UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q  QUARTERLY REPORT
UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934  For the Quarter Ended March 31, 2008 Commission File No:0-29249  True Product ID, Inc. (Name of Small Business
Issuer in Its Charter)  Delaware
16-1499611(State of other jurisdiction of Incorporation or
Organization)
(Employer Identification Number)  1615 Walnut Street, 3rd Floor Philadelphia, PA 19103 (Address of principal
executive offices) (Zip Code)  (215)
972-1601 (Issuer's Telephone Number, Including Area Code)  Check
whether the Issuer: (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 30
days:     Yes [X]    No [  ]  Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company. See definition of accelerated filer and large accelerated
filer in Rule 12b-12 of the Exchange Act (Check one)  Large
Accelerated filer [   ] Accelerated filer [   ]
Non-accelerated filer [   ] Smaller Reporting Company [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]   AS
OF MARCH 31, 2008, THERE WERE 987,714,159 SHARES OF COMMON STOCK ISSUED AND
OUTSTANDING.           TRUE PRODUCT ID, INC.
(A DELAWARE
CORPORATION)
PHILADELPHIA,
PENNSYLVANIA



TABLE
OF CONTENTS


Consolidated Balance Sheets at March 31, 2008
(Unaudited) and
June
30, 2007 (Audited)
F-2

Consolidated Statements of Operations for the Three
and Nine Months Ended
March
31, 2008 and 2007 (Unaudited)
F-3

Consolidated Statements of Cash Flows for the Nine
Months Ended
March
31, 2008 and 2007 (Unaudited)
F-4      F-1    **TRUE
PRODUCT ID, INC.**
****
****
******(A DEVELOPMENT STAGE
COMPANY)**
****
****
******(A DELAWARE
CORPORATION)**
****
****
******Philadelphia,
Pennsylvania**
****
****
******CONSOLIDATED BALANCE
SHEETS**
****
****
********
**March
31,**
****
**June
30,****ASSETS**
**2008**
****
**2007******
**(Unaudited)**
****
(Audited)CURRENT ASSETS:Cash and cash
equivalents
**$261,016**
****
$42,774Accounts
receivable
**188,910**
****
31,806Other current
assets
**4,539**
****
2,933Total
current assets
**454,465**
****
77,513PROPERTY AND EQUIPMENT -
Net
**146,309**
****
136,305Interest receivable - related
party
**43,126**
****
30,188Note receivable - related
party
**300,000**
****
300,000Intangible assets - net of
accumulated depreciation
**17,596,899**
****
17,601,191Technology license - net of
accumulated depreciation
**476,647**
****
521,566TOTAL
ASSETS
**$ 19,017,446**
****
$   18,666,763**LIABILITIES AND
STOCKHOLDERS EQUITY**
****
****
********
****
****
********
****
****
****CURRENT LIABILITIES:Accounts payable and accrued
expenses
**$1,525,412**
****
$1,345,642Current portion of capital
lease
**-**
****
7,351Notes payable
**246,836**
****
219,410Total
current liabilities
**1,772,248**
****
1,572,403OTHER LIABILITIES:Notes payable -
SSTY
**-**
****
1,095,590Bridge
notes payable
**251,504**
****
-Long-term portion of capital
lease
**38,530**
****
35,989Accrued expenses - related
party
**521,500**
****
521,500Due to related
party
**186,213**
****
176,240Convertible
debenture
**500,000**
****
500,000TOTAL
LIABILITIES
**3,269,995**
****
3,901,722Minority interest
**(276,711)**
****
(124,466)Commitments and
contigenciesSTOCKHOLDERS
DEFICIT:Common stock, $.001 par value;
authorized 1,000,000,000 shares;987,714,159 shares
issued and 440,622,336 shares issuable atMarch 31, 2008 and
440,622,336 shares issued and254,712,096 shares
issuable at June 30, 2007, respectively
**987,714**
****
440,622Additional paid-in
capital
**47,847,860**
****
23,123,913Accumulated deficit during
development stage
**(32,729,290)**
****
(8,663,876)**16,106,284**
****
14,900,659Less: stock held in trust
**(1,500)**
****
(1,500)Foreign currency
translation adjustment
**(80,622)**
****
(9,652)Total stockholders
equity
**16,024,162**
****
14,889,507TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
**$ 19,017,446**
****
$ 18,666,763See notes to consolidated
financial statements.
F-2        **TRUE PRODUCT ID, INC.
(formerly ONTV, Inc.)**
****
****
****
****
****
****
****
****
******(A DEVELOPMENT STAGE
COMPANY)**
****
****
****
****
****
****
****
****
******(A DELAWARE
CORPORATION)**
****
****
****
****
****
****
****
****
******Philadelphia,
Pennsylvania**
****
****
****
****
****
****
****
****
******CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)**
****
****
****
****
****
****
****
****
********
****
****
****
****
****
****
****
****
**Period October 1,******
****
****
****
****
****
****
****
****
**2005 (Date of******
**For the Three
Months Ended**
****
**For the Nine
Months Ended**
****
**Inception) Through******
**March
31,**
****
**March
31,**
****
**March 31, 2008******
**2008**
****
2007

**2008**
****
2007REVENUE, net of returns
**$-**
****
$-

**$             
-**
****
$-

$-Expenses:Amortization and
depreciation
**17,909**
****
15,314

**63,920**
****
45,260

146,282Technology license
fee
**-**
****
-

**-**
****
450,000

637,500Officer and director
compensation
**277,742**
****
200,000

**9,526,176**
****
5,492,248

16,357,524Consulting fees
**84,015**
****
-

**15,765,450**
****
79,605

15,845,055Other
**51,006**
****
26,469

**532,388**
****
110,762

1,004,175Total
expenses
**430,672**
****
241,783

**25,887,934**
****
6,177,875

33,990,536NET LOSS FROM
OPERATIONS
**(430,672)**
****
(241,783)

**(25,887,934)**
****
(6,177,875)

(33,990,536)OTHER INCOME
(EXPENSE):Interest expense
**(13,215)**
****
(8,000)

**(34,846)**
****
(8,000)

(54,042)Interest income - related
party
**3,647**
****
4,507

**12,273**
****
13,133

42,461Interest income
**-**
****
-

**-**
****
-

197Loss on equity
investment
**-**
****
-

**-**
****
-

(65,513)Forgiveness of
liabilities
**-**
****
-

**1,583,753**
****
-

1,583,753NET LOSS BEFORE MINORITY
INTEREST
**(440,240)**
****
(245,276)

**(24,326,754)**
****
(6,172,742)

(32,483,680)MINORITY INTEREST
**109,685**
****
-

**261,340**
****
-

288,618****
****
****
****
****
****
****
****
****DISCONTINUED
OPERATIONSLoss from operations of disposed
subsidiaries, net of taxes
**-**
****
-

**-**
****
-

(10,245)Loss from disposal of
subsidiaries, net of taxes
**-**
****
-

**-**
****
-

(523,983)Loss from
discontinued operations
**-**
****
-

**-**
****
-

(534,228)NET
LOSS
**(330,555)**
****
(245,276)

**(24,065,414)**
****
(6,172,742)

(32,729,290)OTHER COMPREHENSIVE LOSS:Foreign currency translation
adjustment
**(56,863)**
****
-

**(70,970)**
****
-

(80,622)TOTAL COMPREHENSIVE
LOSS
**$(387,418)**
****
$(245,276)

**$
(24,136,384)**
****
$ (6,172,742)

$(32,809,912)NET LOSS PER SHARE:Basic and
Diluted
**$(0.00)**
****
$(0.00)

**$(0.03)**
****
$(0.02)WEIGHTED-AVERAGE
SHARES:Basic and
Diluted
**986,120,752**
****
339,289,003

**731,281,254**
****
299,016,572See notes to consolidated
financial statements.

F-3        **TRUE PRODUCT ID, INC. (formerly ONTV,
Inc.)**
****
****
****
****
******(A DEVELOPMENT STAGE
COMPANY)**
****
****
****
****
******(A DELAWARE
CORPORATION)**
****
****
****
****
******Philadelphia,
Pennsylvania**
****
****
****
****
******CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)**
****
****
****
****
********
****
****
****
****
**Period October
1,******
**Nine Months
Ended**
****
**2005 (Date
of******
**March
31,**
****
**Inception)
Through******
**2008**
****
2007

