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

                                    FORM 10-Q

(MARK ONE)
   ( X )     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
             SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended        July 31, 2006
                                                --------------------------------

                                  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 1-11601
                           -------

                                   iDNA, INC.
     ---------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                      Delaware                                 34-1816760
    ----------------------------------------------------   ---------------------
    (State or other jurisdiction of                         (I.R.S. Employer
    incorporation or organization)                         Identification No.)

    415 Madison Avenue, 7th Floor, New York, New York            10017
    ----------------------------------------------------   ---------------------
      (Address of principal executive offices)                 (Zip Code)

                   (212) 644-1400
    ----------------------------------------------------
    (Registrant's telephone number, including area code)

            555 Madison Avenue, 29th Floor, New York, New York, 10022
    ----------------------------------------------------------------------------
    (Former name, former address and former year, if changed since last report)

    Indicate by check mark whether the registrant (1) has filed all reports
    required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
    of 1934 during the preceding 12 months (or for such shorter period that the
    registrant was required to file such reports), and (2) has been subject to
    such filing requirements for the past 90 days.

                                Yes ( X )    No (    )

    Indicate by check mark whether the registrant is a large accelerated filer
    or a non-accelerated filer (See definition of "accelerated file" and "large
    accelerated filer" in Rule 12b-2 of the Exchange Act). (Check one):

    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 )

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

                Class                          Outstanding at September 18, 2006
    -----------------------------              ---------------------------------
    Common Stock, $0.05 par value                          9,088,364






                              iDNA, INC. AND SUBSIDIARIES

                                   TABLE OF CONTENTS


                                                                           PAGE
                                                                           ----
PART I.       FINANCIAL INFORMATION

Item 1.       Financial Statements

              Report of Independent Registered Public Accounting Firm        3

              Condensed Consolidated Balance Sheets as of
              July 31, 2006 and January 31, 2006                             4

              Condensed Consolidated Statements of Operations for the
              Three Months and Six Months Ended July 31, 2006 and 2005       5

              Condensed Consolidated Statement of Stockholders' Equity and
              Comprehensive Income (Loss) for the Six Months Ended
              July 31, 2006                                                  6

              Condensed Consolidated Statements of Cash Flows for the
              Six Months Ended July 31, 2006 and 2005                        7

              Notes to Condensed Consolidated Financial Statements           8


Item 2.       Management's Discussion and Analysis of
              Financial Condition and Results of Operations                 19

Item 3.       Quantitative and Qualitative Disclosures about
              Market Risk                                                   32

Item 4.       Controls and Procedures                                       32


PART II.      OTHER INFORMATION

Item 1.       Legal Proceedings                                             34
Item 1A.      Risk Factors                                                  34
Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds   34
Item 3.       Defaults Upon Senior Securities                               35
Item 4.       Submission of Matters to a Vote of Security Holders           35
Item 5.       Other Information                                             35
Item 6.       Exhibits                                                      35


Signatures                                                                  36

Certifications                                                              37


                                     - 2 -




                     PART I. FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS



REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders of
iDNA, Inc. and Subsidiaries
New York, New York


         We have reviewed the accompanying condensed consolidated balance sheet
of iDNA, Inc. and Subsidiaries as of July 31, 2006, the related condensed
consolidated statements of operations for each of the three-month and six-month
periods ended July 31, 2006 and 2005; the related condensed consolidated
statement of stockholders' equity and comprehensive loss for the six-month
period ended July 31, 2006 and the condensed consolidated statements of cash
flows for each of the six-month periods ended July 31, 2006 and 2005. These
financial statements are the responsibility of the Company's management.

         We conducted our reviews in accordance with standards of the Public
Company Accounting Oversight Board ("PCAOB"). A review of interim financial
information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with generally
accepted auditing standards, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.

         Based on our review, we are not aware of any material modifications
that should be made to the condensed consolidated financial statements for them
to be in conformity with accounting principles generally accepted in the United
States of America.

         We have previously audited, in accordance with standards of the PCAOB,
the consolidated balance sheet as of January 31, 2006, and the related
consolidated statements of operations, stockholders' equity and comprehensive
loss, and cash flows for the year then ended (not presented herein); and in our
report dated April 26, 2006, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the information set forth in
the accompanying condensed consolidated balance sheet as of January 31, 2006, is
fairly stated, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.



/s/ Grant Thornton LLP
Cleveland, Ohio
September 8, 2006






                                       3





                                                iDNA, INC. AND SUBSIDIARIES
                                           CONDENSED CONSOLIDATED BALANCE SHEETS
                                             (IN THOUSANDS, EXCEPT SHARE DATA)


                                                                                     July 31,                January 31,
                                                                                       2006                    2006
                                                                                   -----------               ----------
                                                                                   (unaudited)

                           ASSETS
Cash and cash equivalents                                                           $     501                $   1,144
Restricted cash (Note 1)                                                                  147                     --
Accounts receivable, net of allowance
  of $90 and $105, respectively (Note 1)                                                2,434                    2,045
Inventory (Note 1)                                                                        218                      247
Prepaid expenses                                                                          254                      277
Other current assets                                                                      128                       22
                                                                                    ---------                ---------
  Total current assets                                                                  3,682                    3,735

Property and equipment, net of accumulated
  depreciation of $2,370 and $2,029, respectively (Note 1)                              2,612                    2,919
Investment in AFC (Note 3)                                                              6,875                    7,822
Goodwill (Notes 1 and 2)                                                                2,676                    5,879
Other intangible assets, net of accumulated
  amortization of $1,789 and $1,430, respectively (Notes 1 and 2)                       6,886                    8,352
Other assets                                                                              145                      140
                                                                                    ---------                ---------
                                                                                    $  22,876                $  28,847
                                                                                    =========                =========

            LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current maturities of long term obligations (Note 4)                                $     626                $   1,111
Accounts payable                                                                        1,517                    1,463
Accrued income taxes                                                                      326                      358
Deferred revenue (Note 1)                                                               1,288                      891
Due to former OTI Members                                                                --                        530
Self-insurance claims (Note 5)                                                            235                      235
Other liabilities                                                                       1,228                    1,746
                                                                                    ---------                ---------
  Total current liabilities                                                             5,220                    6,334

Long term obligations (Note 4)                                                         11,391                   10,116
Convertible promissory note (Note 4)                                                    2,825                    2,825
                                                                                    ---------                ---------
                                                                                       19,436                   19,275
                                                                                    ---------                ---------
COMMITMENTS AND CONTINGENCIES (Note 5)                                                   --                       --

STOCKHOLDERS' EQUITY
Preferred stock                                                                          --                       --
Common stock - $.05 par value,
  authorized 50,000,000 shares, issued
  39,949,589 and 39,949,589 shares, respectively                                        1,997                    1,997
Additional paid-in capital                                                            174,586                  174,479
Retained deficit                                                                     (150,323)                (144,034)
Deferred compensation                                                                     (53)                     (65)
Treasury stock, at cost, 30,861,225 and 30,913,225
  shares, respectively                                                                (22,767)                 (22,805)
                                                                                    ---------                ---------
  Total stockholders' equity                                                            3,440                    9,572
                                                                                    ---------                ---------
                                                                                    $  22,876                $  28,847
                                                                                    =========                =========



     See accompanying notes to condensed consolidated financial statements.


                                       4





                           iDNA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)



                                             Three Months Ended     Six Months Ended
                                                  July 31,              July 31,
                                             ------------------    ------------------
                                              2006       2005       2006       2005
                                             -------    -------    -------    -------

Service revenues (Note 1)                    $ 3,538    $ 1,632    $ 6,970    $ 4,496
Cost of service revenues                       2,041      1,268      4,375      2,765
                                             -------    -------    -------    -------
  Gross profit                                 1,497        364      2,595      1,731

Selling, general and administrative            2,777      2,109      4,915      3,836
Impairment charge (Note 1)                     4,482       --        4,482       --
                                             -------    -------    -------    -------

  Loss from operations                        (5,762)    (1,745)    (6,802)    (2,105)

Other income (expense):
  Income from AFC investment (Note 3)            192         58        260        216
  Interest income                                  3         31          6         35
  Interest expense                              (189)      (158)      (363)      (323)
  Interest expense abatement (Note 4)            631       --          631       --
  Other income - net (Note 6)                   --        1,897       --        1,897
                                             -------    -------    -------    -------

  Income (loss) from continuing operations
     before income taxes                      (5,125)        83     (6,268)      (280)

Provision for income taxes                       (12)        (4)       (23)       (15)
                                             -------    -------    -------    -------

  Income (loss) from continuing operations    (5,137)        79     (6,291)      (295)

Income from discontinued
  operations, net of tax                           1         14          2         16
                                             -------    -------    -------    -------

  Net income (loss)                          $(5,136)   $    93    $(6,289)   $  (279)
                                             =======    =======    =======    =======

Basic and diluted income (loss) per share
  Continuing operations                      $  (.56)   $   .01    $  (.69)   $  (.03)
  Discontinued operations                       --         --         --         --
                                             -------    -------    -------    -------
     Net income (loss) per share             $  (.56)   $   .01    $  (.69)   $  (.03)
                                             =======    =======    =======    =======

Weighted average number
   of shares outstanding
   Basic and diluted                           9,081      9,457      9,059      9,766
                                             =======    =======    =======    =======






     See accompanying notes to condensed consolidated financial statements.



                                       5




                           iDNA, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                             AND COMPREHENSIVE LOSS
                         SIX MONTHS ENDED JULY 31, 2006
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (UNAUDITED)



                        Preferred Stock        Common Stock
                        ---------------- -------------------- Additional                          Deferred            Comprehensive
                                  Par                   Par     Paid-In    Retained   Treasury  Compensation             Income
                        Shares   Value     Shares      Value    Capital    Deficit     Stock       Expense    Total      (Loss)
                        -------  ------- -----------  ------- ---------- ----------- ---------- ------------ -------- -----------

Balance at
January 31, 2006             -      $ -   39,949,589  $ 1,997  $ 174,479 $ (144,034) $ (22,805)       $ (65) $ 9,572

Net loss                                                                     (6,289)                          (6,289)   $ (6,289)
Share-based compensation                                              99                                          99
  expense
Treasury stock issued                                                  8                    38                    46
Deferred compensation
   expense                                                                                               12       12
                        -------  ------- -----------  ------- ---------- ----------- ---------- ------------ -------- -----------
Comprehensive income                                                                                                  $ (6,289)
                                                                                                                      ===========
Balance at
 July 31, 2006               -      $ -   39,949,589  $ 1,997  $ 174,586 $ (150,323) $ (22,767)       $ (53) $ 3,440
                        =======  ======= ===========  ======= ========== =========== ========== ============ ========








     See accompanying notes to condensed consolidated financial statements.



