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


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                                   FORM 10-KSB

  |X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
      ACT OF 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003

  |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934


                  FOR THE TRANSITION PERIOD FROM _____ TO _____

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                        Commission File Number 000-24965


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

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

            6143 - 4 Street SE, Suite 14
              Calgary, Alberta, Canada                  T2H 2H9                     (403) 264-6300
     (Address of principal executive office)         (Postal Code)            (Issuer's telephone number)
</TABLE>

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  |_|

Total revenues for Fiscal Year 2003 were $962,988.

The aggregate market value of the Common Stock held by non-affiliates (as
affiliates are defined in Rule 12b-2 of the Exchange Act) of the registrant,
computed by reference to the average of the bid and asked price on March 18,
2004 was $13,464,902. 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.


<PAGE>


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 |_|     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 18, 2004 there were 37,699,168 shares of common stock issued and
outstanding.



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                                       2
<PAGE>


                             ADVANCED ID CORPORATION
                                   FORM 10-KSB

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003

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Table of Contents:

ITEM 1. DESCRIPTION OF BUSINESS...........................................................................................5

   OVERVIEW...............................................................................................................5
   PRODUCTS AND SERVICES OVERVIEW.........................................................................................5
     Companion Animal Products And Services...............................................................................5
     Livestock Animal Products And Services...............................................................................6
   THE BUSINESS MODEL.....................................................................................................6
   THE MARKET.............................................................................................................6
   MARKETING AND SALES STRATEGY...........................................................................................7
     Sales and Distribution Channels......................................................................................7
     Pricing Strategy.....................................................................................................7
   COMPETITION............................................................................................................8
   COMPETITIVE ADVANTAGES.................................................................................................8
   CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS......................................................................9
   TRADEMARKS............................................................................................................10
   EMPLOYEES.............................................................................................................10
   REPORTS TO SECURITY HOLDERS...........................................................................................10

ITEM 2.  DESCRIPTION OF PROPERTY.........................................................................................11

ITEM 3.  LEGAL PROCEEDINGS...............................................................................................11

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.............................................................11

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS........................................................11

   MARKET INFORMATION....................................................................................................11
   HOLDERS...............................................................................................................11
   DIVIDENDS.............................................................................................................12
   SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS....................................................12
   RECENT SALES OF UNREGISTERED SECURITIES...............................................................................12
     (i) Fiscal 2002 Transactions........................................................................................12
     (ii) Fiscal 2003 Transactions.......................................................................................12
     (iii) Fiscal 2004 Transactions......................................................................................13

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS............................................................................13

   RESULTS OF OPERATIONS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2003 AND DECEMBER 31, 2002..............................13
     Revenue.............................................................................................................13
     Operating Expenses..................................................................................................13
     Liquidity and Capital Resources.....................................................................................14

ITEM 7.  FINANCIAL STATEMENTS............................................................................................14

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE............................15

ITEM 8A.  CONTROLS AND PROCEDURES........................................................................................15

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS....................................................15

   DIRECTORS AND OFFICERS................................................................................................15
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                                       3
<PAGE>

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   BUSINESS EXPERIENCE OF OFFICERS AND DIRECTORS.........................................................................15

ITEM 10.  EXECUTIVE COMPENSATION.........................................................................................16

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.................16

   (I) PERSONS BENEFICIALLY OWNING MORE THAN 5% OF OUTSTANDING COMMON STOCK..............................................16
   (II) DIRECTORS OF ADVANCED ID.........................................................................................17
   (III) OFFICERS OF ADVANCED ID.........................................................................................17
   (IV) DIRECTORS AND OFFICERS OF ADVANCED ID AS A GROUP.................................................................17

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.................................................................17

   BARRY BENNETT.........................................................................................................17
   HERITAGE VENTURES LTD.................................................................................................17
   SEYMOUR KAZIMIRSKI....................................................................................................17
   HUBERT MEIER..........................................................................................................18

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K...............................................................................18


ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.........................................................................19

SIGNATURES...............................................................................................................19
</TABLE>


                                       4
<PAGE>


PART I

ITEM 1. DESCRIPTION OF BUSINESS

OVERVIEW
--------

Advanced ID Corporation markets microchip identification technologies referred
to as radio frequency identification microchips and scanners. 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 animals, currently track 300,000 animals in
our PETtrac database, and reunite numerous lost animals with their families each
month.

It is our intent to expand our current market position in the companion animal
and biological sciences sectors to include the livestock industry which is
almost exclusively utilizing bar code tags. The barriers for adoption of current
RFID technology include its high cost and its limited read range. Based on
in-house research, we believe the livestock industry is demanding a cost
effective RFID technology that offers significantly enhanced efficiencies in
data management and tracking. A growing number of governments which includes
Canada, Australia, New Zealand, United States, the European Union and others are
enacting legislation or have indicated their intent to make RFID tagging of
livestock mandatory. This mandatory animal identification legislation is
necessary to ensure that a food safety tracking system is in place to trace-back
diseased animals to their origin.

The market we will be serving is extensive. Our initial focus will be the bovine
market which is numbered at over one billion cattle including 110 million in
North America. The average life of cattle is 18 to 20 months prior to slaughter.
In the United States and Canada, the packing plants slaughter approximately
150,000 head of cattle each day or approximately 35 million per year. Our next
market will be the 750 million hogs worldwide which have an average life of six
to eight months prior to slaughter. Annual hog slaughter in Canada and the
United States totals 117 million. It is anticipated that the hog industry in
Taiwan may soon require mandatory trace-back by the Taiwanese government in
order to re-establish export programs throughout Asia which have been decimated
due to prior food safety issues. Currently, the Taiwanese hog population is 7.2
million head with annual slaughtering totaling approximately 11 million. Our
third target market is the sheep industry which is also currently considering
mandatory identification. With inventories of 165 million head in Australia and
New Zealand and total reliance on export markets, there is deep concern over the
economic ramifications of a disease outbreak should the sheep industry be unable
to ensure food safety. North America, Asia and Europe are the main importers of
their meat products and are demanding food safety for their consumers. It is
important to note that livestock identification tags carry a unique numeric or
alpha-numeric sequence that is used only once. (1)

PRODUCTS AND SERVICES OVERVIEW
------------------------------

Companion Animal Products And Services
--------------------------------------
Our current product offering includes an established line of RFID products,
scanners, and software.

RFID Tags: Our RFID Tags consist of an integrated circuit coil and capacitor
(transponder) sealed in biocompatible glass containing a programmed
identification number, which fits inside a hypodermic needle and can be injected
under the skin of an animal. A scanner temporarily energizes the chip allowing
it to transmit its data to the reader with error-free reliability.

We have also developed a passive transponder encased in a biocompatible ceramic
bolus that is supplanted in the second stomach or rumen of cattle for tracking
livestock from birth to feedlot, slaughter, and processing.

RFID Readers: We offer a variety of readers that scan and read both our
microchips and our competitors' microchips. Other reading and monitoring systems
include probes and coils in a variety of diameters for use in many animate and
inanimate applications.

------------------------------------
(1) www.fas.usda.gov/dlp/circular/2001/01-101p/toc.htd


                                       5
<PAGE>


Software: We offer a proprietary Microsoft(C).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: (1) Pet name, breed, and description; (2)
Animal's brand and tattoo numbers; (3) Present/past owners, and current details;
(4) Medical history of the animal, medication, allergies, etc.; and (5) Other
pertinent information specific to each sector/industry. PETtrac is currently
available worldwide and can be easily translated to additional languages to
serve international markets.

Services: We provide an electronic and manual data entry service to the PETtrac
global tracking system for all animals identified with our microchips in Canada.
Animal recoveries can be performed through wireless technologies as well as a
24/7 operator assisted services on a global basis.

Livestock Animal Products And Services
--------------------------------------
We are currently in the early commercialization stages of our product offering
which will include an established line of RFID products, scanners, and software
specifically tailored to meet the nuances of each type of livestock.

RFID Tags: Our RFID Tags transmit its data to the reader with a read range of up
to approximately three meters.