**March 31,
2008******
****
****
****
****
****CASH FLOWS FROM OPERATING
ACTIVITIES:Net loss
**$
(24,065,414)**
****
$ (6,172,742)

$(32,729,290)Adjustments to reconcile net loss
to net cash used in operating activities:Depreciation and
amortization
**63,920**
****
45,260

146,282Stock based
compensation
**9,055,589**
****
4,838,829

14,913,209Issuance of common stock for
consulting fees
**15,765,450**
****
62,500

15,827,950Forgiveness of
liabilities
**(1,583,753)**
****
-

(1,583,753)Loss from equity
investment
**-**
****
-

65,513Loss on disposal of
subsidiaries
**-**
****
-

523,983Loss from operations of disposed
subsidiaries
**-**
****
-

10,245Minority interest
**(152,245)**
****
-

(179,524)Changes in assets and
liabilities:Prepaid
expenses
**-**
****
(1,225)

(1,247)Accounts
receivable
**(157,104)**
****
-

(157,504)Other current
assets
**(1,606)**
****
-

(1,606)Interest receivable -
related party
**(12,938)**
****
(12,938)

(43,126)Accounts payable and
accrued expenses
**174,960**
****
1,106,537

1,781,124Accrued expenses -
related party
**488,164**
****
-

575,664Net cash used in operating activities
**(424,977)**
****
(133,779)

(852,080)CASH FLOWS FROM INVESTING
ACTIVITIES:Investment in acquired
entity
**-**
****
(250,000)

43,423Purchase of fixed
assets
**(24,713)**
****
(8,191)

(32,904)Cash and cash equivalents in
disposed subsidiaries
**-**
****
-

-Net cash used in investing activities
**(24,713)**
****
(258,191)

10,519CASH FLOWS FROM FINANCING
ACTIVITIES:Proceeds from issuance of common
stock for cash
**450,000**
****
-

450,000Proceeds from sale of convertible
debentures
**-**
****
500,000

500,000Proceeds
from financing
**288,903**
****
-

334,917Proceeds from line of
credit
**-**
****
50,000

-Repayment of debt
**-**
****
(100,000)

(101,716)Net cash provided by financing activities
**738,903**
****
450,000

1,183,201FOREIGN CURRENCY
TRANSLATION
**(70,970)**
****
-

(80,622)NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
**218,242**
****
58,030

261,016BEGINNING OF
PERIOD
**42,774**
****
-

-END OF
PERIOD
**$261,016**
****
$58,030

$261,016Supplementary disclosure of
cash flow information:Cash paid for
interest
**$-**
****
$-

$-Cash paid for
taxes
**$-**
****
$-

$-See notes to condensed
financial statements F-4     **TRUE PRODUCT
ID, INC. (formerly ONTV, Inc.)**
****
****
****
****
******(A DEVELOPMENT STAGE
COMPANY)**
****
****
****
****
******(A DELAWARE
CORPORATION)**
****
****
****
****
******Philadelphia,
Pennsylvania**
****
****
****
****
******CONSOLIDATED STATEMENTS
OF CASH FLOWS - continued**
****
****
****
****
**Period October
1,******
****
****


**2005 (Date
of******
**March
31,**
**Inception)
Through******
**2008**
****
2007

**March 31,
2008**NON-CASH INVESTING AND
FINANCING ACTIVITIESIssuance of common
stock and notes payable and elimination of accrued royalty as part of acquisition of 60%
interest in chinese joint venture
$-

$-

$17,597,500Sale of subsidiary
via the issuance of note receivable
$-

$-

$300,000Issuance of common
and preferred stock for acquisition of technology license
$-

$-

$598,927Assets and
liabilities transferred to related partyin connection with sale of
subsidiaries:Cash and cash
equivalents
$-

