -
Purchase Obligations                      -          -            -         -        -
Other Long-Term Liabilities
  Reflected on the Balance Sheet $1,219,249          -            -         -        -
</TABLE>
Critical Accounting Policies

   Basis of Consolidation
The consolidated financial statements include the accounts of the
registrant, its wholly-owned subsidiaries Avid Canada Corporation,
Advanced ID Asia Pacific Company Limited, Advanced ID (Shenzhen) Co.,
Ltd., and Pneu-Logic Corporation Limited.  Until July 2005, the
Company's accounts included the accounts of its wholly owned subsidiary
Universal Pet Care, Inc.  UPC was a dormant company and was
involuntarily dissolved in 2005.  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 registrant places its cash and temporary cash investments with
established financial institutions.  At various times during the year,
the registrant maintained cash balances in excess of insurable limits.

<PAGE>20

Management feels this risk is mitigated due to the longstanding
reputation of these banks.  No losses have been incurred by the
registrant related to this risk.

   Foreign Currency Translation
Since Avid Canada is located in Canada, the Canadian dollar has been
designated as the functional currency.  For PLCL the currency of trade
can be Euros, British sterling pounds and US Dollars, however the
British sterling pounds has been designated as the functional currency.
The reporting currency is the United States dollar.  All balance sheet
accounts have been translated at the current exchange rates as of
December 31, 2008 and 2007. Statements of operations items have been
translated at average currency exchange rates during the respective
years.  The resulting translation adjustment is recorded as a separate
component of comprehensive loss within stockholders' equity (deficit).

   Accumulated Other Comprehensive Income (Loss)
Total accumulated other comprehensive income (loss) consists of net
income (loss) and other changes in stockholders' equity (deficit) from
transactions and other events from currency translation gains and
losses. The components of and changes in accumulated other comprehensive
income as it relates to the currency translation losses are $9,591 and
$14,853 for the years ending December 31, 2008 and 2007, respectively.

   Revenue Recognition
The registrant recognizes revenue when persuasive evidence of an
arrangement exists, shipment has occurred, the sales price is fixed or
determinable and collectability is probable.

Product sales are recognized by the registrant generally at the time
product is shipped.  At the time revenue is recognized, registrant
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.

   Research and Development Costs
Research and development costs are expensed as incurred.

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

   Allowance for Doubtful Accounts
The registrant provides an allowance against accounts receivables for
estimated losses that may result from 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 registrant reviews customer's credit worthiness

<PAGE>21

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 registrant were to make
different judgments or utilize different estimates.  If the financial
condition of 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
estimated and actual doubtful accounts and anticipates that the
registrant will be able to continue to make reasonable estimates in the
future.  The registrant has recorded an allowance of $Nil and $16,852 as
of December 31, 2008 and 2007 respectively.

   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.  In 2008, impairment losses have been recorded
on the assets of PLCL. 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 registrant 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 is deemed to have an
indefinite life are not amortized but is subject to an annual impairment
test.

The registrant recognized an impairment loss of $122,469 (2007 -
$486,888) based on management's valuation.

   Intangible Assets
Intangible assets consist of a customer list purchased on the
acquisition of PL. This list was being amortized straight-line over
three years.  On December 31, 2008, the carrying value was completely
written off as a result of management's assessment of PLCL's business.



<PAGE>22

   Fair Value of Financial Instruments
The registrant's financial instruments consist of cash and cash
equivalents, receivables, payables 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.

   Advertising
The registrant charges costs of advertising to expense at the time the
costs are incurred.

   Shipping and Handling
The registrant includes shipping and handling costs in cost of goods
sold.

   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
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 2008 and 2007, potential dilutive
securities had an anti-dilutive effect and were not included in the
calculation of diluted net loss per common share.  Total shares
outstanding, assuming the exercise of outstanding options and warrants
for the years ended December 31, 2008 and 2007, were 107,304,855 and
69,257,891 respectively.

   Share-based Compensation
The registrant uses the fair value accounting method as provided under
SFAS No. 123(R) for stock options and other equity based compensation
issued to employees.  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 2008 and 2007 compensation expense: dividend yield 0% (2007 - 0%)
expected volatility of 113.4% (2007 - 97.9%), risk-free interest rate of
3.6% (2007 - 6.3%), and expected lives of 5 years (2007 - 5 years).

Segment Reporting
The registrant operates in one industry segment - radio frequency
identification microchip readers and tags. The registrant operates
primarily in one geographic area, being the North America.  PLCL sells
products in Europe which accounted for approximately 17% of total sales.

<PAGE>23

   FASB Statement No. 131, Disclosures about Segments of an Enterprise
and Related Information, establishes standards for reporting information
about operating segments. Operating segments are defined as components
of an enterprise about which separate financial information is available
that is evaluated regularly by the chief operating decision maker, or
decision making group, in deciding how to allocate resources and in
assessing performance.  The registrant's chief operating decision maker
is its Chief Executive Officer.  The registrant's Chief Executive
Officer reviews financial information presented on a consolidated basis
for purposes of allocating resources and evaluating financial
performance.  The registrant has one business activity and there are no
segment managers who are held accountable for operations, operating
results and plans for products or components below the consolidated unit
level.  Accordingly, the registrant reports as a single operating
segment.

   Reclassifications
Certain 2007 amounts have been reclassified to conform to 2008
presentation.

Recent Pronouncements

In February 2007, the FASB issued Statement 159, The Fair Value Option
for Financial Assets and Financial Liabilities, which provides an option
to report eligible financial assets and liabilities at fair value
effective January 1, 2008, with changes in fair value recognized in net
income. Upon adoption, the first re-measurement to fair value would be
reported as a cumulative-effect adjustment to the opening balance of
retained earnings.  The registrant has elected not to report eligible
assets and liabilities at their fair value.

In December 2007, the FASB issued Statement 141R, Business Combinations,
which requires recognition of the assets acquired, liabilities assumed
and non-controlling interest arising in a business combination at their
fair value as of the acquisition date. In addition, the costs of
acquisition must be recognized separately from the business combination.
This statement will be effective for our 2009 reporting and is not
expected to have a material impact on the registrant.

During the year, the registrant adopted Statement 157, Fair Value
Measurements, which defines fair value and establishes a framework for
measuring fair value and increases disclosure concerning fair value
measurements.  The adoption of Statement 157 did not have a material
impact on the registrant's results or financial position.

In March 2008, the FASB issued Statement 161, Disclosures about
Derivative Instruments and Hedging Activities, which requires enhanced
disclosure about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for, and
how derivative instruments and related hedged items affect an entity's
financial position, financial performance and cash flows.  This
statement will be effective for our 2009 reporting and is not expected
to have a material impact on the registrant.


<PAGE>24

In May 2008, the FASB issued Statement 162, The Hierarchy of Generally
Accepted Accounting Principles, which identifies the sources of
accounting principles and the framework for selecting the principles to
be used in the preparation of financial statements of entities that are
presented in conformity with US GAAP.  This statement will be effective
for the registrant following the US Securities and Exchange Commission's
approval of the Public Company Accounting Oversight Board's amendments
to existing guidance and its adoption is not expected to have a material
impact on the registrant.

On May 23, 2008, the Financial Accounting Standards Board ("FASB")
issued FASB statement No.163 "Accounting for Financial Guarantee
Insurance Contracts" ("FAS 163").  FAS 163 clarifies how FASB Statement
No.60 "Accounting and reporting by Insurance Enterprises" applies to
financial guarantee insurance contracts.  FAS 163 is focused on the
recognition and measurement of premium revenue and claims liabilities,
along with additional disclosure requirements for financial guarantee
contracts. The significant elements of the standard are as follows:

   1. Premium revenue will be recognized as a function of the amount of
insurance protection provided over the contract term.

   2. The standard requires that the present value of installment
premiums due pursuant to the terms of a financial guarantee insurance
contract be recognized at inception of the contract as unearned
premiums and premiums receivable, which is inconsistent with current
industry accounting practice.

   3. A claim liability will be established on a financial guarantee
contract when the probability weighted net present value of an expected
claim loss is estimated to exceed the related unearned premium revenue.
Provision of unallocated reserves are not permitted under the standard.

   4. Additional disclosures on financial guarantee contracts, the
accounting and risk management activities used to evaluate credit
deterioration in the Company's insured obligations and surveillance
lists.

FAS 163 is effective for fiscal years beginning after December 15,
2008, and all interim periods within those fiscal years, with the
exception of certain risk management disclosures which are effective
for the first period beginning after issuance of FAS 163 (i.e. the
Company's September 30, 2008 financial statements). Early application
is not permitted. The standard does not apply to credit default swaps.
Applying FAS 163 will not have any impact on the financial results of
the registrant or on the registrant's financial position.

In December 2008, the FASB issued Staff Position FSP FAS 132R-1,
Employers' Disclosures about Post-Retirement Benefit Plans Assets, which
requires additional disclosures explaining how investment allocation
decisions are made, the major categories of plan assets, inputs and
valuation techniques used to measure fair value of plan assets and
significant concentrations of risk within the plan assets.  This Staff
Position will not have any impact on the registrant's results or
financial position.

