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

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FORM 10-KSB

[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the Fiscal Year Ended December 31, 2006

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the Transition Period from _____ to _____

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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)

    6143 - 4 Street SE, Suite 14                        T2H 2H9
       (Address of principal                          (Postal Code)
         executive office)

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

Securities registered under Section 12(b) of the Exchange Act:
None.

Securities registered under Section 12(g) of the Exchange Act:
Common Stock.

Indicate by check mark whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

Yes  [x]  No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-B is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy



<PAGE>2

or information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to Form 10-KSB.

Yes  [x]  No [ ]

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

Total revenues for our fiscal year ended December 31, 2006 were $889,089.

As of March 31, 2007, the aggregate market value of the common stock held by
non-affiliates of the registrant, computed by reference to the closing bid
price for the common stock as reported on the OTC Bulletin Board, was
$14,787,010.  In addition to shares excluded by affiliates, this calculation
also excludes shares of the registrant's Common Stock that are held by
Schedule 13D filers.

As of March 31, 2007 there were 52,538,914 shares of common stock issued and
outstanding.



<PAGE>3
ADVANCED ID CORPORATION
FORM 10-KSB

For the Fiscal Year Ended December 31, 2006
PART I
ITEM 1.  DESCRIPTION OF BUSINESS                                      5
  Overview
  Products and Services Overview
    Companion Animal/Biological Sciences, Inanimate Products and Services
  Livestock Animal Products and Services
  Business Model
  Intellectual Property
  Target Market
  Marketing and Sales Strategy
    Sales and Distribution Channels
    Pricing Strategy
    Recent Developments
  Competition
  Competitive Advantages
  Cautionary Factors that may affect Future Results
  Trademarks and Patents
  Employees
  Reports to Security Holders
ITEM 2.  DESCRIPTION OF PROPERTY                                     19
ITEM 3. LEGAL PROCEEDINGS                                            19
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS         19
ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS    20
  Market Information
  Holders
  Dividends
  Securities Authorized for Issuance under Equity Compensation Plans
  Recent Sales of Unregistered Securities
    Fiscal 2005 Transactions
    Fiscal 2006 Transactions
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION    29
  Results of Operations for the Fiscal Years Ended December 31,
    2006 and December 31, 2005
  Revenues
  Cost of Revenues
  Research and Development
  Selling, General and Administrative
  Minority Share of Net Income
  Interest Expense
  Liquidity and Capital Resources
ITEM 7.  FINANCIAL STATEMENTS                                        32
ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
  ACCOUNTING AND FINANCIAL DISCLOSURE                                32
ITEM 8A.  CONTROLS AND PROCEDURES                                    32
ITEM 8B.  OTHER INFORMATION                                          33



<PAGE>4

PART III
ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL
  PERSONS AND CORPORATE GOVERNANCE; COMPLIANANCE WITH SECTION
  16(a) OF THE EXCHANGE ACT.                                         34
  Directors, Officers and Significant Employees
  Business Experience of Officers, Directors and Significant
    Employees
  Section 16(a) Beneficial Ownership Reporting Compliance
  Code of Ethics Policy
  Corporate Governance
  Indemnification
ITEM 10. EXECUTIVE COMPENSATION.                                     37
ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
  MANAGEMENT AND RELATED STOCKHOLDER MATTERS                         38
ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND
  DIRECTOR INDEPENDENCE                                              39
ITEM 13.  EXHIBITS                                                   40
ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES                     41
SIGNATURES                                                           42




<PAGE>5

ITEM 1.  DESCRIPTION OF BUSINESS

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

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

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

Advanced ID develops, manufactures and sells, either directly or through
distributors, microchip identification technologies referred to as radio
frequency identification microchips and readers to the animal industry.  In
the second quarter of 2004, we began commercializing these products under the
brand name, DataTRAC(tm).  The intellectual property rights to the DataTRAC(tm)
products are owned by Advanced ID Corporation.

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



<PAGE>6

microchips in over 450,000 companion and other valuable animals, currently
track nearly one million animals in our PETtrac database, and reunite
numerous lost animals with their families each month.

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

As noted above, we are currently serving the Canadian market as a reseller
for AVID and SOKYMAT LF RFID products.  We are expanding our sales effort for
SOKYMAT chips into several countries, including China, Taiwan and Thailand.

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




<PAGE>7

    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 (ISO), Federation of European Companion
Animal Veterinarian Association (FECAVA) and AVID's encrypted standard.

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

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

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

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

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

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

Currently, we are the only company that is offering ultra high frequency tags
to the livestock industry.  All of our competitors offer low frequency tags
which are generally more costly to produce, offer a shorter read range, and
have limited reading capability within automated livestock processing plant
environments. Adoption of RFID

<PAGE>8

technology by animal owners has been slower than anticipated resulting lower
than anticipated sales, additionally the adoption of Low Frequency ISO 11784
and 11785 compliant technology by a growing number of countries has impacted
on the market potential and the company has reduced the scales of its
continuing development of the livestock application.

    RFID Readers:  We offer stationary and handheld readers that will scan
and read our microchips.  Effective November 2003, we secured a partnership
agreement with Applied Wireless Identifications Group, Inc. of New York to
supply us with ultra high frequency readers that we will resell to our
customers.

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

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

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

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

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

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

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





<PAGE>9

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

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

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

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

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

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

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

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

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

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

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



<PAGE>10

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 Company
will carefully choose those technologies and market sectors where we can
successfully compete.

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

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

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

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

    Pricing Strategy

We plan to be a price-performance leader with all of our products and
services.  This is intended to assist our efforts to gain market acceptance
and secure market share in the companion pet recovery industry throughout the
world, and further allow us to continue to both increase the market size and
our market share in the tire management market.  It is our goal to keep our
expenditures small to ensure we maintain low product price points to
discourage other competitors from entering the market yet allowing us to earn
a healthy margin.  We anticipate that any cost savings we achieve through
process improvements will lead to reductions in our price points to
discourage other competitors from entering the market.