$-

$50,823Inventory
$-

$-

$296,544Property and
equipment
$-

$-

$54,189Accounts receivable - related
party
$-

$-

$37,850Deposits
$-

$-

$6,667Due from officer
$-

$-

$82,193Intangible assets
$-

$-

$260,542Investments in
affiliates
$-

$-

$107,561Accounts payable and accrued
expenses
$-

$-

$(210,769)Debt
$-

$-

$(6,321)Due to related
party
$-

$-

$137,240Treasury
stock
$-

$-

$17,709 See notes to condensed
financial statements F-5   TRUE PRODUCT
ID, INC. (A DELAWARE CORPORATION) PHILADELPHIA, PENNSYLVANIA  NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  NOTE A - BASIS OF
PRESENTATION  The condensed consolidated financial
statements of True Product ID, Inc. (TPID US) and its subsidiaries
(collectively, the Company) included herein, have been prepared by the Company
pursuant to the rules and regulations of the U.S. Securities and Exchange
Commission (the SEC).   Subsequent to TPID US May 11, 2007
acquisition of an additional 20% ownership interest in True Product ID
Technology (Beijing) Limited (the Chinese JV Company) raising TPID US
ownership interest in the Chinese JV Company to 60% and giving TPID US control
of the Chinese JV Company, the accounts of the Chinese JV Company are fully
consolidated with the accompanying minority interest reflected.  Prior to
May 11, 2007, but subsequent to TPID US acquisition of its January 5, 2007
initial 40% ownership of the Chinese JV Company, TPID US accounted for its
investment under the equity method of accounting, whereby TPID US recognized its
proportional share of the Chinese JV Companys net income / loss on the
Statement of Operations under the caption Loss on Equity Investment. All
material inter-company transactions have been eliminated in consolidation.  In preparing its consolidated financial statements, the
Company included only expenses and other financial information of the
consolidated Chinese JV Company from May 2007, when TPID US acquired majority
ownership and control of the Chinese JV Company.  This method of
presentation is consistent with Accounting Research Bulletin (ARB) 51.  Certain information and footnote
disclosures normally included in financial statements prepared in conjunction
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading.
 These condensed consolidated financial statements should be read in
conjunction with the annual audited consolidated financial statements and the
notes thereto included in the Company's Form 10-KSB Annual Report and other
reports filed with the SEC.  The accompanying unaudited interim
consolidated financial statements reflect all adjustments of a normal and
recurring nature which are, in the opinion of management, necessary to present
fairly the financial position, results of operations and cash flows of the
Company for the interim periods presented.  The results of operations or
these periods are not necessarily comparable to, or indicative of, results of
any other interim period or for the fiscal year taken as a whole.  RECENT ACCOUNTING PRONOUNCEMENTS  In March 2008, the FASB issued SFAS No. 161, Disclosure
about Derivative Instruments and Hedging Activities, an amendment of FASB
Statement No. 133, (SFAS 161). This statement requires that objectives for using
derivative instruments be disclosed in terms of underlying risk and accounting
designation. The Company is required to adopt SFAS 161 on January 1, 2009. The
Company is currently evaluating the potential impact of SFAS No. 161 on the
Companys consolidated financial statements.  In April 2008, the FASB issued FSP FAS 142-3,
Determination of the Useful Life of Intangible Assets, which amends the
factors that should be considered in developing renewal or extension assumptions
used to determine the useful life of intangible assets under FASB 142 Goodwill
and Other Intangible Assets.  The intent of this FSP is to improve the
consistency between the useful life of a recognized intangible asset under SFAS
142 and the period of the expected cash flows used to measure the fair value of
the asset under FASB 141 (revised 2007) Business Combinations and other U.S.
generally accepted accounting principles.    The Company is
currently evaluating the potential impact of FSP FAS 142-3 on its consolidated
financial statements.  In December 2007, the Financial Accounting Standards
Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141
(revised 2007), Business Combinations (hereinafter SFAS No. 141 (revised
2007)). This statement establishes principles and requirements for how an
acquirer a) recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed and any noncontrolling interest in the
acquiree, b) recognizes and measures the goodwill acquired in the business
combination or a gain from a bargain purchase and c) determines what information
to disclose to enable users of the financial statements to evaluate the nature
and financial effects of the business combination. The scope of SFAS No. 141
(revised 2007) is broader than the scope of SFAS No. 141, which it replaces. The
effective date of SFAS No. 141 (revised 2007) is for all acquisitions in which
the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. The adoption of this statement
has no immediate material effect on the Companys financial condition or results
of operations.   F-6   In December 2007, the FASB issued SFAS No. 160,
Noncontrolling Interests in Consolidated Financial Statements  an amendment of
ARB No. 51 (hereinafter SFAS No. 160). This statement establishes accounting
and reporting standards that require a) the ownership interests in subsidiaries
held by parties other than the parent be clearly identified, labeled and
presented in the consolidated statement of financial position with equity, but
separate from the parents equity, b) the amount of consolidated net income
attributable to the parent and to the noncontrolling interest be clearly
identified and presented on the face of the consolidated statement of income, c)
changes in a parents ownership interest while the parent retains its
controlling financial interest in its subsidiary be accounted for consistently,
d) when a subsidiary is deconsolidated, any retained noncontrolling  equity
investment in the former subsidiary be initially measured at fair value and e)
entities provide sufficient disclosures that clearly identify and distinguish
between the interests of the parent and the interests of the noncontrolling
owners. The effective date of this standard is for fiscal years and interim
periods beginning on or after December 15, 2008. The adoption of this statement
had no immediate material effect on the Companys financial condition or results
of operations.  NOTE B - THE MONIES OWED BY
FASANO AS A RESULT OF THE SALE OF SEEN ON TV  As a result of the September 2005 purchase by then
Company president and chairman, Daniel M. Fasano, of all the shares of
subsidiary, Seen OnTV, and other assets incidental to the business of Seen OnTV
(including, but not limited to, the domain name and asseenontv.com, which the
Company purchased in January 2000 for $5,000,000), pursuant to a written
agreement, Fasano owes the Company $300,000, plus interest at 5.75% per year.
 As of the date of this filing, Fasano has not paid any monies for the
September 2005 purchase. On October 31, 2007, Fasano filed a pro sepetition for the statutory appointment of a receiver in the Delaware Court
of Chancery.  In his petition, Fasano claims that the Company is insolvent
based, in part, due to in excess of $900,000 he claims the Company owes him that
remains unpaid.  In its January 4, 2008 answer to the Petition, the Company
denied and continues to deny that it is insolvent and that the appointment of a
receiver is required.  The Company explained that Fasano is a party to
certain agreements pursuant to which the Company agreed to pay him certain
monies that have not yet been fully paid.  The Company went on to explain
that Fasano owes the Company in excess of $330,000, which amount exceeds the
amount which the Company believes Fasano is owed by the Company pursuant to the
aforementioned agreements.   This litigation is being vigorously
defended and the Company believes it has meritorious defenses.  On or about February 28, 2008, Mr. Fasano filed a
lawsuit, pro se, in Broward County, Florida against the Company for
damages in the amount of approximately $900,000.  The Company responded to
the lawsuit by filing a Motion to Dismiss on jurisdictional grounds.  The
Company believes the lawsuit is without merit and if Mr. Fasano pursues it, the
Company intends to vigorously defend it.   NOTE C 
EMPLOYMENT, CONSULTING AND SERVICE AGREEMENTS  The chart below list
the Companys officer, directors, employees, and consultants:  Richard A. Bendis
-President/CEO (March 2006 to August 2007)
-Chairman (March 12, 2007 to August 2007)
Employment Agreement:
--March 2006 to August 9, 2007
--$500,000/ year
--30,329,303 shares

Consulting Agreement:
--August 9, 2007 to March 31, 2008
--$240,000/ year

On March 31, 2008, Bendis agreed to eliminate all
compensation and other monies owed by the Company under any employment and
consulting agreement (approximately $863,244), in return for the Companys
agreement to allow him to maintain stock previously issued to
him.   F-7   James MacKay
Chairman (March 2006 to March 2007; August 2007 to
November 2007)
Consulting Agreement-November 2007:
-$300,000/year
-39,559,961 shares

In November 2007, MacKay agreed to eliminate all
consulting fees owed to him up to November 7, 2007 (approximately
$462,500).William R. Dunavant
--CEO and Chairman (November 2007 to March
2008)
--Managing Director, Global Strategic Initiative
(March 2008)
Employment Agreement-November 2007
--$240,000/year
--200,000,000 shares
Amended Employment Agreement-March 2008
--$200,000/yearWilson W. Hendricks
--COO (November 2007 to March 2008)
--CEO and director (March 2008)
Employment Agreement-November 2007
--$150,000/year