<PAGE>25

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                     Advanced ID Corporation
                 Index to the Financial Statements


Reports of Independent Registered Public Accounting Firms      26
Financial Statements of Advanced ID Corporation:
  Consolidated Balance Sheets as of December 31, 2008
    and 2007                                                   28
  Consolidated Statements of Operations For the Years
    Ended December 31, 2008 and 2007                           30
  Consolidated Statements of Stockholders' Equity
   (Deficit) For the Years Ended December 31, 2008 and 2007    32
  Consolidated Statements of Cash Flows For the Years Ended
    December 31, 2008 and 2007                                 33
  Notes to Consolidated Financial Statements                   35



<PAGE>26

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of
Advanced ID Corporation
Calgary, Canada

We have audited the accompanying balance sheet of Advanced ID
Corporation and subsidiaries as of December 31, 2008 and the related
statements of operations, stockholders' equity (deficit), and cash flows
for the year then ended.  Advanced ID Corporation's management is
responsible for these financial statements.  Our responsibility is to
express an opinion on these financial statements based on our audits.
The consolidated financial statements of Advanced ID Corporation and
subsidiaries for the year ended December 31, 2007 were audited by other
auditors whose report dated March 26, 2008 expressed an unqualified
opinion on those statements.

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 financial position of Advanced ID
Corporation and subsidiaries as of June 30, 2008 and the results of its
operations and its cash flows for the year then ended in conformity with
accounting principles generally accepted in the United States of
America.

The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern, as discussed
in Note 3 to the consolidated financial statements.  Management's plans
regarding those matters are also described in the said note.  The
consolidated financial statements do not include any adjustment that
might result from the outcome of this uncertainty.

/s/AGCA, Inc.
Arcadia, California
March 31, 2009



<PAGE>27

Report of Independent Registered Public Accounting Firm

To the Board of Directors of
Advanced ID Corporation
Calgary, Alberta, Canada


We have audited the accompanying consolidated balance sheet of Advanced
ID Corporation (the "Company") as of December 31, 2007, and the related
consolidated statements of operations, stockholders' equity (deficit),
and cash flows for the year ended December 31, 2007. 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 audit.

We conducted our audit 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 audit 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, 2007 and the results of its
operations and its cash flows for the year ended December 31, 2007 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 2008 raise substantial doubt about its ability to
continue as a going concern. The 2007 consolidated financial statements
do not include any adjustments that might result from the outcome of
this uncertainty.


/s/LBB & Associates Ltd., LLP
-----------------------------
LBB & Associates Ltd., LLP

Houston, Texas
March 26, 2008

<PAGE>28
               ADVANCED ID CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED BALANCE SHEETS
                 AS OF DECEMBER 31, 2008 and 2007

                                  ASSETS

                                                2008            2007
                                                ----            ----
CURRENT ASSETS:
  Cash                                       $ 165,072      $  61,557
  Trade accounts receivable, net               135,156        111,073
  Accounts receivable - related parties        346,974          2,870
  Inventory                                     45,703         95,914
  Prepaid expenses                              13,859          2,018
                                            ----------      ---------
      Total current assets                     706,764        273,432
   Property and equipment, net                  51,334         49,986
   Goodwill                                          -        122,468
   Promissory notes receivable                 725,000              -
   Customer list, net                                -         62,500
                                            ----------     ----------
      Total other assets                       776,334        234,954
                                            ----------     ----------
      Total assets                          $1,483,098     $  508,386
                                            ==========     ==========
               LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
  Accounts payable                          $  315,666     $  300,636
  Accounts payable - related parties           138,444         66,912
  Loan payable - related party                 106,761         59,806
  Deposit on shares to be issued                     -        192,500
  Redemption put liability                      32,253              -
  Accrued liabilities                           13,491         57,343
  Contingent consideration on acquisition
    of Pneu-Logic                               70,000        240,000
                                            ----------     ----------
      Total current liabilities                676,615        917,197
  Debentures payable                         1,219,249              -
                                            ----------     ----------
      Total liabilities                      1,895,864        917,197
                                            ----------     ----------
STOCKHOLDERS' DEFICIT:
  Series A preferred stock, $0.01 par;
    500,000 shares authorized; none issued
    and outstanding                                  -              -
  Common stock, $0.01 par; 100,000,000 shares
    authorized; 75,990,271 shares and
    57,318,308 shares issued and outstanding
    at December 31, 2008 and 2007,
    respectively                               759,904        573,184
  Additional paid-in capital                10,802,481      8,180,170
  Subscription receivable                      (99,430)        (2,000)
  Accumulated deficit                      (11,867,754)    (9,161,789)
  Accumulated other comprehensive
    Income (loss)                               (7,967)         1,624
                                            ----------     ----------

<PAGE>29

      Total stockholders' deficit             (412,766)      (408,811)
                                            ----------     ----------
      Total liabilities and stockholders'
        deficit                             $1,483,098     $  508,386
                                            ==========     ==========

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



<PAGE>30

               ADVANCED ID CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
            FOR THE YEARS ENDED DECEMBER 31, 2008 and 2007

                                               2008          2007
                                            ----------    ----------
Revenues                                   $1,159,039     $1,010,003
Cost of revenues                              603,992        525,127
                                          -----------    -----------
  Gross profit                                555,047        484,876

Research and development expense               37,940        265,787
Selling, general and administrative expense 2,411,836      2,316,173
Bad debt provision on advanced to DDCT        149,815              -
Impairment of property and equipment           13,913              -
Impairment of customer list                    44,123              -
Impairment of goodwill                        122,468        486,888
                                          -----------    -----------
  Operating loss                           (2,225,048)    (2,583,972)
  Accretion and finance charges on
    debenture                                (251,502)             -
  Interest income (expense)                   (39,581)         1,734
                                          -----------    -----------
Loss from continuing operations            (2,516,131)    (2,582,238)
Loss from discontinued operations                   -       (139,745)
                                          -----------    -----------
Net Loss before income taxes               (2,516,131)    (2,721,983)
Provision for income taxes                          -              -
                                          -----------    -----------
Net Loss                                  $(2,516,131)   $(2,721,983)

Warrant holder inducement dividend           (189,834)      (155,647)
                                          -----------    -----------
Net loss applicable to common
Shareholders                              $(2,705,965)   $(2,877,630)
                                          ===========    ===========
Net loss per share:
  Basic and diluted loss
     Continuing operations                     $(0.04)        $(0.05)
                                               ======         ======
     Discontinued operations                   $(0.00)        $(0.00)
                                               ======         ======
  Basic and diluted weighted average
    Shares outstanding                     65,680,317     54,951,487
                                           ==========     ==========

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



<PAGE>31
               ADVANCED ID CORPORATION AND SUBSIDIARIES
        CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
           FOR THE YEARS ENDED DECEMBER 31, 2008 and 2007
                       (CONTINUED ON NEXT PAGE)
<TABLE>
<CAPTION>
                                                              Additional
                                            Common Stock       Paid -in    Subscription
                                          Shares    Amounts     Capital      Received
                                          -----------------    ----------   -----------

                                          <c>       <c>         <c>            <c>
BALANCE, December 31, 2006               52,219,914  $522,199  $6,000,805     $(22,000)
Comprehensive loss:
  Net loss
  Foreign currency translation adjustments
      Total comprehensive loss
Stock issued for services                 1,151,372    11,514     271,926            -
Stock issued for cash                       965,000     9,650     244,350       20,000
Stock issued on acquisition of Pneu-Logic 1,000,000    10,000     308,810            -
Stock issued on settlement of debt        1,170,355    11,704     350,237            -
Exercise of options and warrants            811,667     8,117     235,383            -
Stock options issued for services                 -         -     613,012            -
Warrant holder inducement dividend                -         -     155,647            -
                                         ----------  --------  ----------     --------
BALANCE, December 31, 2007               57,318,308  $573,184  $8,180,170     $ (2,000)
                                         ==========  ========  ==========     ========
Comprehensive loss:
  Net loss
  Foreign currency translation adjustments
      Total comprehensive loss
Stock issued for services                 3,857,933    38,580     601,570            -
Stock issued for cash                    12,631,395   126,314   1,247,619      (97,430)
Stock issued on settlement of debt        1,340,968    13,409     127,964            -
Stock issued for deposits received
  in 2007                                   841,667     8,417     182,083            -
Stock options issued for services                 -         -     273,241            -
Warrant holder inducement dividend                -         -     189,834            -
                                         ----------  --------  ----------     --------
BALANCE, December 31, 2008               75,990,271  $759,904 $10,802,481     $(99,430)
                                         ==========  ========  ==========     ========
</TABLE>



<PAGE>32
                 ADVANCED ID CORPORATION AND SUBSIDIARIES
          CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
               FOR THE YEARS ENDED DECEMBER 31, 2008 and 2007
<TABLE>
                                         Accumulated
                                            Other                         Total
                                        Comprehensive    Accumulated   Stockholders'
                                         Income (Loss)     Deficit    Equity (Deficit)
                                        -------------    -----------  -------------

