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

                                    FORM 10-Q

                                   (MARK ONE)

        [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934


              FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007 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 SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

              DELAWARE                                   84-1357927
    (STATE OR OTHER JURISDICTION OF            (IRS EMPLOYER IDENTIFICATION NO.)
     INCORPORATION OR ORGANIZATION)

                 230 Park Avenue, 10th Floor New York, NY 10169

                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (212) 551-1747
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

                                       N/A
              (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                          IF CHANGED SINCE LAST REPORT)


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

                                   Yes X   No
                                      ---     ---
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of accelerated
filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

 Large accelerated filer __    Accelerated filer __   Non-accelerated filer  X

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                   Yes     No  X
                                      ---     ---

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


<TABLE>
<S>                                  <C>
            Class                          Number of shares outstanding at November 14, 2007
--------------------------------     ------------------------------------------------------------
Common stock, $.00001 par value                              136,196,814
</TABLE>

<PAGE>

FORM 10-Q
3RD QUARTER

                                      INDEX
<TABLE>
<CAPTION>
<S>                                                                                                        <C>

                                                                                                           Page

PART I  - FINANCIAL INFORMATION

         ITEM 1. FINANCIAL STATEMENTS

         Consolidated balance sheets as at September 30, 2007 (Unaudited)                                  3 - 4
         and December 31, 2006 (Audited)

         Consolidated statements of income and comprehensive income for the three-month
         and nine-month periods ended September 30, 2007 and 2006 (Unaudited)                              5 - 6

         Condensed consolidated statements of cash flows for the nine-month
         periods ended September 30, 2007 and 2006 (Unaudited)                                               7

         Notes to consolidated financial statements (Unaudited)                                             8 - 15

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS                                                                         16 - 22

         ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  23

         ITEM 4. CONTROLS AND PROCEDURES                                                                     23

PART II - OTHER INFORMATION

         ITEM 1. LEGAL PROCEEDINGS                                                                           24

         ITEM 1A. RISK FACTORS                                                                               24

         ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 24

         ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                                             24

         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                         24

         ITEM 5. OTHER INFORMATION                                                                           24

         ITEM 6. EXHIBITS                                                                                    25

         SIGNATURES                                                                                          26
</TABLE>


                                        2

<PAGE>

Introductory Note
-----------------

The information contained in this quarterly report on Form 10-Q reflects the
effect of a reorganization during 2006 of the Company's principal operating
subsidiaries and the disposition of certain other assets and operating
subsidiaries in June 2007. As a result, certain results of prior periods have
been reclassified to reflect certain operations, previously reported as
continuing operations, as having been discontinued. The reclassification of
these operations, primarily related to the Company's former operations as the
operator of retail computer stores and a secured shipping subsidiary, are
described in more detail in the financial statements and notes thereto, as well
as in Management's Discussion and Analysis.


PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                               SEPTEMBER 30, 2007
<TABLE>
<CAPTION>
<S>                                                                            <C>                  <C>
                                                                                  September 30,        December 31,
                                                                                       2007                 2006
                                                                                ------------------- --------------------
                                                                                   (Unaudited)

                    ASSETS

Current assets:
     Cash                                                                      $             54,248 $              7,644
     Trade and other accounts receivable
       less allowance for doubtful accounts of $26,955 and $26,006,
        respectively                                                                     10,638,466            8,327,515
     Prepaid expenses                                                                        58,170               14,142
     Current assets of discontinued operations                                                   --              220,540
                                                                                ------------------- --------------------
      Total current assets                                                               10,750,884            8,569,841
Property and equipment, net                                                                 812,450              990,590
Long-term receivables, related party                                                         25,954              108,247
Goodwill                                                                                    471,260              471,260
Non-current assets of discontinued operations                                                    --               28,351
                                                                                ------------------- --------------------
                                                                               $         12,060,548 $         10,168,289
                                                                                =================== ====================

                    LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Current portion of capital lease obligations                              $             34,676 $             33,455
     Accounts payable                                                                       390,002              678,511
     Accrued expenses                                                                        89,002               65,595
     Amount due to an affiliated company                                                    121,901               17,927
     Amount due to a director                                                                77,924               10,578
     Amounts due to directors of subsidiary                                                 104,060              100,396
     Income tax payable                                                                     428,567               11,045
     Current liabilities of discontinued operations                                              --              254,150
                                                                                ------------------- --------------------
              Total current liabilities                                                   1,246,132            1,171,657
Deferred tax                                                                                204,010              208,723
Deferred gain                                                                                25,954              108,247
                                                                                ------------------- --------------------
Total liabilities                                                                         1,476,096            1,488,627
                                                                                ------------------- --------------------
</TABLE>

                                  (continued)

                                       3
<PAGE>

               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                               SEPTEMBER 30, 2007
<TABLE>
<CAPTION>
<S>                                                                                           <C>               <C>
                                                                                       September 30,     December 31,
                                                                                           2007              2006
                                                                                      ---------------  ----------------
                                                                                        (Unaudited)

Minority interest                                                                             212,687           180,866
                                                                                      ---------------  ----------------

Commitments and contingencies

Shareholders' equity:
  Series B convertible preferred stock, $0.10 par value;                                       10,000            10,000
   1,000,000 shares authorized; 100,000 shares issued and
   outstanding, liquidation preference $2,500,000

  Common stock, $.00001 par value; 350,000,000 shares authorized;
   142,572,594 and 141,572,594 shares issued,
   respectively; 135,846,814 and 128,721,391 shares outstanding,
   respectively                                                                                 1,370             1,287
  Additional paid-in capital                                                                7,338,165         6,746,129
  Common treasury stock, 6,725,780 and 12,851,203 shares at cost, respectively                     --                --
  Options                                                                                     110,112           101,904
  Warrants                                                                                    911,451           784,875
  Deferred compensation                                                                      (111,775)          (48,175)
  Retained earnings                                                                         1,716,147           657,384
  Accumulated other comprehensive income                                                      396,295           245,392
                                                                                      ---------------  ----------------

              Total shareholders' equity                                                   10,371,765         8,498,796
                                                                                      ---------------  ----------------

              Total liabilities and shareholders' equity                             $     12,060,548 $      10,168,289
                                                                                      ===============  ================
</TABLE>
           See accompanying notes to consolidated financial statements

                                       4
<PAGE>

               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                   <C>          <C>         <C>          <C>
                                                                         Three months ended        Nine months ended
                                                                           September 30,             September 30,
                                                                          2007        2006         2007         2006
                                                                       ----------   ---------   ----------   ----------

Revenues:

Services:
  Related parties                                                     $   739,314  $  268,497  $ 1,599,424  $   427,794
  Others                                                               11,078,756   9,370,016   31,599,658   25,213,694
                                                                       ----------   ---------   ----------   ----------
                                                                       11,818,070   9,638,513   33,199,082   25,641,488
                                                                       ----------   ---------   ----------   ----------

Cost of revenues:

Services:
  Related parties                                                         221,794      80,549      479,827      128,414
  Others                                                               10,550,968   8,681,259   30,093,297   24,012,729
                                                                       ----------   ---------   ----------   ----------
                                                                       10,772,762   8,761,808   30,573,124   24,141,143
                                                                       ----------   ---------   ----------   ----------
Gross profit                                                            1,045,308     876,705    2,625,958    1,500,345
                                                                       ----------   ---------   ----------   ----------

Operating expenses:
     Sales and marketing                                                   22,131      11,640       29,255       15,242
     General and administrative:
       Related parties                                                     36,911      36,519      110,719      109,501
       Others                                                             519,583     381,154    1,305,320    1,378,395
                                                                       ----------   ---------   ----------   ----------
Total operating expenses                                                  578,625     429,313    1,445,294    1,503,138
                                                                       ----------   ---------   ----------   ----------
Income (loss) from operations                                             466,683     447,392    1,180,664       (2,793)
                                                                       ----------   ---------   ----------   ----------