Amended Employment Agreement-March 2008
--$240,000/year
--500,000 shares upon completion of reverse stock
split (anticipated May 2008)
--opportunity to receive another 500,000 shares at
end of year 1KeKe Wang
-President (January 2008)
Employment Agreement-January 2008
--$150,000/year
--250,000 shares upon completion of reverse stock
split (anticipated May 2008)
--opportunity to receive another 250,000 shares at
end of year 1Li Ning
--Director (August 2007 to February 2008)
Directors AgreementAugust 2007:
--10,000,000 sharesSergio da Luz
--Director (May 2007)
--President (August 2007 to November 2007)
--President, China (November 2007 to present)
Currently an employment contract does not
exist.Michael J. Antonoplos
--Director (April 2007)
--Secretary (November 2007)
Directors Agreement :
-- 1,000,000 shares  On January 14, 2008, the Company hired former AQSIQ
liaison for manufacturers and exporters in North America, KeKe Wang, as its new
president.  Under the terms of his employment agreement with the Company,
Mr. Wang will serve as our president for a period of three years. During his
term of employment, Mr. Wang will earn a base salary of no less than $150,000
per year.  In addition to base salary, Mr. Wang may be paid an annual bonus
as our Compensation Committee determines in its sole discretion.  Mr. Wang
will be entitled to participate in and be covered under all welfare benefit
plans or programs maintained for executive officers.  We also agreed to
maintain a term life insurance policy for Mr. Wang in an amount not less than
$150,000 during the term of his employment.  The policy shall pay 75% of
its face value to Mr. Wangs estate with the remaining 25% to be paid to us. On February 18, 2008 the board of
directors of the Registrant accepted the resignation of Li Ning as a director of
the Registrant, effective immediately.  On March 4, 2008, the board approved the appointment of
the Companys then chief operating officer, Wilson Hendricks III,   F-8  as the Companys new chief
executive officer (CEO). The board also approved the appointment of Mr.
Hendricks as a member of the Companys Board. On March 4, 2008, the Company
entered into a new employment agreement with Wilson W. Hendricks, III, to be its
CEO for a period of three years. During his term of employment, Mr. Hendricks
will earn a base salary of no less than $240,000 per year. In addition to base
salary, Mr. Hendricks will be entitled to receive 500,000 restricted shares of
the Companys common stock immediately upon completion of the Companys 100 to 1
reverse stock split. Mr. Hendricks will also have an opportunity to receive an
additional 500,000 restricted shares of the Companys common stock at the end of
the first year of his contract, based on his performance of certain performance
criteria which the Companys Compensation Committee will determine after
execution of the contract.  On March 4, 2008, William R. Dunavant voluntarily agreed
to step down as CEO and as a director of the Company, and assumed the position
of the Companys Managing Director of Global Strategic Initiatives.  On
March 4, 2008, upon board approval, the Company entered into an Amendment to Mr.
Dunavants November 7, 2007 Employment Agreement with the Company.
 Pursuant to the amendment, Mr. Dunavants title and position was changed
from Chief Executive Officer to Managing Director of Global Strategic
Initiatives; Mr. Dunavant resigned his position as a board member; and Mr.
Dunavants base salary shall be changed from $240,000 per annum to $200,000 per
annum. To the extent not inconsistent with the amendment, all other terms and
conditions in Mr. Dunavants November 4, 2007 employment agreement with the
Company remained unchanged and in full force.  On March 31, 2008, Bendis agreed to eliminate all
compensation and other monies owed by the Company to Bendis under any and all
employment and consulting agreement he may have had with the Company
(approximately $863,244).  The Company in return agreed to allow Bendis to
maintain the shares of the Companys common stock previously issued to him.  AQSIQ Contract  On January 29, 2008, the State General Administration for
Quality Supervision, Inspection and Quarantine of the Peoples Republic of
China, the Chinese counterpart to the U.S. Consumer Product Safety Commission
(AQSIQ), further formalized its partnership with the Company by issuing
official commitments known as Red Hat documents.  The Red Hat Documents
are the initial set of official documents to be filed by AQSIQ to form the new
joint venture with the Company.  They officially confirm AQSIQs commitment
to form the new joint venture the Company and to implement the AQSIQ national
LNG tank contract with the Company.  The new joint venture will be called
China Inspection True Product Technology Inc. Limited.  The Company and
AQSIQ are proceeding with the remaining steps to register the new joint
venture.  NOTE D - EQUITY
MATTERS  In January 2008, the Company raised $450,000 as a result
of the sale of equity units consisting of one share of the Companys common
stock and a warrant to purchase 1⁄2 share of common stock at an exercise price of
$0.085 per share for a period of one year subsequent to the purchase of the
equity unit.  The price of the units was $0.05 per share resulting in the
issuance of 9,000,000 shares of the Companys common stock and the issuance of
9,000,000 warrants to purchase the Companys common stock.  In November 2007, the Board voted to effect a 30:1
reverse split of the Companys common stock.   On November 29, 2007
the Companys Board of Directors voted to amend the ratio to 100:1.  This
action was then authorized and approved by the holders of a majority of the
outstanding common shares of the Company authorized to vote.  The Company
has filed its Schedule PRE 14C preliminary information statement in connection
with the 1 for 100 reverse stock split on April 23, 2008.  The Company
filed its Schedule DEF 14C definitive information statement in connection with
the 1 for 100 reverse stock split with the SEC on May 7, 2008; and mailed on May
9, 2008 the definitive information statement to all shareholders of record as of
April 22, 2008 (as identified in the certified shareholder list received from
the Companys transfer agent).    In November 2007, the Company raised $200,969 as a result
of the sale of equity units consisting of one share of the Companys common
stock and a warrant to purchase 1⁄2 share of common stock at an exercise price of
$0.10 per share for a period of one year subsequent to the purchase of the
equity unit.  The price of the units was $0.065 per share resulting in the
issuance of 3,091,823 shares of the Companys common stock and the issuance of
1,545,912 warrants to purchase the Companys common stock.  The proceeds
were wired to the Chinese JV Company to fund China operations.   NOTE E  COMPANYS MAJORITY
OWNERSHIP OF A CHINESE JOINT VENTURE COMPANY  As of May 2007 the Company owns a
60% interest in the Chinese JV Company (True Product ID Technology (Beijing)
Limited). This resulted from (1) the January 2007 acquisition of 40% of the
Chinese JV Company from Sure Trace Security Corporation   F-9  (SSTY),
Sure Trace Asia Limited, and William Chan pursuant to a January 4, 2007
Restructuring Agreement (in which the Company agreed, inter alia, to pay
SSTY approximately $1 million and assume certain liabilities); and (2) the May
2007 acquisition of 20% of the Chinese JV Company from Sichuan Valencia Trading
Limited pursuant to a May 11, 2007 acquisition agreement for 100 million shares
of the Companys common stock.  SSTY agreed in November 2007 to forgive all
monies owed by the Company under the January 2007 Restructuring Agreement
(approximately $1 million) in consideration for certain licensing rights to the
Companys anti-counterfeiting technologies for limited applications.  Since its 60% ownership of the Chinese JV Company in May
2007, the accounts of the Chinese JV Company have been fully consolidated with
the accompanying minority interest reflected.  NOTE F 
FINANCING  1. In February and March 2008, the
Company entered into three convertible notes with different private investors
for $100,000, $100,000 and $50,000; respectively, due in thirty days. The notes
bore 10% interest upon the closing of the first strategic investment transaction
in which the Company receives gross proceeds of at least two million dollars
($2,000,000) from the sale of its equity securities (a Qualified Strategic
Financing or QSF), into shares or units of the equity securities sold in the
QSF at the per share sale price or unit sale price of the QSF. The notes also
included two-year warrants.  The number of shares that can be purchased
under the warrants is determined by the purchase price of the QSF divided into
the total proceeds initially lent by the noteholders.  2. At September 30, 2007, MacKay Group
Limited (MKG) had advanced the Company $52,451 under a line of credit, the
principal amount and accrued interest of which were forgiven in November 2007.
 As of August 2007, MKG had also advanced approximately $1 Million for the
Chinese JV Company.  In November 2007, MKG assigned to the Company MKGs
rights vis-à-vis the Chinese JV Company associated with the $1 Million advance.
 After November 7, 2007, MKG has advanced additional funds to the Chinese
JV Company in excess of $150,000 and has also paid expenses of the Company
totaling $36,213.  3. On January 17, 2007, the Company
entered into a convertible note with an accredited investor bearing 8% interest
for $500,000. The investors received warrants to purchase additional shares
of Company's common stock at a price per share equal to the price per share
of the shares issued in the First Equity Financing, with 20% warrant coverage if
the bridge converts within 4 months; 35% warrant coverage if the bridge converts
within 8 months; and 50% warrant coverage if the bridge converts after 8 months.
 The First Equity Financing is defined as the first financing following
the date of Closing in which the Company sells preferred stock or other equity
securities and obtains net proceeds (including debt conversion) in an amount not
