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

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, 2007

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period from _____ to _____

Commission File Number 000-24965

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

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

        4500 - 5th Street NE
           #200, Bay 6
        Calgary, Alberta, Canada                         T2E 7C3
       (Address of principal                          (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
or information statements incorporated by reference in Part III of this
Form 10-KSB or any amendment to Form 10-KSB.
Yes [x_]  No [ ]__

<PAGE>2

Total revenues for our fiscal year ended December 31, 2007 were
$1,010,003.

As of March 24, 2008 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 $13,561,920.  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.

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEEDING FIVE YEARS

Check whether the issuer has filed all documents and reports required
to be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent
to the distribution of securities under a plan confirmed by a court.
Yes [x]  No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:

As of March 24, 2008 there were 57,355,986 shares of common stock
issued and outstanding.



<PAGE>3
Table of Contents

ITEM 1.  DESCRIPTION OF BUSINESS                            5
  Overview                                                  5
  Products and Services Overview                            6
    Companion Animal/Biological Sciences Products
      and Services                                          6
    Livestock Animal Products and Services                  7
  Business Model                                            9
  Intellectual Property                                     9
  Target Market                                            10
  Marketing and Sales Strategy                             10
    Sales and Distribution Channels                        10
    Pricing Strategy                                       11
    Recent Developments                                    11
  Competition                                              12
  Competitive Advantages                                   13
  Risk Factors That May Affect Future Results              14
  Trademarks and Patents                                   19
  Employees                                                19
  Reports to Security Holders                              20

ITEM 2.  DESCRIPTION OF PROPERTY                           20

ITEM 3. LEGAL PROCEEDINGS                                  20

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY
         HOLDERS                                           20

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
        MATTERS                                            21
  Market Information                                       21
  Holders                                                  21
  Dividends                                                21
  Securities Authorized for Issuance Under Equity
    Compensation Plans                                     21
  Recent Sales of Unregistered Securities                  22
    (i)  Fiscal 2006 Transactions                          22
    (ii) Fiscal 2007 Transactions                          22
   (iii) Fiscal 2008 Transactions                          32

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION                                         23
  Results of Operations for the Fiscal Years Ended December
    31, 2007 and December 31, 2006                         23
    Revenues                                               23
    Cost of Revenues                                       23
    Research and Development                               24
    Selling, General and Administrative                    24
    Insurance                                              24
    Minority Share of Net Income                           24
    Interest Expense                                       25

<PAGE>4

    Liquidity and Capital Resources                        25

ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA       26

ITEM 8.  CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS
         AND FINANCIAL DISCLOSURE                          26

ITEM 8A.  CONTROLS AND PROCEDURES                          26

ITEM 8B.  OTHER INFORMATION                                28

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL
         PERSONS AND CORPORATION GOVERANCE; COMPLIANCE
         WITH SECTION 16(a) OF THE EXCHANGE ACT            28

ITEM 10.  EXECUTIVE COMPENSATION                           31

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
          AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS   32
  (i) Persons Beneficially Owning More than 5% of
      Outstanding Common Stock                             32
 (ii) Directors of Advanced ID Corporation                 32
(iii) Officers and Significant Employees of Advanced ID
        Corporation                                        32
 (iv) Directors and Officers of Advanced ID Corporation
        as a Group                                         33

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
       AND DIRECTOR INDEPENDENCE                           44
  Heritage Ventures Ltd.                                   44
  Seymour Kazimirski                                       44
  Hubert Meier                                             44
  Terry Fields                                             44
  Director Independence                                    45

ITEM 13.  EXHIBITS                                         34

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES           35

SIGNATURES                                                 37

Index to Financial Statements                              38
Report of Independent Registered Public Accounting Firm    39
Consolidated Balance Sheet                                 40
Consolidated Statements of Operations                      41
Consolidated Statement of Stockholders' Equity
  (Deficit)                                                42
Consolidated Statements of Cash Flows                      44
Notes to Consolidated Financial Statements                 46

<PAGE>5

PART I

ITEM 1.  DESCRIPTION OF BUSINESS

Overview

On October 17, 2002 AVID Canada Corporation ("AVID Canada") 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 wholly-owned subsidiaries; Pneu-Logic Corporation
Limited ("PL") located in U.K., AVID Canada Corporation and Universal
Pet Care.  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, 2007 Advanced ID decided to divest its 60% interest in AFG
Asia Engineering Co. Ltd. of Chiang Mai, Thailand.

On July 1, 2007 Advanced ID acquired all operating assets of Pneu-Logic
Limited of England in order to align itself with addressing the tire
maintenance solution for fleet owners across the world.  Its product
line has been successful in the EU (European) market.

Advanced ID develops, manufactures and sells, either directly or
through distributors, microchip identification technologies referred to
as radio frequency identification microchips ("RFID") 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.



<PAGE>6

RFID allows for the positive identification and location tracking of
animals or objects that are embedded or tagged with RFID microchips.
We currently supply over 3,000 organizations such as animal shelters,
veterinarians, breeders, government agencies, universities, zoos,
research labs and fisheries with RFID devices for companion animals,
exotics, equines, bovines, llamas, alpacas, ostriches, aquatic species,
reptiles, migratory and endangered species.  We have implanted
microchips in over 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.  Our
marketing efforts in the livestock area have been reduced because no
country's government has either mandated or approved for use our UHF
RFID technology

Products and Services Overview

Companion Animal/Biological Sciences, Inanimate Products and Services

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

   RFID Tags: Our RFID Tags purchased from American Veterinary
Identification Devices and SOKYMAT and consist of an integrated circuit
or microchip utilizing a low frequency of 125 KHz or 134 KHz.  The
microchip is sealed in glass, compatible with the animal's body,
containing a programmed identification number which fits inside a

<PAGE>7

hypodermic needle, and can be injected under the skin of an animal.
Since these RFID Tags are passive, meaning they do not require a
battery, a reader temporarily energizes the microchip allowing it to
transmit its data to the reader with error-free reliability.  Under
normal conditions, the RFID Tags can last in excess of 20 to 25 years
and generally well beyond the life of any companion animal.  The read
range for low frequency tags is approximately three to seven inches.

   RFID Readers: We offer a variety of hand-held readers that read both
our microchips and our competitors' microchips.  Our reader formats
include International Standards Organization ("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.


<PAGE>8

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

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

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

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

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

   Inanimate Products and Services: In August 2005 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

<PAGE>9

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

Business Model

We are planning to enhance our current revenue streams by:

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

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

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

   -   Expanding RFID technology into industrial applications
such as the energy and manufacturing industries.  The knowledge
and profile gained through the relationship with Goodyear Rubber
and Tire Company is one example.  Expand the tire management
market to include: tire manufacturers, resellers, fleet owners,
retail, retreaders, system integrators, database managers.

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

Intellectual Property

Our intellectual property is comprised of our radio frequency
identification ("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



<PAGE>10

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.

   -   The global RFID market was several billion dollars, US in 2006.

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.

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

<PAGE>11

across Canada.  Currently, we have relationships with the following
distribution agencies; Associate Vet Purchasing, Western Drug
Distribution Center, Vet Purchasing, Canadian Kennel Club and Centre de
Distribution de Medicaments Veterinaires ("CDMV").  There is no
contractual agreement or volume commitment in place with any of these
parties. During fiscal 2006, we had two customers, Veterinary
Purchasing and Goodyear Tire and Rubber Company, that each accounted
for more than 10% of our revenues.

