SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549





FORM
10-Q





[x]     Quarterly
Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for
Quarterly Period Ended June 30, 2008





-OR-





[
]     Transition Report Pursuant to Section 13 or 15(d)
of the Securities And Exchange Act of 1934 for the transaction period from
_________  to________





Commission
File Number 000-24965








ADVANCED
ID CORPORATION


(Exact
name of registrant as specified in its charter)




Nevada
            
            46-0439668(State or other
      jurisdiction
              of incorporation or
      organization)
            
            (I.R.S.
      Employer
              Identification Number)4500 – 5th
      Street NE
              #200, Bay
      6
              Calgary, Alberta, Canada
            
            T2E
      7C3(Address of
      principal executive offices)
            
            (Zip
      Code)




403-264-6300





(Registrant's
telephone number, including area code)








Indicate
by check mark whether the issuer (1) 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.





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non=accelerated filer, or a smaller reporting
company.


Large
accelerated filer [  ]     Accelerated
filer  [  ]


Non-accelerated
filer   [  ]     Smaller
reporting company [x]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).





Yes  [
]      No [x]





The
number of outstanding shares of the registrant's common stock as of August 11,
2008 was 64,922,217.


1








PART I --
FINANCIAL INFORMATION





Advanced
ID Corporation








Item 1. Financial
      Statements
            3Consolidated Balance
      Sheets, June 30, 2008 (unaudited) and December 31, 2007
            3Consolidated
      Statements of Operations and Comprehensive Loss for the Three
      and Six months ended June 30, 2008 and 2007 (unaudited)
            4Consolidated
      Statements of Cash Flows for the Six months ended June 30, 2008 and 2007
      (unaudited)
            5Notes
      to consolidated financial statements (unaudited)
            6























2




ADVANCED
ID CORPORATION
 CONSOLIDATED
BALANCE SHEETS
 
 ASSETS
              
              June
      30,
                2008
              
              
              December
      31, 2007(Unaudited)Current
      assetsCash
              
              $
              103,711
              
              
              $
              61,557Trade
      accounts receivable, net
              
              
              210,940
              
              
              
              113,943Inventory
              
              
              35,694
              
              
              
              95,914Prepaid
      expenses
              
              
              5,149
              
              
              
              2,018Total
      current assets
              
              
              355,494
              
              
              
              273,432Property
      and equipment, net
              
              
              32,220
              
              
              
              49,986Goodwill
              
              
              122,468
              
              
              
              122,468Customer
      list, net
              
              
              49,985
              
              
              
              62,500Total
      other assets
              
              
              204,673
              
              
              
              234,954Total
      assets
              
              $
              560,167
              
              
              $
              508,386LIABILITIES
      AND STOCKHOLDERS’ DEFICITCurrent
      liabilitiesAccounts
      payable
              
              $
              364,602
              
              
              $
              300,636Accounts
      payable – related parties
              
              
              72,133
              
              
              
              66,912Accrued
      liabilities
              
              
              38,799
              
              
              
              57,343Short
      term loans
              
              
              88,267
              
              
              
              59,806Deposit
      on shares to be issued
              
              
              -
              
              
              
              192,500Pneu-Logic
      asset purchase payable
              
              
              180,000
              
              
              
              240,000Total
      liabilities
              
              
              743,801
              
              
              
              917,197COMMITMENTSSTOCKHOLDERS’
      DEFICIT:Series
      A preferred stock, $0.01 par; 500,000 shares
                Authorized;
      none issued
              
              
              -
              
              
              
              -Common
      stock, $0.01 par value, 100,000,000 shares
                authorized,
      64,358,152 and 57,318,308 shares issued
                and
      outstanding, respectively
              
              
              643,582
              
              
              
              573,184Additional
      paid-in capital
              
              
              9,858,898
              
              
              
              8,180,170Subscriptions
      receivable
              
              
              -
              
              
              
              (2,000
              )Accumulated
      deficit
              
              
              (10,674,722
              )
              
              
              (9,161,789
              )Accumulated
      other comprehensive income
              
              
              (11,392
              )
              
              
              1,624Total
      stockholders’ deficit
              
              
              (183,634
              )
              
              
              (408,811
              )Total
      liabilities and stockholders’ deficit
              
              $
              560,167
              
              
              $
              508,386
 
  The
accompanying notes are an integral part of these consolidated financial
statements.
 
