**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 June 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 o  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
      August 18, 2006 there were 50,264,816 shares of Class “A” common stock issued
      and outstanding.







**ADVANCED
      ID CORPORATION**


**FORM
      10-QSB**









**INDEX**









***Part
      I. Financial Information***




Item
      1.
      Financial Statements




a.
            Consolidated
                Balance Sheetas
                of June 30, 2006 (unaudited) and December 31,
                2005




b.
            Consolidated
                Statementfor
                the Three and Six Months Ended June 30, 2006 and 2005
                (unaudited)




c.
            Consolidated
                Statement of Cash Flows for the Six Months Ended June 30, 2006 and
                2005
                (unaudited)




d.
            Notes
                to Consolidated Financial Statements
                (unaudited)




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***







***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, 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.








**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      BALANCE SHEETS**





ASSETS
            
            June
                30,
              2006
            
            December
                31,
              2005(Unaudited)Current
                AssetsCash
            
            $
            288,967
            
            $
            198,814Trade
                accounts receivable, net of allowance for doubtful
              accounts
                of $5,706 and $4,906
            
            
            82,391
            
            
            123,857Inventory
            
            
            44,308
            
            
            42,142Prepaid
                expenses
            
            
            5,470
            
            
            5,967Total
                current assets
            
            
            421,136
            
            
            370,780Property
                and equipment, net of accumulated depreciation of $62,635 and $36,604,
                respectively
            
            
            182,000
            
            
            48,064Goodwill
            
            
            55,486
            
            
            55,486Total
                other assets
            
            
            237,486
            
            
            103,550Total
                Assets
            
            $
            658,622
            
            $
            474,330LIABILITIES
              AND
              STOCKHOLDERS’ EQUITYCurrent
                LiabilitiesAccounts
                payable
            
            
            97,782
            
            
            145,839Advances
                from related parties
            
            
            83,639
            
            
            137,305Current
                portion of loans payable - related parties
            
            
            13,614
            
            
            72,026Accrued
                liabilities
            
            
            56,956
            
            
            17,744Total
                Current Liabilities
            
            
            251,991
            
            
            372,914Loans
                payable - related parties
            
            
            -
            
            
            12,709Total
                liabilities
            
            
            251,991
            
            
            385,623MINORITY
                INTEREST IN AFG ASIA ENGINEERING
            
            
            25,570
            
            
            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,
                50,164,816 and 45,370,343 shares issued
              and
                outstanding, respectively
            
            
            501,648
            
            
            453,703Additional
                paid-in capital
            
            
            5,588,517
            
            
            3,667,163Accumulated
                deficit
            
            
            (5,719,834
            )
            
            (4,072,856
            )Accumulated
                other comprehensive income
            
            
            10,730
            
            
            15,917Total
                stockholders’ equity
            
            
            381,061
            
            
            63,927Total
                Liabilities and Stockholders’ Equity
            
            $
            658,622
            
            $
            474,330





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











**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**AND
      COMPREHENSIVE LOSS**


**Three
      and Six Months Ended June 30, 2006 and 2005**


**(Unaudited)**





Three
                Months Ended
              June
                30,
            
            Six
                Months Ended
              June
                30,2006
            
            2005
            
            2006
            
            2005Revenues
            
            $181,007
            
            $274,849
            
            $407,243
            
            $616,331Cost
                of revenues
            
            
            119,990
            
            
            114,791
            
            
            233,391
            
            
            302,222Gross
                profit
            
            
            61,017
            
            
            160,058
            
            
            173,852
            
            
            314,109Research
                and development expense
            
            
            29,012
            
            
            56,482
            
            
            55,942
            
            
            144,506General
                and administrative expense
            
            
            1,386,732
            
            
            165,409
            
            
            1,756,953
            
            
            374,574Operating
                loss
            
            
            (1,354,727
            )
            
            (61,833
            )
            
            (1,639,043
            )
            
            (204,971
            )Interest
                expense
            
            
            (3,393
            )
            
            (4,386
            )
            
            (7,146
            )
            
            (8,755
            )Loss
                before minority interest
            
            
            (1,358,120
            )
            
            (66,219
            )
            
            (1,646,189
            )
            
            (213,726
            )Minority
                interest
            
            
            1,598
            
            
            -
            
            
            (790
            )
            
            -Net
                loss
            
            
            (1,356,522
            )
            
            (66,219
            )
            
            (1,646,979
            )
            
            (213,726
            )Other
                comprehensive income (loss):Foreign
                currency translation
            
            
            3,690
            
            
            8,557
            
            
            (5,185
            )
            
            7,840Comprehensive
                loss
            
            $
            (1,352,832
            )
            $
            (57,662
            )
            $
            (1,652,164
            )
            $
            (205,886
            )Net
                loss per share:Basic
                and diluted
            
            $
            (0.03
            )
            $
            (0.00
            )
            $
            (0.03
            )
            $
            (0.01
            )Weighted
                average shares outstanding:Basic
                and diluted
            