    Recent Developments

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

<PAGE>11

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

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

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

Competition
-----------
Our largest competitor in the companion animal and biological sciences market
in Canada is Pethealth Inc. who is estimated to have approximately 45% market
share compared with our estimated 40% market share.  During 2004, Anitech
Enterprises Inc. ceased operations and no longer remains a competitor.  Less
than three years ago, Anitech held the largest market share in Canada.  The
remaining 15% market share is spread among two companies which includes
Microchips 4 Solutions and EIDAP.  While in business, Anitech was a reseller
of Digital Angel Corporation's microchips and readers and as further
referenced under Applied Digital Solutions below.

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



<PAGE>12

of CAD $3,299,698 from microchip sales in Canada and United States.  Revenues
from microchip sales during the year ended December 31, 2005 totaled CAD
$1,364,762.

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

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

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

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



<PAGE>13

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



<PAGE>14

Cautionary Factors that may Affect Future Results
-------------------------------------------------
(a)  We cannot offer any assurance as to our future financial results.  You
may lose your entire investment.

We have not received substantial income from operations to date and future
financial results are uncertain.  We cannot assure you that Advanced ID can
operate in a profitable manner.  To date, we have an accumulated deficit of
$(6,284,159) as of December 31, 2006.  Even if we obtain future revenues
sufficient to expand operations, increased production or marketing expenses
would adversely affect liquidity of Advanced ID.

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

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

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

The liquidity of our common stock would be restricted even after public
listing if Advanced ID's common stock falls within the definition of a penny
stock.

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

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




<PAGE>15

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

At December 31, 2006, we maintained cash balances with the Bank of Montreal,
Canadian Imperial Bank of Commerce and Bank One.  Balances are insured up to
$100,000 by the Federal Deposit Insurance Corporation.  At times, balances
may exceed such insurance limits.  Our liquidity may be negatively affected
if these institutions should fail.

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

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

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

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

(g)  Your vote may not affect the outcome of any shareholder vote since our
principal stockholder currently retains approximately 21.6% of our
outstanding stock.



<PAGE>16

For instance, Heritage Ventures, Ltd. may be able to control the outcome of
all stockholder votes, including votes concerning director elections, charter
and by-law amendments and possible mergers, corporate control contests and
other significant corporate transactions.

(h)  Changes in foreign policies could have an adverse effect on our
operations.  All marketing will be done in-house and through international
distributors.

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

To date we have entered into three distribution agreements.  In May 2003,
Advanced ID announced that we had signed an agreement with Loving Kindness
International Technology Co., Ltd. (LKIT) for the distribution of its
products in Taiwan.  LKIT is one of the largest suppliers of veterinary
products in Taiwan, servicing the needs of the companion animal and livestock
markets.  In November 2003, Advanced ID announced that we had reached an
agreement with Natural Fields S.A. of Argentina for distribution in that
country.  Natural Fields S.A. is one of the largest exporters of cattle to
Europe and the United States.  In January 2004, Advanced ID announced that we
had signed an agreement with Trace Australia Pty Ltd. as its exclusive
distributor for Australia.  Trace Australia is a wholly owned subsidiary of
Polymer Direct Australia Pty Ltd. ($30 million annual revenues) and was
established specifically to focus on the development and distribution of RFID
applications.

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

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

(j)  Changes in the foreign exchange rate could negatively affect our
profitability.

We face foreign exchange rate exposure.  We will offer payment for our
products and services in U.S. dollars except for our Canadian customers who
will pay us in Canadian dollars.  With the majority of expenses expected to
be in Canadian dollars, we will be exposed to fluctuations



<PAGE>17

in foreign exchange rates from both a transactional and translational
perspective.  There is a risk that foreign exchange rate fluctuations between
the Canadian dollar and the U.S. dollar will be disadvantageous to us.

(k)  We may be subject to product obsolescence that could result in reduced
profitability.

The markets for our products are characterized by evolving industry
standards, technological changes and changing customer needs.  The
introduction of products embodying new technologies and the emergence of new
microchips or software could render our existing products obsolete and
unmarketable.  Consequently, our success will depend upon our ability to
successfully develop and introduce new and enhanced products that evolves
with technological and industry developments, industry standards and customer
needs.  The timing and success of product development is unpredictable due to
the inherent uncertainty in anticipating technological developments,
difficulties in identifying and correcting design flaws and market
acceptance.  Any significant delay in releasing new products or enhancements
could have a material adverse effect on the success of new products or
enhancements that could have a material adverse effect on our business.
There is no certainty that we will be able to introduce new products on a
timely basis, that such products will achieve any market acceptance or that
any such market acceptance will be sustained for any significant period.
Failure of new products to achieve or sustain market acceptance could have a
material adverse effect on our business.

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

We will contract with third parties to provide some of the technological
components regarding our products.  We cannot assure you that, if we cannot
contract with these parties on terms favorable to us, that we will be
profitable.  We have outsourced the design and manufacturing of the antennae
utilized as one of the key components in Advanced ID's RFID products to Hana
Microelectronics Public Co. Ltd of Lamphun, Thailand.  In addition, Advanced
ID has outsourced manufacturing of the plastic encapsulation of its RFID tags
to Guide-Trend Co., Ltd. of China.  In April 2003, Advanced ID announced it
had signed a strategic partnership agreement with Guide-Trend to perform
production and encapsulation functions. There are no general contractual
requirements as the terms are negotiated and specified for each purchase
order based on volumes purchased.

(m)  Our business may be negatively affected by the misappropriation of our
intellectual property.

We have entered into confidentiality and assignment agreements with our
employees, suppliers and contractors, and non-disclosure agreements with
outside parties with which we conduct business, in order to limit access to
and disclosure of our proprietary information.  There is no

<PAGE>18

certainty that these contractual arrangements will protect our intellectual
property from misappropriation or deter third party development of similar
technologies.  We will pursue registration of our trademarks and may license
our proprietary rights to third parties. While we will attempt to ensure the
quality of our brand names is maintained by distributors and licensees, there
is no certainty that such distributors and licensees will not take action
that might materially adverse effect our business, operations and financial
condition.