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

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

We will sell our Pneu-Logic product line both direct and through 3rd
party resellers.  The market is global.

Pricing Strategy

We plan to be a price-performance leader with all of our products and
services.  This is intended to assist our efforts to gain market
acceptance and secure market share in the companion pet recovery
industry throughout the world, and further allow us to continue to both
increase the market size and our market share in the tire management
market.  It is our goal to keep our expenditures small to ensure we
maintain low product price points to discourage other competitors from
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 for its new ISO
chip made by SOKYMAT.  With the significant cost savings associated
with this new ISO standard chip, Advanced ID has reduced our prices in
Canada and other countries and sales are increasing.  Advanced ID has
developed a new LF reader for companion animals that can be sold in
several countries with language specific readout capabilities.

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



<PAGE>12

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.  With Advanced
ID's RFID tire management product line and the Pneu-Logic tools, the
market is blanketed better then with any other company.

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

UHF RFID Reader Development - 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.  Advanced ID 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.  Advanced ID in 2007 completed the development of new reader PR
500 low price, low range but practical for inventory management.  The
new reader was sought and installed at a new book store in Portugal,
Spain.  Advanced ID in 2008 will be marketing the new reader into
various industries.

Competition

Our largest competitor in the companion animal and biological sciences
market in Canada is Pethealth Inc. who is estimated to have
approximately 45% market share compared with our estimated 40% market
share.  During 2004, Anitech Enterprises Inc. ceased operations and no
longer remains a competitor.  The remaining 15% market share is spread
among two companies which includes Microchips 4 Solutions and EIDAP.

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.



<PAGE>13

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

Allflex USA Inc. - Allflex claims to be the world's leading supplier of
livestock identification and management systems. Its products include
visual identification ear tags and applicators, electronic
identification systems and a variety of precision instruments. Allflex
works closely with official and commercial organizations around the
world to develop reliable and efficient systems for collecting and
transferring information on animal identification, movement and
performance.  Allflex has manufacturing and technology subsidiaries in
USA, Canada, Europe, Australia, New Zealand, Brazil and China.  Allflex
products are distributed in 80 countries worldwide.

Applied Digital Solutions, Inc. - Applied Digital, through its
subsidiary Destron Fearing, has been in the animal identification
business since 1945. For over 50 years, Destron Fearing has developed,
manufactured and marketed a broad range of individual animal
identification products. As the animal identification industry
expanded, the Company culminated a merger of Fearing Manufacturing and
Destron/IDI in November 1993. Their products range from visual ear tags
attached to livestock, to electronic microchips implanted under the
skin of pets, fish, laboratory animals and livestock.

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

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

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.

<PAGE>14

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

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

It is our belief that the adoption of any livestock identification
method will require some form of mandatory requirement either through
government legislation or import regulations by those countries that
import meat and livestock. Currently, Canada has enacted legislation
for mandatory identification of cattle and the European Union has
enacted legislation for mandatory identification of all livestock.
Other countries such as the United States, Australia, New Zealand,
Argentina, Brazil, Taiwan and Thailand are considering similar
requirements.

Our research and development activities over the last two years have
included researching, designing and developing RFID tags and readers
for general supply chain applications including the tire management
industry.

Risk 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 $9,161,789 as of December 31, 2007.  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.

<PAGE>15

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
64,637 shares per day over the last twelve months ended December 2007
ranging from an average low of 32,613 shares per day in the month of
June 2006 to an average high of 155,557 shares per day during the month
of April 2007.  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.

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

(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.

<PAGE>16

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 16.47% of our
outstanding stock.

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.


<PAGE>17

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.

In 2006, Advanced ID reached an agreement with Shenzhen FTRD to
distribute both LF and UHF RFID products in China.  In 2007 Advanced ID
signed distribution agreements covering tire management with Arsenault
Associates and Myers Industrial in the United States and the company
signed tire related distribution agreements with Malaysia's Kit Loong,
Germany's REMA Tiptop and Brazil's Budini.  The five agreements signed
in 2007 are expected to provide a global distribution capability for
the company's tire related product line.  Lastly the company inked in
2007 a distribution agreement with Creativesystems in Portugal to sell
Advanced ID products in the general supply chain markets.

(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 acquisition of Pneu-Logic
we are further exposed to the currency fluctuations between Euros,
British sterling pounds and U.S. dollars. With the majority of expenses
expected to be in Canadian dollars, we will be exposed to fluctuations
in foreign exchange rates from both a transactional and translational



<PAGE>18

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. Currently, there are no general
contractual requirements as the terms are negotiated and specified for
each purchase order based on volumes purchased.



<PAGE>19

(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
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.

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

At the end of 2007, Advanced ID has five full-time employees, six
contract employees and one part-time employee.  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 Corporation 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.  Advanced ID divested its interest in Advanced ID Asia
Engineering Co. Ltd in 2007 but continues to outsource certain tasks to
Advanced ID Asia Engineering Co. Ltd.

In 2007, Advanced ID acquired Pneu-Logic in the UK.  The subsidiary has
three employees, including in the above, with contract assistance for
accounting, manufacturing and product development.



<PAGE>20

Reports to Security Holders

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

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


ITEM 2.  DESCRIPTION OF PROPERTY.

We currently have an agreement to lease office premises until August
31, 2012.  We have committed to leasing approximately 1,920 rentable
square feet and are obligated to pay basic rent and all operating
costs, including utilities and taxes for a total cost of $2,800 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.  The property is located
at 4500 5the Street NE, #200 Bay 6, Calgary, Alberta T2E 7C3 Canada.


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>21
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 2007               Fiscal 2006
                           High       Low            High       Low
                           ----       ---            ----       ---
First Quarter            $0.46        $0.22         $0.43      $0.12
Second Quarter           $0.49        $0.23         $1.40      $0.28
Third Quarter            $0.36        $0.22         $0.38      $0.21
Fourth Quarter           $0.28        $0.15         $0.32      $0.21

Holders

As of March 24, 2008, the approximate number of shareholders of common
stock of Advanced ID was 1,819.

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

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

Equity
Compensation
Plans Not Approved
by Security Holders           11,939,583                       $0.361                         n/a
                              ----------                       ------                      ------
Total                         11,939,583                                                      n/a
</TABLE>
<PAGE>22

Recent Sales of Unregistered Securities

(i) Fiscal 2006 Transactions

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).

(ii) Fiscal 2007 Transactions

During 2007, Advanced ID issued a total of 5,098,394 shares of common
stock; 965,000 shares of common stock were issued for cash proceeds of
$254,000 and collected $20,000 of a subscription receivable from the
prior year, 811,667 shares of common stock were issued on the exercise
of warrants for $213,500 of cash and a note receivable for $30,000,
1,170,355 shares of common stock were issued as settlement of debt
valued at $361,941, 1,000,000 shares of common stock were issued on the
acquisition of PL valued at $318,810 and 1,151,372 shares of common
stock were issued for services rendered valued at $283,440.  We also
wrote off a note receivable that we had accepted in 2007 in exchange
for the exercise of 100,000 common stock warrants valued at $30,000 to
one investor due to his inability to pay.  These shares are currently
still outstanding.

