`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 October 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, an
accelerated filer or a non-accelerated filer (See definition of "accelerated
filer" and "large accelerated filer" in Rule 12b-2 of the Exchange Act). (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 December 14, 2006
-----------------------------                   --------------------------------
Common Stock, $0.05 par value                                9,598,364



                           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
               October 31, 2006 and January 31, 2006                           4

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

               Condensed Consolidated Statement of Stockholders' Equity
               and Comprehensive Loss for the Nine Months Ended
               October 31, 2006                                                6

               Condensed Consolidated Statements of Cash Flows for the
               Nine Months Ended October 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                                                    33

Item 4.        Controls and Procedures                                        33

PART II.       OTHER INFORMATION

Item 1.        Legal Proceedings                                              35
Item 1A.       Risk Factors                                                   35
Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds    35
Item 3.        Defaults Upon Senior Securities                                36
Item 4.        Submission of Matters to a Vote of Security Holders            36
Item 5.        Other Information                                              36
Item 6.        Exhibits                                                       36

Signatures                                                                    37

Certifications                                                                38


                                       -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 October 31, 2006, the related condensed
consolidated statements of operations for each of the three-month and nine-month
periods ended October 31, 2006 and 2005; the related condensed consolidated
statement of stockholders' equity and comprehensive loss for the nine-month
period ended October 31, 2006 and the condensed consolidated statements of cash
flows for each of the nine-month periods ended October 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
December 8, 2006


                                        3



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



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

                              ASSETS
Cash and cash equivalents                                             $   1,181     $   1,144
Restricted cash (Note 1)                                                    147            --
Accounts receivable, net of allowance
   of $85 and $105, respectively (Note 1)                                 1,900         2,045
Inventory (Note 1)                                                          231           247
Prepaid expenses                                                            299           277
Other current assets                                                         38            22
                                                                      ---------     ---------
   Total current assets                                                   3,796         3,735
Property and equipment, net of accumulated
   depreciation of $2,614 and $2,029, respectively (Note 1)               2,920         2,919
Investment in AFC (Note 3)                                                7,066         7,822
Goodwill (Notes 1 and 2)                                                  2,728         5,879
Other intangible assets, net of accumulated
   amortization of $1,955 and $1,430, respectively (Notes 1 and 2)        6,343         8,352
Other assets                                                                145           140
                                                                      ---------     ---------
                                                                      $  22,998     $  28,847
                                                                      =========     =========
               LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current maturities of long term obligations (Note 4)                  $     658     $   1,111
Accounts payable                                                          1,563         1,463
Accrued income taxes                                                        303           358
Deferred revenue (Note 1)                                                 1,127           891
Due to former OTI Members                                                    --           530
Self-insurance claims (Note 5)                                              235           235
Other liabilities                                                         1,731         1,746
                                                                      ---------     ---------
   Total current liabilities                                              5,617         6,334
Long term obligations (Note 4)                                           11,330        10,116
Convertible promissory note (Note 4)                                      2,825         2,825
                                                                      ---------     ---------
                                                                         19,772        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                                              174,638       174,479
Retained deficit                                                       (150,602)     (144,034)
Deferred compensation                                                       (48)          (65)
Treasury stock, at cost, 30,851,225 and 30,913,225
   shares, respectively                                                 (22,759)      (22,805)
                                                                      ---------     ---------
   Total stockholders' equity                                             3,226         9,572
                                                                      ---------     ---------
                                                                      $  22,998     $  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   Nine Months Ended
                                                  October 31,         October 31,
                                              ------------------   -----------------
                                                2006      2005       2006      2005
                                              -------   --------   -------   -------