                                       6





                           iDNA, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)


                                                                      Six Months Ended
                                                                          July 31,
                                                                     ------------------
                                                                       2006       2005
                                                                     -------    -------

Cash flows from operating activities
  Net loss                                                           $(6,289)   $  (279)
  Adjustments to reconcile net loss to net cash provided by
    (used in) operating activities:
    Depreciation and amortization                                        796        679
    Impairment charge                                                  4,482       --
    Income from AFC investment                                          (260)      (216)
    Share-based compensation expense                                     140       --
    Stock issued as compensation for services rendered                     5         33
    Fair value of Eligible Shareholder warrants                         --           88
    Amortization of deferred compensation expense                         12         12

  Changes in operating assets and liabilities, net of acquisition:
    Accounts receivable                                                 (389)       970
    Income tax refundable                                               --          826
    Accrued income tax                                                   (32)        11
    Accounts payable                                                      54       (483)
    Deferred revenue                                                     396        665
    Other operating assets and liabilities, net                         (577)      (319)
                                                                     -------    -------
      Net cash provided by (used in) operating activities             (1,662)     1,987
                                                                     -------    -------

Cash flows from investing activities:
  Proceeds from AFC distributions                                      1,207        208
  Purchase of letter of credit, increase in restricted cash             (147)      --
  Purchase of property and equipment                                    (302)      (142)
                                                                     -------    -------
      Net cash provided by investing activities                          758         66
                                                                     -------    -------

Cash flows from financing activities:
  Proceeds from issuance of promissory note                            1,000       --
  Payments to retire due to former OTI Members                          (530)      --
  Payments to acquire treasury stock                                    --       (1,052)
  Payments of long term debt                                            (209)      (456)
                                                                     -------    -------
      Net cash provided by (used in) financing activities                261     (1,508)
                                                                     -------    -------

  Increase (decrease) in cash and cash equivalents from operations      (643)       545
  Cash and cash equivalents at beginning of period                     1,144        471
                                                                     -------    -------
  Cash and cash equivalents at end of period                         $   501    $ 1,016
                                                                     =======    =======

Supplemental disclosures of cash flow information:
  Interest paid                                                      $    39    $   479
                                                                     =======    =======
  Income taxes paid                                                  $    55    $  --
                                                                     =======    =======



      See accompanying notes to condensed consolidated financial statements



                                       7




                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

General
-------

           The accompanying unaudited condensed consolidated financial
statements include the accounts of iDNA, Inc. and Subsidiaries ("iDNA"). iDNA is
a multi-dimensional corporate and institutional strategic communications,
technology and entertainment company. iDNA specializes in the full service
design, creative development, production, post production editing and
transmission, via broadcast satellite videoconferencing, webcasting and
traditional on-site presentations of corporate and institutional strategic
communication, education and training video and other services for use at
meetings, events, symposiums and seminars. iDNA, through its custom wireless
communication technology and proprietary software, also facilitates client
audience interaction, participation and polling to collect, exchange and/or
analyze data and information in real-time during a meeting or event. iDNA's
wireless communication services are available as a turn-key service provided by
iDNA during a scheduled meeting or event or alternatively, a client can purchase
from iDNA the required electronic components and related proprietary software to
administrate its needs independently. Additionally, iDNA, through its investment
in the Angelika Film Center LLC ("AFC"), operates in the movie exhibition
industry (see Note 3).

         The financial statements are unaudited but in the opinion of
management, reflect all adjustments (consisting only of normal recurring
accruals) necessary for a fair presentation of iDNA's consolidated financial
position, results of operations, stockholders' equity and comprehensive loss,
and cash flows for the periods presented.

         The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial statements and with the rules of the Securities and
Exchange Commission applicable to interim financial statements and therefore do
not include all disclosures that might normally be required for financial
statements prepared in accordance with generally accepted accounting principles.
The accompanying unaudited condensed consolidated financial statements should be
read in conjunction with iDNA's consolidated financial statements, including the
notes thereto, appearing in iDNA's Annual Report on Form 10-K for the year ended
January 31, 2006. The results of operations for the three months and six months
ended July 31, 2006 are not necessarily indicative of the operating results for
the full year.

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

         iDNA uses a January 31 year-end for financial reporting purposes.
References herein to the fiscal year ended January 31, 2007 shall be the term
"Fiscal 2007" and references to other "Fiscal" years shall mean the year, that
ended on January 31 of the year indicated. The term the "Company" or "iDNA" as
used herein refers to iDNA, Inc. together with its consolidated subsidiaries
unless the context otherwise requires.




                                       8



                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Service Revenues
----------------

         iDNA's service revenues are earned within short time periods, generally
less than one week. iDNA recognizes revenue from video production, video
editing, meeting services and broadcast satellite or webcast services when the
video is complete and delivered or all technical services have been rendered.
Deposits and other prepayments are recorded as deferred revenue until revenue is
recognized. iDNA does not have licensing or other arrangements that result in
additional revenues following the delivery of the video or a broadcast. Costs
accumulated in the production of the video, meeting services or broadcasts are
deferred until the sale and delivery are complete. Deferred production costs of
$128,000 and $22,000, respectively, are reported as other current assets at July
31, 2006 and January 31, 2006.

         iDNA recognizes revenue from the sale of electronic equipment,
proprietary software and related components at the time of shipment. Deposits
and other prepayments received prior to shipment are recorded as deferred
revenue until the electronic equipment and related software are shipped. iDNA
has licensing and technical support arrangements for future software
enhancements and upgrades for technical support for previously delivered
electronic equipment. Revenues derived from licensing and technical support are
recognized over the term of the licensing and technical support period, which
generally are sold in increments of one year of coverage. For the three months
ended July 31, 2006 and 2005, electronic equipment sales were $518,000 and
$254,000, respectively. For the six months ended July 31, 2006 and 2005,
electronic equipment sales were $1.3 million and $375,000, respectively.

         iDNA recognizes revenue from website design and development when the
customer accepts the completed project. Deposits and other prepayments are
recorded as deferred revenue until revenue is recognized. These contracts are
generally limited to the design and development of websites and the presentation
of site library content developed by iDNA. Clients also have the option to
engage iDNA to maintain and upgrade their websites. These projects are separate
from the website development and design engagements, and the related revenue is
recognized over the term of the agreement, which is generally up to one year.

         iDNA recognizes revenue from developing and maintaining websites
pursuant to the requirements of Statement of Position No. 97-2, "Software
Revenue Recognition" ("SOP 97-2"), as amended by Statement of Position No. 98-9,
"Software Revenue Recognition with Respect to Certain Arrangements." Under SOP
97-2, revenue attributable to an element in a customer arrangement is recognized
when persuasive evidence of an arrangement exists and delivery has occurred,
provided the fee is fixed or determinable, collectibility is probable and the
arrangement does not require significant customization of the software. If at
the outset of the customer arrangement, iDNA determines that the arrangement fee
is not fixed or determinable or that collectibility is not probable, iDNA defers
the revenue and recognizes the revenue when the arrangement fee becomes due and
payable or, when collectibility is uncertain, as cash is collected.

Cost of Service Revenues
------------------------

         Cost of revenues consists of direct expenses specifically associated
with client service revenues. The cost of revenues includes direct salaries and
benefits, purchased products or services for clients, web hosting, support
services, shipping and delivery costs.



                                       9


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Research and Development Costs
------------------------------

         As a consequence of the acquisition of Option Technologies Interactive,
LLC ("OTI") on November 18, 2005, iDNA incurred certain research and development
costs. Research and development costs are comprised principally of personnel
costs incurred for enhancements, modifications, updates, service and support
expenditures for iDNA proprietary software. Research and development costs are
charged to operations as incurred and are included as a component of costs of
service revenues. iDNA charged $118,000 and $198,000, respectively, to research
and development expense for the three months and six months ended July 31, 2006.

Restricted Cash
---------------

      In June 2006, iDNA obtained a letter of credit in an amount of $147,000
that was issued in favor of the landlord of iDNA's new New York headquarters.
The letter of credit is collateralized by an interest bearing money market
account in the same amount. Therefore, $147,000 is classified as restricted cash
as of July 31, 2006.

Accounts Receivable
-------------------

         Accounts receivable are recorded at the invoiced amount and do not bear
interest. The allowance for doubtful accounts is iDNA's best estimate of the
amount of probable credit losses in iDNA's existing accounts receivable. iDNA
determines the allowance based on analysis of historical bad debts, client
concentrations, client credit-worthiness and current economic trends. iDNA
reviews its allowance for doubtful accounts quarterly. Past-due balances over 90
days and specified other balances are reviewed individually for collectibility.
All other balances are reviewed on an aggregate basis. Account balances are
written off against the allowance after all means of collection have been
exhausted and the potential for recovery is considered remote. iDNA does not
have any off-balance sheet credit exposure related to its clients.

Inventory
---------

         Inventory is comprised principally of electronic equipment and related
components held for sale to clients. Inventory is valued at the lower of cost or
market using the first-in - first-out inventory cost method.

Property and Equipment
----------------------

         Property and equipment are stated at cost. Depreciation is computed
using the straight-line method over the estimated useful lives of the assets,
which range from eighteen months to ten years. Leasehold improvements are
amortized over the shorter of the lease term or the estimated useful lives of
the related improvements.

Goodwill and Other Intangible Assets
------------------------------------

         Intangible assets with indefinite lives, including goodwill, are not
subject to amortization but are subject to testing for impairment at least
annually or whenever there is an impairment indicator.

         In its acquisition of OTI on November 18, 2005 (see Note 2), iDNA
acquired certain intangible assets including client relationships and lists and
a non-competition agreement with an aggregate fair value of $1.1 million. The
useful lives of these intangibles are estimated to be 5 to 10 years. The
intangible assets with definite useful lives are amortized using the
straight-line method over those lives. For the three months and six months ended
July 31, 2006, iDNA charged to operations $63,000 and $76,000, respectively, for
the amortization of these intangible assets. iDNA engaged an independent
valuation firm to assist in the final determination of the fair value of the
acquired assets of OTI in order to determine the appropriate purchase accounting
allocation.