(iii) Fiscal 2008 Transactions

On February 27, 2008 Advanced ID issued a total of 130,000 shares of
Common Stock to one investor for cash proceeds totaling $15,600.

On February 27, 2008 Advanced ID issued a total of 1,363,166 shares of
Common Stock to several investors for cash proceeds totaling $163,580.
In connection with the sale of the 1,363,166 shares of common stock,
Advanced ID issued warrants to acquire 1,363,166 shares of common stock
at $0.30 per share for a period of two years.

On February 27, 2008 Advanced ID issued a total of 1,500,000 shares of
Common Stock to several investors for cash proceeds totaling $150,000.
In connection with the sale of the 1,500,000 shares of common stock,
Advanced ID issued warrants to acquire 1,500,000 shares of common stock
at $0.30 per share for a period of two years.



<PAGE>23

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

Results of Operations for the Fiscal Years Ended December 31, 2007 and
December 31, 2006.

The net loss of $2,721,983 for the year ended December 31, 2007 was
larger by $510,680 versus last year due to higher operating and sales
expenses, accrued non cash compensation to directors.

Revenues

Revenues of $1,010,003 during the year ended December 31, 2007
increased by $212,012 or 26.57% from last year.  The increase in
revenues for the year ended December 31, 2007 was a result of increased
RFID tag sales to Goodyear Tire and Rubber Company, stable chip sales
to the companion animal sector, increased UHF RFID readers and the
addition of Pneu-Logic product sales for six months.

On November 1, 2006, National Companion Animal Coalition's (NCAC)
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
$1,010,003 for the year ended December 31, 2007, $710,726 or 70.37%
were from our companion animal/biological sciences division in Canada
and $229,277 or 29.63% were from our ultra high frequency (UHF) sales
throughout the world and the six month revenue from our Pneu-Logic
division.

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

Cost of Revenues

Cost of revenues of $525,127 for the year ended December 31, 2007
increased by $148,371 or 39.38% over the previous year.  The increase
in cost of revenues is attributed to a higher volume of products sold
during the current year ended December 31, 2007. It is noted that
revenues increased by 26.57% and cost of sales increased by 39.38%.

<PAGE>24

Research and Development

Research and development expenses of $265,787 for the year ended
December 31, 2007 increased by $25,412 or 10.57% over last year's
comparable period.  This increase is due to the fact that the
engineering development of the new reader line is continuing and the
Pneu-Logic product development is ongoing.

Selling, General and Administrative

For the year ended December 31, 2007, selling, general and
administrative expenses of $2,316,173 were lower by 3.67% over last
year due to prudent control over the expenses.  This, however, includes
new costs related to the newly acquired subsidiary, Pneu-Logic since
July 1,2007, increased salary costs with the addition of a new vice
president and COO as well as a new investor relations contract and
lobbying efforts of $54,475. Travel costs increased to $104,593;
professional fees related to legal and audit services increased to
$223,466, director's costs fees increased by $1,847; Employee non-cash
compensation costs decreased by $117,662.

Our consultants include Seymour Kazimirski, Hubert Meier, both of whom
also serve as directors, Gottfried Auer, Saran Yimsrijalernkit, and
Keith Taite.  For Messrs. Kazimirski, Meier, please refer to the
section titled "Business Experience of Officers and Directors" for
their qualifications.  Messrs. Auer and Yimsrijalernkit of Advanced ID
Asia Engineering AFG Co., Ltd. are professional engineers who have led
the design, development, testing and implementation of our RFID
livestock tags and readers.  Mr. Taite is a professional engineer
specializing in software development for Honeywell Inc., a diversified
technology and manufacturing leader of aerospace products and services;
control technologies for buildings, homes and industry; automotive
products; power generation systems; specialty chemicals; fibers;
plastics and advanced materials.  Mr. Taite has led the development of
our software system to manage data from our RFID readers to computers.

Insurance

During 2007, insurance costs increased to $6,076 or by 394% as a result
of market competition.

Minority Share of Net Income

On July 1, 2007, Advanced ID divested its 60% interest in AFG Asia
Engineering Co. Ltd.



<PAGE>25

Interest Income

During the year ended December 31, 2007, interest income of $1,734 was
higher by $10,049 or 120.85% over last year.  Of the total of $1,734 in
interest income during 2007, $773 is attributed to interest paid for a
Note Payable owed to one of our directors.

As at December 31, 2007, we had only one remaining note payable
outstanding which accrues interest at 10% per annum, payable monthly.

Liquidity and Capital Resources

As at December 31, 2007, we had cash and cash equivalents of $61,557.

During the year ended December 31, 2007, net cash used in operating
activities of $738,683 was higher by $1,881 or 0.25% as compared to the
year ended December 31, 2006.

During the year ended December 31, 2007, net cash provided by financing
activities of $678,088 was lower by $148,565 or 17.97% as compared to
the previous year ended December 31, 2006.  During 2007, cash has been
provided through, completed subscription agreements from investors for
$254,000 and collection of $20,000 of subscription receivable from
prior year.

Currently in the global livestock industry, countries such as the
United States, Canada, Taiwan, Australia, New Zealand, Thailand,
Argentina, Brazil and the countries of the European Union are
considering or have expressed their intent to make the identification
of livestock mandatory.  The primary reasons for this action are to
employ a system to improve the speed and accuracy of tracing livestock
to minimize or eliminate the impact of food safety issues from human
consumption of meat products, and because importing regions such as the
European Union, Asia and North America are demanding that an
identification and trace back system is in place from the countries in
which they import meat products and livestock from.  This trend is
reasonably likely to have a material positive impact on our long term
revenues, results of operations and liquidity.

Our internal and external sources of liquidity have included cash
generated from the exercise of options and warrants, proceeds raised
from subscription agreements and private placements, and advances from
related parties.  We are currently not aware of any trends that are
reasonably likely to have a material impact on our liquidity.  Our
current cash balance is estimated to be sufficient to fund our current
operations over the next two to three months and will not be sufficient
to fund our long term needs.  The basis that our cash balance is
expected to be sufficient to fund our current operations over the next
seven to ten months is based on our current net cash usage rate (cash
used offset by cash received) which we estimate to be $40,000 to
$50,000 per month.  It is our intent to secure a market share in the

<PAGE>26

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


ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial Statements

The response to this item is being submitted as a separate section of
this report beginning on page 38.


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

None


ITEM 8A.  CONTROLS AND PROCEDURES

Changes in Internal Controls

During the year ended December 31, 2007, there were no changes in our
internal controls over financial reporting (as defined in Rule 13a-
15(f) and 15d-15(f) under the Exchange Act) that have materially
affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management,
including our chief executive officer and chief financial officer, we
conducted an evaluation of our disclosure controls and procedures, as
such term is defined under Rule 13a-15(e) and Rule 15d-15(e)
promulgated under the Securities Exchange Act of 1934, as amended, as
of December 31, 2007.  Based on this evaluation, our chief executive
officer and chief principal financial officers have concluded such
controls and procedures to be effective as of December 31, 2007 to
ensure that information required to be disclosed by the issuer in the
reports that it files or submits under the Act is recorded, processed,
summarized and reported, within the time periods specified in the
Commission's rules and forms and to ensure that information required to
be disclosed by an issuer in the reports that it files or submits under
the Act is accumulated and communicated to the issuer's management,

<PAGE>27

including its principal executive and principal financial officers, or
persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

Management's Report on Internal Control over Financial Reporting

Management of Advanced ID is responsible for establishing and
maintaining adequate internal control over financial reporting as
derived in Rule 13a-15(f) under the Securities Exchange Act of 1934.
We have assessed the effectiveness of those internal controls as of
December 31, 2007, using the Committee of Sponsoring Organizations of
the Treadway Commission ("COSO") Internal Control Integrated Framework
as a basis for our assessment.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.  Projections of any
evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.  All internal control systems, no matter how well
designed, have inherent limitations.  Therefore, even those systems
determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.