Other income (expense):
     Interest expense                                                           -        (303)           -       (1,912)
     Gain (loss) on foreign currency transactions                          58,854      (6,590)     168,672       52,167
     Previously deferred gain on sale of
       technology - related party                                          28,798      22,002       84,547       66,356
     Write-off of old vendor payables                                      35,512           -       35,512            -
     Other income                                                               2      64,570        5,180       82,803
                                                                       ----------   ---------   ----------   ----------
                                                                          123,166      79,679      293,911      199,414
                                                                       ----------   ---------   ----------   ----------
Income before provision for income taxes
and minority interest                                                     589,849     527,071    1,474,575      196,621

Provision for (income taxes) tax credits                                 (179,938)    111,735     (396,835)      26,813
                                                                       ----------   ---------   ----------   ----------
Income before minority interest                                           409,911     638,806    1,077,740      223,434

Minority interest                                                         (11,034)    (10,403)     (24,726)     (19,273)
                                                                       ----------   ---------   ----------   ----------
Income from continuing operations                                         398,877     628,403    1,053,014      204,161

Discontinued operations:
     Income (loss) from discontinued
     operations - net of minority interest and
     income taxes                                                              (2)   (252,620)     (17,250)     148,158
     Gain on disposal of discontinued subsidiaries                             15     156,649       22,999      156,649
                                                                       ----------   ---------   ----------   ----------
Income (loss) from discontinued operations                                     13     (95,971)       5,749      304,807
                                                                       ----------   ---------   ----------   ----------
</TABLE>

           See accompanying notes to consolidated financial statements

                                       5
<PAGE>

               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (CONTINUED)
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                 <C>          <C>           <C>          <C>
                                                                        Three months ended         Nine months ended
                                                                          September 30,              September 30,
                                                                        2007         2006          2007         2006
                                                                     -----------  -----------   -----------  -----------


Net income                                                          $    398,890 $    532,432  $  1,058,763 $    508,968
                                                                     ===========  ===========   ===========  ===========


COMPREHENSIVE INCOME

Net income                                                          $    398,890 $    532,432  $  1,058,763 $    508,968

Other comprehensive income:

Foreign currency translation adjustments                                  93,118      (85,138)      150,904       67,324
                                                                     -----------  -----------   -----------  -----------

Comprehensive income                                                $    492,008 $    447,294  $  1,209,667 $    576,292
                                                                     ===========  ===========   ===========  ===========

Net income per common share:
     Basic and diluted **                                           $          * $          *  $          * $          *
                                                                    ============ ============= ============ ============

Weighted average shares outstanding:
     Basic                                                           133,817,031  137,745,028   131,303,755  134,349,121
                                                                     ===========  ===========   ===========  ===========

     Diluted                                                         156,624,406  138,126,006   156,711,538  136,443,626
                                                                     ===========  ===========   ===========  ===========

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

           See accompanying notes to consolidated financial statements


                                       6
<PAGE>


               SECURED DIGITAL APPLICATIONS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                                     <C>            <C>
                                                                                               Nine Months Ended
                                                                                        September 30,    September 30,
                                                                                             2007            2006
                                                                                         ------------   ---------------


CASH FLOWS FROM OPERATING ACTIVITIES
     Change in operating assets and liabilities of continuing operations                $       9,632  $       (208,902)
     Change in operating assets and liabilities of discontinued operations                       (687)         (371,247)
                                                                                         ------------   ---------------
         Net cash provided by (used in) operating activities                                    8,945          (580,149)
                                                                                         ------------   ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from disposal of equipment of discontinued operations                                --                --
     Proceeds from disposal of equipment                                                           --           631,828
     Purchase of equipment                                                                     (6,543)          (37,008)
     Purchase of equipment of discontinued operations                                              --            (1,010)
                                                                                         ------------   ---------------
         Net cash provided by (used in) investing activities                                   (6,543)          593,810
                                                                                         ------------   ---------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issuance of common stock                                                        --            80,000
     Net proceeds from advances from affiliated company                                       103,590            49,934
     Net proceeds from (repayment of) advances from a director                                 67,053           (12,213)
     Payments of obligations under capital leases                                                  --           (11,431)
     Financing activities of discontinued operations                                               --           (60,929)
                                                                                         ------------   ---------------
           Net cash provided by financing activities                                          170,643            45,361
                                                                                         ------------   ---------------

FOREIGN CURRENCY TRANSLATION ADJUSTMENT
- continuing activities                                                                      (127,603)         (181,224)
- discontinued activities                                                                       1,162           124,118
                                                                                         ------------   ---------------
Net increase in cash                                                                           46,604             1,916
Cash, beginning of period                                                                       7,644            32,983
                                                                                         ------------   ---------------
Cash, end of period                                                                     $      54,248  $         34,899
                                                                                         ============   ===============

Supplemental disclosure of cash flow information:

Cash paid for interest
- continuing operations                                                                 $          --  $          1,912
- discontinued operations                                                                          --            69,313
                                                                                         ============   ===============
                                                                                                   --            71,225
                                                                                         ============   ===============

Cash paid for income taxes
- continuing operations                                                                 $          --  $            135
- discontinued operations                                                                          --            57,236
                                                                                         ============   ===============
                                                                                                   --            57,371
                                                                                         ============   ===============

</TABLE>
           See accompanying notes to consolidated financial statements

                                       7
<PAGE>

                       SECURED DIGITAL APPLICATIONS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2007
                                   (UNAUDITED)

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 nine months ended
September 30, 2007, are not necessarily indicative of the results that may be
expected for the year ending December 31, 2007. These unaudited consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and footnotes thereto included in the Company's Form 10-KSB
for the year ended December 31, 2006, as filed with the Securities and Exchange
Commission.

2. SIGNIFICANT ACCOUNTING POLICIES

REVENUE RECOGNITION

Revenue represents the net invoiced value of:

o    goods sold;
o    fees earned from the  production  of  multimedia  programs and Intranet and
     management and consulting services; and
o    fees earned from provision of information technology related services.

The Company recognizes revenue from the sales of goods in the period when
significant risks and rewards of ownership have transferred to its customers.
The Company recognizes revenue from the services provided in the period in which
the services are performed and when there is no significant uncertainty
regarding the consideration to be received and the associated costs to be
incurred.

ACCOUNTS RECEIVABLE AND CREDIT POLICIES

The Company grants credit, generally without collateral, to its customers. The
Company continuously monitors collections and payments from its customers and
maintains an allowance for estimated uncollectible accounts based upon
historical experience and specific customer collection issues that have been
identified.

INVENTORIES

Inventories, which were comprised of peripherals for surveillance and wireless
communication, information technology hardware, software and accessories, were
stated at the lower of cost or net realizable value. Cost is determined on a
first-in, first-out basis. The value of the inventories was written down to $0
in 2006 as it was deemed to be unsaleable.

GOODWILL

Goodwill, arising from the purchase of a Malaysian subsidiary, represents the
purchase price paid and liabilities assumed in excess of the estimated fair
value of tangible assets acquired.


INCOME TAXES

Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the recorded book basis and tax basis
of assets and liabilities for financial and income tax reporting. The deferred
tax assets and liabilities represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settled. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset future federal income taxes.

For the three and nine months ended September 30, 2007, provision for income
taxes amounted to $179,938 and $396,835, respectively, and provision for tax
credits amounted to $111,735 and $26,813 for the three and nine months ended
September 30, 2006, respectively. The provisions are net of the benefit of any
available net operating losses, for income tax payable on the Company's
operations in Malaysia.

                                       8
<PAGE>

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

COMPREHENSIVE INCOME

The Company has adopted Statement of Financial Accounting Standards (SFAS) 130,
"Reporting Comprehensive Income", which establishes requirements for disclosure
of comprehensive income including certain items previously not included in the
statements of operations, including minimum pension liability adjustments and
foreign currency translation adjustments, among others. The Company's only
components of comprehensive income are foreign currency translation adjustments.

