**UNITED
STATES**
 **SECURITIES
AND EXCHANGE COMMISSION**
 **WASHINGTON,
D.C. 20549**
  
  **Amendment
1 to** **FORM
10-QSB**
  **xQUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d)**
 **OF
THE SECURITIES EXCHANGE ACT OF 1934**
  **For
the Quarterly Period Ended March 31, 2005**
  **oTRANSITION 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)
  **South
      Dakota**
    **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 May 8,
2005 there were 42,215,341 shares of Class “A” common stock issued and
outstanding.
  
   **ADVANCED
ID CORPORATION**
  **FORM
10-QSB/A**
  **For
the First Quarter Ended March 31, 2005**
  
  **INDEX**
  ***Part
I. Financial Information***
   Item 1.
Financial Statements
  a.
    Consolidated Balance Sheetas
      of March 31, 2005 and December 31, 2004
 
 b.
    Consolidated
      Statementof
      Operationsfor
      the Three Months Ended March 31, 2005 and
2004
  c.
    Consolidated
      Statement of Cash Flows for the Three Months Ended March 31, 2005 and
      2004
  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***
   
  ***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 SHEET**
 
 ASSETS
    
    March
      31, 2005
    
    December
      31, 2004(Unaudited)Current
      AssetsCash
    
    $
    396,110
    
    $
    576,484Trade
      accounts receivable, net of allowance for doubtfulaccounts
      of $4,717
    
    
    82,361
    
    
    51,952Inventory
    
    
    91,428
    
    
    78,895Prepaid
      expenses
    
    
    3,721
    
    
    3,738Total
      Current Assets
    
    
    573,620
    
    
    711,069Property
      and equipment, net
    
    
    23,141
    
    
    25,235Total
      assets
    
    $
    596,761
    
    $
    736,304LIABILITIES
      AND STOCKHOLDERS’ EQUITYCurrent
      LiabilitiesAccounts
      payable
    
    $
    91,384
    
    $
    90,615Advanced
      from related parties
    
    
    50,472
    
    
    46,268Accrued
      liabilities
    
    
    46,310
    
    
    61,502Total
      Current Liabilities
    
    
    188,166
    
    
    198,385COMMITMENTSSTOCKHOLDERS’
      EQUITY:Series
      A preferred stock, $0.01 par; 500,000 sharesauthorized
      none issued
    
    
    -
    
    
    -Common
      stock, $0.01 par value, 100,000,000 sharesauthorized,
      42,215,341 and 42,155,341 shares issuedand
      outstanding
    
    
    422,153
    
    
    421,553Additional
      paid-in capital
    
    
    3,131,863
    
    
    3,113,563Accumulated
      deficit
    
    
    (3,170,158
    )
    
    (3,022,651
    )Accumulated
      other comprehensive income
    
    
    24,737
    
    
    25,454Total
      Stockholders’ Equity
    
    
    408,595
    
    
    537,919Total
      Liabilities and Stockholders’ Equity
    
    $
    596,761
    
    $
    736,304
 
  
  **ADVANCED
ID CORPORATION**
 **CONSOLIDATED
STATEMENTS OF OPERATIONS**
 **AND
COMPREHENSIVE LOSS**
 **Three
Months Ended March 31, 2005 and 2004**
 **(Unaudited)**
 
 2005
    
    2004Revenues
    
    $
    341,483
    
    $
    188,303Cost
      of revenues
    
    
    187,431
    
    
    84,179Gross profit
    
    
    154,052
    
    
    104,124Research
      and development expense
    
    
    88,024
    
    
    23,691General,
      administrative and selling expense
    
    
    209,165
    
    
    323,499Operating loss
    
    
    (143,137
    )
    
    (243,066
    )Interest
      expense
    
    
    (4,370
    )
    
    (441,726
    )Net
      loss
    
    
    (147,507
    )
    
    (684,792
    )Other
      comprehensive income (loss):Foreign currency translation
    
    
    (717
    )
    
    (4,653
    )Comprehensive
      loss
    
    $
    (148,224
    )
    $
    (689,445
    )Basic
      and diluted net loss per share
    
    $
    (0.00
    )
    $
    (0.00
    )Weighted
      average shares outstanding
    
    
    42,205,008
    
    
    38,948,236
   
  **ADVANCED
ID CORPORATION**
 **CONSOLIDATED
STATEMENTS OF CASH FLOWS**
 **Three
Months Ended March 31, 2005 and 2004**
 **(Unaudited)**
 