On May 12, 2005, the SEC declared our Form SB-2 registration statement
effective whereby we registered common shares and warrants for the purpose of
raising capital.  As of March 30, 2006, the SB-2 was fully subscribed raising
$525,000 from private placements.  An additional $151,000.20 was raised prior
to December 31, 2006 from sale of 503,334 warrants.  The shares and warrants
were priced as a unit (1share and 1 warrant = 1 unit). Shares are priced at
$.15/share and 3 year warrants are priced at $.30/warrant.

The object of our business model is to be a viable, profitable entity.
Should one or several of these factors be implemented or become effective,
this could adversely affect our objective and as such, place any investment
in us at risk.

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

Employees
---------
We presently have five full-time employees, four contract employees and one
part-time employee.  We have entered into consulting agreements with two
other parties to perform such duties as technical support, software
development, channel development, product development, marketing and sales.
On July 1, 2005, Advanced ID Corporation 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
Advanced ID 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.

Reports to Security Holders
---------------------------
Effective October 17, 2002 we became a fully reporting company under the
requirements of the Exchange Act, and to date we have filed the necessary
quarterly and other reports with the Securities and Exchange Commission.
Although we are not required to deliver our annual or quarterly reports to
security holders, we would be pleased to forward

<PAGE>19

this information to security holders upon receiving a written request to
receive such information.  The reports and other information filed by us will
be available for inspection and copying at the public reference facilities of
the Securities and Exchange Commission located at 450 Fifth Street, N. W.,
Washington, D.C. 20549.

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


ITEM 2.  DESCRIPTION OF PROPERTY.

We currently have an agreement to lease office premises until August 31,
2007.  We have committed to leasing approximately 2,304 rentable square feet
and are obligated to pay basic rent and operating costs for a total cost of
$2,473.50 per month.  The real property utilized by Advanced ID 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.


ITEM 3. LEGAL PROCEEDINGS.

There are currently no pending or threatened legal proceedings which involve
us or against any of our officers or directors as a result of their
capacities with Advanced ID.


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

None.



<PAGE>20

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

Market Information
------------------
Our common stock is traded over the counter and is quoted by the Over The
Counter Bulletin Board (OTCBB) under the trading symbol AIDO.  Our common
stock began trading on the OTCBB effective October 17, 2002 upon conclusion
of our reverse merger with USA Sunrise Beverages, Inc.  The market prices
noted below were obtained from the OTCBB and reflect inter-dealer prices,
without retail mark-up, mark-down or commission and may not represent actual
transactions.

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

Holders
-------
As of March 31, 2007, the approximate number of shareholders of common stock
of Advanced ID was 1,772.

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

Securities Authorized For Issuance under Equity Compensation Plans
------------------------------------------------------------------
<TABLE>
<CAPTION>
Plan Category            Number of Securities
                         Issued Upon Exercise of       Weighted Average Exercise     Number of Securities
                         Outstanding Options,      Price of Outstanding Options      Remaining Available
                         Warrants and Rights             Warrants and Rights         For Future Issuance


                              <c>                           <c>                         <c>
                                 (a)                           (b)                         (c)
Equity Compensation Plans
  Approved by Security Holders   n/a                           n/a                         n/a
Equity Compensation Plans
  Not Approved by Security
  Holders                     10,586,787                       $0.43                        n/a
Total                         10,586,787                       $0.43                        n/a
</TABLE>



<PAGE>21

Recent Sales of Unregistered Securities
---------------------------------------
Fiscal 2005 Transactions

On January 4, 2005, we issued 100,000 options to one of our employees with an
exercise price of $0.38, the closing bid price on the date the options were
issued.  One half of the options will vest on the first anniversary date and
the balance will vest on the second anniversary date of issuance.

During January and February 2005, we issued a total of 60,000 shares of our
common stock to Financial Capital Consultants for consulting services
rendered in connection with financial public relations and business
development.

On July 1, 2005, Advanced ID issued 291,667 shares and 58,333 shares of
Common Stock to Gottfried Auer and Mayuree Moonros to acquire a 60% interest
in AFG Asia Engineering Co., Ltd.

On July 21, 2005, Advanced ID issued a total of 400,000 shares of Common
Stock to Financial Capital Consultants for consulting services rendered in
connection with financial public relations and business development. Advanced
ID recorded a non-cash expense of $84,000 related to these shares. The shares
were valued based on the closing price on the date they were awarded.

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

On September 29, 2005, Advanced ID issued a total of 375,000 shares of Common
Stock to three investors for cash proceeds totaling $75,000. In connection
with the sale of the 375,000 shares of common stock, Advanced ID issued
warrants to acquire 375,000 shares of common stock at $0.40 per share for a
period of three years.  No expense was recorded in the quarter related to the
issuance of these warrants or common stock because the issuances related to
fund raising costs.

On October 17, 2005, Advanced ID issued a total of 125,000 shares of Common
Stock to one investor for cash proceeds totaling $25,000. In connection with
the sale of the 125,000 shares of common stock, Advanced ID issued warrants
to acquire 125,000 shares of common stock at $0.40 per share for a period of
three years.

On October 20, 2005, Advanced ID amended its subscription agreements with the
four investors noted above. As a result, each investor received an additional
41,667 shares of Common Stock and an additional 41,667 warrants. The exercise
price of the warrants was also amended to $0.30 per share.



<PAGE>22

On October 27, 2005, Advanced ID issued a total of 286,667 shares of Common
Stock to four investors for cash proceeds totaling $43,000. In connection
with the sale of the 286,667 shares of common stock, Advanced ID issued
warrants to acquire 286,667 shares of common stock at $0.30 per share for a
period of three years.

On November 7, 2005, Advanced ID issued a total of 26,667 shares of Common
Stock to one investor for cash proceeds totaling $4,000. In connection with
the sale of the 26,667 shares of common stock, Advanced ID issued warrants to
acquire 26,667 shares of common stock at $0.30 per share for a period of
three years.

On November 18, 2005, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years.

On November 21, 2005, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years.