                                       10


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

         In its acquisition of The Campus Group (as defined below), iDNA
acquired certain intangible assets including client relationships and lists and
a non-competition agreement with an initial aggregate fair value of $9.5
million. The useful lives of these intangibles are estimated to be 17 years and
9 years, respectively. The intangible assets with definite useful lives are
amortized using the straight-line method over those lives. For each of the three
months ended July 31, 2006 and 2005, iDNA charged to operations $142,000 for the
amortization of these intangible assets. For each of the six months ended July
31, 2006 and 2005, iDNA charged to operations $284,000 for the amortization of
these intangible assets.

Impairment of Long-Lived Assets
-------------------------------

         iDNA reviews the carrying value of its long-lived assets (other than
goodwill) whenever events or changes in circumstances indicate that its carrying
amount may not be recoverable. If indicators of impairment exist, iDNA would
determine whether the estimated undiscounted sum of the future cash flows of
such assets is less than its carrying amount. If less, an impairment loss would
be recognized based on the excess of the carrying amount of such assets over
their respective fair values. The determination of fair value is based on quoted
market prices in active markets, if available, or independent appraisals; sales
price negotiations; or projected future cash flows discounted at a rate
determined by management to be commensurate with iDNA's business risk. The
estimation of fair value utilizing discounted forecasted cash flows includes
significant judgments regarding assumptions of revenue, operating and marketing
costs; selling and administrative expenses; interest rates; property and
equipment additions and retirements; industry competition; and general economic
and business conditions, among other factors.

         iDNA conducted its Fiscal 2006 annual analysis as of January 31,
2006. iDNA estimated the fair value of its reporting units as compared to their
estimated book value. If the estimated fair value of the reporting unit is less
than the estimated book value, then an impairment is deemed to have occurred. In
estimating the fair value of each reporting unit, iDNA used primarily the income
approach (which utilizes forecasted discounted cash flows to estimate the fair
value of the reporting unit) and the market approach (which estimates fair value
based on market prices of comparable companies). iDNA concluded that as of
January 31, 2006 there were no impairments of its long-lived assets or goodwill
based upon the then forecasted discounted cash flows. However, during the second
quarter of Fiscal 2007, the results of the operations of the Campus Group
Companies, Inc. ("CGC") reporting unit raised questions as to whether
projections used at the last valuation date were still valid. Accordingly,
management performed additional impairment tests as of July 31, 2006 for CGC and
determined that impairment charges were required as of July 31, 2006. Based upon
iDNA's preliminary assessment, for the three months and six months ended July
31, 206, iDNA charged to operations $4.5 million for the estimated impairment of
CGC's goodwill of $2.6 million, and for CGC's other intangible assets of $1.9
million. iDNA will continue to monitor and may supplement and refine its
impairment analysis further prior to iDNA's fiscal year end. Based upon the
results of this supplemental impairment analysis, if warranted, iDNA will record
an additional adjustment to the value its long-lived assets and goodwill.

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

         Deferred income taxes are provided for all temporary differences
between the book and tax basis of assets and liabilities. Deferred income taxes
are adjusted to reflect new tax rates when they are enacted into law. The effect
on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date. A valuation allowance is
recognized if it is anticipated that some or all of a net deferred tax asset may
not be realized.

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

         Certain Fiscal 2006 amounts have been reclassified to conform with
Fiscal 2007 presentations.




                                       11


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Revised Consolidated Statements of Cash Flow
--------------------------------------------\

         In Fiscal 2007, iDNA has separately disclosed the operating, investing
and financing portions of cash flows attributable to its discontinued
operations, which in prior periods were reported on a combined basis as a single
amount. The principal cash flow components of iDNA's discontinued operations are
changes in connection with iDNA's self-insurance claims.

New Accounting Pronouncements
-----------------------------

         In December 2004 the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 123R (revised 2004), Share-Based Payment, which replaces
SFAS No. 123, Accounting for Stock-Based Compensation, and supersedes APB
Opinion No. 25, Accounting for Stock Issued to Employees. SFAS No. 123R requires
all share-based payments to employees, including grants of employee stock
options, to be recognized in the financial statements based on their fair values
beginning with the first interim or annual period after December 15, 2005. The
pro forma disclosures previously permitted under SFAS 123 no longer will be an
alternative to financial statement recognition. iDNA adopted SFAS 123R at the
beginning of Fiscal 2007 (effective February 1, 2006). Under SFAS No. 123R, iDNA
must determine the appropriate fair value model to be used for valuing
share-based payments, the amortization method for compensation cost and the
transition method to be used at date of adoption. iDNA elected the prospective
method of adopting SFAS No. 123R which requires that compensation expense be
recorded for all unvested stock options and restricted stock at the beginning of
the first quarter of adoption. Accordingly, iDNA has recorded charges to
operations for stock-based compensation expense for the three months and six
months ended July 31, 2006 of $72,000 and $145,000, respectively.

         In May 2005, FASB issued Statement No. 154, Accounting Changes and
Error Corrections ("SFAS 154"). SFAS 154 replaces APB No. 20, Accounting
Changes, and SFAS 3, Reporting Accounting Changes in Interim Financial
Statements, and establishes retrospective application as the required method for
reporting a change in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. SFAS 154 applies to all voluntary changes in accounting principles and
to changes required by an accounting pronouncement in the instance that the
pronouncement does not include specific transition provisions. SFAS 154 is
effective for accounting changes and corrections of errors made in fiscal years
beginning after December 15, 2005. iDNA adoption of SFAS 154 did not have a
material impact on iDNA's reported consolidated financial position or results of
operations.

         In June 2006, the FASB issued FASB Interpretation No. 48, Accounting
for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109
(FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes
recognized in an entity's financial statements and provides guidance on the
recognition, de-recognition and measurement of benefits related to an entity's
uncertain tax positions. FIN 48 is effective for us beginning February 1, 2007.
iDNA is currently evaluating the impact of its adoption on iDNA's financial
position and results of operations.




                                       12


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 2 - OPTION TECHNOLOGIES INTERACTIVE, LLC ACQUISITION

         On November 18, 2005, iDNA consummated the acquisition of 100% of the
membership interests of OTI from Flexner Wheatley & Associates ("FWA") and
MeetingNet Interactive, Inc. ("MeetingNet"). OTI is a technology company
providing interactive software and hardware systems and services that facilitate
audience interaction, participation and polling to collect exchange and/or
analyze data and information in real-time for use in live events, training and
education satellite videoconferencing and corporate or institutional meeting
services. Prior to the acquisition of OTI, iDNA's subsidiary Audience Response
Systems, Inc. ("ARS") also provided similar services. With the acquisition of
OTI, iDNA (i) gained access to important new clients, industries and market
segments, (ii) acquired a fully developed and integrated propriety software that
is an "add-in" application module with Microsoft(R) Office PowerPoint(R) which,
among other attributes, allows clients to develop and self-administrate audience
interaction programs at smaller and other venues not previously served by iDNA
and (iii) expanded its solutions-based communication product offering to meet
dynamic demands of current and potential clients. The significant value in the
acquisition was principally its (i) industry position, (ii) assembled workforce,
(iii) proprietary software, (iv) trademarks and (iv) client lists and client
relations.

         In exchange for the acquisition of all of the outstanding membership
interests of OTI, iDNA (i) paid $744,000 at closing, (ii) issued to FWA and
MeetingNet promissory notes in an aggregate principal amount of $1.5 million
("OTI Promissory Notes") and (iii) issued an aggregate of 496,250 shares of
iDNA's common stock, $0.05 par value ("Common Stock") to FWA and MeetingNet
valued at $258,000, representing the fair value of iDNA's Common Stock at the
date of the acquisition. For financial reporting purposes, the transaction was
treated as a purchase with an effective date of November 18, 2005. The purchase
price is subject to an upward and downward adjustment not to exceed $412,500
based upon OTI's meeting, or failing to meet, certain minimum financial
performance criterion for Fiscal 2007 and Fiscal 2008.

         In connection with the OTI acquisition, Mark Fite entered into an
employment agreement with OTI under which he has agreed to serve as President of
OTI for an initial term of three years. Under the terms of the employment
agreement, Mr. Fite will be entitled to base compensation of $150,000 per year,
a grant of stock options to acquire 60,000 shares of iDNA's Common Stock,
subject to vesting in three equal annual installments over the term of the
employment agreement and a performance bonus based upon the operating results of
OTI. iDNA also granted to all active OTI employees stock options to acquire an
aggregate of 66,500 shares of iDNA's Common Stock, subject to vesting over a
three year period and subject to OTI's meeting certain minimum financial
performance criterion for Fiscal 2007 and Fiscal 2008. The exercise price for
the stock options granted to Mr. Fite and the OTI employees was set at the fair
value of iDNA's Common Stock as of the date of the OTI acquisition, $0.52 per
share.




                                       13


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 2 - OPTION TECHNOLOGIES INTERACTIVE, LLC ACQUISITION - CONTINUED

         The components and final allocation of the purchase price were as
follows (in thousands):

                                                          Amount
                                                        ----------
Components of purchase price:
      Cash paid at closing                              $     744
      Promissory notes issued at closing                    1,489
      Common stock issued at closing                          258
      Transaction costs                                       268
                                                        ----------
           Total purchase price                         $   2,759
                                                        ==========

Allocation of purchase price:
      Current assets                                    $   1,303
      Property and equipment                                1,056
      Goodwill arising in the acquisition                     351
      Other intangible assets                               1,080
                                                        ----------
                                                            3,790
      Accounts payable and accrued expenses                  (497)
      Due to former OTI Members                              (534)
                                                        ----------
      Net assets acquired                               $   2,759
                                                        ==========

         As a consequence of the OTI acquisition and in accordance with SFAS No.
141 Business Combinations, iDNA recorded goodwill and other intangible assets of
$351,000 and $1.1 million, respectively. iDNA has estimated lives for the other
intangible assets of 5 to 10 years. For the three months and six months ended
July 31, 2006, iDNA charged to operations $63,000 and $76,000, respectively, for
the amortization of these intangibles. iDNA engaged the valuation services of an
independent third party appraisal company to assist in the final determination
of the fair value of tangible and intangible assets acquired in accordance with
SFAS No. 141, Business Combinations. The final valuation analysis was completed
prior to July 31, 2006 and fair value adjustments to the purchase price
allocation have been recorded.

         iDNA does not expect amortization of goodwill or other intangibles, if
any, to be deductible for income tax purposes.




