**UNITED      STATESSECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C.      20549**

**FORM      10-KSB**

**0-24001**

**WHERIFY      WIRELESS, INC.**

|                                                                                             |                                                                   |
|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| **Delaware**                                                                                | **76-0552098**                                                    |
| (State                or other jurisdiction ofincorporation or                organization) | (I.R.S.                EmployerIdentification                No.) |

**2000      Bridge Parkway, Suite 201**

**Redwood Shores, California      94065Tel: (650) 551-5200**

**None**

**Title of Each ClassCommon Stock, $.01 Par      Value**

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**PART      I**

**Items 1 and 2.      Description of Business and Properties.**

**INFORMATION      REGARDING FORWARD-LOOKING      STATEMENTS**

**General**

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**DESCRIPTION      OF OUR WIRELESS LOCATION PRODUCTS      BUSINESS**

**General**

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**Industry      Overview**

**Our Strategy for      Our      Wireless Location Products Business**

**Target Multiple      Applications**

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**Forge Strategic      Relationships**

**Leverage First Mover      Advantage**

**Wireless Location      Segment Products and Services**

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**Location Service      Center Overview**

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**Technology**

**Sales and      Marketing**

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**Manufacturing**

**Competition**

**Inventory, Raw      Materials, Right of Return and Seasonality**

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**Engineering      and Development Costs**

**Intellectual      Property**

**DESCRIPTION      OF OUR FACIAL COMPOSITE SOFTWARE      BUSINESS**

**Overview**

**Industry      Background**

**The FacesTMSolution**

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**Strategy**

**Products**

**Product Development      and Manufacturing**

**Marketing, Sales      and      Markets**

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**Intellectual      Property**

**Competition**

**GENERAL**

**Facilities**

**Working      Capital**

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**Employees**

**Legal      Proceedings**

***Venture Corporation      Limited, a Singapore Corporation v. Wherify Wireless, Inc, a California      Corporation***

***Lariviere, et      al.      v. I.Q. Biometrix, Inc., a Delaware Corporation, et al.***

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**RISK      FACTORS**

**RISKS      RELATED TO THE CORNELL CAPITAL TRANSACTION ANDSTANDBY EQUITY DISTRIBUTION      AGREEMENT**

***Existing      Stockholders Will Experience Significant Dilution From Our Sale Of Shares Under      The Standby Equity Distribution Agreement.***

***The Investor,      Under      The Standby Equity Distribution Agreement Will Pay Less Than The Then-Prevailing      Market Price Of Our Common Stock.***

***Cornell Capital      Partners Intends To Sell Their Shares of Common Stock In The Public Market      And      Have An Incentive Under The Standby Equity Distribution Agreement To Do So      Quickly, Which Sales May Cause Our Stock Price To Decline.***

***The Sale Of Our      Stock Under The Standby Equity Distribution Agreement Could Encourage Short      Sales By Third Parties, Which Could Contribute To the Further Decline Of Our      Stock Price.***

***Our Common Stock      Has Been Relatively Thinly Traded And We Cannot Predict The Extent To Which      A      Trading Market Will Develop.***

***We May Not Be      Able      To Access Sufficient Funds Under the Standby Equity Distribution Agreement      When      Needed.***

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***We      May Be Limited In The Amount We Can Raise Under The Standby Equity Distribution      Agreement Because Of Concerns About Selling More Shares Into The Market Than      The      Market Can Absorb Without A Significant Price Adjustment.***

***We Will Not Be      Able      To Use The Standby Equity Distribution Agreement When We Are In Possession      Of      Material Nonpublic Information.***

***We Will Not Be      Able      To Use The Standby Equity Distribution Agreement If The Shares To Be Issued      In      Connection With An Advance Would Result In Cornell Capital Partners Owning      More      Than 9.9% Of Our Outstanding Common Stock.***

***Cornell Capital      Partners May Sell Shares Of Its Common Stock After We Deliver An Advance Notice      During The Pricing Period, Which Could Cause Our Stock Price To      Decline.***

***The Standby Equity      Distribution Agreement Will Restrict Our Ability To Engage In Alternative      Financings.***

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***The      Pricing Is Relatively Expensive If Only A Small Part Of The Facility Is Ever      Used.***

***We May Not Be      Able      To Access the Full Commitment Amount Under The Standby Equity Distribution      Agreement Without Shareholder Approval.***

***Cornell Capital      Partners Intends To Sell Its Shares of Common Stock In The Public Market And      Has      An Incentive Under The Standby Equity Distribution Agreement To Do So Quickly,      Which Sales May Cause Our Stock Price To Decline.***

***Private Equity      Lines Are Relatively New Concepts And It Is Not Clear How The Courts And The      SEC      Will Treat Them.***

**RISKS      RELATED TO WHERIFY’S BUSINESS**

***We Currently      Lack      Liquidity, Have Limited Revenues And Had A Going-Concern Paragraph In Our Most      Recent Audit Reports.***

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***We      Need To Raise Substantial Additional Capital, Which May Result In Substantial      Dilution To Existing Stockholders.***

***We Determined      That      Our Disclosure Controls And Procedures Were Ineffective As of June 30, 2006,      They Have Been Ineffective For A Substantial Period Of Time, And We Recently      Had      To Restate Our Fiscal 2006 First Quarter Unaudited Interim Financial Statements      Due To The Ineffectiveness Of Our Disclosure Controls And Procedures. The      Ineffectiveness Of Our Disclosure Controls And Procedures, If Not Remedied,      Could Result In Material Misstatements Of Our Financial      Statements***

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***We Have Only      Recently Begun Production of Our WherifoneTM Product and May Encounter      Manufacturing Problems During the Production Process.***

***Our Software      Products Are Complex And May Contain Unknown Defects That Could Result In      Numerous Adverse Consequences.***

***We Have Not Yet      Signed A Nationally Known U.S. Wireless Carrier for our WherifoneTM Product and      the Terms of Any Such Agreement are Not Yet Known.***

***We Are The Product      Of A Merger Of Two Development Stage Companies, Have Limited Revenues And Have      A      Limited Operating History On Which To Evaluate Our Potential For Future      Success.***

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***We Depend On      Our      Key Personnel To Manage Our Business Effectively In A Rapidly Changing Market.      If We Are Unable To Retain Our Key Employees, Our Business, Financial Condition      And Results Of Operations Could Be Harmed.***

***Fluctuations      In Our      Business And Operating Results May Materially And Adversely Affect The Trading      Price Of Our Common Stock.***

***Our Markets Are      Highly Competitive, And Our Failure To Compete Successfully Would Limit Our      Ability To Sell Our Products, Attract And Retain Customers And Grow Our      Business.***

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***Our Wireless      Location Product And Technology Are New And May Not Be Accepted In The      Market.***

***Standards In      Wireless Communications Industry Are In Flux, And If We Are Unable To Comply      With These Industry Standards, Our Business Will Be Harmed.***

***Changes In The      Government Regulation Of Our Wireless Location Product Or Wireless Carriers      Could Harm Our Business.***

***If Our Wireless      Locator Products Fail To Achieve Broad Market Acceptance, Our Business Results      Will Be Harmed.***

***Our Ability To      Compete Could Be Jeopardized And Our Business Seriously Compromised If We Are      Unable To Protect Ourselves From Third-Party Challenges, The Development And      Maintenance Of The Proprietary Aspects Of Wireless Location Products And      Technology We Develop.***

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***We Could Become      Subject To Litigation Regarding Intellectual Property Rights, Which Could      Seriously Harm Our Business And Require Us To Incur Significant      Costs.***

***We Currently      Depend      Upon One Manufacturer For Our Principal Product And If We Encounters Problems      With This Manufacturer There Is No Assurance That We Could Obtain Products      From      Other Manufacturers Without Significant Disruptions To Our      Business.***

***We Expect To      Rely      Heavily On A Few Customers.***

***Fluctuations      In      Operating Results Could Adversely Affect The Market Price Of Our Common      Stock.***

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***Delays, Disruptions      Or Quality Control Problems In Manufacturing Could Result In Delays In Shipments      Of Products To Customers And Could Adversely Affect Our      Business.***

***Rapid Technological      Change In Our Market Could Cause Our Products To Become Obsolete Or Require      Us      To Redesign Our Products.***

***If We Lose Any      Key      Personnel, Or Fail To Attract And Retain Additional Personnel, We May Be Unable      To Continue Developing Our Business And Product Line.***

**RISKS      RELATED TO WHERIFY’S INTELLECTUAL PROPERTY**

***Our Success Depends      On Our Ability To Protect Our Intellectual Property.***

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**RISKS      RELATED TO CORPORATE AND STOCK MATTERS**

***Our Authorized      Preferred Stock Exposes Stockholders To Certain Risks.***

***Our Common Stock      Has A Limited And Volatile Trading History.***

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***We      Have The Ability And The Obligation To Issue Additional Shares Of Common Stock      In The Future, And Such Future Issuance May Materially Adversely Affect      Stockholders.***

***We Are Subject      To      The “Penny Stock” Rules And The Trading Of Our Common Stock Entails Additional      Regulatory Requirements, Which May Negatively Affect Such Trading      Price.***

***Stockholders      Should      Have No Expectation Of Any Dividends.***

***If We Issue Shares      Of Common Stock Or Rights To Acquire Common Stock At A Price Less Than The      Conversion Price Or Exercise Price Of Our Outstanding Debentures Or Warrants,      Then The Conversion Price Or Exercise Price May Be Adjusted.***

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**Item 3. Legal      Proceedings.**

***Venture Corporation      Limited, a Singapore Corporation v. Wherify Wireless, Inc, a California      Corporation***

***Lariviere, et      al.      v. I.Q. Biometrix, Inc., a Delaware Corporation, et al.***

**Item 4. Submission      of      Matters to a Vote of Security Holders.**

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**PART      II**

**Item 5. Market for      the      Registrant’s Common Equity, Related Stockholder Matters and Small Business      Issuer Purchases of Equity Securities.**

**PRICE      RANGE OF COMMON STOCK**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                       |                                    |         |        |        |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|---------------------------------------|------------------------------------|---------|--------|--------|--------|
| **  **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                               | ** Common                Stock** |                               |
| **  **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                               | **High**                              |                               | **Low** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **     ** |                                  | **     ** |    |   |
| Fiscal                Year Ending June 30,                2006                                                                                                     |                               |                                  |                               |    |   |
| First                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 6.14                               |    | $      | 2.94   |   |
| Second                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 3.34                               |    | $      | 1.55   |   |
| Third                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 2.27                               |    | $      | 1.40   |   |
| Fourth                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 2.02                               |    | $      | 0.65   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                                  |                               |    |   |   |   |
| Fiscal                Year Ending June 30, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                                  |                               |    |   |   |   |
| First                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 5.04                               |    | $      | 2.44   |   |
| Second                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 6.05                               |    | $      | 1.64   |   |
| Third                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 6.35                               |    | $      | 3.60   |   |
| Fourth                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 4.90                               |    | $      | 2.97   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                                  |                               |    |   |   |   |
| Fiscal                Year Ending June 30, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                                  |                               |    |   |   |   |
| First                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 5.84                               |    | $      | 2.20   |   |
| Second                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 5.76                               |    | $      | 3.20   |   |
| Third                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                                     | 9.88                               |    | $      | 4.44   |   |
| Fourth                Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | $                                     | 9.20                               |    | $      | 3.68   |   |

