**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-QSB**




x**QUARTERLY
      REPORT PURSUANT
      TO SECTION 13 OR 15(d)**


**OF
      THE SECURITIES EXCHANGE ACT OF 1934**




**For
      the Quarterly Period Ended September 30, 2006**




o**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 000-24965






**ADVANCED
      ID CORPORATION**


(Exact
      name of small business issuer as specified in its charter)




**Nevada**
            **46-0439668**(State
                or other jurisdiction
              of
                incorporation or organization)
            (IRS
                Employer
              Identification
                No.)**6143
                - 4 Street SE****,
                Suite 14**
              **Calgary,
                Alberta, Canada******
            **T2H
                2H9**(Address
                of principal
              executive
                office)
            (Postal
                Code)




Issuer's
      telephone number:


**(403)
      264-6300**




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  o






**APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEEDING FIVE
      YEARS**




Check
      whether the registrant has filed all documents and reports required to be filed
      by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the distribution
      of securities under a plan confirmed by a court.




Yes x  No  o







**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





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





As
      of
      December 6, 2006 there were 50,545,330 shares of Class “A” common stock issued
      and outstanding.







**ADVANCED
      ID CORPORATION**


**FORM
      10-QSB**




**For
      the Third Quarter Ended September 30, 2006**









**INDEX**






***Part
      I. Financial Information***




Item
      1.
      Financial Statements




a.
            Consolidated
                Balance Sheetas
                of September 30, 2006 and December 31,
                2005




b.
            Consolidated
                Statementof
                Operationsfor
                the Three and Nine Months Ended September 30, 2006 and
                2005




c.
            Consolidated
                Statement of Cash Flows for the Nine Months Ended September 30, 2006
                and
                2005




d.
            Notes
                to Consolidated Financial
                Statements




Item
      2.
      Management's Discussion and Analysis




Item
      3.
      Controls and Procedures






***Part
      II. Other Information***






Item
      1.
      Legal Proceedings




Item
      2.
      Changes in Securities and Use of Proceeds




Item
      3.
      Defaults upon Senior Securities




Item
      4.
      Submission of Matters to a Vote of Securities Holders




Item
      5.
      Other Information




Item
      6.
      Exhibits and Reports on Form 8-K




***Signatures***




2




***Part
      I. Financial Information*** **Item
      1. Financial Statements**




*Forward
      Looking Information*





Various
      forward-looking statements have been made in this Form 10-QSB. Forward-looking
      statements may also be in the Company's other reports filed under the Securities
      Exchange Act of 1934, in its press releases and in other documents. In addition,
      from time to time, the Company, through its management, may make oral
      forward-looking statements.





Forward-looking
      statements are only expectations, and involve known and unknown risks and
      uncertainties, which may cause actual results in future periods and other future
      events to differ materially from what is currently anticipated. Certain
      statements in this Form 10-QSB, including those relating to the Company's
      expected results, the accuracy of data relating to, and anticipated levels
      of,
      its future revenues, gross margins and earnings, its anticipated cash
      requirements and sources, are forward-looking statements. Such statements
      involve risks and uncertainties, which may cause results to differ materially
      from those set forth in these statements. Factors which may cause actual results
      in future periods to differ from current expectations include, among other
      things, the continued availability of sufficient working capital, the
      availability of adequate sources of capital, the successful integration of
      new
      employees into existing operations, the continued desirability and customer
      acceptance of existing and future products and the success of competitive
      products, the success of the Company's programs to strengthen its operational
      and accounting controls and procedures. In addition to these factors, the
      economic and other factors identified in this Form 10-QSB, including but not
      limited to the risk factors discussed herein and in the Company's previously
      filed public documents could affect the forward-looking statements contained
      in
      herein and therein.





Forward-looking
      statements generally refer to future plans and performance, and are identified
      by the words "believe", "expect", "anticipate", "optimistic", "intend", "aim",
      "will" or the negative thereof and similar expressions. Readers are cautioned
      not to place undue reliance on these forward-looking statements, which speak
      only as of the date of which they are made. The Company undertakes no obligation
      to update publicly or revise any forward-looking statements.





*Financial
      Statements and Notes*





In
      the
      opinion of management, the accompanying unaudited financial statements included
      in this Form 10-QSB reflect all adjustments necessary for a fair presentation
      of
      the results of operations for the periods presented. The results of operations
      for the periods presented are not necessarily indicative of the results to
      be
      expected for the full year.