                                       14


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 2 - OPTION TECHNOLOGIES INTERACTIVE, LLC ACQUISITION - CONTINUED

         The following sets forth the pro forma condensed results of operations
of iDNA and OTI for the six months ended July 31, 2005 as if the acquisitions
were consummated on February 1, 2005. Prior to OTI's acquisition, OTI used a
December 31 year end, and accordingly the pro forma results have been prepared
by combining the historical results for iDNA for the six months ended July 31
with the historical results of OTI for the six months ended June 30. These pro
forma results have been prepared for illustrative purposes only and do not
purport to be indicative of what would have occurred had the acquisitions been
in effect for the periods indicated or the results that may occur in the future.
Pro forma revenues, net loss and loss per share are as follows (in thousands):

                                                         Six Months Ended
                                                          July 31, 2005
                                                          -------------
Service revenues                                           $   7,934
                                                           =========
Net income from continuing operations                      $     255
                                                           =========
Income per share from continuing operations                $    0.03
                                                           =========

NOTE 3 - INVESTMENT IN AFC

         On April 5, 2000, iDNA, through its wholly owned subsidiary National
Cinemas, Inc., acquired a 50% membership interest in AFC. AFC is the owner and
operator of the Angelika Film Center, which is a multiplex cinema and cafe
complex in the Soho District of Manhattan in New York City.

         AFC is currently owned 50% by iDNA and 50% by Reading International,
Inc. ("Reading"). The articles and bylaws of AFC provide that for all matters
subject to a vote of the members, a majority is required, except that in the
event of a tie vote, the Chairman of Reading shall cast the deciding vote.

         iDNA uses the equity method to account for its investment in AFC.
iDNA's initial investment exceeded its share of AFC's net assets and that
portion of the investment balance is accounted for in a manner similar to
goodwill. AFC uses a December 31 year-end for financial reporting purposes. iDNA
reports on a January 31 year-end, and for its fiscal quarters ending April 30,
July 31, October 31 and January 31 records its pro-rata share of AFC's earnings
on the basis of AFC's fiscal quarters ending March 31, June 30, September 30 and
December 31, respectively. For the three months ended July 31, 2006 and 2005,
iDNA recorded income of $192,000 and $58,000, respectively, representing its
share of AFC's net income. For the six months ended July 31, 2006 and 2005, iDNA
recorded income of $260,000 and $216,000, respectively, representing its share
of AFC's net income.




                                       15


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 3 - INVESTMENT IN AFC - CONTINUED

         Summarized income statement data for AFC for the three months and six
months ended June 30, 2006 and 2005, respectively, is as follows (in thousands):

                                         Three Months Ended  Six Months Ended
                                               June 30,          June 30,
                                         ------------------  ----------------
                                            2006     2005     2006     2005
                                           ------   ------   ------   ------
Revenues                                   $1,464   $1,141   $2,929   $2,552

Film rental                                   296      228      813      534
Operating costs                               571      566    1,174    1,115
Depreciation and amortization                 171      189      337      387
General and administrative expenses            43       42       85       84
                                           ------   ------   ------   ------
                                            1,081    1,025    2,409    2,120
                                           ------   ------   ------   ------
Net income                                 $  383   $  116   $  520   $  432
                                           ======   ======   ======   ======
iDNA's proportionate share of net income   $  192   $   58   $  260   $  216
                                           ======   ======   ======   ======

         As a consequence of iDNA's acquisition of OTI effective November 18,
2005, iDNA issued to FWA and MeetingNet the OTI Promissory Notes in an aggregate
principal amount of $1.5 million. The OTI Promissory Notes bear interest at 5%
per annum and are repayable in quarterly installments according to a formula
based upon the future cash flows realized from OTI's operations. The OTI
Promissory Notes are secured by the membership interests of OTI. At July 31,
2006, iDNA had outstanding obligations under the terms of the OTI Promissory
Notes of $1.4 million and accrued interest of $18,000.

         As a consequence of iDNA's acquisition of The Campus Group effective
July 31, 2003, iDNA issued to Mr. Steve Campus and certain family trusts
promissory notes of $9.9 million and a convertible promissory note of $2.8
million (collectively, the "Campus Notes"). Of the $9.9 million in promissory
notes issued by iDNA, $6.6 million of the promissory notes ("Base Notes") bear
interest at 5% per annum and are repayable in quarterly installments according
to a formula based upon the future cash flows realized from The Campus Group
over a period not to exceed seven years. The remaining $3.3 million in
promissory notes ("Trailing Notes") issued by iDNA bear interest at 5% per annum
and are repayable in quarterly installments, commencing upon the retirement of
the Base Notes, according to a formula based upon the future cash flows realized
from The Campus Group over a period not to exceed three years subsequent to the
retirement of the Base Notes. The $2.8 million convertible promissory note
(Convertible Note") (i) bears interest at 5% per annum, payable quarterly in
cash or accumulating as principal at the election of iDNA, (ii) requires
principal payments to commence upon the retirement of the Base Notes and
Trailing Notes and is then repayable in quarterly installments according to a
formula based upon the future cash flows realized from The Campus Group over a
period not to exceed three years and (iii) is convertible at the option of the
holder into shares of iDNA's Common Stock at a base conversion price of $1.50
per share. The holder may not convert the Convertible Note into iDNA's Common
Stock prior to repayment of the Base Notes and Trailing Notes. The promissory
notes are secured by the capital stock of the companies comprising The Campus
Group. At July 31, 2006, iDNA had outstanding obligations under the terms of the
Base Notes, Trailing Notes and the Convertible Note of $6.0 million, $3.3
million and $2.8 million, respectively, and accrued interest of $156,000.


                                       16


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 4 - CURRENT AND LONG TERM OBLIGATIONS - CONTINUED

         For the trailing twelve month period ended July 31, 2006, The Campus
Group's financial performance fell below certain minimum operating cash flow
thresholds established pursuant to the terms of the Campus Notes. As a
consequence, the interest expense incurred by iDNA during the twelve month
period ended July 31, 2006 was abated. As a consequence of the interest
abatement, iDNA realized a gain from the abatement of interest on the Campus
Notes of $631,000 for the three months and the six months ended July 31, 2006.
Prospectively, interest may accrue pursuant to the terms of the Campus Notes;
however, iDNA is not obligated to pay any principal or interest on the Campus
Notes until October 31, 2007.

         As a consequence of iDNA's acquisition of OMI Business Communications,
Inc. ("OMI") effective April 1, 2003, iDNA assumed a $402,000 loan guaranteed by
the U.S. Small Business Administration (the "SBA Loan"). At July 31, 2006, the
remaining balance of the SBA Loan of $346,000 is repayable in monthly
installments of $3,309 with the last payment due in April 2017. The SBA Loan
bears interest at the rate of 4% per annum. The SBA Loan is collateralized by
substantially all of OMI's assets and the personal guarantee of Mr. Thompson.

         On July 20, 2006, iDNA consummated a Loan and Security Agreement with a
lender and issued a Promissory Note ("Note") of $1.0 million. Pursuant to the
terms of the Note, (i) the outstanding principal of the Note is due February 15,
2008, (ii) iDNA is required to pay interest only, monthly and in arrears, during
the term and (iii) the Note bears interest at fourteen percent per annum. iDNA
may prepay the Note at any time and without a prepayment penalty. The Note is
secured by a perfected first priority security interest in and to, and a lien on
and pledge of iDNA's right, title and interest in and to virtually all of iDNA's
assets not previously pledged pursuant to other long term obligations. At July
31, 2006, the balance of the Note was $1.0 million.

         The components of long term obligations at July 31, 2006 are as follows
(in thousands):

                                                 Amounts
                                                 --------
 SBA loan                                        $    346
 Promissory note                                    1,000
 OTI promissory notes                               1,350
 Base promissory notes                              6,046
 Trailing promissory notes                          3,275
 Convertible note payable                           2,825
                                                 ---------
                                                   14,842
 Less current maturities                             (626)
                                                 ---------
 Long term obligations and
    convertible note payable                     $ 14,216
                                                 =========



                                       17


                           iDNA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 4 - CURRENT AND LONG TERM OBLIGATIONS - CONTINUED

         iDNA's current maturities and long term obligations at July 31, 2006
are as follows (in thousands):

                                                 Amounts
                                                 --------
 2007                                            $    626
 2008                                               2,101
 2009                                               1,337
 2010                                               1,084
 2011                                               1,332
 Thereafter                                         8,362
                                                 --------
                                                 $ 14,842
                                                 ========


NOTE 5 - COMMITMENTS AND CONTINGENCIES

Self-Insurance Reserves for Property Damage and Personal Injury Claims
----------------------------------------------------------------------
         iDNA, under the names Agency Rent-A-Car, Inc. ("ARAC"), Altra Auto
Rental and Automate Auto Rental, previously engaged in the rental of automobiles
on a short-term basis, principally to the insurance replacement market. In
Fiscal 1996, iDNA disposed of its rental fleet business through the sale of
certain assets and through certain leases to a national car rental company. All
liabilities related to the discontinued rental business, principally
self-insurance claims, were retained by iDNA.

         iDNA is subject to certain self-insurance claims and litigation
expenses relating to its discontinued automobile rental operations. iDNA
estimates the required self-insurance liability based upon specific
identification of the known matters subject to future claims, the nature of the
claim and the estimated costs to be incurred. These estimates include, but are
not limited to, iDNA's historical loss experience and projected loss factors.
The required self-insurance liability is subject to adjustment in the future
based upon changes in the nature of the remaining claims or the ultimate cost.
As a consequence of iDNA's sale of its automobile rental operations in 1995,
iDNA believes that all incurred claims have been reported to iDNA and that there
are no longer any incurred but not yet reported claims to be received by iDNA.
iDNA's self-insurance liability at both July 31, 2006 and January 31, 2006 was
$235,000.

Other Litigation
----------------
         In the normal course of its business, iDNA is periodically named as
defendant in legal proceedings. It is the policy of iDNA to vigorously defend
litigation and/or enter into settlements of claims where management deems
appropriate. In the opinion of management, the amount of ultimate liability with
respect to any current actions, if any, is unlikely to materially affect our
financial position, results of operations or liquidity.



                                       18




                                     ITEM 2.
                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

         iDNA, Inc. ("iDNA") began operations in 1969 and was incorporated in
Delaware in 1971. iDNA is a corporate and institutional strategic
communications, technology and entertainment company. iDNA specializes in the
full service design, creative development, production, post production editing
and transmission, via broadcast satellite videoconferencing, webcasting and
traditional on-site presentations of corporate and institution strategic
communication, education and training video and other services for use at
meetings, events, symposiums and seminars. iDNA, through its proprietary
software and custom wireless communication technology, also facilitates client
audience interaction, participation and polling to collect, exchange and/or
analyze and measure data and information in real-time during a meeting or event.
iDNA's interactive wireless communication services are available as a turn-key
service provided by iDNA during a scheduled meeting or event or alternatively, a
client can purchase from iDNA the required proprietary software and related
electronic components to independently administrate its needs. Additionally,
iDNA, through its investment in the Angelika Film Center LLC ("AFC"), operates
in the movie exhibition industry.