A material weakness in internal controls is a deficiency in internal
control, or combination of control deficiencies, that adversely affects
Advanced ID's ability to initiate, authorize, record, process, or
report external financial data reliably in accordance with accounting
principles generally accepted in the United States of America such that
there is more than a remote likelihood that a material misstatement of
the Corporation's annual or interim financial statements that is more
than inconsequential will not be prevented or detected.  In the course
of making our assessment of the effectiveness of internal controls over
financial reporting, we identified material weaknesses in our internal
control over financial reporting.  However, we are delinquent in our
Form 8-K requirements relating to the acquisition of Pneu-Logic due to
our inability to timely locate a PCAOB approved accountant in the
United Kingdom to complete the required audit work.  Additionally, our
lack of human resources compounded by lack of financial resources has
led to a weakness in our ability to timely complete the reports
required under the Exchange Act of 1934.  Therefore, it is our
conclusion that Advanced ID's internal controls over financial
reporting were not effective as of December 31, 2007.

This annual report does not include an attestation report of the
Corporation's registered public accounting firm regarding internal
control over financial reporting.  Management's report was not subject
to attestation by Advanced ID's registered public accounting firm



<PAGE>28

pursuant to temporary rules of the Securities and Exchange Commission
that permit Advanced ID to provide only management's report in this
annual report.


ITEM 8B.  OTHER INFORMATION

None


ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND
CORPORATION 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:

NAME              AGE     POSITIONS HELD             SINCE

Dan Finch          65    President & CEO, Director   September 2005
Sudeep Bhargava    51    Director of Operations      January 2007
Seymour Kazimirski 61    Director/Chairman           October 2002
Hubert Meier       61    Director                    February 2003
Terry Fields       65    Director                    July 2005

Business Experience of Officers, Directors and Significant Employees

Dan Finch - President & CEO, has 21 years of executive level management
experience in wireless HSIA and VoIP phone technology, high-speed
internet infrastructure and financial services for small pre IPO high
tech companies. Dan Finch led a division of DSC that designed and
manufactured all the cell switches for Motorola, under the Motorola
brand.  While serving at C-COR/COMLUX, he was responsible for the
turnaround of this subsidiary, and realized three-fold growth. Dan
Finch's educational background includes an MBA, Finance and Economics
from University of Chicago, a BS in Physics from the Indiana Institute
of Technology and certification in Technical Management from the
University of California, Berkeley.

Sudeep Bhargava - Vice President, Operations and Interim Chief
Financial Officer, has over 28 years of management experience in
hospitality industry and in non-profit sector, and lately in the pet

<PAGE>29

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

Seymour Kazimirski - Director, In 1995, Mr. Kazimirski established
Hawaii Pet Care Alliance which is involved in radio frequency
identification for companion animals, and where he continues to serve
as President.  From 1995 to 1998, Mr. Kazimirski consulted to AVID
Inc., a manufacturer of radio frequency identification microchips and
readers.   In 1993, Mr. Kazimirski established Global Consulting which
houses his consulting operations that specializes in finance,
administration and 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.

<PAGE>30

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

Section 16(a) Beneficial Ownership Reporting Compliance

To Advanced ID's knowledge, no director, officer or beneficial owner of
more than ten percent of any class of equity securities of Advanced ID,
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
Advanced ID, 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 the Corporation.

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 the Corporation in the
successful defense of any action, suit or proceedings) is asserted by

<PAGE>31

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.

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 the company's CEO and President for an annual salary
of $94,200. In addition to his salary, Mr. Finch received a one-time
payment of $5,000 for moving expenses and received 1,000,000 options
that vested in 2007.
<TABLE>
<CAPTION>
                                                                    Long Term Compensation
                       Annual Compensation                            Awards               Payouts
 (a)                    (b)     (c)            (d)      (e)      (f)             (g)      (h)            (i)
                                                       Other                  Securities                   All
Name                                                   Annual Restricted      Underlying   LTIP           Other
and                                                    Compen-   Stock          Options/   Pay-          Compen-
Principal                       Salary        Bonus    sation    Awards          SARs      Outs          sation
Position                Year      ($)          ($)       ($)       ($)           (#)       ($)             ($)

                     <c>       <c>          <c>       <c>       <c>            <c>      <c>             <c>
Dan Finch
CEO                    2007     $103,620       $0        $0        $0      1,200,000        $0             $0
                       2006     $103,620       $0        $0        $0              0        $0             $0
                       2005      $94,200       $0        $0        $0              0        $0             $0
Sudeep Bhargava        2007      $85,000       $0        $0        $0         50,000        $0             $0
CFO                    2006        N/A         $0        $0        $0              0        $0             $0
                       2005        N/A         $0        $0        $0              0        $0             $0
</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,
20,000 common shares were issued to one director and 10,000 common
shares were issued to six other directors.  On April 22, 2004, we
issued a total of 1,150,000 options to five directors.  Also, on April



<PAGE>32

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.


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

The following table sets forth, as of March 24, 2008, 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>
                                                 Common Stock      Percentage of
Title of Class     Name of Beneficial Owner   Beneficially Owned    Class Owned
--------------     ------------------------   ------------------   -------------
   
                    <c>                        <c>                <c>
Class A Common     Heritage Ventures, Ltd.        9,403,540            16.47%
</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 Corporation
<TABLE>
                                                 Common Stock      Percentage of
Title of Class     Name of Beneficial Owner   Beneficially Owned    Class Owned(1)
--------------     ------------------------   ------------------   -------------
   
                    <c>                        <c>                <c>
Class A Common            Dan Finch                 150,180            0.26%
Class A Common         Seymour Kazimirski         3,924,484            6.84%
Class A Common            Hubert Meier              939,813            1.64%
Class A Common            Terry Fields              462,904            0.80%
</TABLE>
(iii) Officers and Significant Employees of Advanced ID Corporation
<TABLE>
                                                 Common Stock      Percentage of
Title of Class     Name of Beneficial Owner   Beneficially Owned    Class Owned(1)
--------------     ------------------------   ------------------   -------------
   
                    <c>                        <c>                <c>
Class A Common            Dan Finch                 150,180            0.24%
Class A Common            Sudeep Bhargava           110,000            0.18%
</TABLE>

<PAGE>33

(iv) Directors and Officers of Advanced ID Corporation as a Group
<TABLE>
                                                 Common Stock      Percentage of
Title of Class     Name of Beneficial Owner   Beneficially Owned    Class Owned(1)
--------------     ------------------------   ------------------   -------------
   
                    <c>                        <c>                <c>
Class A Common        Directors/Officers         5,587,381              9.74%
</TABLE>
(1)Based upon 57,355,986 issued and outstanding as of March 24, 2008.