Service revenues (Note 1)                      $4,758    $4,503    $11,728   $ 8,999
Cost of service revenues                        2,554     2,390      6,929     5,155
                                               ------    ------    -------   -------
   Gross profit                                 2,204     2,113      4,799     3,844
Selling, general and administrative             2,452     2,210      7,367     6,046
Impairment charge (Note 1)                         --        --      4,482        --
                                               ------    ------    -------   -------
   Loss from operations                          (248)      (97)    (7,050)   (2,202)
Other income (expense):
   Income from AFC investment (Note 3)            191       348        451       564
   Interest income                                  4         7         10        42
   Interest expense                              (216)     (161)      (579)     (484)
   Interest expense abatement (Note 4)             --        --        631        --
   Other income - net                              --        --         --     1,897
                                               ------    ------    -------   -------
   Income (loss) from continuing operations
      before income taxes                        (269)       97     (6,537)     (183)
Provision for income taxes                        (11)       --        (34)      (15)
                                               ------    ------    -------   -------
   Income (loss) from continuing operations      (280)       97     (6,571)     (198)
Income from discontinued
   operations, net of tax                           1        --          3        16
                                               ------    ------    -------   -------
   Net income (loss)                           $ (279)   $   97    $(6,568)  $  (182)
                                               ======    ======    =======   =======
Basic and diluted income (loss) per share
   Continuing operations                       $ (.03)   $  .01    $  (.72)  $  (.02)
   Discontinued operations                         --        --         --        --
                                               ------    ------    -------   -------
      Net income (loss) per share              $ (.03)   $  .01    $  (.72)  $  (.02)
                                               ======    ======    =======   =======
Weighted average number
   of shares outstanding
   Basic and diluted                            9,098     8,540      9,072     9,355
                                               ======    ======    =======   =======


     See accompanying notes to condensed consolidated financial statements.


                                        5



                           iDNA, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                             AND COMPREHENSIVE LOSS
                       NINE MONTHS ENDED OCTOBER 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                                                                      (6,568)                          (6,568)    $(6,568)
Share-based compensation
   expense                                                           153                                          153
Treasury stock issued                                                  6                    46                     52
Deferred compensation
   expense                                                                                            17           17
                             ---    ---    ----------  ------   --------   ---------  --------      ----      -------     -------
Comprehensive income
   (loss)                                                                                                                 $(6,568)
                                                                                                                          =======
Balance at
 October 31, 2006             --    $--    39,949,589  $1,997   $174,638   $(150,602) $(22,759)     $(48)     $ 3,226
                             ===    ===    ==========  ======   ========   =========  ========      ====      =======


     See accompanying notes to condensed consolidated financial statements.


                                        6



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



                                                                      Nine Months Ended
                                                                          October 31,
                                                                      -----------------
                                                                        2006      2005
                                                                      -------   -------

Cash flows from operating activities
   Net loss                                                           $(6,568)  $  (182)
   Adjustments to reconcile net loss to net cash provided by
      (used in) operating activities:
      Depreciation and amortization                                     1,206     1,019
      Impairment charge                                                 4,482        --
      Income from AFC investment                                         (451)     (564)
      Share-based compensation expense                                    200        --
      Stock issued as compensation for services rendered                    5        33
      Fair value of Eligible Shareholder warrants                          --        88
      Amortization of deferred compensation expense                        17        18
   Changes in operating assets and liabilities, net of acquisition:
      Accounts receivable                                                 145      (653)
      Income tax refundable                                                --       826
      Accrued income tax                                                  (55)       11
      Accounts payable                                                    100       714
      Deferred revenue                                                    236       259
      Other operating assets and liabilities, net                         (38)      147
                                                                      -------   -------
         Net cash provided by (used in) operating activities             (721)    1,716
                                                                      -------   -------
Cash flows from investing activities:
   Proceeds from AFC distributions                                      1,207       408
   Purchase of letter of credit, increase in restricted cash             (147)       --
   Purchase of property and equipment                                    (533)     (199)
                                                                      -------   -------
         Net cash provided by investing activities                        527       209
                                                                      -------   -------
Cash flows from financing activities:
   Proceeds from issuance of promissory note                            1,000        --
   Proceeds from borrowings under a capital lease                         102
   Payments to retire due to former OTI Members                          (530)       --
   Payments to acquire treasury stock                                      --    (1,052)
   Payments of long term debt and capital lease                          (341)     (485)
                                                                      -------   -------
         Net cash provided by (used in) financing activities              231    (1,537)
                                                                      -------   -------
   Increase in cash and cash equivalents                                   37       388
   Cash and cash equivalents at beginning of period                     1,144       471
                                                                      -------   -------
   Cash and cash equivalents at end of period                         $ 1,181   $   859
                                                                      =======   =======
Supplemental disclosures of cash flow information:
   Interest paid                                                      $    99   $   484
                                                                      =======   =======
   Income taxes paid                                                  $    55   $     4
                                                                      =======   =======