RFID Readers: We offer stationary and handheld readers that will scan and read
our microchips.

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.

THE BUSINESS MODEL
------------------

Our model is expected to achieve a low cost of sales, high profit margins and
significant multi-channel revenue generation.

We are planning to significantly enhance our revenue streams by:

- Offering higher integrity and more cost effective identification solutions
over current practices in the worldwide LEGISLATED/MANDATORY livestock markets
with specially developed RFID products, and a web-based tracking and recovery
system.

- Expanding into other veterinary clinics and animal shelter markets across
Canada, the United States and other markets with our new RFID products.

- Expanding RFID technology into the insurance industry for the tracking of
high-value assets.

- Expanding RFID technology into other inanimate commercial and industrial
applications (i.e. energy, forestry and manufacturing industries).

THE MARKET
----------

Advanced ID is fulfilling the needs of the animate and inanimate 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.

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


                                       6
<PAGE>


- Industry observers report that the U.S. RFID market in 1997 was US$490 million
and forecasts it to be US$1.6 billion for 2002.

- The global RFID market reached over US$900 million in 1999 and worldwide
revenues are forecast to reach US$7.5 billion by 2006.

Our PETtrac system has been approved for use across Canada by the Canadian
Veterinarian Medical Association 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.(2)

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 but they are not widely
used in the livestock industry. Our initial focus in expanding our revenue
streams is to be the system integrator or solutions provider for the livestock
industry which is estimated to be in excess of two billion head of cattle, hogs
and sheep. It is important to note that the average life of cattle prior to
slaughter is 18 to 20 months and 6 to 8 months for hogs and sheep.(3)

MARKETING AND SALES STRATEGY
----------------------------

Sales and Distribution Channels
-------------------------------

With a strong channel already established in the Canadian animate market with
our direct sales force, we will leverage this position by securing established
channels through agreements with the largest distribution co-operatives and
veterinarian professionals in targeted global regions. In the United States and
Canada, we expect that the majority of our sales will be through direct channels
and distribution co-operatives. In addition, we plan to use independent
resellers or distributors in targeted regions and countries. We have established
distributors in Taiwan, Argentina and Australia. We are currently evaluating
additional distributors for New Zealand, Thailand and China. These independent
resellers and distributors will be paid a percentage of product sales. Our
initial focus in the livestock industry will be to target those countries that
have enacted mandatory animal identification legislation or having indicated
their intent to enact such legislation.

Pricing Strategy
----------------

We plan to be the undisputed price-performance leader with all of our products
and services. This will allow us to gain market acceptance and rapidly secure
market share in the livestock industry, and further allow us to continue to
increase our market share in the companion animal 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.


------------------------------------
(2) www.canadaid.ca/ccia-regulations.
(3) www.fas.usda.gov/dlp/circular/2001/01-101p/toc.htd


                                       7
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COMPETITION
-----------

The current method of livestock identification predominantly utilizes standard
bar code visual tags. It is our belief that due to the inefficiencies in bar
coding technology, the industry is moving towards RFID technology which offers
greater efficiencies in data management. The barriers for adoption of current
RFID technology include its high cost and its limited read range. Our top three
competitors in the animate 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. No financial information was available for Allflex.(4)

Destron Fearing Corporation - Destron Fearing has been in the animal
identification business since 1945. For over 50 years, Destron Fearing has
developed, manufactured and marketed a broad range of individual animal
identification products. As the animal identification industry expanded, the
Company culminated a merger of Fearing Manufacturing and Destron/IDI in November
1993. Their products range from visual ear tags attached to livestock, to
electronic microchips implanted under the skin of pets, fish, laboratory animals
and livestock. On April 25, 2000, Destron Fearing was acquired by Applied
Digital Solutions, Inc. (ADSX - Nasdaq) for $84.6 million through a merger of
its wholly owned subsidiary, Digital Angel Corporation. For the year ended
December 2002, Applied Digital had revenues of $99.6 million and a net loss of
$112 million. In Applied Digital's "Advanced Wireless" operating segment which
includes Destron Fearing's and Digital Angel's businesses, revenues from this
segment accounted for 33.7% of total revenues or $33.6 million during Fiscal
2002.(5)

Trovan, Ltd. - Trovan is a privately held United Kingdom company established in
1988. Trovan is focused on developing and marketing RFID technology, telemetric
systems and biomedical delivery technology. Trovan has established a network of
distributors located in North America, South America, Europe, Asia, Australia,
Africa and the Middle East. Users of their technology include Volkswagen,
Daimler Benz, Coca Cola, Siemens, Nestle SA, Nissan, Merck, Samsung and
Hoechst/Aventis in the private sector, as well as 60 government agencies in 13
countries around the world.(6)

COMPETITIVE ADVANTAGES
----------------------

Based on in-house research, the existing RFID technology available for livestock
is centered around low frequency (30 to 300 KHz) tags and high frequency tags (3
to 30 MHz) which offer 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 over five years yet there has been
virtually no adoption of this technology 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 met the requirements of most users.

Our RFID technology will offer a higher frequency of 915 MHz that provides a
read range to a maximum of ten feet at a price point similar to that of bar code
tags. Our RFID tags will also include a bar code to ensure a seamless transition
for current bar code customers to adopt RFID technology. In addition, our RFID
tags will offer superior 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.
Through our communication with these various groups, they have continually
expressed their need to acquire RFID technology.


------------------------------------
(4) www.allflexusa.com
(5) www.destronfearing.com
(6) www.trovan.com


                                       8
<PAGE>

CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS
-------------------------------------------------

(a)  There is no certainty that we will be able to successfully operate
     profitably or make any distributions to the holders of our securities. We
     will be attempting to expand our business model into the livestock
     industry. We have limited business history in this new sector for you to
     analyze or to aid you in making an informed judgment as to the merits of an
     investment in our securities. Any investment in our common stock should be
     considered a high-risk investment because you will be placing funds at risk
     in an unproven market with unforeseen costs, expenses, competition and
     other problems to which start-up ventures are often subject. As we are an
     early stage company, our prospects must be considered in light of the
     risks, expenses and difficulties encountered in establishing a market
     position in a new industry.

(b)  We currently have negative working capital and limited sources of
     liquidity. We require substantial capital to pursue our operating strategy
     and we currently have limited cash for operations. Until we can obtain
     revenues sufficient to fund working capital needs, we will be dependent
     upon external sources of financing. We require substantial working capital
     to continue the funding of our business. We do not have any commitments to
     raise additional capital and there is no certainty that any additional
     funds required to operate our business will be available on favorable
     terms, if at all. If adequate funds are not available or are not available
     on acceptable terms, we may not be able to fund future expansion, take
     advantage of unanticipated acquisition opportunities, develop or enhance
     services or products or respond to competitive pressures. Such inability
     could have a material adverse effect on our business, operations and
     financial condition. If additional funds are raised through the issuance of
     equity or convertible debt securities, the percentage ownership of
     shareholders of Advanced ID will be reduced, shareholders may experience
     additional dilution, and such securities may have rights, preferences and
     privileges senior to those of our current shareholders.

(c)  We are dependent on key management personnel. Our success is dependent
     upon, among other things, the services of Barry Bennett, CEO, president and
     director. The loss of Mr. Bennett's services, for any reason, could have a
     material adverse effect on our business, operations and financial
     condition. We do not have an employment agreement or key-man life insurance
     policy for Mr. Bennett. 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.

(d)  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.

(e)  We have paid no dividends on our common stock and we cannot assure you that
     we will achieve sufficient earnings to pay cash dividends on our common
     stock in the future. We intend to retain earnings to fund our operations.
     Therefore, we do not anticipate paying any cash dividends on our common
     stock in the foreseeable future.

(f)  We are currently controlled by one principal stockholder, Heritage Ventures
     Ltd., who owns approximately 42% of the outstanding common stock. This
     concentration of ownership may have the effect of delaying or preventing a
     change in control of the company. We lack disinterested, independent
     directors as our directors have a direct financial interest in the company.