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, and which began January 3, 2003.  A total of $126,283
and $105,315 in consulting fees were paid or accrued to Kazimirski in
fiscal 2007 and 2006 fiscal years respectively

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



<PAGE>34

development. Mr. Meier receives $175 per hour for his services.  A
total of $20,200 and $31,712 in consulting fees were paid or accrued to
Meier in fiscal 2007 and 2006 fiscal years respectively.

Terry Fields

Mr. Fields is a director of Advanced ID.  Mr. Fields also provides
consulting services to Advanced ID for in the area of Investor
Relations and Public Relations.  Mr. Fields receives $175 per hour for
his services.  A total of $41,815 and $21,000 in consulting fees were
paid to Mr. Fields or accrued in fiscal 2007 and 2006 fiscal years
respectively.

Director Independence.

Seymour Kazimirski, Hubert Meier, Terry Fields and Dan Finch 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, 2007, there were no transactions with related persons other than as
described in the section above entitled "Item 10.  Executive
Compensation".


ITEM 13.  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)
(10)      Material Contracts.
     (i)  Employment Agreement with Sudeep Bhargava dated December 26,
          2006.(2)
    (ii)  Employment Agreement with Barry Bennett dated November
          15, 2005.(10)
   (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)



<PAGE>35

  (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)
    (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)      302 Certifications.(2)
(32)      906 Certifications.(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
$78,500 and $55,000 from our principal accountant for the 2007 and 2006
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.

Tax Fees.   We incurred aggregate tax fees and expenses of $0 and $0
from our accountant for the 2007 and 2006 fiscal years respectively,
for professional services rendered for tax compliance, tax advice, and
tax planning.

<PAGE>36

All Other Fees.   We incurred aggregate fees and expenses of $7,265 and
$0 from our principal accountant for the 2007 and 2006 fiscal years
respectively, for services rendered in regard to the filing of our Form
SB-2 and 8-K.

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 LBB & Associates LTD. LLP
solely for audit and audit-related services, tax consultation and tax
compliance services, and, as needed, for due diligence in acquisitions.




<PAGE>37

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 14, 2008
     ----------------------
     Dan Finch, Chief Executive Officer and President
    (As a duly authorized officer on behalf of the
     Registrant and as Principal Executive Officer)

By:  /s/Sudeep Bhargava                           Dated: April 14, 2008
     -----------------------
     Sudeep Bhargava, Interim Chief Financial Officer
    (As a duly authorized officer on behalf of the
     Registrant and as 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/Terry Field                               Dated: April 14, 2008
     ----------------------
     Terry Field, Director

By:  /s/ Dan Finch                                Dated: April 14, 2008
     ----------------------
     Dan Finch, Director

By:  /s/Seymour Kazimirski                        Dated: April 14, 2008
     ----------------------
     Seymour Kazimirski, Director

By:  /s/Hubert Meier                              Dated: April 14, 2008
     ----------------------
     Hubert Meier, Director



<PAGE>38

ADVANCED ID CORPORATION
INDEX TO FINANCIAL STATEMENTS

The following financial statements and schedules are filed as part of
this report:

Report of Independent Registered Public Accounting Firm    39
Consolidated Balance Sheet                                 40
Consolidated Statements of Operations                      42
Consolidated Statement of Stockholders'
  (Deficit) and Comprehensive Loss                         43
Consolidated Statements of Cash Flows                      45
Notes to Consolidated Financial Statements                 47



<PAGE>39

Report of Independent Registered Public Accounting Firm

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


We have audited the accompanying consolidated balance sheet of Advanced
ID Corporation (the "Company") as of December 31, 2007, and the related
consolidated statements of operations, stockholders' equity (deficit),
and cash flows for each of the years in the two-year period ended
December 31, 2007. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our 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, 2007 and the results of
its operations and its cash flows for each of the years in the two-year
period ended December 31, 2007 in conformity with accounting principles
generally accepted in the United States of America.

As discussed in Note 3 to the consolidated financial statements, the
Company's absence of significant revenues, recurring losses from
operations, and its need for additional financing in order to fund its
projected loss in 2008 raise substantial doubt about its ability to
continue as a going concern. The 2007 consolidated financial statements
do not include any adjustments that might result from the outcome of
this uncertainty.

LBB & Associates Ltd., LLP
Houston, Texas
March 26, 2008

<PAGE>40
ADVANCED ID CORPORATION
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007

ASSETS
CURRENT ASSETS:
  Cash                                                     $   61,557
  Trade accounts receivable, net                              113,943
  Inventory                                                    95,914
  Prepaid expenses                                              2,018
                                                           ----------
      Total current assets                                    273,432

   Property and equipment, net                                 49,986
   Goodwill                                                   122,468
   Customer list, net                                          62,500
                                                           ----------
      Total other assets                                      234,954
                                                           ----------
      Total assets                                         $  508,386
                                                           ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
  Accounts payable                                         $  300,636
  Accounts payable - related parties                           66,912
  Loan payable - related party                                 59,806
  Deposit on shares to be issued                              192,500
  Accrued liabilities                                          57,343
  Contingent consideration on acquisition of Pneu-Logic       240,000
                                                           ----------
      Total current liabilities                               917,197
                                                           ----------
      Total liabilities                                       917,197
                                                           ----------
STOCKHOLDERS' DEFICIT:
  Series A preferred stock, $0.01 par; 500,000 shares
    authorized; none issued                                         -
  Common stock, $0.01 par; 100,000,000 shares
    authorized; 57,318,308 shares outstanding                 573,184
  Additional paid-in capital                                8,180,170
  Subscription receivable                                      (2,000)
  Accumulated deficit                                      (9,161,789)
  Accumulated other comprehensive income                        1,624
                                                           ----------
      Total stockholders' deficit                            (408,811)
                                                           ----------
      Total liabilities and stockholders' deficit          $  508,386
                                                           ==========

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

<PAGE>41

ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2007 and 2006

                                               2007          2006
                                            ----------    ----------
Revenues                                  $ 1,010,003    $  797,991
Cost of revenues                              525,127       376,756
                                          -----------    ----------
  Gross profit                                484,876       421,235

Research and development expense              265,787       240,375
General and administrative expense          2,316,173     2,404,762
Impairment of goodwill                        486,888             -
                                          -----------     ---------
  Operating loss                           (2,583,972)   (2,223,902)

  Interest income (expense)                     1,734        (8,315)
                                          -----------   -----------
Loss from continuing operations            (2,582,238)   (2,232,217)
(Loss) income from discontinued
operations                                   (139,745)       20,914
                                          -----------   -----------
Net Loss                                  $(2,721,983)  $(2,211,303)

Warrant holder inducement dividend           (155,647)            -
                                          -----------   -----------
Net loss applicable to common
Shareholders                              $(2,877,630)  $(2,211,303)
         ===========   ===========
Net loss per share:

  Basic and diluted loss
     Continuing operations                     $(0.05)       $(0.05)
                                          ===========   ===========
     Discontinued operations                   $(0.00)       $(0.00)
                                          ===========   ===========
  Basic and diluted weighted average
    Shares outstanding                     54,951,487    48,981,027
                                          ===========   ===========