3


**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      BALANCE SHEETS**





ASSETS
            
            September
                30,
              2006
            
            December
                31, 2005(Unaudited)Current
                AssetsCash
            
            $
            145,268
            
            $
            198,814Trade
                accounts receivable, net of allowance for doubtful
              accounts
                of $5,105 and $4,906
            
            
            76,280
            
            
            123,857Inventory
            
            
            63,770
            
            
            42,142Prepaid
                expenses
            
            
            36,469
            
            
            5,967Total
                current assets
            
            
            321,787
            
            
            370,780Property
                and equipment, net of accumulated depreciation of $84,495 and $36,604,
                respectively
            
            
            160,804
            
            
            48,064Goodwill
            
            
            55,486
            
            
            55,486Total
                other assets
            
            
            216,290
            
            
            103,550Total
                Assets
            
            $
            538,077
            
            $
            474,330LIABILITIES
                AND STOCKHOLDERS’ EQUITY
              
              Current
                LiabilitiesAccounts
                payable
            
            
            102,971
            
            
            145,839Advances
                from related parties
            
            
            104,746
            
            
            137,305Current
                portion of long-term debt - related parties
            
            
            15,399
            
            
            72,026Accrued
                liabilities
            
            
            19,773
            
            
            17,744Total
                current liabilities
            
            
            242,889
            
            
            372,914Long-term
                debt - related parties
            
            
            -
            
            
            12,709Total
                liabilities
            
            
            242,889
            
            
            385,623MINORITY
                INTEREST IN AFG ASIA ENGINEERING
            
            
            31,044
            
            
            24,780COMMITMENTSSTOCKHOLDERS’
                EQUITY:Series
                A preferred stock, $0.01 par; 500,000 shares
              Authorized;
                none issued
            
            
            -
            
            
            -Common
                stock, $0.01 par value, 100,000,000 shares
              authorized,
                50,545,330 and 45,370,343 shares issued
              and
                outstanding, respectively
            
            
            505,453
            
            
            453,703Additional
                paid-in capital
            
            
            5,684,800
            
            
            3,667,163Accumulated
                deficit
            
            
            (5,936,945
            )
            
            (4,072,856
            )Accumulated
                other comprehensive income
            
            
            10,836
            
            
            15,917Total
                stockholders’ equity
            
            
            264,144
            
            
            63,927Total
                Liabilities and Stockholders’ Equity
            
            $
            538,077
            
            $
            474,330





The
      accompanying notes are an integral part of these consolidated financial
      statements.


4











**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**AND
      COMPREHENSIVE LOSS**


**Three
      and Nine Months Ended September 30, 2006 and 2005**


**(Unaudited)**





Three
                Months Ended
              September
                30,
            
            Nine
                Months Ended
              September
                30,2006
            
            2005
            
            2006
            
            2005Revenues
            
            $
            231,763
            
            $
            167,136
            
            $
            639,006
            
            $
            783,467Cost
                of revenues
            
            
            118,787
            
            
            86,459
            
            
            352,178
            
            
            388,681Gross
                profit
            
            
            112,976
            
            
            80,677
            
            
            286,828
            
            
            394,786Research
                and development expense
            
            
            4,809
            
            
            91,275
            
            
            60,751
            
            
            235,781General
                and administrative expense
            
            
            320,020
            
            
            486,980
            
            
            2,076,973
            
            
            861,554Operating
                loss
            
            
            (211,853
            )
            
            (497,578
            )
            
            (1,850,896
            )
            
            (702,549
            )Interest
                income (expense)
            
            
            217
            
            
            (4,398
            )
            
            (6,929
            )
            
            (13,153
            )Loss
                before minority interest
            
            
            (211,636
            )
            
            (501,976
            )
            
            (1,857,825
            )
            
            (715,702
            )Minority
                interest
            
            
            (5,474
            )
            
            (4,434
            )
            
            (6,264
            )
            
            (4,434
            )Net
                loss
            
            
            (217,110
            )
            
            (506,410
            )
            
            (1,864,089
            )
            
            (720,136
            )Other
                comprehensive income (loss):Foreign
                currency translation
            
            
            106
            
            
            1,315
            
            
            (5,079
            )
            
            (5,969
            )Comprehensive
                loss
            
            $
            (217,004
            )
            $
            (505,095
            )
            $
            (1,869,168
            )
            $
            (726,105
            )Net
                loss per share:Basic
                and diluted
            
            $
            (0.00
            )
            $
            (0.01
            )
            $
            (0.04
            )
            $
            (0.02
            )Weighted
                average shares outstanding:Basic
                and diluted
            
            
            50,352,684
            
            
            43,709,200
            
            
            48,435,460
            
            
            42,715,359








The
      accompanying notes are an integral part of these consolidated financial
      statements.


5


**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**Nine
      Months Ended September 30, 2006 and 2005**


**(Unaudited)**





2006
            
            2005CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (1,864,089
            )
            $
            (720,136
            )Adjustments
                to reconcile net loss to cash used in
              operating
                activities:Depreciation
            
            
            47,891
            
            
            8,148Stock
                issued for services
            
            
            442,862
            
            
            123,900Stock
                option expense
            
            
            854,275
            
            
            -Non-cash
                compensation
            
            
            -
            
            
            153,300Minority
                interest
            
            
            6,264
            
            
            4,434Changes
                in assets and liabilities:Trade
                accounts receivable
            
            
            47,577
            
            
            6,004Inventory
            
            
            (21,628
            )
            
            -Other
                current assets
            
            
            (30,502
            )
            
            27,508Accounts
                payable
            
            
            (42,868
            )
            