                                          <c>             <c>           <c>
BALANCE, December 31, 2006               $ 16,477       $(6,284,159)  $  233,322
Comprehensive loss:
  Net loss                                      -        (2,721,983)  (2,721,983)
  Foreign currency translation
    adjustments                           (14,853)                -      (14,853)
                                                                      ----------
      Total comprehensive loss                                        (2,736,836)
                                                                      ----------
Stock issued for services                       -                 -      283,440
Stock issued for cash                           -                 -      274,000
Stock issued on acquisition of Pneu-Logic       -                 -      318,810
Stock issued on settlement of debt              -                 -      361,941
Exercise of options and warrants                -                 -      243,500
Stock options issued for services               -                 -      613,012
Warrant holder inducement dividend              -          (155,647)           -
                                          -------        ----------   ----------
BALANCE, December 31, 2007                $ 1,624       $(9,161,789)  $ (408,811)
                                          =======       ===========   ==========
  Net loss                                      -        (2,516,131)  (2,516,131)
  Foreign currency translation
    adjustments                            (9,591)                -       (9,591)
                                                                       ---------
      Total comprehensive loss                                        (2,525,722)
                                                                       ---------
Stock issued for services                       -                 -      640,150
Stock issued for cash                           -                 -    1,276,503
Stock issued on settlement of debt              -                 -      141,373
Stock issued for deposits received in 2007      -                 -      190,500
Stock options issued for services               -                 -      273,241
Warrant holder inducement dividend              -          (189,834)           -
                                          -------       -----------    ---------
BALANCE, December 31, 2008                $(7,967)     $(11,867,754)  $ (412,766)
                                          =======      ============    =========
</TABLE>

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




<PAGE>33
                  ADVANCED ID CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
(Continued on Next Page)

                                                 2008          2007
                                            ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                   $(2,516,131)  $(2,721,983)
  Net income (loss) from discontinued
    operations                                         -      (139,745)
                                              ----------    ----------
  Net loss from continuing operations         (2,516,131)   (2,582,238)
  Adjustments to reconcile net loss to
    net cash used in operating activities:
    Depreciation and amortization                 59,151       102,960
    Stock issued for services                    640,150       283,440
    Stock options issued for services            273,241       613,012
    Stock issued for interest expense             16,373             -
    Accretion and finance charge on debenture    251,502             -
    Bad debt provision on investment to DDCT     149,815             -
    Goodwill impairment                          122,468       486,888
    Impairment of customer list                   44,123             -
    Impairment of property and equipment          13,913             -
      Change in assets and liabilities:
        Accounts receivable                     (381,456)       73,154
        Inventory                                 48,639       (72,642)
        Prepaid expenses                         (11,363)       19,289
        Accounts payable                          10,001       166,259
        Accounts payable - related parties        72,722       175,539
        Accrued liabilities                      (48,637)       (6,091)
                                              ----------    ----------
Net cash used in continuing operating
  activities                                  (1,255,489)     (740,430)
Net cash used in discontinued operating
  activities                                           -         1,747
                                              ----------    ----------
CASH FLOWS USED IN OPERATING ACTIVITIES       (1,255,489)     (738,683)
                                              ----------    ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Advance on investment to DDCT                 (149,815)            -
  Payment on acquisition of assets of
    Pneu-Logic Ltd.                             (170,000)     (100,000)
  Purchase of property and equipment             (56,035)      (16,254)
                                              ----------    ----------
Net cash used in investing activities           (375,850)     (116,254)
Net cash used in discontinued investing
  activities                                           -       (16,193)
                                              ----------    ----------
CASH FLOWS USED IN INVESTING ACTIVITIES         (375,850)     (132,447)
                                              ----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from sale of stock                  1,276,503       274,000
  Proceeds from borrowings                       125,000             -
  Proceeds from the exercise of stock
    options and warrants                               -       213,500

<PAGE>34

               ADVANCED ID CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
      FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (Continued)

                                                 2008          2007
                                            ------------   ------------
  Payment on Pneu-Logic Ltd. debt issued               -       (60,000)
  Proceeds from loan payable - related party      46,955        60,000
  Proceeds from deposits on shares to be issued        -       192,500
  Proceeds from the issuance of debenture        275,000             -
                                              ----------    ----------
Net cash provided from continuing financing
  activities                                   1,723,458       680,000
Net cash provided from discontinued financing
  activities                                           -        (1,912)
                                              ----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES           1,723,458       678,088
                                              ----------    ----------
EFFECT OF EXCHANGE RATE CHANGES                   11,396       (12,188)
                                              ----------    ----------
NET INCREASE (DECREASE) IN CASH                  103,515      (205,230)
CASH, beginning of year                           61,557       266,787
                                              ----------    ----------
CASH, end of year                             $  165,072    $   61,557
                                              ==========    ==========

CASH PAID FOR:
  Interest                                      $ 38,402      $      -
  Taxes                                         $      -      $      -

NON CASH INVESTING AND FINANCING TRANSACTIONS:
  Common stock issued for acquisition of
    Pneu-Logic Ltd.                             $      -      $318,810
  Common stock issued for settlement of debt    $141,373      $361,941
  Common stock issued for deposits received
    in 2007                                     $190,500      $      -
  Debt Issued for acquisition of Pneu-Logic     $      -      $300,000
  Common stock issued for subscription
    receivable                                  $ 99,430      $      -
  Subscription receivable issued for exercise
    of warrants                                 $      -      $ 30,000
Warrant holder inducement dividend              $189,834      $155,647

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



<PAGE>35

             ADVANCED ID CORPORATION AND SUBSIDIARIES
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

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.

During the past several years Advanced ID has also been involved in
research & development of RFID readers and RFID tags for various market
segments and will continue to do.

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
("AVID Canada"), Advanced ID Asia Pacific Company Limited, Advanced ID
(Shenzhen) Co., Ltd., and Pneu-Logic Corporation Limited ("PLCL").
Until July 2005, the Company's accounts included the accounts of its
wholly owned subsidiary Universal Pet Care, Inc. ("UPC").  UPC was a
dormant company and was involuntarily dissolved in 2005.   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.



<PAGE>36

Foreign Currency Translation

Since Avid Canada is located in Canada, the Canadian dollar has been
designated as the functional currency.  For PLCL the currency of trade
can be Euros, British sterling pounds and US Dollars, however the
British sterling pounds has been designated as the functional currency.
The reporting currency is the United States dollar.  All balance sheet
accounts have been translated at the current exchange rates as of
December 31, 2008 and 2007. Statements of operations items have been
translated at average currency exchange rates during the respective
years.  The resulting translation adjustment is recorded as a separate
component of comprehensive loss within stockholders' equity (deficit).

Accumulated Other Comprehensive Income (Loss)

Total accumulated other comprehensive income (loss) consists of net
income (loss) and other changes in stockholders' equity (deficit) from
transactions and other events from currency translation gains and
losses. The components of and changes in accumulated other comprehensive
income as it relates to the currency translation losses are $9,591 and
$14,853 for the years ending December 31, 2008 and 2007, respectively.

Revenue Recognition

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

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 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

<PAGE>37

uncollectibility, the Company reviews 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
judgments or utilize different estimates.  If the financial condition of
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 estimated and
actual doubtful accounts and anticipates that the Company will be able
to continue to make reasonable estimates in the future.  The Company has
recorded an allowance of $Nil and $16,852 as of December 31, 2008 and
2007 respectively.

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.  In 2008 impairment losses have been recorded
on the assets of PLCL. 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 is deemed to have an
indefinite life are not amortized but is subject to an annual impairment
test.

The Company recognized an impairment loss of $122,469 (2007 - $486,888)
based on management's valuation.



<PAGE>38

Intangible Assets

Intangible assets consist of a customer list purchased on the
acquisition of PL. This list was being amortized straight-line over
three years.  On December 31, 2008 the carrying value was completely
written off as a result of management's assessment of PLCL's business.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash
equivalents, receivables, payables 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.

Advertising

The Company charges costs of advertising to expense at the time the
costs are incurred.

Shipping and Handling

The Company includes shipping and handling costs in cost of goods sold.

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

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 2008 and 2007, potential dilutive
securities had an anti-dilutive effect and were not included in the
calculation of diluted net loss per common share.  Total shares
outstanding, assuming the exercise of outstanding options and warrants
for the years ended December 31, 2008 and 2007, were 107,304,855 and
69,257,891 respectively.

Share-based Compensation

The Company uses the fair value accounting method as provided under SFAS
No. 123(R) for stock options and other equity based compensation issued
to employees.  The fair value of each option granted is estimated on the

<PAGE>39

date of grant using the Black-Scholes option-pricing model.   The
following weighted average assumptions were used in the calculation of
the 2008 and 2007 compensation expense: dividend yield 0% (2007 - 0%)
expected volatility of 113.4% (2007 - 97.9%), risk-free interest rate of
3.6% (2007 - 6.3%), and expected lives of 5 years (2007 - 5 years).

Segment Reporting

The Company operates in one industry segment - radio frequency
identification microchip readers and tags. The Company operates
primarily in one geographic area, being the North America.  PLCL sells
products in Europe which accounted for approximately 17% of total sales.

FASB Statement No. 131, Disclosures about Segments of an Enterprise and
Related Information, establishes standards for reporting information
about operating segments. Operating segments are defined as components
of an enterprise about which separate financial information is available
that is evaluated regularly by the chief operating decision maker, or
decision making group, in deciding how to allocate resources and in
assessing performance.  The Company's chief operating decision maker is
its Chief Executive Officer.  The Company's Chief Executive Officer
reviews financial information presented on a consolidated basis for
purposes of allocating resources and evaluating financial performance.
The Company has one business activity and there are no segment managers
who are held accountable for operations, operating results and plans for
products or components below the consolidated unit level.  Accordingly,
the Company reports as a single operating segment.