 2005
    
    
    2004CASH
      FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (147,507
    )
    $
    (684,792
    )Adjustments to reconcile net loss to cash used inoperating
      activities:Depreciation
    
    
    2,631
    
    
    1,384Stock issued for services
    
    
    18,900
    
    
    117,000Non-cash interest
    
    
    -
    
    
    429,920Changes in assets and liabilities:Accounts receivable
    
    
    (30,410
    )
    
    18,037Other current assets
    
    
    (12,515
    )
    
    (4,214
    )Accounts payable and accrued expenses
    
    
    (11,285
    )
    
    (22,542
    )CASH
      FLOWS USED IN OPERATING ACTIVITIES
    
    
    (180,186
    )
    
    (145,207
    )CASH
      FLOWS USED IN INVESTING ACTIVITIES
    
    
    (538
    )
    
    (5,634
    )CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds from Convertible Debenture
    
    
    -
    
    
    1,000,000Proceeds from Subscription Agreement
    
    
    -
    
    
    250,000Payments on notes payable
    
    
    -
    
    
    (49,956
    )CASH
      FLOWS FROM FINANCING ACTIVITIES
    
    
    -
    
    
    1,200,044EFFECT
      OF EXCHANGE RATE CHANGES
    
    
    350
    
    
    (4,653
    )NET
      INCREASE (DECREASE) IN CASH
    
    
    (180,374
    )
    
    1,044,550Cash,
      beginning of period
    
    
    576,484
    
    
    60,572Cash,
      end of period
    
    $
    396,110
    
    $
    1,105,122
 
  
  **ADVANCED
ID CORPORATION**
 **NOTES
TO CONSOIDATED FINANCIAL STATEMENTS**
 
 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 2004, as reported in the 10-KSB filed on
March 31, 2005, have been omitted.
 
 NOTE 2 -
RECENT ACCOUNTING PRONOUNCEMENTS
 
 In
December 2004, the FASB, issued a revision to SFAS 123, also known as SFAS
123R, that amends existing accounting pronouncements for share-based payment
transactions in which an enterprise receives employee
and certain non-employee services in exchange for (a) equity instruments of
the enterprise or (b) liabilities that are based on the fair value of the
enterprise’s equity instruments or that may be settled by the
issuance of such equity instruments. SFAS 123R eliminates the ability to account
for share-based compensation transactions using APB 25 and generally requires
such transactions be accounted for using a
fair-value-based method. SFAS 123R’s effective date would be applicable for
awards that are granted, modified, become vested, or settled in cash in interim
or annual periods beginning after June 15, 2005.
SFAS 123R includes three transition methods: one that provides for prospective
application and two that provide for retrospective application. The Company
intends to adopt SFAS 123R prospectively commencing in the third quarter of the
fiscal year ending December 31, 2005. It is expected that the adoption of
SFAS 123R will cause the Company to record, as expense each quarter, a non-cash
accounting charge
approximating the fair value of such share based compensation meeting the
criteria outlined in the provisions of SFAS 123R.
  NOTE 3 -
COMMON STOCK
 
 In
January and February 2005, Advanced ID issued a total of 60,000 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 $18,900 related to these
shares. The shares were valued based on the average closing price during the
month in which they were expensed.
 
 NOTE 4 -
OPTIONS
 
 During
the three months ended March 31, 2005, Advanced ID issued 100,000 options to one
of its employees with an exercise price of $0.38, the closing price on the date
the options were issued. One half of the options will vest on the first
anniversary date and the balance will vest on the second anniversary date of
issuance.
  
  **Item
2. Management's Discussion and Analysis of Financial Condition and Results of
Operations**
 
 *Results
of Operations for the Three Months Ended March 31, 2005 and
2004*
 
 The net
loss of $147,507 for the quarter ended March 31, 2005 was smaller by $537,285 or
78% versus last year's comparable quarter. Reasons for the smaller net loss were
largely due to higher revenues, lower general and administrative expenses and
lower interest expense offset by higher research and development expenses. The
specific details of these changes are discussed below.
 
 *Revenues*
 
 Revenues
of $341,483 earned during the quarter ended March 31, 2005 were higher by
$153,180 or 81% over the comparable period last year. The increase in revenues
for the three months ended March 2005 was because we received a $135,000 order
from two customers in the fisheries industry during this period whereas similar
orders from the same customers have generally occurred in the fourth quarter in
prior years. All of
our revenues earned during the quarter ended March 31, 2005 and the comparable
quarter in 2004 were from our companion animal/biological sciences
division.
 