            
            48,896,230
            
            
            42,215,341
            
            
            47.460,960
            
            
            42,210,203










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









**ADVANCED
      ID CORPORATION**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**Six
      Months Ended June 30, 2006 and 2005**


**(Unaudited)**





2006
            
            2005CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (1,646,979
            )
            $
            (213,726
            )Adjustments
                to reconcile net loss to cash used in
              operating
                activities:Depreciation
            
            
            26,031
            
            
            5,307Increase
                in allowance for doubtful accounts
            
            
            800
            
            
            -Stock
                issued for services
            
            
            378,275
            
            
            18,900Stock
                options issued for services
            
            
            854,275
            
            
            -Minority
                interest
            
            
            790
            
            
            -Changes
                in assets and liabilities:Trade
                accounts receivable
            
            
            40,666
            
            
            (25,092
            )Inventory
            
            
            (2,166
            )
            
            -Prepaid
                expenses
            
            
            497
            
            
            12,001Accounts
                payable
            
            
            (48,059
            )
            
            -Accounts
                payable - related party
            
            
            (17,666
            )
            
            -Accrued
                expenses
            
            
            39,212
            
            
            (28,577
            )CASH
                FLOWS USED IN OPERATING ACTIVITIES
            
            
            (374,324
            )
            
            (231,187
            )CASH
                FLOWS FROM INVESTING ACTIVITIESPurchase
                of property and equipment
            
            
            (9,967
            )
            
            (1,452
            )CASH
                FLOWS USED IN INVESTING ACTIVITIES
            
            
            (9,967
            )
            
            (1,452
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                from sale of stock
            
            
            272,750
            
            
            -Proceeds
                from the exercise of stock options/warrants
            
            
            228,000
            
            
            -Payments
                on loans payable - related parties
            
            
            (21,121
            )
            
            -CASH
                FLOWS PROVIDED BY FINANCING ACTIVITIES
            
            
            479,629
            
            
            -EFFECT
                OF EXCHANGE RATE CHANGES
            
            
            (5,185
            )
            
            (5,566
            )NET
                INCREASE (DECREASE) IN CASH
            
            
            90,153
            
            
            (238,205
            )Cash,
                beginning of period
            
            
            198,814
            
            
            576,484Cash,
                end of period
            
            $
            288,967
            
            $
            338,279NON-CASH
                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.









**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
      with
      the 2006 financial statement presentation.







NOTE
      3 -
      COMMON STOCK





During
      the six months ended June 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 six months ended June 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 six months ended June 30, 2006, Advanced ID issued a total of 1,599,650
      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 $378,275 and a non-cash
      property and equipment additions of $150,000.





During
      the six months ended June 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 six months ended June 30, 2006, 1,818,331 units were issued for cash
      proceeds of $272,750. Each unit consists of one common share and one common
      stock warrant.

















NOTE
      4 -
      CONCENTRATIONS





The
      Company had gross sales of $407,243 for the six months ended June 30, 2006.
      The
      Company has one customer that represented 26% of the gross sales for the six
      months period.








NOTE
      5 -
      SUBSEQUENT EVENT





Subsequent
      to June 30, 2006, Advanced ID issued a total of 100,000 common shares for cash
      proceeds of $23,000.






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





*Results
      of Operations for the Three and Six Months Ended June 30, 2006 and
      2005*





The
      net
      loss of  $1,356,522
      the quarter ended June 30, 2006 was higher by $1,290,303 or 2,050%% versus
      last
      year's comparable quarter. The net loss for the current six months ended June
      2006 of $1,646,979 was larger by $1,433,253 or 770% as compared to the same
      period in the previous year. Reasons for the significantly lower net loss were
      largely due to lower revenues, higher general and administrative expenses,
      lower
      research and development expenses. The specific details of these changes are
      discussed below.





*Revenues*





Revenues
      of $181,007 earned during the quarter ended June 30, 2006 were lower by
      $ 93,842
      or
      34% over the comparable period last year. This decrease in revenues was due
      to
      lower sales of pet microchips as a permanent solution for the identification
      of
      animals.





Revenues
      of $407,243 earned during the first six months of 2006 were lower by $209,088
      or
      34% versus the comparable period last year. The decrease in revenues for the
      six
      months ended June 2006 was due to the reason cited above and because a $135,000
      order received from two customers in the fisheries industry during the first
      quarter of 2005 did not reoccur in 2006. The first 6 months of 2006 show a
      $27,456 improvement over the first 6 months of 2005. Similar orders from the
      fisheries industry have generally occurred in the fourth quarter in prior years.
      77% of our revenues earned during the first six months of 2006 were entirely
      from our companion animal/biological sciences division and 23% were from sales
      of UHF tire tags to one large tire manufacturer, it is anticipated additional
      purchase orders will be completed in the coming months resulting in increased
      revenues.