The functional currency of the Company's subsidiaries is the Malaysian Ringgit
("RM"). The financial statements of these subsidiaries are translated into
United States dollars ("USD") using period-end rate of exchange for assets and
liabilities, and the average rate of exchange for the period for revenues,
costs, and expenses. Translation gains and losses are treated as a component of
shareholders' equity. The reporting currency used in the financial statements is
USD unless otherwise stated.

TREASURY STOCK

The Company records treasury stock purchases at cost. The Company reissues stock
from the treasury on a first-in, first-out basis.

NET INCOME PER COMMON SHARE

Basic net income per share is calculated by dividing net income applicable to
common shareholders by the weighted average number of common shares outstanding
for the three and nine months ended September 30, 2007 and 2006. Diluted income
per share is computed using the weighted average number of shares determined for
the basic computations plus the number of shares of common stock that would be
issued assuming all contingently issuable shares having a dilutive effect on
earnings per share were outstanding for the period. The calculation of basic and
diluted income per share is as follows (in thousands, except per-share amounts):
<TABLE>
<CAPTION>
<S>                                          <C>                 <C>                 <C>            <C>
                                                       Three Months Ended                     Nine Months Ended
                                                September 30,       September 30,    September 30,     September 30,
                                                     2007                2006             2007              2006
                                              ------------------  ------------------ --------------  -------------------
Net income                                   $               399 $               532 $        1,059 $                509
                                              ==================  ================== ==============  ===================

Weighted average shares outstanding - basic              133,817             137,745        131,304              134,349
                                              ==================  ================== ==============  ===================

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

*   Less than $.01 per share
**  Net income per common share for discontinued operations is less than $.01
    per share and not presented separately.
</TABLE>
<TABLE>
<CAPTION>
<S>                                                      <C>                 <C>            <C>                  <C>
                                                       Three Months Ended                     Nine Months Ended
                                                September 30,       September 30,    September 30,     September 30,
                                                     2007                2006             2007              2006
                                              ------------------  ------------------ --------------  -------------------
Weighted average shares outstanding -
basic                                                    133,817             137,745        131,304              134,349
Common stock issuable to                                   1,252                 381          4,637                2,095
consultant
Convertible preferred stock                               20,000                  --         20,000                   --
Dilutive stock options and warrants                        1,555                  --            770                   --
                                              ------------------  ------------------ --------------  -------------------
Weighted average shares outstanding -
diluted                                                  156,624             138,126        156,711              136,444
                                              ==================  ================== ==============  ===================
Net income per share - diluted **             $                *  $                * $            *  $                 *
                                              ==================  ================== ==============  ===================
</TABLE>

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

For the three and nine months ended September 30, 2007 and 2006, 1,080,000
options 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 three and nine months ended September 30, 2006, 4,600,000 warrants were
excluded in the calculation of earnings per share as their issuance prices were
in excess of the average market price for the period.

                                       9
<PAGE>

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

STOCK-BASED COMPENSATION

The Company adopted SFAS No. 123R, "Share-Based Payments", effective from
January 1, 2006, utilizing the "modified prospective" method as described in the
standard. Under the "modified prospective" method, compensation cost is
recognized for all share-based payments granted after the effective date and for
all unvested awards granted prior to the effective date. The Company recognized
$2,200 and $7,560, and $3,640 and $12,227 in total stock-based compensation
expense during the three and nine months ended September 30, 2007 and 2006,
respectively. Total unvested stock-based compensation expense was $7,585 at
September 30, 2007 and had a total weighted average remaining term of 1.92
years.

The Company did not issue any options to employees and officers during the nine
months ended September 30, 2007.

Stock options and warrants granted to non-employees are recorded at their fair
value, as determined in accordance with SFAS 123 "Accounting for Stock Based
Compensation" and Emerging Issues Task Force Consensus No. 96-18, and recognized
over the related service period.


ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the balance sheet and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48), an
interpretation of FASB Statement No. 109, "Accounting for Income Taxes", which
clarifies the accounting for uncertainty in income taxes. FIN 48 prescribes a
recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a
tax return. The Interpretation requires that the Company recognize in the
financial statements, the impact of a tax position, if that position is more
likely than not of being sustained on audit, based on the technical merits of
the position. FIN 48 also provides guidance on de-recognition of a previously
recognized tax position, classification, interest and penalties, accounting in
interim periods and disclosures. The provisions of FIN 48 are effective
beginning January 1, 2007 with the cumulative effect of the change in accounting
principle recorded as an adjustment to the opening balance of retained earnings.
FIN 48 did not have an effect on the financial position or results of operations
of the Company.


In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements". This
Statement defines fair value, establishes a framework for measuring fair value
in generally accepted accounting principles and expands disclosure about fair
value measurement. SFAS No. 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007. The implementation of this
guidance is not expected to have any impact on the Company's consolidated
financial statements.

In September 2006, the SEC issued Staff Accounting Bulletin ("SAB") No. 108,
"Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements" (SAB 108), to provide
guidance on the consideration of the effects of prior year misstatements in
quantifying current year misstatements for the purpose of a materiality
assessment. Under SAB 108, companies should evaluate a misstatement based on its
impact on the current year income statement, as well as the cumulative effect of
correcting such misstatements that existed in prior years existing in the
current year's ending balance sheet. SAB 108 will become effective for the
Company in its fiscal year ending December 31, 2007. The Company does not
expect this pronouncement to have a material effect on the financial position or
results of operations of the Company.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities." SFAS No. 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 option 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 another measurement
attributes. SFAS No. 159 is effective as of the beginning of the first fiscal
year that begins after November 15, 2007. The Company is currently analyzing the
potential impact of adoption of SFAS No. 159 to its consolidated financial
statements.

                                       10
<PAGE>

3. DISCONTINUED OPERATIONS

During the third quarter of 2006, the Company reorganized the Company's
operating subsidiaries. Under the reorganization plan, substantially all of the
assets and liabilities of our principal operating subsidiary, Secured Digital
Applications (M) Sdn Bhd ("SDAM"), were transferred to a newly created
subsidiary, DigitalApps Sdn Bhd ("DASB"). DASB thus became our principal
operating subsidiary with substantially the same assets and liabilities as the
former SDAM.

Through reorganization, the Company disposed of a number of operating
subsidiaries. The assets and liabilities of Gallant Service Centre Sdn Bhd
("GSC"), through which the Company owned a majority interest in the Gallant
group of companies, and Armor Multi Systems Sdn Bhd ("AMS") and Armor Multi
Services Sdn Bhd ("AMSSB"), were sold to a third party on September 18, 2006.

On September 18, 2006, the Company sold all the shares of SDAM which included
its subsidiary companies, AMS, AMSSB, a 60% owned subsidiary of AMS, GSC and
other Gallant subsidiaries, to a third party and recognized a gain on disposal
of $46,472. The receivable from the sale is due in one year or less from the
date of sale unless extended by the parties and the receivable bears no
interest. At September 30, 2007 and December 31, 2006, the Company was owed $0
and $46,472, respectively, and such amounts are included in trade and other
accounts receivable.

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 SDAM and its subsidiaries and 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."

The results of discontinued operations for the three and nine months ended
September 30, 2007 and 2006 are as follows:
<TABLE>
<CAPTION>
<S>                                              <C>               <C>                <C>              <C>



                                                         Three Months Ended                   Nine Months Ended
                                                  September 30,     September 30,     September 30,     September 30,
                                                       2007              2006              2007              2006
                                                 ----------------  ----------------- ----------------- ----------------
Revenue                                          $             --  $         (58,777) $             -- $      2,244,801
Cost of revenues                                               --            156,628                --        1,515,493
                                                 ----------------  ----------------- ----------------- ----------------
Gross profit                                                   --           (215,405)               --          729,308
Operating expenses                                             --            (65,991)          (17,250)        (458,658)
                                                 ----------------  ----------------- ----------------- ----------------
Income (loss) from operations                                  --           (281,396)          (17,250)         270,650
Other income                                                   --             27,581                --           51,385
                                                 ----------------  ----------------- ----------------- ----------------
Income (loss) before tax                                       --           (253,815)          (17,250)         322,035
Income tax                                                     --             (1,396)               --         (218,777)
                                                 ----------------  ----------------- ----------------- ----------------
Income (loss) before minority interest                         --           (255,211)          (17,250)         103,258
Minority interest                                              --              2,591                --           44,900
                                                 ----------------  ----------------- ----------------- ----------------
Income (loss) from discontinued operations       $             --  $        (252,620) $        (17,250) $       148,158
                                                 ================  ================= ================  ================

</TABLE>

                                       11
<PAGE>

4. RELATED PARTY ACTIVITY

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, $90,000, $30,000
and $90,000 for the respective three and nine months ended September 30, 2007
and 2006. LSH also billed DASB and SDAM $6,911, $20,719, $6,519 and $19,501 for
the respective three and nine months ended September 30, 2007 and 2006, for
administrative and clerical charges. LSH also made short term advances to the
Company from time to time for working capital purposes. As of September 30, 2007
and December 31, 2006, the amount due to LSH was $121,901 and $17,927,
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".