CRITICAL ACCOUNTING POLICIES

         iDNA's consolidated financial statements are prepared in accordance
with generally accepted accounting principles, which require iDNA to make
estimates and assumptions. Those estimates and assumptions affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses of iDNA. iDNA's significant
accounting policies are described in Note 1 of Notes to Condensed Consolidated
Financial Statements included under Item 1 of this Part I (hereinafter, the
"Notes"). However, certain accounting policies are deemed "critical", as they
require management's highest degree of judgment, estimates and assumptions.
These accounting estimates and disclosures have been discussed with the Audit
Committee of iDNA's Board of Directors. A discussion of iDNA's critical
accounting policies, the judgments and uncertainties affecting their application
and the likelihood that materially different amounts would be reported under
different conditions or using different assumptions are as follows:

         Service Revenues: iDNA's service revenues are earned within short time
periods, generally less than one week. iDNA recognizes revenue from video
production, video editing, meeting services and broadcast satellite or webcast
services when the video is complete and delivered or all technical services have
been rendered. Deposits and other prepayments are recorded as deferred revenue
until revenue is recognized. iDNA does not have licensing or other arrangements
that result in additional revenues following the delivery of the video or a
broadcast. Costs accumulated in the production of the video, meeting services or
broadcasts are deferred until the sale and delivery are complete. Deferred
production costs of $128,000 and $22,000, respectively, are reported as other
current assets at July 31, 2006 and January 31, 2006.



                                       19



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         iDNA recognizes revenue from the sale of electronic equipment,
proprietary software and related components at the time of shipment. Deposits
and other prepayments received prior to shipment are recorded as deferred
revenue until the electronic equipment and related software is shipped. iDNA has
licensing and technical support arrangements for future software enhancements
and upgrades for technical support for previously delivered electronic
equipment. Revenues derived from licensing and technical support are recognized
over the term of the licensing and technical support period, which generally are
sold in increments of one year of coverage. For the three months ended July 31,
2006 and 2005, electronic equipment sales were $518,000 and $254,000,
respectively. For the six months ended July 31, 2006 and 2005, electronic
equipment sales were $1.3 million and $375,000, respectively.

         iDNA recognizes revenue from website design and development when the
customer accepts the completed project. Deposits and other prepayments are
recorded as deferred revenue until revenue is recognized. These contracts are
generally limited to the design and development of websites and the presentation
of site library content developed by iDNA. Clients also have the option to
engage iDNA to maintain and upgrade their websites. These projects are separate
from the website development and design engagements, and the related revenue is
recognized over the term of the agreement, which is generally up to one year.

         iDNA recognizes revenue from developing and maintaining websites
pursuant to the requirements of Statement of Position No. 97-2, "Software
Revenue Recognition" ("SOP 97-2"), as amended by Statement of Position No. 98-9,
"Software Revenue Recognition with Respect to Certain Arrangements." Under SOP
97-2, revenue attributable to an element in a customer arrangement is recognized
when persuasive evidence of an arrangement exists and delivery has occurred,
provided the fee is fixed or determinable, collectibility is probable and the
arrangement does not require significant customization of the software. If at
the outset of the customer arrangement, iDNA determines that the arrangement fee
is not fixed or determinable or that collectibility is not probable, iDNA defers
the revenue and recognizes the revenue when the arrangement fee becomes due and
payable or, when collectibility is uncertain, as cash is collected.

         Cost of Service Revenue: Cost of revenues consists of direct expenses
specifically associated with client service revenues. The cost of revenues
includes direct salaries and benefits, purchased products or services for
clients, web hosting, support services, shipping and delivery costs.

         Accounts Receivable: iDNA extends credit to clients in the normal
course of business. iDNA continuously monitors collections and payments from
clients and maintains an allowance for doubtful accounts based upon historical
experience and any specific client collection issues that have been identified.
Since accounts receivable are concentrated in a relatively few number of
clients, a significant change in the liquidity or financial position of any of
these clients could have a material adverse impact on the collectibility of the
accounts receivable and future operating results. iDNA does not have any
off-balance sheet credit exposure related to its customers.



                                       20



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         Valuation of Long-lived Assets and Goodwill: iDNA reviews the carrying
value of its long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of these assets may not be fully
recoverable and it annually assesses whether goodwill has been impaired by
comparing the carrying amount of the goodwill to its fair value. When it is
determined that the carrying amount of long-lived assets or goodwill is
impaired, impairment is measured by comparing an asset's estimated fair value to
its carrying value. The determination of fair value is based on quoted market
prices in active markets, if available, or independent appraisals; sales price
negotiations; or projected future cash flows discounted at a rate determined by
management to be commensurate with iDNA's business risk. The estimation of fair
value utilizing discounted forecasted cash flows includes significant judgments
regarding assumptions of revenue, operating and marketing costs; selling and
administrative expenses; interest rates; property and equipment additions and
retirements; industry competition; and general economic and business conditions,
among other factors.

            iDNA conducted its Fiscal 2006 annual analysis as of January 31,
2006. iDNA estimated the fair value of its reporting units as compared to their
estimated book value. If the estimated fair value of the reporting unit is less
than the estimated book value, then an impairment is deemed to have occurred. In
estimating the fair value of each reporting unit, iDNA used primarily the income
approach (which utilizes forecasted discounted cash flows to estimate the fair
value of the reporting unit) and the market approach (which estimates fair value
based on market prices of comparable companies). iDNA concluded that as of
January 31, 2006 there were no impairments of its long-lived assets or goodwill
based upon the then forecasted discounted cash flows. However, during the second
quarter of Fiscal 2007, the results of operations of the Campus Group Companies,
Inc. ("CGC") reporting unit raised questions as to whether projections used at
the last valuation date were still valid. Accordingly, management performed
additional impairment tests as of July 31, 2006 for CGC and determined that
impairment charges were required as of July 31, 2006. Based upon iDNA's
preliminary assessment, for the three months and six months ended July 31, 206,
iDNA charged to operations $4.5 million for the estimated impairment of CGC's
goodwill of $2.6 million, and for CGC's other intangible assets of $1.9 million.
iDNA will continue to monitor and may supplement and refine its impairment
analysis further prior to iDNA's fiscal year end. Based upon the results of this
supplemental impairment analysis, if warranted, iDNA will record an additional
adjustment to the value its long-lived assets and goodwill.

         Self-Insurance Claims: iDNA maintained and continues to maintain
self-insurance for claims and associated litigation expenses relating to bodily
injury or property damage from accidents involving the vehicles rented to
customers by its discontinued automobile rental operations occurring in Fiscal
1996 and prior. iDNA was, when required by either governing state law or the
terms of its rental agreement, self-insured for the first $1.0 million per
occurrence, and for losses in excess of $5.0 million per occurrence, for bodily
injury and property damage resulting from accidents involving its rental
vehicles. iDNA was also self-insured, up to certain retained limits, for bodily
injury and property damage resulting from accidents involving iDNA vehicles
operated by employees within the scope of their employment.



                                       21



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         iDNA is subject to certain self-insurance claims and litigation
expenses relating to its discontinued automobile rental operations. iDNA
estimates the required self-insurance liability based upon specific
identification of the known matters subject to future claims, the nature of the
claim and the estimated costs to be incurred. These estimates include, but are
not limited to, iDNA's historical loss experience and projected loss factors.
The required self-insurance liability is subject to adjustment in the future
based upon changes in the nature of the remaining claims or the ultimate cost.
As a consequence of iDNA's sale of its automobile rental operations in 1995,
iDNA believes that all incurred claims have been reported to iDNA and that there
are no longer any incurred but not yet reported claims to be received by iDNA.
iDNA's self-insurance liability at both July 31, 2006 and January 31, 2006 was
$235,000.

         Because of the uncertainties related to several residual small claims
and legal proceedings involving iDNA's former rental operations and
self-insurance claims, it is difficult to project with precision the ultimate
effect that the adjudication or settlement of these matters will have on iDNA.
As additional information regarding iDNA's potential liabilities becomes
available, iDNA will revise the estimates as appropriate.

         Income Taxes: iDNA recognizes deferred tax assets and liabilities based
on differences between the financial statement carrying amounts and the tax
basis of assets and liabilities. Loss carrybacks, reversal of deferred tax
liabilities, tax planning and estimates of future taxable income are considered
in assessing the need for a valuation allowance. At the time it is determined
that iDNA will more likely than not be able to realize deferred tax assets in
excess of the recorded amount, net of its valuation allowance, an adjustment to
reduce the valuation allowance would be recorded that would increase income in
the period such determination was made. Likewise, should management determine
that iDNA would not be able to realize all or part of net deferred tax assets
generated in the future, increase to the valuation allowance would be charged to
and reduce income in the period such determination was made.

FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS FROM OPERATIONS FOR THE THREE MONTHS ENDED JULY 31, 2006
  AS COMPARED TO THE THREE MONTHS ENDED JULY 31, 2005

         Service Revenues: Revenues for the three months ended July 31, 2006 and
July 31, 2005 were $3.5 million and $1.6 million, respectively. Revenues
increased $1.9 million due principally to (i) revenues derived from Option
Technologies Interactive, LLC. ("OTI"), acquired November 18, 2005, of $1.1
million, (ii) an increase in the aggregate revenues of Audience Response
Systems, Inc. ("ARS") and Campus Group Companies, Inc. ("Campus") (collectively
known as "The Campus Group") of $659,000 and (iii) an increase in the revenues
of OMI Business Communications, Inc. ("OMI") of $186,000.

         For the three months ended July 31, 2006, revenues for The Campus Group
were $2.1 million as compared to revenues of $1.5 million for the three months
ended July 31, 2005. For the three months ended July 31, 2006, revenues for OMI
were $332,000 as compared to revenues of $146,000 for the three months ended
July 31, 2005. The increase in revenues for the Campus Group of $659,000 for the
three months ended July 31, 2006 as compared to revenues for the three months
ended July 31, 2005 was principally due to an increase in the number, scope and
value of client assignments, principally for medical symposiums and seminars and
interactive meeting events, scheduled and completed during the three months
ended July 31, 2006. The increase in revenues for OMI of $186,000 for the three
months ended July 31, 2006 as compared to revenues for the three months ended
July 31, 2005 was principally due to an increase in client assignments completed
during the period. The nature of OMI's and The



                                       22


                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

Campus Group's business is such that the nature and timing of assignments
completed for clients, and the resulting revenue, will vary from period to
period.