(g)  All marketing will be done in-house and through international distributors.
     There is no certainty that our marketing strategies will be effectively
     implemented, or that these arrangements will result in sufficient revenues
     to produce net earnings.

(h)  Our survival depends on our ability to adapt to technological challenges.
     The market in which we compete is characterized by rapidly changing
     technology, evolving industry standards, low barriers to entry,
     enhancements to existing microchips, and evolving customer needs.
     Consequently, our success will depend on our ability to adapt to rapidly
     changing technology, evolving industry standards, low barriers to entry,
     technology enhancements, and evolving customer needs and to continually
     improve the performance, features and reliability of our microchips and
     services. Our failure to adapt to such changes could have a material
     adverse effect on our business, operations, and financial

                                       9
<PAGE>


     condition. In addition, the adaptation to such changes could require
     substantial capital resources that may not be available when required or
     may not be available on favorable terms, which could have a material
     adverse effect on our business, operations and financial condition.

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

(k)  We may be subject to product obsolescence. 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 evolve 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. 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.

(l)  We may be subject to misappropriation of our intellectual property. We have
     entered into confidentiality and assignment agreements with our employees
     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
----------

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.

EMPLOYEES
---------

We presently have six full-time employees and one part-time employee. We have
entered into consulting agreements with six other parties to perform such duties
as technical support, marketing and sales.

REPORTS TO SECURITY HOLDERS
---------------------------

Effective October 17, 2002 we became a fully reporting company under the
requirements of the Exchange Act, and to date we have filed the necessary
quarterly and other reports with the Securities and Exchange Commission.
Although we are not


                                       10
<PAGE>


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 sub-lease office premises until August 31,
2007. We have committed to leasing approximately 2,304 rentable square feet and
are obligated to pay basic rent and operating costs for a total cost of $1,500
per month. The real property utilized by Advanced ID is in good condition,
adequate for present operations and adequately covered by insurance. We also
maintain insurance coverage for commercial general liability including blanket
contractual liability, tenant's legal liability, non-owned automobile and cross
liability coverage.

ITEM 3.  LEGAL PROCEEDINGS.

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

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

None.

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
for the fourth quarter of Fiscal 2002 were obtained from the OTCBB and reflect
inter-dealer prices, without retail mark-up, mark-down or commission and may not
represent actual transactions.

<TABLE>
<CAPTION>
                                     Fiscal 2003                                      Fiscal 2002
                             High                     Low                     High                     Low
<S>                         <C>                      <C>                      <C>                      <C>
First Quarter               $0.17                    $0.06                    n/a                      n/a
Second Quarter              $0.36                    $0.09                    n/a                      n/a
Third Quarter               $0.49                    $0.22                    n/a                      n/a
Fourth Quarter              $1.16                    $0.28                    $0.52                    $0.14
</TABLE>

HOLDERS
-------

As of March 18, 2004, the approximate number of shareholders of common stock of
Advanced ID was 1,602.


                                       11
<PAGE>


DIVIDENDS
---------

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

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
------------------------------------------------------------------

<TABLE>
<CAPTION>
+---------------------------------+------------------------------+--------------------------------+------------------------------+
|  Plan Category                  |  Number of Securities to be  |  Weighted Average Exercise     |  Number of Securities        |
|                                 |  Issued Upon Exercise of     |  Price of Outstanding Options, |  Remaining Available for     |
|                                 |  Outstanding Options,        |  Warrants and Rights           |  Future Issuance             |
|                                 |  Warrants and Rights         |                                |                              |
+---------------------------------+------------------------------+--------------------------------+------------------------------+
<S>                                <C>                            <C>                              <C>
|                                 |  (a)                         |  (b)                           |  (c)                         |
+---------------------------------+------------------------------+--------------------------------+------------------------------+
|  Equity Compensation Plans      |                              |                                |                              |
|  Approved by Security Holders   |                              |                                |                              |
+---------------------------------+------------------------------+--------------------------------+------------------------------+
|  Equity Compensation Plans Not  |  3,500,000(1)                |                                |  2,140,983(2)                |
|  Approved by Security Holders   |                              |                                |                              |
+---------------------------------+------------------------------+--------------------------------+------------------------------+
|  Total                          |  3,500,000                   |                                |  2,140,983                   |
+---------------------------------+------------------------------+--------------------------------+------------------------------+
</TABLE>


(1) These shares were authorized in an Employees/Consultants Compensation Plan
which was filed on December 19, 2002 with the Securities and Exchange Commission
in an S-8 Registration Statement.

(2) Advanced ID issued 1,250,000 shares on February 7, 2003 to a consultant;
99,017 shares on October 22, 2003 to a related party consultant; and 10,000
shares on December 11, 2003 for legal services.

RECENT SALES OF UNREGISTERED SECURITIES
---------------------------------------

(i) Fiscal 2002 Transactions
----------------------------

On October 17, 2002, Advanced ID 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 USA and a
recapitalization of Advanced ID. USA had then outstanding shares of 10,625,724
and agreed to return 3,623,725 for cancellation, leaving 7,000,999 shares
outstanding. USA then issued 28,000,000 shares in exchange for the 200 shares
outstanding of Advanced ID and $490,614 in debt. This issuance was exempt from
registration under Section 4(2) of the Securities Act of 1933.

(ii) Fiscal 2003 Transactions
-----------------------------

On July 7, 2003, we issued 320,000 shares of our Common Stock for consulting
services rendered in connection with product development and engineering.

On July 16, 2003, we issued 265,053 shares of our Common Stock for consulting
services rendered in connection with the development of sales and distribution
channels.

On August 22, 2003, we issued 44,099 shares of our Common Stock for consulting
services rendered in connection with the development of sales and distribution
channels.

On October 9, 2003, we issued 190,000 shares of our Common Stock to one of our
Officers as consideration for his agreement to join the company in October 2002,
the payment of which has been outstanding since this date.

On October 17, 2003, we issued 320,000 shares of our Common Stock to one our
Directors who exercised 320,000 warrants at $0.10 per warrant for total proceeds
of $32,000.


                                       12
<PAGE>


On October 20, 2003, we issued 100,000 shares of our Common Stock to one of our
Directors who exercised 100,000 options at $0.10 per option for total proceeds
of $10,000.

On November 18, 2003, we issued 100,000 shares of our Common Stock to one of our
Directors who exercised 100,000 options at $0.10 per option for total proceeds
of $10,000.


 (iii) Fiscal 2004 Transactions
 ------------------------------

On January 12, 2004, we issued a total of 500,000 shares of our Common Stock to
four investors who purchased such shares pursuant to a Section 4(2) subscription
agreement.

On January 12, 2004, we issued 25,000 shares of our Common Stock as a finder's
fee rendered in connection with the execution of the above noted subscription
agreements.

On January 14, 2004, we issued 75,000 shares of our Common Stock for consulting
services rendered in connection with corporate communications.

On March 1, 2004, we issued 30,000 shares of our Common Stock for consulting
services rendered in connection with financial public relations and business
development.

All of the above stock issuances were considered exempt from registration by
reason of Section 4(2) of the Securities Act of 1933.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS.


RESULTS OF OPERATIONS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2003 AND
----------------------------------------------------------------------
DECEMBER 31, 2002.
------------------

The current year's net loss was larger by $286,395 or 383% versus last year due
largely to higher operating expenses as explained in detail below.

Revenue
-------

Revenue during the current fiscal year increased by $313,155 or 48% over last
year. The increase in revenues is due largely from a higher 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 due to
increased frequency by various municipal animal control agencies to set policy
and by-laws for the permanent tagging of pets in their respective communities.

With the continued adoption of permanent tagging of animals and with our focus
to expand the use of microchips into the livestock industry, we believe these
planned initiatives will continue to elevate our market presence and translate
into higher revenues for future reporting periods.

Operating Expenses
------------------

Cost of Revenues

Cost of Revenues for the current year ended increased by $132,202 or 36% over
the previous year. The increase in Cost of Revenues is attributed to a higher
volume of products sold during Fiscal 2002. All of our products purchased for
resale in the companion animal and biological sciences markets are paid for with
US Dollars and sold in Canadian Dollars.