            101,961Accounts
                payable - related party
            
            
            3,441
            
            
            -Accrued
                expenses
            
            
            2,029
            
            
            -CASH
                FLOWS USED IN OPERATING ACTIVITIES
            
            
            (554,748
            )
            
            (294,881
            )CASH
                FLOWS FROM INVESTING ACTIVITIESPurchase
                of property and equipment
            
            
            (10,631
            )
            
            (2,223
            )CASH
                FLOWS USED IN INVESTING ACTIVITIES
            
            
            (10,631
            )
            
            (2,223
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                from sale of stock
            
            
            308,250
            
            
            75,000Proceeds
                from the exercise of stock options/warrants
            
            
            228,000
            
            
            -Payments
                on loans payable - related parties
            
            
            (19,336
            )
            
            -CASH
                FLOWS PROVIDED BY FINANCING ACTIVITIES
            
            
            516,914
            
            
            75,000EFFECT
                OF EXCHANGE RATE CHANGES
            
            
            (5,081
            )
            
            20,165NET
                INCREASE (DECREASE) IN CASH
            
            
            (53,546
            )
            
            (201,939
            )Cash,
                beginning of period
            
            
            198,814
            
            
            576,484Cash,
                end of period
            
            $
            145,268
            
            $
            374,545CASH
                PAID FOR:Interest
            
            $
            -
            
            $
            -Taxes
            
            $
            -
            
            $
            -NON-CASH
                INVESTING AND FINANCING TRANSACTIONS:Common
                stock issued for debt
            
            $
            86,000
            
            $
            -Common
                stock issued for assets
            
            $
            150,000
            
            $
            -








The
      accompanying notes are an integral part of these consolidated financial
      statements.


6


**ADVANCED
      ID CORPORATION**


**NOTES
      TO CONSOIDATED FINANCIAL STATEMENTS**


**(Unaudited)**





NOTE
      1 -
      BASIS OF PRESENTATION





The
      accompanying unaudited interim financial statements of Advanced ID Corporation
      (“Advanced ID”) have been prepared in accordance with accounting principles
      generally accepted in the United States of America and the rules of the
      Securities and Exchange Commission (“SEC”), and should be read in conjunction
      with the audited financial statements and notes thereto contained in the
      Company’s Annual Report filed with the SEC on Form 10-KSB. In the opinion of
      management, all adjustments, consisting of normal recurring adjustments,
      necessary for a fair presentation of financial position and the results of
      operations for the interim periods presented have been reflected herein. The
      results of operations for our interim periods are not necessarily indicative
      of
      the results to be expected for the full year. Notes to the financial statements
      which would substantially duplicate the disclosure contained in the audited
      financial statements for fiscal 2005, as reported in the 10-KSB/A filed on
      April
      12, 2006, have been omitted.






NOTE
      2 --
      RECLASSIFICATION




Certain
      amounts in the 2005 financial statements have been reclassified to conform
      to
      the 2006 financial statement presentation.




NOTE
      3 -
      COMMON STOCK





During
      the nine months ended September 30, 2006, 1,600,000 stock options were granted
      and vested. The Company has recorded non-cash compensation expense of $854,275
      related to these during the nine months ended September 30, 2006. The options
      have a five year life and an exercise price of $0.50.





The
      fair
      value of each option granted is estimated on the date of grant using the
      Black-Scholes option-pricing model with the following weighted average
      assumptions: dividend yield $0, expected volatility of 158%, risk-free interest
      rate of 5.8%, and expected lives of 5 years.





During
      the nine months ended September 30, 2006, Advanced ID issued a total of
      1,819,485 shares of common stock for consulting services rendered in connection
      with financial public relations and business development, director fees and
      for
      the purchase of software resulting in a non-cash expense of $442,862 and a
      non-cash property and equipment additions of $150,000.





During
      the nine months ended September 30, 2006, 613,334 warrants and 500,000 options
      were exercised resulting in the issuance of 1,113,334 shares of common stock
      for
      cash proceeds of $171,500 and $56,500, respectively.





During
      the nine months ended September 30, 2006, 1,979,010 shares of common stock
      were
      issued for cash proceeds of $308,250. In connection with the sale of 1,818,313
      shares of the common stock issued, Advanced ID issued warrants to purchase
      1,818,331 shares of common stock. The warrants have an exercise price of $0.30
      per share and expire in three years.


7











NOTE
      4 -
      CONCENTRATIONS





The
      Company had gross sales of $639,006 and $783,467 for the nine months ended
      September 30, 2006 and 2005, respectively. Of the amount, $165,000 relates
      to
      sales to one customer for the nine months ending September 30, 2006. For the
      comparable period in 2005 no customer had purchases that exceeded 10% of gross
      sales.






Note
      5 -
      FINANCIAL CONDITION AND GOING CONCERN






Advanced
      ID has incurred losses for the nine months ended September 30, 2006 and the
      year
      ended December 31, 2005 of $1,864,089 and $1,050,205 respectively. Because
      of
      these losses, Advanced ID will require additional working capital to develop
      its
      business operations.




Advanced
      ID intends to raise additional working capital through private placements,
      public offerings and/or bank financing.