      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 its 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 nine months
ended October 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 ending January 31, 2007 shall be the term
"Fiscal 2007" and references to other "Fiscal" years shall mean the year, that
ended (or ends, as the case may be) 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
$38,000 and $22,000, respectively, are reported as other current assets at
October 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 October 31, 2006 and 2005,
electronic equipment sales were $708,000 and $233,000, respectively. For the
nine months ended October 31, 2006 and 2005, electronic equipment sales were
$2.0 million and $608,000, 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 now incurs 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 $101,000 and $299,000, respectively, to research
and development expense for the three months and nine months ended October 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 October 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 $703,000. The useful
lives of these intangibles are estimated to be 5 to 7 years. The intangible
assets with definite useful lives are amortized using the straight-line method
over those lives. For the three months and nine months ended October 31, 2006,
iDNA charged to operations $12,000 and $88,000, 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 were initially 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 October 31, 2006 and 2005, iDNA charged to operations $153,000 and
$141,000, respectively for the amortization of these intangible assets. For each
of the nine months ended October 31, 2006 and 2005, iDNA charged to operations
$437,000 and $425,000, respectively, for the amortization of these intangible
assets.

Impairment of Long-Lived Assets and Goodwill

     iDNA reviews the carrying value of its long-lived assets (other than
goodwill) whenever events or changes in circumstances indicate that their
carrying amount may not be recoverable. When indicators of impairment exist,
iDNA determines whether the estimated undiscounted sum of the future cash flows
from such assets is less than their carrying amounts. If less, an impairment
loss is recognized in the amount, if any, by which, the carrying amount of such
assets exceeds 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. At January 31, 2006, iDNA
determined that there was no impairment of long-lived assets.

     iDNA conducted its Fiscal 2006 annual analysis of goodwill as of January
31, 2006. iDNA estimated the fair value of its reporting units and compared
those values to the carrying values of those reporting units. 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 goodwill based upon the then estimated fair value of its
reporting units.

     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 at that
date. Accordingly, based upon iDNA's preliminary assessment, second quarter
operations were charged $1.9 million and $2.6 million for the estimated
impairment of CGC's goodwill and other intangible assets, respectively.
Additionally, iDNA determined it appropriate to reduce the useful life of the
CGC client relationships intangible asset from 17 years to 10 years. iDNA will
continue to monitor CGC's operations and will recognize further impairment
charges if and when deemed appropriate.

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.


                                       11



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

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

Reclassifications

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

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). iDNA elected the
prospective method of adopting SFAS No. 123R which requires that compensation
expense be recorded over the remaining periods for what would have been the
remaining fair value under SFAS No. 123 of 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 nine months ended October 31, 2006 of $60,000 and $205,000,
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 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

     In September 2006, the Securities and Exchange Commission staff issued
Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial
Statements" ("SAB 108"). SAB 108 provides guidance on quantifying and evaluating
the materiality of unrecorded misstatements. The SEC staff recommends that
misstatements should be quantified using both a balance sheet and income
statement approach and a determination be made as to whether either approach
results in quantifying a misstatement which the registrant, after evaluating all
relevant factors, considers material. The SEC staff will not object if a
registrant records a one-time cumulative effect adjustment to correct
misstatements occurring in prior years that previously had been considered
immaterial based on the appropriate use of the registrant's methodology. SAB 108
is effective for fiscal years ending on or after November 15, 2006. iDNA does
not currently expect SAB 108 to have a material impact on its consolidated
financial position or results of operations.

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 proprietary 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 OTI's (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 is entitled to base compensation of $150,000 per year and a
performance bonus based upon the operating results of OTI. Mr. Fite was also
granted 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. 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 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                    1,381
   Goodwill arising in the acquisition         403
   Other intangible assets                     703
                                           -------
                                             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
$403,000 and $703,000, respectively. iDNA has estimated lives for the other
intangible assets of 5 to 7 years. For the three months and nine months ended
October 31, 2006, iDNA charged to operations $12,000 and $88,000, respectively,
for the amortization of these intangibles. iDNA engaged the valuation services
of an independent third party appraisal company to assist in the determination
of the fair value of tangible and intangible assets acquired in accordance with
SFAS No. 141. A preliminary valuation analysis was completed prior to July 2006
and has subsequently been refined in October 2006. As a consequence of the
valuation analysis, 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 table sets forth the pro forma condensed results of
operations of iDNA and OTI for the nine months ended October 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 nine months ended
October 31 with the historical results of OTI for the nine months ended
September 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 income and income per
share are as follows (in thousands):