 3
  ADVANCED
ID CORPORATION
 CONSOLIDATED
STATEMENTS OF OPERATIONS
 AND
COMPREHENSIVE LOSS
 Three
and Six Months Ended June 30, 2008 and 2007
 (Unaudited)
 
 Three
      Months Ended
              
              
              Six
      Months EndedJune
      30,
              
              
              June
      30,2008
              
              
              2007
              
              
              2008
              
              
              2007Revenues
              
              $
              363,637
              
              
              $
              191,400
              
              
              $
              712,021
              
              
              $
              381,780Cost
      of revenues
              
              
              200,861
              
              
              
              70,989
              
              
              
              402,376
              
              
              
              194,474Gross
      profit
              
              
              162,776
              
              
              
              120,411
              
              
              
              309,645
              
              
              
              187,306Research
      and development expense
              
              
              21,476
              
              
              
              53,715
              
              
              
              34,406
              
              
              
              102,487General
      and administrative expense
              
              
              1,004,014
              
              
              
              1,005,967
              
              
              
              1,595,377
              
              
              
              1,305,572Operating
      loss
              
              
              (862,714
              )
              
              
              (939,271
              )
              
              
              (1,320,138
              )
              
              
              (1,220,753
              )Interest
      income (expense), net
              
              
              (2,088
              )
              
              
              695
              
              
              
              (2,961
              )
              
              
              787Loss
      from continuing operations
              
              
              (864,802
              )
              
              
              (938,576
              )
              
              
              (1,323,099
              )
              
              
              (1,219,966
              )Income
      (loss) from discontinued operations
              
              
              -
              
              
              
              (1,300
              )
              
              
              -
              
              
              
              12,449Net
      loss
              
              
              (864,802
              )
              
              
              (939,876
              )
              
              
              (1,323,099
              )
              
              
              (1,207,517
              )Deemed
      dividend on warrant term modifications
              
              
              (189,834
              )
              
              
              -
              
              
              
              (189,834
              )
              
              
              -Warrant
      holder inducement dividend
              
              
              -
              
              
              
              (155,647
              )
              
              
              -
              
              
              
              (155,647
              )Net
      loss applicable to common shareholders
              
              
              (1,054,636
              )
              
              
              (1,095,523
              )
              
              
              (1,512,933
              )
              
              
              (1,363,164
              )Other
      comprehensive income (loss):Foreign
      currency translation
              
              
              (5,971
              )
              
              
              (12,714
              )
              
              
              (13,016
              )
              
              
              (1,503
              )Comprehensive
      loss
              
              $
              (1,060,607
              )
              
              $
              (1,108,237
              )
              
              $
              (1,525,949
              )
              
              $
              (1,364,667
              )Net
      loss per share:Basic
      and diluted
              
              $
              (0.02
              )
              
              $
              (0.02
              )
              
              $
              (0.03
              )
              
              $
              (0.02
              )Basic and diluted
              
              
              62,235,092
              
              
              
              53,525,584
              
              
              
              60,049,801
              
              
              
              53,083,046
 
 The
accompanying notes are an integral part of these consolidated financial
statements.
 
 4
   ADVANCED
ID CORPORATION
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
 Six
Months Ended June 30, 2008 and 2007
 (Unaudited)
  2008
              
              
              2007CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
              
              $
              (1,323,099
              )
              
              $
              (1,207,517
              )Adjustments
      to reconcile net loss to cash used in
                operating
      activities:Depreciation
              
              
              43,217
              
              
              
              46,559Share
      based payments for services
              
              
              361,071
              
              
              
              -Stock
      options issued for services
              
              
              273,241
              
              
              
              613,012Inventory
      write down
              
              
              24,975
              
              
              
              8,299Bad
      debts expense
              
              
              2,000Changes
      in assets and liabilities:Accounts
      receivable
              
              
              (96,997
              )
              