There
      are
      no assurances that Advanced ID will be able to either (1) achieve a level of
      revenues adequate to generate sufficient cash flow from operations; or (2)
      obtain additional financing through either private placements, public offerings
      and/or bank financing necessary to support Advanced ID’s working capital
      requirements. To the extent that funds generated from operations and any private
      placements, public offerings and/or bank financing are insufficient, Advanced
      ID
      will have to raise additional working capital. No assurance can be given that
      additional financing will be available, or if available, will be on terms
      acceptable to Advanced ID.





These
      conditions raise substantial doubt about Advanced ID’s ability to continue as a
      going concern. The financial statements do not include any adjustments relating
      to the recoverability and classification of asset carrying amounts or the amount
      and classification of liabilities that might be necessary should Advanced ID
      be
      unable to continue as a going concern.







Note
      6 -
      SIBSEQUENT EVENTS






Effective
      November 1, 2006 the contract of the Executive Vice President and COO was
      terminated. A severance package, including cash and stock compensation, has
      been
      finalized in accordance with the signed employment contract.










8


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





*Results
      of Operations for the Three and Nine Months Ended Sept. 30, 2006 and
      2005*





The
      net
      loss of $217,110 for the quarter ended September 2006 was lower by $289,300
      or
      43% versus last year's comparable quarter. The net loss for the current nine
      months ended September 2006 of $1,864,089 was larger by $1,143,953 or 258%
      as
      compared to the same period in the previous year. Reasons for the lower net
      loss
      during the quarter ended September 2006 resulted from, higher revenues, lower
      research and development expenses and lower general and administrative expenses.
      The significantly higher net loss for the current nine months ended September
      2006 were largely due to lower revenues, higher sales and marketing expense
      and
      higher general and administrative expenses. The specific details of these
      changes are discussed below.





*Revenues*





Revenues
      of $231,763 earned
      during the quarter ended September 30, 2006 were higher by $64,627 or 38% over
      the comparable period last year. This increase in revenues was a result of
      tire
      tag sales to Goodyear Tire and Rubber Company under the existing purchase order
      agreement.





Revenues
      of $639,006 earned during the first nine months of 2006 were lower by $144,461
      or 18% versus the comparable period last year. The decrease in revenues for
      the
      nine months ended September 2006 was due to a $135,000 order received from
      two
      customers in the fisheries industry that did not reoccur during the first
      quarter of 2006.





With
      the
      approval of our ISO standard microchip by the National Companion Animal
      Coalition (NCAC) in September 2005 we anticipate a recovery in sales to this
      sector in the coming months. Increased activity by municipal animal control
      agencies requiring permanent tagging of pets in their respective communities
      should positively impact microchip sales. Additionally in June 2006 Advanced
      ID
      Corporation finalized Strategic Alliance agreements with Petplan Insurance
      (Canada’s oldest and largest pet insurer) and Petlynx Corporation (a leading Pet
      Industry utility), it is anticipated a positive impact on microchip sales will
      result. Our continued focus to expand sales into new markets continues, a second
      purchase order has been completed with one of the largest tire manufacturers
      in
      the world, sales efforts continue with other large tire manufacturers. We
      believe these planned initiatives will continue to elevate our market presence
      and translate into higher revenues for future reporting periods.







*Cost
      of Revenues*





Cost
      of
      Revenues of $118,787 for the quarter ended September 2006 increased by $32,328
      or 37% over the previous year’s comparable period while cost of revenues of
      $352,178 for the first nine months of 2006 decreased by $36,503 or 10%. The
      increase in cost of revenues for the quarter ended September 2006 was due to
      an
      increase in volume of products sold while the decrease in cost of revenues
      for
      the first nine months of 2006 is attributed to a lower volume of products sold
      relative to each respective comparable period.


9








Our
      gross
      margins of 48% during the quarter ended September 2006 was maintained over
      the
      comparable period in 2005.





Our
      gross
      margin of 45% during the first nine months of 2006 was lower by 5% over the
      comparable period in 2005. The decrease in gross margins is attributed to
      implementing the design and manufacturing of our new tire tags.





Research
      and Development





Research
      and development expenses of $4,809 for the quarter ended September 30, 2006
      were
      lower by $86,466 or 95% versus the comparable period last year. For the first
      nine months of 2006, research and development expenses of $60,751 were lower
      by
      $175,030 or 74% than the comparable period in 2005. This decrease is due to
      the
      fact that we have been in the pre-production phase on most of our UHF products
      thereby requiring less development of our DataTRACTM RFID tags and readers. It is
      our expectation that our current research and development expenses will be
      comparable for future reporting periods.