Reclassifications

Certain 2007 amounts have been reclassified to conform to 2008
presentation.

Recent Accounting Pronouncements

In February 2007, the FASB issued Statement 159, The Fair Value Option
for Financial Assets and Financial Liabilities, which provides an option
to report eligible financial assets and liabilities at fair value
effective January 1, 2008, with changes in fair value recognized in net
income. Upon adoption, the first re-measurement to fair value would be
reported as a cumulative-effect adjustment to the opening balance of
retained earnings. The Company has elected not to report eligible assets
and liabilities at their fair value.

In December 2007, the FASB issued Statement 141R, Business Combinations,
which requires recognition of the assets acquired, liabilities assumed
and non-controlling interest arising in a business combination at their
fair value as of the acquisition date. In addition, the costs of
acquisition must be recognized separately from the business combination.
This statement will be effective for the Company's 2009 reporting and is
not expected to have a material impact on the Company.



<PAGE>40

During the year, the Company adopted Statement 157, Fair Value
Measurements, which defines fair value and establishes a framework for
measuring fair value and increases disclosure concerning fair value
measurements. The adoption of Statement 157 did not have a material
impact on the Company's results or financial position.

In March 2008, the FASB issued Statement 161, Disclosures about
Derivative Instruments and Hedging Activities, which requires enhanced
disclosure about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for, and
how derivative instruments and related hedged items affect an entity's
financial position, financial performance and cash flows. This statement
will be effective for the Company's 2009 reporting and is not expected
to have a material impact on the Company

In May 2008, the FASB issued Statement 162, The Hierarchy of Generally
Accepted Accounting Principles, which identifies the sources of
accounting principles and the framework for selecting the principles to
be used in the preparation of financial statements of entities that are
presented in conformity with US GAAP.  This statement will be effective
for the Company following the US Securities and Exchange Commission's
approval of the Public Company Accounting Oversight Board's amendments
to existing guidance and its adoption is not expected to have a material
impact on the Company.

On May 23, 2008, the Financial Accounting Standards Board ("FASB")
issued FASB statement No.163 "Accounting for Financial Guarantee
Insurance Contracts" ("FAS 163").  FAS 163 clarifies how FASB Statement
No.60 "Accounting and reporting by Insurance Enterprises" applies to
financial guarantee insurance contracts.  FAS 163 is focused on the
recognition and measurement of premium revenue and claims liabilities,
along with additional disclosure requirements for financial guarantee
contracts. The significant elements of the standard are as follows:

   1. Premium revenue will be recognized as a function of the amount of
insurance protection provided over the contract term.

   2. The standard requires that the present value of installment
premiums due pursuant to the terms of a financial guarantee insurance
contract be recognized at inception of the contract as unearned premiums
and premiums receivable, which is inconsistent with current industry
accounting practice.

   3. A claim liability will be established on a financial guarantee
contract when the probability weighted net present value of an expected
claim loss is estimated to exceed the related unearned premium revenue.
Provision of unallocated reserves are not permitted under the standard.

   4. Additional disclosures on financial guarantee contracts, the
accounting and risk management activities used to evaluate credit
deterioration in the Company's insured obligations and surveillance
lists.



<PAGE>41

FAS 163 is effective for fiscal years beginning after December 15, 2008,
and all interim periods within those fiscal years, with the exception of
certain risk management disclosures which are effective for the first
period beginning after issuance of FAS 163 (i.e. the Company's September
30, 2008 financial statements).  Early application is not permitted. The
standard does not apply to credit default swaps.  Applying FAS 163 will
not have any impact on the financial results of the Company or on the
Company's financial position.

In December 2008, the FASB issued Staff Position FSP FAS 132R-1,
Employers' Disclosures about Post-Retirement Benefit Plans Assets, which
requires additional disclosures explaining how investment allocation
decisions are made, the major categories of plan assets, inputs and
valuation techniques used to measure fair value of plan assets and
significant concentrations of risk within the plan assets.  This Staff
Position will not have any impact on the Company's results or financial
position.

NOTE 3 - FINANCIAL CONDITION AND GOING CONCERN

Advanced ID has incurred net losses for the years ended December 31,
2008 and 2007 of $2,516,131 and $2,721,983 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 ASSETS OF PNEU-LOGIC LTD.

No acquisitions were undertaken during the year ended December 31, 2008.
The following table summarizes significant acquisitions completed during
the year ended December 31, 2007:



<PAGE>42

                               Purchase               Amortizable
                                Price     Goodwill    Intangibles
                               --------   --------    -----------
Pneu-Logic Ltd.               $ 718,810   $ 608,956    $ 75,400

   PURCHASE PRICE

On July 1, 2007, Advanced ID Corporation (the "Company") acquired
substantially all of the assets of Pneu-Logic Ltd. ("PLL").  PLL was
engaged in the business of fleet tire management. At the time of the
transaction, there were no material relationships between the seller and
the Company or any of its affiliates, or any director or officer of the
Company, or any associate of any such officer or director. The aggregate
purchase of $718,810 included $400,000 cash and 1,000,000 restricted
shares of Advanced ID Corporation valued at $318,810.  The cash
component consists of $100,000 paid on the date of closing and
contingent consideration of ten $30,000 monthly installments commencing
October 1, 2007 based on meeting certain revenue targets.  For the years
ended December 31, 2008 and 2007, $170,000 and $160,000 were paid off.
The value of 1,000,000 common shares issued was determined based on the
market price for a reasonable period of time before and after the date
that the terms of the acquisition were agreed to and announced. .

After the acquisition of the assets of PLL, PLL still existed and the
new entity with assets was incorporated as Pneu-Logic Corporation
Limited ("PLCL")

The purchase price allocation is as follows:

Current assets, net             $ 116,022
Property and equipment              5,654
Goodwill                          608,956
Customer list                      75,400
Bank overdraft                    (87,222)
                                ---------
Total adjusted purchase price   $ 718,810
                                =========

The amount allocated to identifiable intangible assets was determined by
the company's management.  Other intangibles assets are being amortized
over their useful life in accordance with the guidance contained in the
Financial Accounting Standards Board ("FASB") Statement of Financial
Accounting Standard No. 142 ("SFAS 142") "Goodwill and Other Intangible
Assets".

Goodwill                                   $ 608,956
Customer list                                 75,400
                                           ---------
Total identifiable intangible assets       $ 684,356
                                           =========

Amortization expenses for 2008 was $24,835 (2007 - $13,908)

The results of operations for PLCL have been included in the Company's
consolidated statements of operations since the completion of the
acquisitions during the year ended December 31, 2007.  The following

<PAGE>43

unaudited pro forma financial information presents the combined results
of the Company and the 2007 acquisitions as if the acquisitions had
occurred at the beginning of 2007:

                                                  Unaudited pro forma
                                                  -------------------
                                                        Year Ended
                                                    December 31, 2007
                                                      ------------
Net Revenue                                             $ 1,243,328
Net income (loss)                                       $(2,555,005)
Net income (loss) applicable to common shareholder      $(2,850,397)
Net income (loss) per share-basic                         $  (0.05)
Net income (loss) per share-diluted                       $  (0.05)

The above unaudited pro forma financial information includes adjustments
for depreciation and amortization of identifiable intangible assets.

During the year ended December 31, 2008 due to economic and other
factors, management decided to impair the carrying value of the property
and equipment, customer list and goodwill of PLCL.  The Company
continues to operate however the office functions have been centralized
to the Company's head office in order to reduce ongoing administrative
and other expenses.

At the same time the Company agreed to sell PLCL products to Pneu-Logic
Limited ("PLL") which is an entity controlled by George Yeomans, a
director of PLCL.  The agreement requires the Company to purchase
products from RBC Electronics (entity owned by George Yeomans) and then
to sell the products to PLL.  PLL will in turn sell the products to its
own channels in Europe. As a result, Advanced ID concluded that sales to
PLL should be recorded on a net revenue basis.  Reasons for net revenue
recognition are that the Company never handles the goods sold by PLL,
has no risk of inventory loss, and never has title to the goods.

NOTE 5 - DISCONTINUED OPERATIONS

Effective July 1, 2007, the Company disposed of its sixty percent owned
subsidiary, Advanced ID Asia Engineering Co. Ltd., to focus its
operations and reduce the cash requirements needed to continue this
operation.  The business identified as a divestiture has been classified
as discontinued operations in the accompanying financial statements.

The following table summarizes the disposition:

Current assets                         $157,606
Property and equipment                   53,191
Goodwill                                 55,486
Current Liabilities                     (67,067)
Non Controlling Interest                (47,022)
                                        -------
 Net assets acquired                   $152,194
   Less: Consideration received        $      -
                                       --------

<PAGE>44

Loss on disposition                     152,194
Company's share of 2007 Earnings         12,449
                                       --------
Net loss on disposition                $139,745
                                       ========

NOTE 6 - PROPERTY AND EQUIPMENT

Property and equipment consists of the following:
                                      Estimated
                                        Lives       2008        2007
                                      ---------     ----        ----
  Equipment and furniture                5 yrs  $  38,212   $  28,856
  Leasehold improvements                 5 yrs     11,689           -
  Computer hardware                      3 yrs     65,613      43,982
  Computer software                      2 yrs    194,310     180,951
                                                ---------   ---------
    Total assets                                  309,824     253,789
  Less accumulated depreciation and
    write downs                                  (258,490)   (203,803)
                                                ---------   ---------
    Net book value                              $  51,334   $  49,986
                                                =========   =========

Depreciation expense for 2008 was $40,773 (2007 - $90,460).