less than $2 million (including the conversion of the Debt). The warrants shall
have a seven-year exercise period.  NOTE G  FOREIGN OPERATIONS:  Since May 2007, the majority of the Companys operating
activities have been in China.  The functional currency of the Chinese
Venture is the Yuan and the financial statements of the Chinese JV Company have
been converted from Yuan to U.S. Dollars at the exchange rate in effect.
 There were no foreign currency gains or losses included in the March 31,
2008 Statement of Operations.  A Foreign Currency Translation Adjustment of
$80,622 is included as a component of Shareholders Equity at March 31, 2008, to
reflect the change in value of assets and liabilities in the Chinese JV
Companys balance sheet.  Accounts Receivable  There was $188,910 in accounts receivable at March 31,
2008, all from the Chinese JV Company.  These arose in part from customer
purchases of taggant, scanners and other equipment and materials associated with
trial and pilot runs associated with the Companys securing Chinese contracts.
 The Company believes that these accounts receivable will be collected in
China in due course, given the fairly recent nature of the accounts receivable
(at least according to Chinese standards), the ongoing nature of certain trial
or pilot runs and relationship with Chinese customers, the relationships
involving Chinese government entities, and the significance of the Chinese JV
Companys continued efforts towards certain Chinese government-related
initiatives.  At March 31, 2008, the assets of the Chinese JV Company
were $334,588 and the liabilities of the Chinese JV Company were approximately
$1.1 million.  For the three and nine months ended March 31, 2008, no
revenues were recognized relative to the Chinese JV Company and $274,213 and
$653,349, respectively, of expenses was recognized resulting in such net losses,
a compensating $109,685and $261,340, respectively, minority interest recognized
for the 40% portion of the Chinese JV Company not owned by the Company for the
three and nine months ended March 31, 2008.    F-10  NOTE H  DEBT
REDUCTION  In November 2007, the Company eliminated
the following debt, which was forgiven.  Compensation due
James MacKay $
    462,500 Borrowings on
line of credit provided by MKG 52,451 Accrued interest
on line of credit 638 Note payable to
SSTY 1,068,164  Total $1,583,753  The total amount forgiven was recorded
as a component of Other Income.   NOTE I  SUBSEQUENT EVENTS  Effective April 1, 2008, Bendis agreed
to eliminate all compensation and other monies owed by the Company to Bendis
under any and all employment and consulting agreement he may have had with the
Company, totaling approximately $863,244.  The Company, in return, agreed
to allow Bendis to maintain the shares of the Companys common stock previously
issued to him.  On April 23, 2008, the Company filed a preliminary
information statement (Schedule PRE 14C) with the SEC, reporting that on
November 28, 2008 its board of directors of the Company (the Board)
unanimously adopted a resolution seeking stockholder approval to amend the
Company's Articles of Incorporation to effect a 1 for 100 reverse stock split of
the Company's Common Stock. On the same day, and as subsequently re-affirmed,
pursuant to the By-Laws of the Company and applicable Delaware law, stockholders
of the Company holding over a majority of the total voting rights for all issued
and outstanding shares of common and preferred stock of the Company, adopted by
way of written consent, a resolution to authorize the Board of Directors, in its
sole discretion, to amend the Companys Articles of Incorporation to effect a
reverse split of the Company's Common Stock based upon a ratio of 1-for-100
shares. The Company may effect the reverse stock split at any time prior to
April 22, 2009. The Board believes that the proposed reverse stock split will
benefit the Company by increasing the per share market price of its common
stock, which is a factor in whether the Common Stock meets investing guidelines
for certain institutional investors and investment funds, although there is no
assurance that the market price will increase.  The SEC had 10 days from the April 23, 2008 filing date
to comment on the Information Statement. The Company did not receive any
comments on the Information Statement from the SEC within the 10-day period;
filed a definitive information statement (Schedule DEF 14C) with the SEC on May
7, 2008; and mailed on May 8-9, 2008 the definitive information statement to all
shareholders of record as of April 22, 2008 (as identified in the certified
shareholder list received from the Companys transfer agent).   The
reverse split will go into effect 20 days from the May 9, 2008 mailing date or
on May 29, 2008.  To complete the reverse split, after May 29, 2008, the
Company will file its amendment to the Articles of Incorporation with the State
of Delaware, secure a new CUSIP number, and seek approval from the Financial
Industry Regulatory Authority (FINRA).  Effective May 6, 2008, the Companys Board of Directors
retained the accounting firm of Jewett, Schwartz, Wolfe & Associates
(JSWA) as its new independent registered public accounting firm to replace
Rotenberg & Co., LLP (Rotenberg). The primary reason for the change is that
JSWA has a working relationship with the Companys current counsel and financial
personnel. Rotenberg has been the Companys independent registered public
accounting firm since at least January 24, 2000, and was engaged by one of the
prior managements over six years before the Company changed its name, ownership,
management and business in 2006.  ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  The following discussion should be read in
conjunction with, and is qualified in its entirety by, our audited financial
statements and notes thereto, and other financial information included elsewhere
in the Annual Report on Form 10-KSB.  Certain statements contained in this Managements
Discussion and Analysis of Financial Condition and Results of Operations" and
elsewhere in this report are forward-looking   statements that involve
risks and   uncertainties.   These Statements relate to future events or our future
financial performance.  In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should", "expect",
"anticipate", "intend", "plan", "believe", "estimate",   11  "potential", or "continue",
the negative of these terms or other comparable terminology.   These
statements involve a  number  of  risks  and uncertainties.
  Actual events or results may differ materially from any
forward-looking statement as a result of various factors, including those
described above under "Risk Factors."  RESULTS OF OPERATIONS  Three Months Ended March 31, 2008 and
2007  During the three months ended March 31, 2008 ("Fiscal
2008"), the Company had no revenues, as the operations of the Chinese JV Company
had not begun customer sales, except for certain trial runs conducted by the
Chinese JV Company for Chinese customers.  In the three months ended March
31, 2007 ("Fiscal 2007"), there were no revenues.  The Company had operating expenses of $430,672 for the
third fiscal quarter of Fiscal 2008 with the majority of the expense related to
stock compensation of employees and consultants, as compared to operating
expenses of $241,783 for the third fiscal quarter of fiscal 2007, with the
majority of the expense related to stock compensation of an employee and
consultant.  The increase of operating expenses from the third fiscal
quarter of Fiscal 2008 to the third fiscal quarter of Fiscal 2007 is
attributable to expenses related to the Gas Tank Contract with AQSIQ and
additional expense related to stock compensation of employees and consultants,
when the Company brought in new management and personnel (a new chief executive
officer, chief operating officer, and consultant) in November 2007 to help
implement and fund the Gas Tank Contract with AQSIQ.  The Company reported a loss before minority interest of
approximately $440,240 for the three months ended March 31, 2008, compared to a
loss before minority interest of approximately $245,276 for the three months
ended March 31, 2007, an increase of approximately $194,964 as a direct result
of the minority interest, including the additional expense related to the Gas
Tank Contract with AQSIQ and to stock compensation of employees and consultants,
when the Company brought in new management and personnel (a new chief executive
officer, chief operating officer, and consultant) in November 2007 to help
implement and fund the Gas Tank Contract with AQSIQ.  Minority interest for the current fiscal quarter was a
credit of approximately $109,685. The add back of minority interest represents
the 40% portion of the Chinese JV Company loss not owned by the Company as the
Company only owns a 60% interest in the Chinese JV Company.  There was no
comparable amount as the Company only began consolidating the results of the
Chinese JV Company in the fourth quarter of fiscal 2006, when they increased
their ownership interest to 60%.  Therefore, for the quarter ended March 31, 2008 the
Company had a loss of approximately $387,000, compared to a loss of
approximately $245,000, for the quarter ended March 31, 2007, attributed to, the
additional expense related to the Gas Tank Contract with AQSIQ and to stock
compensation of employees and consultants, when the Company brought in new
management and personnel (a new chief executive officer, chief operating
officer, and consultant) in November 2007 to help implement and fund the Gas
Tank Contract with AQSIQ.  Nine Months Ended March 31, 2008 and 2007  During the nine months ended March 31, 2008, the
Companys had no revenues, as the operations of the Chinese JV Company had not
begun customer sales, except for certain trial runs the Chinese JV Company
conducted for Chinese customers.  In the nine months ended March 31, 2007,
there were also sales by the Chinese JV Company.  The Company had operating expenses of $25.9 million for
the first nine months of fiscal 2008, with the majority of the expense ($25.3
million) related to stock compensation of employees and consultants, compared to