*General
      and Administrative*





For
      the
      quarter ended September 30, 2006, general and administrative expenses of
      $320,023 were lower by $166,957 or 34% over last year’s comparable period
      largely due to $153,300 in lower non-cash compensation, $90,320 in lower
      Investor relation fees and $27,367 in lower consulting and director’s fees,
      these lower costs were offset by increased Public relation costs of $40,647,
      Web
      site cost of $5,985, legal and accounting costs of $6,506 plus increases in
      recovery expenses, rent and gain on currency exchange





For
      the
      first nine months of 2006, general and administrative expenses of $2,076,976
      were higher by $1,215,422 or 241% over the previous year’s comparable period
      largely due to $854,275 in increased stock option expense, $101,500 in higher
      Public Relations fees, $78,973 in higher consulting fees, $59,800 in higher
      Board meeting expense, $42,664 in higher travel costs, $28,000 in higher
      accounting fees, $15,660 in increased depreciation charges, $7,115 in increased
      Press release charges, $9,750 in increased rental charges and $11,985 in
      financing commissions related to related to financings executed in the first
      quarter of 2006. The remaining difference is attributed to increased expenditures on rent, corporate communication charges, and other
      general business expenditures. Directors’,
      Board meeting fees and certain consulting fees were paid in shares of common
      shares.





General
      and administrative expenditures are expected to have peaked now that we have
      implemented sales and marketing initiatives to develop markets for our new
      DataTRACTM RFID technology for both the tire and livestock industry.





*Minority
      Share of Net Income*





On
      July
      1, 2005, Advanced ID concluded an agreement to acquire a 60% interest in AFG
      Asia Engineering Co., Ltd. The minority share of net income of $5,474 represents
      an adjustment to deduct the 40% non-owned interest in AFG Asia Engineering.


10





*Interest
      Expense*





During
      the quarter ended September 2006, interest income of $217 increased by $4,615
      or
      95% when compared to the same quarter last year. The $217 in interest income
      for
      the quarter ended September 2006is a result of income received from notes due
      from employees of Advanced ID Asia Engineering Co. Ltd.





For
      the
      first nine months of 2006, interest expense of $6,929 was lower by $6,224 or
      53%
      versus the comparable period in 2005. Of the total of $6,929 in interest expense
      for the first nine months ended September 2006, $3,138 is non-cash interest
      related to a discount on a Note Payable owing to one of our Directors and $3,791
      is accrued interest related to the same Note Payable








*Liquidity
      and Capital Resources*





As
      at
      September 30, 2005, we had cash and cash equivalents of $145,268.





During
      the first nine months ended September 2006, net cash used in operating
      activities of $554,748 was higher by $259,867 or 88% as compared to last year's
      comparable period. Cash used by operating activities during the first nine
      months of 2006 was for increased activities in the sales and marketing
      activities as well as public relations and investor relations areas.





During
      the first nine months ended September 2006, net cash used by investing
      activities of $10,631 was higher by $8,408 or 478% during the prior year’s
      comparable period. Cash used by investing activities resulted from the purchase
      of office furniture and equipment, and software. We have no commitments for
      future purchases of capital assets.





During
      the first nine months ended September 2006, net cash provided by financing
      activities of $516,914 was higher by $441,914 or 687% as compared to the
      previous year's comparable period. During the first nine months of 2006, we
      completed subscription agreements with investors relative to our approved form
      SB-2 filing approved by the Security and exchange commission on May 12, 2005.





Currently
      in the global livestock industry, countries and regions such as the United
      States, Canada, Taiwan, Australia, New Zealand, Thailand, European Union,
      Argentina and Brazil are considering or have expressed their intent to make
      the
      identification of livestock mandatory. The primary reasons for this action
      are
      to employ a system to improve the speed and accuracy of tracing livestock to
      minimize or eliminate the impact of food safety issues from human consumption
      of
      meat products, and because importing regions such as the European Union, Asia
      and North America are demanding that an identification and trace back system
      is
      in place from the countries in which they import meat products and livestock
      from. This trend is reasonably likely to have a material positive impact on
      our
      long-term revenues, results of operations and liquidity.


11








Our
      internal and external sources of liquidity have included cash generated from
      the
      exercise of options and warrants, proceeds raised from subscription agreements
      and private placements, and advances from related parties. We are currently
      not
      aware of any trends that are reasonably likely to have a material impact on
      our
      liquidity. Our current cash balance is estimated to be sufficient to fund our
      current operations over the next three to four months and will not be sufficient
      to fund our long-term needs. The basis that our cash balance is expected to
      be
      sufficient to fund our current operations over the next three to four months
      is
      based on our current net cash usage rate (cash used offset by cash received)
      which we estimate to be $60,000 to $75,000 per month. It is our intent to secure
      a market share in the livestock and tire identification industries which will
      require additional capital over the long term to undertake sales and marketing
      initiatives, further our research and development, and to manage timing
      differences in cash flows from the time product is manufactured to the time
      it
      is sold and cash is collected from the sale. Our capital
      strategy is to increase our cash balance through financing transactions,
      including the issuance of debt and/or equity securities. On May 12, 2005, the
      SEC declared our Form SB-2 registration statement effective whereby we
      registered common shares and warrants for the purpose of raising capital. No
      firm commitment arrangements have been entered into with the exceptions noted
      above and no assurances can be given that adequate levels of additional funding
      can be obtained on favorable terms, if at all.