SYNERVEST SDN BHD ("SSB")

A director of one of the Company's Malaysian subsidiaries is a director of SSB
and holds a 60% equity interest in SSB. At December 31, 2006, long-term
receivables, related parties, consisted of $108,247 due from SSB. This amount
primarily arose in the year ended December 31, 1998 when the Company sold to SSB
assets used in the operations of a subsidiary. These assets, comprised of analog
video hardware and peripherals and a patent for image display, were sold to SSB
for a total sum of $1,661,175. 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 as payments are
received. During the year ended December 31, 2002, payments received by the
Company exceeded all remaining costs. The Company received $28,798, $84,547,
$22,002 and $66,356 of the outstanding receivable during the three and nine
months ended September 30, 2007 and 2006, respectively, resulting in a
realization of gain on sale of assets, related party for those periods. The
deferred gain included in the balance sheet has been reduced accordingly. As of
September 30, 2007 and December 31, 2006, accounts receivable from the related
entity totaled $25,954 and $108,247, respectively, and is recorded in the
financial statements as "Long-term receivables, related party".

MY ARCHITECT ("MYA")

A director of one of the Company's Malaysian subsidiaries is a principal partner
of MYA. During the three and nine months ended September 30, 2007 and 2006, the
Company received fees of $739,314, $1,599,424, $268,497 and $427,794,
respectively, from consulting contracts that it entered into with MYA. The terms
of repayment for the amount due from MYA are similar to terms accorded to the
Company's other existing customers. At September 30, 2007 and December 31, 2006,
there was no balance owed by MYA.

CHIEF EXECUTIVE OFFICER

As of September 30, 2007 and December 31, 2006, the Company owed the Chief
Executive Officer of the Company $77,924 and $10,578, respectively, for
short-term cash advances made to the Company for working capital purposes from
time to time. 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".

DIRECTORS OF MALAYSIAN SUBSIDIARY

On September 18, 2006, one of the Company's Malaysian subsidiaries acquired
1,150,000 shares of another Malaysian subsidiary from such subsidiary's
directors, Mustaffar Yacob and Wan Abdul Razak, for a total consideration of
RM567,500 (approx. $154,000). The balance was due in one year or less from the
date of purchase unless extended by the parties and such debt bears no interest.
At September 30, 2007 and December 31, 2006, the Company owes the directors
RM354,500 ($104,060 at September 30, 2007 and $100,396 at December 31, 2006) and
is recorded in the financial statements as "Amount due to directors of
subsidiary".

The amounts owed to Mustaffar Yacob and the estate of Wan Abdul Razak have yet
to be fully settled as at September 30, 2007. Wan Abdul Razak died intestate and
the Company is waiting for instructions from his estate. Mr. Mustaffar agreed to
extend the payment term by another six months.


5. PREFERRED STOCK

On October 23, 2006, the Company executed a share exchange agreement with LSH
whereby LSH exchanged 20,000,000 shares of the Company's common stock held by
LSH in exchange for 100,000 shares of the Company's newly created Series B
Voting Convertible Preferred Stock (the "Voting Preferred"), which is
convertible into shares of common stock at a fixed ratio of 200 shares of common
stock for 1 share of Voting Preferred stock. The 20,000,000 shares are available
for re-issuance at a future date. The Voting Preferred stock is entitled to
receive dividends in preference to any dividend on the common stock, as, when
and upon such terms as may be declared by the Company.

                                       12
<PAGE>

6. COMMON STOCK

The Company signed a compensation agreement with a consultant on April 15, 2006
under which the Company issued an aggregate of 1,000,000 shares of its common
stock to the consultant for services rendered for the twelve-month period ended
April 15, 2007. The Company issued 250,000 shares of common stock on each of the
following dates: October 16, 2006, November 22, 2006, January 15, 2007 and April
20, 2007.

On November 28, 2006, the Company issued 1,500,000 shares of common stock and on
April 20, 2007, the Company reissued from its treasury stock 500,000 shares of
common stock to a consultant pursuant to a compensation agreement dated November
1, 2006, under which the Company agreed to issue an aggregate of 2,000,000
shares of its common stock for services rendered for the six-month period ended
April 30, 2007.

On December 5, 2006 and February 9, 2007, the Company reissued from its treasury
stock 200,000 and 100,000 shares of common stock to a consultant pursuant to a
compensation agreement dated December 4, 2006, under which the Company agreed to
issue an aggregate of 600,000 shares of its common stock to the consultant as
payment for services rendered to the Company for the six-month period ended June
4, 2007. This agreement was terminated on March 31, 2007 and no further amounts
are due to the consultant.

On February 6, 2007, the Company reissued from its treasury stock 425,423 shares
of common stock to a consultant as payment for services rendered to the Company
for total consideration of $26,376 based on the market value of $0.062 per share
on the date of issuance.

The Company signed a compensation agreement with a consultant on May 1, 2007
under which the Company agreed to issue an aggregate of 400,000 shares of its
common stock to the consultant for services to be rendered for the twelve-month
period ending April 30, 2008. The Company shall issue to the consultant 100,000
shares of common stock quarterly in advance commencing May 1, 2007. On each of
June 13, 2007 and October 22, 2007, the Company reissued from its treasury stock
100,000 shares of common stock, respectively.

On October 21, 2006, the Company approved an award of incentive compensation to
the Chief Executive Officer and Chairman, Patrick Lim, of 500,000 shares of
common stock per year if the Company in that year achieves a compounded growth
in revenue in the Company's consolidated financial statements, as reported in
the Company's annual report to the Securities and Exchange Commission, of at
least 15% over the prior year. In 2006, the Company achieved the growth rate and
accrued compensation expense of $33,000 for the year ended December 31, 2006. On
May 31, 2007, the Company issued 500,000 shares of common stock.

The Company signed a compensation agreement with a consultant on June 1, 2007
under which the Company agreed to issue an aggregate of 2,000,000 shares of its
common stock to the consultant for services to be rendered for the six-month
period ending December 1, 2007. On each of June 1, 2007 and September 4, 2007,
the Company reissued from its treasury stock 1,000,000 shares of common stock.

The Company signed a compensation agreement with a consultant on June 11, 2007
under which the Company agreed to issue an aggregate of 2,000,000 shares of its
common stock to the consultant for services to be rendered for the six-month
period ending December 10, 2007. On each of June 13, 2007 and September 11,
2007, the Company reissued from its treasury stock 1,000,000 shares of common
stock.

In July 2007, the Company entered into two separate agreements with an investor
in private placements to sell 540,000 and 460,000 shares of its common stock at
$.065 and $.07 per share, respectively, for total consideration of $67,300. The
closing dates for the private placements were August 10, 2007 and August 30,
2007, respectively.

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 October 17, 2007, the Company reissued from its
treasury stock 250,000 shares of common stock.

