**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, 2005**




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)




**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
      August 1, 2005 there were 42,565,341 shares of Class “A” common stock issued and
      outstanding.







**ADVANCED
      ID CORPORATION**


**FORM
      10-QSB**




**For
      the Second Quarter Ended June 30, 2005**







**INDEX**






***Part
                  I. Financial Information***Item
                  1. Financial Statementsa.
              Consolidated
                  Balance Sheet as
                  of June 30, 2005 and December 31, 2004b.
              Consolidated
                  Statement of Operations for the Three and Six Months Ended June
                  30, 2005
                  and 2004c.
              Consolidated
                  Statement of Cash Flows for the Six Months Ended June
                  30, 2005 and 2004d.
              Notes
                  to Consolidated Financial StatementsItem
                  2. Management's Discussion and AnalysisItem
                  3. Controls and Procedures***Part
                  II. Other Information***Item
                  1. Legal ProceedingsItem
                  2. Changes in Securities and Use of ProceedsItem
                  3. Defaults upon Senior SecuritiesItem
                  4. Submission of Matters to a Vote of Securities HoldersItem
                  5. Other InformationItem
                  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
            
            June
                30,
              2005
            
            December
                31,
              2004(Unaudited)Current
                AssetsCash
            
            $
            338,279
            
            $
            576,484Trade
                accounts receivable, net of allowance for doubtful
              accounts
                of $4,655
            
            
            77,044
            
            
            51,952Inventory
            
            
            67,597
            
            
            78,895Prepaid
                expenses
            
            
            3,035
            
            
            3,738Total
                Current Assets
            
            
            485,955
            
            
            711,069Property
                and equipment, net
            
            
            21,380
            
            
            25,235Total
                assets
            
            $
            507,335
            
            $
            736,304LIABILITIES
                AND STOCKHOLDERS’ EQUITYCurrent
                LiabilitiesAccounts
                payable
            
            $
            73,281
            
            $
            90,615Advanced
                from related parties
            
            
            54,261
            
            
            46,268Accrued
                liabilities
            
            
            43,983
            
            
            61,502Total
                Current Liabilities
            
            
            171,525
            
            
            198,385COMMITMENTSSTOCKHOLDERS’
                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,
                42,215,341 and 42,155,341 shares issued
              and
                outstanding
            
            
            422,153
            
            
            421,553Additional
                paid-in capital
            
            
            3,131,863
            
            
            3,113,563Accumulated
                deficit
            
            
            (3,236,377
            )
            
            (3,022,651
            )Accumulated
                other comprehensive income
            
            
            18,171
            
            
            25,454Total
                Stockholders’ Equity
            
            
            335,810
            
            
            537,919Total
                Liabilities and Stockholders’ Equity
            
            $
            507,335
            
            $
            736,304





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, 2005 and 2004**


**(Unaudited)**





Three
                Months Ended
              June
                30,
            
            Six
                Months Ended
              June
                30,2005
            
            2004
            
            2005
            
            2004Revenues
            
            $
            274,849
            
            $
            191,484
            
            $
            616,331
            
            $
            379,787Cost
                of revenues
            
            
            114,791
            
            
            81,567
            
            
            302,222
            
            
            165,746Gross
                profit
            
            
            160,058
            
            
            109,917
            
            
            314,109
            
            
            214,041Research
                and development expense
            
            
            56,482
            
            
            199,788
            
            
            144,506
            
            
            223,479General
                and administrative expense
            
            
            165,409
            
            
            197,111
            
            
            374,574
            
            
            520,610Loss
                from operations
            
            
            (61,833
            )
            
            (286,982
            )
            
            (204,971
            )
            
            (530,048
            )Interest
                expense
            
            
            (4,386
            )
            
            (580,795
            )
            
            (8,755
            )
            
            (1,022,520
            )Net
                loss
            
            $
            (66,219
            )
            $
            (867,777
            )
            $
            (213,726
            )
            $
            (1,552,568
            )Comprehensive
                Income (Loss):Foreign
                currency translation
            
            
            8,557
            
            
            33,376
            
            
            7,840
            
            
            20,022Comprehensive
                income (loss)
            
            $
            (57,662
            )
            $
            (834,401
            )
            $
            (205,886
            )
            $
            (1,532,546
            )Net
                loss per share:Basic
                and diluted
            
            $
            (0.00
            )
            $
            (0.02
            )
            $
            (0.01
            )
            $
            (0.04
            )Weighted
                average shares outstanding:Basic
                and diluted
            