**Item 6. Management’s      Discussion and Analysis of Financial Condition and Results of      Operations.**

**Introduction**

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**1.      Merger**

**2. Management’s      Discussion and Analysis of Financial Condition and Results of      Operations**

***A.      General***

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***B. Liquidity      and      Capital Resources***

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***C. Results of      Operations***

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***D. Recent      Events***

**3.      General**

***A. Critical      Accounting Policies***

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***B. Quantitative      and      Qualitative Disclosures About Market Risk***

***C. Off-Balance      Sheet Arrangements***

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**Item 7. Financial      Statements and Supplementary Data.**

**INDEX      TO FINANCIAL STATEMENTS**

**WHERIFY      WIRELESS, INC. AND SUBSIDIARY**

|                                                                                                                                         |                                |     |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----|
| Report                of Independent Registered Public Accounting Firm                                                                  |       | F-1 |
| Consolidated                Balance Sheet as of June 30, 2006                                                                           |                           | F-2 |
| Consolidated                Statements of Operations – Twelve Months Ended June 30, 2006 and                2005                  |                           | F-3 |
| Consolidated                Statements of Stockholders’ Deficit – Twelve Months Ended June 30, 2006                and 2005 |                           | F-4 |
| Consolidated                Statements of Cash Flows – Twelve Months Ended June 30, 2006 and                2005                  |                           | F-5 |
| Notes                to Consolidated Financial Statements                                                                               |                           | F-6 |

**Item 8. Changes in      and      Disagreements with Accountants on Accounting and Financial      Disclosure.**

**Item 8A. Controls      and      Procedures.**

***(a) Evaluation      of      Disclosure Controls and Procedures.***

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----

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***(b) Changes      in      Internal Controls Over Financial Reporting.***

**Item 8B. Other      Information.**

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**PART      III**

**Item 9. Directors,      Executive Officers, Promoters and Control Persons; Compliance with Section      16(a)      of the Exchange Act.**

**Management**

|                                     |                                |         |                                |                                                                   |
|-------------------------------------|--------------------------------|---------|--------------------------------|-------------------------------------------------------------------|
| **Name**                            |                           | **Age** |                           | **Position**                                                      |
|                                |       |    |       |                                                              |
| William                B. Scigliano |                           | 46      |                           | Co-Chairman and President of Governmental                Services |
| W.                Douglas Hajjar    |                           | 59      |                           | Co-Chairman                                                       |
| Timothy                J. Neher     |                           | 40      |                           | Director and Chief Executive Officer                              |
| Wade                R. Fenn         |                           | 48      |                           | Director                                                          |
| John                Micek III       |                           | 54      |                           | Director                                                          |
| Daniel                McKelvey      |                           | 40      |                           | Director                                                          |
| Gerald                Parrick       |                           | 59      |                           | President                                                         |
| Mark                E. Gitter       |                           | 52      |                           | Chief Financial Officer and                Treasurer              |

***William      B. Scigliano***

***W.      Douglas Hajjar***

***Timothy      J. Neher***

***Wade      R. Fenn***

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***John      Micek III***

***Gerald      Parrick***

***Mark      E. Gitter***

***Daniel      McKelvey***

***Compensation      Committee Interlocks and Insider Participation***

***Compensation      of      Directors***

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**Section 16(a)      Beneficial Ownership Reporting Compliance**

**Code of Business      Conduct and Ethics**

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**Item 10. Executive      Compensation.**

**Executive      Compensation**

**Summary      Compensation Table**

|                                                |                                |                |                                |                                        |         |                                                  |        |                             |                                |                           |                                |                  |                                |                 |                                |        |         |        |
|------------------------------------------------|--------------------------------|----------------|--------------------------------|----------------------------------------|---------|--------------------------------------------------|--------|-----------------------------|--------------------------------|---------------------------|--------------------------------|------------------|--------------------------------|-----------------|--------------------------------|--------|---------|--------|
|                                           |                           |           |                           | **Annual                Compensation** |    | **Long-Term                Compensation Awards** |   |
| **Name                and Principal Position** |                           | **FiscalYear** |                           | **Salary(a)**                          |    | **Bonus**                                        |   | **OtherAnnualCompensation** |                           | **RestrictedStockAwards** |                           | **Options/SARs** |                           | **LTIPPayouts** |                           |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| Timothy                J. Neher(b)             |       | 2006           |       | $                                      | 188,462 |                         |   | —                     |       | —                   |       | —          |       | —         |       | $      | 175,407 | (i)    |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| William                B. Scigliano(c)         |                           | 2006           |                           | $                                      | 142,700 |                                             | $      | 119,000                     |                           | —                   |                           | 30,000           |                           | —         |                           | $      | 30,000  | (j)    |
|                                           |                           | 2005           |                           | $                                      | 142,700 |                                             | $      | 30,000                      |                           | —                   |                           | —          |                           | —         |                           | $      | 30,000  | (j)    |
|                                           |                           | 2004           |                           | $                                      | 133,967 |                                             |   | —                     |                           | —                   |                           | —          |                           | 50,000          |                           |   |    |   |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| Matthew                Neher(d)                |                           | 2006           |                           | $                                      | 140,172 |                                             |   | —                     |                           | —                   |                           | —          |                           | 125,000         |                           |   |    |   |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| Gerald                Parrick(e)               |                           | 2006           |                           | $                                      | 174,327 |                                             |   | —                     |                           | —                   |                           | —          |                           | —         |                           |   |    |   |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| Jeff                Hoever(f)                  |                           | 2006           |                           | $                                      | 130,038 |                                             |   |                        |                           | —                   |                           | —          |                           | —         |                           |   |    |   |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| Mark                E. Gitter(g)               |                           | 2006           |                           | $                                      | 67,308  |                                             |   | —                     |                           | —                   |                           | —          |                           | 260,000         |                           |   |    |   |
|                                           |                           |           |                           |                                   |    |                                             |   |                        |                           |                      |                           |             |                           |            |                           |   |    |   |
| John                Davis(h)                   |                           | 2006           |                           | $                                      | 71,448  |                                             |   |                        |                           | —                   |                           | —          |                           | —         |                           |   |    |   |

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**OPTION/SAR      GRANTS IN LAST FISCAL YEAR**

|                                                                                                                                                                                                                                                                                                  |                                |                                                              |         |                                                                                                  |        |                                 |                                |                    |        |                                |        |           |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------------------------|--------------------|--------|--------------------------------|--------|-----------|--------|
| **Name**                                                                                                                                                                                                                                                                                         |                           | **Number of SharesUnderlyingOptions Granted** |    | **%                of Total                OptionsGranted to Employeesin Fiscal Year** |   | **ExercisePrice PerShare** |                           | **ExpirationDate** |   |
|                                                                                                                                                                                                                                                                                             |       |                                                         |    |                                                                         |   |                            |       |               |   |       |   |      |   |
| Mathew                Neher(1)                                            |                           |                                                         | 125,000 |                                                                         |   | 5%                              |                           | $                  | 1.65   |                           |   | 9/21/2009 |   |

**OPTION      EXERCISES/VALUE OF UNEXERCISED OPTIONS**

**AGGREGATED      OPTION EXERCISES IN LASTFISCAL YEAR AND      FISCAL YEAR END OPTION VALUES**

|                                                                                                                                                                                                                          |                                |                                                                        |                                |                                                                                      |                                |                                                                                                        |                                |                                                                                                     |                                |                                                                                                        |                                |                                                                                                                          |        |        |         |        |        |         |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| **Name**                                                                                                                                                                                                                 |                           | **Shares                Acquired on                Exercise (#)** |                           | **ValueRealized($)**                                                                 |                           | **Number                of Shares UnderlyingUnexercised                Optionsat Fiscal Year-End (#)** |                           | **Value                of UnexercisedIn-the-Money Options                atFiscal Year-End ($)(1)** |                      |
| **Exercisable**                                                                                                                                                                                                          |                           | **Unexercisable**                                                      | **Exercisable**                |                                                                                 | **Unexercisable**              |
|                                      |       |                                                                   |       |                |       |                                                                                                   |       |                                                                                                |       |                   |       |                      |   |
| Timothy                J. Neher                                                                                                                                                                                          |                           |                                                                   | —                        |                                                                                 |                           | —                                                                                                |                           |                                                                                                | 1,543,279                      | (2)                                                                                                    |                           | —                                                                                                                  |   | $      | 586,446 |   |   | — |   |
| Gerald                Parrick                                                                                                                                                                                            |                           |                                                                   | —                        |                                                                                 |                           | —                                                                                                |                           |                                                                                                | 192,751                        |                                                                                                   |                           | 287,459                                                                                                                  |   | $      | 79,028  |   | $      | 117,858 |   |
| Mathew                Neher                                                                                                                                                                                              |                           |                                                                   | —                        |                                                                                 |                           | —                                                                                                |                           |                                                                                                | 91,708                         |                                                                                                   |                           | 100,521                                                                                                                  |   | $      | 27,563  |   | $      | 11,813  |   |
| Jeff                Hoever                                                                                                                                                                                               |                           |                                                                   | 10,280                         |                                                                                 | $                              | 8,508                                                                                                  |                           |                                                                                                | 36,591                         |                                                                                                   |                           | 73,181                                                                                                                   |   | $      | 15,002  |   | $      | 30,004  |   |
| William                B. Scigliano                                                                                                                                                                                      |                           |                                                                   | —                        |                                                                                 |                           | —                                                                                                |                           |                                                                                                | 264,323                        |                                                                                                   |                           | 110,677                                                                                                                  |   | $      | — |   |   | — |   |
| Mark                E. Gitter                                                                                                                                                                                            |                           |                                                                   | —                        |                                                                                 |                           | —                                                                                                |                           |                                                                                                | —                        |                                                                                                   |                           | 260,000                                                                                                                  |   |   | — |   |   | — |   |
| John                Davis(3)                                                                                                                                                                                             |                           |                                                                   | 112,048                        |                                                                                 | $                              | 205,899                                                                                                |                           |                                                                                                | —                        |                                                                                                   |                           | —                                                                                                                  |   |   | — |   |   | — |   |