On November 24, 2005, Advanced ID issued a total of 200,000 shares of Common
Stock to one investor for cash proceeds totaling $30,000. In connection with
the sale of the 200,000 shares of common stock, Advanced ID issued warrants
to acquire 200,000 shares of common stock at $0.30 per share for a period of
three years

On December 7, 2005, Advanced ID issued a total of 15,000 shares of Common
Stock to one investor for cash proceeds totaling $2,250. In connection with
the sale of the 15,000 shares of common stock, Advanced ID issued warrants to
acquire 15,000 shares of common stock at $0.30 per share for a period of
three years

On December 16, 2005, Advanced ID issued a total of 200,000 shares of Common
Stock to one investor for cash proceeds totaling $30,000. In connection with
the sale of the 200,000 shares of common stock, Advanced ID issued warrants
to acquire 200,000 shares of common stock at $0.30 per share for a period of
three years

Except as noted, all of the securities issued in 2005 were issued pursuant to
an exemption from registration under Section 4(2) of the Securities Act of
1934 to sophisticated investors.

Fiscal 2006 Transactions

On February 10, 2006, Advanced ID issued a total of 300,000 shares of Common
Stock to one investor for cash proceeds totaling $45,000.  In connection with
the sale of the 300,000 shares of common stock, Advanced ID issued warrants
to acquire 300,000 shares of common stock at $0.30 per share for a period of
three years



<PAGE>23

On February 10, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On February 10, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On February 10, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On February 14, 2006, Advanced ID issued a total of 300,000 shares of Common
Stock to one investor for cash proceeds totaling $30,000. In connection with
the sale of the 300,000 shares of common stock, Advanced ID issued warrants
to acquire 300,000 shares of common stock at $0.30 per share for a period of
three years

On February 20, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On February 20, 2006, Advanced ID issued a total of 20,000 shares of Common
Stock to one investor for cash proceeds totaling $3,000. In connection with
the sale of the 20,000 shares of common stock, Advanced ID issued warrants to
acquire 20,000 shares of common stock at $0.30 per share for a period of
three years

On February 22, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On March 2, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On March 6, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years



<PAGE>24

On March 9, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On March 23, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On March 23, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
three years

On March 23, 2006, Advanced ID issued a total of 200,000 shares of Common
Stock to one investor for cash proceeds totaling $30,000. In connection with
the sale of the 200,000 shares of common stock, Advanced ID issued warrants
to acquire 200,000 shares of common stock at $0.30 per share for a period of
three years

On March 30, 2006, Advanced ID issued a total of 84,998 shares of Common
Stock to one investor for cash proceeds totaling $12,750. In connection with
the sale of the 84,998 shares of common stock, Advanced ID issued warrants to
acquire 84,998 shares of common stock at $0.30 per share for a period of
three years.

On March 31, 2006, Advanced ID Corporation issued a total of 15,000 shares of
common stock to Salmon Creek Public Relations Inc. for consulting services
rendered in connection with public relations and business development.

On April 3, 2006, Advanced ID issued a total of 500,000 shares of Common
Stock to our computer consultant to acquire all computer source code for all
programs developed to date; $150,000 was capitalized related to these shares.

On April 6, 2006, Advanced ID issued a total of 55,000 shares of Common Stock
to one investor for cash proceeds totaling $16,500 in connection with the
exercising of a portion of warrants acquired in 2005. The exercise period of
warrants when issued was three years.

On April 12, 2006, Advanced ID issued a total of 200,000 shares of Common
Stock to two investors for cash proceeds totaling $60,000. In connection with
the exercising of all warrants acquired in 2005. The exercise period of
warrants when issued was three years.

On April 18, 2006, Advanced ID issued a total of 66,667 shares of Common
Stock to one investor for cash proceeds totaling $20,000.  In connection with
the exercising of a portion of warrants acquired in 2005.  The exercise
period of warrants when issued was three years.

<PAGE>25

On April 18, 2006, Advanced ID issued a total of 41,667 shares of Common
Stock to one investor for cash proceeds totaling $12,500.  In connection with
the exercising of all warrants acquired in 2005.  The exercise period of
warrants when issued was three years.

On May 24, 2006, Advanced ID issued 50,000 shares of our Common Stock to a
director who exercised 50,000 options at $.23 per option for total proceeds
of $11,500.

On May 28, 2006, Advanced ID issued 513,158 shares of our Common Stock to a
director who exercised 250,000 warrants at $.25 per warrant for cash proceeds
of $62,500 and 263,158 shares in consideration for repayment of $86,000 in
debt.

On June 16, 2006, Advanced ID issued a total of 10,000 shares of Common Stock
to an employee as compensation for services performed.  Advanced ID recorded
a non-cash expense of $4,000 related to these shares.  The shares were valued
based at the average closing price for the month in which the board meeting
was held.

On April 24, 2006, Advanced ID issued a total of 1,200,000 options to the
directors that included Hubert Meier, Che Ki Li, Terry Fields, Seymour
Kazimirski, David Goldenberg and Dan Finch for services performed as such.

On April 24, 2006, Advanced ID issued a total of 400,000 options to three
employees and one consultant for services performed.

On June 16, 2006 Advanced ID Corporation cancelled 25,000 shares of stock
issued to one employee that was not awarded.

On July 17, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $23,000.

On July 1, 2006, Advanced ID issued a total of 50,000 shares of Common Stock
to one employee as compensation. Advanced ID recorded a non-cash expense of
$17,000 related to these shares.

On August 25, 2006, Advanced ID issued a total of 60,679 shares of Common
Stock to two investors for cash proceeds totaling $12,500.

On September 14, 2006, Advanced ID issued a total of 120,000 shares of Common
Stock to Spirit Holdings Inc. for consulting services rendered in connection
with financial public relations and business development. Advanced ID
recorded a non-cash expense of $33,600 related to these shares. The shares
were valued based on the closing price on the date they were awarded.

On December 29, 2006, Advanced ID issued a total of 20,000 shares of Common
Stock to one investor for cash proceeds totaling $6,000. In connection with
the exercising of all warrants acquired in 2005. The exercise period of
warrants when issued was three years.