 We expect
a continued acceptance
by owners to microchip their pets, increased activity by the biological science
community and government agencies for the tracking of non-domesticated species,
and increased frequency by various municipal animal control agencies to set
policy and by-laws for the permanent tagging of pets in their respective
communities. With the continued adoption of permanent tagging of animals and
with our focus to expand the use of microchips into the livestock industry, 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 $187,431 for the quarter ended March 31, 2005 increased by $103,252
or 123% over the previous year’s comparable period. The increase in cost of
revenues is attributed to a higher volume of products sold. All of
our products purchased for resale in the companion animal and biological
sciences markets are paid for with US Dollars and sold in Canadian
Dollars.
 
 Research
and Development
 
 Research
and development expenses of $88,024 for the quarter ended March 31, 2005
increased by $64,333 or 272% over last year’s comparable period. This increase
is due to costs associated with the development and refinement of our DataTRACTM
RFID tags for various sized livestock. It is our expectation that our research
and development expenses will be comparable for future reporting
periods.
 
 *General
and Administrative*
 
 For the
quarter ended March 31, 2005, general and administrative expenses of $209,165
were lower by $114,334 or 35% over last year’s comparable period largely due to
$111,179 in lower consulting expenses, $41,401 in lower legal fees plus lower
other general business expenditures offset by $43,466 in higher salaries
resulting from increased staff.
 
 
 Consulting
expenses for the quarter ended March 31, 2005 of $8,338 were lower by $111,179
or 93% over the previous year’s comparable period. The decrease in consulting
expenses was largely due to a reallocation to research and development costs. It
is our expectation that our consulting expenses will be comparable for future
reporting periods.
 
 General
and administrative expenditures are expected to continue to increase as we
implement sales and marketing initiatives to develop markets for our new
DataTRACTM RFID technology targeted at the livestock industry.
 
 *Interest
Expense*
 
 During
the quarter ended March 31, 2005, interest expense of $4,370 decreased by
$437,356 or 99% when compared to the same quarter last year. Of the total of
$4,370 in interest expense for the quarter ended March 31, 2005, $3,138 is
non-cash interest related to a discount on a Note Payable owing to one of our
Directors and $1,232 is accrued interest related to the same Note Payable.
 
 Of the
total of $441,726 in interest expense for the quarter ended March 31 2004,
$429,920 was attributed to non-cash interest related to the discount on
Debentures that matured on June 29, 2004, $3,138 in non-cash interest related to
a Note Payable owing to one of our Directors and $8,668 is interest paid on
other outstanding notes payable.
 
 As at
March 31, 2005, we had only one remaining note payable outstanding which accrues
interest at 10% per annum and to which non-cash interest is
charged.
 
 *Liquidity
and Capital Resources*
 
 As at
March 31, 2005, we had cash and cash equivalents of $396,110.
 
 During
the first quarter ended March 31, 2005, net cash used in operating activities of
$180,186 was higher by $34,979 or 24% as compared to last year's comparable
period. Cash used by operating activities during the current three months of
2005 resulted primarily from our increase in research and development expenses.
 
 During
the first quarter ended March 31, 2005, net cash used by investing activities of
$538 was lower by $5,096 or 90% during the prior year’s comparable period. Cash
used by investing activities resulted from our purchase of office furniture and
equipment, computer hardware, and software. We have
no commitments for future purchases of capital assets.
 
 During
the first quarter ended March 31, 2005, net cash provided by financing
activities of $0 provided lower cash of $1,200,044 as compared to the previous
year's comparable period. No financing activity occurred during the current
quarter ended March 31, 2005 whereas we secured two separate private placements
and paid off certain notes payable in the comparable quarter in 2004.
 
 
 Currently
in the global livestock industry, countries such as the United States, Taiwan,
Australia, New Zealand, Thailand, Argentina and Brazil are considering or have
expressed their intent to make the identification of livestock mandatory. The
primary reasons for this action is 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. Our current cash balance is estimated to be sufficient to fund our
current operations over the next six to nine 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 six to seven 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. No firm commitment
arrangements have been entered into for 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. One half of the options will vest on the first anniversary date and the
balance will vest on the second anniversary date of issuance.
 
 In
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.
 
 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**
 
 None.
 
 **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.
 
 None.
 
 (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
 
 None.
  
  **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: June 7, 2005
    By:
    /s/ Barry I.
  BennettBarry I. BennettDirector, Chief Executive Officer
      and President
 
 
 By:
    /s/ Todd D.
NobleTodd D. NobleChief
      Financial Officer, Treasurer and Secretary
      (As
      a duly authorized officer on behalf of the
      Registrant
      and as Principal Financial and Accounting Officer)