                                       13
<PAGE>

7. STOCK OPTIONS

On April 5, 2007, the Company signed an agreement with a consultant under which
the Company granted stock options for an aggregate of 2,000,000 shares of its
common stock to the consultant as a performance incentive for services to be
rendered for a two year period ending April 4, 2009. The options are exercisable
on a quarterly basis over the two year term of the contract in the following
manner:
<TABLE>
<CAPTION>
<S>      <C>      <C>                      <C>                <C>                <C>                <C>

   Trading Period                  Market capitalization                                      Exercise Price
                                       ($in millions)    Vesting Date        No. of options    Per Share ($/sh)
   April 5 - July 4, 2007                  13.53         July 5, 2007            250,000            0.10
   July 5 - October 4, 2007                20.29         October 5, 2007         250,000           0.125
   October 5 - January 4, 2008             30.44         January 5, 2008         250,000            0.15
   January 5 - April 4, 2008               45.63         April 5, 2008           250,000           0.175
   April 5 - July 4, 2008                  57.04         July 5, 2008            250,000            0.20
   July 5 - October 4, 2008                71.30         October 5, 2008         250,000           0.225
   October 5 - January 4, 2009             89.12         January 5, 2009         250,000            0.25
   January 5 - April 4, 2009               111.40        April 5, 2009           250,000            0.30
</TABLE>

The stock options may only be exercisable subject to the consultant meeting the
following conditions:
(1)  progressively increasing SDA's market capitalization between April 5, 2007
     and April 4, 2008 by at least 50% over the previous trading period;
(2)  progressively increasing SDA's market capitalization between April 5, 2008
     and April 4, 2009 by at least 25% over the previous trading period. This
     increase shall be maintained for at least five consecutive trading days
     during the trading period; and
(3)  SDA's average daily trading volume exceeding 500,000 shares during each
     trading period.

The Company recognized $324 and $648 in total compensation expense during the
three and nine months ended September 30, 2007. The options have a total
weighted average remaining term of 1.50 years.

On October 5, 2007, the Company and the consultant executed a stock option
agreement to purchase 250,000 shares of the Company's common stock at $.10 per
share pursuant to the agreement described above. The Company agreed to extend
the initial trading period from April 5 - July 4, 2007 to April 5 - October 4,
2007. The Company achieved a minimum market capitalization of $13.53 million for
at least five consecutive trading days during said trading period. The
expiration date of the stock option is five years from the date of grant. All or
any part of the option shares with respect to which the right to purchase has
vested may be purchased, subject to the provisions of the option agreement, at
the time of such vesting or at any time or from time to time during the balance
of the term of the option.


8.  WARRANTS

On October 21, 2006, the Company approved the issuance to the Chief Executive
Officer of warrants to purchase 6,300,000 shares of the Company's common stock
at 110% of the market price at the close of business on October 23, 2006, such
warrants to be issued in three equal annual installments and which may be
exercised on or before October 21, 2011. Black-Scholes valuations were performed
on the warrants. The initial value of the warrants was $257,518. These costs are
being amortized over three years based on the estimate of the expected term. The
Company recognized compensation expense of $42,192 and $126,576 for the three
and nine months ended September 30, 2007, respectively.


9. SIGNIFICANT CONCENTRATIONS OF CREDIT RISK

The Company grants credit, generally without collateral, to its customers. Two
customers accounted for the following revenue:
<TABLE>
<CAPTION>
<S>      <C>                        <C>               <C>                       <C>               <C>

                                      Three Months Ended                          Nine Months Ended
                               September 30,     September 30,             September 30,     September 30,
                                    2007              2006                      2007              2006
                              ----------------- -----------------         ----------------- -----------------
Customer 1                          48%               49%                       48%               49%
Customer 2                          45%               48%                       47%               49%
                              ----------------- -----------------         ----------------- -----------------
Total                               93%               97%                       95%               98%
                              ================  ================          ================  =================
</TABLE>

                                       14
<PAGE>

9. SIGNIFICANT CONCENTRATIONS OF CREDIT RISK (CONTINUED)

At September 30, 2007, the two customers accounted for substantially all of the
Company's trade accounts receivable. The large concentration of revenues with
the two customers is a result of the Company's strategy of using the two
customers as contractors to service certain accounts with certain long-standing
accounts established by the Company, reducing credit risk and carrying costs.
Allowance for doubtful accounts receivable was $26,955 at September 30, 2007 and
$26,006 at December 31, 2006. The Company will continue to pursue vigorously the
collection of all its outstanding accounts receivable.

Three suppliers accounted for substantially all cost of revenues during the nine
months ended September 30, 2007 and 2006. 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 will be able to utilize
alternative suppliers for the services that it requires.


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This Quarterly Report on Form 10-Q and the documents we incorporate by reference
herein include forward-looking statements. All statements other than statements
of historical facts contained in this Form 10-Q and the documents we incorporate
by reference, including statements regarding our future financial position,
business strategy and plans and objectives of management for future operations,
are forward-looking statements. The words "believe," "may," "estimate,"
"continue," "anticipate," "intend," "should," "plan," "could," "target,"
"potential," "is likely," "will," "expect" and similar expressions, as they
relate to us, are intended to identify forward-looking statements within the
meaning of the "safe harbor" provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. We have based these forward-looking statements largely on our current
expectations and projections about future events and financial trends that we
believe may affect our financial condition, results of operations, business
strategy and financial needs.

These forward-looking statements are subject to a number of risks, uncertainties
and assumptions described in "Risk Factors" in our Annual Report on Form 10-KSB
for the fiscal year ended December 31, 2006, and any changes thereto in Part II,
Item 1A "Risk Factors" of this Form 10-Q. In addition, our past results of
operations do not necessarily indicate our future results. Moreover, the
construction services and construction materials segments of our business are
very competitive and rapidly changing. New risk factors emerge from time to time
and it is not possible for us to predict all such risk factors, nor can we
assess the impact of all such risk factors on our business or the extent to
which any risk factor, or combination of risk factors, may cause actual results
to differ materially from those contained in any forward-looking statements.

Except as otherwise required by applicable laws, we undertake no obligation to
publicly update or revise any forward-looking statements or the risk factors
described in this Quarterly Report on Form 10-Q or in the documents we
incorporate by reference, whether as a result of new information, future events,
changed circumstances or any other reason after the date of this Quarterly
Report on Form 10-Q. You should not rely upon forward-looking statements as
predictions of future events or performance. We cannot assure you that the
events and circumstances reflected in the forward-looking statements will be
achieved or occur. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements.

                                       15
<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
subcontracted business services. These include media production, which develops
content for various technologies, including television, the Internet and
free-standing displays. We also provide information technology services in such
areas as biometric technology and security systems. We are in the process of
developing a broad platform of outsourced core business services that will be
offered to companies in the United States, Asia and Australia including digital
document management, accounts receivable and payables management, bookkeeping,
purchasing services and also Radio Frequency Identification (RFID) applications
including inventory, asset and personnel tracking. We anticipate that we will
begin offering those services in late 2007 or early 2008. We generate revenue
through our majority- and wholly-owned subsidiary companies located in the
United States and Malaysia.

Since SDA became a publicly held company through a reverse acquisition in 1999,
the Company has evolved in its operations. We expanded our initial lines of
business as a broadband communications operator and Internet content provider by
acquiring majority interests in regional companies that are believed to have
superior potential for growth and profitability as a member of the SDA group of
companies. Acquisitions have been made based on management's criteria including
acquisition costs, growth potential and compatibility with SDA's existing
subsidiaries. During this acquisition process, we developed a centralized
management and support structure provided by our home office in Petaling Jaya,
Malaysia to support our operating subsidiaries and the ability of potential
acquisitions to benefit from our management structure became a significant
consideration in making acquisitions.