<PAGE>26

On December 29, 2006, Advanced ID issued a total of 20,000 shares of Common
Stock to one investor for cash proceeds totaling $6,000. In connection with
the exercising a portion of warrants acquired in 2005. The exercise period of
warrants when issued was three years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $30,000. In connection with
the exercising a portion of warrants acquired in 2005. The exercise period of
warrants when issued was three years.

On December 29, 2006, Advanced ID issued a total of 125,000 shares of Common
Stock to one investor for cash proceeds totaling $25,000. In connection with
the sale of the 125,000 shares of common stock, Advanced ID issued warrants
to acquire 125,000 shares of common stock at $0.30 per share for a period of
two years

On December 29, 2006, Advanced ID issued a total of 200,000 shares of Common
Stock to one investor for cash proceeds totaling $40,000. In connection with
the sale of the 200,000 shares of common stock, Advanced ID issued warrants
to acquire 200,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $20,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $20,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $20,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $20,000. In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.




<PAGE>27

On December 29, 2006, Advanced ID issued a total of 75,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000. In connection with
the sale of the 75,000 shares of common stock, Advanced ID issued warrants to
acquire 75,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 83,334 shares of Common
Stock to one investor for cash proceeds totaling $12,500.10. In connection
with the sale of the 83,334 shares of common stock, Advanced ID issued
warrants to acquire 83,334 shares of common stock at $0.30 per share for a
period of two years.

On December 29, 2006, Advanced ID issued a total of 50,000 shares of Common
Stock to one investor for cash proceeds totaling $10,000. In connection with
the sale of the 50,000 shares of common stock, Advanced ID issued warrants to
acquire 50,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 50,000 shares of Common
Stock to one investor for cash proceeds totaling $10,000. In connection with
the sale of the 50,000 shares of common stock, Advanced ID issued warrants to
acquire 50,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 50,000 shares of Common
Stock to one investor for cash proceeds totaling $10,000. In connection with
the sale of the 50,000 shares of common stock, Advanced ID issued warrants to
acquire 50,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 60,000 shares of Common
Stock to one investor for cash proceeds totaling $12,000. In connection with
the sale of the 60,000 shares of common stock, Advanced ID issued warrants to
acquire 60,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 25,000 shares of Common
Stock to one investor for cash proceeds totaling $5,000. In connection with
the sale of the 25,000 shares of common stock, Advanced ID issued warrants to
acquire 25,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 25,000 shares of Common
Stock to one investor for cash proceeds totaling $5,000. In connection with
the sale of the 25,000 shares of common stock, Advanced ID issued warrants to
acquire 25,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 41,250 shares of Common
Stock to four investors for cash proceeds totaling $8,250. In connection with
the sale of the 41,250 shares of common stock, Advanced ID issued warrants to
acquire 41,250 shares of common stock at $0.30 per share for a period of two
years.



<PAGE>28

On December 29, 2006, Advanced ID issued a total of 20,000 shares of Common
Stock to one investor for cash proceeds totaling $3,000. In connection with
the sale of the 20,000 shares of common stock, Advanced ID issued warrants to
acquire 20,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 100,000 shares of Common
Stock to one investor for cash proceeds totaling $15,000.  In connection with
the sale of the 100,000 shares of common stock, Advanced ID issued warrants
to acquire 100,000 shares of common stock at $0.30 per share for a period of
two years.

On December 29, 2006, Advanced ID issued a total of 60,000 shares of Common
Stock to one investor for cash proceeds totaling $12,000.  In connection with
the sale of the 60,000 shares of common stock, Advanced ID issued warrants to
acquire 60,000 shares of common stock at $0.30 per share for a period of two
years.

On December 29, 2006, Advanced ID issued a total of 20,000 shares of Common
Stock to three investors for cash proceeds totaling $3,000.  In connection
with the sale of the 20,000 shares of common stock, Advanced ID issued
warrants to acquire 20,000 shares of common stock at $0.30 per share for a
period of two years.  The number of shares shown on the certificate was in
error and corrected in fiscal 2007.

Except as noted, all of the securities issued in 2006 were issued pursuant to
an exemption from registration under Section 4(2) of the Securities Act of
1934 to sophisticated investors.


ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Results of Operations for the Fiscal Years Ended December 31, 2006 and December
31, 2005.

The net loss of $2,211,303 for the year ended December 31, 2006 was larger by
$1,161,098 versus last year due to higher operating and sales expenses,
accrued non cash compensation to directors and a decrease in year to year
revenue of 13.5%.  The specific details of these changes are discussed below.

Revenues

Revenues of $889,089 during the year ended December 31, 2006 decreased by
$138,634 or 13.5% from last year.  The decrease in revenues for the year
ended December 31, 2006 was a result of reduced RFID tag sales to Goodyear
Tire and Rubber Company (due to price decreases, not volume decreases) and a
significant decrease in chip sales to the companion animal sector.
Increasingly strong competition in our companion animal business segment
resulted in the sales decline.  Pethealth Inc., a provider of insurance and
integrated health related information services to the North American
companion animal market, entered the market as a reseller of Allflex's RFID
microchips and readers.



<PAGE>29

Pethealth has used the sale of microchips to the companion animal industry to
secure additional clients in which to sell its pet insurance.

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.  Of the total revenues
earned of $889,089 for the year ended December 31, 2006, $679,793 or 76.5%
were from our companion animal/biological sciences division in Canada and
$209,296 or 23.5% were from our ultra high frequency (UHF) division with
sales throughout the world.

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.  However, there are
increasing signs of municipalities in Canada taking a close look at animal
cruelty issues regarding micro chipping.  Also, the market price for the ISO
chip is significantly lower than the FECAVA chip price of 2005.

Cost of Revenues

Cost of Revenues of $539,655 for the year ended December 31, 2006 decreased
by $42,516 or 7.3% over the previous year.  The decrease in Cost of Revenues
is attributed to a lower volume of products sold during the current year
ended December 31, 2006.  It is noted that revenues decreased by 13.5% and
cost of sales decreased by 7.3%.

