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

                                    FORM 10-Q


[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
      For the quarterly period ended March 31, 2008

                                       or

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



                         Commission File Number: 0-25658

                       SECURED DIGITAL APPLICATIONS, INC.
             (Exact name of registrant as specified in its charter)

                DELAWARE                                 84-1357927
     (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)                  Identification No.)


                230, PARK AVENUE, 10TH FLOOR, NEW YORK, NY 10169
               (Address of principal executive offices) (Zip Code)

                                 (212) 551 1747
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
                                [X] Yes     [ ] No

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

     Large accelerated filer[ ]                 Accelerated filer          [ ]
     Non-accelerated filer  [ ] (Do not check   Smaller reporting company  [X]
                                 if a smaller
                               reporting company)

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

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
<TABLE>
<CAPTION>
<S>            <C>                                             <C>

              Class                         Number of shares outstanding as of May 14, 2008
              -----                         -----------------------------------------------
 Common stock, $.00001 par value                               142,476,314
</TABLE>

                                       1
<PAGE>

FORM 10-Q
1ST QUARTER
<TABLE>
<CAPTION>
<S>               <C> <C>                                                                               <C> <C>

                                      INDEX

PART I  -  FINANCIAL INFORMATION

     ITEM 1.    FINANCIAL STATEMENTS

         Condensed consolidated balance sheets as at March 31, 2008 (Unaudited) and
         December 31, 2007 (Audited)                                                                    3 - 4

         Condensed consolidated statements of income and comprehensive income for the
         three-month periods ended March 31, 2008 and 2007 (Unaudited)                                  5 - 6

         Condensed consolidated statements of cash flows for the three-month periods
         ended March 31, 2008 and 2007 (Unaudited)                                                      7

         Notes to condensed consolidated financial statements (Unaudited)                               8 - 12

     ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                 RESULTS OF OPERATIONS                                                                  13 - 16

     ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                              17

     ITEM 4(T). CONTROLS AND PROCEDURES                                                                 17

PART II  -  OTHER INFORMATION

     ITEM 1.    LEGAL PROCEEDINGS                                                                       18

     ITEM 1A.   RISK FACTORS                                                                            18

     ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                             18

     ITEM 3.    DEFAULTS UPON SENIOR SECURITIES                                                         18

     ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                     18

     ITEM 5.    OTHER INFORMATION                                                                       18

     ITEM 6.    EXHIBITS                                                                                18

     SIGNATURES                                                                                         19
</TABLE>

SAFE HARBOR STATEMENT

This quarterly report on Form 10-Q and other reports filed by the Company
from time to time with the United States Securities and Exchange Commission (the
"SEC"),  as  well  as the  Company's  press  releases,  contain  or may  contain
forward-looking statements,  within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Information
is provided that is based upon beliefs of, and information  currently  available
to, the Company's  management,  as well as estimates and assumptions made by the
Company's management. The Company is including this cautionary statement in this
Form 10-Q to make applicable and to take advantage of the safe harbor provisions
of the Private Securities  Litigation Reform Act of 1995 for any forward-looking
statements  made by or on behalf of us.  Statements  that are not  statements of
historical fact may be deemed to be forward-looking statements.  Forward-looking
statements can be identified by the use of  forward-looking  terminology such as
"believes," "may," "should,"  "anticipates,"  "estimates,"  "expects," "future,"
"intends,"   "hopes,"  "plans,"   "projects"  or  the  negative  thereof.   Such
forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors that could cause actual results of the Company to vary  materially
from historical  results or from any future results expressed or implied in such
forward-looking statements.

These factors include, among others, the following: the inability of the Company
to successfully implement its business plans, the cancellation or postponement
of contracts that the Company has entered into in connection with its business,
the inability to obtain services provided by other companies or service
providers, the inability of the Company to raise capital on a timely basis, the
inability of the Company to meet certain covenants contained in trade financing
agreements, existing and future government regulations, changes and fluctuation
in foreign currency exchange rates, the failure to retain qualified personnel,
competitive pressures and potentially adverse tax and cash flow consequences
resulting from operations in multiple countries with different laws and
regulations, and the general economic and business conditions in Malaysia,
China, the United States and the other countries in which we do business,
primarily in Asia. The Company does not undertake to update, revise or correct
any forward-looking statements.