                                           Nine Months Ended
                                            October 31, 2005
                                           -----------------
Service revenues                                $13,612
                                                =======
Net income from continuing operations           $   500
                                                =======
Income per share from continuing operations     $  0.05
                                                =======

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 October 31, 2006 and 2005,
iDNA recorded income of $191,000 and $348,000, respectively, representing its
share of AFC's net income. For the nine months ended October 31, 2006 and 2005,
iDNA recorded income of $451,000 and $564,000, 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 nine
months ended September 30, 2006 and 2005, respectively, is as follows (in
thousands):

                                          Three Months Ended   Nine Months Ended
                                             September 30,        September 30,
                                          ------------------   -----------------
                                             2006     2005       2006     2005
                                            ------   ------     ------   ------
Revenues                                    $1,646   $2,063     $4,575   $4,615

Film rental                                    406      499      1,219    1,033
Operating costs                                635      628      1,809    1,743
Depreciation and amortization                  195      197        532      584
General and administrative expenses             28       43        113      127
                                            ------   ------     ------   ------
                                             1,264    1,367      3,673    3,487
                                            ------   ------     ------   ------
Net income                                  $  382   $  696     $  902   $1,128
                                            ======   ======     ======   ======
iDNA's proportionate share of net income    $  191   $  348     $  451   $  564
                                            ======   ======     ======   ======

NOTE 4 - CURRENT AND LONG TERM OBLIGATIONS

     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 October 31,
2006, iDNA had outstanding obligations under the terms of the OTI Promissory
Notes of $1.2 million and accrued interest of $16,000.

     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 October 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 $312,000.


                                       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 during the second quarter of fiscal 2007. 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 October 31, 2006, the
remaining balance of the SBA Loan of $338,000 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. Dean
Thompson, President of OMI.

     In September 2006, OMI consummated equipment financing in the form of a
capital lease with a financing institution to acquire $102,000 in various
digital media production and editing equipment. The capital lease is payable in
monthly installments with the last payment due in July 2009 and bears an implied
interest rate of 10%. The capital lease is collateralized by the digital media
production and editing equipment acquired by OMI. At October 31, 2006, the
remaining balance due under the capital lease was $95,000.

     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
October 31, 2006, the balance of the Note was $1.0 million.

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

                               Amounts
                              --------
Capital lease                 $     95
SBA loan                           338
Promissory note                  1,000
OTI promissory notes             1,234
Base promissory notes            6,046
Trailing promissory notes        3,275
Convertible note payable         2,825
                              --------
                                14,813
Less current maturities           (658)
                              --------
Long term obligations and
   convertible note payable   $ 14,155
                              ========


                                       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 October 31, 2006 are
as follows (in thousands):

                                      Amounts
                                     --------
2007                                 $    662
2008                                    2,137
2009                                    1,250
2010                                    1,084
2011                                    1,332
Thereafter                              8,354
                                     --------
                                       14,819
Less: interest under capital lease         (6)
                                     --------
                                     $ 14,813
                                     ========

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 October 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 $38,000 and $22,000, respectively, are reported as other
current assets at October 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 October 31, 2006 and 2005,
electronic equipment sales were $708,000 and $233,000, respectively. For the
nine months ended October 31, 2006 and 2005, electronic equipment sales were
$2.0 million and $608,000, 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 (other than goodwill) whenever events or changes
in circumstances indicate that their carrying amount may not be recoverable.
When indicators of impairment exist, iDNA determines whether the estimated
undiscounted sum of the future cash flows from such assets is less than their
carrying amounts. If less, an impairment loss is recognized in the amount, if
any, by which, the carrying amount of such assets exceeds 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. At January 31, 2006, iDNA determined that there was no
impairment of long-lived assets.

     iDNA conducted its Fiscal 2006 annual analysis of goodwill as of January
31, 2006. iDNA estimated the fair value of its reporting units and compared
those values to the carrying values of those reporting units. If the estimated
fair value of the reporting unit is less than the estimated book value, then
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 goodwill based upon the then estimated fair value of its
reporting units.