Research and Development

Research and development expenses of $73,091 for the year ended December 31,
2006 decreased by $163,354 or 69% over last year's comparable period.  This
decrease is due to the fact that the engineering development of the UHF
livestock product development is complete and the ongoing reader development
is significantly complete.  Additionally, much of the business development
team in Chiang Mai, Thailand, formerly focused on research and development
activities, are now responsible for sales and marketing activities in Asia
and UHF RFID reader development and sales throughout the world.



<PAGE>30

Selling, General and Administrative

For the year ended December 31, 2006, selling, general and administrative
expenses of $2,467,705 were higher by $1,238,167 or 100.7% over last year
partially because of increased consulting fees of $172,480 as well as public
relations contract of $96,439.  Professional fees related to legal and audit
services increased by $32,463, director's costs fees increased by $29,150;
board meeting costs increased by $48,317 and press release costs increased by
$4,945.

Minority Share of Net Income

On July 1, 2005, Advanced ID acquired a 60% interest in AFG Asia Engineering
Co. Ltd.  The minority of net income of $13,943 represents an adjustment to
deduct the 40% non-owned interest in AFG Asia Engineering.

Interest Expense

During the year ended December 31, 2006, interest expense of $8,932 was lower
by $8,981 or 50.1% over last year.  Of the total of $8,932 in interest
expense during 2006, $6,527 is attributed to non-cash interest related a note
payable owing to a past director.

Liquidity and Capital Resources

As at December 31, 2006, we had cash and cash equivalents of $266,787.

During the year ended December 31, 2006, net cash used in operating
activities of $736,803 was higher by $119,761 or 19.4% as compared to the
year ended December 31, 2005.  Cash used by operating activities during 2005
resulted primarily from a smaller net loss during the reporting period and an
overall decrease in research and development expenses.

During the year ended December 31, 2006, net cash provided by investing
activities of $16,175 was lower by $26,872 or 251.2% over the prior year
ended December 31, 2005.  Cash used by investing activities resulted from our
purchase of office furniture and equipment, computer hardware, and software.
We have no commitments for future purchases of capital assets.

During the year ended December 31, 2006, net cash provided by financing
activities of $826,653 was higher by $593,269 or 254.2% as compared to the
previous year ended December 31, 2005.  During 2006, cash was provided
through private subscription agreements from investors for $577,000.

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 three to four
months and will not be

<PAGE>31

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 $50,000 to $60,000 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. On May 12, 2005, the SEC declared our Form SB-2 registration
statement effective whereby we registered common shares and warrants for the
purpose of raising capital.  No firm commitment arrangements were entered
into for future financing and no assurances can be given that adequate levels
of additional funding can be obtained on favorable terms, if at all.


ITEM 7. FINANCIAL STATEMENTS.

The response to this item is being submitted as a separate section of this
report beginning on page 43.


ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

There have been no disagreements between Advanced ID and our accountants as to
matters which require disclosure.


ITEM 8A.  CONTROLS AND PROCEDURES.

Under the supervision and with the participation of our management, including
our principal executive officer and principal financial officer, we conducted
an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-
15(e) under the Securities Exchange Act of 1934, as of the end of the period
covered by this report (the "Evaluation Date").  Based on this evaluation,
our principal executive officer and principal financial officer concluded as
of the Evaluation Date that our disclosure controls and procedures were
effective such that material information relating to Advanced ID Corporation,
including our consolidated subsidiaries, required to be included in our
Securities and Exchange Commission ("SEC") reports is recorded, processed,
summarized and reported within the time periods specified in SEC rules and
forms and was made known to them by others within Advanced ID and its
consolidated subsidiaries, particularly during the period when this report
was being prepared.



<PAGE>32

There were no significant changes in our internal control over financial
reporting that occurred during our last fiscal quarter (our fourth fiscal
quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.


ITEM 8B.  OTHER INFORMATION

None



<PAGE>33
PART III


ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND
CORPORATE GOVERANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Directors, Officers and Significant Employees

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:
<TABLE>
<CAPTION>
NAME AND ADDRESS            AGE          POSITIONS HELD           SINCE
  
                       <c>               <c>                  <c>
Dan Finch                   64       President & CEO, Director   September 2005
Sudeep Bhargava             50       Director of Operations      January 2007
Seymour Kazimirski,
  Honolulu, Hawaii          60       Interim CFO/Director        October 2002
                                       Chairman
Hubert Meier, Kowloon,
  Hong Kong                 60       Director                    February 2003
Terry Fields,
  Honolulu, Hawaii          64       Director                    July 2005
</TABLE>
Business Experience of Officers, Directors and Significant Employees

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

Sudeep Bhargava - Director of Operations, has over 27 years of management
experience in hospitality industry and in non-profit sector, and lately in
the pet industry at the Calgary Humane Society as the General Manager of
Finance & Operations for over eight years.  Sudeep Bhargava has a Bachelor of
Commerce degree from Agra University, Agra, India in 1977.  Later in 1994, he
earned the accounting designation of Certified Management Accountant (CMA) in
Regina, Saskatchewan, Canada.  Currently, Sudeep



<PAGE>34

Bhargava is a member of CMA Alberta, a professional association for
management accountants.  He has for many years contributed numerous hours of
his time to many volunteer organizations in Regina and Calgary and continues
to do so in Calgary.

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

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

Terry Fields - Director.  Mr. Fields practiced law in California for over
thirty-three years, initially in litigation, but ultimately concentrating in
corporate and business law.  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.

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.



<PAGE>35

Section 16(a) Beneficial Ownership Reporting Compliance

To Advanced ID's knowledge, no director, officer or beneficial owner of more
than ten percent of any class of equity securities of Advanced ID, other than
Dan Finch, Hubert Meier and Terry Fields, failed to file on a timely basis
reports required by Section 16(a) of the Exchange Act during 2006.

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

Advanced ID 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 criminal,
civil, administrative or investigative, by reason of the fact that he is or
was a director or officer of Nevada, or served any other enterprise as
director, officer or employee at the request of Advanced ID.  The board of
directors, in its discretion, shall have the power on behalf of Advanced ID
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 Advanced ID.

Insofar as indemnification for liabilities arising under the Act may be
permitted to directors, officers and controlling persons of Advanced ID,
Advanced ID 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
Advanced ID of expenses incurred or paid by a director, officer or
controlling person of Advanced ID 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, Advanced ID 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.