operating expenses of $6.2 million for the first nine months of fiscal 2007,
with the majority of the expense ($5.6 million) related to stock compensation of
an employee and consultant.  All other expenses remained relatively
constant.  During the first three quarters of fiscal 2008, 538 million
shares of the Companys common stock were issued for services, resulting in a
charge of $25.3 million based upon the closing price of the Companys common
stock on the date the respective shares issuances were authorized by the
Companys board of directors, compared to approximately 70 million shares of the
Companys common stock issued for services, during the third fiscal quarter of
fiscal 2007, resulting in a charge of $5.6 million, based upon the closing price
of the Companys common stock on the date the respective shares issuances were
authorized by the Companys board of directors.  The increase of operating
expenses from the third fiscal quarter of Fiscal 2008 to the third fiscal
quarter of Fiscal 2007 is attributable to additional expense related to the Gas
Tank Contract with AQSIQ and to stock compensation of employees and consultants,
when the Company brought in new management and personnel (a new chief executive
officer, chief operating officer, and consultant) in November 2007 to help
implement and fund the Gas Tank Contract with AQSIQ.  The Company reported a loss before minority interest of
approximately $24.3 million for the nine months ended March 31, 2008,   12  compared to a loss before
other income and provision for income taxes of $6.2 million for the nine months
ended March 31, 2007, an increase of $19.7 million as a direct result of the
minority interest, including the additional expense related to the Gas Tank
Contract with AQSIQ and stock compensation of employees and consultants, when
the Company brought in new management and personnel (a new chief executive
officer, chief operating officer, and consultant) in November 2007 to help
implement and fund the Gas Tank Contract with AQSIQ.  Other income in the current period
included approximately $1.6 million for the forgiveness of liabilities, as
discussed previously in Note L to the financial statements.  Significant
components of other income for the prior fiscal period in
November 2007, as discussed in Note L, MKG agreed (1) to assign to TPID US the
rights MKG has regarding the MKG $1 Million Advance and (2) to forgive any debt
which MKG may have directly vis-a-vis TPID US as a result of the MKG $1 Million
Advance and/or MKGs assignment to TPID US related thereto.  (See Note H 
Debt Reduction.)   Accordingly, any right that MKG may have, vis-à-vis
the Chinese JV Company, as a result of the MKG $1 Million Advance (whether in
the form of repayment, increased capital, some combination of both or
otherwise), has been assigned to TPID US and should be considered an asset of
TPID US.  Similarly, as of November 16, 2007, MKG had forgiven any debt it
may be owed by TPID US as a result of the above-mentioned assignment (whether
the rights being assigned took the form of additional capital in the Chinese JV
Company or otherwise). The amounts due MKG by the Chinese JV Company remain
recorded upon the financial statements of the Chinese JV Company and as such are
recorded in the attached consolidated financial statements of the Company at
March 31, 2008.  Minority interest for the current fiscal period was a
credit of approximately $261,000.  The add back of minority interest
represents the 40% portion of the Chinese JV loss not owned by the Company, as
the Company only owns a 60% interest in the Chinese JV.  There was no
comparable amount as the Company only began consolidating the results of the
Chinese JV in the fourth quarter of fiscal 2006, when they increased their
ownership interest to 60%.  Therefore, for the nine-months ended March 31, 2008, the
Company had a loss of $24.1million, compared to a loss of $6.2 million for the
nine-months ended March 31, 2007, attributed to the additional expense related
to the Gas Tank Contract with AQSIQ and to stock compensation of employees and
consultants, when the Company brought in new management and personnel (a new
chief executive officer, chief operating officer, and consultant) in November
2007 to help implement and fund the Gas Tank Contract with AQSIQ.  FINANCIAL CONDITION  Liquidity and Capital Resources  During the nine months ended March 31,
2008, the Company's cash increased by approximately $218,000 to approximately
$261,000.  The increase in cash and cash equivalents during the
first nine months of fiscal 2008 is attributable to cash inflows of
approximately $739,000, from financing activities.  These cash inflows were
partially offset by outflows from operations of approximately $425,000 and cash
outflows from investing of approximately $25,000, associated with the purchase
of fixed assets.  Financing activities cash inflows consisted of
approximately $450,000 of proceeds from the sale of equity by the Company and
approximately $289,000 of financing.  Cash utilized by operating activities
totaled approximately $425,000 in the nine months ended March 31, 2008.
 Cash outflows included the approximated $24.1million net loss for the
period, the $1.6 million forgiveness of liabilities which was non-cash in
nature, the $152,000 credit for minority interest which was also non-cash in
nature and approximately $157,000 increase in accounts receivable.  These
cash outflows were partially offset by cash inflows, including approximately
$9.1 million of stock based compensation, $15.8 million for the issuance of
common stock for consulting fees, approximately $64,000 of depreciation and
amortization, approximately $175,000 increase in accounts payable and accrued
expenses and approximately $488,000 increase in accrued expenses  related
party. As discussed in Note H, in November 2007, MKG agreed (1) to assign to
TPID US the rights MKG has regarding the MKG $1 Million Advance and (2) to
forgive any debt which MKG may have directly vis-a-vis TPID US as a result of
the MKG $1 Million Advance and/or MKGs assignment to TPID US related thereto.
 (See Note H  Debt Reduction.)   Accordingly, any right that MKG
may have, vis-à-vis the Chinese JV Company, as a result of the MKG $1 Million
Advance (whether in the form of repayment, increased capital, some combination
of both or otherwise), has been assigned to TPID US and should be considered an
asset of TPID US.  Similarly, as of November 16, 2007, MKG had forgiven any
debt it may be owed by TPID US as a result of the above-mentioned assignment
(whether the rights being assigned took the form of additional capital in the
Chinese JV Company or otherwise). The amounts due MKG by the Chinese JV Company
remain recorded upon the financial statements of the Chinese JV Company and as
such are recorded in the attached   13  consolidated financial
statements of the Company at March 31, 2008.  Investing activities cash outflows included
approximately $25,000 for the purchase of property, plant and equipment.  During the nine months ended March 31,
2007, the Companys cash increased by approximately $58,000 from zero.  The increase in cash during the first nine months of
Fiscal 2007 is attributable to cash inflows of $450,000 from financing
activities.  These cash inflows were partially offset by cash outflows from
operations of approximately $134,000, and cash outflows from investing of
approximately $258,000 associated with investing activities.  Cash provided by financing activities totaled $450,000 in
the nine months ended March 31, 2007. Cash inflows consisted of $500,000
proceeds from the sale of equity by the Company in November 2007, and
approximately $50,000 of borrowings on the line of credit provided by MKG,
offset in part by a cash outflow utilized in repayment of debt of $100,000.  Cash utilized by operating activities totaled
approximately $134,000, in the nine months ended March 31, 2007.  Cash
outflows included the approximated $6.2 million loss for the period, the
approximately $1,000 increase in prepaid expenses and an increase in interest
receivable from an affiliated party of approximately $13,000. These cash
outflows were partially offset by cash inflows, including approximately $4.8
million of stock based compensation, approximately $63,000 for the issuance of
common stock for consulting fees, approximately $45,000 of depreciation and
amortization and approximately $1.1 million increase in accounts payable and
accrued expenses.  Cash utilized by investing activities totaled
approximately $258,000, in the nine months ended March 31, 2007.  Cash
outflows included approximately $8,000 used in purchase of fixed assets and
$250,000 used in acquiring an entity.  The National Contract with AQSIQ To Mark
Chinese Liquefied Natural Gas Container and Special Equipment  In August 2007, the Company, through its Chinese joint
venture affiliate, entered into a contract with the National Quality Inspection
Department of the State General Administration for Quality Supervision,
Inspection and Quarantine of the People's Republic of China ("AQSIQ"), to
develop a national safety/security system for China's liquefied natural gas and
other pressurized canisters and other special equipment.  AQSIQ is a ministerial administrative organ directly
under the State Council of the People's Republic of China in charge of national
quality, metrology, entry-exit commodity inspection, entry-exit health
quarantine, entry-exit animal and plant quarantine, import-export food safety,
certification and accreditation, standardization, as well as administrative
law-enforcement.  AQSIQ is considered the Chinese counterpart to the United
States Consumer Product Safety Commission.  The AQSIQ Contract follows an AQSIQ Circular to every
quality and technical supervision bureau in all provinces, autonomous regions
and municipalities under the control of the Chinese Central Government.
 The AQSIQ Circular sets out a 5-year AQSIQ National Security/Safety Plan
to protect against the illegal production, circulation, and use of certain
"special equipment" (the "Plan").  AQSIQ's mission in the Circular is,
among other things, to protect public safety from safety accidents and other