     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 at that
date. Accordingly, based upon iDNA's preliminary assessment, second quarter
operations were charged $1.9 million and $2.6 million for the estimated
impairment of CGC's goodwill and other intangible assets, respectively.
Additionally, iDNA determined it appropriate to reduce the useful life of the
CGC client relationships intangible asset from 17 years to 10 years. iDNA will
continue to monitor CGC's operations and will recognize further impairment
charges if and when deemed appropriate.

     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 October 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 OCTOBER 31, 2006
   AS COMPARED TO THE THREE MONTHS ENDED OCTOBER 31, 2005

     Service Revenues: Revenues for the three months ended October 31, 2006 and
October 31, 2005 were $4.8 million and $4.5 million, respectively. Revenues
increased $255,000 due principally to the net effect of (i) revenues derived
from Option Technologies Interactive, LLC. ("OTI"), acquired November 18, 2005,
of $1.1 million, (ii) revenues derived from iDNA Healthcare Communications, Inc.
("iDNA HC"), formed July 1, 2006, of $467,000, offset by (iii) a decrease in the
aggregate revenues of Audience Response Systems, Inc. ("ARS") and Campus Group
Companies, Inc. ("Campus") (collectively known as "The Campus Group") of
$235,000 and (iv) a decrease in the revenues of OMI Business Communications,
Inc. ("OMI") of $1.0 million.


                                       22



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

     For the three months ended October 31, 2006, revenues for The Campus Group
were $1.7 million as compared to revenues of $2.0 million for the three months
ended October 31, 2005. For the three months ended October 31, 2006, revenues
for OMI were $1.6 million as compared to revenues of $2.6 million for the three
months ended October 31, 2005. The decrease in revenues for the Campus Group of
$235,000 for the three months ended October 31, 2006 as compared to revenues for
the three months ended October 31, 2005 was principally due to a decrease in the
number, scope and value of client assignments, principally for medical
communications seminars and related projects scheduled and completed during the
three months ended October 31, 2006. The decrease in revenues for OMI of $1.0
million for the three months ended October 31, 2006 as compared to revenues for
the three months ended October 31, 2005 was principally due to a decrease in the
number and value of client assignments completed during the period. The nature
of iDNA'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 terms
of scope of work, size of project and the ultimate revenues derived.

     Cost of Service Revenues: Cost of revenues for the three months ended
October 31, 2006 were $2.5 million and were comprised principally of cost of
revenues derived from operations of The Campus Group, iDNA HC, OMI and OTI, with
(i) The Campus Group's cost of revenues of $1.1 million, (ii) iDNA HC cost of
revenues of $300,000, (iii) OMI's cost of revenues of $551,000 and (iii) OTI's
cost of revenues of $574,000. Cost of revenues for three months ended October
31, 2005 were $2.4 million and were comprised principally of (i) The Campus
Group's cost of revenues of $1.1 million and (ii) OMI's cost of revenues of $1.3
million. The average gross margin for the three months ended October 31, 2006
and October 31, 2005 was 46.3% and 46.9%, respectively.

     The aggregate increase in gross profit of $91,000 for the three months
ended October 31, 2006 as compared to the three months ended October 31, 2005
was due principally to the net effect of (i) an increase in revenues due to the
acquisition of OTI and the formation of iDNA HC, offset by (ii) a decrease in
revenues at The Campus Group and OMI. The aggregate average gross margins for
The Campus Group decreased by 10.6%, which can be principally attributed to (i)
a decrease of revenues realized to offset fixed production overhead costs and
(ii) a decrease in general production margins as a consequence of an unfavorable
production mix during the three months ended October 31, 2006. The aggregate
gross margins for OMI increased 16.3% as a consequence of lower production costs
during the three months ended October 31, 2006 as compared to the three months
ended October 31, 2005. OTI's aggregate gross margin for the three months ended
October 31, 2006 was 45.7%.

     Selling, General and Administrative ("SG&A"): For the three months ended
October 31, 2006, SG&A expense increased $242,000 to $2.5 million as compared to
$2.2 million for the three months ended October 31, 2005. The increase in SG&A
expense was due principally to the net effect of (i) $360,000 in new SG&A
expense due to the acquisition of OTI, (ii) $75,000 in new SG&A due to the
launch of iDNA HC, (iii) an increase in iDNA SG&A of $6,000 offset by (iv) a
decrease in OMI SG&A of $93,000 and (iv) a decrease in The Campus Group SG&A of
$106,000 relating principally to a decrease in personnel expenses.