**EMPLOYMENT      AGREEMENTS AND CHANGE IN CONTROL      AGREEMENTS**

**Employment Agreement      with William B. Scigliano**

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**Employment Agreement      with Timothy J. Neher**

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**Consulting Agreement      with Douglas Hajjar**

**Employment Agreement      with Gerald Parrick**

**Employment Agreement      with Mark E. Gitter**

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**Item 11. Security      Ownership of Certain Beneficial Owners and Management.**

***Security      Ownership of Certain Beneficial Owners(a)***

|                                   |                                |                                                                        |                  |                                         |        |                                  |                                |        |        |        |
|-----------------------------------|--------------------------------|------------------------------------------------------------------------|------------------|-----------------------------------------|--------|----------------------------------|--------------------------------|--------|--------|--------|
| **Title                of Class** |                           | **Name                and Address of Beneficial                Owner** |             | **Beneficial                Ownership** |   | **%                of Class(b)** |                           |
|                              |       |                                                                   |             |                |   |                             |       |   |   |   |
| Common                            |                           |                                                                   | Harvey Miller    |                                    |   | 2,959,992                        |                           |   | 5.0    | %      |
| Common                            |                           |                                                                   | Timothy J. Neher |                                    |   | 10,014,110                       | (c)                            |   | 16.5   | %      |

***Security      Ownership of Directors and Executive Officers***

|                                                            |                                |                                             |                                                                |                                   |                                |                                                                                                                                                                                |        |        |        |        |
|------------------------------------------------------------|--------------------------------|---------------------------------------------|----------------------------------------------------------------|-----------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| **Title                of Class**                          |                           | **Name                of Beneficial Owner** |                                                           | **Beneficial****Ownership(a)(b)** |                           | **Percent                of Class(c)**                                                                                                                                         |   |
|                                                       |       |                                        |                                       |                              |       |                               |   |
| Common                       |                           |                                        | Wade Fenn                                                      |                              |                           | 118,055                                                                                                                                                                        | (d)    |   | *      |   |
| Common                                                     |                           |                                        | Douglas Hajjar                                                 |                              |                           | 2,676,409                                                                                                                                                                      | (e)    |   | 4.5    | %      |
| Common                                                     |                           |                                        | John Micek III                                                 |                              |                           | 37,161                                                                                                                                                                         | (f)    |   | *      |   |
| Common                                                     |                           |                                        | Timothy J. Neher                                               |                              |                           | 10,014,110                                                                                                                                                                     | (g)    |   | 16.5   | %      |
| Common                                                     |                           |                                        | Gerald Parrick                                                 |                              |                           | 229,100                                                                                                                                                                        | (h)    |   | *      |   |
| Common                                                     |                           |                                        | William B. Scigliano                                           |                              |                           | 323,785                                                                                                                                                                        | (i)    |   | *      |   |
| Common                                                     |                           |                                        | Matthew Neher                                                  |                              |                           | 293,303                                                                                                                                                                        | (j)    |   | *      |   |
| Common                                                     |                           |                                        | Jeff Hoever                                                    |                              |                           | 44,900                                                                                                                                                                         | (k)    |   | *      |   |
| Common                                                     |                           |                                        | Daniel McKelvey                                                |                              |                           | 25,000                                                                                                                                                                         | (l)    |   | *      |   |
|                                                       |                           |                                        |                                                           |                              |                           |                                                                                                                                                                           |   |   |   |   |
|                                                       |                           |                                        | All Directors and Executive Officers as a                Group |                              |                           | 13,988,497                                                                                                                                                                     |   |   | 22.7   | %      |

----

**Equity Compensation      Plan Information**

**EQUITY      COMPENSATION PLAN INFORMATION**

|                                                                          |                    |                                                                                                                                                                      |           |                                                                                                                              |                          |                                                                                                                                                                                                                   |        |        |           |        |
|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| **Plan                Category**                                         |               | **Number of Securitiesto                Be                IssuedUpon Exercise                ofOutstanding Options,Warrants and Rights(A)** |      | **Weighted-AverageExercise                Price                ofOutstanding Options,Warrants and Rights(B)** |                     | **Number of SecuritiesRemaining Availablefor                Future IssuanceUnder EquityCompensation                Plans(Excluding SecuritiesReflected                inColumn (A))(C)** |   |
|                                                                     |     |                                                                                                                                                                 |      |                                                                                                                         |      |                                                                                                                                                                                                              |   |
| Equity                compensation plans approved bysecurity holders     |               |                                                                                                                                                                 | 6,221,160 | (1)                                                                                                           | $                        | 0.95                                                                                                                                                                                                              |   |   | 1,803,936 | (2)    |
| Equity                compensation plans not approvedby security holders |               |                                                                                                                                                                 | —   |                                                                                                                         |                     | —                                                                                                                                                                                                           |   |   | —   |   |
| Total                                                                    |               |                                                                                                                                                                 | 6,221,160 |                                                                                                                         | $                        | 0.95                                                                                                                                                                                                              |   |   | 1,803,936 |   |

----

**Item      12. Certain Relationships and Related Transactions.**

**CERTAIN      TRANSACTIONS**

----

**Conflict of Interest      Policy**

----

**PART      IV**

**Item 13. Exhibits      and      Reports on Form 8-K.**

**(A)**

**Documents Filed as Part      of This Report:**

***(I)***

***Consolidated Financial      Statements:***

**WHERIFY      WIRELESS, INC.**

|                                                                                                                                 |                                |     |
|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----|
| Report                of Independent Registered Public Accounting Firm                                                          |       | F-1 |
| Consolidated                Balance Sheet as of June 30, 2006                                                                   |                           | F-2 |
| Consolidated                Statements of Operations – Years Ended June 30, 2006 and 2005                                 |                           | F-3 |
| Consolidated                Statements of Stockholders’ Deficit – Years Ended June 30, 2006 and                2005 |                           | F-4 |
| Consolidated                Statements of Cash Flows – Years Ended June 30, 2006 and 2005                                 |                           | F-5 |
| Notes                to Financial Statements                                                                                    |                           | F-6 |

***(II)***

***Financial Statement      Schedules:***

***(III)***

***Index of      Exhibits:***

|                |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.1            |       | Agreement and Plan of Merger dated as of                April 14, 2004, by and among IQ Biometrix, Inc., Wherify Acquisition,                Inc. and Wherify Wireless, Inc. is incorporated by reference from                Appendix                A to the joint proxy statement/prospectus which is part of the                Registration Statement on Form S-4/A filed on June 30,                2005.                                                  |
| 2.2            |                           | Amendment No.                1 to                Agreement and Plan of Merger dated as of August 13, 2004 by and among                IQ Biometrix, Inc., Wherify Acquisition, Inc. and Wherify Wireless,                Inc.                is incorporated by reference from Appendix B to the Joint Proxy                Statement/Prospectus which is part of the Registration Statement                on Form                S-4/A filed on June 30, 2005. |
| 2.3            |                           | Amendment No.                2 to                Agreement and Plan of Merger dated as of December 7, 2004 by and                among IQ Biometrix, Inc., Wherify Acquisition, Inc. and Wherify Wireless,                Inc. is incorporated by reference from Appendix C to the joint proxy                statement/prospectus which is part of the Registration Statement                on Form                S-4/A filed on June 30, 2005.               |
| 2.4            |                           | Amendment No.                3 to                Agreement and Plan of Merger dated as of January 13, 2005 by and                among IQ Biometrix, Inc., Wherify Acquisition, Inc. and Wherify Wireless,                Inc. is incorporated by reference from Appendix D to the joint proxy                statement/prospectus which is part of the Registration Statement                on Form                S-4/A filed on June 30, 2005.               |
| 2.5            |       | Amendment No.                4 to                Agreement and Plan of Merger dated as of April 18, 2005 by and among                IQ Biometrix, Inc., Wherify Acquisition, Inc. and Wherify Wireless,                Inc.                is incorporated by reference from Appendix E to the joint proxy                statement/prospectus which is part of the Registration Statement                on Form                S-4/A filed on June 30, 2005.  |
| 3.1            |                           | Bylaws are                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-41635) filed December 29,                1997.                                                                                                                                                                                                                                                                   |
| 3.2            |                           | Amended and Restated                Certificate of Incorporation of Wherify Wireless, Inc. is incorporated                herein by reference from Wherify’s Registration Statement on Form SB-2                (SEC File No. 333-124027) as filed October 24, 2005.                                                                                                                                                                                            |
| 3.3            |                           | Amendment to Amended                and Restated Certificate of Incorporation of Wherify Wireless, Inc.                +                                                                                                                                                                                                                                                                                                                                                   |