              
              (52,391
              )Inventory
              
              
              35,245
              
              
              
              (72,617
              )Prepaid
      expenses
              
              
              (3,131
              )
              
              
              (44,226
              )Accounts
      payable
              
              
              63,966
              
              
              
              26,261Accounts
      payable – related parties
              
              
              5,221
              
              
              
              366,602Accrued
      expenses
              
              
              (18,544
              )
              
              
              (67,728
              )CASH
      FLOWS USED IN OPERATING ACTIVITIES
              
              
              (632,835
              )
              
              
              (383,746
              )CASH
      FLOWS USED IN INVESTING ACTIVITIESPurchase of property and equipment
              
              
              (13,989
              )
              
              
              (17,642
              )CASH
      USED IN INVESTING ACTIVITIES
              
              
              (13,989
              )
              
              
              (17,642
              )CASH
      FLOWS FROM FINANCING ACTIVITIESLoans
      payable – related party
              
              
              28,978
              
              
              
              (1,912
              )Deposits on shares to be issued
              
              
              50,000
              
              
              
              -Proceeds
      from sale of stock
              
              
              682,480
              
              
              
              294,500Payments
      on Pneu-Logic asset purchase payable
              
              
              (60,000
              )
              
              
              -CASH
      FLOWS FROM FINANCING ACTIVITIES
              
              
              701,458
              
              
              
              292,588EFFECT
      OF EXCHANGE RATE CHANGES
              
              
              (12,480
              )
              
              
              (12,154
              )NET
      INCREASE (DECREASE) IN CASH
              
              
              42,154
              
              
              
              (120,954
              )Cash,
      beginning of period
              
              
              61,557
              
              
              
              266,787Cash,
      end of period
              
              $
              103,711
              
              
              $
              145,833CASH
      PAID FOR:Interest
              
              $
              5,193
              
              
              $
              -Taxes
              
              $
              -
              
              
              $
              -NON-CASH
      INVESTING AND FINANCING TRANSACTIONS:Common
      stock issued for debt
              
              $
              -
              
              
              $
              327,591Reclassification
      of shares to be issued
              
              $
              242,500
              
              
              $
              -Deemed
      dividend on warrant modifications
              
              $
              189,834
              
              
              $
              -
   The
accompanying notes are an integral part of these consolidated financial
statements.
  5
  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 2007, as reported in the Form 10-KSB filed on April 15, 2008, have been
omitted.
 
 Certain
2007 amounts have been reclassified to conform to 2008
presentation.
 
 NOTE 2 -
FINANCIAL CONDITION AND GOING CONCERN
 
 Advanced
ID has incurred net losses for the six months ended June 30, 2008 and the year
ended December 31, 2007 of $1,323,099 and $2,721,983,
respectively.  Because of these losses, Advanced ID will require
additional working capital to develop its business operations.
 
 Advanced
ID intends to raise additional working capital through private placements,
public offerings and/or bank financing.  There are no assurances that
Advanced ID will be able to either (1) achieve a level of revenues adequate to
generate sufficient cash flow from operations; or (2) obtain additional
financing through either private placements, public offerings and/or bank
financing necessary to support Advanced ID’s working capital
requirements.  To the extent that funds generated from operations and
any private placements, public offerings and/or bank financing are insufficient,
Advanced ID will have to raise additional working capital.  No
assurance can be given that additional financing will be available, or if
available, will be on terms acceptable to Advanced ID.
 
 These
conditions raise substantial doubt about Advanced ID’s ability to continue as a
going concern.  The financial statements do not include any
adjustments relating to the recoverability and classification of asset carrying
amounts or the amount and classification of liabilities that might be necessary
should Advanced ID be unable to continue as a going concern.
  6
  NOTE 3 –
COMMON STOCK
 
 During
the six months ended June 30, 2008, Advanced ID issued a total of 5,811,500
shares of common stock for total cash consideration of $682,480.
 
 During
the six months ended June 30, 2008, 6,356,500 warrants were issued of which
350,000 were exercisable at $0.25; 1,500,000 were exercisable at $0.20;
1,575,000 were exercisable at $0.30; and 2,931,500 were exercisable at
$0.22.
 