                                       2
<PAGE>

PART I  -  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 2008 AND DECEMBER 31, 2007
<TABLE>
<CAPTION>
<S>                                                                                   <C>               <C>
                                                                                          March 31,       December 31,
                                                                                            2008              2007
                                                                                      ----------------- ----------------
                                                                                         (Unaudited)
                                        ASSETS
Current assets:
  Cash                                                                                $          22,208 $         40,385
  Trade and other accounts receivable                                                        10,058,125        8,902,465
    less allowance for doubtful accounts of $28,215 and $27,699, respectively
  Prepaid expenses                                                                               19,676           18,539
                                                                                       ----------------  ---------------
      Total current assets                                                                   10,100,009        8,961,389
Property and equipment, net                                                                   3,563,760        3,718,150
Goodwill                                                                                        471,260          471,260
                                                                                       ----------------  ---------------
                                                                                      $      14,135,029 $     13,150,799
                                                                                       ================  ===============

                         LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current portion of capital lease obligations                                        $          36,297 $         35,634
  Accounts payable                                                                              537,666          531,133
  Accrued expenses                                                                              227,910          209,877
  Amount due to an affiliated company                                                            31,427           23,668
  Amount due to a director                                                                        2,033           88,632
  Income tax payable                                                                            121,172           47,151
                                                                                       ----------------  ---------------
      Total current liabilities                                                                 956,505          936,095
Deferred tax                                                                                    570,595          461,525
                                                                                       ----------------  ---------------
      Total liabilities                                                                       1,527,100        1,397,620
                                                                                       ----------------  ---------------
</TABLE>
                                   (continued)

                                       3
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
                      MARCH 31, 2008 AND DECEMBER 31, 2007

<TABLE>
<CAPTION>
<S>                                                                                             <C>              <C>
                                                                                          March 31,       December 31,
                                                                                             2008             2007
                                                                                       ---------------- ----------------
                                                                                         (Unaudited)

Minority interest                                                                               231,062          218,016
                                                                                       ---------------- ----------------
Commitments

Stockholders' equity:
  Series B convertible preferred stock, $0.10 par value;
    1,000,000 shares authorized; 100,000 shares issued and outstanding, liquidation
    preference $2,500,000                                                                        10,000           10,000
  Common stock, $.00001 par value:
    350,000,000 shares authorized; 144,852,094 shares issued and 139,726,314 shares
    outstanding in 2008 and 143,172,594 shares issued and 137,796,814 shares
    outstanding in 2007                                                                           1,395            1,375
Additional paid-in capital                                                                    7,790,232        7,665,244
Common treasury stock - at cost, 5,125,780 shares in 2008 and 5,375,780 shares in 2007               --               --
Options                                                                                          75,675           73,561
Warrants                                                                                        958,768          953,643
Retained earnings                                                                             2,979,461        2,280,005
Accumulated other comprehensive income                                                          561,336          551,335
                                                                                       ---------------- ----------------
      Total stockholders' equity                                                             12,376,867       11,535,163
                                                                                       ---------------- ----------------
      Total liabilities and stockholders' equity                                       $     14,135,029 $     13,150,799
                                                                                       ================ ================
</TABLE>
            See notes to condensed consolidated financial statements

                                       4
<PAGE>



               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                                      <C>             <C>
                                                                                          Three months ended March 31,
                                                                                               2008           2007
                                                                                         --------------- --------------
Revenues                                                                                 $    14,509,361 $   10,370,802

Cost of revenues                                                                              13,266,904      9,680,175
                                                                                         --------------- --------------
Gross profit                                                                                   1,242,457        690,627
                                                                                         ---------------  -------------
Operating expenses:
  Sales and marketing                                                                             15,669          3,884
  General and administrative:
    Related parties                                                                               37,427         36,835
    Others                                                                                       481,184        399,318
                                                                                         --------------- --------------
Total operating expenses                                                                         534,280        440,037
                                                                                         --------------- --------------
Income from operations                                                                           708,177        250,590
                                                                                         --------------- --------------
Other income (expense):
  Gain on foreign currency transactions                                                          175,373        110,952
  Previously deferred gain on sale of technology, related parties                                     --         25,290
  Other income                                                                                        --          2,563
                                                                                         --------------- --------------
                                                                                                 175,373        138,805
                                                                                         --------------- --------------
Income before provision for income taxes and minority interest                                   883,550        389,395

Provision for income taxes                                                                      (175,043)       (63,509)
                                                                                         --------------- --------------
Income before minority interest                                                                  708,507        325,886

Minority interest                                                                                 (9,051)        (6,121)
                                                                                         --------------- --------------
Income from continuing operations                                                                699,456        319,765
                                                                                         --------------- --------------
Discontinued operations:
  Loss from discontinued operation - net of minority interest and income taxes                        --         (8,665)
                                                                                         --------------- --------------
Loss from discontinued operations                                                                     --         (8,665)
                                                                                         --------------- --------------
Net income                                                                               $       699,456 $      311,100
                                                                                         ===============  =============
COMPREHENSIVE INCOME
Net income                                                                               $       699,456 $      311,100
Other comprehensive income:
  Foreign currency translation adjustments                                                        10,001         58,351
                                                                                         --------------- --------------
Comprehensive income                                                                     $       709,457 $      369,451
                                                                                         =============== ==============
</TABLE>