risks caused by counterfeit and substandard "special equipment."  Among the
special equipment referenced in the AQSIQ Circular are liquefied gas tanks,
oxygen tanks, and other pressurized containers and pipes, elevators, lift
machinery; and equipment at large recreational facilities and automobile
plants.  In its Circular, AQSIQ has explicitly designated our
technology and our Chinese joint venture company affiliate as the exclusive
technology and technology provider to help AQSIQ develop, implement and
administer its National Security/Safety Plan.  Under the AQSIQ Circular,
TPID Beijing is to help AQSIQ develop national special equipment security
identification standards (the "standards"), a special equipment identification
information security management system (the "management system"), and a special
equipment security/safety logo (the "logo").  As a result of the Circular, AQSIQ has entered into a
Project Cooperation Agreement with the Company's Chinese joint venture company
affiliate (Contract No. 0076180).  ASQIQ subsequently entered into
supplementary provisions to the Project Cooperation Agreement in connection with
the initial phase of AQSIQ's National Security/Safety Plans relating to
liquefied natural gas containers (the "LNG Contract").  Under the LNG Contract, TPID Beijing is to provide and
apply a security logo to all LNG containers in China.  According to Chinese
government statistics, the total number of LNG containers in China is currently
over 130 million and is expected to increase in quantity by 10% every year.
Under the LNG Contract, TPID Beijing is to receive a fixed taggant price per LNG
container.  The specific taggant price per LNG container is not being
disclosed due to its proprietary nature.   14   Under the LNG Contract, TPID Beijing is to provide 50,000
units of one of its highly proprietary scanners and 15,000 units of another of
its highly proprietary scanners to approximately 20,000 LNG gas stations, 30,000
special equipment  manufacturers, and 40,000 "platforms" in China.
 Under the LNG Contract, TPID Beijing is to receive a fixed price per
scanner, with a different fixed price for each type of scanner.  The
specific price per scanner is not being disclosed due to its proprietary
nature.  Finally, under the LNG Contract, TPID Beijing is to
establish a security management information system for 50,000 enterprises. Under
the LNG Contract, TPID Beijing is to receive a fixed price per enterprise.
 The specific price per enterprise is not being disclosed due to its
proprietary nature. According to AQSIQ, among such enterprises and platforms
include 5,016 enterprises in charge of manufacturing LNG containers and other
pressurized containers, 14,995 enterprises in charge of charging LNG containers,
8,747 enterprises in charge of manufacturing, installing, reequipping and
repairing boilers, and approximately 1,823 institutes in the Chinese state
quality inspection system which check LNG containers.  Since AQSIQ's Circular, Project Cooperation Agreement and
LNG Contract, the Company (1) has met and continues to meet with AQSIQ on a
routine basis to develop, coordinate and implement the roll out of AQSIQ's National Safety/Security Plan as to LNG containers;
(2) has developed a roll out plan and budget to implement the initial phase of
AQSIQs National Safety/Security Plan pertaining to LNG containers and the
initial designated areas of Beijing, Zhejiang, Shenzhen, Chongqing, Liaoning,
and Yunnan Province; and (3) has completed the development of a fully
operational automated production facility to mark China's LNG tanks, which AQSIQ
has reviewed and approved, and which pursuant to AQSIQs Circular and mandate,
LNG tank manufacturers and LNF refilling stations will be required to purchase
from the Company.  On December 1, 2007, AQSIQ conducted critical discussions
in Beijing with key Chinese national, provincial, and industry leaders regarding
the Companys Synthetic DNA and KMACK anti-counterfeiting and product safety
monitoring technology and the AQSIQ Contract.  Attending the official
conference that evening were leaders from AQSIQ, each provincial quality
inspection administration, China Special Equipments Inspection Association and
each LNG tank factory, gas station, gas tank inspection station, as well as
other enterprises. The Honorable Cui Gang, Deputy Director of AQSIQ's Special
Equipment Security Supervision Bureau, addressed the conference.  Earlier
in the day, TPID Beijing held seminars at its new offices to discuss
implementation of the S-DNA Special Equipment Security Taggant Information
Supervision System Project mandated in AQSIQ's Circular. The seminar was hosted
by the Honorable Huang Xiaohu, Director of AQSIQ's Credit Committee. Mr. Zuo
Lie, Vice Manager of TPID Beijing, presented a specific implementation plan for
AQSIQ's S-DNA Special Equipment Security Taggant Information Management System
and Project. The seminar was attended by leaders and enterprises from Beijing,
Shanghai, Guangdong, Hubei, Zhejiang and Liaoning Provinces, all of whom agreed
with AQSIQ's endorsement of TPID's technology and provided comments on
implementation.  The Company has subsequently met with AQSIQ's senior
leadership, including its Director General and Secretary.  The plan is for the Company to form a new joint venture
company in Beijing with AQSIQ and/or its affiliates.  The new joint venture
will be only with the US parent, True Product ID, Inc. (TPID US), rather than
TPID Beijing, and will be owned 70% TPID US, 30% AQSIQ.  The first step
will be to begin the roll out of AQSIQs National Security/ Safety Plan in six
provinces and cities designated by AQSIQ within approximately six months.
 Upon successful completion of this initial six month roll out, AQSIQ will
enact additional national laws specifying the details of the continued roll out
of the Companys SDNA and KMACK technology in the remaining provinces and cities
in China.  AQSIQ has also proposed extending its mandate to use the
Companys technology to applications other than LNG tanks, including, but not
limited to, elevator parts, other pressurized containers, amusement park
equipment, automobile manufacturing equipment, and cell phone batteries.  On January 29, 2008, AQSIQ further formalized its
partnership with the Company by formally issuing official written commitments
known as Red Hat documents.  The Red Hat Documents are the initial set of
official documents filed by AQSIQ to form the new joint venture with the
Company.  They officially confirm AQSIQs commitment to form the new joint
venture with the Company and to implement the LNG Contract with the Company.
 The new joint venture will be called China Inspection True Product
Technology Inc. Limited.  The Company and AQSIQ are proceeding with the
remaining steps to register the new joint venture.  The latest revenue projections for only the
LNG component of the five-year AQSIQ Contract is over US$2 billion gross and
over US$1billion net.  Chinese JV Company Outgrows Old Office
and Moves to New Larger Office    15  To keep pace with its growth
and development, and to help better enable the Chinese JV Company to fulfill
Chinese contracts, on September 28, 2007 the Chinese JV Company moved into a new
larger office located at 11th floor, Jade Palace Hotel, 76 Zhichun Road, Haidian
District, Beijing 100086.  The Chinese JV Company occupies the entire
11th floor of the Jade Palace Hotel, a new and leading commercial and
hotel complex in Beijing, which is located in a special economic zone (SEZ) and
thus allows the Chinese JV Company to continue to enjoy the same tax and other
SEZ-related incentives it had at the old office.  The new office will now
house the Chinese JV Companys administrative, sales, marketing, and accounting
departments and will also allow the Company to make taggant and to enlarge the
ability to conduct research and development  RISK FACTORS:  RISKS RELATED TO
OPERATING A BUSINESS IN THE PEOPLE'S REPUBLIC OF CHINA ("PRC")  Joint ventures such as TPID Beijing are subject to
general risks of operating in the PRC.  These include risks associated with
the political and economic environment, foreign currency exchange and the legal
system in the PRC. The economy of the PRC differs significantly from the
economies of the western industrialized nations in such respects as structure,
level of development, growth rate, capital reinvestment, repatriation, resource
allocation, self-sufficiency, rate of inflation and balance of payment
positions, among others. The PRC government encourages substantial private
economic activities, but this has only been the case since the early 1990's.
Recent pronouncements in the PRC were enacted to facilitate foreign investment
in certain segments of Chinese industries which to date were primarily reserved
for Chinese-owned or Chinese state-owned enterprises. Moreover, recent
pronouncements were enacted to facilitate the ability of Western entities to
either hold a majority interest in a Chinese joint venture company or to form a
wholly-owned foreign-owned enterprise.  Given the recent nature of these
pronouncements, it remains to be seen how uniformly they will be enforced and
interpreted throughout China.  Further, despite the recent pronouncements,
when a western entity is involved in significant Chinese government-related
initiatives as the Company is, there remains advantages to forming a
Sino-Western joint venture to build the type of relationships needed to secure
and effectuate such government-related initiatives.  The Chinese economy has experienced significant growth in
the past several years, but such growth has been uneven among various sectors of
the economy and geographic regions.  On one hand, China's development and
growth have presented opportunities for the Company. The Company and its Chinese
joint venture company affiliate have been designated to help Chinese government
and industry address issues and challenges precipitated by such development and
growth. On the other hand, such development and growth may present risks to
entities operating a business in the PRC such as the Company and its Chinese