----

|                |                                |                                                                                                                                                                                                                                                                                                                                                               |
|----------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                               |
|           |                           |                                                                                                                                                                                                                                                                                                                                                          |
| 4.1            |       | Specimen Common Stock Certificate is incorporated                herein by reference from Wherify’s Registration Statement on Form SB-2                (SEC File No. 333-122710) filed September 13, 2005.                                                                                                                                         |
| 5.1            |                           | Opinion of Allen                Matkins Leck Gamble & Mallory LLP.++                                                                                                                                                                                                                                                                                      |
| 10.01          |                           | Asset Purchase                Agreement dated February 11, 2003 by and between Special Equity IV,                L.P. and Wherify is incorporated herein by reference from Wherify’s (SEC                File No. 000-24001) Quarterly Report on Form 10-QSB filed with the                SEC on                February 19, 2003.           |
| 10.02          |                           | Stock Purchase                Agreement dated February 11, 2003 by and between Special Equity IV,                L.P. and Wherify is incorporated herein by reference from Wherify’s (SEC                File No. 000-24001) Quarterly Report on Form 10-QSB filed with the                SEC on                February 19, 2003.           |
| 10.03          |                           | Warrant to Purchase                Common Stock dated February 11, 2003 between Wherify and Special                Equity IV, L.P. is incorporated herein by reference from Wherify’s (SEC                File No. 000-24001) Quarterly Report on Form 10-QSB filed with the                SEC on                February 19, 2003.          |
| 10.04          |                           | Memorandum of                Agreement regarding stock options dated August 1, 2002 by and between                Wherify and William Scigliano is incorporated herein by reference                from                Wherify’s (SEC File No. 000-24001) Annual Report on Form 10-KSB filed with                the SEC on October 15, 2002. |
| 10.05          |                           | Memorandum of                Agreement regarding stock options dated August 1, 2002 by and between                Wherify and Greg J. Micek is incorporated herein by reference from                Wherify’s (SEC File No. 000-24001) Annual Report on Form 10-KSB filed with                the SEC on October 15, 2002.                    |
| 10.06          |                           | Form of Warrant                to                Purchase Common Stock Issued to holders dated May 28, 2003 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-107570) filed August 1, 2003.                                                              |
| 10.07          |                           | 10% Secured                Convertible Debenture dated May 28, 2003 between Wherify and John J.                Micek, Jr. is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-107570) filed August 1,                2003.                                                |
| 10.08          |                           | 10% Secured                Convertible Debenture dated May 28, 2003 between Wherify and Neil                Morris is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-107570) filed August 1,                2003.                                                       |
| 10.09          |                           | 10% Secured                Convertible Debenture dated May 28, 2003 between Wherify and Elisa                Micek and Forte Capital Partners, LLC is incorporated herein by reference                from Wherify’s Registration Statement on Form SB-2 (SEC File No.                333-107570) filed August 1, 2003.                       |
| 10.10          |                           | 10% Secured Promissory                Note between Wherify and Network Storage Systems, Inc. dated May 4,                2003 is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-107570) filed August 1,                2003.                                            |
| 10.11          |                           | Security Agreement                between Wherify the Lenders dated May 4, 2003 is incorporated herein                by reference from Wherify’s Registration Statement on Form SB-2 (SEC File                No. 333-107570) filed August 1, 2003.                                                                                          |
| 10.12          |                           | 6% Secured Convertible                Debenture dated September 18, 2003 between Wherify and Platinum                Partners Value Arbitrage Fund is incorporated herein by reference                from                Wherify’s Annual Report on Form 10-KSB (SEC File No. 000-24001) filed                October 14, 2003.              |
| 10.13          |                           | 6% Secured Convertible                Debenture dated September 18, 2003 between Wherify and Platinum                Partners Global Macro Fund, LP is incorporated herein by reference                from                Wherify’s Annual Report on Form 10-KSB (SEC File No. 000-24001) filed                October 14, 2003.             |
| 10.14          |                           | Warrant to Purchase                Common Stock Issued to Platinum Partners Value Arbitrage Fund, LP                2003 is                incorporated herein by reference from Wherify’s Annual Report on Form                10-KSB (SEC File No. 000-24001) filed October 14, 2003.                                                            |
| 10.15          |       | Warrant to Purchase                Common Stock Issued to Platinum Partners Global Macro Fund, LP 2003                is                incorporated herein by reference from Wherify’s Annual Report on Form                10-KSB (SEC File No. 000-24001) filed October 14,                2003.                                                |

----

|                |                                |                                                                                                                                                                                                                                                                                                                                                       |
|----------------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                       |
|           |                           |                                                                                                                                                                                                                                                                                                                                                  |
| 10.16          |       | 6% Secured Convertible Debenture dated                October 30, 2003 between Wherify and William Ritger is incorporated                herein by reference from Wherify’s Annual Report on Form 10-QSB (SEC File                No. 000-24001) filed November 14, 2003.                                                                  |
| 10.17          |                           | 6% Secured Convertible                Debenture dated October 8, 2003 between Wherify and Jacob Engel is                incorporated herein by reference from Wherify’s Annual Report on Form                10-QSB (SEC File No. 000-24001) filed November 14, 2003.                                                                      |
| 10.18          |                           | Warrant to Purchase                Common Stock Issued to William Ritger is incorporated herein by reference                from Wherify’s Annual Report on Form 10-QSB (SEC File No. 000-24001) filed                November 14, 2003.                                                                                                        |
| 10.19          |                           | Warrant to Purchase                Common Stock Issued to Jacob Engel is incorporated herein by reference                from Wherify’s Annual Report on Form 10-QSB (SEC File No. 000-24001) filed                November 14, 2003.                                                                                                           |
| 10.20          |                           | Amendment to                Employment Agreement between Wherify and William B. Scigliano dated                April 13, 2004 is incorporated herein by reference from Wherify’s                Annual Report on Form 10-KSB (SEC File No. 000-24001) filed                October 1, 2004.                                           |
| 10.21          |                           | Consulting Agreement                between Wherify and Daniel P. McKelvey dated August 1, 2003 is                incorporated herein by reference from Wherify’s Annual Report on Form                10-KSB (SEC File No. 000-24001) filed October 1, 2004.                                                                         |
| 10.22          |                           | Warrant to Purchase                Common Stock Issued to Daniel McKelvey dated August 2003 incorporated                by reference from Wherify’s Registration Statement on Form SB-2/A (SEC                File No. 333-122710) filed on April 11, 2005.                                                                           |
| 10.23          |                           | 6% Secured Convertible                Debenture dated August 18, 2004 between Wherify and John Micek, Jr.                and Forte Capital Partners, LLC is incorporated herein by reference                from                Wherify’s Annual Report on Form 10-KSB (SEC File No. 000-24001) filed                October 1, 2004. |
| 10.24          |                           | Warrant to Purchase                Common Stock Issued to Forte Capital Partners, LLC dated July 2004                is                incorporated herein by reference from Wherify’s Annual Report on Form                10-KSB (SEC File No. 000-24001) filed October 1, 2004.                                                         |
| 10.25          |                           | Warrant to Purchase                Common Stock Issued to John Micek, Jr. dated July 2004 is incorporated                herein by reference from Wherify’s Annual Report on Form 10-KSB (SEC File                No. 000-24001) filed October 1, 2004.                                                                                    |
| 10.26          |                           | Amendment to                Consulting Agreement between Wherify and Daniel McKelvey dated                August 1, 2004 is incorporated herein by reference from Wherify’s                Annual Report on Form 10-KSB (SEC File No. 000-24001) filed                October 1, 2004.                                                |
| 10.27          |                           | Warrant to Purchase                Common Stock issued to Forte Capital Partners, LLC dated August 17,                2004 is incorporated herein by reference from Wherify’s Annual Report on                Form 10-KSB (SEC File No. 000-24001) filed October 1,                2004.                                              |
| 10.28          |                           | Warrant to Purchase                Common Stock issued to John Micek, Jr. dated August 17, 2004 is                incorporated herein by reference from Wherify’s Annual Report on Form                10-KSB (SEC File No. 000-24001) filed October 1, 2004.                                                                         |
| 10.29          |                           | Warrant to Purchase                Common Stock issued to Forte Capital Partners, LLC dated October 13,                2004 incorporated by reference from Wherify’s Registration Statement on                Form SB-2/A (SEC File No. 333-122710) filed on April 11,                2005.                                           |
| 10.30          |                           | Purchase and                Registration Rights Agreement dated January 11, 2005 is incorporated                herein by reference from Wherify’s Current Report on Form 8-K (SEC File                No. 000-24001) filed January 11, 2005.                                                                                         |
| 10.31          |                           | Amendment to                Consulting Agreement Between Wherify and Liviakis Financial                Communications, Inc. dated January 1, 2005 is incorporated herein by                reference from Wherify’s Quarterly Report on Form 10-QSB (SEC File No.                000.24001) filed February 10, 2005.                  |
| 10.32          |                           | 2005 Consultant                Compensation plan is hereby incorporated by reference from Wherify’s                Registration Statement on Form S-8 (SEC File No. 333-123145) filed                March 4, 2005.                                                                                                                        |

----

|                |                                |                                                                                                                                                                                                                                                                                                                   |
|----------------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                   |
|           |                           |                                                                                                                                                                                                                                                                                                              |
| 10.33          |       | Consulting Agreement with Alpine Capital                Partners                dated January 2004 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005.                           |
| 10.34          |                           | 5% Convertible                Debenture issued to Austin Lewis dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                                        |
| 10.35          |                           | Warrant to Purchase                Common Stock Issued to Austin Lewis dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                                |
| 10.36          |                           | 5% Convertible                Debenture issued to Briarwood Investments dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                               |
| 10.37          |                           | Warrant to Purchase                Common Stock Issued to Briarwood Investments dated January 10, 2005                is incorporated herein by reference from Wherify’s Registration Statement                on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.        |
| 10.38          |                           | 5% Convertible                Debenture issued to Enable Capital Partners dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                             |
| 10.39          |                           | Warrant to Purchase                Common Stock Issued to Enable Capital Partners dated January 10, 2005                is incorporated herein by reference from Wherify’s Registration Statement                on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.      |
| 10.40          |                           | 5% Convertible                Debenture issued to Forte Capital Partners LLC dated January 10, 2005                is incorporated herein by reference from Wherify’s Registration Statement                on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.           |
| 10.41          |                           | Warrant to Purchase                Common Stock Issued to Forte Capital Partners LLC dated January 10,                2005 is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.   |
| 10.42          |                           | 5% Convertible                Debenture issued to Meadowbrook Opportunity Fund dated January 10,                2005 is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.         |
| 10.43          |                           | Warrant to Purchase                Common Stock Issued to Meadowbrook Opportunity Fund dated January 10,                2005 is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-122710) filed March 28,                2005. |
| 10.44          |                           | 5% Convertible                Debenture issued to Ron Nash dated January 10, 2005 is incorporated                herein by reference from Wherify’s Registration Statement on Form SB-2                (SEC File No. 333-122710) filed March 28, 2005.                                            |
| 10.45          |                           | Warrant to Purchase                Common Stock Issued to Ron Nash dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                                    |
| 10.46          |                           | 5% Convertible                Debenture issued to Nite Capital dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                                        |
| 10.47          |                           | Warrant to Purchase                Common Stock Issued to Nite Capital dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28, 2005.                                |
| 10.48          |                           | 5% Convertible                Debenture issued to Schottenfeld Group LLC dated January 10, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2 (SEC File No. 333-122710) filed March 28,                2005.               |