                                       5
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                                            <C>          <C>
                                                                                             Three months ended March 31,
                                                                                                  2008          2007
                                                                                                  ----          ----
Net income per common share:
  Basic **                                                                                     $       0.01 $          *
                                                                                               ============ ============
  Diluted **                                                                                              *            *
                                                                                               ============ ============
Weighted average shares outstanding:
  Basic                                                                                         138,407,765  129,236,089
                                                                                               ============ ============
  Diluted                                                                                       160,427,108  151,023,144
                                                                                               ============ ============
</TABLE>

*  Less than $0.01 per share.
** Net income per common share for discontinued operations is less than $0.01
   per share and not presented separately.

                                       6
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                                         <C>           <C>
                                                                                            Three months ended March 31,
                                                                                                 2008          2007
                                                                                            ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Change in operating assets and liabilities of continuing operations                       $     138,905 $      50,192
  Change in operating assets and liabilities of discontinued operations                                --         8,396
                                                                                            ------------- -------------
    Net cash provided by operating activities                                                     138,905        58,588
                                                                                            ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of equipment                                                                            (6,564)       (1,388)
                                                                                            ------------- -------------
    Net cash used in investing activities                                                          (6,564)       (1,388)
                                                                                            ------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of shares of common stock                                                104,216            --
  Proceeds from affiliated company                                                                  7,363        35,726
  Proceeds from a director                                                                             --           219
  Repayments to a director                                                                        (88,059)           --
                                                                                            ------------- -------------
    Net cash provided by financing activities                                                      23,520        35,945
                                                                                            ------------- -------------
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
  - continuing activities                                                                        (174,038)     (102,730)
  - discontinued activities                                                                            --        12,199
                                                                                            ------------- -------------
Net (decrease) increase in cash                                                                   (18,177)        2,614

Cash, beginning of period                                                                          40,385         7,644
                                                                                            ------------- -------------
Cash, end of period                                                                         $      22,208 $      10,258
                                                                                            ============= =============
</TABLE>

                 See notes to consolidated financial statements

                                       7
<PAGE>

              SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008
                                  (Unaudited)


NOTE 1 : BASIS OF PRESENTATION


The accompanying unaudited consolidated financial statements of Secured Digital
Applications, Inc. (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with Item 10-1 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three months ended
March 31, 2008, are not necessarily indicative of the results that may be
expected for the year ending December 31, 2008. These unaudited consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended December 31, 2007, as filed with the SEC.


NOTE 2:  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 157, Fair Value
Measurements, ("SFAS 157") which defines fair value, establishes a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS
157 applies under other accounting pronouncements that require or permit fair
value measurements, but it does not require any new fair value measurements.
SFAS 157 is effective for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. SFAS 157 could impact how fair values
are determined and assigned to assets and liabilities in any future acquisition.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities ("SFAS 159"). SFAS 159 permits
entities to choose to measure eligible financial instruments at fair value. The
unrealized gains and losses on items for which the fair value option has been
elected should be reported in earnings. The decision to elect the fair value
options is determined on an instrument by instrument basis, it should be applied
to an entire instrument, and it is irrevocable. Assets and liabilities measured
at fair value pursuant to the fair value option should be reported separately in
the balance sheet from those instruments measured using other measurement
attributes. SFAS 159 is effective as of the beginning of the first fiscal year
that begins after November 15, 2007. The implementation of this guidance is not
expected to have any impact on the Company's consolidated financial statements.

In December 2007, the FASB issued SFAS No. 160, Non-controlling Interests in
Consolidated Financial Statements - an amendment of ARB No. 51 ("SFAS 160").
SFAS 160 requires companies with non-controlling interests to disclose such
interests clearly as a portion of equity but separate from the parent's equity.
The non-controlling interest's portion of net income must also be clearly
presented on the income statement. SFAS 160 is effective for financial
statements issued for fiscals years beginning after December 15, 2008 and will
be adopted by the Company in the first quarter of fiscal year 2009. The Company
does not expect that the adoption of SFAS 160 will have a material impact on
our financial condition or results of operation.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations
(revised 2007) ("SFAS 141(R)"). SFAS 141(R) applies the acquisition method of
accounting for business combinations established in SFAS 141 to all acquisitions
where the acquirer gains a controlling interest, regardless of whether
consideration was exchanged. Consistent with SFAS 141, SFAS 141(R) requires the
acquirer to fair value the assets and liabilities of the acquiree and record
goodwill on bargain purchases, with main difference the application to all
acquisitions where control is achieved. SFAS 141(R) is effective for financial
statements issued for fiscal years beginning after December 15, 2008 and will be
adopted by the Company in the first quarter of fiscal year 2009. The Company
does not expect that the adoption of SFAS 141(R) will have a material impact on
our financial condition or results of operation.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative
Instruments and Hedging Activities,--an amendment of FASB Statement No. 133
("FAS 161"). FAS 161 requires enhanced disclosures about an entity's derivative
and hedging activities and thereby improves the transparency of financial
reporting. The objective of the guidance is to provide users of financial
statements with an enhanced understanding of how and why an entity uses
derivative instruments; how derivative instruments and related hedged items are
accounted for; and how derivative instruments and related hedged items affect an
entity's financial position, financial performance, and cash flows. FAS 161 is
effective for fiscal years beginning after November 15, 2008. Management is
currently evaluating the impact FAS 161 will have on the Company's consolidated
financial statements, but it currently does not expect the effect to be
material.