         Cost of Service Revenues: Cost of revenues for the three months ended
July 31, 2006 were $2.0 million and were comprised principally of cost of
revenues derived from operations of The Campus Group, OMI and OTI, with (i) The
Campus Group's cost of revenues of $1.3 million, (ii) OMI's cost of revenues of
$281,000 and (iii) OTI's cost of revenues of $446,000. Cost of revenues for
three months ended July 31, 2005 were $1.3 million and were comprised
principally of (i) The Campus Group's cost of revenues of $1.2 million and (ii)
OMI's cost of revenues of $47,000. The average gross margin for the three months
ended July 31, 2006 and July 31, 2005 was 42.3% and 22.3%, respectively.


        The aggregate increase in gross profit of $1.1 million for the three
months ended July 31, 2006 as compared to the three months ended July 31, 2005
was due principally to the net effects of (i) an increase in revenues due to the
acquisition of OTI and (ii) an increase in revenues at The Campus Group and OMI.
The aggregate average gross margins for The Campus Group increased by 21.0%,
which can be principally attributed to (i) an increase of revenues realized
which offset fixed production overhead costs and (ii) an increase in general
production margins as a consequence of a favorable production mix during the
three months ended July 31, 2006. The aggregate gross margins for OMI decreased
52.7% as a consequence of higher production costs during the three months ended
July 31, 2006 as compared to the three months ended July 31, 2005. OTI's
aggregate gross margin for the three months ended July 31, 2006 was 57.8%.

         Selling, General and Administrative ("SG&A"): For the three months
ended July 31, 2006, SG&A expense increased $668,000 to $2.8 million as compared
to $2.1 million for the three months ended July 31, 2005. The increase in SG&A
expense was due principally to the net effect of (i) $438,000 in new SG&A
expense due to the acquisition of OTI, (ii) $25,000 in new SG&A due to the
launch of iDNA HC, (iii) an increase in OMI SG&A of $3,000, (iv) an increase in
The Campus Group SG&A of $298,000 relating principally to an increase in
personnel expenses offset by (v) a decrease in iDNA SG&A of $96,000 relating
principally to the elimination of certain cost of legal and other settlement
costs (see other income below), offset by, an increase in costs relating to
marketing and branding initiatives.

         Income from AFC Investment: iDNA accounts for its investment in AFC
using the equity method. For the three months ended July 31, 2006 and 2005, iDNA
recorded income of $192,000 and $58,000, respectively, representing iDNA's share
of AFC's net income for the three months ended June 30, 2006 and 2005,
respectively.




                                       23



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         The following sets forth summarized operating results for AFC (in
thousands):

                                                  Three Months Ended
                                                        June 30,
                                                 ---------------------
                                                  2006           2005
                                                 ------         ------
Revenues                                         $1,464         $1,141

Film rental                                         296            228
Operating costs                                     571            566
Depreciation and amortization                       171            189
General and administrative expenses                  43             42
                                                 ------         ------
                                                  1,081          1,025
                                                 ------         ------
Net income                                       $  383         $  116
                                                 ======         ======
iDNA's proportionate share of net income         $  192         $   58
                                                 ======         ======

         AFC's revenues increased $323,000 for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005, principally as a
result of (i) a 3.2% increase in average ticket prices, (ii) an increase of
$84,000 in other, concession and cafe revenues and (iii) an increase of 21.4% in
attendance period-to-period. The attendance, and at times the ticket prices, at
AFC will vary depending on audience interest in, and the popularity of the films
it exhibits and other factors. Film rental expense, as a percentage of revenue,
increased 0.2% to 20.2% from 20.0% for the three months ended June 30, 2006 and
2005, respectively. Film rental expense generally is a factor of a fixed
percentage rental rate per film multiplied by the number of tickets sold. AFC
experiences fluctuations in film rental expense, as a percentage of revenue,
depending upon the rental rate per film and the popularity of the film.
Operating costs, as a percent of revenue, decreased 10.6% to 39.0% for the three
months ended June 30, 2006, as compared to 49.6% for the three months ended June
30, 2005 due principally to the increased revenues without a corresponding
increase in operating costs for the three months ended June 30, 2006 as compared
to the three months ended June 30, 2005. The nature of AFC's operating costs
tend generally to be more fixed overhead-related costs and advertising expenses.

         Interest expense: Interest expense increased $31,000 for the three
months ended July 31, 2006 to $189,000 as compared to $158,000 for the three
months ended July 31, 2005. The increase in interest expense was due principally
to (i) the $1.5 million in acquisition debt, bearing interest at 5% per annum,
issued in November 2005 to acquire OTI and (ii) the $1.0 million promissory
note, bearing interest at 14% issued in July 2006 to finance certain working
capital needs of iDNA.

         Interest expense abatement: The Base Notes, Trailing Notes and
Convertible Note issued by iDNA to acquire The Campus Group bear interest at 5%
per annum and are repayable in quarterly installments according to a formula
based upon the future cash flows realized from The Campus Group. For the
trailing twelve month period ended July 31, 2006, The Campus Group's financial
performance fell below certain minimum operating cash flow thresholds
established pursuant to the terms of the Campus Notes. As a consequence, the
interest expense incurred by iDNA during the twelve month period ended July 31,
2006 was abated. As a consequence of the interest abatement, iDNA realize a gain
from the abatement of interest on the Campus Notes of $631,000 for the three
months ended July 31, 2006.


                                       24



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         Prospectively, interest will accrue pursuant to the terms of the Campus
Notes; however, iDNA is not obligated to pay any principal or interest on the
Campus Notes until October 31, 2007.

         Income Taxes: Due to net operating losses and the availability of net
operating loss carryforwards, iDNA's effective federal income tax rate was zero
for the three month periods ended July 31, 2006 and July 31, 2005. iDNA has
provided a full valuation allowance against its net operating loss carryforward
and other net deferred tax asset items due to the uncertainty of their future
realization.

RESULTS FROM OPERATIONS FOR THE SIX MONTHS ENDED JULY 31, 2006
  AS COMPARED TO THE SIX MONTHS ENDED JULY 31, 2005

         Service Revenues: Revenues for the six months ended July 31, 2006 and
July 31, 2005 were $7.0 million and $4.5 million, respectively. Revenues
increased $2.5 million due principally to the net effect of (i) revenues derived
from Option Technologies Interactive, LLC. ("OTI"), acquired November 18, 2005,
of $2.3 million, (ii) an increase in the revenues of OMI Business
Communications, Inc. ("OMI") of $221,000, offset by (iii) a decrease in the
revenues of The Campus Group of $49,000.

         For the six months ended July 31, 2006, revenues for The Campus Group
were $4.1 million as compared to revenues of $4.1 million for the six months
ended July 31, 2005. For the six months ended July 31, 2006, revenues for OMI
were $609,000 as compared to revenues of $387,000 for the six months ended July
31, 2005. Revenues for The Campus Group remained consistent for the six months
ended July 31, 2006 as compared to the six months ended July 31, 2005 as a
consequence of similar number, scope and value of client assignments scheduled
and completed during the respective periods. The increase in revenues for OMI of
$222,000 for the six months ended July 31, 2006 as compared to revenues for the
six months ended July 31, 2005 was principally due to an increase in client
assignments completed during the period. The nature of OMI's and The Campus
Group's business is such that the nature and timing of assignments completed for
clients, and the resulting revenue, will vary from period to period.

         In the past twelve months, iDNA has hired senior marketing strategists
and in March 2006, iDNA formed a new integrated marketing group for corporate
communication services to develop new marketing initiatives, create new project
opportunities, seek new clients for its services and expand existing client
relationships to generate new revenues. Additionally, in July 2006, iDNA formed
a new subsidiary, iDNA Healthcare Communications, Inc. ("iDNA HC") and hired
four communication and administrative professionals, in an effort to expand its
communications program services in the pharmaceutical industry.

         To date, the efforts of iDNA's new marketing strategists have not yet
translated into incremental new revenues for iDNA. Generally, there is a six to
twelve month investment period before iDNA expects to realize the benefits from
the addition of such personnel in the form of new projects and/or clients.
Although no assurances can be made, iDNA continues to seek revenue expansion
through the retention of these marketing strategists as a means to reduce
year-to-year and quarter-to-quarter fluctuations in its revenues as well as to
ultimately increase its overall revenues. iDNA continues to monitor the progress
of each of its initiatives with its marketing strategists.


                                       25



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         Cost of Service Revenues: Cost of revenues for the six months ended
July 31, 2006 were $4.4 million and were comprised principally of cost of
revenues derived from operations of The Campus Group, OMI and OTI, with (i) The
Campus Group's cost of revenues of $2.9 million, (ii) OMI's cost of revenues of
$460,000 and (iii) OTI's cost of revenues of $1.1 million. Cost of revenues for
six months ended July 31, 2005 were $2.8 million and were comprised principally
of (i) The Campus Group's cost of revenues of $2.6 million and (ii) OMI's cost
of revenues of $194,000. The average gross margin for the six months ended July
31, 2006 and July 31, 2005 was 37.2% and 38.5%, respectively.

         The aggregate increase in gross profit of $864,000 for the six months
ended July 31, 2006 as compared to the six months ended July 31, 2005 was due
principally to the net effects of (i) an increase in revenues due to the
acquisition of OTI, offset by (iii) a decrease in gross profit at The Campus
Group and OMI. The aggregate average gross margins for The Campus Group
decreased by 7.9%, which can be attributed principally to an unfavorable mix of
revenues realized to offset fixed production overhead costs during the six
months ended July 31, 2006. The aggregate gross margins for OMI decreased 25.4%
as a consequence of higher production costs during the six months ended July 31,
2006 as compared to the six months ended July 31, 2005. OTI's aggregate gross
margin for the six months ended July 31, 2006 was 54.2%.

         Selling, General and Administrative ("SG&A"): For the six months ended
July 31, 2006, SG&A expense increased $1.1 million to $4.9 million as compared
to $3.8 million for the six months ended July 31, 2005. The increase in SG&A
expense was due principally to the net effect of (i) $852,000 in new SG&A
expense due to the acquisition of OTI, (ii) $25,000 in new SG&A due to the
launch of iDNA HC, (iii) an increase in OMI SG&A of $83,000 relating principally
to an increase in personnel expenses, (iv) an increase in The Campus Group SG&A
of $247,000 relating principally to an increase in personnel expenses offset by
(v) a decrease in iDNA SG&A of $130,000 relating principally to the elimination
of certain legal and other settlement costs (see other income below), offset, by
an increase in cots related to marketing and branding initiatives.