Reorganization of Operating Subsidiaries
----------------------------------------

During the third quarter of 2006, the Company determined that it was in the best
interests of the business and our shareholders to restructure our operating
subsidiaries. The intent of the reorganization was to improve administrative
efficiency and profit margins as well as to dispose of certain assets or
subsidiaries that did not meet management's criteria for continued inclusion in
the SDA group of companies. In particular, we determined that our subsidiaries
involved in the developing business of secured shipping and in the established
business of operating retail computer outlets did not meet the Company's
criteria for profitability and/or fit within the Company's organization. Under
the reorganization plan, substantially all of the assets and liabilities of our
principal operating subsidiary, Secured Digital Applications (M) Sdn Bhd
("SDAM"), were transferred to a newly created subsidiary, DigitalApps Sdn Bhd
("DASB"). DASB thus became our principal operating subsidiary with substantially
the same assets and liabilities as the former SDAM.

Through reorganization, we reduced the number of operating subsidiaries and
disposed of the companies associated with our Gallant IT operations, which
operated retail computer stores in metropolitan Kuala Lumpur. We also disposed
of the companies through which we had been seeking to develop a secured shipping
business.

In connection with the reorganization, we incorporated a new subsidiary, DASB,
which will act as the principal holding company for the Company's four operating
subsidiaries: Perwimas Telecommunications Sdn Bhd ("PTSB"); DigitalApps
Technologies Sdn Bhd ("DAT") (formerly Secured Shipping Sdn Bhd ("SSSB"));
Digital Image ID Sdn Bhd ("DID"); and DigitalsApps Media Sdn Bhd ("DAM"). DAT
owns 55% of Ispec Sdn Bhd ("ISS") (formerly Innospective Sdn Bhd). DID owns 100%
of Digital Kiosk Technologies Sdn Bhd ("DKT") (formerly Century Jubilee Sdn Bhd
("CJSB")), a newly incorporated subsidiary. The assets and liabilities of
Gallant Service Centre Sdn Bhd ("GSC"), through which we owned a majority
interest in the Gallant group of companies, and Armor Multi Systems Sdn Bhd
("AMS") and Armor Multi Services Sdn Bhd ("AMSSB"), were sold to a third party.

On June 27, 2007, the Company sold its wholly-owned subsidiary, DAT, which
included its 55%-owned subsidiary, 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 Company determined
that it was in its best interest to dispose of DAT and ISS to allow its
available resources and infrastructure to be better utilized in the Company's
core businesses that include BPO (as defined below) services and systems
integration of RFID enabled tracking applications.

                                       16
<PAGE>

SDA's present core line of business is outsourced 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. Our subsidiaries as
of September 30, 2007 are the following companies:

-        DASB is a wholly-owned Malaysian subsidiary that designs, develops and
         produces multimedia content and provides consulting services for
         website development, network engineering and project management in IT
         related projects. In addition to its activities as a multimedia
         developer and IT consultant, DASB provides centralized management and
         back-office support to SDA's other subsidiaries from its office in
         Petaling Jaya, Malaysia.

-        Perwimas Telecommunications Sdn Bhd ("PTSB"), a 95%-owned Malaysian
         subsidiary of DASB, provides broadband and application services under
         licenses granted by the government of Malaysia.

-        Digital Image ID Sdn Bhd ("DID") (f/k/a Vista Positive Sdn Bhd), DASB's
         wholly-owned subsidiary, from the date of acquisition on July 5, 2006.

-        Digital Kiosk Technologies Sdn Bhd ("DKT") (f/k/a Century Jubilee Sdn
         Bhd), DID's wholly-owned subsidiary, from the date of acquisition on
         September 4, 2006.

-        DigitalApps Media Sdn Bhd ("DAM"), DASB's wholly-owed subsidiary, from
         the date of incorporation on July 7, 2006.

-        China Sea Trade Company, Inc.  ("CST") (f/k/a Eystar Media, Inc.), is a
         wholly-owned subsidiary of SDA Worldwide,  Inc.,  organized under
         Delaware law. CST offers consulting and management services to regional
         firms in Asia  seeking  to  develop  markets in the United States.  CST
         began  operations  in early 2006 and has not generated any revenue to
         date.

-        SDA Worldwide, Inc. ("SDAW") (f/k/a SDA America, Inc.), a wholly-owned
         subsidiary, organized under Delaware law. The company was originally
         formed as a wholly-owned corporation used as a special vehicle to
         secure a $6.5 million funding from Laurus Master Fund Ltd. through a
         private placement of securities consisting of convertible preferred
         stock of SDAW. As a result of the early retirement of the Laurus
         investment, management determined to use the corporation as the vehicle
         to develop the company's international trade consulting business in the
         United States. SDAW operated as a joint venture between September 5,
         2005, and October 3, 2007 when the Company re-purchased the 20% of SDAW
         that it did not own from its joint venture partner. SDAW began
         operations in 2005 and has not generated any revenue to date.


In addition, as part of the reorganization, we increased our equity interest in
PTSB from 86% to 95% by purchasing minority interests held by two of our
directors, Wan Abdul Razak and Mustaffar Yacob, for aggregate consideration of
approximately $154,000.

The accompanying consolidated financial statements include the accounts of
Secured Digital Applications, Inc. and its subsidiaries.

For the three months and nine months ended September 30, 2007 and 2006, the
Company's revenue was generated primarily from the following activities:

1.   Designing, producing, hosting and distributing interactive multimedia
     content, websites, programs and applications.

2.   Developing and producing e-commerce programs and Internet-based security
     applications and solutions.

3.   Providing project consulting services on broadband communications and
     networking systems for property development projects.

                                       17
<PAGE>

Significant Business Developments and Plan of Operation

We are in the process of introducing a business process outsourcing (BPO)
service to companies in the United States, Asia and Australia. Significant
effort has been devoted to the technical development of our outsourced business
process services, primarily in the integration of software and information
systems that we obtain through licenses with third parties. We licensed or
acquired technologies from various sources and utilized the technologies to
develop our integrated online financial accounting and Radio Frequency
Identification (RFID) tracking BPO service. Our integrated BPO service is
marketed as EyStar Station.

Eystar Station provides a single point of entry, through a graphical user
interface available on the Internet, into a customer's most significant business
operations, including custom tailored financial reports, work in progress,
inventory, accounts payable and receivable, expenses, and source documents.
Eystar Station consists of a web-based financial accounting BPO suite integrated
with RFID enabled tracking applications that include inventory, document and
people tracking.

RFID is a proven technology that uses radio waves to identify individual items
at specific locations. Many enterprises are presently seeking ways to mobilize
and automate their field force operations with RFID, in areas such as asset
management, maintenance, repair, manufacturing, item tracking, delivery
scheduling, customer billing data collection, and work order management.

The purpose of an RFID system is to enable data to be transmitted by a mobile
device, called a tag, which is read by an RFID reader and processed according to
the needs of a particular application. The data transmitted by the tag may
provide identification or location information, or specifics about the product
tagged, such as price, color, date of purchase, etc.

The Company has developed a number of integrated financial accounting and RFID
tracking applications that include:

        o        Financial accounting + inventory tracking
        o        Financial accounting + document tracking
        o        Financial accounting + people tracking
        o        Financial accounting + inventory + document + people tracking

The Company intends to launch its nano chip RFID embedded paper during the
fourth quarter of 2007. This versatile security identification paper can be
tracked through the Internet.

Our BPO service will combine the technology available through the Eystar Station
with labor performed at competitive rates at our work center in Petaling Jaya,
Malaysia.

We plan to continue to devote the bulk of our resources to core operations in
Asia, particularly Malaysia, as management believes that the growth of Asian
economies has been favorable and is likely to continue. The Company continues to
review potential acquisitions in Asia, primarily of regional companies in
Malaysia, Thailand, and the People's Republic of China, in an effort to add
operations that will meet management's standards and provide superior
opportunities for growth after acquisition.

The Company anticipates that it will continue to seek the rights to new products
and services through contractual arrangements or through the acquisition of
other business entities that provide compatible products or services. The
Company expects to continue to market its products and services through a sales
force and through its Internet websites located at www.digitalapps.net and
www.eystar.com.



Strategic Contractual Relationships

The Company seeks to enter strategic agreements, both formal and informal, with
other providers of goods or services that are compatible with the Company's
existing businesses. Such arrangements include license agreements, requirements
contracts and service agreements. The Company may also seek to acquire business
enterprises that offer goods and services that are of benefit to the Company and
its shareholders. We cannot forecast whether these strategic relationships will
generate any revenue in 2007.