                                       8
<PAGE>


NOTE 3: NET INCOME PER COMMON SHARE

The Company computes earnings per share in accordance with the provisions
of SFAS No. 128, Earnings per Share ("SFAS 128"). Under the provisions of SFAS
128, basic net income per share is computed by dividing net income by the
weighted average number of common shares outstanding during the period
presented. Diluted net income per share reflects the potential dilution that
could occur from common stock issuable through stock based compensation
including stock options, restricted stock awards, warrants and other convertible
securities. The calculation of basic and diluted earnings per share is as
follows (in thousands, except per-share amounts):

<TABLE>
<CAPTION>
<S>                                                          <C>             <C>
                                                              Three months ended March 31,
                                                                   2008           2007
                                                                   ----           ----
      Net income                                             $           699 $          311
                                                             =============== ==============
      Weighted average shares outstanding - basic                    138,408        129,236
                                                             =============== ==============

      Net income per share - basic                           $          0.01 $            *
                                                             =============== ==============

      Weighted average shares outstanding - basic                    138,408        129,236
      Common stock issuable to consultant                              1,289          1,138
      Common stock issued to officer                                     498             --
      Convertible preferred stock                                     20,000         20,000
      Dilutive stock options and warrants                                232            649
                                                             --------------- --------------
      Weighted average shares outstanding - diluted                  160,427        151,023
                                                             =============== ==============
      Net income (loss) per share - diluted                  $             * $            *
                                                             =============== ==============
</TABLE>

*  Less than $0.01
** Net income per common share for discontinued operations is less than $.01 per
   share and not presented separately.

For the periods ended March 31, 2008 and 2007, options to purchase 730,000
and 1,080,000 shares of the Company's common stock respectively, were excluded
from the calculation of earnings per share as their issuance prices were in
excess of the average market price for the period. For the periods ended March
31, 2008 and 2007, warrants to purchase 4,600,000 shares of the Company's common
stock were excluded in the calculation of earnings per share as their issuance
prices were in excess of the average market price for the period.


NOTE 4: DISPOSAL OF SUBSIDIARIES

On June 27, 2007, the Company sold its wholly owned subsidiary company,
DigitalApps Technologies Sdn Bhd ("DAT"), which included its 55%-owned
subsidiary, Ispec Sdn Bhd ("ISS"), to a third party and recognized a gain on
disposal of $22,984. Both DAT and ISS were operating at a loss and did not meet
the Company's criteria for return on investment.

The results of operations of DAT and its subsidiary have been retroactively
restated as discontinued operations pursuant to SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.

                                       9
<PAGE>

NOTE 4: DISPOSAL OF SUBSIDIARIES (CONTINUED)

Results of discontinued operations are as follows for the periods indicated:
<TABLE>
<CAPTION>
<S>                                                            <C>                <C>
                                                                    Three months ended March 31,
                                                                      2008                2007
                                                                      ----                ----
      Revenue                                                  $               -- $                --
      Cost of revenues                                                         --                  --
                                                               ------------------ -------------------
      Gross profit                                                             --                  --
      Operating expenses                                                       --              (8,665)
                                                               ------------------ -------------------
      Loss from operations                                                     --              (8,665)
      Other income (expense)                                                   --                  --
                                                               ------------------ -------------------
      Loss before tax                                                          --              (8,665)
      Income tax                                                               --                  --
                                                               ------------------ -------------------
      Loss before minority interest                                            --              (8,665)
      Minority interest                                                        --                  --
                                                               ------------------ -------------------
      Loss from discontinued operations                        $               -- $            (8,665)
                                                               ================== ===================
</TABLE>

NOTE 5: RELATED PARTY TRANSACTIONS

LSH ASSET HOLDINGS SDN BHD ("LSH"):

LSH is a company wholly owned by the Company's Chief Executive Officer and
his wife. LSH billed the Company management fees totaling $30,000 for each of
the respective three months ended March 31, 2008 and 2007. LSH also billed
DigitalApps Sdn Bhd ("DASB") $7,427 and $6,835 for each of the three months
ended March 31, 2008 and 2007, respectively, for administrative and clerical
charges. LSH also made short term advances to the Company from time to time for
working capital purposes. As of March 31, 2008 and December 31, 2007, the amount
due to LSH was $31,427 and $23,668, respectively. This amount is unsecured,
bears no interest, has no fixed terms of repayment, and is recorded in the
financial statements as "Amount due to an affiliated company".