<PAGE>36

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 10.  EXECUTIVE COMPENSATION.

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

On September 15, 2005, Advanced ID entered into an employment agreement with
Dan Finch, as Advanced ID's CEO and President for an annual salary of
$94,200.  In addition to his salary, Mr. Finch will receive a one-time
payment of $5,000 for moving expenses and has an opportunity of earning up to
1,000,000 options when pre-determined increases in revenues are attained.
<TABLE>
<CAPTION>
                                                                    Long Term Compensation
                       Annual Compensation                            Awards               Payouts
 (a)                    (b)     (c)            (d)      (e)      (f)     (g)      (h)            (i)
                                                       Other                                    All
Name                                                   Annual Restricted         LTIP           Other
and                                                    Compen-   Stock  Options/ Pay-          Compen-
Principal                       Salary        Bonus    sation    Awards  SARs    Outs          sation
Position                Year      ($)          ($)       ($)       ($)   ($)     ($)             ($)

                     <c>       <c>          <c>       <c>       <c>    <c>    <c>             <c>

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

Sudeep
 Operations Director     2006      n/a          -         -         -      -      -               -
                         2005      n/a          -         -         -      -      -               -
                         2004      n/a          -         -         -      -      -               -
</TABLE>

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




<PAGE>37

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS.

The following table sets forth, as of March 31, 2007, the number and
percentage of outstanding shares of Advanced ID common stock owned by (i)
each person known to us to beneficially own more than 5% of its outstanding
common stock, (ii) each director, (iii) each named executive officer and
significant employee, and (iv) all officers and directors as a group.

(i) Persons Beneficially Owning More Than 5% of Outstanding Common Stock
<TABLE>
<CAPTION>
Title of Class    Name of Beneficial Owner        Common Stock     Percentage of
                                              Beneficially Owned   Class Owned

                          <c>                      <c>             <c>
Class A Common        Seymour Kazimirski           3,022,352         5.7%
Class A Common       Heritage Ventures Ltd.       11,413,886        21.6%
</TABLE>
Heritage Ventures Ltd. is a widely held public company that was de-listed
from trading on the Alberta Stock Exchange, predecessor to the TSX Venture
Exchange, effective May 7, 1999.  The largest shareholder that we are aware
of controls approximately 5.3% of the outstanding shares in Heritage
Ventures.

(ii) Directors of Advanced ID
<TABLE>
Title of Class    Name of Beneficial Owner         Common Stock     Percentage of
                                                Beneficially Owned   Class Owned

                          <c>                      <c>             <c>
Class A Common    Seymour Kazimirski               3,022,352          5.7%
Class A Common    Hubert Meier                       800,000         1.52%
Class A Common    Terry Fields                       180,712         0.34%
Class A Common    Dan Finch                           20,000         <1.0%
</TABLE>
(iii) Officers and Significant Employees of Advanced ID
<TABLE>
Title of Class    Name of Beneficial Owner        Common Stock     Percentage of
                                              Beneficially Owned   Class Owned

                          <c>                      <c>             <c>
Class A Common     Dan Finch                          20,000          <1.0%
Class A Common     Sudeep Bhargava                         0           0.0%
</TABLE>

(iv) Directors and Officers of Advanced ID as a Group
<TABLE>
Title of Class    Name of Beneficial Owner        Common Stock     Percentage of
                                              Beneficially Owned   Class Owned

                          <c>                      <c>             <c>
Class A Common     Directors/Officers             4,148,921           7.9%
</TABLE>
Based upon 52,538,914 issued and outstanding as of March 31, 2007.


<PAGE>38

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE.

Heritage Ventures Ltd.
----------------------
Heritage is a venture capital company specializing in assisting software and
technology companies.  Upon entering into a reverse merger transaction
between AVID Canada Corporation and USA Sunrise Beverages, Inc., Heritage
sold its ownership in AVID Canada Corporation in return for 28,000,000 common
shares in USA Sunrise Beverages, Inc. whose name was changed to Advanced ID
Corporation effective November 15, 2002.  Of the 28,000,000 shares received
by Heritage, a portion of these shares was paid to certain creditors of AVID
in exchange for approximately $703,581 in debt.

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

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

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



<PAGE>39

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

Director Independence.

Advanced ID's board of directors consists of Dan Finch, Seymour Kazimirski,
Hubert Meier and Terry Fields.  Dan Finch and Seymour Kazimirski are not
independent as such term is defined by a national securities exchange or an
inter-dealer quotation system.  During the fiscal year ended December 31,
2006, there were no transactions with related persons other than as described
in the section above entitled "Item 10.  Executive Compensation".


ITEM 13.  EXHIBITS.

Exhibits

(5)  Articles of Incorporation, By-Laws and Stock Option Plan.
       (i)   Articles of Incorporation(1)
      (ii)   By-Laws(1)
     (iii)   Stock Option and Incentive Plan revised December 16,
               2004(8)
      (iv)   Change in Directors filed July 27, 2005(8)
       (v)   Resignation of Chief Financial Officer files August 18,
               2005(8)

(12)   Material Contracts.
       (i)   Employment Agreement with Sudeep Bhargava dated December
               26, 2006(10)
      (ii)   Employment Agreement with Barry Bennett dated November 15,
               2005(8)
     (iii)   Employment Agreement with Dan Finch dated September 15,
               2005(8)
      (iv)   Agreement and Plan of Merger between AIDO Acquisition,
               Inc., Advanced ID and Universal Pet Care, Inc.(4)
       (v)   Authorized Distributor Agreement with Trace Australia Pty
               Ltd.(5)
      (vi)   Consultant Agreement with Hubert Meier Consultancy Co.
               dated May 21, 2002.(5)
     (vii)   Convertible Debenture Purchase Agreement between Universal
               Pet Care, Inc. and HEM Mutual Assurance LLC.(4)
    (viii)   $995,500 1% Convertible Debenture due January 20, 2009,
               originally issued by Universal Pet Care, Inc., a Hawaii
               corporation to HEM Mutual Assurance LLC on January 20,
               2004.(4)



<PAGE>40

      (ix)   $4,500 1% Convertible Debenture due January 20, 2009,
               originally issued by Universal Pet Care, Inc., a Hawaii
               corporation to HEM Mutual Assurance LLC on January 20,
               2004.(4)
       (x)   Strategic Partnership Agreement with Applied Wireless
               Identifications Group, Inc.(6)
      (xi)   Strategic Partnership Agreement with KSW Microtec AG.(6)
     (xii)   Strategic Partnership Agreement with Guide-Trend Co.,
               Ltd.(6)
    (xiii)   Consulting Agreement with Gottfried Auer dated April 15,
               2003.(7)

(11)  Statement of Computation of Per Share Earnings.(2)

      This Computation appears in the Financial Statements.