            
            42,215,341
            
            
            40,426,131
            
            
            42,210,203
            
            
            39,687,183








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, 2005 and 2004**


**(Unaudited)**




2005
              
              2004CASH
                  FLOWS FROM OPERATING ACTIVITIESNet
                  loss
              
              $
              (213,726
              )
              $
              (1,552,568
              )Adjustments
                  to reconcile net loss to cash used inoperating
                  activities:Depreciation
              
              
              5,307
              
              
              3,525Stock
                  issued for services
              
              
              18,900
              
              
              161,350Non-cash
                  interest
              
              
              --
              
              
              1,000,000Changes
                  in assets and liabilities:Accounts
                  receivable
              
              
              (25,092
              )
              
              (3,876
              )Other
                  current assets
              
              
              12,001
              
              
              (24,970
              )Accounts
                  payable and accrued expenses
              
              
              (28,577
              )
              
              63,038CASH
                  FLOWS USED IN OPERATING ACTIVITIES
              
              
              (231,187
              )
              
              (353,500
              )CASH
                  FLOWS USED IN INVESTING ACTIVITIES
              
              
              (1,452
              )
              
              (12,222
              )CASH
                  FLOWS FROM FINANCING ACTIVITIESProceeds
                  from debenture
              
              
              --
              
              
              1,000,000Proceeds
                  from subscription agreement
              
              
              --
              
              
              250,000Proceeds
                  from options exercised
              
              
              --
              
              
              5,000Payments
                  on notes payable
              
              
              --
              
              
              (76,097
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES
              
              
              --
              
              
              1,178,903EFFECT
                  OF EXCHANGE RATE CHANGES
              
              
              (5,566
              )
              
              19,290NET
                  INCREASE (DECREASE) IN CASH
              
              
              (238,205
              )
              
              832,471Cash,
                  beginning of period
              
              
              576,484
              
              
              60,572Cash,
                  end of period
              
              $
              338,279
              
              $
              893,043





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







ADVANCED
      ID CORPORATION


**NOTES
      TO CONSOLIDATED 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 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 annual periods beginning after December 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 first quarter of the fiscal year
      ending December 31, 2006. 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 -
      OPTIONS





During
      the three months ended June 30, 2005, the Board of Directors accelerated the
      vesting period on all outstanding options. As a result, a total of 1,280,000
      options became vested effective April 20, 2005 resulting in a total of 1,730,000
      options outstanding and vested.





The
      following table illustrates the effect on net income and earnings per share
      if
      Advanced ID had applied the fair value recognition provisions of FASB Statement
      No. 123, *Accounting
      for Stock-Based Compensation,* to
      stock-based employee compensation.








Three
                Months Ended
              June
                30,
            
            Six
                Months Ended
              June
                30,2005
            
            2004
            
            2005
            
            2004Net
                loss, as reported
            
            $
            (66,219
            )
            $
            (867,777
            )
            $
            (213,726
            )
            $
            (1,552,568
            )Deduct:
                Total stock-based employee compensation expense determined under
                the fair
                value based method for all awards
            
            
            (546,207
            )
            
            -
            
            
            (546,207
            )
            
            -Pro
                forma net loss
            
            $
            (612,426
            )
            $
            (867,777
            )
            $
            (759,933
            )
            $
            (1,552,568
            )Pro
                forma net loss per share:Basic
                and diluted - as reported
            
            $
            (0.00
            )
            $
            (0.02
            )
            $
            (0.01
            )
            $
            (0.04
            )Basic
                and diluted - pro forma
            
            $
            (0.01
            )
            $
            (0.02
            )
            $
            (0.02
            )
            $
            (0.04
            )





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 100%, risk-free interest
      rate of 4.0%, and expected lives of 10 years.





NOTE
      4 -
      SUBSEQUENT EVENTS





On
      July
      1, 2005, Advanced ID concluded an agreement to acquire a 60% interest in AFG
      Asia Engineering Co., Ltd. of Chiang Mai, Thailand to strengthen its resources
      in the radio frequency identification market. AFG Asia Engineering is a leader
      in the design and development of ultra high frequency (UHF) radio frequency
      identification technology. The controlling interest in AFG Asia Engineering
      was
      acquired for a purchase price of 350,000 common shares of Advanced ID
      Corporation. The results of operations of AFG Asia Engineering will be included
      in Advanced ID’s consolidated financials beginning July 1, 2005. The value that
      will be assigned to this acquisition will be $73,500 and which is based on
      350,000 shares multiplied by the closing share price of $0.21 on July 1,
      2005.