     Income from AFC Investment: iDNA accounts for its investment in AFC using
the equity method. For the three months ended October 31, 2006 and October 31,
2005, iDNA recorded income of $191,000 and $348,000, respectively, representing
iDNA's share of AFC's net income for the three months ended September 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
                                             September 30,
                                          ------------------
                                             2006     2005
                                            ------   ------
Revenues                                    $1,646   $2,063

Film rental                                    406      499
Operating costs                                635      628
Depreciation and amortization                  195      197
General and administrative expenses             28       43
                                            ------   ------
                                             1,264    1,367
                                            ------   ------
Net income                                  $  382   $  696
                                            ======   ======
iDNA's proportionate share of net income    $  191   $  348
                                            ======   ======

     AFC's revenues decreased $417,000 for the three months ended September 30,
2006 as compared to the three months ended September 30, 2005, principally as a
result of (i) a decrease of 21.2% in attendance period-to-period and (ii) a
decrease of $64,000 in other, concession and cafe revenues. 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 0.5% to 24.7% from 24.2% for the
three months ended September 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,
increased 8.2% to 38.6% for the three months ended September 30, 2006, as
compared to 30.4% for the three months ended September 30, 2005 due principally
to the decreased revenues without a corresponding decrease in operating costs
for the three months ended September 30, 2006 as compared to the three months
ended September 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 $55,000 for the three months
ended October 31, 2006 to $216,000 as compared to $161,000 for the three months
ended October 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.

     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 October 31, 2006 and October 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


                                       24



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

RESULTS FROM OPERATIONS FOR THE NINE MONTHS ENDED OCTOBER 31, 2006
   AS COMPARED TO THE NINE MONTHS ENDED OCTOBER 31, 2005

     Service Revenues: Revenues for the nine months ended October 31, 2006 and
October 31, 2005 were $11.7 million and $9.0 million, respectively. Revenues
increased $2.7 million due principally to the net effect of (i) revenues derived
from OTI, acquired November 18, 2005, of $3.4 million, (ii) revenues derived
from iDNA HC, formed July 2006, of $469,000, offset by (iii) a decrease in the
revenues of OMI of $813,000 and (iv) a decrease in the revenues of The Campus
Group of $284,000.

     For the nine months ended October 31, 2006, revenues for The Campus Group
were $5.7 million as compared to revenues of $6.0 million for the nine months
ended October 31, 2005. For the nine months ended October 31, 2006, revenues for
OMI were $2.2 million as compared to revenues of $3.0 million for the nine
months ended October 31, 2005. Revenues for The Campus Group decreased for the
nine months ended October 31, 2006 as compared to the nine months ended October
31, 2005 as a consequence of a decline number, scope and value of client
assignments scheduled and completed during the respective periods. The decrease
in revenues for OMI of $813,000 for the nine months ended October 31, 2006 as
compared to revenues for the nine months ended October 31, 2005 was principally
due to a decrease in client assignments completed during the period. The nature
of iDNA'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 terms
of scope of work, size of project and the ultimate revenues derived.

     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 HC and hired four communication and administrative
professionals, in an effort to expand its communications program services in the
pharmaceutical and medical services industries.

     To date, the efforts of iDNA's new marketing strategists have not yet
translated into incremental new revenues for iDNA. As a consequence, iDNA has
replaced certain of its marketing strategists during the three months ended
October 31, 2006 in an effort to achieve incremental new revenues. 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 nine months ended
October 31, 2006 were $6.9 million and were comprised principally of cost of
revenues derived from operations of The Campus Group, iDNA HC, OMI and OTI, with
(i) The Campus Group's cost of revenues of $4.0 million, (ii) iDNA HC's cost of
revenues of $301,000, (iii) OMI's cost of revenues of $1.0 million, and (iv)
OTI's cost of revenues of $1.6 million. Cost of revenues for nine months ended
October 31, 2005 were $5.2 million and were comprised principally of (i) The
Campus Group's cost of revenues of $3.6 million and (ii) OMI's cost of revenues
of $1.6 million. The average gross margin for the nine months ended October 31,
2006 and October 31, 2005 was 40.9% and 42.7%, respectively.