                                       13
<PAGE>


Gross Margins

Our gross margins increased from 43% in fiscal 2002 to 48% during fiscal 2003.
Our gross margins have improved for the current year because of a weaker US
Dollar relative to the Canadian Dollar, and due to larger volume discounts on
purchased products.

Selling, General and Administrative

The current year's selling, general and administrative expenses were higher by
$416,212 or 113% over last year largely because of $244,184 in higher consulting
fees related to the development of our RFID livestock technology, and the
development of distribution and manufacturing channels. We also had higher
public company expenses of $31,062 which included filing fees, investor
relations, transfer agent fees, press releases, audit fees and legal fees, and
which was only prevalent in the last quarter of the previous year. Other higher
selling, general and administrative expenses during fiscal 2003 resulted from
$58,900 in non-cash compensation expense related to a share issuance to a
related party (See note 8 to the audited financials). The balance of higher
general and administrative expenses during the current year is attributed to
$43,247 in higher salary expenses, $23,937 in higher product development
expenses and $21,613 in higher marketing expenses offset by lower expenses in
other general business expenditures.

Other Income
------------

In December 2002, we entered into a settlement agreement with a former vendor
that had filed a claim against us in prior years. We had accrued approximately
$50,511 related to this claim in prior years as a note payable. The debt was
forgiven in a settlement agreement and recorded as other income in 2002.

Interest Expense
----------------

Interest expense increased by $625 or 2% during the current year over last year
due to $8,368 in non-cash interest charges related to a convertible debenture
issued on April 28, 2003 (See Note 8 to the audited financials). Excluding this
non-cash charge, interest expense decreased due to the conversion of some
unsecured notes into common shares during Fiscal 2003 that previously accrued
interest and due to the payoff of certain notes during Fiscal 2003.

Liquidity and Capital Resources
-------------------------------

As at December 31, 2003, we had cash and cash equivalents of $60,572.

During the current year ended, net cash used in operating activities was lower
by $126,310 or 69% as compared to last year. Cash used by operating activities
during the current year resulted primarily from our net loss, higher inventory
and higher other current assets offset by depreciation, stock issued for
services, non-cash interest, lower receivables, higher accounts payable and
accrued liabilities.

For the year ended December 31, 2003, net cash used by investing activities was
higher by $13,178 or 355% over the previous year. Cash used by investing
activities resulted from our purchase of computer hardware, software and office
furniture. We have no commitments for future purchases of capital assets.

For the year ended December 31, 2003, net cash provided by financing activities
provided lower cash of $89,614 or 45% as compared to the previous year. During
the current year, cash has been provided through advances from a related party,
issuance of notes payable and proceeds from the exercise of warrants and options
offset by principal payments of notes payable.

Subsequent to December 31, 2003, we secured $250,000 in gross proceeds on
January 12, 2004 pursuant to a share subscription agreement with four third
party investors. In addition, we secured $1 million in gross proceeds on January
20, 2004 and we have also entered into a term sheet on February 2, 2004 to
secure an additional $1 million from the same private equity fund (See Note 10
of the audited financials).

ITEM 7.  FINANCIAL STATEMENTS.


                                       14
<PAGE>

                          INDEPENDENT AUDITORS' REPORT


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

We have audited the accompanying consolidated balance sheet of Advanced ID
Corporation as of December 31, 2003, and the related consolidated statements of
operations, stockholders' deficit and comprehensive income and cash flows for
each year in the two-year period ended December 31, 2003. These financial
statements are the responsibility of Advanced ID's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Advanced ID Corporation as of
December 31, 2003 and the results of its operations and its cash flows for each
year in the two-year period ended December 31, 2003 in conformity with
accounting principles generally accepted in the United States of America.


Malone & Bailey, PLLC
Houston, Texas

March 18, 2004


<PAGE>


                             ADVANCED ID CORPORATION
                           CONSOLIDTATED BALANCE SHEET
                                DECEMBER 31, 2003


<TABLE>
<CAPTION>
                                          ASSETS
CURRENT ASSETS:
<S>                                                                              <C>
   Cash                                                                          $     60,572
   Trade accounts receivable, net of allowance for doubtful accounts of $4,073         35,371
   Other receivables                                                                    7,197
   Inventory                                                                           38,155
   Prepaid expenses                                                                     4,563
                                                                                 ------------
                         Total current assets                                         145,858
FIXED ASSETS, net                                                                      16,290
                                                                                 ------------
                         Total assets                                            $    162,148
                                                                                 ============


                          LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
   Notes payable                                                                 $    137,333
   Advances from related parties                                                       28,465
   Accounts payable                                                                    89,167
   Accrued liabilities                                                                 32,313
                                                                                 ------------
                         Total current liabilities                                    287,278
                                                                                 ------------

COMMITMENTS

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;  37,699,168 shares
     outstanding                                                                      376,992
   Additional paid-in capital                                                         652,082
   Accumulated deficit                                                             (1,155,336)
   Accumulated other comprehensive income                                               1,132
                                                                                 ------------
                         Total stockholders' deficit                                 (125,130)
                                                                                 ------------
                         Total liabilities and stockholders' deficit             $    162,148
                                                                                 ============
</TABLE>

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

<PAGE>

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 FOR THE YEARS ENDED DECEMBER 31, 2003 and 2002



<TABLE>
<CAPTION>
                                                                   2003            2002
                                                              ------------    ------------
<S>                                                           <C>             <C>
REVENUES                                                      $    962,988    $    649,833
COST OF REVENUES                                                   500,971         368,769
                                                              ------------    ------------
      Gross profit                                                 462,017         281,064

SELLING, GENERAL AND ADMINSTRATIVE EXPENSE                         786,137         369,925
                                                              ------------    ------------

      Loss from operations                                        (324,120)        (88,861)
                                                              ------------    ------------

OTHER INCOME (EXPENSE):
   Other income                                                       --            50,511
   Interest expense                                                (37,082)        (36,457)
                                                              ------------    ------------
                                                                   (37,082)         14,054
                                                              ------------    ------------

      Net loss                                                $   (361,202)   $    (74,807)
                                                              ============    ============


      Basic and diluted loss per share                        $      (0.01)   $       --
                                                              ============    ============

      Basic and diluted weighted average shares outstanding     36,618,904      29,439,561
                                                              ============    ============
</TABLE>


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

<PAGE>

                             ADVANCED ID CORPORATION
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
                            AND COMPREHENSIVE INCOME
                 FOR THE YEARS ENDED DECEMBER 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                                                        Total
                                                                     Additional      Accumulated                    Stockholders'
                                                                      Paid -in      Comprehensive      Retained        Equity
                                            Common Stock              Capital          Income          Deficit        (Deficit)
                                            ------------              -------          ------          -------        ---------
                                       Shares         Amounts
                                       ------         -------

<S>                                    <C>                <C>            <C>                <C>           <C>            <C>
BALANCE, December 31, 2001             28,000,000         280,000        (279,862)          59,509        (719,327)      (659,680)
Comprehensive loss:
   Net loss                                     -               -               -                -         (74,807)       (74,807)
   Foreign currency                             -               -               -           (4,171)              -         (4,171)
                                                                                                                    --------------
      Total comprehensive loss                  -               -               -                -               -        (78,978)
                                                                                                                    -------------

Contribution to capital for debt
forgiven                                        -               -         505,724                -               -        505,724

Reverse Acquisition                     7,000,999          70,010         (70,010)               -               -              -
                                    -------------  --------------  --------------- ---------------  --------------  -------------
BALANCE, December 31, 2002             35,000,999  $      350,010  $      155,852  $        55,338  $     (794,134) $    (232,934)
                                    =============  ==============  ==============  ===============  ==============  =============

Comprehensive loss:
   Net loss                                     -               -               -                -        (361,202)      (361,202)
   Foreign currency                             -               -               -          (54,206)              -        (54,206)
                                                                                                                    -------------
      Total comprehensive loss                  -               -               -                -               -       (415,408)
                                                                                                                    --------------