Advanced
      ID entered into a subscription agreement with a previous investor/shareholder
      who has committed to investing a total of $200,000. The proceeds will be
      received over five months in equal amounts of $40,000 beginning September 20,
      2005 and continuing on the 20 th of each
      month through to January 20, 2006. The purchase price of the stock is fixed
      at
      $0.20 per share. In addition, the investor will receive 100% warrant coverage
      with each warrant priced at $0.40 per share and which expire January 20, 2009.
      The common shares, including those underlying the warrants, are without a Rule
      144 restrictive legend pursuant to the Company’s Form SB-2 registration
      statement declared effective May 12, 2005. As an incentive to enter into this
      arrangement, the January 12, 2004 warrant agreement between the investor and
      the
      Company was cancelled and replaced with a new warrant agreement whereby the
      investor received 900,000 warrants with an exercise price of $0.40 per share
      and
      which expire January 12, 2009. The common shares underlying these warrants
      have
      not been registered and will be issued with a Rule 144 restrictive
      legend.





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, 2005 and
      2004*





The
      net
      loss of $66,219 for the quarter ended June 30, 2005 was lower by $801,558 or
      92%
      versus last year's comparable quarter. The net loss for the current six months
      ended June 2005 of $213,726 was smaller by $1,338,842 or 86% as compared to
      the
      same period in the previous year. Reasons for the significantly lower net loss
      were largely due to higher revenues, lower general and administrative expenses,
      lower interest expense and lower research and development expenses. The specific
      details of these changes are discussed below.





*Revenues*





Revenues
      of $ 274,849
      earned during the quarter ended June 30, 2005 were higher by $83,365 or 44%
      over
      the comparable period last year. This increase in revenues was due to a growing
      acceptance to use radio frequency identification microchips as a permanent
      solution for the identification of animals.





Revenues
      of $616,331 earned during the first six months of 2005 were higher by $236,544
      or 62% versus the comparable period last year. The increase in revenues for
      the
      six months ended June 2005 was due to the reason cited above and because of
      a
      $135,000 order received from two customers in the fisheries industry during
      the
      first quarter of 2005. Similar orders from the fisheries industry have generally
      occurred in the fourth quarter in prior years. All our revenues earned during
      the first six months of 2005, the quarter ended June 30, 2005, and the
      comparable periods in 2004 were entirely from our companion animal/biological
      sciences division. All revenues in our current reporting periods were also
      earned from customers located entirely in Canada.





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.





Effective
      August 1, 2005, the National Companion Animal Coalition (NCAC) of Canada will
      be
      phasing out the use of FECAVA microchips, the previous standard, in favor of
      ISO
      microchips. Although NCAC is not a regulatory body, they require a review of
      all
      Canadian suppliers’ products prior to recognizing their use in companion animals
      for Canada. We will be seeking requisite approval from the NCAC. Until such
      time
      approval is granted, it may have
      a material negative impact on our long term revenues, results of operations
      and
      liquidity in our companion animal division.





An
      increasing number of countries including the United States, Canada, Australia,
      Argentina, Brazil, European Union, Thailand, Taiwan and others have either
      expressed their intent to move towards mandatory identification of livestock
      or
      have already committed to do so. 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 $114,791 for the quarter ended June 30, 2005 increased by $33,224
      or
      41% over the previous year’s comparable period while cost of revenues of
      $302,222 for the first six months of 2005 increased by $136,476 or 82%. The
      increase in cost of revenues is attributed to a higher volume of products sold.





Our
      gross
      margin of 58% during the quarter ended June 30, 2005 was higher by less than
      1%
      over the comparable period in 2004. The marginal increase in gross margin was
      due to a slightly stronger Canadian dollar relative to the US dollar. All our
      products purchased for resale in the companion animal and biological sciences
      markets are paid for with US Dollars and sold in Canadian Dollars.





Our
      gross
      margin of 51% during the first six months of 2005 was lower by 5% from the
      comparable period in 2004. The decrease in gross margins is attributed to a
      smaller margin earned from our higher volume sales to the fisheries industry
      as
      referenced above under Revenues.