     The aggregate increase in gross profit of $955,000 for the nine months
ended October 31, 2006 as compared to the nine months ended October 31, 2005 was
due principally to the net effects of (i) an increase in revenues due to the
acquisition of OTI and the formation of iDNA HC, offset by (ii) a decrease in
gross profit at The Campus Group and OMI. The aggregate average gross margins
for The Campus Group decreased by 9.4% for the nine months ended October 31,
2006 as compared to the nine months ended October 31, 2005, which can be
attributed principally to an unfavorable mix of revenues realized to offset
fixed production overhead costs. The aggregate gross margins for OMI increased
4.8% as a consequence of lower production costs during the nine months ended
October 31, 2006 as compared to the nine months ended October 31, 2005. OTI's
and iDNA HC's aggregate gross margin for the nine months ended October 31, 2006
was 51.5% and 35.9%, respectively.

     Selling, General and Administrative ("SG&A"): For the nine months ended
October 31, 2006, SG&A expense increased $1.3 million to $7.4 million as
compared to $6.0 million for the nine months ended October 31, 2005. The
increase in SG&A expense was due principally to the net effect of (i) $1.2
million in new SG&A expense due to the acquisition of OTI, (ii) $101,000 in new
SG&A due to the launch of iDNA HC, (iii) an increase in The Campus Group SG&A of
$141,000 relating principally to an increase in personnel expenses offset by
(iv) a decrease in OMI SG&A of $9,000, (v) a decrease in iDNA SG&A of $124,000
relating principally to the elimination of certain legal and other settlement
costs (see other income below), offset, by an increase in costs related to
marketing and branding initiatives.

     Income from AFC Investment: iDNA accounts for its investment in AFC using
the equity method. For the nine months ended October 31, 2006 and 2005, iDNA
recorded income of $451,000 and $564,000, respectively, representing iDNA's
share of AFC's net income for the nine months ended September 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):

                                           Nine Months Ended
                                             September 30,
                                           -----------------
                                             2006      2005
                                           -------   -------
Revenues                                    $4,575   $4,615

Film rental                                  1,219    1,033
Operating costs                              1,809    1,743
Depreciation and amortization                  532      584
General and administrative expenses            113      127
                                            ------   ------
                                             3,673    3,487
                                            ------   ------
Net income                                  $  902   $1,128
                                            ======   ======
iDNA's proportionate share of net income    $  451   $  564
                                            ======   ======

     AFC's revenues decreased $40,000 for the nine months ended September 30,
2006 as compared to the nine months ended September 30, 2005, principally as a
result of the net effect of (i) a 2.0% increase in average ticket prices, (ii)
an increase of $56,000 in other, concession and cafe revenues offset by (iii) a
decrease of 4.4% 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 4.2% to 26.6% from 22.4% for the nine months
ended September 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, increased 1.7%
to 39.5% for the nine months ended September 30, 2006, as compared to 37.8% for
the nine months ended September 30, 2005 due principally to the decreased
revenues without a corresponding decrease in operating costs for the nine months
ended September 30, 2006 as compared to the nine months ended September 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 $95,000 for the nine months
ended October 31, 2006 to $579,000 as compared to $484,000 for the nine months
ended October 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.


                                       27



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

     Interest expense abatement: The Base Notes, Trailing Notes and Convertible
Note (each as defined in the accompanying Notes) (collectively, the "Campus
Notes") 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 realized a gain from the abatement
of interest on the promissory notes of $631,000 for the nine months ended
October 31, 2006. 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 nine months ended October 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 nine month periods ended October 31, 2006 and October 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 consummated a Loan and Security Agreement ("Loan
Agreement") with a lender and issued a Promissory Note ("Note") in the principal
amount 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 of the Note and (iii) the
Note bears interest at fourteen percent (14%) 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 or
membership interests 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.


                                       28



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

     The proceeds derived from the Note were used for (i) capital expenditures
of approximately $278,000 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
October 31, 2006, iDNA had unrestricted cash of $1.2 million, 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.

     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 October 31,
2006, iDNA had outstanding obligations under the terms of the OTI Promissory
Notes of $1.2 million and accrued interest of $16,000.