NOTE 7 - 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 CDN$3,952,000 at December 31, 2008,
and will expire in various years through 2028. Advanced ID recorded a
decrease in the valuation allowance of $885,000 for the year ended
December 31, 2008 and an increase in the valuation allowance of $700,000
for the year ended December 31, 2007.  The difference between the
statutory rate and the effective rate for the years ended December 31,
2008 and 2007 relates to the change in valuation allowance.

Deferred income taxes consist of the following at December 31, 2008 and
2007:

                                             2008         2007
                                             ----         -----
Short-term:
  Deferred tax assets                     $1,115,000    $2,000,000
  Valuation allowance                     (1,115,000)   (2,000,000)
                                          ----------    ----------
                                          $        -    $        -
                                          ==========    ==========



<PAGE>45

NOTE 8 - COMMON STOCK

During 2008, Advanced ID issued a total of 18,671,963 shares of common
stock, 12,631,395 were issued for proceeds of $1,276,503 and
subscriptions receivable of $99,430; 841,667 shares were issued for
deposits received in 2007 for $190,500; 1,340,968 were issued for the
settlement of debt valued at $141,373, and 3,857,933 shares of common
stock were issued for services rendered valued at $640,150.

During 2008, Advanced ID also wrote off a receivable that the Company
had accepted in 2007 in exchange for the issuance of 10,000 shares of
common stock valued at $2,000 to one investor due to an inability to
pay. These shares were returned and cancelled.

During 2007, Advanced ID issued a total of 5,098,394 shares of common
stock; 965,000 shares of common stock were issued for cash proceeds of
$254,000 and collected $20,000 of a subscription receivable from the
prior year, 811,667 shares of common stock were issued on the exercise
of warrants for $213,500 of cash and a note receivable of $30,000,
1,170,355 shares of common stock were issued as settlement of debt
valued at $361,941, 1,000,000 shares of common stock were issued on the
acquisition of PL valued at $318,810, and 1,151,372 shares of common
stock were issued for services rendered valued at $283,440.

During 2007, Advanced ID also wrote off a note receivable that had been
accepted in 2007 in exchange for the exercise of 100,000 common stock
warrants valued at $30,000 to one investor due to his inability to pay.

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.

NOTE 9 - STOCK OPTIONS AND WARRANTS

Options:
In May 2007, the Board approved the vesting of the President's remaining
1,000,000 options that were originally granted as part of his initial
employment contract.  Compensation expense for the fair value of these
options of $337,018 has been included as part of the general and
administrative expenses recorded during 2007.

In May 2007, the Board approved an option plan to issue each board
member 200,000 options at $0.40 per common share for a term of five
years. Compensation expense for the fair value of these options of
$245,328 has been included as part of the general and administrative
expenses recorded during 2007.

In May 2007, the Board authorized options to purchase 100,000 common
shares with a term of 5 years to an employee and a consultant.  These
common shares were registered under Form S-8 with the Securities and



<PAGE>46

Exchange Commission.  Compensation expense for the fair value of these
options of $30,666 has been included as part of general and
administrative expenses recorded during 2007.

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 was filed with the SEC
effective September 30, 2007.

In April 2008 the Board approved the issuance of 2,000,000 options to
various officers and directors of the Company.  The options are
exercisable for a period of 5 years at an exercise price of $0.30 per
share.  Compensation expense for the fair value of these options of
$273,241 has been included as part of the general and administrative
expenses recorded during 2008.  On November 9, 2008 officers and
directors who were issued the options agreed to have them canceled.

The following table summarizes stock option activity:

  Outstanding, December 31, 2006                3,680,000
  Granted                                       1,900,000
                                                ---------
  Outstanding, December 31, 2007                5,580,000
  Granted                                       2,000,000
  Cancelled                                    (2,000,000)
                                                ---------
  Outstanding, December 31, 2008                5,580,000
                                                =========
  Exercisable at December 31, 2008              5,580,000
                                                =========

Weighted-average grant-date exercise price of options, granted during
2008 - $0.30 (2007 - $0.38).

Weighted-average remaining, years of contractual life 2008 - 4.03 (2007
- 5.03).

Warrants:
During the year ended December 31, 2008, 11,962,500 warrants were issued
(2007 - 2,040,000) as part of a private placement of units, of which
1,500,000 were exercisable at $0.20; 4,787,500 were exercisable at
$0.22; 3,850,000 were exercisable at $0.25; and 1,825,000 were
exercisable at $0.30.  These warrants expire on various dates between
February 25, 2009 and February 25, 2011.

A total of 140,000 warrants expired unexercised during the year

As an inducement to all warrant holders with $0.30 and $0.40 exercise
prices, the Company extended the expiry date by one year. $189,834
warrant inducement dividend was recorded as a result of the extension of
the expiry date of 4,009,585 warrants.


<PAGE>47

As of December 31, 2008, the Company had 18,182,083 warrants
outstanding.

The following table summarizes warrant activity:


Outstanding, December 31, 2006                  5,478,750
  Granted                                       2,040,000
  Expired                                         (22,500)
  Exercised (shares issued)                      (811,667)
  Exercised (shares to be issued)                (325,000)
                                               ----------
Outstanding, December 31, 2007                  6,359,583
  Granted                                      11,962,500
  Expired                                        (140,000)
  Exercised                                             -
                                               ----------
Outstanding, December 31, 2008                 18,182,083
                                               ==========
  Exercisable at December 31, 2008             18,182,083
                                               ==========

Weighted-average grant-date exercise price, granted during 2008 - $0.24
(2007 - $0.34).

Weighted-average remaining, years of contractual life as of 2008 - 0.92
(2007 - 0.92).

NOTE 10 - RELATED PARTY TRANSACTIONS

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 2007, consulting fees of $126,283
were charged for his services.  As a result of the Company's financial
position, in December 2008 Mr. Kazimirski reversed all 2008 charges for
his services to the Company.

On November 14, 2007, Mr. Kazimirski provided a $60,000 loan to the
Company.  This loan is unsecured, repayable on demand and bears interest
at 10% per annum.

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 the Company's
DataTRAC(tm) RFID tags, sourcing microchip manufacturers, sourcing
reader manufacturers, sourcing antennae design suppliers, and overall



<PAGE>48

product development.  Mr. Meier continues to provide services based on
his hourly rate of $175 per hour.  During 2008 and 2007 consulting fees
totaled $49,654 and $20,200 for his services, respectively.

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 expired on May 21, 2005.  The contract was not
renewed however Mr. Fields continues to provide services based on his
hourly rate of $175 per hour.  During 2007 consulting fees totaled
$41,815 for his services.  As a result of the Company's financial
position, in December 2008 Mr. Fields reversed all 2008 charges for his
services to the Company but was granted a bonus of $7,000 for his
services.

During the period ended December 31, 2008, Mr. Sudeep Bhargava, Vice
President Operations and Interim CFO, received $86,736 in salary and
bonuses.  In the same period in 2007 he received $74,681.  Based on the
Company's financial position at year end, Mr. Bhargava voluntarily
agreed to reverse all share based compensation for the year ended
December 31, 2008.

In addition to being President & CEO, Mr. Dan Finch also performs a role
of director of Advanced ID. Mr. Finch is compensated for his services as
a director.  In addition to the stock options granted to Mr. Finch
discussed in Note 3, during the period ending December 31, 2008 and
December 31, 2007 a total of $86,560 and $112,803 respectively was paid
for salary, bonuses and director fees.  Based on the Company's financial
position in December 2008, Mr. Finch voluntarily agreed to reverse all
director's fees and other share based compensation for the year ended
December 31, 2008.

On December 31, 2008 accounts receivable from related parties included
$283,995 representing the balance of all voluntary reversals of share-
based compensation by directors of the Company. The amounts were
subsequently settled by having all shares returned and cancelled.
Please refer to Note 15.

On December 31, 2008 $9,593 was included in accounts receivable from
related parties for a purchase of goods by Global Consulting on behalf
of a customer of the Company.  Global Consulting is a company owned by
the Chairman of the Advanced ID.  The transaction was done at market
rates and on the same terms as any other customer.

On December 31, 2008 accounts receivable from related parties also
included $47,113 due from Pneu Logic Ltd.  Pneu Logic Ltd. is owned by
George Yeomans, who is a director of PLCL.  In addition, another $6,273
was included in accounts receivable from related party, for an amount
due from RBC Electronics which is also owned by George Yeomans.



<PAGE>49

As of December 31, 2008, included in accounts payable to related parties
is $986 due to Global Consulting for expenses; $4,738 to Daniel Finch,
President and CEO, for fees and expenses; $874 to Hubert Meier, a
director for expenses; $7,000 to Terry Fields, a director for a bonus;
and $26,443 due to Sudeep Bhargava for bonuses and expenses.  Mr.
Bhargava is the Company's Interim CFO.