----

|                |                                |                                                                                                                                                                                                                                                                                                                                                  |
|----------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                  |
|           |                           |                                                                                                                                                                                                                                                                                                                                             |
| 10.49          |       | Warrant to Purchase Common Stock Issued to                Schottenfeld Group LLC dated January 10, 2005 is incorporated herein                by reference from Wherify’s Registration Statement on Form SB-2 (SEC File                No. 333-122710) filed March 28, 2005.                                                     |
| 10.50          |                           | 5% Convertible                Debenture issued to Special Situations Private Equity Fund, L.P.                dated                January 10, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005.         |
| 10.51          |                           | Warrant to Purchase                Common Stock Issued to Special Situations Private Equity Fund, L.P.                dated                January 10, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005. |
| 10.52          |                           | 5% Convertible                Debenture issued to Special Situations Technology Fund, L.P. dated                January 10, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005.                            |
| 10.53          |                           | Warrant to Purchase                Common Stock Issued to Special Situations Technology Fund, L.P. dated                January 10, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005.                    |
| 10.54          |                           | 5% Convertible                Debenture issued to Special Situations Technology Fund II, L.P. dated                January 10, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                March 28, 2005.                         |
| 10.55          |                           | Consulting Agreement                with Alpine Capital Partners dated January 2004 is incorporated by                reference from Wherify’s Registration Statement on Form SB-2/A (SEC File                No. 333-122710) filed on April 11, 2005.                                                                           |
| 10.56          |                           | 5% Convertible                Debenture issued to Austin Lewis dated January 10, 2005 is                incorporated by reference from Wherify’s Registration Statement on Form                SB-2/A (SEC File No. 333-122710) filed on April 11, 2005.                                                                         |
| 10.57          |                           | Employment Agreement                between Timothy Neher and Wherify Wireless, Inc. dated as of November                14,                2002 is incorporated herein by reference from Wherify’s Registration                Statement on Form SB-2 (SEC File No. 333-122710) filed September 9,                2005.              |
| 10.58          |                           | Second Amendment                to                Employment Agreement between William B. Scigliano dated May 19, 2005                is incorporated herein by reference from the Joint Proxy                Statement/Prospectus on Form S-4/A filed on June 30,                2005.                                                |
| 10.59          |                           | Employment Agreement                between Gerald Parrick and Wherify dated as of July 21, 2005 is                incorporated herein by reference from Wherify’s Registration Statement on                Form SB-2/A (SEC File No. 333-122710) filed on September 9,                2005.                                          |
| 10.60          |                           | EMS Agreement                between                Wherify and CalComp Electronics Public Company Limited dated as of                January 7, 2005 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                September 9, 2005.    |
| 10.61          |                           | Lease between                Westport                Joint Venture and World Tracking Technologies, Inc. dated as of                September 3, 1999 is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-122710) filed                September 9, 2005.    |
| 10.62          |                           | IQ Biometrix,                Inc.                2004 Stock Plan is incorporated herein by reference from Wherify’s joint                proxy statement/prospectus on Form S-4/A as filed on June 30,                2005.                                                                                                           |
| 10.63          |                           | Amended and Restated                1999 Stock Option Plan of Wherify Wireless, Inc. is incorporated                herein by                reference from Wherify’s Registration Statement on Form SB-2 (SEC File No.                333-122710) filed September 9, 2005.                                                           |
| 10.64          |                           | 2004 Consultant                Compensation plan is hereby incorporated by reference from Wherify’s                Registration Statement on Form S-8 (SEC File No. 333-112937) filed                February 18, 2004.                                                                                                               |
| 10.65          |                           | Amendment to the                2004                Consultant Compensation plan is hereby incorporated by reference                from                Wherify’s Registration Statement on Form S-8 (SEC File No. 333-112937)                filed October 13, 2004.                                                                 |

----

|                |                                |                                                                                                                                                                                                                                                                                                                                                     |
|----------------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                     |
|           |                           |                                                                                                                                                                                                                                                                                                                                                |
| 10.66          |       | 2005 Consultant Compensation plan is hereby                incorporated by reference from Wherify’s Registration Statement on Form                S-8 (SEC File No. 333-123145) filed March 4, 2005.                                                                                                                                     |
| 10.67          |                           | International                Supply                And Distribution Agreement between Wherify and American Network                Computadores incorporated by reference from Wherify’s Annual Report on                Form 10-KSB filed October  13, 2005.                                                                             |
| 10.68          |                           | Consulting Agreement                between Wherify and W. Douglas Hajjar dated January 12,                2006.+                                                                                                                                                                                                                              |
| 10.69          |                           | Letter Agreement                between Wherify and W. Douglas Hajjar dated January 13,                2006.+                                                                                                                                                                                                                                  |
| 10.70          |                           | Employment Agreement                with Mark E. Gitter dated January 24, 2006.+                                                                                                                                                                                                                                                               |
| 10.71          |                           | Promissory Note                between Wherify and Stephen J. Luczo dated February 22,                2006.+                                                                                                                                                                                                                                   |
| 10.72          |                           | Placement Agent                Agreement between Wherify and Newbridge Securities Corporation dated                March 10, 2006.+                                                                                                                                                                                                            |
| 10.73          |                           | Investment Agreement                dated as of February 9, 2006 between Wherify and Dutchess Private                Equities Fund, L.P. is incorporated herein by reference from Wherify’s                Current Report on Form 8-K filed February 9, 2006.                                                                       |
| 10.74          |                           | Securities Purchase                Agreement between Wherify and Cornell Capital Partners, LP dated                March 10, 2006.+                                                                                                                                                                                                            |
| 10.75          |                           | Standby Equity                Distribution Agreement between Wherify and Cornell Capital Partners,                LP                dated March 10, 2006.+                                                                                                                                                                                     |
| 10.76          |                           | Investor Registration                Rights Agreement between Wherify and Cornell Capital Partners, LP                dated                March 10, 2006.+                                                                                                                                                                                    |
| 10.77          |                           | Security Agreement                between Wherify and Cornell Capital Partners, LP dated March 10,                2006.+                                                                                                                                                                                                                       |
| 10.78          |                           | Secured Convertible                Debenture between Wherify and Cornell Capital Partners, LP dated                March 10, 2006.+                                                                                                                                                                                                            |
| 10.79          |                           | Secured Convertible                Debenture between Wherify and Cornell Capital Partners, LP dated                March 14, 2006.+                                                                                                                                                                                                            |
| 10.80          |                           | Pledge and Escrow                Agreement among Wherify, Cornell Capital Partners, LP and David Gonzalez,                Esq. dated March 10, 2006.+                                                                                                                                                                                          |
| 10.81          |                           | Warrant to Purchase                Common Stock (No. CCP-001) issued to Cornell Capital Partners, LP                dated                March 10, 2006.+                                                                                                                                                                                      |
| 10.82          |                           | Warrant to Purchase                Common Stock (No. CCP-002) issued to Cornell Capital Partners, LP                dated                March 10, 2006.+                                                                                                                                                                                      |
| 10.83          |                           | Amendment to Secured                Convertible Debentures between Wherify and Cornell Capital Partners                dated                April 21, 2006.+                                                                                                                                                                                   |
| 10.84          |                           | Letter Agreement                between Wherify and Michael D. Dingman, Jr. dated March 27, 2006.                +                                                                                                                                                                                                                             |
| 10.85          |                           | Form of Subscription                Agreement.+                                                                                                                                                                                                                                                                                                     |
| 10.86          |                           | Master                Purchase/Reseller Agreement dated March 22, 2006 between Wherify and                Siemens AG, Communications, Wireless Module is hereby incorporated                by                reference to Wherify’s Quarterly Report on Form 10-QSB (SEC File No.                000-24001) filed on May 15, 2006. |
| 10.87          |                           | Promissory Note                issued                by Wherify to Stephen  J. Luczo dated June 16,                2006.+                                                                                                                                                                                                                 |
| 14.1           |                           | Code of Business                Conduct and Ethics is incorporated herein by reference from Wherify’s                Registration Statement on Form SB-2 (SEC File No. 333-124027) filed                September 13, 2005.                                                                                                              |
| 21.1           |                           | Company’s                subsidiaries.+                                                                                                                                                                                                                                                                                                       |
| 31.1           |                           | Chief Executive                Officer Certification of Periodic Financial  Report Pursuant to                Section 302 of the Sarbanes-Oxley Act of 2002.++                                                                                                                                                                                 |
| 31.2           |                           | Certification                of                Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.++                                                                                                                                                                                                |
|                |                           |                                                                                                                                                                                                                                                                                                                                                |

----

|                |                                |                                                                                                                                                                                                       |
|----------------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                       |
|           |                           |                                                                                                                                                                                                  |
| 32.1           |       | Chief Executive Officer Certification                 Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of the Sarbanes-Oxley Act of 2002.++                 |
| 32.2           |                           | Chief Financial                Officer Certification  Pursuant to 18 U.S.C. Section 1350, as                adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.++ |

**(B)      Reports on Form 8-K**

**Item 14. Principal      Accountant Fees and Services.**

**Fees to Independent      Auditors for Fiscal 2006 and 2005**

|                                                                                                                                                                                                     |                                |                                                                                                              |         |                                                                                                              |        |         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------------|--------|---------|
|                                                                                                                                                                                                |                           | **Fiscal                2006**                                                                               |    | **Fiscal                2005**                                                                               |
|                                                                                                                                                                                                |                           |                    |    |                    |
| Audit                fees(1)                                                                                                                                                                        |       | $                                                                                                            | 147,993 |                                                                                     | $      | 115,000 |
| Audit-related                fees                            |                           | $                                                                                                            | 0       |                                                                                                         |   | 0       |
| Tax                fees                                                                                                                                                                             |                           | $                                                                                                            | 0       |                                                                                                         |   | 0       |
| All                other fees                                                                                                                                                                       |                           | $                                                                                                            | 0       |                                                                                                         |   | 0       |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

|                                                                                          |        |
|------------------------------------------------------------------------------------------|--------|
| /s/ Malone & Bailey, PC                                                              |   |
| Malone & Bailey,                PCwww.malone-bailey.comHouston, TexasAugust 16, 2006 |   |