CHIEF EXECUTIVE OFFICER

As of March 31, 2008 and December 31, 2007, the Company owed Patrick Lim,
the Chief Executive Officer of the Company $2,033 and $88,632, respectively, for
short-term cash advances made to the Company from time to time for working
capital purposes. The amount owing to the Chief Executive Officer is unsecured,
bears no interest, has no fixed terms of repayment and is recorded in the
financial statements as "Amount due to a director".


                                       10
<PAGE>


NOTE 6: STOCKHOLDERS' EQUITY

COMMON STOCK

The Company issued from its treasury stock 100,000 shares of common stock
on each of June 13, 2007 and October 22, 2007 to a consultant pursuant to a
compensation agreement dated May 1, 2007, under which the Company is to issue an
aggregate of 400,000 shares of its common stock to the consultant for services
to be rendered to the Company for the twelve-month period ending April 30, 2008.
The Company recognized compensation expense of $4,542 for the three months ended
March 31, 2008 related to this compensation agreement.

The Company issued from its treasury stock 250,000 shares of common stock on
each of October 17, 2007, February 20, 2008 and April 18, 2008 to a consultant
pursuant to a compensation agreement dated August 20, 2007, under which the
Company is to issue an aggregate of 1,000,000 shares of its common stock to the
consultant for services to be rendered to the Company for the twelve-month
period ending August 19, 2008. The Company recognized compensation expense of
$21,375 for the three months ended March 31, 2008 related to this compensation
agreement.

On March 5, 2008, the Company issued 1,679,500 shares of common stock to Patrick
Lim, the Company's Chief Executive Officer, upon the exercise of warrants. The
Company received proceeds totaling $108,999 from Mr. Lim's warrant exercise.

On April 17, 2008, the Company issued 500,000 shares of common stock to Mr.
Lim, for achieving a compounded growth in group revenues of at least 15% percent
pursuant to a Stock Award Agreement dated October 21, 2006. The total
consideration amount of $62,000 is based on the market value of $0.124 per share
on the date of issuance.

On April 21, 2008, the Company issued from its treasury stock 2,000,000
shares of common stock to a consultant pursuant to a compensation agreement
dated April 18, 2008, under which the Company is to issue an aggregate of
2,000,000 shares of its common stock to the consultant for services to be
rendered for the twelve-month period ending April 17, 2009. The total
consideration amount of $300,000 is based on the market value of $0.15 per share
on the date of issuance.

                                       11
<PAGE>


NOTE 7: SIGNIFICANT CONCENTRATIONS

Two customers accounted for the following revenue for the three months ended
March 31, 2008 and 2007:

                                               Three months ended March 31,
                                                 2008                 2007
                                                 ----                 ----
       Customer 1                                 50%                 48%
       Customer 2                                 44%                 49%
                                             --------             --------
       Total                                      94%                 97%
                                             ========             ========

At March 31, 2008 and 2007, two customers accounted for substantially all of the
trade accounts receivable.

Three suppliers accounted for substantially all cost of revenues during the
three months ended March 31, 2008 and 2007. The Company is not dependent upon
one supplier to provide the services that it requires but made a strategic
decision to engage the services of only a small number of suppliers after taking
into consideration the quality of service and competitive pricing being offered.
Should the need arise, the Company believes that it could utilize alternative
suppliers for the services that it requires.

                                       12
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE COMPANY
SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS, INCLUDING THE NOTES THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN
THIS FORM 10-Q.

The following is management's discussion and analysis of certain significant
factors affecting our financial position and operating results during the
periods included in the accompanying condensed consolidated financial
statements. Except for the historical information contained herein, the matters
set forth in this report are forward-looking statements.

OVERVIEW

Secured Digital Applications, Inc. ("SDA" or the "Company") is a provider
of mobile communication and information technology consulting services. Our
strategy is to provide business services to our customers in a manner that is
both superior in quality and more cost efficient than the customer can provide
themselves. Our services are focused in the areas of multimedia production,
information technology and computing consulting services, smarthome, biometric
security and Bluetooth, GPS and RFID-enabled applications. As a supplier and
consultant, we rely on a combination of current technologies to provide
high-quality services at competitive prices.