Also included in accounts payable to related parties is $26,365 due to
Laren Yeomans for expenses and fees, $33,448 to RBC Electronics for
products and 25,627 Pounds ($38,590) to PLL.

Laren Yeomans, a Director and employee of Pneu-Logic Corporation, Ltd
("PLCL"), earned $133,335 of salary during the year ended December 31,
2008.  The amount was partially settled in shares.

RBC Electronics Limited ("RBC") is a company controlled by George
Yeomans who is a director of PLCL.  During the year ending December 31,
2008, $163,618 in inventory was purchased from RBC.

$170,000 was paid to George Yeomans, a director of PLCL, during 2008 for
the contingent consideration due on the acquisition of Pneu Logic and
the Mr. Yeomans loaned 31,053 Pounds ($46,761) back to PLCL for
operating capital.

NOTE 11 - COMMITMENTS AND CONTINGENCIES

On September 15, 2008, Advanced ID entered into an employment agreement
with Dan Finch to act as the President and Chief Executive Officer. The
agreement expires December 31, 2009.  Under the terms of this agreement,
Mr. Finch is to receive an annual base salary of $103,620 with a bonus
to be determined annually by the Board of Directors.  If the Company
becomes profitable for at least one month then Mr. Finch will receive
100,000 common shares.

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


  2009          $33,668
  2010           32,148
  2011           27,586
  2012           18,391
               --------
               $111,793
               ========

In 2007, each director is compensated $1,500 per month resulting in a
total estimated directors' compensation of $90,000 per year ($18,000 per
director).  In 2008 the directors voluntarily suspended directors' fees
due to the financial condition of the Company.




<PAGE>50

NOTE 12 - CONCENTRATIONS OF CREDIT RISK

As of December 31, 2008 and 2007, amounts due from customers which
exceeded 10% of trade accounts receivables amounted to $74,172 from
three customers and $50,853 from three customers, respectively.

The Company had no customers that exceeded 10% of revenues of or total
revenues in 2008 (2007 - 13% one customer).

The Company has three vendors which, combined, accounted for
approximately 64% of total purchases in 2008 (2007 - 84% from three
vendors).

Currently, the Company realizes 50% of sales revenue from the sale of
sterilized tags and related items for companion animals, over 90% of
which is sold to the purchasing groups representing veterinarians in
Canada.  The remaining 49% is divided between tire-tag sales and the
Pneu-Logic revenues since July 1, 2007.

The Company's Pneu-Logic subsidiary, located in the United Kingdom,
comprises $192,216 of total revenues, $465,406 of total net loss, $9,766
of total assets $147,036 of total liabilities and $0 of total capital
expenditures for 2008.  The remainder of each item is comprised of
operations in Canada.

NOTE 13 - DDCT ACQUISITION

On August 29, 2008, the Company signed a term sheet to purchase all of
the assets of Shenzhen DDCT Technology Co. Ltd. ("DDCT"), based in the
People's Republic of China.  Major terms of the agreement were as
follows:

The Company would set up a wholly owned subsidiary of Advanced ID Asia
Pacific Company Limited.

The new subsidiary would purchase all of the assets of DDCT including
but not limited to inventory, leasehold improvements, intellectual
property, patents, products, product designs, contracts past and future,
collateral and manufacturing processes.

The Company must provide US$5 million in working capital over 2 years
with $200,000 paid within 30 days of signing the term sheet. In the
event the transaction is not completed, DDCT will refund the advanced
funds.

The Company must put 16,005,727 shares into escrow for distribution to
DDCT shareholders on completion of the transaction

In addition, 21,340,969 shares of Advanced ID to be placed into escrow
to be distributed to DDCT shareholders upon reaching performance
milestones to be agreed upon once the transaction has completed.

On December 1, 2008, Advanced ID Asia Pacific Company Limited set up
Advanced ID (Schenzen) Co., Ltd. in accordance with the agreement.

<PAGE>51

As at December 31, 2008 no shares had been put into escrow and the
Company had advanced approximately $195,000 to DDCT against the working
capital requirement.  Subsequent to year end, the Company canceled the
purchase of DDCT's assets due to economic conditions. The Company is
currently negotiating for the refund of the advanced funds less expenses
DDCT had made on behalf of Advanced ID (Shenzhen) Co., Ltd.  On December
31, 2008 the Company was owed $149,815 from DDCT.  A bad debt provision
was recorded for the entire amount outstanding at December 31, 2008 due
to the low probability of recovery.

NOTE 14 - CONVERTIBLE DEBENTURES

Pursuant to a Securities Purchase Agreement dated November 10, 2008, the
Company issued to a private investor a convertible debenture in the
principal amount of $1,000,000.  As consideration, the Company received
$200,000 cash and a promissory note for $800,000.  On the same day the
Company received a prepayment on the promissory note for $75,000.  The
Company accounted for the debenture in accordance with Statement of
Financial Accounting Standards ("FASB") No. 150 "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity".

The debenture bears interest at 6% per annum and matures on November 30,
2011.  In the event the Company's common stock is trading for $0.058 or
lower at any time during the period from November 10, 2008 to May 10,
2009; the interest rate shall be increased to 93/4 % per annum and all the
interest that would accrue on the debenture to maturity must be paid
within 3 business days of such event.  The interest rate adjustment has
been identified as an embedded derivative and has been accounted for at
fair value as at December 31, 2008 in accordance with FAS 133
"Accounting for Derivative Instruments and Hedging Activities" ("FAS
133").

The principal and any unpaid interest on the debenture is convertible at
the option of the holder, in whole or in part, into common shares of the
Company at a conversion price equal to the lesser of: $0.50 and 80% of
the average of the three lowest VWAP during the 20 trading days prior to
the conversion date.  The Company may increase the number of applicable
trading days if it deems appropriate.  The Company has determined that
the conversion price will likely equal the 80% average of the three
lowest VWAP during the 20 trading days prior to the conversion date and
thus recorded an additional $250,000 expense.  A debt discount of
$32,253 was recorded upon valuation of the redemption put liability.
This debt discount is being charged to operations as accretion expense
and added to the debenture payable over the term of the debenture.

                                             2008          2007
                                             ----          ----
Balance beginning of year                 $        -    $      -
Issue of debentures                        1,000,000           -
Finance charge                               250,000           -
Debt discount                                (32,253)          -
Accretion of debt discount                     1,502           -
                                          ----------    --------
                                          $1,219,249    $      -

<PAGE>52

If on the conversion date the VWAP of the Company's common stock is
below $0.08 ("Floor Price"), the Company shall have two days from the
conversion date to exercise an option to pay the principal amount being
converted plus accrued interest in cash at 150% of such amount.  The
option for net cash settlement has been identified as an embedded
derivative and has been accounted for at fair value as at December 31,
2008 in accordance with FAS 133.

In the event the Company issues common shares or options/warrants for
less than the Floor Price or convertible securities convertible at less
than the Floor Price; the new floor price shall be adjusted to 80% of
the price at which the issuance took place.  Issuances excluded from
this clause include (1) stock options to directors, officers and
employees of the Company (2) shares issued pursuant to any agreements in
effect prior to November 10, 2008 (3) shares issued pursuant to a
business acquisition (4)shares issued under this debenture.

In the case of a fundamental corporate change whereby 50% of the
Company's voting power is disposed of; the holder will have the right to
require redemption of the debenture at 150% of the principal amount
outstanding plus accrued interest or redeem the debenture for shares of
common stock of the successor or acquiring corporation.  This early
redemption clause has been identified as an embedded derivative and has
been accounted for at fair value as at December 31, 2008 in accordance
with FAS 133.  The fair value of the embedded derivative is $32,253. Any
gains or losses on this embedded derivative will be recorded in the
consolidated statement of operations and comprehensive income (loss) as
a gain or loss on financial instruments with an offset to other assets
or other liabilities on the Company's consolidated balance sheet.  For
the period from November 10, 2008 to December 31, 2008, there were no
changes to the fair value of the derivative.

The holder will not be entitled to convert the debenture for a number of
shares of common stock in excess of a number of shares that, upon giving
effect to such conversion, would cause the aggregate number of common
shares beneficially owned by the holder and its affiliates to exceed
4.99% of the outstanding common shares following such conversion.
However, this beneficial ownership limitation may be increased at the
sole discretion of the holder to 9.99% with 61 days prior written notice
to the Company.

The promissory note bears interest at 6.25% per annum and matures
November 30, 2011. In the event the Company's common stock is trading
for $0.058 or lower at any time during the period from November 10, 2008
to May 10, 2009; the interest rate shall be decreased to 43/4 % per annum.

The holder is required to redeem the note at a rate of $200,000 per
month beginning 6 months from the date of issuance until all principal
and accrued interest has been paid. If the VWAP of the Company's common
shares for any 10 day trading period is below $0.038, or if the Company
is in default under the debenture, the mandatory redemption requirement
of the holder is waived.


<PAGE>53

Failure of the holder to make mandatory redemption payments will result
in an increase in the interest rate on the note of 1/4 % per missed
payment, to a maximum of 121/2 % interest accruing on the note.

The note is secured by all receivables, inventory, equipment &
furnishings, books and records and products and proceeds of the holder.