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 of Ultra High Frequency (UHF)
      identification tags 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 $119,990 for the quarter ended June 30, 2006 increased by $5,199
      or
      5% over the previous year’s comparable period while cost of revenues of $233,391
      for the first six months of 2006 decreased by $68,831 or 23%. The increase
      in
      cost of revenues is attributed to a change in the mix of products being sold.





Research
      and Development





Research
      and development expenses of $29,012 and $55,942 for the quarter ended June
      30,
      2006 and for the first six months of 2006 respectively, decreased by $27,470
      or
      49% and $88,564 or 61% over last year’s comparable periods. This decrease is due
      to the fact that we are in the pre-production phase on most of our products
      thereby requiring less development of our DataTRACTM RFID tags and readers. It is
      our expectation that our research and development expenses will be comparable
      for future reporting periods.





*General
      and Administrative*





For
      the
      quarter ended June 30, 2006, general and administrative expenses of $1,386,732
      were higher by $1,221,323 or 838% over last year’s comparable period largely due
      to $24,465 in higher accounting fees, $20,252 in higher Public Relations expense
      and $257,327 to directors in higher consulting expenses and meeting
      fees.





For
      the
      first six months of 2006, general and administrative expenses of $1,756,953
      were
      higher by $1,382,379 or 469% over the previous year’s comparable period largely
      due to $27,649 in higher accounting fees, $81,146 in higher Investor and Public
      Relations fees, $11,775 Financing commissions and $217,431 in Directors’ meeting
      and compensation fees, a $6,500 increase in rental costs were also recorded
      over
      the same period. The compensation to directors was paid with common
      shares.


There
      was
      a significant increase in the sales and marketing expenses as the company
      focused on implementing a strong sales strategy resulting in a $66,402 increase
      over the first six months of 2005.





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





*Interest
      Expense*





During
      the quarter ended June 30, 2006, interest expense of $3,393 decreased by $993
      or
      7% when compared to the same quarter last year. Of the total of $3,393 in
      interest expense for the quarter ended June 30, 2006, $1,046 is non-cash
      interest related to a discount on a Note Payable owing to one of our Directors
      and $410 is accrued interest related to the same Note Payable.








For
      the
      first six months of 2005, interest expense of $7,146 was lower by $1,609 or
      2%
      versus the comparable period in 2005. Of the total of $7,146 in interest expense
      for the first six months ended June 30, 2006, $4,184 is non-cash interest
      related to a discount on a Note Payable owing to one of our Directors and $1,643
      is accrued interest related to the same Note Payable.





As
      at
      June 30, 2006, all term debt had been converted to restricted shares in the
      company.





*Liquidity
      and Capital Resources*





As
      at
      June 30, 2006, we had cash and cash equivalents of $288,967.





During
      the first six months ended June 30, 2006, net cash used in operating activities
      of $374,322 was higher by $143,135 or 40% as compared to last year's comparable
      period. Cash used by operating activities during the current six months resulted
      primarily from our increase in sales, marketing, public relations and Investor
      relations expenses.





During
      the first six months ended June 30, 2006 ,
      net
      cash used by investing activities of $9,967 was higher by $8,515 or 586% during
      the prior year’s comparable period. Cash used by investing activities resulted
      from our purchase of office furniture and equipment, and computer hardware. We
      have
      no commitments for future purchases of capital assets.





During
      the first six months ended June 30, 2006, net cash provided by financing
      activities of $479,629 was higher by $479,629 as compared to the previous year's
      comparable period.





Currently
      in the global livestock industry, countries such as the United States, 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 nations 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.





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 with the exception of NCAC approval of our ISO products for the
      companion animal industry in Canada as discussed above. Our current cash balance
      is estimated to be sufficient to fund our current operations over the next
      three
      to six 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 two to three 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
      identification industry 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. As
      of
      March 30, 2006, 100% of the SB-2 common shares had been purchased, as of April
      18, 2006, 363,334 or 10% of the warrants had been exercised. No firm
      arrangements have been entered into to date for a future financing 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 significant 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.





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.





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





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





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.





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.








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.





**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, LBB &
Associates Ltd., LLP (name changed from Lopez, Blevins Bork & Associates,
      LLP), and changing the corporate domicile from South Dakota to Nevada. All
      three
      proposals were approved by shareholders.





**Item
      5. Other Information**





None.





**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.





Acquisition
      Agreement to acquire 60% interest in AFG Asia Engineering Co., Ltd. 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.

















**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)Date: August
              21, 2006
            By:
            /s/
              Dan
              FinchDan
                Finch
              Director,
                Chief Executive Officer and PresidentBy:
            /s/ David M.GoldenbergDavid M.Goldenberg
              Interim
                Chief Financial Officer, Treasurer and Secretary
              (As
                  a duly authorized officer on behalf of the
                Registrant
                  and as Principal Financial and Accounting Officer)