         Income from AFC Investment: iDNA accounts for its investment in AFC
using the equity method. For the six months ended July 31, 2006 and 2005, iDNA
recorded income of $260,000 and $216,000, respectively, representing iDNA's
share of AFC's net income for the six months ended June 30, 2006 and 2005,
respectively.


                                       26



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

The following sets forth summarized operating results for AFC (in thousands):

                                                         Six Months Ended
                                                              June 30,
                                                      -----------------------
                                                        2006           2005
                                                      -------         -------
Revenues                                              $ 2,929         $ 2,552

Film rental                                               813             534
Operating costs                                         1,174           1,115
Depreciation and amortization                             337             387
General and administrative expenses                        85              84
                                                      -------         -------
                                                        2,409           2,120
                                                      -------         -------
Net income                                            $   520         $   432
                                                      =======         =======
iDNA's proportionate share of net income              $   260         $   216
                                                      =======         =======

         AFC's revenues increased $377,000 for the six months ended June 30,
2006 as compared to the six months ended June 30, 2005, principally as a result
of (i) a 3.5% increase in average ticket prices, (ii) an increase of $120,000 in
other, concession and cafe revenues and (iii) an increase of 8.7% in attendance
period-to-period. The attendance, and at times the ticket prices, at AFC will
vary depending on audience interest in, and the popularity of the films it
exhibits and other factors. Film rental expense, as a percentage of revenue,
increased 6.9% to 27.8% from 20.9% for the six months ended June 30, 2006 and
2005, respectively. Film rental expense generally is a factor of a fixed
percentage rental rate per film multiplied by the number of tickets sold. AFC
experiences fluctuations in film rental expense, as a percentage of revenue,
depending upon the rental rate per film and the popularity of the film.
Operating costs, as a percent of revenue, decreased 3.6% to 40.1% for the six
months ended June 30, 2006, as compared to 43.7% for the six months ended June
30, 2005 due principally to the increased revenues offset by a $59,000 increase
in operating costs for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. The nature of AFC's operating costs tend generally
to be more fixed overhead-related costs and advertising expenses.

         Interest expense: Interest expense increased $40,000 for the six months
ended July 31, 2006 to $363,000 as compared to $323,000 for the six months ended
July 31, 2005. The increase in interest expense was due principally to (i) the
$1.5 million in acquisition debt, bearing interest at 5% per annum, issued in
November 2005 to acquire OTI and (ii) the $1.0 million promissory note, bearing
interest at 14% issued in July 2006 to finance certain working capital needs of
iDNA.

         Interest expense abatement: The Base Notes, Trailing Notes and
Convertible Note issued by iDNA to acquire The Campus Group bear interest at 5%
per annum and are repayable in quarterly installments according to a formula
based upon the future cash flows realized from The Campus Group. For the
trailing twelve month period ended July 31, 2006, The Campus Group's financial
performance fell below certain minimum operating cash flow thresholds
established pursuant to the terms of the Campus Notes. As a consequence, the
interest expense incurred by iDNA during the twelve month period ended July 31,
2006 was abated. As a consequence of the interest abatement, iDNA realize a gain
from the abatement of interest on the promissory notes of $631,000 for the six
months ended July 31, 2006.


                                       27



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

Prospectively, interest will accrue pursuant to the terms of the Campus Notes;
however, iDNA is not obligated to pay any principal or interest on the Notes
until October 31, 2007.

         Other Income: As a consequence of the confirmation of the New York
Settlement Stipulation settling certain shareholder derivative complaints and
the subsequent purchase by iDNA of its Common Stock from certain selling
shareholders, for the three months and six months ended July 31, 2005, iDNA
recorded (i) a charge to operations of $100,000 for legal fees of the selling
shareholders, (ii) a charge to operations of $208,000 for the excess cost over
the market value of the Common Stock acquired as of the date of the Agreement,
April 22, 2005, (iii) a charge to other income of $88,000 for the estimated
expense of the fair value of the warrants to be issued to qualified eligible
shareholders and (iv) realized other income of $2.0 million for the net proceeds
received by iDNA from a settlement fund. In addition, the eligible shareholders
were given until December 2005 to submit their claim for one warrant for each
8.23 shares of Common Stock owned during the eligibility period, with each
warrant having a five year term and being exercisable for shares of iDNA's
Common Stock at a price of $1.55 per share. Based upon the final submission of
claims, In April 2006, iDNA issued 100,282 warrants to the eligible
shareholders.

         Income Taxes: Due to net operating losses and the availability of net
operating loss carryforwards, iDNA's effective federal income tax rate was zero
for the six month periods ended July 31, 2006 and July 31, 2005. iDNA has
provided a full valuation allowance against its net operating loss carryforward
and other net deferred tax asset items due to the uncertainty of their future
realization.

LIQUIDITY AND CAPITAL RESOURCES

         On July 20, 2006, iDNA, Inc. ("iDNA") consummated a Loan and Security
Agreement ("Loan Agreement") with a lender and issued a Promissory Note ("Note")
of $1.0 million. Pursuant to the terms of the Note, (i) the outstanding
principal of the Note is due February 15, 2008, (ii) iDNA is required to pay
interest only, monthly and in arrears, during the term and (iii) the Note bears
interest at fourteen percent per annum. iDNA may prepay the Note at any time and
without a prepayment penalty.

         The Note is secured by a perfected first priority security interest in
and to, and a lien on and pledge of, iDNA's right, title and interest in and to
virtually all of iDNA's assets. The lien does not extend to the common stock of
certain subsidiaries - the Campus Group Companies, Inc., Audience Response
Systems, Inc., Multi-Video Service, Inc. and Interactive Conferencing Network,
Inc. (collectively known as "The Campus Group") and Option Technologies
Interactive, LLC.

         The proceeds derived from the Note will be used for (i) capital
expenditures of approximately $225,000 for additional wireless communication
service electronic components ("Wireless Systems"), (ii) initial start-up
capital of approximately $100,000 for the expansion of iDNA's medical
communication group and (iii) general working capital.

         Prior to the issuance of the Note, iDNA had no external source of
financing and has operated on its existing cash balances, cash flows from
operations and distributions from its investment in AFC. iDNA will continue to
pursue reductions in its operating expenses, invest in marketing initiatives and
seek new debt or equity financing (though there can be no assurance iDNA will
obtain such financing) as means of supplementing iDNA's resources available to
pursue new acquisitions, joint ventures or other business development
opportunities. At July 31, 2006, iDNA had unrestricted cash of $501,000, which
together with any cash flow derived from its investment in AFC and the
operations of iDNA's corporate communications business will be used to pursue
such opportunities.



                                       28



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         As a consequence of iDNA's acquisition of OTI effective November 18,
2005, iDNA issued to FWA and MeetingNet the OTI Promissory Notes in an aggregate
principal amount of $1.5 million. The OTI Promissory Notes bear interest at 5%
per annum and are repayable in quarterly installments according to a formula
based upon the future cash flows realized from OTI's operations. The OTI
Promissory Notes are secured by the membership interests of OTI. At July 31,
2006, iDNA had outstanding obligations under the terms of the OTI Promissory
Notes of $1.4 million and accrued interest of $18,000.

         As a consequence of iDNA's acquisition of The Campus Group effective
July 31, 2003, iDNA issued to Mr. Steve Campus and certain family trusts
promissory notes of $9.9 million and a convertible promissory note of $2.8
million (collectively, the "Campus Notes"). Of the $9.9 million in promissory
notes issued by iDNA, $6.6 million of the promissory notes ("Base Notes") bear
interest at 5% per annum and are repayable in quarterly installments according
to a formula based upon the future cash flows realized from The Campus Group
over a period not to exceed seven years. The remaining $3.3 million in
promissory notes ("Trailing Notes") issued by iDNA bear interest at 5% per annum
and are repayable in quarterly installments, commencing upon the retirement of
the Base Notes, according to a formula based upon the future cash flows realized
from The Campus Group over a period not to exceed three years subsequent to the
retirement of the Base Notes. The $2.8 million convertible promissory note
(Convertible Note") (i) bears interest at 5% per annum, payable quarterly in
cash or accumulating as principal at the election of iDNA, (ii) requires
principal payments to commence upon the retirement of the Base Notes and
Trailing Notes and is then repayable in quarterly installments according to a
formula based upon the future cash flows realized from The Campus Group over a
period not to exceed three years and (iii) is convertible at the option of the
holder into shares of iDNA's Common Stock at a base conversion price of $1.50
per share. The holder may not convert the Convertible Note into iDNA's Common
Stock prior to repayment of the Base Notes and Trailing Notes. The Campus Notes
are secured by the capital stock of the companies comprising The Campus Group.
At July 31, 2006, iDNA had outstanding obligations under the terms of the Base
Notes, Trailing Notes and the Convertible Note of $6.0 million, $3.3 million and
$2.8 million, respectively, and accrued interest of $156,000.

         For the trailing twelve month period ended July 31, 2006, the Campus
Group's financial performance fell below certain minimum operating cash flow
thresholds established pursuant to the terms of the Campus Notes. As a
consequence, the interest expense incurred by iDNA during the twelve month
period ended July 31, 2006 was abated. As a consequence of the interest
abatement, iDNA realized a gain from the abatement of interest on the promissory
notes of $631,000 for the three months and the six months ended July 31, 2006.
Prospectively, interest may accrue pursuant to the terms of the Campus Notes;
however, iDNA is not obligated to pay any principal or interest on the Notes
until October 31, 2007.

         As a consequence of iDNA's acquisition of OMI effective April 1, 2003,
iDNA assumed $814,000 in bank debt and capital lease obligations to financial
institutions and issued a promissory note payable to Mr. Dean Thompson in the
principal amount of $153,000. The promissory note bore interest at 5% per annum
and was payable in monthly installments of principal and interest over a 36
month period expiring April 2006. The promissory note was repaid and retired in
April 2006.



                                       29



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         During 2001, OMI obtained a $300,000 bank term loan (the "Term Loan")
to finance certain capital expenditures. The Term Loan was payable in monthly
installments of $6,000, comprised of principal and interest, over a five year
term, expiring in July 2006. The Term Loan bore interest at the rate of 8.25%
per annum. The Term Loan was collateralized by substantially all of OMI's assets
and the personal guarantee of Mr. Thompson. The Term Loan was repaid and retired
in June 2006.