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



<PAGE>42
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 and 2006
(CONTINUED ON NEXT PAGE)
<TABLE>
<CAPTION>
	                                                               Additional
                                             Common Stock       Paid -in    Subscription
                                           Shares    Amounts     Capital      Received
                                           -----------------    ----------   -----------

                                          <c>       <c>         <c>            <c>
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 acquisition 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            -
Stock issued for services                         -         -     854,275            -
                                         ----------  --------  ----------     --------
BALANCE, December 31, 2006               52,219,914   522,199   6,000,805      (22,000)


Comprehensive loss:
  Net loss
  Foreign currency

      Total comprehensive loss

Stock issued for services                 1,151,372    11,514     271,926            -
Stock issued for cash                       965,000     9,650     244,350       20,000
Stock issued on acquisition of Pneu-Logic 1,000,000    10,000     308,810            -
Stock issued on settlement of debt        1,170,355    11,704     350,237            -
Exercise of options and warrants            811,667     8,117     235,383            -
Stock options issued for services                 -         -     613,012            -
Warrant holder inducement dividend                -         -     155,647            -
                                         ----------  --------  ----------     --------
BALANCE, December 31, 2007               57,318,308  $573,184  $8,180,170     $ (2,000)
                                         ==========  ========  ==========     ========
</TABLE>



<PAGE>43
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 and 2006
<TABLE>
                                         Accumulated
                                            Other                       Total
                                        Comprehensive    Accumulated  Stockholders'
	                                         Income (Loss)     Deficit       Equity
                                        -------------    -----------  -------------

                                          <c>             <c>           <c>
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 acquisition purchase of
  assets                                        -                 -      150,000
Stock issued on conversion of debt              -                 -       86,000
Exercise of options and warrants                -                 -      270,000
Stock issued for services                       -                 -      854,275
                                          -------         ---------    ---------
BALANCE, December 31, 2006                 16,477        (6,284,159)     233,322


Comprehensive loss:
  Net loss                                      -        (2,721,983)  (2,721,983)
  Foreign currency                        (14,853)                -      (14,853)
                                                                       ---------
      Total comprehensive loss                                        (2,736,836)
                                                                       ---------
Stock issued for services                       -                 -      283,440
Stock issued for cash                           -                 -      274,000
Stock issued on acquisition of Pneu-Logic       -                 -      318,810
Stock issued on settlement of debt              -                 -      361,941
Exercise of options and warrants                -                 -      243,500
Stock options issued for services               -                 -      613,012
Warrant holder inducement dividend              -          (155,647)           -
                                          -------         ---------    ---------
BALANCE, December 31, 2007                $ 1,624        $(9,161,789)  $ (408,811)
                                          =======         =========    =========
</TABLE>


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




<PAGE>44

ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

                                                 2007          2006
                                            ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                   $(2,721,983)  $(2,211,303)
  Net income (loss) from discontinued
    Operations                                  (139,745)       20,914
                                              ----------    ----------
  Net loss from continuing operations         (2,582,238)   (2,232,217)
  Adjustments to reconcile net loss to
    net cash used in operating activities:
    Depreciation and amortization                102,960        67,946
    Stock issued for services                    283,440       442,863
    Stock options issued for services            613,012       854,275
    Bad Debt Expense                              41,097             -
    Goodwill impairment                          486,888             -
      Change in assets and liabilities:
        Accounts receivable                       32,057        25,961
        Inventory                                (72,642)       15,638
        Prepaid expenses                          19,289        14,932
        Accounts payable                         166,259       (28,063)
        Accounts payable - related parties       175,539        64,787
        Accrued liabilities                       (6,091)       41,921
                                              ----------    ----------
Net cash used in operating activities           (740,430)     (731,957)
Net cash used in operating activities
  - discontinued operations                        1,747       (4,845)
                                              ----------    ----------
CASH FLOWS USED IN OPERATING ACTIVITIES         (738,683)     (736,802)
                                              ----------    ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition of Pneu-Logic Ltd.                (100,000)            -
  Purchase of property and equipment             (16,254)       (4,792)
                                              ----------    ----------
Net cash used in investing activities           (116,254)       (4,792)
Net cash used in investing activities
  - discontinued operations                      (16,193)      (11,383)
                                              ----------    ----------
CASH FLOWS USED IN INVESTING ACTIVITIES         (132,447)      (16,175)
                                              ----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock                      274,000       577,000
Proceeds from the exercise of stock
    options and warrants                         213,500       270,000
Proceeds from loan payable - related party        60,000             -
Proceeds from deposits on shares to be issued    192,500             -
Payments on Pneu-Logic Debt issued               (60,000)            -

<PAGE>45
ADVANCED ID CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
(Continued)

                                                 2007          2006
                                            ------------   ------------

Payments on loans payable - related party             -       (16,160)
                                              ----------    ----------
Net cash provided from financing activities      680,000       830,840
Net cash provided from financing activities
  discontinued operations                         (1,912)       (4,187)
                                              ----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES             678,088       826,653
                                              ----------    ----------

EFFECT OF EXCHANGE RATE CHANGES                  (12,188)       (5,703)
                                              ----------    ----------

NET INCREASE (DECREASE) IN CASH                 (205,230)       67,973
CASH, beginning of year                          266,787       198,814
                                              ----------    ----------
CASH, end of year                             $   61,557    $  266,787
                                              ==========    ==========


CASH PAID FOR:
  Interest                                      $      -      $      -
  Taxes                                         $      -      $      -

NON CASH INVESTING AND FINANCING TRANSACTIONS:
  Common stock issued for acquisition of
    Pneu-Logic Ltd.                             $318,810     $       -
  Common stock issued for debt                  $361,941     $  86,000
  Common stock issued for assets                       -     $ 150,000
  Debt Issued for acquisition of Pneu-Logic     $300,000     $       -
  Common stock issued for subscription
    Receivable                                  $      -     $  22,000
  Subscription receivable issued for exercise
    of warrants                                 $ 30,000     $       -
  Warrant holder inducement dividend            $155,647     $       -


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



<PAGE>46

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.

During the past several years Advanced ID has been involved in research
& development of RFID readers and RFID tags for various market segments
and will continue to do so during 2008.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Basis of Consolidation
----------------------
The consolidated financial statements include the accounts of Advanced
ID Corporation, its wholly-owned subsidiaries Avid Canada Corporation
("AVID Canada"), Universal Pet Care, Inc. ("UPC") and Pneu-Logic Ltd.
("PL"). 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



<PAGE>47

management to make estimates and assumptions that affect the amounts
reported in these financial statements and accompanying notes.  Actual
results could differ from these estimates.


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

Foreign Currency Translation
----------------------------
Since Advanced ID is located in Canada, the Canadian dollar has been
designated as the functional currency.  With the acquisition of Pneu-
Logic the currency of trade can be Euros, British sterling pounds and
US Dollars, however the British sterling pounds has been designated as
the functional currency.  The reporting currency is the United States
dollar.  All balance sheet accounts have been translated at the current
exchange rate as of December 31, 2007. 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 (deficit).

Accumulated Other Comprehensive Loss
------------------------------------
Total accumulated other comprehensive loss consists of net loss and
other changes in stockholders' equity (deficit) from transactions and
other events from currency translation gains and losses. The components
of and changes in accumulated other comprehensive income as it relates
to the currency translation gains (losses) are ($14,853) and $560 for
the years ending December 31, 2007 and 2006, respectively.