Research
      and Development





Research
      and development expenses of $56,482 and $144,506 for the quarter ended June
      30,
      2005 and for the first six months of 2005 respectively, decreased by $143,306
      or
      72% and $78,973 or 35% 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, 2005, general and administrative expenses of $165,409
      were lower by $31,702 or 16% over last year’s comparable period largely due to
      $27,359 in lower compensation to directors and $9,244 in lower consulting
      expenses offset by higher expenditures in salaries due to increased staff,
      and
      higher other general business expenditures. The compensation to directors was
      paid with common shares.





For
      the
      first six months of 2005, general and administrative expenses of $374,574 were
      lower by $146,036 or 28% over the previous year’s comparable period largely due
      to $129,222 in lower consulting fees, $43,992 in lower corporate communication
      charges, $36,054 in lower legal fees related to two financings executed in
      the
      first quarter of 2004 and $29,705 in lower directors’ fees which were paid in
      common stock offset by $75,377 in higher
      salaries due to increased staff, and higher expenditures in travel, insurance
      and other general business expenditures.





Consulting
      expenses for the quarter ended June 30, 2005 of $0 were lower by $9,244 over
      the
      previous year’s comparable period. Consulting expenses of $8,281 were lower by
      $129,222 or 94% during the first six months of 2005 versus the comparable period
      in the previous year. The decrease in consulting expenses was largely due to
      a
      reallocation of such expenses to research and development costs. It is our
      expectation that our consulting expenses will be comparable to those fees
      allocated in the quarter ended June 30, 2004 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 June 30, 2005, interest expense of $4,385 decreased by
      $576,410 or 99% when compared to the same quarter last year. Of the total of
      $4,385 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 $1,247 is accrued interest related to the same Note Payable.
      Of
      the total of $580,795 in interest expense for the quarter ended June 30, 2004,
      $572,199 is attributed to non-cash interest related to a discount regarding
      a
      debenture agreement entered into on January 20, 2004 and which matured June
      29,
      2004, $3,138 is non-cash interest related to a Note Payable owing to one of
      our
      Directors and $5,458 is cash interest expense attributed to our outstanding
      notes payable.





For
      the
      first six months of 2005, interest expense of $8,755 was lower by $1,013,765
      or
      99% versus the comparable period in 2004. Of the total of $8,755 in interest
      expense for the first six months ended June 30, 2005, $6,276 is non-cash
      interest related to a discount on a Note Payable owing to one of our Directors
      and $2,479 is accrued interest related to the same Note Payable. Of the total
      of
      $1,022,520 in interest expense for the first six months of 2004, $1,004,794
      is
      attributed to non-cash interest related to a discount regarding a debenture
      agreement entered into on January 20, 2004 and which matured June 29, 2004,
      $6,276 is non-cash interest related to a Note Payable owing to one of our
      Directors and $11,450 is cash interest expense attributed to our outstanding
      notes payable.





As
      at
      June 30, 2005, we had only one remaining note payable outstanding for $50,000
      which accrues interest at 10% per annum and to which non-cash interest is
      charged.





*Liquidity
      and Capital Resources*





As
      at
      June 30, 2005, we had cash and cash equivalents of $338,279.





During
      the first six months ended June 30, 2005, net cash used in operating activities
      of $231,187 was lower by $122,313 or 35% as compared to last year's comparable
      period. The decrease in cash used by operating activities during the first
      six
      months of 2005 as compared to the comparable period in 2004 resulted primarily
      from a significantly smaller net loss during the current reporting period.





During
      the first six
      months ended June 30, 2005, net cash used by investing activities of $1,452
      was
      lower by $10,770 or 88% during the prior year’s comparable period. Cash used by
      investing activities resulted from our purchase of office furniture and
      equipment, and software. We
      have
      no commitments for future purchases of capital assets.





During
      the first six months ended June 30, 2005, net cash provided by financing
      activities of $0 provided lower cash of $1,178,903 as compared to the previous
      year's comparable period. No financing activity occurred during the current
      six
      months ended June 30, 2005 whereas we secured two private placements, received
      cash from the exercise of options 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, 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 three to six 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. No
      firm commitment 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.





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.





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 $0.40 per
      warrant and which are exercisable anytime until January 12, 2009.





On
      July
      1, 2005, we issued 350,000 shares to Gottfried Auer and Mayuree Moonros to
      acquire a 60% interest in AFG Asia Engineering Co., Ltd., a Thailand
      company.





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, 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. 2





(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
      Directors filed July 27, 2005.





**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:
              August 4, 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)