**Item
      3. Controls and Procedures**





Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      evaluation of the effectiveness of the design and operation of our disclosure
      controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under
      the
      Securities Exchange Act of 1934, as of the end of the period covered by this
      report (the “Evaluation Date”).  Based on this evaluation, our principal
      executive officer and principal financial officer concluded as of the Evaluation
      Date that our disclosure controls and procedures were effective such that
      material information relating to Advanced ID Corporation, including our
      consolidated subsidiaries, required to be included in our Securities and
      Exchange Commission (“SEC”) reports is recorded, processed, summarized and
      reported within the time periods specified in SEC rules and forms and was made
      known to them by others within Advanced ID Corporation and its consolidated
      subsidiaries, particularly during the period when this report was being
      prepared.




There
      were no changes in our internal control over financial reporting that occurred
      during our last fiscal quarter (our fourth fiscal quarter in the case of an
      annual report) that has materially affected, or is reasonably likely to
      materially affect, our internal control over financial reporting.








***Part
      II. Other Information***





**Item
      1. Legal Proceedings**





There
      are
      currently no pending or threatened legal proceedings which involve us or against
      any of our officers or directors as a result of their capacities with Advanced
      ID Corporation.





**Item
      2. Changes in Securities and Use of Proceeds**





Recent
      Sales of Unregistered Securities





On
      January 4, 2005, we issued 100,000 options to one of our employees with an
      exercise price of $0.38, the closing bid price on the date the options were
      issued.


12





During
      January and February 2005, we issued a total of 60,000 shares of our common
      stock to Financial Capital Consultants for consulting services rendered in
      connection with financial public relations and business
      development.





On
      June
      29, 2005, we cancelled a previous issuance of 100,000 warrants to an investor
      and replaced them with 900,000 warrants with an exercise price of $.40 per
      warrant and which are exercisable anytime until January 12, 2009.





On
      July
      1, 2005, Advanced ID issued 291,667 shares and 58,333 shares of Common Stock
      to
      Gottfried Auer and Mayuree Moonros to acquire a 60% interest in AFG Asia
      Engineering Co., Ltd.





On
      July
      21, 2005, Advanced ID issued a total of 400,000 shares of Common Stock to
      Financial Capital Consultants for consulting services rendered in connection
      with financial public relations and business development. Advanced ID recorded
      a
      non-cash expense of $84,000 related to these shares. The shares were valued
      based on the closing price on the date they were awarded.





On
      July
      21, 2005, Advanced ID issued a total of 730,000 shares of Common Stock to five
      employees and consultants as compensation for past services. Advanced ID
      recorded a non-cash expense of $153,300 related to these shares. The shares
      were
      valued based on the closing price on the date they were awarded.





On
      July
      21, 2005, Advanced ID issued a total of 100,000 shares of Common Stock to the
      directors as compensation for services performed. Advanced ID recorded a
      non-cash expense of $21,000 related to these shares. The shares were valued
      based on the closing price on the date they were deemed awarded.





On
      July
      21, 2005, Advanced ID issued a total of 1,000,000 options to the directors
      that
      included Hubert Meier, Che Ki Li, Terry Fields, Seymour Kazimirski and David
      Goldenberg for services performed as such.





On
      September 29, 2005, Advanced ID issued a total of 375,000 shares of Common
      Stock
      to three investors for cash proceeds totaling $75,000. In connection with the
      sale of the 375,000 shares of common stock, Advanced ID issued warrants to
      acquire 375,000 shares of common stock at $0.40 per share for a period of three
      years. No expense was recorded in the quarter related to the issuance of these
      warrants or common stock because the issuances related to fund raising
      costs.





On
      October 17, 2005, Advanced ID issued a total of 125,000 shares of Common Stock
      to one investor for cash proceeds totaling $25,000. In connection with the
      sale
      of the 125,000 shares of common stock, Advanced ID issued warrants to acquire
      125,000 shares of common stock at $0.40 per share for a period of three
      years.





On
      October 20, 2005, Advanced ID amended its subscription agreements with the
      four
      investors noted above. As a result, each investor received an additional 41,667
      shares of Common Stock and an additional 41,667 warrants. The exercise price
      of
      the warrants was also amended to $0.30 per share.





On
      October 27, 2005, Advanced ID issued a total of 286,667 shares of Common Stock
      to four investors for cash proceeds totaling $43,000. In connection with the
      sale of the 286,667 shares of common stock, Advanced ID issued warrants to
      acquire 286,667 shares of common stock at $0.30 per share for a period of three
      years.


13








On
      November 7, 2005, Advanced ID issued a total of 26,667 shares of Common Stock
      to
      one investor for cash proceeds totaling $4,000. In connection with the sale
      of
      the 26,667 shares of common stock, Advanced ID issued warrants to acquire 26,667
      shares of common stock at $0.30 per share for a period of three
      years.





On
      November 18, 2005, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years.





On
      November 21, 2005, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years.