Shares issued for:

   Services                             2,178,169          21,782         213,932                -               -        235,714

   Options/Warrants Exercised             520,000           5,200          46,800                -               -         52,000

Note Payable Discount                           -               -          37,641                -               -         37,641

Conversion of Debt to Equity                    -               -         197,857                -               -        197,857
                                    -------------  --------------  --------------  ---------------  --------------  -------------
BALANCE, December 31, 2003             37,699,168  $      376,992  $      652,082  $         1,132  $   (1,155,336) $    (125,130)
                                    =============  ==============  ==============  ===============  ==============  =============
</TABLE>



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

<PAGE>

                             ADVANCED ID CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002


<TABLE>
<CAPTION>
                                                                                   2003         2002
                                                                                 ---------    ---------
<S>                                                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                                      $(361,202)   $ (74,807)
   Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation                                                                   4,310           --
         Stock issued for services                                                 235,714           --
      Inventory allowance                                                               --       30,000
         Non-Cash interest                                                           8,368           --
      Debt forgiveness                                                                  --      (50,511)
      Change in assets and liabilities:
         Trade accounts receivable                                                  12,304      (29,902)
         Other receivables                                                           4,761      (11,958)
         Inventory                                                                  (2,118)      (6,261)
         Other current assets                                                       (2,007)        (647)
         Accounts payable                                                           37,862      (35,991)
         Accrued liabilities                                                         4,571       (3,670)
                                                                                 ---------    ---------
Net cash used in operating activities                                              (57,437)    (183,747)
                                                                                 ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of fixed assets                                                        (16,889)      (3,711)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Advances from related party                                                    50,000          --
   Proceeds from notes payable                                                      41,127      205,763
     Proceeds from Options/Warrants Exercised                                       52,000          --
   Principal payments on notes payable                                             (32,043)      (5,065)
                                                                                 ---------    ---------
Net cash provided by financing activities                                          111,084      200,698
                                                                                 ---------    ---------


Effect of Exchange Rate Changes on Cash                                            (12,602)         427
                                                                                 ---------    ---------

NET DECREASE IN CASH                                                                24,156       13,667

CASH AND CASH EQUIVALENTS, beginning of year                                        36,416       22,749
                                                                                 ---------    ---------

CASH AND CASH EQUIVALENTS, end of year                                           $  60,572    $  36,416
                                                                                 =========    =========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Payment of interest                                                           $  26,292    $  35,821

NON CASH FINANCING ACTIVITIES:
   Debt exchanged for common stock in reverse acquisition                        $ 197,857    $ 505,724
</TABLE>



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

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity
----------------

Advanced ID Corporation (Advanced ID) was incorporated in South Dakota on August
13, 1990. Advanced ID is in the business of marketing radio frequency
identification devices (RFID) and proprietary software for the purpose of
identifying animals in the companion animal and biological sciences sectors.
Advanced ID is a re-seller of products manufactured by Avid Marketing Inc. and
its revenues are generated throughout Canada. Advanced ID has also developed
RFID technology for the global livestock industry with commercialization of such
products expected for fiscal 2004.

Principles of consolidation
---------------------------

All significant inter-company accounts and transactions have been eliminated in
consolidation.

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. In 2002, Advanced ID recorded an allowance for obsolete inventory of
$30,000.

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.

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

As nearly all operations are conducted in Canada, the Canadian dollar is the
functional currency. All balance sheet accounts have been translated at the
current exchange rate as of December 31, 2003. 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' deficit.

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

Revenue is recognized when the earning process is complete and the risks and
rewards of ownership have transferred to the customer, which is generally
considered to have occurred upon shipment of the finished product or performance
of services

An allowance for doubtful accounts is provided based on credit experience.

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

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

Impairment losses are recorded on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash flows estimated
to be generated by those assets are less than the assets' carrying amount. No
impairment losses have been recorded since inception.

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

The Company's financial instruments consist of cash and cash equivalents,
receivables and debt. The carrying amount of these financial instruments
approximates fair value due either to length of maturity

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


or interest rates that approximate prevailing market rates unless otherwise
disclosed in these consolidated financial statements.

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

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

Loss Per Common Share
---------------------

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

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

Diluted net loss per common share is computed by dividing the net loss
applicable to common stockholders, adjusted on an "as if converted" basis, by
the weighted average number of common shares outstanding plus potential dilutive
securities. For 2003 and 2002, potential dilutive securities had an
anti-dilutive effect and were not included in the calculation of diluted net
loss per common share.

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

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

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

Certain 2002 amounts have been reclassified to conform to 2003 presentation.

Recent Accounting Pronouncements

Advanced ID does not expect the adoption of recently issued accounting
pronouncements to have a significant impact on its results of operations,
financial position or cash flow.

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

The Company has elected to follow APB No. 25, and related Interpretations in
accounting for its employee stock options because, as discussed below, the
alternative fair value accounting provided for under SFAS No. 123 requires the
use of option valuation models that were not developed for use in valuing
employee stock options. Under APB No. 25, no compensation expense is recognized
if the exercise price of the Company's employee stock options equals the market
price of the underlying stock on the date of grant. Advanced ID recognized
$58,000 and $0 of compensation in 2003 and 2002, respectively under APB No. 25.

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

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

future amounts because options vest over several years and generally expire upon
termination of employment, and additional options may be granted in future
years.


On April 2, 2003, Advanced ID's board of directors approved the issuance of
options to acquire 850,000 shares of common stock at $0.10 per share to four
directors. The options vest 50% on October 17, 2003 and 50% on October 17, 2004.
As of December 31, 2003, 200,000 of such options were exercised leaving a
balance of 650,000.

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


<TABLE>
<CAPTION>
                                                                               Twelve Months Ended
                                                                                   December 31,
                                                                                   ------------
                                                                             2003               2002
                                                                        ---------------    --------------

<S>                                                                     <C>                <C>
                Net loss, as reported                                   $     (361,202)    $      (74,807)
                                                                        ==============     ==============

             Deduct: Total stock-based employee
             compensation expense determined under the
             fair value based method for all awards                            (37,773)                 -
                                                                        --------------     --------------
                Pro forma net loss                                      $     (398,975)    $      (74,807)
                                                                        ==============     ==============

                Pro forma net loss per share:
                Basic and diluted - as reported                         $           (0.01) $        (0.00)
                                                                        =================  ==============
                Basic and diluted - pro forma                           $           (0.01) $        (0.00)
                                                                        =================  ==============
</TABLE>

The fair value of each option granted is estimated on the date of grant using
the Black-Scholes option-pricing model with the following weighted average
assumptions: dividend yield $0, expected volatility of 100%, risk-free interest
rate of 4.0%, and expected lives of 5 years.



NOTE 2 - REVERSE ACQUISITION

On October 17, 2002 Advance ID 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 USA and a recapitalization of
Advanced ID. 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 in exchange for 100% of the outstanding shares of Avid
Canada Corporation. Avid Canada's majority stockholder forgave $505,724 in debt
which is reflected as a capital contribution in the accompanying statement of
stockholders' equity.

During 2003, Advanced ID recorded $197,857 of notes payable as contributed
capital related to the reverse acquisition. The debt was with the former parent
company of Avid Canada Corporation and was in dispute at December 31, 2002.
During 2003, Advanced ID reached an agreement with Avid's former parent and
recorded the reduction of notes payable as an increase in additional paid in
capital.

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - NOTES PAYABLE

Notes payable at December 31, 2003 consists of the following:


<TABLE>
<CAPTION>
<S>                                                                                    <C>
       Note payable, bearing interest at 1.5% per month, unsecured and due
           on demand.                                                                  $       70,747
       Notes payable to two individuals bearing interest at 2% per month,
           unsecured and due on demand.                                                        62,717
       Note payable to third party bearing no interest, unsecured and due
           on demand.                                                                           3,869
                                                                                       --------------
                                                                                       $      137,333
                                                                                       ==============
</TABLE>


NOTE 4 - COMMON STOCK

In December 2002, Advanced ID created the 2002 Professional/Employee/Consultant
Stock Compensation Plan. The purpose of the plan is to provide compensation in
the form of common stock to individuals providing services to Advanced ID. The
plan provides up to 3,500,000 shares of common stock to be issued at the
discretion of the Board of Directors. During 2003, Advanced ID issued 2,178,169
shares of common stock valued at $235,714 using the stock price on the date
issued to the following: 1,250,000 to a third party consultant, 728,169 shares
to two members of the board of directors for consulting services, 190,000 to the
chief financial officer as consideration for becoming an employee, and 10,000
shares for legal services.