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

<PAGE>48

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

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

Allowance for Doubtful Accounts
-------------------------------
The Company provides an allowance against accounts receivables for
estimated losses that may result from our customers' inability to pay.
The allowance is determined by analyzing known uncollectible accounts,
aged receivables, economic conditions, historical losses and changes in
customer's cycles and customer's credit-worthiness.  Amounts later
determined and specifically identified to be uncollectible are charged
and written off against this allowance.  To minimize the likelihood of
uncollectibility, the Company reviews our customer's credit worthiness
periodically based on independent credit reporting services, the
Company's experience with the customer and the economic condition of
the customer's industry.  Material differences may result in the amount
and timing of expense for any period if the Company were to make
different judgments 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.
The company has recorded an allowance of $16,852 as of December 31,
2007.

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

<PAGE>49

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 is deemed to have an
indefinite life are not amortized but is subject to an annual
impairment test.

The Company recognized an impairment loss of $486,888 in 2007 based on
management's valuation.

Intangible Assets
-----------------
Intangible assets consist of a customer list purchased on the
acquisition of Pneu-Logic Ltd.  This list is being amortized straight-
line over three years.  Accumulated amortization as at December 31,
2007 was $12,358.

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

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.


<PAGE>50

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 2007 and 2006, potential dilutive
securities had an anti-dilutive effect and were not included in the
calculation of diluted net loss per common share.  Total shares
outstanding, assuming the exercise of outstanding options and warrants
for the years ended December 31, 2007 and 2006, were 69,257,891 and
61,493,664, respectively.

Stock Options
-------------
The Company uses the fair value accounting method as provided under
SFAS No. 123(R).  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 2007 (2006) compensation expense: dividend yield 0% (2006 - 0%),
expected volatility of 97.9% (2006 - 157.5%), risk-free interest rate
of 6.3% (2006 - 5.8%), and expected lives of 5 years (2006 - 5 years).

Segment Reporting
-------------
The Company operates in one industry segment - radio frequency
identification microchip readers and tags. The Company operates in one
geographic area, being the United States of America.

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

Reclassifications
-----------------
Certain 2006 amounts have been reclassified to conform to 2007
presentation.

<PAGE>51

Recent Accounting Pronouncements
--------------------------------
In September 2006, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 157, Fair Value Measurements.  SFAS No. 157 defines fair
value, establishes a framework for measuring fair value in GAAP, and
expands disclosures about fair value measurements.  This statement is
effective for financial statements issued for fiscal years beginning
after November 15, 2007.  The Company is currently evaluating the impact
SFAS No. 157 will have on the Company's financial position, results of
operations, and cash flows.

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

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

<PAGE>52

In September 2006, the SEC issued Staff Accounting Bulletin No. 108,
Considering the Effects of Prior Year Misstatements when quantifying
Misstatements in Current Year Financial Statements ("SAB 108").  SAB 108
requires companies to evaluate the materiality of identified unadjusted
errors on each financial statement and related financial statement
disclosure using both the rollover approach and the iron curtain
approach, as those terms are defined in SAB 108.  The rollover approach
quantifies misstatements based on the amount of the error in the current
year financial statement, whereas the iron curtain approach quantifies
misstatements based on the effects of correcting the misstatement
existing in the balance sheet at the end of the current year,
irrespective of the misstatement's year(s) of origin.  Financial
statements would require adjustment when either approach results in
quantifying a misstatement that is material.  Correcting prior year
financial statements for immaterial errors would not require previously
filed reports to be amended.  If a company determines that an adjustment
to prior year financial statements is required upon adoption of SAB 108
and does not elect to restate its previous financial statements, then it
must recognize the cumulative effect of applying SAB 108 in fiscal 2006
beginning balances of the affected assets and liabilities with a
corresponding adjustment to the fiscal 2006 opening balance in retained
earnings.  SAB 108 is effective for interim periods of the first fiscal
year ending after November 15, 2006 and was adopted by the Company in the
first quarter of 2007.  The adoption of this interpretation did not have
an impact on its financial position or results of operations.


NOTE 3 - FINANCIAL CONDITION AND GOING CONCERN

Advanced ID has incurred net losses for the years ended December 31,
2007 and 2006 of $2,721,983 and $2,211,303, 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

<PAGE>53

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 PNEU-LOGIC LTD.

 The following table summarizes significant acquisitions completed
during the year ended December 31, 2007:

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





































   PURCHASE PRICE

On July 1, 2007, Advanced ID Corporation (the "Company") acquired
substantially all of the assets of Pneu-Logic Ltd. ("PL").  PL is
engaged in the business of fleet tire management. At the time of the
transaction, there were no material relationships between the seller and
the Company or any of its affiliates, or any director or officer of the
Company, or any associate of any such officer or director. The aggregate
purchase of $718,810 included $400,000 cash and 1,000,000 restricted
shares of Advanced ID Corporation valued at $318,810.  The cash
component consists of $100,000 paid on the date of closing and
contingent consideration of ten $30,000 monthly installments commencing
October 1, 2007 based on meeting certain revenue targets.  The value of
1,000,000 common shares issued was determined based on the closing price
on the Effective Date.

The purchase price allocation is as follows (in thousands):

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


















                                      =========

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



<PAGE>54

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
















The results of operations for PL have been included in the Company's
consolidated statements of operations since the completion of the
acquisitions during the year ended December 31, 2007.  The following
unaudited pro forma financial information presents the combined results
of the Company and the 2007 acquisitions as if the acquisitions had
occurred at the beginning of 2006:

                                    Unaudited pro forma
                                    -------------------
                                  Year Ended         Year Ended
                                  December 31,       December 31,
                                     2006               2007
                                  ------------       ------------
Net Revenue                       $ 1,090,496          $ 1,243,328
Net income (loss)                 $(2,173,729)         $(2,555,005)
Net income (loss) applicable to
  common shareholder              $(2,173,729)         $(2,850,397)
Net income (loss) per share-basic     $ (0.05)             $ (0.05)
Net income (loss) per share-diluted   $ (0.05)             $ (0.05)




































































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


NOTE 5 - DISCONTINUED OPERATIONS

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

The following table summarizes the disposition:

Current assets                         $157,606
Property and equipment                   53,191
Goodwill                                 55,486
Current Liabilities                     (67,067)
Non Controlling Interest                (47,022)
                                        -------



<PAGE>55

 Net assets acquired                   $152,194
   Less: Consideration received        $      -
                                       --------
Loss on disposition                     152,194
Company's share of 2007 Earnings         12,449
                                       --------
Net loss on disposition                $139,745
                                       ========


NOTE 6 - PROPERTY AND EQUIPMENT

Property and equipment consists of the following:
                                             Estimated
         Lives           2007
                                              --------          ----

  Equipment and furniture                         5 yrs      $  28,856
  Computer hardware                               3 yrs         43,982
  Computer software                               2 yrs        180,951
                                                             ---------
    Total assets                                               253,789
  Less accumulated depreciation                               (203,803)
                                                             ---------
    Net book value                                           $  49,986
                                                             =========

Depreciation expense for 2007 was $90,460 (2006 - $76,542).