As of the date of this report, Advanced ID does not have sufficient
shares authorized to meet all of the various share issuance obligations
as discussed throughout these notes, including stock options, stock
warrants, stock committed for cash, stock committed for services,  the
convertible debenture with La Jolla Cove Investors, Inc., and the
potential acquisition of DDCT.  Advanced ID may not be able to carry out
its intended transactions due to a lack of sufficient authorized shares.
The Company intends to seek authorization to increase the number of
authorized shares it has available at its next Annual General Meeting.


NOTE 15 - SUBSEQUENT EVENTS

Pursuant to a board resolution, on January 12, 2009, the expiry date of
900,000 warrants exercisable at $0.40 was extended by one year to
January 12, 2010.

Pursuant to a board resolution, on February 10, 2009, the expiry date of
200,000 warrants exercisable at $0.30 was extended by one year to
February 10, 2010.

Pursuant to a board resolution, on February 14, 2009, the expiry date of
200,000 warrants exercisable at $0.30 was extended by one year to
February 14, 2010.

Pursuant to a board resolution, on February 20, 2009, the expiry date of
100,000 warrants exercisable at $0.30 was extended by one year to
February 20, 2010.

Pursuant to a board resolution, on February 25, 2009, the expiry date of
1,000,000 warrants exercisable at $0.20 was extended by one year to
February 25, 2010.

Pursuant to a board resolution, on March 2, 2009, the expiry date of
100,000 warrants exercisable at $0.30 was extended by one year to March
2, 2010.

Pursuant to a board resolution, on March 6, 2009, the expiry date of
100,000 warrants exercisable at $0.30 was extended by one year to March
6, 2010.

Pursuant to a board resolution, on March 23, 2009, the expiry date of
400,000 warrants exercisable at $0.30 was extended by one year to March
23, 2010.

Pursuant to a board resolution, on March 30, 2009, the expiry date of
84,998 warrants exercisable at $0.30 was extended by one year to March
30, 2010.

<PAGE>54

On February 18, 2009 a director voluntarily returned for cancellation
850,973 shares of common stock received as compensation in 2008.

On March 12, 2009 a director voluntarily returned for cancellation
328,010 shares of common stock received as compensation in 2008.

On March 18, 2009 785,000 shares were returned and canceled in
settlement of subscriptions receivable.

On March 30, 2009 a director voluntarily returned for cancellation
315,449 shares of common stock received as compensation in 2008.



<PAGE>55

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

Not applicable

ITEM 9A.  CONTROLS AND PROCEDURES

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures:

In connection with the preparation of this annual report, an evaluation
was carried out by our management, with the participation of the chief
executive officer and the chief financial officer, of the effectiveness
of our disclosure controls and procedures, as defined in Rules 13a-15(e)
and 15d-15(e) under the Securities Exchange Act as of December 31, 2008.
Disclosure controls and procedures are designed to ensure that
information required to be disclosed in the reports filed or submitted
under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the Commission's rules and forms
and that such information is accumulated and communicated to management,
including the chief executive officer and chief financial officer, to
allow timely decisions regarding required disclosures.

In the course of making our assessment of the effectiveness of
disclosure controls and procedures, we have identified a significant
deficiency in our disclosure controls and procedures.  A significant
deficiency is a deficiency, or a combination of deficiencies, in
internal control over financial reporting that is less severe than a
material weakness, yet important enough to merit attention by those
responsible for oversight of the registrant's financial reporting.
Therefore, it is our conclusion that the registrant's disclosure
controls and procedures were not effective as of December 31, 2008.

Information from the books and records of PLCL were inadvertently
combined with those of PLL resulting in additional cost and time to
separate the information.  As discussed below, management has
implemented additional internal controls to ensure that similar
situations do not occur in the future.

Management's Annual Report on Internal Control over Financial Reporting:

Our management is responsible for establishing and maintaining adequate
internal control over financial reporting.  Our internal control over
financial reporting is the process, under the supervision of our chief
executive officer and the chief financial officer, designed to provide
reasonable assurance regarding the reliability of financial reporting
and the preparation of our financial statements for external purposes in
accordance with United States generally accepted accounting principles
(GAAP).  Internal control over financial reporting includes those
policies and procedures that:
   -  Pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and disposition of
Advanced ID assets;

<PAGE>56

   -  Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of the financial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures are being made only in accordance with
authorizations of management and the board of directors; and

   -  Provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of our assets
that could have a material effect on the financial statements.

Due to its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.  Also, projections of
any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in
conditions or that the degree of compliance with the policies or
procedures may deteriorate.

Our management conducted an assessment of the effectiveness of our
internal control over financial reporting as of December 31, 2008 based
on criteria established in Internal Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission, which assessment
identified material weaknesses in internal control over financial
reporting.  A material weakness is a control deficiency, or a
combination of deficiencies in internal control over financial reporting
that creates a reasonable possibility that a material misstatement in
annual or interim financial statements will not be prevented or detected
on a timely basis.  Since the assessment of the effectiveness of our
internal control over financial reporting did identify material
weaknesses, management considers its internal control over financial
reporting g to be ineffective.

The matters involving internal control over financial reporting that our
management considered to be material weaknesses were:
   -  Lack of a functioning audit committee due to a lack of a majority
of independent members and a lack of a majority of outside directors on
our board of directors, resulting in ineffective oversight in the
establishment and monitoring of required internal controls over
financial reporting;
   -  Inadequate segregation of duties consistent with control
objectives; and
   -  Ineffective controls over period end financial disclosure and
reporting processes.

The aforementioned material weaknesses were identified by our chief
executive officer in connection with the review of our financial
statements as of December 31, 2008.

Management believes that the material weaknesses set forth above did not
have an effect on our financial results.  However, management believes
that the lack of a functioning audit committee, the inadequate
segregation of duties and the lack of a majority of outside directors on
our board of directors results in ineffective oversight in the
establishment and monitoring of required internal controls over
financial reporting, which weaknesses could result in a material
misstatement in our financial statements in future periods.

<PAGE>57

This annual report does not include an attestation report of our
registered public accounting firm regarding internal control over
financial reporting.  Management's report was not subject to attestation
by our registered public accounting firm pursuant to temporary rules of
the Commission that permit Advanced ID to provide only the management's
report in this annual report.

Management's Remediation Initiatives

In an effect to remediate the identified material weaknesses and enhance
our internal controls over financial reporting, Advanced ID has
initiated, or plans to initiate the following measures:
   -  We intend to segregate the duties of chief executive officer and
chief financial officer consistent with our control objectives and
engage outside accounting resources as funds become available to us.
   -  Further, we intend to appoint outside directors to our board in
order to form a functioning audit committee that will undertake
oversight in the establishment and monitoring of required internal
controls over financial reporting such as reviewing estimates and
assumptions made by management.

Subsequent to year ended December 31, 2008, we segregated the duties of
chief executive officer from those of chief financial officer.  We have
not yet appointed outside directors.

Changes in Internal Control over Financial Reporting:

During the year ended December 31, 2008, there has been no change in our
internal control over financial reporting that has materially affected,
or is reasonably likely to materially affect, our internal control over
financial reporting.


ITEM 9B.  OTHER INFORMATION

None


<PAGE>58
PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

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              AGE     POSITIONS HELD             SINCE

Dan Finch          65    President & CEO, Director   September 2005
                         Acting CFO
Sudeep Bhargava    51    VP of Operations            January 2007
Seymour Kazimirski 61    Director/Chairman           October 2002
Terry Fields       65    Director                    July 2005

Business Experience of Officers, Directors and Significant Employees

Dan Finch - President, CEO and Acting CFO has 21 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 - Vice President, Operations, has over 28 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, 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



<PAGE>59

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.

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.  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.
Fields has extensive business experience, especially with public
corporations and their securities, as well as mergers and acquisitions.
Fields has strong ties with the financial communities, both domestic and
international, having lived in Europe for five years.  At present,
Fields is President and Director of Sunburst Acquisitions IV (SBAQ),
Bishop Resources Inc. (BIS) and Visual Statement Inc., a private
Canadian corporation.

Hubert Meir resigned as a director in February 2009 but still consults
to us.

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.

Section 16(a) Beneficial Ownership Reporting Compliance

To our knowledge, no director, officer or beneficial owner of more than
ten percent of any class of our equity securities, failed to file on a
timely basis reports required by Section 16(a) of the Exchange Act
during 2008.

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.

Indemnification

We shall indemnify to the fullest extent permitted by, and in the manner
permissible under the laws of the State of Nevada, any person made, or
threatened to be made, a party to an action or proceeding, whether

<PAGE>60

criminal, civil, administrative or investigative, by reason of the fact
that he is or was one of our directors or officers, or served any other
enterprise as director, officer or employee at our request.  The board
of directors, in its discretion, shall have the power on our behalf to
indemnify any person, other than a director or officer, made a party to
any action, suit or proceeding by reason of the fact that he/she is or
was an employee of the Corporation.

Insofar as indemnification for liabilities arising under the Act may be
permitted to directors, officers and controlling persons of Advanced ID,
we has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable.  In the event that a claim for
indemnification against such liabilities (other than the payment by us
of expenses incurred or paid by a director, officer or controlling
person of the Corporation in the successful defense of any action, suit
or proceedings) is asserted by such director, officer, or controlling
person in connection with any securities being registered, we 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 Act and will be governed by the final adjudication of
such issues.