Advanced ID issued 320,000 shares of common stock during 2003 related to the
exercise of warrants, resulting in proceeds totaling $32,000.

Advanced ID issued 200,000 shares of common stock during 2003 related to the
exercise of options, resulting in proceeds totaling $20,000.



NOTE 5 - 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 $988,000 at December 31, 2003, and will expire in various years
through 2022. Advanced ID recorded an increase in the valuation allowance of
$143,000 and $16,000 for the years ended December 31, 2003 and 2002,
respectively.

Deferred income taxes consist of the following at December 31, 2003:

                                            2003
                                       ---------------
Long-term:
   Deferred tax assets                 $      336,000
   Valuation allowance                       (336,000)
                                       --------------
                                       $           --
                                       ==============

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 6 - COMMITMENTS

Consulting Agreement

On May 21, 2002, Advanced ID entered into a consulting agreement with a member
of the board of directors related to the development of the company's various
RFID products. The agreement is for three years with compensation determined
based on hours worked at $175 per hour. The agreement also gives the director
the right to purchase up to 320,000 shares of Advanced ID common stock at $0.10
per share. The warrants vest immediately and the right to purchase these shares
expires June 2004. Such warrants were exercised on October 17, 2003. The fair
value of the warrants granted was estimated on the date of grant using the
Black-Scholes option-pricing model with the following assumptions: no dividend
yield and expected volatility of 0.001%; risk-free interest rate of 4.0%, and an
expected life of 2 years. No compensation cost was recognized related to these
warrants because the fair value calculated was $0.

Employment Agreement

On February 28, 2001, Advanced ID entered into an employment agreement with the
President and Chief Operating Officer for a period of three years and eleven
months with an annual salary of $62,000. In addition, Advanced ID was required
to issue 500,000 shares of Advanced ID common stock in conjunction with the
reverse acquisition discussed in Note 2. As of December 31, 2003, 500,000 shares
have been issued.

Operating Lease

Advanced ID entered into a sub-lease on June 1, 2003 for 2,304 square feet of
office space with such term expiring August 31, 2007. Total rent expense for
2003 and 2002 was approximately $23,930 and $28,534, respectively.

At December 31, 2003, future minimum lease payments under this operating lease
are as follows:



        2004                                            $       18,000
        2005                                                    18,000
        2006                                                    18,000
        2007                                                    12,000
                                                        --------------
                                                        $       66,000
                                                        ==============

NOTE 7 - STOCK OPTIONS AND WARRANTS

Options:

On April 2, 2003 pursuant to Advanced ID's Stock Option and Incentive Plan (the
"Plan"), Advanced ID's board of directors approved the issuance of options to
acquire 850,000 shares of common stock at $0.10 per share to four directors.
Under the Plan, Advanced ID is allowed to issue options up to 10% of the issued
and outstanding Common Stock of the Company. The options vest 50% on October 17,
2003 and 50% on October 17, 2004.

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

        The following table summarizes stock option activity:

Outstanding, January 1, 2003                                              -
Granted                                                             850,000
Canceled or expired                                                       -
Exercised                                                          (200,000)
                                                             --------------
Outstanding, December 31, 2003                                      650,000
                                                             ==============
Exercisable at December 31, 2003                                    650,000
                                                             ==============
Weighted-average grant-date fair value of
   options, granted during the year                          $       .0762
                                                             =============
Weighted-average remaining, years of contractual life                    9
                                                             =============


Warrants:

During 2003, Advanced ID issued warrants to acquire 250,000 shares of Advanced
ID common stock at $0.25 per share in conjunction with a $50,000 note payable.
The warrants expire on April 28, 2006. The note was discounted by $37,641, which
is the fair value on the date issued. The fair value was calculated using the
Black-Scholes option-pricing model with the following weighted average
assumptions: dividend yield $0, expected volatility of 100%, risk-free interest
rate of 4.0%, and expected lives of 2 years

On May 21, 2002, Advanced ID entered into a consulting agreement with a member
of the board of directors related to the development of various RFID products of
Advanced ID. Included in the agreement was a warrant to purchase 320,000 shares
of Advanced ID common stock at $0.10 per share. The options vest immediately and
the right to purchase these shares expire June 2004. The fair value of the
option granted was estimated on the date of grant using the Black-Scholes
option-pricing model with the following assumptions: no dividend yield and
expected volatility of 0.001%; risk-free interest rate of 4.0%, and an expected
life of 2 years. No compensation cost was recognized related to these options
because the fair value calculated was $0. On October 17, 2003, the warrants were
exercised and Advanced ID received proceeds totaling $32,000.

As of December 31, 2003, Advanced ID only had the 250,000 warrants noted above
outstanding. These warrants expire on April 28, 2006.



NOTE 8 - RELATED PARTY TRANSACTIONS

Advances from related parties includes an unsecured advance from Advanced ID's
President totaling approximately $7,738.

On April 28, 2003, Advanced ID signed a convertible debenture agreement with a
Director. The lender provided a loan for $100,000, with $50,000 received upon
execution and the balance to be received upon approval by the Canadian Cattle
Identification Agency for Advanced ID's livestock RFID tag. At December 31,
2003, Advanced ID had received $50,000 under the agreement. The balance is due
on April 28, 2006 and bears interest at 10% per annum. The note is convertible
into common stock at $0.25 per share, the fair value on the date of the note. In
addition, Advanced ID issued third party warrants to acquire 250,000 shares of
Advanced ID common stock at $0.25 per share. The warrants expire on April 28,
2006. The note was discounted by $37,641, which is the fair value assigned to
the

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

warrants. The discount is being amortized over the term of loan. During the
twelve months ended December 31, 2003, Advanced ID recorded $8,368 of interest
expense related to the discount on the note. The net balance of the note at
December 31, 2003 was $20,727.

Advanced ID paid consulting fees to members of the board of directors totaling
approximately $119,833 in 2003 of which $96,814 was paid through the issuance of
common stock.

On October 9, 2003, 190,000 shares of our Common Stock were issued to one of our
Officers as consideration for his agreement to join Advanced ID. Advanced Id
recorded $58,900 of expense in 2003 for the issuance of the stock based on the
closing price on the date issued.

NOTE 9 - CONCENTRATIONS OF CREDIT RISK

As of December 31, 2003 and 2002, amounts due from Canadian customers which
exceeded 10% of trade accounts receivables amounted to an aggregate of $29,654
from three customers and $36,695 from three customers, respectively.

Four customers accounted for 15%, 15%, 14% and 11%, respectively, of total
revenues in 2003 and four customers accounted for 30%, 18%, 16% and 10%,
respectively, of total revenues in 2002.

Two suppliers accounted for 100% of total purchases of inventory for both 2003
and 2002.


NOTE 10 - SUBSEQUENT EVENTS

On January 12, 2004, Advanced ID issued a total of 500,000 shares of our Common
Stock to four third party investors for $250,000 and warrants to acquire 122,500
shares of common stock at $1.00 per share. The warrants have a three year life.

On January 14, 2004, Advanced ID issued 75,000 shares of our Common Stock for
consulting services rendered in connection with corporate communications. The
shares will be valued based on the closing price on the date issued and
expensed.