NOTE 7 - INCOME TAXES

Advanced ID has had losses since inception and therefore has no income
tax liability.  The net deferred tax asset generated by the loss carry-
forward has been fully reserved.  The cumulative Canadian net operating
loss carry-forward is approximately $5,560,000 at December 31, 2007,
and will expire in various years through 2016.  Advanced ID recorded an
increase in the valuation allowance of $700,000 and $340,000 for the
years ended December 31, 2007 and 2006, respectively.  The difference
between the statutory rate and the effective rate for the years ended
December 31, 2007 and 2006 relates to the change in valuation
allowance.



<PAGE>56

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

                                                     2007
                                                     ----
Long-term:
  Deferred tax assets                            $ 2,000,000
  Valuation allowance                             (2,000,000)
                                                 -----------
                                                 $         -
                                                 ===========


NOTE 8 - COMMON STOCK

During 2007, Advanced ID issued a total of 5,098,394 shares of common
stock; 965,000 shares of common stock were issued for cash proceeds of
$254,000 and collected $20,000 of a subscription receivable from the
prior year, 811,667 shares of common stock were issued on the exercise
of warrants for $213,500 of cash and a note receivable of $30,000,
1,170,355 shares of common stock were issued as settlement of debt
valued at $361,941, 1,000,000 shares of common stock were issued on the
acquisition of PL valued at $318,810, and 1,151,372 shares of common
stock were issued for services rendered valued at $283,440.  We also
wrote off a note receivable that we had accepted in 2007 in exchange
for the exercise of 100,000 common stock warrants valued at $30,000 to
one investor due to his inability to pay. These shares are currently
still outstanding.

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.



<PAGE>57

NOTE 9 - STOCK OPTIONS AND WARRANTS

Options:

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

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

In May 2007, the Board authorized options to purchase 100,000 common
shares with a term of 5 years to an employee and a consultant.  These
common shares shall be registered under Form S-8 with the Securities
and Exchange Commission.  Compensation expense for the fair value of
these options of $30,666 has been included as part of general and
administrative expenses recorded during 2007.

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

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.

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
  Granted                                       1,900,000
                                                ---------
  Outstanding, December 31, 2007                5,580,000
                                                =========
  Exercisable at December 31, 2007              5,580,000
                                                =========

<PAGE>58

  Weighted-average grant-date fair value of options, granted during
2007 - $0.38 (2006 - $0.43).

  Weighted-average remaining, years of contractual life 2007 - $5.03
(2006 - $6.38).

Warrants:

During 2007, the Company issued warrants to purchase 2,040,000 shares
of common stock; 1,590,000 warrants expire one year from the date of
issuance and are exercisable at $.40 per share and 450,000 warrants
expire in three years from the date of issuance and are exercisable at
$.32 - $.36 per share.  These warrants were issued in connection with a
private placement.  The fair value of these warrants was allocated
between the common stock and warrants purchased.

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

As of December 31, 2007, the Company had 6,359,583 warrants outstanding
of which 3,824,585 expire in 2008, 2,084,998 expire in 2009 and 450,000
expire in 2010.

The following table summarizes warrant activity:


Outstanding, January 1, 2006                    2,767,502
  Granted                                       3,464,582
  Exercised                                      (753,334)
                                                ---------

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

Weighted-average grant-date fair value of warrants, granted during 2007
- $0.34 (2006 - $0.43).

<PAGE>59

Weighted-average remaining, years of contractual life as of 2007 - 0.92
(2006 - 1.98).

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.


NOTE 10 - 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 2007 and 2006, consulting fees
totaled $126,283 and $105,315 for his services, respectively.

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

In addition to being a director of Advanced ID, Mr. Meier provides
consulting services to Advanced ID for the purposes of assisting with
product and supplier development.  Specifically, Mr. Meier has been
responsible for development, manufacturing and testing of 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 expired on May 21,
2005.  The contract was not renewed however Mr. Meier continues to



<PAGE>60

provide services based on his hourly rate.  During 2007 and 2006
consulting fees totaled $20,200 and $31,712 for his services,
respectively.

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

In addition to being a director of Advanced ID, Mr. Fields provides
consulting services to Advanced ID for the purposes of assisting with
investor relations and stock development.  Specifically, Mr. Fields has
been responsible for development of investor relations programs and
company funding activities such as private placements.  His contract
began on May 21, 2002 and expired on May 21, 2005.  The contract was
not renewed however Mr. Fields continues to provide services based on
his hourly rate.  During 2007 and 2006 consulting fees totaled $41,815
and $21,000 for his services, respectively.

The Company's Pneu-Logic subsidiary purchased $103,829 of inventory
from a company controlled by the father of a Pneu-Logic employee.


NOTE 11 - 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:




<PAGE>61

  2008         $ 52,468
  2009           52,468
  2010           50,621
  2011           34,005
  2012           22,670
               --------
               $212,232
               ========

Rent expense was $27,587 and $34,500 for the years ended December 31,
2007 and 2006, respectively.

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


NOTE 12 - CONCENTRATIONS OF CREDIT RISK

As of December 31, 2007 and 2006, amounts due from customers which
exceeded 10% of trade accounts receivables amounted to $50,853 from
three customers and $60,968 from two customers, respectively.

We have only one customer that exceeds 10% of revenues, which accounted
for 13% of our total revenues in 2007 (2006 - 22%).

The Company has three vendors which, combined, accounted for
approximately 84% of total purchases in 2007 (2006 - 23% from two
vendors).

Currently, the Company realizes 51% of sales revenue from the sale of
sterilized tags for companion animals, over 90% of which is sold to the
purchasing groups representing veterinarians in Canada.  The remaining
49% is divided between tire-tag sales and the Pneu-Logic revenues since
July 1, 2007.

The Company's Pneu-Logic subsidiary, located in the United Kingdom,
comprises $208,009 of total revenues, $638,004 of total net loss,
$291,128 of total assets $235,407 of total liabilities and $0 of total
capital expenditures for 2007.  The remainder of each item is comprised
of operations in Canada.

NOTE 13 - SUBSEQUENT EVENTS

On February 28, 2008, the Chairman of the Board of Director's advanced
a loan of $50,000 as interim financing on behalf of an investor.  This
short-term loan was repaid to the director by the investor on March 2,
2008.  The Company has been billed for $248 for the interest based on
10% per annum.


<PAGE>62

On March 6, 2008, the Board of Directors approved the issuance of
250,000 Rule 144 shares as a performance bonus to the President of the
Company.  In addition, another 250,000 Rule 144 shares are to be issued
to the President on September 15, 2008 subject to meeting certain
performance criteria.

On March 8, 2008, the Board of Directors approved the issuance of
100,000 Rule 144 shares as a performance bonus to the Chief Operating
Officer of the Company.  In addition, this individual received a salary
increase of $1,000 per month to be paid in S-8 shares effective March
1, 2008.

On March 9, 2008, the Board of Directors approved performance bonuses
to 5 individuals of $500 per individual per month effective January 1,
2008.  These bonuses are to be paid in S-8 shares on a quarterly basis.

On March 10, 2008, the Board of Directors approved the issuance of
35,000 S-8 shares to three employees as a performance bonus.

In 2008, 2,993,166 Rule 144 shares have been issued for total cash
proceeds of $329,180.




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