The Company has provided outsourced information technology and multimedia
content production services since 2000. We began to provide services in security
applications, particularly biometric security applications, during 2003. SDA
continues to seek to add to its holdings with acquisitions that meet
management's criteria for inclusion in the group of SDA companies. In general,
we continue to seek out regional businesses with strong management willing to
remain in considerable positions of responsibility as minority equity holders.
We also seek businesses that are operating at a profit or near break-even
and which provide a superior opportunity for high rates of growth after
integration into the SDA group of companies. In considering potential
acquisitions, SDA evaluates such factors as

-   the "fit" of the potential acquisition among SDA's existing subsidiaries, in
    particular whether the acquisition is complementary to SDA's existing
    operating subsidiaries;
-   the capabilities of existing management and the willingness of existing
    management to continue with the enterprise as employees and minority equity
    holders;
-   whether the enterprise provides, in management's view, a superior potential
    for growth and profitability after acquisition;
-   whether the enterprise, in management's view, can be successfully and
    beneficially integrated with SDA's existing business
    processes;
-   the terms under which existing management is prepared to convey a majority
    interest to SDA; and
-   the demonstrated ability of existing management to operate the enterprise
    profitably.

Since 2000, we have succeeded in financing our acquisitions primarily with
internally generated funds and with the issuance of our common stock. This
strategy has permitted the Company to maintain a low debt to equity ratio. There
can be no assurance, however, that we will be able to continue to pay for
acquisitions with internally generated funds and it is likely that we will
require additional funding, which may result in the issuance of additional
equity or debt.

SDA's core line of business is media production and information technology
applications, which account for the majority of our revenue. Our operating
subsidiaries offer products in diverse lines of business including the
development of Internet content, digital security and biometric products. We
conduct our principal operations in Malaysia.

The accompanying condensed consolidated financial statements include the
accounts of the Company and its subsidiaries.

For the three months ended March 31, 2008 and 2007, the Company's revenue was
generated primarily from the following activities:

-   Designing, producing, hosting and distribution of interactive multimedia
    content, websites, programs and applications;
-   Developing and producing e-commerce programs and Internet-based
    security applications andsolutions; and
-   Providing project consulting services on broadband communication and
    networking systems for property development projects.

We continue to pursue opportunities to provide technical consulting and
technical services to commercial businesses. Further, we continue to seek
opportunities to combine the Company's expertise in supply chain management
solutions with wireless technologies like Bluetooth, RFID and GPS tracking
systems and biometric security systems for the retailing, logistics and
warehousing, telecommunication, transportation, healthcare, security and
manufacturing industries.

                                       13
<PAGE>

In November 2007, the Company acquired the right to the source code for the
Bluetooth cell integration, cell management and proximity marketing software.
Since acquiring the right, the Company has utilized the source code to develop a
host of applications for the retailing, logistics and warehousing,
telecommunication, transportation, healthcare, security and manufacturing
industries.

Operations During 2008

The Company's principal operations during 2008 included multimedia
production, information technology and computing services, sales of smarthome,
biometric security and Bluetooth, GPS and RFID-enabled applications. We marketed
hardware, software and consulting services to a number of companies in the
public and private sectors. Our hardware products included the EyStar SmartHome
Management System, biometric systems and Internet-based cameras. SDA sells its
products in connection with consulting contracts that are awarded to the
Company. We presently provide these services principally to customers in
Southeast Asia.

The Company managed to establish a toehold in China when it secured its first
contract during December 2007, valued at $2.825 million, to install and maintain
a real-time GPS fleet tracking management system for 1,100 trucks owned by a
leading operator in Guangdong Province. The installation works is scheduled to
begin in the second quarter of 2008.

Negotiations are underway in Australia with channel partners to secure contracts
for the delivery of our Bluetooth and RFID-enabled applications for the mining,
healthcare, public utilities and entertainment industries. We anticipate
contracts to be executed in the third and fourth quarter of 2008.

In October 2007, we secured our first contract in the United States valued at
$16.0 million for the supply of personal and vehicle trackers to a Memphis,
Tennessee based company. The Company is currently negotiating with the customer
on the terms and conditions and the new delivery date.


RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and
results of operations should be read in conjunction with the condensed
consolidated financial statements and notes to the condensed consolidated
financial statements, included elsewhere in this quarterly report on Form 10-Q.

The following table sets forth certain operating data for the Company and its
subsidiaries for the periods as indicated below.
<TABLE>
<CAPTION>
<S>                                                           <C>                <C>

                                                                 Three months ended March 31,
                                                                   2008                2007
                                                              --------------      --------------
      Revenue                                                 $    14,509,361    $      10,370,802
      Gross profit                                                  1,242,457              690,627
      Sales and marketing                                              15,669                3,884
      General and administrative                                      518,611              436,153
      Gain on disposal of assets-related parties                           --               25,290
      Income from continuing operations                               699,456              319,765
      Income from discontinued operations                                  --               (8,665)
      Net income                                                      699,456              311,100
</TABLE>


COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2008 TO THE THREE MONTHS ENDED
MARCH 31, 2007

Revenue

Total revenue increased by $4,138,559 or 40%, to $14,509,361 for the three
months ended March 31, 2008, as compared to $10,370,802 for the three months
ended March 31, 2007.