On
      November 24, 2005, Advanced ID issued a total of 200,000 shares of Common Stock
      to one investor for cash proceeds totaling $30,000. In connection with the
      sale
      of the 200,000 shares of common stock, Advanced ID issued warrants to acquire
      200,000 shares of common stock at $0.30 per share for a period of three
      years





On
      December 7, 2005, Advanced ID issued a total of 15,000 shares of Common Stock
      to
      one investor for cash proceeds totaling $2,250. In connection with the sale
      of
      the 15,000 shares of common stock, Advanced ID issued warrants to acquire 15,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      December 16, 2005, Advanced ID issued a total of 200,000 shares of Common Stock
      to one investor for cash proceeds totaling $30,000. In connection with the sale
      of the 200,000 shares of common stock, Advanced ID issued warrants to acquire
      200,000 shares of common stock at $0.30 per share for a period of three
      years





Except
      as
      noted, all of the securities issued in 2005 were issued pursuant to an exemption
      from registration under Section 4(2) of the Securities Act of 1934 to
      sophisticated investors.





**(iv)
      Fiscal 2006 Transactions**





On
      February 10, 2006, Advanced ID issued a total of 200,000 shares of Common Stock
      to one investor for cash proceeds totaling $30,000. In connection with the
      sale
      of the 200,000 shares of common stock, Advanced ID issued warrants to acquire
      200,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 10, 2006, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 10, 2006, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years


14








On
      February 10, 2006, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 14, 2006, Advanced ID issued a total of 300,000 shares of Common Stock
      to one investor for cash proceeds totaling $30,000. In connection with the
      sale
      of the 300,000 shares of common stock, Advanced ID issued warrants to acquire
      300,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 20, 2006, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 20, 2006, Advanced ID issued a total of 20,000 shares of Common Stock
      to one investor for cash proceeds totaling $3,000. In connection with the sale
      of the 20,000 shares of common stock, Advanced ID issued warrants to acquire
      20,000 shares of common stock at $0.30 per share for a period of three
      years





On
      February 22, 2006, Advanced ID issued a total of 100,000 shares of Common Stock
      to one investor for cash proceeds totaling $15,000. In connection with the
      sale
      of the 100,000 shares of common stock, Advanced ID issued warrants to acquire
      100,000 shares of common stock at $0.30 per share for a period of three
      years





On
      March
      2, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      March
      6, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      March
      9, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      March
      17, 2006, Advanced ID issued a total of 100,000 shares of common stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $.30 per share for a period of three
      years





On
      March
      23, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      March
      23, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $15,000. In connection with the sale of
      the
      100,000 shares of common stock, Advanced ID issued warrants to acquire 100,000
      shares of common stock at $0.30 per share for a period of three
      years


15








On
      March
      23, 2006, Advanced ID issued a total of 200,000 shares of Common Stock to one
      investor for cash proceeds totaling $30,000. In connection with the sale of
      the
      200,000 shares of common stock, Advanced ID issued warrants to acquire 200,000
      shares of common stock at $0.30 per share for a period of three
      years





On
      March
      30, 2006, Advanced ID issued a total of 84,998 shares of Common Stock to one
      investor for cash proceeds totaling $12,750. In connection with the sale of
      the
      84,998 shares of common stock, Advanced ID issued warrants to acquire 84,998
      shares of common stock at $0.30 per share for a period of three
      years.





On
      March
      31, 2006, Advanced ID Corporation issued a total of 15,000 shares of common
      stock to Salmon Creek Public Relations Inc. for consulting services rendered
      in
      connection with public relations and business development.





On
      April
      3, 2006, Advanced ID issued a total of 500,000 shares of Common Stock to our
      computer consultant to acquire all computer source code for all programs
      developed to date; $150,000 was capitalized related to these
      shares.





On
      April
      6, 2006, Advanced ID issued a total of 55,000 shares of Common Stock to one
      investor for cash proceeds totaling $16,500 in connection with the exercising
      of
      a portion of warrants acquired in 2005. The exercise period of warrants when
      issued was three years.





On
      April
      10, 2006, Advanced ID issued 250,000 shares of our Common Stock to one of our
      employees who exercised 250,000 options at $.10 per option for total proceeds
      of
      $25,000.





On
      April
      10, 2006, Advanced ID issued 200,000 shares of our Common Stock to our former
      CFO & director who exercised 200,000 options at $.10 per option for total
      proceeds of $20,000.





On
      April
      12, 2006, Advanced ID issued a total of 200,000 shares of Common Stock to two
      investors for cash proceeds totaling $60,000. In connection with the exercising
      of all warrants acquired in 2005. The exercise period of warrants when issued
      was three years.





On
      April
      18, 2006, Advanced ID issued a total of 66,667 shares of Common Stock to one
      investor for cash proceeds totaling $20,000. In connection with the exercising
      of a portion of warrants acquired in 2005. The exercise period of warrants
      when
      issued was three years.





On
      April
      18, 2006, Advanced ID issued a total of 41,667 shares of Common Stock to one
      investor for cash proceeds totaling $12,500. In connection with the exercising
      of all warrants acquired in 2005. The exercise period of warrants when issued
      was three years.





On
      May
      24, 2006, Advanced ID issued 50,000 shares of our Common Stock to a director
      who
      exercised 50,000 options at $.23 per option for total proceeds of
      $11,500.