----

**WHERIFY      WIRELESS, INC.**

**CONSOLIDATED      BALANCE SHEETJune 30, 2006**

|                                                                                                                                                                                                                                                                                                                                                           |                                |        |                 |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|-----------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                |                           |   |            |   |
| **Current                Assets:**                                                                                                                                                                                                                                                                                                                        |                           |   |            |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                                                  |       | $      | 524,722         |   |
| Restricted                certificates of deposit                                                                                                                                                                                                                                                                                                         |                           |   | 1,278,014       |   |
| Prepaid                expenses                                                                                                                                                                                                                                                                                                                           |                           |   | 29,281          |   |
| Accounts                receivable, net                                                                                                                                                                                                                                                                                                                   |                           |   | 10,133          |   |
| Inventory                                                                                                                                                                                                                                                                                                                                                 |                           |   | 81,141          |   |
| Security                deposit                                                                                                                                                                                                                                                                                                                           |                           |   | 322,400         |   |
| Other                current assets                                                                                                                                                                                                                                                                                                                       |                           |   | 50,700          |   |
| **Total                Current Assets**                                                                                                                                                                                                                                                                                                                   |                           |   | **2,296,391**   |   |
|                                                                                                                                                                                                                                                                                                                                                      |                           |   |            |   |
| Intangible                assets, net of accumulated amortization of $14,191                                                                                                                                                                                                                                                                              |                           |   | 30,809          |   |
| Property                and equipment, net of accumulated depreciation of                $1,302,036                                          |                           |   | 640,607         |   |
| Other                non-current assets                                                                                                                                                                                                                                                                                                                   |                           |   | 755,691         |   |
| **Total                Assets**                                                                                                                                                                                                                                                                                                                           |                           | **$**  | **3,723,498**   |   |
|                                                                                                                                                                                                                                                                                                                                                      |                           |   |            |   |
| **LIABILITIES                AND STOCKHOLDERS’                DEFICIT**                                                                                                                                                                                                                                                                             |                           |   |            |   |
| **Current                Liabilities:**                                                                                                                                                                                                                                                                                                                   |                           |   |            |   |
| Accounts                payable                                                                                                                                                                                                                                                                                                                           |                           | $      | 2,836,057       |   |
| Accounts                payable – related party                                                                                                                                                                                                                                                                                                     |                           |   | 3,105,750       |   |
| Accrued                liabilities                                                                                                                                                                                                                                                                                                                        |                           |   | 993,552         |   |
| Accounts                payable related to discontinued operating segment                                                                                                                                                                                                                                                                                 |                           |   | 2,085,211       |   |
| Notes                payable – related party                                                                                                                                                                                                                                                                                                        |                           |   | 2,000,000       |   |
| Current                maturities of convertible debentures                                                                                                                                                                                                                                                                                               |                           |   | 1,404,990       |   |
| Fair                value of derivatives                                                                                                                                                                                                                                                                                                                  |                           |   | 2,692,235       |   |
| **Total                Current Liabilities**                                                                                                                                                                                                                                                                                                              |                           |   | **15,117,795**  |   |
| **Commitments                and Contingencies**                                                                                                                                                                                                                                                                                                          |                           |   | —         |   |
| **Stockholders’                Deficit**                                                                                                                                                                                                                                                                                                            |                           |   |            |   |
| Common                stock, $0.01 par value, 100,000,000 shares authorized; 55,301,513                shares                issuedand outstanding                                                                                                                                                                                                        |                           |   | 553,015         |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                                                 |                           |   | 124,591,434     |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                                                        |                           |   | (136,538,746    | )      |
| **Total                Stockholders’ Deficit**                                                                                                                                                                                                                                                                                                      |                           |   | **(11,394,297** | **)**  |
| **Total                Liabilities and Stockholders’ Deficit**                                                                                                                                                                                                                                                                                      |                           | **$**  | **3,723,498**   |   |

----

**WHERIFY      WIRELESS, INC.**

**CONSOLIDATED      STATEMENTS OF OPERATIONSYears Ended June      30, 2006 and 2005**

|                                                                                                        |                                |                                            |                 |                                            |        |                 |        |
|--------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------|-----------------|--------------------------------------------|--------|-----------------|--------|
|                                                                                                   |                           | **Year                EndedJune 30, 2006** |            | **Year                EndedJune 30, 2005** |   |
|                                                                                                   |                           |                                       |            |                                       |   |
| **Revenues:**                                                                                          |                           |                                  |            |                                  |   |
| Sales                revenue                                                                           |       | $                                          | 154,936         |                   | $      | —         |   |
| **Operating                Expenses:**                                                                 |                           |                                       |            |                                       |   |            |   |
| Cost                of goods sold (except for items stated separately below)                           |                           |                                       | 18,696          |                                       |   | —         |   |
| Goodwill                impairment                                                                     |                           |                                       | 67,530,022      |                                       |   | —         |   |
| Intangibles                impairment                                                                  |                           |                                       | 1,470,492       |                                       |   | —         |   |
| Engineering                and development                                                             |                           |                                       | 1,546,033       |                                       |   | 4,839,888       |   |
| General                and administrative                                                              |                           |                                       | 8,620,040       |                                       |   | 5,887,385       |   |
| Rent                expense                                                                            |                           |                                       | 1,410,294       |                                       |   | —         |   |
| Rent                expense – related party                                                      |                           |                                       | —         |                                       |   | 1,362,936       |   |
| Amortization                and depreciation                                                           |                           |                                       | 888,548         |                                       |   | 118,951         |   |
| **Total                Operating Expenses**                                                            |                           |                                       | **81,484,125**  |                                       |   | **12,209,160**  |   |
| **Operating                Loss**                                                                      |                           |                                       | **(81,329,189** | **)**                                      |   | **(12,209,160** | **)**  |
| **Other                Income (Expense)**                                                              |                           |                                       |            |                                       |   |            |   |
| Change                in fair value of derivatives                                                     |                           |                                       | 745,823         |                                       |   | —         |   |
| Interest                and other expense                                                              |                           |                                       | (744,735        | )                                          |   | (110,240        | )      |
| Interest                and other income                                                               |                           |                                       | 69,345          |                                       |   | 86,994          |   |
| **Net                Loss From Continuing Operations**                                                 |                           |                                       | **(81,258,756** | **)**                                      |   | **(12,232,406** | **)**  |
| **Discontinued                Operations**                                                             |                           |                                       |            |                                       |   |            |   |
| Loss                from operations of discontinued segment                                            |                           |                                       | (85,860         | )                                          |   | (171,251        | )      |
| **Net                Loss**                                                                            |                           |                                       | **(81,344,616** | **)**                                      |   | **(12,403,657** | **)**  |
| Deemed                dividend on preferred stock                                                      |                           |                                       | —         |                                       |   | (12,467,059     | )      |
| **Net                Loss Attributable to Common Shareholders**                                        |                           | **$**                                      | **(81,344,616** | **)**                                      | **$**  | **(24,870,716** | **)**  |
| Basic                and diluted net loss per share from continuing operations                         |                           | $                                          | (1.81           | )                                          | $      | (0.85           | )      |
| Basic                and diluted net loss per share from discontinued operations                       |                           | $                                          | (0.00           | )                                          | $      | (0.01           | )      |
| Basic                and diluted net loss per share attributable to common                shareholders |                           | $                                          | (1.81           | )                                          | $      | (1.73           | )      |
| Weighted                average number of shares outstanding                                           |                           |                                       | 44,927,748      |                                       |   | 14,413,733      |   |

----

**WHERIFY      WIRELESS, INC.**

**CONSOLIDATED      STATEMENTS OF STOCKHOLDERS’ DEFICITYears      Ended June 30, 2006 and 2005**

|                                                                          |                        |                                               |                        |                                 |                |                                             |                |                               |        |                        |                        |                                     |                 |                              |                                                                                                        |              |                              |        |                  |                         |        |                 |        |
|--------------------------------------------------------------------------|------------------------|-----------------------------------------------|------------------------|---------------------------------|----------------|---------------------------------------------|----------------|-------------------------------|--------|------------------------|------------------------|-------------------------------------|-----------------|------------------------------|--------------------------------------------------------------------------------------------------------|--------------|------------------------------|--------|------------------|-------------------------|--------|-----------------|--------|
|                                                                     |                   | **ConvertiblePreferred                Stock** |                   | **Common                Stock** |           | **AdditionalPaidin                Capital** |           | **DeferredStockCompensation** |   | **AccumulatedDeficit** |                   | **TotalStockholders’Deficit** |            |
|                                                                     |                   | **Shares**                                    |                   | **Amount**                      |           | **Shares**                                  |           | **Amount**                    |   |                   |                   |                                |            |
|                                                                     |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                |            |                         |                   |         |                         |   |             |                    |   |            |
| **June                30, 2004, balances**                               | **   ** | **20,243,632**                                | **   ** | **$**                           | **35,412,752** | **   **                      | **14,193,692** | **   **        | **$**  | **141,937**            | **   ** | **$**                               | **486,236**     | **    ** | **$**                                                                                                  | **—**  | **    ** | **$**  | **(42,790,473**  | **)   ** | **$**  | **(6,749,548**  | **)**  |
| Issuance                of Series C Convertible Preferred Stock for cash |                   | 7,026,466                                     |                   |                            | 13,041,680     |                                        |           |                          |   |                   |                   |                                |            |                         |                                                                                                   |         |                         |   |             |                    |   | 13,041,680      |   |
| Beneficial                conversion feature embedded in preferred stock |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                |            |                         |                                                                                                   |         |                         |   | 12,467,059       |                    |   | 12,467,059      |   |
| Deemed                dividend on preferred stock                        |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                |            |                         |                                                                                                   |         |                         |   | (12,467,059      | )                       |   | (12,467,059     | )      |
| Exercise                of common stock options                          |                   |                                          |                   |                            |           |                                        | 504,221        |                          |   | 5,042                  |                   |                                | 2,458           |                         |                                                                                                   |         |                         |   |             |                    |   | 7,500           |   |
| Stock                option expense                                      |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                | 1,388,480       |                         |                                                                                                   | (713,592     | )                            |   |             |                    |   | 674,888         |   |
| Net                loss                                                  |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                |            |                         |                                                                                                   |         |                         |   | (12,403,657      | )                       |   | (12,403,657     | )      |
| **June                30, 2005, balances**                               |                   | **27,270,098**                                |                   |                            | **48,454,432** |                                        | **14,697,913** |                          |   | **146,979**            |                   |                                | **1,877,174**   |                         |                                                                                                   | **(713,592** | **)**                        |   | **(55,194,130**  | **)**                   |   | **(5,429,137**  | **)**  |
| Conversion                of preferred in connection with Merger         |                   | (27,270,098                                   | )                      |                            | (48,454,432    | )                                           | 27,270,098     |                          |   | 272,701                |                   |                                | 48,181,731      |                         |                                                                                                   |         |                         |   |             |                    |   | —         |   |
| Issuance                of shares in connection with Merger              |                   |                                          |                   |                            |           |                                        | 10,396,883     |                          |   | 103,968                |                   |                                | 69,254,055      |                         |                                                                                                   |         |                         |   |             |                    |   | 69,358,023      |   |
| Shares                issued for exercise of options/warrants            |                   |                                          |                   |                            |           |                                        | 416,961        |                          |   | 4,170                  |                   |                                | 404,262         |                         |                                                                                                   |         |                         |   |             |                    |   | 408,432         |   |
| Shares                issued for conversion of debt                      |                   |                                          |                   |                            |           |                                        | 50,000         |                          |   | 500                    |                   |                                | 224,500         |                         |                                                                                                   |         |                         |   |             |                    |   | 225,000         |   |
| Shares                issued for services                                |                   |                                          |                   |                            |           |                                        | 478,687        |                          |   | 4,787                  |                   |                                | 846,072         |                         |                                                                                                   |         |                         |   |             |                    |   | 850,859         |   |
| Shares                issued for cash                                    |                   |                                          |                   |                            |           |                                        | 1,990,971      |                          |   | 19,910                 |                   |                                | 3,762,529       |                         |                                                                                                   |         |                         |   |             |                    |   | 3,782,439       |   |
| Amortization                of deferred compensation                     |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                | (613,088        | )                            |                                                                                                   | 713,592      |                         |   |             |                    |   | 100,504         |   |
| SFAS                123R stock option expense                            |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                | 654,199         |                         |                                                                                                   |         |                         |   |             |                    |   | 654,199         |   |
| Net                loss                                                  |                   |                                          |                   |                            |           |                                        |           |                          |   |                   |                   |                                |            |                         |                                                                                                   |         |                         |   | (81,344,616      | )                       |   | (81,344,616     | )      |
| **June                30, 2006, balances**                               |                   | **0**                                         |                   | **$**                           | **—**    |                                        | **55,301,513** |                          | **$**  | **553,015**            |                   | **$**                               | **124,591,434** |                         | **$**                                                                                                  | **—**  |                         | **$**  | **(136,538,746** | **)**                   | **$**  | **(11,394,297** | **)**  |