The increase in total revenue was mainly due to an increase in fees earned
from the production of multimedia programs and business contracts. The increase
in revenue from the production of multimedia programs was a result of increased
sub-contract work from the clients of the Company's two major customers. Revenue
for project consulting services was generated from four project consulting
contracts that the Company secured in 2001, 2002 and 2003. In the three months
ended March 31, 2008, two customers, accounted for 50% and 44% of total revenue.
In the three months ended March 31, 2007, the same two customers accounted for
48% and 49% of total revenue.

                                       14
<PAGE>

Gross Profit

Gross profit increased to $1,242,457 for the three months ended March 31,
2008, compared to $690,627 for the three months ended March 31, 2007, an
increase of $551,830 or 80%. Gross profit margin increased to 8.6% in the
quarter ended March 31, 2008 versus 6.7% the quarter ended March 31, 2007.

The increase in gross profit in 2008 was due to higher revenue, particularly
consulting revenue, which has a much higher margin than production work. As a
result of higher revenue, cost of revenues increased by $3,586,729 or 37%, to
$13,266,904 in 2008 from $9,680,175 in 2007. The increase in cost of revenue was
primarily due to the Company requiring additional external resources in order to
fulfill the higher demand for the Company's services. The outsourcing of content
production work enabled the Company to develop a team of contractors that will
assist the Company in producing multimedia content and applications that are
crucial to its future business operation.

Sales and marketing expenses

Sales and marketing expenses increased by $11,785 or 302% to $15,669 for the
three months ended March 31, 2008 from $3,884 for the three months ended March
31, 2007, primarily as a result of an increase in travel expenses.

General and administrative expenses

General and administrative expenses involving non-related parties increased by
$81,866 or 21% to $481,184 for the three months ended March 31, 2008, as
compared to $399,318 for the three months ended March 31, 2007.

The increase was primarily attributable to an increase in depreciation of
tangible assets, salaries, professional and auditing fees, investor relations
and general office expenses. For the three months ended March 31, 2008, of the
total general and administrative expenses of $481,184, 48% was for depreciation
of tangible assets, 1% was for consulting fees and 15% was for employee payroll.
Another 16% was for fees for professional and auditing services, 4% was for
investor relations expenses, 8% was for both employee and stock compensation
expenses and approximately 8% was for rent, utilities, general office supplies,
communications and corporate insurance expenses. For the three months ended
March 31, 2007, out of the total general and administrative expenses of
$399,318, 18% was for depreciation of tangible assets, 15% was for consulting
fees and 15% was for employee payroll. Another 13% was for fees for professional
and auditing services, 1% was for investor relations expenses, 31% was for
compensation expenses and approximately 7% was for rent, utilities, general
office supplies, communications and corporate insurance expenses.

General and administrative expenses - related parties for the three months
ended March 31, 2008 and 2007 were $37,427 and $36,835, respectively. General
and administrative expenses - related parties included management fees and
administrative expenses payable by the Company to a company in which Mr. Lim
has a financial interest. For the three months ended March 31, 2008, the related
company, LSH Assets Holdings Sdn Bhd ("LSH"), billed the Company's Malaysian
subsidiary, DASB, $7,427 and $6,835 for the three months ended March 31, 2008
and 2007, respectively, for administration and clerical fees. The Company also
incurred management fees of $30,000 for each of the three months ended March 31,
2008 and 2007. The management fee was charged on the basis of time spent for the
administration and management services provided to the Company.

Gain on disposal of assets - related parties

For the three months ended March 31, 2007, the Company included recognition
of a previously deferred gain of $25,290, related to a amount the Company
received from its long-term receivable, related party. The receivable balance
and total deferred gain was $0 as of December 31, 2007. These amounts arose in
the year ended December 31, 1998, when the Company sold assets used in the
operations of a subsidiary to a related company. Due to the uncertainty of
collection of the related receivable, a related gain on the sale of the assets
was deferred and is to be recognized only after all costs have been recovered
and to the extent the receivable is collected. During the year ended December
31, 2002, payments received by the Company exceeded all remaining costs. As a
result, the Company's long-term receivable, related party and deferred gain
balances were reduced to $84,835, as of March 31, 2007. This amount was fully
settled as of December 31, 2007.

Liquidity and Capital Resources

As of March 31, 2008, the Company had cash of $22,208.

                                       15
<PAGE>

For the three months ended March 31, 2008, operations were primarily funded
from internally generated funds and working capital advanced from time to time
by Mr. Lim. These advances bear no interest and have no fixed terms of
repayment.