         On April 25, 2002, OMI obtained a $402,000 loan guaranteed by the U.S.
Small Business Administration (the "SBA Loan") to finance losses incurred as a
result of the September 11, 2001 terrorist attacks in New York City. At July 31,
2006, the remaining balance of the SBA Loan of $346,000 is repayable in monthly
installments of $3,309 with the last payment due in April 2017. The SBA Loan
bears interest at the rate of 4% per annum. The SBA Loan is collateralized by
substantially all of OMI's assets and the personal guarantee of Mr. Thompson.

           For the six months ended July 31, 2006, iDNA's cash and cash
equivalents decreased $643,000 due principally to the net effects of (i)
proceeds from AFC distributions of $1.2 million, (ii) proceeds from the issuance
of the Note of $1.0 million, offset by (iii) cash flows used in operations of
$1.7 million, (iv) capital expenditures of $302,000, (v) the repayment of debt
and due to former OTI Members of $739,000 and (vi) the cash collateralization of
the $147,000 letter of credit issued in favor of iDNA's landlord.

         iDNA believes that the available cash and cash equivalents totaling
$501,000 at July 31, 2006 and any cash distributions from its investment in AFC
and cash flow from operations will be sufficient to pay operating expenses,
existing liabilities, fund existing debt repayments and fund its activities
through the next twelve months as iDNA explores new strategic business
alternatives. However, as previously discussed, iDNA's lack of external
financing sources may limit its ability to pursue strategic business
alternatives being considered by iDNA's Board of Directors. Such limitations may
have an adverse impact on iDNA's financial position, results of operations and
liquidity.

OTHER

New Accounting Pronouncements
-----------------------------
         In December 2004 the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 123R (revised 2004), Share-Based Payment, which replaces
SFAS No. 123, Accounting for Stock-Based Compensation, and supersedes APB
Opinion No. 25, Accounting for Stock Issued to Employees. SFAS No. 123R requires
all share-based payments to employees, including grants of employee stock
options, to be recognized in the financial statements based on their fair values
beginning with the first interim or annual period after December 15, 2005. The
pro forma disclosures previously permitted under SFAS 123 no longer will be an
alternative to financial statement recognition. iDNA adopted SFAS 123R at the
beginning of Fiscal 2007 (effective February 1, 2006). Under SFAS No. 123R, iDNA
must determine the appropriate fair value model to be used for valuing
share-based payments, the amortization method for compensation cost and the
transition method to be used at date of adoption. iDNA elected the prospective
method of adopting SFAS No. 123R which requires that compensation expense be
recorded for all unvested stock options and restricted stock at the beginning of
the first quarter of adoption. Accordingly, iDNA has recorded charges to
operations for stock-based compensation expense for the three months and six
months ended July 31, 2006 of $72,000 and $145,000, respectively.



                                       30



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED

         In May 2005, FASB issued Statement No. 154, Accounting Changes and
Error Corrections ("SFAS 154"). SFAS 154 replaces APB No. 20, Accounting
Changes, and SFAS 3, Reporting Accounting Changes in Interim Financial
Statements, and establishes retrospective application as the required method for
reporting a change in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. SFAS 154 applies to all voluntary changes in accounting principles and
to changes required by an accounting pronouncement in the instance that the
pronouncement does not include specific transition provisions. SFAS 154 is
effective for accounting changes and corrections of errors made in fiscal years
beginning after December 15, 2005. iDNA adoption of SFAS 154 did not have a
material impact on iDNA's reported consolidated financial position or results of
operations.

         In June 2006, the FASB issued FASB Interpretation No. 48, Accounting
for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109
(FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes
recognized in an entity's financial statements and provides guidance on the
recognition, de-recognition and measurement of benefits related to an entity's
uncertain tax positions. FIN 48 is effective for us beginning February 1, 2007.
iDNA is currently evaluating the impact of its adoption on iDNA's financial
position and results of operations.

Inflation
---------
      Inflation has not had a material adverse impact on iDNA.


                                       31



FORWARD-LOOKING STATEMENTS

         Some of the information in this report contains forward looking
statements within the meaning of the federal securities laws that relate to
future events or our future financial performance and involve known and unknown
risks, uncertainties and other factors that may cause us or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by the forward-looking statements. You should
not rely on forward-looking statements in this report. Forward-looking
statements typically are identified by use of terms such as "anticipate",
"believe", "plan", "expect", "intend", "may", "will", "should", "estimate",
"predict", "potential", "continue" and similar words, although some
forward-looking statements are expressed differently. This report may contain
forward-looking statements attributed to third parties relating to their
estimates regarding the growth of our markets or other factors. All
forward-looking statements address matters that involve risk and uncertainties,
and there are many important risks, uncertainties and other factors that could
cause our actual results as well as those of the markets we serve, levels of
activity, performance, achievements and prospects to differ materially from the
forward-looking statements contained in this report. You should also consider
carefully the statements under other sections of this report that address
additional facts that could cause our actual results to differ from those set
forth in any forward-looking statements. We undertake no obligation to publicly
update or review any forward-looking statements, whether as a result of new
information, future developments or otherwise.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Like virtually all commercial enterprises, iDNA can be exposed to the
risk ("market risk") that the cash flows to be received or paid relating to
certain financial instruments could change as a result of changes in interest
rate, exchange rates, commodity prices, equity prices and other market changes.

         iDNA does not engage in trading activities and does not utilize
interest rate swaps or other derivative financial instruments or buy or sell
foreign currency, commodity or stock indexed futures or options. Accordingly,
iDNA is not exposed to market risk from these sources.

         As of July 31, 2006, the interest rates under iDNA's long term and
convertible debt are fixed. As a result iDNA has limited market risk associated
with market interest rates.


ITEM 4.  CONTROLS AND PROCEDURES

         As of the end of the period covered by this interim report on Form
10-Q, the Chief Executive Officer and the Chief Financial Officer of iDNA (the
"Certifying Officers") have conducted evaluations of iDNA's disclosure controls
and procedures. As defined under Sections 13a-15(e) and 15d-15(e)) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), the term
"disclosure controls and procedures" means controls and other procedures of an
issuer that are designed to ensure that information required to be disclosed by
the issuer in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in the Commission's rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed by an issuer in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the issuer's
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure. The Certifying Officers have



                                       32


reviewed iDNA's disclosure controls and procedures and have concluded that those
disclosure controls and procedures were effective as of the end of our most
recent fiscal quarter. In compliance with Section 302 of the Sarbanes-Oxley Act
of 2002, (18 U.S.C. 1350), each of the Certifying Officers has executed the
requisite Officer's Certification included as Exhibit 31 to this Quarterly
Report on Form 10-Q.

         The Certifying Officers have also conducted evaluations of iDNA's
internal control over financial reporting and have concluded that there have
been no changes in our internal control over financial reporting during our most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.



                                       33




                                    PART II.
                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Self-Insurance Reserves for Property Damage and Personal Injury Claims
----------------------------------------------------------------------
         iDNA, under the names Agency Rent-A-Car, Inc. ("ARAC"), Altra Auto
Rental and Automate Auto Rental, previously engaged in the rental of automobiles
on a short-term basis, principally to the insurance replacement market. In
Fiscal 1996, iDNA disposed of its rental fleet business through the sale of
certain assets and through certain leases to a national car rental company. All
liabilities related to the discontinued rental business, principally
self-insurance claims, were retained by iDNA.

         iDNA is subject to certain self-insurance claims and litigation
expenses relating to its discontinued automobile rental operations. iDNA
estimates the required self-insurance liability based upon specific
identification of the known matters subject to future claims, the nature of the
claim and the estimated costs to be incurred. These estimates include, but are
not limited to, iDNA's historical loss experience and projected loss factors.
The required self-insurance liability is subject to adjustment in the future
based upon changes in the nature of the remaining claims or the ultimate cost.
As a consequence of iDNA's sale of its automobile rental operations in 1995,
iDNA believes that all incurred claims have been reported to iDNA and that there
are no longer any incurred but not yet reported claims to be received by iDNA.
iDNA's self-insurance liability at both July 31, 2006 and January 31, 2006 was
$235,000.

Trademarks
----------
         On August 16, 2006, OTI was named as a defendant in a complaint filed
in the United States District Court for the Northern District of Illinois
Eastern Division entitled "Brahler ICS Konferenztechnik AG ("Brahler") vs.
Digivote, Inc., Option Technologies Interactive, LLC and Suneel Mirchandani".
The complaint alleges that since on or about September 2004 the defendants
wrongfully used and infringed upon Brahler's federally registered trademark
Digivote for their own commercial gain without the authorization of Brahler.
This matter is in its early stage of review however, OTI and iDNA believe that
OTI has a number of affirmative defenses regarding this matter and we intend to
vigorously defend this litigation and/or enter into settlements of claims where
management deems appropriate. In the opinion of management, the amount of
ultimate liability with respect to this action, if any, is unlikely to
materially affect our financial position, results of operations or liquidity.

Other Litigation
----------------
         In the normal course of its business, iDNA is periodically named as
defendant in legal proceedings. It is the policy of iDNA to vigorously defend
litigation and/or enter into settlements of claims where management deems
appropriate. In the opinion of management, the amount of ultimate liability with
respect to any current actions, if any, is unlikely to materially affect our
financial position, results of operations or liquidity.

ITEM 1A. RISK FACTORS
         Not applicable

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
         Not applicable


                                       34


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         Not applicable

ITEM 5.  OTHER INFORMATION
         Not applicable

ITEM 6.  EXHIBITS

EXHIBIT                                                                   PAGE
NUMBER   TITLE OF EXHIBIT                                                NUMBER
--------------------------------------------------------------------------------
31.1     Officer's Certification Pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)                       37
31.2     Officer's Certification Pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)                       38
32.1     Certification of Principal Executive Officer Pursuant to
         18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)    39
32.2     Certification of Principal Financial Officer Pursuant to
         18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)    40



                                       35




                                   SIGNATURES
                                   ----------

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


                               iDNA, INC.

Date: September 18, 2006       By: /s/ James J. McNamara
      ------------------           ---------------------------------------------
                               James J. McNamara
                               Chairman of the Board and Chief Executive Officer
                               (principal executive officer)


                               By: /s/ Robert V. Cuddihy, Jr.
                                   ---------------------------------------------
                               Robert V. Cuddihy, Jr.
                               Chief Financial Officer
                               (principal accounting and financial officer)




                                       36`