                                       18
<PAGE>

On October 27, 2007, the Company entered into a Supply Agreement (the "Supply
Agreement") with Collier Consulting Inc. of Memphis, Tennessee, USA ("Collier")
pursuant to which the Company agreed to sell to Collier and Collier agreed to
purchase from the Company units of the Company's EyStar GPS Personal and Vehicle
Tracker (the "Product") for a total purchase price of $16,000,000. The Supply
Agreement provides that Collier will satisfy its aggregate purchase obligation
in increments over a period of 10 months following the execution date of the
Supply Agreement upon a mutually agreeable time frame.


The pocket-size EyStar GPS operates under the worldwide GSM/GPRS network and
uses a high sensitivity GPS receiver for near-indoor tracking featuring
quad-bands (850/900/1800/1900 MHz). It can be used as an emergency cellular
phone with speed dialing for two-way voice communication, and to place a silent
call to an emergency number or police using a digital voice and text to report
location, date and time. Any navigation or Google Earth map can be used for the
tracking.


The EyStar GPS can operate in both SMS and GPRS modes. This gives EyStar GPS the
ability to transmit its position as a text message or it can be monitored in
real-time via the Internet. The EyStar GPS has a unique Geo-Fence feature that
can trigger an alert when the device enters or exits a pre-defined area. In
addition to using the EyStar GPS to track individual vehicles, other potential
uses include fleet management, and the tracking of school children or personal
assets. The EyStar GPS has a built-in capability where normal GPS is unable to
do so. It is well-suited for location-based service providers and system
integrators interested in providing affordable personal vehicle monitoring
services to a broad range of subscribers. It is compatible with all automobiles,
domestic and import, presently represented in the United States.




Results of Operations

The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the consolidated financial
statements and notes thereto.

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>

                                                           Nine Months Ended September 30,
                                                               2007               2006
                                                        -----------------   -----------------
Revenues                                                $      33,199,082     $    25,641,488

Gross profit                                                    2,625,958          1,500,345
Sales and marketing                                                29,255             15,242
General and administrative                                      1,416,039          1,487,896
Gain on disposal of assets-related parties                         84,547             66,356
Income from continuing operations                               1,053,014            204,161
Income from discontinued operations                                 5,749            304,807
Net income                                                      1,058,763            508,968
</TABLE>

                                       19
<PAGE>

COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2007 TO THE THREE MONTHS
ENDED SEPTEMBER 30, 2006


REVENUES

Revenues increased by $2,179,557, or 23%, to $11,818,070 for the three months
ended September 30, 2007 ("2007") as compared to $9,638,513 for the three months
ended September 30, 2006 ("2006").

The increase in total revenue in 2007 as compared to 2006 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 the result of sub-contract work from the Company's two major customers.
Revenue for project consulting services was generated from contracts that the
Company secured in 2001 through 2004. In 2007, two customers accounted for 48%
and 45% of total revenue, respectively. In 2006, the same two customers
accounted for 49% and 48% of total revenue, respectively.


GROSS PROFIT

Gross profit increased to $1,045,308 in 2007 compared to $876,705 in 2006.

The gross profit percentage was 8.8% in 2007 and 9.1% in 2006. The Company is
striving to improve its quality of services and efficiency with the objective to
increase its gross profit percentage. 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 $10,491 or 90%, to $22,131 in 2007
compared to $11,640 in 2006, primarily as a result of an increase in travel
expenses.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses relating to non-related parties increased to
$519,583 in 2007 compared to $381,154 in 2006. The increase was primarily
attributable to an increase in compensation expenses, investor relation
expenses, employee payroll and depreciation.

In 2007, general and administrative expenses consisted of the following: 14% was
for depreciation of tangible assets, 17% was for employee payroll, 8% was for
fees for professional and auditing services, 5% was for investor relation
expenses, 46% was for compensation expenses and 10% was for rent, utilities,
general office supplies, communications and corporate insurance expenses. For
2006, 5% was for depreciation of tangible assets, 12% was for employee payroll,
35% was for fees for professional and auditing services, 3% was for investor
relation expenses, 15% was for compensation expenses and 30% was for rent,
utilities, general office supplies, communications and corporate insurance
expenses.

General and administrative expenses - related parties in 2007 and 2006 were
$36,911 and $36,519, respectively. These expenses included management fees and
administrative expenses payable by the Company to a company in which Mr. Patrick
Lim, the Chairman and Chief Executive Officer of the Company, has a financial
interest. In 2007 and 2006, the related company, LSH Assets Holdings Sdn Bhd
("LSH"), billed the Company's Malaysian subsidiaries, DASB and SDAM,
administrative expenses of $6,911, 0, $6,519 and $0, respectively, for
administration and clerical fees incurred by LSH on behalf of DASB and SDAM. The
Company also incurred management fees of $30,000 each for 2007 and 2006. The
management fee was charged on the basis of time spent for the administration and
management services provided to the Company.


PREVIOUSLY DEFERRED GAIN ON SALE OF TECHNOLOGY - RELATED PARTY

In 2007 and 2006, the Company included recognition of a previously deferred gain
of $28,798 and $22,002, respectively, related to a similar amount the Company
received from its long-term receivable - related party. Each of the receivable
balance and total deferred gain was $108,247 as of December 31, 2006. 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 each reduced to $25,954, as of September 30, 2007.

                                       20
<PAGE>

WRITE-OFF OF OLD VENDOR PAYABLES

The Company wrote off vendor payables totaling $35,512 in 2007. The amounts owed
were at least three years old and management determined that such amounts were
no longer owed.

INCOME TAXES

Income taxes represent the provision for the Company's Malaysian operations and
are net of any available net operating losses. There was no provision for the
Company's United States operations as such entities sustained taxable losses.


COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2007 TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2006


REVENUES

Revenues increased by $7,557,594, or 29%, to $33,199,082 for the nine months
ended September 30, 2007 ("2007") as compared to $25,641,488 for the nine months
ended September 30, 2006 ("2006").

The increase in total revenue in 2007 as compared to 2006 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 the result of sub-contract work from the Company's two major customers.
Revenue for project consulting services was generated from contracts that the
Company secured in 2001 through 2004. In 2007, two customers accounted for 48%
and 47% of total revenue, respectively. In 2006, the same two customers each
accounted for 49% of total revenue.


GROSS PROFIT

Gross profit increased to $2,625,958 for the nine months ended September 30,
2007 compared to $1,500,345 during the comparable period in 2006. The gross
profit percentage increased to 7.9% in 2007 from 5.9% in 2006. The increase in
gross profit percentage in 2007 was due to higher revenue, particularly
consulting revenue, which has a higher margin than production work and incurring
reduced subcontractor costs. The Company is striving to improve its quality of
services and efficiency with the objective to increase its gross profit
percentage. 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 $14,013, or 92%, to $29,255 for the
nine months ended September 30, 2007 compared to $15,242 in the comparable
period of 2006, primarily as a result of an increase in travel expenses.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses relating to non-related parties decreased to
$1,305,320 in 2007 compared to $1,378,395 in 2006. The decrease was primarily
attributable to a decrease in legal and professional fees, utilities, general
office supplies and communications expenses. In 2007, general and administrative
expenses consisted of the following: 17% was for depreciation of tangible
assets, 6% was for consulting fees, 14% was for employee payroll, 11% was for
fees for professional and auditing services, 3% was for investor relation
expenses, 40% was for compensation expenses and 9% was for rent, utilities,
general office supplies, communications and corporate insurance expenses. For
2006, 11% was for depreciation of tangible assets, 9% was for employee payroll,
27% was for fees for professional and auditing services, 1% was for investor
relation expenses, 36% was for compensation expenses and 16% was for rent,
utilities, general office supplies, communications and corporate insurance
expenses.