     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 October 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 $312,000.


                                       29



                           iDNA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS - 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 promissory
notes of $631,000 for the nine months ended October 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.

     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 October
31, 2006, the remaining balance of the SBA Loan of $338,000 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.

     In September 2006, OMI consummated equipment financing in the form of a
capital lease with a financing institution to acquire $102,000 in various
digital media production and editing equipment. The capital lease is payable in
monthly installments with the last payment due in July 2009 and bears an implied
interest rate of 10%. The capital lease is collateralized by the digital media
production and editing equipment acquired by OMI. At October 31, 2006, the
remaining balance due under the capital lease was $95,000.

     For the nine months ended October 31, 2006, iDNA's cash and cash
equivalents increased $37,000 due principally to the net effects of (i) proceeds
from AFC distributions of $1.2 million, (ii) proceeds from the issuance of the
Note and a capital lease of $1.0 million and $102,000, respectively, offset by
(iii) cash flows used in operations of $721,000 (iv) capital expenditures of
$533,000, (v) the repayment of debt and due to former OTI Members of $871,000
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 $1.2
million at October 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.


                                       30



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

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). iDNA elected the
prospective method of adopting SFAS No. 123R which requires that compensation
expense be recorded over the remaining periods for what would have been the
remaining fair value under SFAS No. 123 of 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 nine months ended October 31, 2006 of $60,000 and $205,000,
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.

     In September 2006, the Securities and Exchange Commission staff issued
Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial
Statements" ("SAB 108"). SAB 108 provides guidance on quantifying and evaluating
the materiality of unrecorded misstatements. The SEC staff recommends that
misstatements should be quantified using both a balance sheet and income
statement approach and a determination be made as to whether either approach
results in quantifying a misstatement which the registrant, after evaluating all
relevant factors, considers material. The SEC staff will not object if a
registrant records a one-time cumulative effect adjustment to correct
misstatements occurring in prior years that previously had been considered
immaterial based on the appropriate use of the registrant's methodology. SAB 108
is effective for fiscal years ending on or after November 15, 2006. iDNA does
not currently expect SAB 108 to have a material impact on its consolidated
financial position or results of operations.


                                       31



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

Inflation

     Inflation has not had a material adverse impact on iDNA.


                                       32



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 October 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


                                       33



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.


                                       34



                                    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 October 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


                                       35



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
--------------------------------------------------------------------------------
   3.1    Second Amended and Restated Certificate of Incorporation of
          the Company (incorporated by reference to Exhibit 99.1 to the
          Company's Current Report on Form 8-K filed on November 4,
          2005, SEC File No. 1-11601).                                      N/A

   3.2    Second Amended and Restated By-Laws of the Company dated as
          of November 4, 2005 (incorporated by reference to Exhibit
          99.2 to the Company's Current Report on Form 8-K filed on
          November 4, 2005, SEC File No. 1-11601).                          N/A

   3.3    Certificate of Designation, Number, Powers, Preferences and
          Relative, Participating, Optional and Other Special Rights
          and the Qualifications, Limitations, Restrictions, and Other
          Distinguishing Characteristics of the Series A Convertible
          Preferred Stock of the Company, dated as of April 5, 2000
          (incorporated by reference to Exhibit 10.3 to the Company's
          Current Report on Form 8-K filed on April 20, 2000, SEC File
          No. 1-11601).                                                     N/A

   3.4    Certificate of Designations of Series B and C Preferred Stock
          of the Company dated as of December 15, 2000 (incorporated by
          reference to Exhibit 4.1 to the Company's Current Report on
          Form 8-K filed on January 2, 2001, SEC File No. 1-11601).         N/A

   3.5    Certificate of Designation for the Series D Junior
          Participating Preferred Stock of the Company (incorporated by
          reference to Exhibit 4.1 to the Company's Current Report on
          Form 8-K filed on October 9, 2001, SEC File No. 1-11601).         N/A

  31.1    Officer's Certification Pursuant to Section 302 of the
          Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)                       38

  31.2    Officer's Certification Pursuant to Section 302 of the
          Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)                       39

  32.1    Certification of Principal Executive Officer Pursuant to 18
          U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)       40

  32.2    Certification of Principal Financial Officer Pursuant to 18
          U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)       41


                                       36



                                   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: December 14, 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)


                                       37`