----

**WHERIFY      WIRELESS, INC.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWSYears Ended June      30, 2006 and 2005**

|                                                                                                              |                          |                                            |                 |                                            |        |                 |        |
|--------------------------------------------------------------------------------------------------------------|--------------------------|--------------------------------------------|-----------------|--------------------------------------------|--------|-----------------|--------|
|                                                                                                         |                     | **Year                EndedJune 30, 2006** |            | **Year                EndedJune 30, 2005** |   |
|                                                                                                         |                     |                                       |            |                                       |   |            |   |
| **Operating                Activities:**                                                                     |                     |                                       |            |                                       |   |            |   |
| Net                loss                                                                                      |      | $                                          | (81,344,616     | )                 | $      | (12,403,657     | )      |
| Adjustments                to reconcile net loss to net cash used in operating activities:                   |                     |                                       |            |                                       |   |            |   |
| Depreciation                and amortization expense                                                         |                     |                                       | 888,548         |                                       |   | 118,951         |   |
| Amortization                of debt discount                                                                 |                     |                                       | 383,048         |                                       |   | —         |   |
| Impairment                of Goodwill and Intangible assets                                                  |                     |                                       | 69,000,514      |                                       |   | —         |   |
| Common                stock options and warrants issued for services                                         |                     |                                       | 1,605,562       |                                       |   | 674,888         |   |
| Fair                value of derivatives                                                                     |                     |                                       | (745,823        | )                                          |   | —         |   |
| Other                non-cash items                                                                          |                     |                                       | 450,769         |                                       |   | —         |   |
| Changes                in operating assets and liabilities:                                                  |                     |                                       |            |                                       |   |            |   |
| Accounts                receivable and other                                                                 |                     |                                       | 9,810           |                                       |   | 117,338         |   |
| Inventory                                                                                                    |                     |                                       | (73,548         | )                                          |   | —         |   |
| Prepaid                expenses and other current assets                                                     |                     |                                       | 9,710           |                                       |   | 4,320           |   |
| Other                current assets                                                                          |                     |                                       | (270,169        | )                                          |   | —         |   |
| Other                assets                                                                                  |                     |                                       | (537,652        | )                                          |   | —         |   |
| Accounts                payable and accrued expenses                                                         |                     |                                       | (1,543,675      | )                                          |   | 1,260,936       |   |
| **Net                Cash Used in Operating Activities**                                                     |                     |                                       | **(12,167,522** | **)**                                      |   | **(10,227,224** | **)**  |
|                                                                                                         |                     |                                       |            |                                       |   |            |   |
| **Investing                Activities:**                                                                     |                     |                                       |            |                                       |   |            |   |
| Decrease                (Increase) in restricted certificates of deposit                                     |                     |                                       | 1,171,287       |                                       |   | (2,191,557      | )      |
| Purchase                of property and equipment                                                            |                     |                                       | (338,003        | )                                          |   | (264,083        | )      |
| Disposal                of property and equipment                                                            |                     |                                       | —         |                                       |   | 25,459          |   |
| Note                receivable from IQ Biometrix, Inc                                                        |                     |                                       | —         |                                       |   | (100,000        | )      |
| **Net                Cash Provided by (Used in) Investing Activities**                                       |                     |                                       | **833,284**     |                                       |   | **(2,530,181**  | **)**  |
| **Financing                Activities:**                                                                     |                     |                                       |            |                                       |   |            |   |
| Proceeds                from sale of common stock                                                            |                     |                                       | 3,782,439       |                                       |   | —         |   |
| Proceeds                from notes payable – related party                                             |                     |                                       | 2,000,000       |                                       |   | —         |   |
| Proceeds                from convertible debenture, net                                                      |                     |                                       | 4,585,000       |                                       |   | —         |   |
| Proceeds                from exercise of warrants and options                                                |                     |                                       | 408,432         |                                       |   | 7,500           |   |
| Proceeds                from issuance of convertible preferred stock, net                                    |                     |                                       | —         |                                       |   | 13,041,680      |   |
| Payment                on convertible debentures                                                             |                     |                                       | (125,000        | )                                          |   | —         |   |
| **Net                Cash Provided by Financing Activities**                                                 |                     |                                       | **10,650,871**  |                                       |   | **13,049,180**  |   |
| **Change                in Cash and Cash Equivalents**                                                       |                     |                                       | **(683,367**    | **)**                                      |   | **291,775**     |   |
| **Cash                and Cash Equivalents – Beginning of Period**                                     |                     |                                       | **1,208,089**   |                                       |   | **916,314**     |   |
| **Cash                and Cash Equivalents – End of Period**                                           |                     | **$**                                      | **524,722**     |                                       | **$**  | **1,208,089**   |   |
| **Supplemental                disclosures of non-cash activities and interest expense                paid:** |                     |                                       |            |                                       |   |            |   |
| Interest                expense paid                                                                         |                     | $                                          | 112,847         |                                       | $      | 55,517          |   |
| Issuance                of common stock for conversion of debt                                               |                     | $                                          | 225,000         |                                       | $      | —         |   |
| Shares                issued related to the Merger                                                           |                     | $                                          | 69,358,023      |                                       | $      | —         |   |

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — Summary of      Significant Accounting Policies**

***Nature of      Business***

***Use of      Estimates***

***Cash and Cash      Equivalents***

***Allowance for      Doubtful Accounts***

***Inventories***

***Office      Equipment***

***Goodwill***

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — Summary of      Significant Accounting Policies – (continued)**

***Long-Lived      Intangible Assets***

***Revenue      Recognition***

***Engineering and      Development***

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — Summary of      Significant Accounting Policies – (continued)**

***Income      Taxes***

***Loss Per Common      Share***

***Stock Based      Compensation***

***Recently Issued      Accounting Pronouncements***

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 — Summary of      Significant Accounting Policies – (continued)**

**Note 2 — Going      Concern**

**Note 3 — Stock-Based      Compensation**

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 3 — Stock-Based      Compensation – (continued)**

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 3 — Stock-Based      Compensation – (continued)**

|                                                                |                        |                               |                        |                                                                                            |                                    |                                                                          |          |                                                                          |            |                                                                                                              |               |                                                                    |        |                                                                                      |                        |                                                                    |                        |                                                                                                              |          |                                                                    |               |                        |        |          |
|----------------------------------------------------------------|------------------------|-------------------------------|------------------------|--------------------------------------------------------------------------------------------|------------------------------------|--------------------------------------------------------------------------|----------|--------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------|---------------|--------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|------------------------|--------------------------------------------------------------------|------------------------|--------------------------------------------------------------------------------------------------------------|----------|--------------------------------------------------------------------|---------------|------------------------|--------|----------|
|                                                           |                   |                          |                   | **1999                Plan**                                                               |                               | **2001                Plan**                                             |     | **2004                Plan**                                             |
|                                                           |                   |                          |                   | **Per                Merger**                                                              |                               | **MergerFactor**                                                         |     | **Post                Merger**                                           |       | **Options**                                                                                                  |          | **Wgt.Ave.                $**                                      |   | **Options**                                                                          |                   | **Wgt.Ave.                $**                                      |
| **Options**                                                    |                   | **Wgt.Ave.                $** | **Options**            |                                                                                       | **Wgt.Ave.                $**      |
|                                                           |                   |                          |                   |                 |                               |              |     |              |       |                    |          |             |   |                |                   |             |                   |                    |     |             |
| **outstanding**                                                | **   ** | **6.30.2003**                 | **   ** | **694,334**                                                                                | **     ** | **$**                                                                    | **1.83** | **   **                                                   | **4.8021** | **   **                                                                                       | **3,334,261** | **   **                                             | **$**  | **0.38**                                                                             | **   ** |                                                               | **   ** | **$**                                                                                                        |     | **   **                                             |          | **   ** | **$**  |     |
| granted                                                        |                   |                          |                   | —                                                                                    |                               |                                                                     |     |                                                                     |       |                                                                                                         |          |                                                               |   |                                                                                 |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| forfeited                                                      |                   |                          |                   | —                                                                                    |                               |                                                                     |     |                                                                     |       |                                                                                                         |          |                                                               |   |                                                                                 |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| **outstanding**                                                |                   | **6.30.2004**                 |                   | **694,334**                                                                                |                               | **$**                                                                    | **1.83** |                                                                     | **4.8021** |                                                                                                         | **3,334,261** |                                                               | **$**  | **0.38**                                                                             |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| granted                                                        |                   |                          |                   | 239,000                                                                                    |                               | $                                                                        | 1.50     |                                                                     | 4.8021     |                                                                                                         | 1,147,702     |                                                               | $      | 0.31                                                                                 |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| forfeited                                                      |                   |                          |                   | (105,000                                                                                   | )                                  | $                                                                        | 0.07     |                                                                     | 4.8021     |                                                                                                         | (504,233      | )                                                                  | $      | 0.01                                                                                 |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| **outstanding**                                                |                   | **6.30.2005**                 |                   | **828,334**                                                                                |                               | **$**                                                                    | **1.78** |                                                                     | **4.8021** |                                                                                                         | **3,977,731** |                                                               | **$**  | **0.37**                                                                             |                   | **—**                                                        |                   |                                                                                                         |     |                                                               | **—**   |                   |   |     |
| assumed/granted                                                |                   |                          |                   |                                                                                       |                               |                                                                     |     |                                                                     |       |                                                                                                         | —       |                                                               |   |                                                                                 |                   | 325,000                                                            |                   | $                                                                                                            | 3.22     |                                                               | 2,556,567     |                   | $      | 1.48     |
| forfeited                                                      |                   |                          |                   |                                                                                       |                               |                                                                     |     |                                                                     |       |                                                                                                         | (250,513      | )                                                                  | $      | —                                                                              |                   |                                                               |                   |                                                                                                         |     |                                                               | (110,000      | )                      | $      | 1.65     |
| exercised                                                      |                   |                          |                   |                                                                                       |                               |                                                                     |     |                                                                     |       |                                                                                                         | (277,625      | )                                                                  | $      | —                                                                              |                   |                                                               |                   |                                                                                                         |     |                                                               |          |                   |   |     |
| **outstanding**                                                |                   | **6.30.2006**                 |                   |                                                                                       |                               |                                                                     |     |                                                                     |       |                                                                                                         | **3,449,593** |                                                               | **$**  | **0.37**                                                                             |                   | **325,000**                                                        |                   | **$**                                                                                                        | **3.22** |                                                               | **2,446,567** |                   | **$**  | **1.47** |
| Average                remaining years of contractual life     |                   | 6.9                           |                   |                                                                                       |                               |                                                                     | 1.8      |                                                                     |       |                                                                                                         |          | 9.3                                                                |   |                                                                                 |                   |
| Available                for                grant at 6.30.2006 |                   | —                       |                   |                                                                                       |                               |                                                                     | —  |                                                                     |       |                                                                                                         |          | 1,553,433                                                          |   |                                                                                 |                   |