General and administrative expenses - related parties for the nine months ended
September 30, 2007 and 2006 were $110,719 and $109,501, respectively. These
expenses included management fees and administrative expenses payable by the
Company to LSH. In 2007 and 2006, LSH billed the Company's Malaysian
subsidiaries, DASB and SDAM, administrative expenses of $20,719, 0, $19,501 and
$0 for administration and clerical fees incurred by LSH on behalf of DASB and
SDAM. The Company also incurred management fees of $90,000 each for 2007 and
2006. The management fee was charged on the basis of time spent for the
administration and management services provided to the Company.


                                       21
<PAGE>

PREVIOUSLY DEFERRED GAIN ON SALE OF TECHNOLOGY - RELATED PARTY

The gain represents the recognition of a previously deferred gain of $84,547 and
$66,356 for 2007 and 2006, respectively, related to a similar amount the Company
received from its long-term receivable - related party. Each of the receivable
balance and total deferred gain was $108,247, as of December 31, 2006. This
amount 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, the related gain on the
sale of the assets was deferred and is to be recognized only after all costs
have been recovered and as payments are received. During the year ended December
31, 2002, payments received by the Company exceeded all remaining costs. As a
result of cash payments received, the Company's long-term receivable - related
party and deferred gain balances were each reduced to $25,954, as of September
30, 2007.


WRITE-OFF OF OLD VENDOR PAYABLES

The Company wrote off vendor payables totaling $35,512 in 2007. The amounts owed
were at least three years old and management determined that such amounts were
no longer owed.

INCOME TAXES

Income taxes represent the provision for the Company's Malaysian operations and
are net of any available net operating losses. There was no provision for the
Company's United States operations as such entities sustained taxable losses.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2007, the Company had net cash of $54,248.

In 2007, operations were funded primarily from internally generated funds and
working capital advanced from time to time by the principal shareholder,
director and officer of the Company. These advances bear no interest and have no
fixed terms of repayment.

As of September 30, 2007, the Company owed Patrick Lim, the Company's principal
shareholder, Chief Executive Officer and Chairman, $77,924. Additionally, as of
September 30, 2007, the Company owed an affiliated company in which Mr. Lim has
a financial interest, $121,901 for management fees and short-term cash advances
made to a subsidiary of the Company for working capital purposes from time to
time. These amounts are unsecured, bear no interest and have no fixed terms of
repayment.

Net cash provided by operating activities was $8,945 in 2007 and was primarily
the result of income and non-cash expenses.

Net cash used in investing activities totaled $6,543 in 2007 and was for the
purchase of equipment.

Net cash provided by financing activities totaled $170,643 in 2007 and was due
to the advances from an affiliated company totaling $103,590 and advances from
the Company's principal shareholder of $67,053.

In July 2007, the Company entered into two separate agreements with an investor
in private placements to sell 540,000 and 460,000 shares of its common stock at
$.065 and $.07 per share for total consideration of $67,300. The closing dates
for the private placements were August 10, 2007 and August 30, 2007,
respectively.

For the fourth quarter of 2007, the Company will continue expanding into new
businesses that include provision of outsourced business services and RFID
enabled tracking solutions 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 $10
million to finance the set-up cost of its new businesses. The Company also
expects that it will require a further $5 million to finance the working capital
of its new businesses.

The Company  will  continuously  evaluate  its  financing  requirements  and may
consider seeking financing from third parties.

Off-Balance Sheet Arrangements

The Company does not have 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.

                                       22
<PAGE>

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Rates

The Company has inter-company debt denominated in US dollars, whereas the
functional currency of the Company's subsidiaries is the Malaysian Ringgit,
which results in the Company recording other income/loss associated with US
dollars as a function of relative changes in foreign exchange rates. The Company
is unable to predict whether it will experience future gains or future losses
from such exchange-related risks on the receivables and payables. The Company
does not have a program in place to manage the volatility relating to these
exposures.

Revenue

Substantially all of the Company's revenue is earned outside of the United
States.



ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we carried out an
evaluation, under the supervision and with the participation of our management,
including our Chief Executive Officer and our Chief Accounting Officer, of the
effectiveness of the design and operation of the Company's "disclosure controls
and procedures" (as defined in Rule 13a-15(e) under the Securities Exchange Act
of 1934, as amended). Based upon that evaluation, our Chief Executive Officer
and our Chief Accounting Officer concluded that our disclosure controls and
procedures are effective to ensure that information required to be disclosed by
us in reports that we file or submit under the Exchange Act are recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission (the "SEC") rules and forms, and include
controls and procedures designed to ensure that information required to be
disclosed by us in such reports is accumulated and communicated to our
management, including our Chief Executive Officer and our Chief Accounting
Officer, as appropriate to allow timely decisions regarding required disclosure.


There has been no change in our internal control over financial reporting during
the quarter ended September 30, 2007 that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.


                                       23
<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 discussion in Part II, Item 6 "Management's
Discussion and Analysis" in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 2006.


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

The Company signed a compensation agreement with a consultant on May 1, 2007
under which the Company agreed to issue an aggregate of 400,000 shares of its
common stock to the consultant for services to be rendered for the twelve-month
period ending April 30, 2008. On June 13, 2007, the Company issued 100,000
shares of common stock to the consultant pursuant to this agreement for
aggregate consideration in the form of services rendered by the consultant equal
to $6,400.

The Company signed a compensation agreement with a consultant on June 1, 2007
under which the Company agreed to issue an aggregate of 2,000,000 shares of its
common stock to the consultant for services to be rendered for the six-month
period ending December 1, 2007. On September 4, 2007, the Company issued
1,000,000 shares of common stock to the consultant pursuant to this agreement
for aggregate consideration in the form of services rendered by the consultant
equal to $91,000.

The Company signed a compensation agreement with a consultant on June 11, 2007
under which the Company agreed to issue an aggregate of 2,000,000 shares of its
common stock to the consultant for services to be rendered for the six-month
period ending December 10, 2007. On September 11, 2007, the Company issued
1,000,000 shares of common stock to the consultant pursuant to this agreement
for aggregate consideration in the form of services rendered by the consultant
equal to $81,000.

In July 2007, the Company entered into two separate agreements with an investor
in private placements to sell 540,000 and 460,000 shares of its common stock at
$.065 and $.07 per share, respectively, for total consideration of $67,300. The
closing dates for the private placements were August 10, 2007 and August 30,
2007, respectively.

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 October 17, 2007, the Company issued 250,000
shares of common stock to the consultant pursuant to this agreement for
aggregate consideration in the form of services rendered by the consultant equal
to $39,000.

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.

                                       24
<PAGE>

ITEM 6. EXHIBITS

       (a) Exhibits

         10.1   Supply Agreement between Secured Digital Applications, Inc. and
                Collier Consulting Inc. dated as of October 27, 2007
                (Incorporated  by  reference  to Exhibit 10.1 to the  Company's
                Current Report on Form 8-K dated October 27, 2007, as
                filed with the SEC on November 1, 2007)

         31.1   Certification by Chief Executive Officer Required Under Section
                302 of Sarbanes-Oxley Act of 2002

         31.2   Certification by Chief Accounting Officer Required Under Section
                302 of Sarbanes-Oxley Act of 2002

         32.1   Certification by Chief Executive Officer Required Under Section
                906 of Sarbanes-Oxley Act of 2002

         32.2   Certification by Chief Accounting Officer Required Under Section
                906 of Sarbanes-Oxley Act of 2002


                                       25
<PAGE>

                                   SIGNATURES


     In accordance with the requirements of the Securities and Exchange Act of
1934, the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.




                                   SECURED DIGITAL APPLICATIONS, INC.
                                         (Registrant)



DATE: NOVEMBER 14, 2007            BY: /s/ Patrick Soon-Hock Lim
                                   ------------------------------
                                   Patrick Soon-Hock Lim
                                   Chairman and Chief Executive Officer



DATE: NOVEMBER 14, 2007            BY: /s/ Voon Fui Yong
                                   ------------------------------
                                   Voon Fui Yong
                                   Chief Accounting Officer


                                       26