On
      May
      28, 2006, Advanced ID issued 513,158 shares of our Common Stock to a director
      who exercised 250,000 warrants at $.25 per warrant for cash proceeds of $62,500
      and 263,158 shares in consideration for repayment of $86,000 in
      debt.





On
      June
      16, 2006, Advanced ID issued a total of 50,000 shares of Common Stock to five
      directors as compensation for services performed. Advanced ID recorded a
      non-cash expense of $30,000 related to these shares. The shares were valued
      based at the average closing price for the month in which the board meeting
      was
      held.


16








On
      June
      16, 2006, Advanced ID issued a total of 962,983 shares of Common Stock to four
      directors as compensation for services performed. Advanced ID recorded a
      non-cash expense of $209,700 related to these shares. The shares were valued
      based at the average closing price for the month in which the board meeting
      was
      held.





On
      June
      16, 2006, Advanced ID issued a total of 10,000 shares of Common Stock to an
      employee as compensation for services performed. Advanced ID recorded a non-cash
      expense of $4,000 related to these shares. The shares were valued based at
      the
      average closing price for the month in which the board meeting was
      held.





On
      April
      24, 2006, Advanced ID issued a total of 1,200,000 options to the directors
      that
      included Hubert Meier, Che Ki Li, Terry Fields, Seymour Kazimirski, David
      Goldenberg and Dan Finch for services performed as such.





On
      April
      24, 2006, Advanced ID issued a total of 400,000 options to three employees
      and
      one consultant for services performed.





On
      June
      16, 2006 Advanced ID Corporation cancelled 25,000 shares of stock issued to
      one
      employee that was not awarded.





On
      July
      17, 2006, Advanced ID issued a total of 100,000 shares of Common Stock to one
      investor for cash proceeds totaling $23,000.





On
      July
      1, 2006, Advanced ID issued a total of 50,000 shares of Common Stock to one
      employee as compensation. Advanced ID recorded a non-cash expense of $17,000
      related to these shares.





On
      August
      31, 2006, Advanced ID issued a total of 3,435 shares of Common Stock for
      consulting services. Advanced ID Corporation recorded a non-cash expense of
      $996
      related to these shares





On
      August
      25, 2006, Advanced ID issued a total of 60,679 shares of Common Stock to two
      investors for cash proceeds totaling $12,500.





On
      September 14, 2006, Advanced ID issued a total of 120,000 shares of Common
      Stock
      to Spirit Holdings Inc. for consulting services rendered in connection with
      financial public relations and business development. Advanced ID recorded a
      non-cash expense of $33,600 related to these shares. The shares were valued
      based on the closing price on the date they were awarded.





On
      September 21, 2006, Advanced ID issued a total of 46,400 shares of Common Stock
      for contract engineering services. Advanced ID Corporation recorded a non-cash
      expense of $11,600 related to these shares.





All
      of
      the securities issued above were issued pursuant to an exemption from
      registration under Section 4(2) of the Securities Act of 1934.





**Item
      3. Defaults upon Senior Securities**





None.


17








**Item
      4. Submission of Matters to a Vote of Security Holders**





On
      July
      21, 2005, we held our Annual General Meeting of shareholders for the purpose
      of
      re-electing the Board of Directors, re-appointing the auditors, Lopez, Blevins,
      Bork & Associates, LLP, and changing the corporate domicile from South
      Dakota to Nevada. Shareholders approved all three proposals.





**Item
      5. Other Information**





None.





18


**Item
      6. Exhibits and Reports on Form 8-K**





(a)  Exhibits





(3)  Articles
      of Incorporation, By-Laws and Stock Option Plan.


(i)  Articles
      of Incorporation. 1


(ii)  By-Laws. 1


(iii)  Stock
      Option and Incentive Plan. 1





(10)  Material
      Contracts.





(i)  Employment
      agreement with Dan Finch. 1




(11)  Statement
      of Computation of Per Share Earnings. 2





This
      Computation appears in the Financial Statements.





(21)  Subsidiaries
      of the Registrant.




(i)AVID
      Canada Corporation, an Alberta private company incorporated on November 26,
      1993
      is wholly owned by the registrant.




(ii)
        Universal Pet Care, Inc., a Hawaii private company incorporated on August
        25,
        1994 is wholly owned by the registrant.


(31)  CEO
      and
      CFO Certifications. 2





(32)  CEO
      and
      CFO Certifications Pursuant to Sarbanes-Oxley Act. 2





1 Filed
      previously.


2 Filed
      herewith.




(b)  Reports
      on Form 8-K





Change
      in
      Domicile filed May 30, 2006.











19


**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.




**Advanced
              ID Corporation**(Registrant)Dated:December
                6, 2006
            By:
            Daniel
                W. FinchDaniel
                W. FinchChief
                Executive Officer and PresidentBy:
            /s/
                David M. GoldenbergDavid
                M. GoldenbergInterim
                Chief Financial Officer, Treasurer and Secretary(As
                a duly authorized officer on behalf of theRegistrant
                and as Principal Financial and Accounting
                Officer)


20