|                                                                                                                                                  |                                |                                    |                                |                   |                                      |                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------|--------------------------------|-------------------|--------------------------------------|------------------------------------|
| **Outstanding**                                                                                                                                  |                           | **Exercisable**                    |
| **Exercise                Price**                                                                                                                |                           | **Number                ofShares** |                           | **RemainingLife** |                                 | **Number                ofShares** |
|                          |                           |                               |                           |              |                                 |                               |
| $0.31                to $0.34                                                                                                                    |       | 3,264,916                          |       | 6.8               |        | 2,314,836                          |
| $0.62                                                                                                                                            |                           | 37,456                             |                           | 5.2               |                                 | 37,456                             |
| $1.25                to $1.70                                                                                                                    |                           | 2,643,788                          |                           | 8.7               |                                 | 532,807                            |
| $2.00                to $6.00                                                                                                                    |                           | 275,000                            |                           | 1.7               |                                 | 275,000                            |
|                                                                                                                                             |                           | 6,221,160                          |                           | 5.5               |                                 | 3,160,099                          |

**Note 4 — Business      Combination**

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**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 4 — Business      Combination – (continued)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                |        |            |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|------------|--------|
| Current                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       | $      | 1,131,654  |   |
| Fixed                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                           |   | 1,968      |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   | 67,530,022 |   |
| Intangible                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                           |   | 2,193,000  |   |
| Total                Assets Acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                           | $      | 70,856,644 |   |
| Accounts                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                           |   | (383,266   | )      |
| Accrued                Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                           |   | (60,189    | )      |
| Convertible                Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                           |   | (200,000   | )      |
| Total                Liabilities                Assumed                                                                               |                           |   | (643,455   | )      |
| Net                Assets Acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                           | $      | 70,213,189 |   |

|                                                                                                                                                        |                                |                                                              |         |                                 |        |         |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------|---------|---------------------------------|--------|---------|--------|
|                                                                                                                                                   |                           | **As Reported**                                         |    | **Pro-Forma**                   |   |
|                                                                                                                                                   |                           | (in                $ thousands exceptLoss Per Share amounts) |    |
| Revenues                                                                                                                                               |       | $                                                            | 0       |                            | $      | 301     |   |
| Net                Loss                                                                                                                                |                           | $                                                            | (12,403 | )      | $      | (90,685 | )      |
| Net                Loss Per Share Attributable to Common                Shareholders            |                           | $                                                            | (1.73   | )                               | $      | (2.00   | )      |

**Note 5 — Restricted      Certificates of Deposit**

**Note 6 —Inventory**

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**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 7 — Security      Deposit**

**Note 8 —Goodwill**

**Note 9 — Long-Lived      Intangibles**

|                                                                                                                                                                                        |                                |        |            |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|------------|--------|
| Customer                lists                                                                                                                                                          |       | $      | 2,148,000  |   |
| Acquired                software                                                                                                                                                       |                           |   | 45,000     |   |
| Less:                accumulated amortization                                                                                                                                          |                           |   | (691,699   | )      |
| Net                long-lived intangibles before                impairment                   |                           |   | 1,501,301  |   |
| Write-off                for impairment of customer lists                                                                                                                              |                           |   | (1,470,492 | )      |
| **Intangible                assets, net**                                                                                                                                              |                           | **$**  | **30,809** |   |

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**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 10 — Other      Non-Current Assets**

**Note 11 — Discontinued      Operations**

**Note 12 — Accounts      Payable – Related Party**

**Note 13 — Accrued      Liabilities**

|                                                                                                                                                                                                          |                                |        |             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|-------------|
| Accrued                employee salaries and                benefits                       |       | $      | 288,486     |
| Accrued                interest expense                                                                                                                                                                  |                           |   | 231,264     |
| Accrued                legal fees                                                                                                                                                                        |                           |   | 199,904     |
| Reserve                for discontinued product                                                                                                                                                          |                           |   | 162,494     |
| Other                accrued expenses                                                                                                                                                                    |                           |   | 111,404     |
| **Total                accrued liabilities**                                                                                                                                                             |                           | **$**  | **993,552** |

**Note 14 — Notes      Payable – Related Party**

**Note 15 — Convertible      Debentures and Warrants Liability**

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**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 15 — Convertible      Debentures and Warrants Liability – (continued)**

|                                                                 |                                |        |               |        |
|-----------------------------------------------------------------|--------------------------------|--------|---------------|--------|
| Convertible                debentures due in 2009, 7% per annum |       | $      | 4,875,000     |   |
| Discount                on convertible debenture                |                           |   | (3,470,010    | )      |
| **Current                maturities of convertible debentures** |                           | **$**  | **1,404,990** |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |        |        |               |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|
| Fiscal                year ended June 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | 1,500,000     |   |
| Fiscal                year ended June 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,500,000     |   |
| Fiscal                year ended June 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,875,000     |   |
| Thereafter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | —       |   |
| **Total                principal payments**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | **4,875,000** |   |
| Discount                on derivatives at current fair                value                                                                                       |   |   | (2,182,765    | )      |
| **Fair                value of derivatives**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **$**  | **2,692,235** |   |

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 15 — Convertible      Debentures and Warrants Liability – (continued)**

**Note 16 — Commitments      and Contingencies**

***Operating Lease      Obligations***

|                                                                                                                                                                                                                                                                                       |                                |                                                                                                                                      |           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|-----------|
| **Year                Ending June 30,**                                                                                                                                                                                                                                               |                           | **Facility Leases**                                                                                                             |
|                                                                                                                                                                                                                                                                                  |                           |                        |
| 2007                                                                                                                                                                                                                                                                                  |       | $                                                                                                                                    | 1,295,000 |
| 2008                                                                                                                                                                                                                                                                                  |                           | $                                                                                                                                    | 1,315,000 |
| 2009                                                                                                                                                                                                                                                                                  |                           | $                                                                                                                                    | 1,346,000 |
| After                2010                                           |                           | $                                                                                                                                    | 452,000   |

***Legal      Proceedings***

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 16 — Commitments      and Contingencies – (continued)**

**Note 17 —Equity**

***Capital      Stock***

***Common      Stock***

|                                                                                                                                                                                                                                                                                       |                                      |                 |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------|--------|
| **Outstanding                common stock as of June 30, 2005**                                                                                                                                                                                                                       |        | **14,697,913**  |   |
| Fiscal                2006 changes:                                                                                                                                                                                                                                                   |                                 |            |   |
| Conversion                of preferred stock to common stock at                Merger                                 |                                 | 27,270,098      |   |
| Issuance                of new shares in connection with Merger                                                                                                                                                                                                                       |                                 | 10,396,883      |   |
| Shares                issued for exercise of stock options                                                                                                                                                                                                                            |                                 |  416,961   |   |
| Shares                issued for conversion of debt                                                                                                                                                                                                                                   |                                 |  50,000    |   |
| Shares                issued for services                                                                                                                                                                                                                                             |                                 |  478,687   |   |
| Shares                issued for cash, including PIPE                                                                                                                                                                                                                                 |                                 |  1,990,971 |   |
| **Outstanding                common stock as of June 30, 2006**                                                                                                                                                                                                                       |                                 | **55,301,513**  |   |

***Preferred      Stock***

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 17 — Equity –(continued)**

***Common Stock      Purchase Warrants***

**·**

**·**

**·**

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 17 — Equity –(continued)**

**·**

**·**

**·**

**·**

**·**

**Note 18 — Income      Taxes**

----

**WHERIFY      WIRELESS, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 18 — Income Taxes– (continued)**

|                                                                                                                                                                                                                                                   |                                |        |             |         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|-------------|---------|
| Deferred                tax assets:                                                                                                                                                                                                               |                           |   |        |    |
| Net                operating losses                                                                                                                                                                                                               |       | $      | 23,396,287  |    |
| Less:                 valuation                allowance                               |                           |   | (23,396,287 | )  |
| Net                deferred tax asset                                                                                                                                                                                                             |                           | $      | —     |    |

**Note 19 — Subsequent      Event**

----

**SIGNATURES**

|        |                        |                                                                      |
|--------|------------------------|----------------------------------------------------------------------|
|   | WHERIFY WIRELESS, INC. |
|   |                   |                                                                 |
|   | By:          | /s/ Timothy J. Neher                                                 |
|   |                   | Timothy J. Neher,Chief Executive Officer and                Director |

**POWER      OF ATTORNEY**

|                                        |                                |                                                                                   |                                |                    |
|----------------------------------------|--------------------------------|-----------------------------------------------------------------------------------|--------------------------------|--------------------|
| **Name**                               |                           | **Title**                                                                         |                           | **Date**           |
|                                   |                           |                                                                              |                           |               |
| /s/                Timothy J. Neher    |       | Chief Executive Officer(Principal Executive                Officer)and Director   |       | September 12, 2006 |
| Timothy                J. Neher        |
|                                   |                           |                                                                              |                           |               |
| s/                William B. Scigliano |                           | Director(Co-Chairman of the Board)                                                |                           | September 12, 2006 |
| William                B. Scigliano    |
|                                   |                           |                                                                              |                           |               |
| /s/                Douglas Hajjar      |                           | Director(Co-Chairman of the Board)                                                |                           | September 12, 2006 |
| Douglas                Hajjar          |
|                                   |                           |                                                                              |                           |               |
| /s/                Wade Fenn           |                           | Director                                                                          |                           | September 12, 2006 |
| Wade                Fenn               |
|                                   |                           |                                                                              |                           |               |
| /s/                John Micek III      |                           | Director                                                                          |                           | September 12, 2006 |
| John                Micek III          |
|                                   |                           |                                                                              |                           |               |
| /s/                Daniel McKelvey     |                           | Director                                                                          |                           | September 12, 2006 |
| Daniel                McKelvey         |                           |
|                                   |                           |                                                                              |                           |               |
| /s/                Mark E. Gitter      |                           | Chief Financial Officer(Principal Accounting                Officer)and Treasurer |                           | September 12, 2006 |
| Mark                E. Gitter          |

----