INDEMNIFICATION OF OFFICERS OR PERSONS CONTROLLING ADVANCED ID FOR
LIABILITIES ARISING UNDER THE SECURITIES ACT OF 1933, IS HELD TO BE
AGAINST PUBLIC POLICY BY THE SECURITIES AND EXCHANGE COMMISSION AND IS
THEREFORE UNENFORCEABLE.


ITEM 11. 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, 2008, Advanced ID renewed the employment agreement
with Dan Finch for 15 months.  The replacing agreement expires on
December 31, 2009 and there was no salary increase.  In early 2009, Mr.
Finch offered to temporarily reduce his compensation by 10% until the
health of the company improves.
<TABLE>
                                                                    Long Term Compensation
                       Annual Compensation                            Awards               Payouts
                                                        Other                  Securities            All
Name                                                   Annual Restricted      Underlying   LTIP     Other
and                                                    Compen-   Stock          Options/   Pay-    Compen-
Principal                       Salary        Bonus    sation    Awards          SARs      Outs    sation
Position                Year      ($)          ($)       ($)       ($)           (#)       ($)       ($)

                     <c>       <c>          <c>       <c>       <c>           <c>       <c>       <c>
Dan Finch
CEO                    2008      $83,560       $3,000    $0        $0      1,400,000        $0       $0
                       2007     $112,103       $0        $0        $0      1,400,000        $0       $0
Sudeep Bhargava        2007      $79,236       $7,500    $0        $0         50,000        $0       $0
CFO                    2007      $85,000       $0        $0        $0         50,000        $0       $0
</TABLE>


<PAGE>61

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.   No cash has
been paid to the directors in their capacity as such.


ITEM 12.  SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDERS MATTERS

The following table sets forth, as of April 7, 2009, the number and
percentage of our outstanding shares of 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.

                            Common Stock      Percentage of
Name of Beneficial Owner   Beneficially Owned    Class Owned
------------------------   ------------------   -------------
Dan Finch                       150,180            0.20%
Seymour Kazimirski            3,924,484            5.32%
Terry Fields                    462,904            0.63%
Sudeep Bhargava                 110,000            0.15%
David Goldenberg              5,858,540            7.95%
Directors/Officers
  as a group                  4,647,568              6.31%

Based upon 73,710,839 issued and outstanding as of April 7, 2009.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.

Seymour Kazimirski.  In addition to being a director of the registrant,
Mr. Kazimirski provides consulting services to the registrant 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 registrant in finding and negotiating supplier partnership
agreements, and other general business tasks as requested by the
registrant.  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 2007, consulting fees of $126,283 were charged for his
services.  As a result of the registrant's financial position, in
December 2008, Mr. Kazimirski reversed all 2008 charges for his services
to the registrant.

On November 14, 2007, Mr. Kazimirski provided a $60,000 loan to the
registrant.  This loan is unsecured, repayable on demand and bears
interest at 10% per annum.



<PAGE>62

On December 31, 2008, $9,593 was included in accounts receivable from
related parties for a purchase of goods by Global Consulting on behalf
of a customer of the registrant.  Global Consulting is a company owned
by the Seymour Kazimirski, Chairman of the registrant.  The transaction
was done at market rates and on the same terms as any other customer.

Hubert Meier.  In addition to being a director of the registrant, Mr.
Meier provides consulting services to the registrant 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.  Mr. Meier continues to provide services based on
his hourly rate of $175 per hour.  During 2008 and 2007, consulting fees
totaled $49,654 and $20,200 for his services, respectively.

Terry Fields.  In addition to being a director of the registrant, Mr.
Fields provides consulting services to the registrant 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 expired on
May 21, 2005.  The contract was not renewed however Mr. Fields continues
to provide services based on his hourly rate of $175 per hour.  During
2007 consulting fees totaled $41,815 for his services.  As a result of
the registrant's financial position, in December 2008, Mr. Fields
reversed all 2008 charges for his services to the registrant but was
granted a bonus of $7,000 for his services.

Sudeep Bhargava.  During the period ended December 31, 2008, Mr. Sudeep
Bhargava, Vice President Operations and Interim CFO, received $86,736 in
salary and bonuses.  In the same period in 2007, he received $74,681.
Based on the registrant's financial position at year end, Mr. Bhargava
voluntarily agreed to reverse all share based compensation for the year
ended December 31, 2008.

Dan Finch.  In addition to being president and CEO, Mr. Dan Finch also
performs a role of director of the registrant.  Mr. Finch is compensated
for his services as a director.  In addition to the stock options
granted to Mr. Finch, during the period ending December 31, 2008 and
December 31, 2007 a total of $86,560 and $112,803 respectively was paid
for salary, bonuses and director fees.  Based on the registrant's
financial position in December 2008, Mr. Finch voluntarily agreed to
reverse all director's fees and other share based compensation for the
year ended December 31, 2008.

Cancelled common shares.  On December 31, 2008, accounts receivable from
related parties included $283,995 representing the balance of all
voluntary reversals of share-based compensation by directors of the
registrant.  The amounts were subsequently settled by having all shares
returned and cancelled.

Other related party transactions.  On December 31, 2008 accounts
receivable from related parties also included $47,113 due from Pneu
Logic Ltd.  Pneu Logic Ltd. is owned by George Yeomans, who is a

<PAGE>63

director of PLCL.  In addition, another $6,273 was included in accounts
receivable from related party, for an amount due from RBC Electronics
which is also owned by George Yeomans.

As of December 31, 2008, included in accounts payable to related parties
is $986 due to Global Consulting for expenses; $4,738 to Daniel Finch,
President and CEO, for fees and expenses; $874 to Hubert Meier, a
director for expenses; $7,000 to Terry Fields, a director for a bonus;
and $26,443 due to Sudeep Bhargava for bonuses and expenses.

Also included in accounts payable to related parties is $26,365 due to
Laren Yeomans for expenses and fees, $33,448 to RBC Electronics for
products and 25,627 Pounds ($38,590) to PLL.

Laren Yeomans, a director and employee of Pneu-Logic Corporation, Ltd,
earned $133,335 of salary during the year ended December 31, 2008.  The
amount was partially settled in shares.

RBC Electronics Limited is a company controlled by George Yeomans who is
a director of PLCL.  During the year ending December 31, 2008, $163,618
in inventory was purchased from RBC.

$170,000 was paid to George Yeomans, a director of PLCL, during 2008 for
the contingent consideration due on the acquisition of Pneu Logic and
the Mr. Yeomans loaned 31,053 Pounds ($46,761) back to PLCL for
operating capital.

Director Independence.

Seymour Kazimirski, Hubert Meier, Terry Fields, Dan Finch, George Yeomans
and Laren Yeomans are not independent as such term is defined by a
national securities exchange or an inter-dealer quotation system.  During
the fiscal year ended December 31, 2008, there were no transactions with
related persons other than as described in the section above entitled
"Item 11.  Executive Compensation".


ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

Audit Fees. We incurred aggregate fees and expenses of approximately
$111,742, $78,500 and $55,000 from our principal accountant for the
2008, 2007 and 2006 fiscal years respectively.  Such fees included work
completed for our annual audit in previous years and for the review of
our financial statements included in our Forms 10-QSB.  In addition we
incurred aggregate fees to our new auditors of US$67,500 related to our
2008 audit.

Tax Fees.   We incurred aggregate tax fees and expenses of $1,000, $Nil
and $Nil from our tax accountant for the 2008, 2007 and 2006 fiscal
years respectively, for professional services rendered for tax
compliance, tax advice, and tax planning.



<PAGE>64

The board of directors, acting as the Audit Committee considered
whether, and determined that, the auditor's provision of non-audit
services was compatible with maintaining the auditor's independence.

All of the services described above for fiscal year 2008 and 2007 were
approved by the Board of Directors pursuant to its policies and
procedures.  In 2008 we changed our auditors to Yu and Associates.  We
intend to continue using Yu and Associates for audit and audit-related
services, tax consultation and tax compliance services, and, as needed,
for due diligence in acquisitions.  Until November 2008, we were using
LBB and Associated Ltd. LLP.



<PAGE>65
Part IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)(1)  List of Financial statements included in Part II hereof

Balance Sheets, December 31, 2008 and 2007
Statements of Operations for the years ended December 31, 2008 and 2007
Statements of Stockholders' Equity for the years ended December 31, 2008
and 2007
Statements of Cash Flows for the years ended December 31, 2008 and 2007
Notes to the Financial Statements

(a)(2) List of Financial Statement schedules included in Part IV hereof:
None

(a)(3) Exhibits

The following of exhibits are filed with this report:

(31) 302 certification

(32) 906 certification



<PAGE>66

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this
Report to be signed on its behalf by the undersigned duly authorized
person.

Advanced ID Corporation
(Registrant)

By:  /s/ Dan Finch                             Dated: September 28, 2009
     ----------------------
     Dan Finch, President

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.

By:  /s/ Dan Finch                            Dated: September 28, 2009
     ----------------------
     Dan Finch, CEO, Principal Accounting
       Officer, Director

By:  /s/Seymour Kazimirski                     Dated: September 28, 2009
     ----------------------
     Seymour Kazimirski, CFO, Director

By:  /s/Terry Field                           Dated:  September 28, 2009
     ----------------------
     Terry Field, Director