On January 20, 2004, Advanced ID, AIDO Acquisition, Inc., a Hawaii corporation
and a wholly-owned subsidiary of Advanced ID, and Universal Pet Care, Inc., a
Hawaii corporation ("UPC") entered into an Agreement and Plan of Merger (the
"Merger Agreement"). The merger contemplated by the Merger Agreement (the
"Merger") was also completed on January 20, 2004. As a result of the Merger, UPC
became a wholly-owned subsidiary of Advanced ID and all outstanding shares of
UPC's capital stock held by its sole stockholder were converted into 100 shares
of Advanced ID common stock. UPC is a private, development stage company formed
to pursue opportunities related to identifying and tracking companion animals
utilizing radio frequency identification microchips. As of January 20, 2004, UPC
had immaterial assets and liabilities other than its obligations under and
proceeds from the debentures described below.

Immediately prior to the Merger, UPC entered into a Convertible Debenture
Purchase Agreement (the "Purchase Agreement"), dated as of January 20, 2004,
with HEM Mutual Assurance LLC, an accredited investor located in Denver,
Colorado ("HEM"), pursuant to which it sold and issued convertible debentures to
HEM in an aggregate principal amount of $1,000,000 in a private placement
pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as
amended. Two debentures in the aggregate principal amount of $1,000,000 were
issued for gross proceeds of $1,000,000 in cash (the "Debentures"). Each of the
Debentures has a maturity date of January 20, 2009, subject to earlier

<PAGE>

                             ADVANCED ID CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

conversion or redemption pursuant to its terms, and bears interest at the rate
of 1% per year, payable in cash or shares of common stock at the option of the
holder of the Debentures. As a result of the Merger, Advanced ID has assumed the
rights and obligations of UPC in the private placement, including gross proceeds
raised through the sale of the Debentures, the Note issued by HEM to UPC, and
UPC's obligations under the Debentures and Purchase Agreement.

As a result of the Merger, $995,500 in principal amount of the First Debenture
is now convertible into unrestricted shares of Advanced ID common stock (the
"Common Stock") at a conversion price that is the lower of $0.95 or the average
of the three lowest closing per share bid prices for the Common Stock during the
40 trading days prior to conversion. $4,500 in principal amount of the Second
Debenture is also now convertible into unrestricted shares of Common Stock at a
conversion price of $0.01 per share. In February 2004, the $4,500 debenture was
converted into 450,184 shares of common stock and $400,000 of the $995,000
debenture was converted into 800,504 shares of common stock.

The conversion price and number of shares of Common Stock issuable upon
conversion of the First and Second Debenture (the "Debentures") is subject to
adjustment for stock splits, stock dividends, combinations and other dilutive
events. To satisfy its conversion obligations under the Debentures, Advanced ID
has placed 50,000,000 shares of Common Stock into escrow for potential issuance
to HEM upon conversion of the Debentures.

The Debentures may never be converted into an aggregate of more than 3,000,000
shares of Common Stock unless Advanced ID elects to increase the number of
shares held in escrow and obtains any required stockholder approval in
accordance with the rules and regulations of such exchange or market on which
Advanced ID's common stock is then listed. If the conversion rate of the
Debentures would require Advanced ID to issue more than an aggregate of
3,000,000 shares of Common Stock upon conversion of the Debentures and Advanced
ID has not elected to increase the number of shares held in escrow (or fails to
obtain any required stockholder approval for such proposed increase), Advanced
ID will be required to redeem the unconverted amount of the Debentures for 125%
of the principal amount thereof, plus accrued and unpaid interest.

In addition, the Debentures may not be converted if after such conversion the
holder would beneficially own more than 5% of Advanced ID's then outstanding
Common Stock, unless HEM waives this limitation by providing Advanced ID 75 days
prior notice.

Advanced ID has the right to redeem the Debentures, in whole or in part, at any
time upon 30 days advanced notice for 125% of the principal amount of the
outstanding Debentures being redeemed, plus accrued and unpaid interest. In
addition, if at any time any the Debentures are outstanding, Advanced ID
receives debt or equity financing in an amount equal to or exceeding Five
Million dollars ($5,000,000), Advanced ID is required to redeem the Debentures
for 150% of the amount of the then outstanding Debentures, less the amount of
the Note if not then repaid. If trading in the Common Stock is suspended on such
stock exchange or market upon which the Common Stock is then listed for trading
(other than suspensions of trading on such market or exchange generally or
temporary suspensions pending the release of material information) for more than
10 trading days, or if the Common Stock is de-listed from the stock exchange or
market on which it is then traded and not re-listed on another exchange or
market, Advanced ID shall redeem all then outstanding Debentures and any shares
of Common Stock held by HEM through prior conversions at an aggregate purchase
price as determined in the manner set forth in the Purchase Agreement. Advanced
ID would owe any interest penalty of 8% per year on any payments not made within
7 business days of a redemption request made pursuant to the preceding sentence.

<PAGE>

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

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

ITEM 8A. CONTROLS AND PROCEDURES.

(a) We carried out an evaluation, under the supervision and with the
participation of our management, including our Chairman and Chief Executive
Officer along with our Chief Financial Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures pursuant to
Exchange Act Rule 13a-14 under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). Based upon that evaluation, our Chief Executive Officer
along with our Chief Financial Officer concluded that as of March 8, 2004 our
disclosure controls and procedures (1) are effective in timely alerting them to
material information relating to the Company required to be included in our
periodic SEC filings and (2) are adequate to ensure that information required to
be disclosed by us in the reports filed or submitted by us under the Exchange
Act is recorded, processed and summarized and reported within the time periods
specified in the SEC's rules and forms.

(b) There have been no significant changes in our internal controls or in other
factors that could significantly affect internal controls subsequent to the date
we carried out our evaluation.

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

DIRECTORS AND OFFICERS
----------------------

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
four 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 and executive officers are as follows:

<TABLE>
<CAPTION>
NAME AND ADDRESS                                     AGE      POSITIONS HELD                     SINCE
<S>                                                  <C>      <C>                                <C>
Barry Bennett, Calgary, Alberta                      54       Director, President & CEO          October 2002
Seymour Kazimirski, Honolulu, Hawaii                 56       Director                           October 2002
Che Ki Li, Shenzhen, China                           56       Director                           May 2003
Hubert Meier, Kowloon, Hong Kong                     57       Director                           February 2003
Todd Noble, Calgary, Alberta                         40       Director, CFO & Secretary          October 2002
</TABLE>

BUSINESS EXPERIENCE OF OFFICERS AND DIRECTORS
---------------------------------------------

Barry Bennett, B.Sc., P.Ag. - Director, President & CEO. Prior to joining
Advanced ID, Mr. Bennett was General Manager of the Canadian Simmental
Association from August 1990 to February 2001. From February 1977 to August
1990, Mr. Bennett was with the Canadian Imperial Bank of Commerce where he
served in various positions with the Agriculture division and with his final
posting as the Alberta Regional Manager of Agriculture.

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. From 1980 to 1993, Mr. Kazimirski
established Florexotica Inc. where he was involved in the import/export of Asian
products.

Che Ki Li - Director. Mr. Li is Chairman of the Board and Managing Director of
Guide Trend Technology Company which he founded in 1980. Guide Trend is a
leading technology plastic manufacturer serving global companies such as
Siemens, Philips, Marantz, Denon, Daewoo, Bang & Olufsen and Minolta. Guide
Trend has over 500 employees operating in an 11,000 square meter facility that
is ISO and UL certified.


                                       15
<PAGE>

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 Hong Kong 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. From 1978 to 1993, Mr. Meier was with Eurosil where
he served as Sales Director, Managing Director and Board member.

Todd Noble, B.Comm., B.A., CFA - Director & CFO. Mr. Noble's work experience
includes being the CFO from July 2000 to May 2003 for GiveMePower Corporation,
an OTC bulletin board company in the field of software technology. Mr. Noble was
also a consultant specializing in finance, treasury, cash management and hedging
from December 1998 to July 2000. From September 1997 to November 1998, Mr. Noble
was the Treasurer of The Forzani Group Ltd., a national retailer listed on the
Toronto stock exchange. From August 1994 to August 1997, Mr. Noble was the
Treasury Manager of Agrium Inc., an international fertilizer producer listed on
the New York stock exchange.