(21)  Subsidiaries of the Registrant.

        (i)   AVID Canada Corporation, an Alberta private company
               incorporated on November 26, 1993 is wholly owned by the
               registrant.
       (ii)   Universal Pet Care, Inc., a Hawaii private company
               incorporated on August 25, 1994 is wholly owned by the
               registrant.

(31)  CEO and CFO Certifications. 2

(32)  CEO and CFO Certifications Pursuant to Sarbanes-Oxley Act.(2)

(1)  Filed previously on Form 10-KSB dated April 28, 1999.
(2)  Filed herewith.
(3)  Filed previously on Form 10-QSB dated May 13, 2004.
(4)  Filed previously on Form 8-K dated February 10, 2004.
(5)  Filed previously on Form SB-2/Amendment 1 dated September 14,
       2004.
(6)  Filed previously on Form SB-2/Amendment 2 dated December 1, 2004.
(7)  Filed previously on Form SB-2/Amendment 3 dated January 24, 2005.
(8)  Filed previously on Form 10-QSB dated November 11, 2005
(9)  Filed previously on Form 10-KSB dated March, 2004
(10) Filed previously on Form 10-KSB dated March, 2006


ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees. We incurred aggregate fees and expenses of approximately $41,470
and $26,525 from our principal accountant for the 2006 and 2005 fiscal years
respectively.  Such fees included work completed for our annual audit and for
the review of our financial statements included in our Forms 10-QSB.



<PAGE>41

Tax Fees.   We incurred aggregate tax fees and expenses of $511 and $1,200
from our accountant for the 2006 and 2005 fiscal years respectively, for
professional services rendered for tax compliance, tax advice, and tax
planning.

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 2006 and 2005 were approved by the board of directors
pursuant to its policies and procedures.  We intend to continue using LLB &
Associates Ltd., LLP solely for audit and audit-related services.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

Advanced ID Corporation
(Registrant)

By: /s/ Dan Finch                         Dated: April 17, 2007
    ----------------
    Dan Finch
Chief Executive Officer and President
(As a duly authorized officer on behalf of the Registrant and as Principal
Executive Officer)

By: /s/ Seymour Kazimirski                Dated: April 17, 2007
Interim Chief Financial Officier
(As a duly authorized officer on behalf of the Registrant and as Interim
Principal Financial and Accounting Officer)

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/ Seymour Kazimirski              By:  /s/Terry Fields
     ----------------------                   ---------------------
    Seymour Kazimirski, Director              Terry Fields, Director
    April 17, 2007                            April 17, 2007

By: /s/ Dan Finch                        By:  /s/Hubert Meier
    -------------                             ---------------------
    Dan Finch, Director                       Hubert Meier
    April 17, 2007                            April 17, 2007









-


'
<PAGE>42

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

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

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

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

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



<PAGE>43

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

LBB & Associates, Ltd., LLP
Houston, Texas

April 6, 2007



<PAGE>44
ADVANCED ID CORPORATION
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2006


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

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

LIABILITIES AND
STOCKHOLDERS' EQUITY

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

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

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

<PAGE>45

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

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



<PAGE>46

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


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

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

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

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

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



<PAGE>47

ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005
<TABLE>
<CAPTION>
	                                                    Additional
                                    Common Stock     Paid -in    Subscription
                                  Shares    Amounts   Capital     Received
                                  ----------------  ----------   -----------

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

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

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

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

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



<PAGE>48
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005
(Continued)
<TABLE>
                                         Accumulated
                                            Other                       Total
                                        Comprehensive    Accumulated  Stockholders'
	                                            Income         Deficit       Equity
                                        -------------    -----------  -------------

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

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

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


<PAGE>49
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

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

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

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


<PAGE>50

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

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

See accompanying summary of accounting policies
and notes to financial statements



<PAGE>51
   ADVANCED ID CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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


   NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

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



<PAGE>52

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

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

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

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

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

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

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

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

Research and development costs are expensed as incurred.

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

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

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

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

<PAGE>53

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

Inventory
---------

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

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

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

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

Goodwill
--------

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



<PAGE>54

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

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

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

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

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

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

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

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

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

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

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

<PAGE>55

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

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

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

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

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

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

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

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

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



<PAGE>56

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

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

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

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

<PAGE>57

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


NOTE 3 - FINANCIAL CONDITION AND GOING CONCERN

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

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

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


NOTE 4 - ACQUISITION OF AFG ASIA ENGINEERING

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



<PAGE>58

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

The fair value of net assets acquired:

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


NOTE 5 - PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

                                                             2006
                                                          ----------

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

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


NOTE 6 - INCOME TAXES

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



<PAGE>59

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

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

NOTE 7 - COMMON STOCK

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

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

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

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

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

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



<PAGE>60

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


NOTE 8 - STOCK OPTIONS AND WARRANTS

Options:

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

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

The following table summarizes stock option activity:

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

Warrants:

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



<PAGE>61

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

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

NOTE 9 - RELATED PARTY TRANSACTIONS

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

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

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

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

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

<PAGE>62

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

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


NOTE 10 - COMMITMENTS

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

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

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


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

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




<PAGE>63

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


NOTE 11 - CONCENTRATIONS OF CREDIT RISK

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

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

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


NOTE 12 - SUBSEQUENT EVENTS

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

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







10


1



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