As of March 31, 2008, the Company owed Mr. Lim, $2,033 for short-term cash
advances made to subsidiaries of the Company for working capital purposes from
time to time. Additionally, at March 31, 2008, the amount owed to a company in
which Mr. Lim has a financial interest was $31,427. This amount was for
short-term cash advances made to the Company and its subsidiaries for working
capital purposes from time to time and for management and administrative fees.
These amounts are unsecured, bear no interest and have no fixed terms of
repayment.

The net cash provided by operating activities for the three months ended March
31, 2008 was $138,905 and was primarily the result of income and non-cash
expenses for the period offset by an increase in accounts receivable.

Cash used in investing activities of $6,564 for the three months ended March 31,
2008 was primarily attributable to the purchase of computer software and
equipment.

Cash generated from financing activities of $23,520 in 2008 resulted from
proceeds received from the issuance of shares of common stock totaling $104,216,
repayment to a director totaling $88,059 and advances from an affiliate totaling
$7,363.

In addition to internally generated funds and financial support from a
director and major stockholder, Mr. Lim, the Company may seek to raise
additional funds from equity or debt financing for its future working capital
requirements.

The Company will be expanding into new businesses that include provision of
Bluetooth, RFID, GPS, outsourced business support and supply chain management
services. The Company expects to incur further expenses to acquire technologies
that are synergistic to the new businesses and will help the Company to rollout
the new businesses in the shortest time possible. The Company estimates that it
will require $4.5 million to finance the set-up cost of its new businesses. The
Company also expects that it will require a further $2.0 million to finance the
working capital of its new businesses.

The Company will continuously evaluate its financing requirements and may decide
to consider alternative modes of financing.


Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet transactions that are
expected to have a material effect on the Company's financial condition,
revenues, expenses, results of operations, liquidity, capital expenditures or
capital resources.

                                       16
<PAGE>

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to smaller reporting companies.

ITEM 4(T).  CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms, and that such information is accumulated and communicated
to management, including our Chief Executive Officer and Chief Accounting
Officer, timely decisions regarding required disclosure based closely on the
definition of "disclosure controls and procedures" in Rule 13a-15(e).

As of the end of the period covered by this report, we carried out an
evaluation, under the supervision and with participation of management,
including our Chief Executive Officer and Chief Accounting Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our Chief Executive Officer and Chief
Accounting Officer concluded that our disclosure controls and procedures were
effective.

During the quarter ended March 31, 2008, there have been no changes in our
internal controls over financial reporting that have materially affected, or are
reasonably likely to materially affect, these controls.

                                       17
<PAGE>


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

In the ordinary course of our business we are periodically threatened with
or named as a defendant in legal proceedings. As of the end of the period for
which this report is filed, there are no pending legal proceedings to which we
are a party or to which our property is subject that management believes to be
material to our business, results of operations or financial condition.

ITEM 1A. RISK FACTORS

The Company's business, financial condition, operating results and cash
flows can be impacted by a number of factors, any one of which could cause the
Company's actual results to vary materially from recent results or from the
Company's anticipated future results. For a discussion identifying risk factors
and important factors that could cause actual results to differ materially from
those anticipated, see the Company's Annual Report on Form 10-K for the year
ended December 31, 2007.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company signed a compensation agreement with a consultant on August 20, 2007
under which the Company agreed to issue an aggregate of 1,000,000 shares of its
common stock to the consultant for services to be rendered for the twelve-month
period ending July 14, 2008. On February 20, 2008, the Company issued 250,000
shares of common stock to the consultant pursuant to this agreement for an
aggregate consideration in the form of services rendered by the consultant equal
to $37,000.

The Company relied upon the exemptions from registration provided by Section
4(2) of the Securities Act of 1933, as amended, and Regulation D promulgated
thereunder for the issuances of these securities.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.


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

None.


ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS


31.1  Certification by Chief Executive Officer pursuant to Rule 13A-14 or 15D-14
      of the Securities Exchange Act of 1934

31.2  Certification by Chief Accounting Officer pursuant to Rule 13A-14 or
      15D-14 of the Securities Exchange Act of 1934

32.1  Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350

32.2  Certification by Chief Accounting Officer pursuant to 18 U.S.C. 1350


                                       18
<PAGE>

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                  Secured Digital Applications, Inc.
                                       (registrant)


Dated: May 14, 2008               By:   /s/ Patrick Soon-Hock Lim
                                  -------------------------
                                  Patrick Soon-Hock Lim
                                  Chairman and Chief Executive Officer



Dated: May 14, 2008               By:   /s/ Kelvin Choon-Huat Ng
                                  -------------------------
                                  Kelvin Choon-Huat Ng
                                  Chief Accounting Officer


                                       19