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.

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. We
currently have no written employment agreements with any of our officers,
however, the following shows the annual salaries, bonuses and stock options for
our executive officers:

<TABLE>
<CAPTION>
+-------------------------------------------------------------------------------------------------------------------------+
| SUMMARY COMPENSATION TABLE                                                                                              |
+----------------------------------------------------------------+--------------------------------------------------------+
|                                                                | Long-Term Compensation                                 |
+----------------------+-----------------------------------------+------------------------------+-------------------------+
|                      | Annual Compensation                     | Awards                       | Payouts                 |
+----------------------+---------+-----------+-------------------+-----------+------------------+-------------------------+
|(a)        |   (b)    | (c)     |   (d)     | (e)               | (f)       |  (g)             |  (h)       (i)          |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
|Name and   |          |         |           | Other             |Restricted | Securities       |          |              |
|Name and   |          | Annual  |   Annual  | Annual            |Stock      | Underlying       |LTIP      | All Other    |
|Principal  | Fiscal   | Salary  |   Bonus   | Compensation      |Awards     | Options/SARs     |Payouts   | Compensation |
|Position   |  Year    | ($)     |   ($)     | ($)               |($)        | (#)              |($)       | ($)          |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
<S>          <C>        <C>         <C>       <C>                <C>          <C>               <C>         <C>
|Barry      |  2003    | $62,000 |   $0      | $0                |$0         | 250,000          |$0        | $0           |
|Bennett,   |  2002    | $62,000 |   $0      | $0                |$0         |       0          |$0        | $0           |
|CEO        |  2001    | $62,000 |   $0      | $0                |$0         |       0          |$0        | $0           |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
|Todd       |  2003    | $52,000 |   $0      | $0                |$0         | 200,000          |$0        | $0           |
|Noble,     |  2002    | $32,000 |   $0      | $0                |$0         |       0          |$0        | $0           |
|CFO        |  2000    | $0      |   $0      | $0                |$0         |       0          |$0        | $0           |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
</TABLE>



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

The following table sets forth, as of December 31, 2003, 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 (iv) all
officers and directors as a group.


(I) PERSONS BENEFICIALLY OWNING MORE THAN 5% OF OUTSTANDING COMMON STOCK
------------------------------------------------------------------------

<TABLE>
<CAPTION>
<S>                                          <C>                                                 <C>
Name of Beneficial Owners                   Number of Common Stock Beneficially Owned            Percentage of Ownership1

Heritage Ventures Ltd.                                      15,928,540                           42.3%
</TABLE>


                                       16
<PAGE>

(II) DIRECTORS OF ADVANCED ID
-----------------------------

<TABLE>
<CAPTION>
Name of Beneficial Owners                   Number of Common Stock Beneficially Owned            Percentage of Ownership1
<S>                                                                     <C>                         <C>
Barry Bennett                                                           501,000                     1.3%
Seymour Kazimirski                                                      955,669                     2.5%
Che Ki Li                                                               100,000                     0.3%
Hubert Meier                                                            640,000                     1.7%
Todd Noble                                                              200,000                     0.5%

(III) OFFICERS OF ADVANCED ID
-----------------------------

Name of Beneficial Owners                   Number of Common Stock Beneficially Owned            Percentage of Ownership1

Barry Bennett                                                           501,000                     1.3%
Todd Noble                                                              200,000                     0.5%


(IV) DIRECTORS AND OFFICERS OF ADVANCED ID AS A GROUP
-----------------------------------------------------

Name of Beneficial Owners                   Number of Common Stock Beneficially Owned            Percentage of Ownership1

Directors and Officers                                                2,396,669                     6.4%

</TABLE>

1 Based upon 37,699,168 issued and outstanding as of March 18, 2004.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

BARRY BENNETT
-------------

Advances from related parties include an unsecured advance from Barry Bennett,
Advanced ID's president and director, totaling approximately $7,138.

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 will be paid to certain creditors of AVID in exchange
for approximately $502,000 in debt.

SEYMOUR KAZIMIRSKI
------------------

In addition to being a director of Advanced ID, Mr. Kazimirski also provides
consulting services to Advanced ID for the purposes of assisting with product
and market development. For fiscal 2003, Mr. Kazimirski was paid consulting fees
totaling $76,930 of which $64,814 was paid in the form of common stock of
Advanced ID based on current market prices. This equated to a total of 408,169
shares.


                                       17
<PAGE>

HUBERT MEIER
------------

In addition to being a director of Advanced ID, Mr. Meier also provides
consulting services to Advanced ID for the purposes of assisting with product
and supplier development. For fiscal 2003, Mr. Meier was paid consulting fees
totaling $42,903 of which $32,000 was paid in the form of common stock of
Advanced ID based on current market prices. This equated to a total of 320,000
shares.

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K.

(a)      Exhibits

         (3)      Articles of Incorporation, By-Laws and Stock Option Plan.

                  (i)      Articles of Incorporation.1
                  (ii)     By-Laws. 1
                  (iii)    Stock Option and Incentive Plan. 2

         (10)     Material Contracts.

                  (i)      None.

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

                  This Computation appears in the Financial Statements.

         (21)     Subsidiaries of the Registrant.

                  (i)      AVID Canada Corporation, an Alberta private company
                           incorporated on November 26, 1993 is wholly owned by
                           the registrant.

                  (ii)     Universal Pet Care, Inc., a Hawaii private company
                           incorporated on August 25, 1994 is wholly owned by
                           the registrant.

         (31)     CEO and CFO Certifications. 2

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

1  Filed previously on Form 10-KSB dated April 28, 1999.
2  Filed herewith.


(b) Reports on Form 8-K.

On November 1, 2002, we filed a Form 8-K to announce our reverse merger
transaction between USA Sunrise Beverages, Inc. and AVID Canada Corporation. An
amendment to this Form 8-K was filed on January 22, 2003 to disclose the audited
financials pursuant to this transaction.

On January 3, 2003, we filed a Form 8-K to change our auditors to Malone &
Bailey, PLLC. The decision to change auditors was made pursuant to the reverse
merger transaction.

On February 10, 2004, we filed a Form 8-K to announce that Advanced ID
Corporation, AIDO Acquisition, Inc., a Hawaii corporation and a wholly-owned
subsidiary of Advanced ID, and Universal Pet Care, Inc., a Hawaii corporation,
entered into an Agreement and Plan of Merger.


                                       18
<PAGE>

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees. We incurred aggregate fees and expenses of approximately $16,650 and
$13,500 from Malone & Bailey, PLLC for the 2003 and 2002 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 $275 and $0 from Malone
& Bailey, PLLC for the 2003 and 2002 fiscal years respectively, for professional
services rendered for tax compliance, tax advice, and tax planning.

All Other Fees. We did not incur any other fees from Malone & Bailey, PLLC
during fiscal 2003 or fiscal 2002. 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 2003 and 2002 were approved
by the Board of Directors pursuant to its policies and procedures. We intend to
continue using Malone & Bailey, PLLC solely for audit and audit-related
services, tax consultation and tax compliance services, and, as needed, for due
diligence in acquisitions.

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.


<TABLE>
<CAPTION>
Advanced ID Corporation
(Registrant)

<S>                                                           <C>
By: /s/ Barry Bennett                                         Dated: March 19, 2004
Barry Bennett
Director, Chief Executive Officer and President
(As a duly authorized officer on behalf of the Registrant and as Principal Executive Officer)


By: /s/ Todd D. Noble                                         Dated: March 19, 2004
Todd D. Noble
Chief Financial Officer and Secretary
(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/ Barry Bennett                                      By:    /s/ Seymour Kazimirski
         Barry Bennett, Director                                       Seymour Kazimirski, Director
         March 19, 2004                                                March 19, 2004


By:      /s/ Che Ki Li                                          By:    /s/ Hubert Meier
         Che Ki Li, Director                                           Hubert Meier, Director
         March 19, 2004                                                March 19, 2004


By:      /s/ Todd Noble
         Todd Noble, Director
         March 19, 2004
</TABLE>


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