joint venture company affiliate and their contracts and other opportunities in
China.  Because of the challenges created by such growth, the PRC
government has indicated and taken certain steps to control such growth and
address such challenges. Actions by the PRC government to control inflation, for
example, have restrained economic expansion in the recent past across several
industrial sectors.  Similar and continued actions by the PRC government in
the future could have a significant adverse effect on domestic economic
condition in the PRC.  While there have been tremendous strides since its
admission into the WTO, the PRC's comprehensive system of laws is still
developing and evolving, and enforcement of existing laws at many different
government levels may be uncertain, sporadic, and not uniform. There have been
many laws and regulations promulgated in recent years dealing with economic
matters in general and foreign investment in general.  There is no guarantee that there will not be any changes
respecting Chinese government, economy, laws, and regulation which may adversely
affect the Company and its Chinese joint venture company affiliate.  There
is no guarantee that Chinese  Government may in the future enact
regulatory, legal, economic and political regulations or policies which would
adversely  affect the Company and its Chinese joint venture company
 affiliate and the contracts and opportunities in China.  The Company's Continued Efforts in
Non-China Markets  As stated above, the Company's immediate priority is to
focus on solidifying its foothold in China, implementing its China contracts,
especially the AQSIQ Contract, and generating revenues from its China contracts.
 Nonetheless, the Company continues its efforts to penetrate markets
outside China.  With respect to the United States, the Company has
completed its initial business plan and will target certain strategic industries
and applications where the Company has already successfully demonstrated and
tested in the United States or China, often with multinational companies based
in the United States which manufacture their goods in China. Those industries
include, among others, packaging, pharmaceutical/ biotech (blister packs and
bottles), cosmetics, toys and consumer products, pressurized tanks, and sports
and lottery tickets.    16  Its current strategy for
non-China markets outside the United States is to enter into strategic
relationships (whether in the form of a joint venture, licensing or other
arrangement) with leading companies in certain markets outside China, which have
developed their own technologies complimentary to the Company's, have
established significant distribution networks in those markets, and/or have
expressed an interest in distributing the Company's technologies in those
markets.  To that end, the Company has met with and received interest from
companies with significant networks in India, the Philippines, Malaysia,
Indonesia, Europe, the United States, Canada and the Middle East.  The
Company's strategy is to benefit from those companies' already established
distribution networks and operational capabilities in those markets, while
minimizing the resources the Company itself would need to distribute and operate
in those markets.  The Company has also met and generated significant
interest from a leading multinational company in the inspection, certification,
and testing field.  ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK.  Not Applicable ITEM 4T. CONTROLS AND
PROCEDURES  Our chief executive officer and chief financial officer
(the Certifying Officers) are responsible for establishing and maintaining
disclosure controls and procedures for our company and our subsidiary. Such
officers have concluded (based upon his evaluation of these controls and
procedures as of the end of the period covered by this report) that our
disclosure controls and procedures are effective to ensure that information
required to be disclosed by us in this report is accumulated and communicated to
management, including our principal executive officers as appropriate, to allow
timely decisions regarding required disclosure.  The Certifying Officers have also indicated that there
were no significant changes in our internal controls or other factors that could
significantly affect such controls subsequent to the date of his evaluation, and
there were no corrective actions with regard to significant deficiencies and
material weaknesses.  Our management, including the Certifying Officers, do not
expect that our disclosure controls or our internal controls will prevent all
error and all fraud. A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. In addition, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within a company have been detected. These inherent limitations include the
realities that judgments in decision-making can be faulty, and that breakdowns
can occur because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more
people or by management override of the control. The design of any systems of
controls also is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions. Because of
these inherent limitations in a cost-effective control system, misstatements due
to error or fraud may occur and not be detected.  CHANGES IN INTERNAL CONTROL OVER FINANCIAL
REPORTING  As required by Rule 13a-15(d), the Company's Chief
Executive Officer and Chief Accounting Officer, also conducted an evaluation of
the Companys internal controls over financial reporting to determine whether
any changes occurred during the fourth fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company's internal
control over financial reporting. During the preparation of the Company's
financial statements as of and for the year ended December 31, 2007, the Company
concluded that the then current system of disclosure controls and procedures
needed improvement, partly due to the transition to new management, facilities,
and auditors. As a result of this conclusion, the Company initiated changes in
internal control. It should be noted that any system of controls, however well
designed and operated, can provide only reasonable, and not absolute, assurance
that the objectives of the system will be met. In addition, the design of any
control system is based in part upon certain assumptions about the likelihood of
future events. Lack of Adequate Accounting Staff  Due to limitations in financial and management resources,
the Company does not have adequate accounting staff.  As a result, the
Company took steps to address its understaffed Finance and Accounting team to
correct this material weakness.  The Company engaged an independent
contractor with extensive CFO-level management and SEC reporting experience in
public companies.  The Company feels this addition to the Company's Finance
and Accounting team will improve the quality of future period financial
reporting.    17  PART II  ITEM 1.
    LEGAL PROCEEDINGS  On October 31, 2007, Daniel Fasano -- a shareholder and
creditor of the Company -- filed a pro sepetition for the statutory
appointment of a receiver in the Delaware Court of Chancery.  In his
petition, Mr. Fasano claims that the Company is insolvent based, in part, due to
in excess of $900,000 he claims the Company owes him that remains unpaid.
 In its January 4, 2008 Answer to the Petition, the Company denied and
continues to deny that it is insolvent and that the appointment of a receiver is
required.  The Company explained that Mr. Fasano is a party to certain
agreements pursuant to which the Company agreed to pay him certain monies that
have not yet been fully paid.  The Company went on to explain that Mr.
Fasano owes the Company in excess of $330,000, which amount exceeds the amount
which the Company believes Fasano is owed by the Company pursuant to the
aforementioned agreements.  Specifically, in exchange for acquiring from
the Company its former subsidiary, Seen OnTV, Inc., d/b/a, inter alia,
AsSeenOnTV.com (Seen on TV) and all of the assets of the Company associated
therewith, Fasano agreed in September 2005 to pay the Company a total of
$300,000 by paying the Company 25% of the net, after-tax income from the
operations of Seen on TV, d/b/a, inter alia, as AsSeenOnTV.com, which
amount would bear interest at 5.75% per year until such debt, plus accrued
interest, was paid in full. Fasano has never performed his obligations under
this contract.  On or about February 28, 2008, Daniel M. Fasano filed a
lawsuit, pro se, in Broward County, Florida against the Company for
damages in the amount of approximately $900,000.  The Company responded to
the lawsuit by filing a Motion to Dismiss on jurisdictional grounds.  The
Company believes the lawsuit is without merit and if Mr. Fasano pursues it, the
Company intends to vigorously defend it.  ITEM 6.    EXHIBITS AND
REPORTS ON FORM 8-K FILED DURING QUARTER ENDED MARCH  31, 2008  (a)
Exhibits  Number Title  10.1 Employment Agreement between True Product ID, Inc. and Wilson W.
Hendricks III dated March 4, 2008  10.2 March 4, 2008 Amendment to November 7, 2007 Employment Agreement
between True Product ID, Inc. and William R. Dunavant  31 Rule 13a-14(a) Certification  32 Section 1350 Certification   (b) Reports
on Form 8-K filed during Quarter Ended March 31, 2008  Form 8-K filed January 14, 2008,
announcing the appointment of KeKe Wang as president and his employment
agreement Form 8-K filed February 19, 2008 announcing the
resignation of Li Ning as director and the execution of the Red Hat
documents.  Form 8-K filed March 6, 2008, announcing the appointment
of Wilson W. Hendricks III as CEO and director and employment agreement and
resignation of William Dunavant as CEO and director and his appointment as
Managing Director-Global Strategic Initiatives and amendment to employment
agreement Form 8-K filed May 13, 2008,
announcing change in auditors.       18   SIGNATURES      In accordance with the
requirements of the Exchange Act, the Registrant has caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.   True Product ID, Inc.Date:  May 20, 2008
By:
/s/  Wilson W. Hendricks III
Wilson W. Hendricks IIIChief Executive Officer and Chief Accounting
Officer      19