 According
to Advanced ID’s compensation plan during the six months ended June 30, 2008,
1,802,410 shares valued at $361,603 were earned by directors, officers and
employees. Of these shares, 574,065  were issued subsequent to June
30, 2008.
 
 On June
20, 2008 2,000,000 stock options exercisable at $0.30 for a period of five years
were issued to the Directors of the Company.  The fair value of these
options were calculated using the Black and Scholes option pricing model and as
a result a charge of $273,241 was recorded during the quarter.
  On June
20, 2008, the Board of Directors passed a resolution to modify all stock options
to include a net cash settlement feature. Option holders may sell their options
to the Company for the difference in market and exercise price multiplied by the
number of options. This feature is only effective in the event of a legal change
of control as specifically defined in the Board resolution, an event deemed
under the control of the Company.
 
 During
the period ended June 30, 2008, the Company extended the expiry of all warrants
expiring in 2008 which were exercisable at $0.30 and $0.40.  The
expiry date of these 4,009,585 warrants were extended by one year from original
expiry.  Given the permanent equity nature of the underlying
instruments, the $189,834 fair market value calculated as a result of this
extension was recorded as a deemed dividend.
  NOTE 4 –
RELATED PARTY TRANSACTIONS
 
 In
addition to being a director of Advanced ID, Mr. Kazimirski provides consulting
services to Advanced ID for the purposes of assisting with product and market
development.  Specifically, Mr. Kazimirski has been responsible for
establishing distribution partners in countries located outside of North
America, assisting the Company in finding and negotiating supplier partnership
agreements, and other general business tasks as requested by the
Company.  There exists no written consulting agreement in place but it
has been mutually agreed that Mr. Kazimirski will receive $175 per hour for his
services for an undefined term, and which began January 3, 2003.  In
addition to the stock options granted to Mr. Kazimirski discussed in Note 3,
during the quarter ended June 30, 2008 and June 30, 2007, consulting and
director fees totaled $105,023 and $65,748 for his services
respectively.  These services were paid for via the issuance of
shares.
 
 During
the period ended June 30, 2008, Mr. Sudeep Bhargava, Vice President Operations
and Interim CFO, received $66,603 in fees and bonuses.  In the same
period in 2007 he received $32,310.  Some of these services were paid
for via the issuance of shares.
 
 In
addition to being President & CEO, Mr. Dan Finch also performs a role of
director of Advanced ID., Mr. Finch is compensated for his services as a
director.  In addition to the stock options granted to Mr. Finch
discussed in Note 3, during the period ending June 30, 2008 and June 30, 2007 a
total of $82,632 and $58,852 respectively was paid for salary, bonuses and
director fees.  Some of these services were paid for via the issuance
of shares
 
 In
addition to being a director of Advanced ID, Mr. Meier provides consulting
services to Advanced ID for the purposes of assisting with product and supplier
development.  Specifically, Mr. Meier has been responsible for
development, manufacturing and testing of our DataTRACTM RFID tags, sourcing
microchip manufacturers, sourcing reader manufacturers, sourcing antennae design
suppliers, and overall product development.  His contract began on May
21, 2002 and expired on May 21, 2005.  The contract was not renewed
however Mr. Meier continues to provide services based on his hourly rate. In
addition to the stock options granted to Mr. Meir discussed in Note 3, during
the period ending June 30, 2008 and June 30, 2007 consulting fees and director
fees totaled $26,675 and $11,478 for his services, respectively. These services
were paid for via the issuance of shares.
  7
  In
addition to being a director of Advanced ID, Mr. Fields provides consulting
services to Advanced ID for the purposes of assisting with investor relations
and stock development.  Specifically, Mr. Fields has been responsible
for development of investor relations programs and company funding activities
such as private placements.  His contract began on May 21, 2002 and
expired on May 21, 2005.  The contract was not renewed however Mr.
Fields continues to provide services based on his hourly rate.  In
addition to the stock options granted to Mr. Fields discussed in Note 3, during
the period ending June 30, 2008 and June 30, 2007 consulting and director fees
totaled $34,550 and $33,150 for his services, respectively.  These
services were paid for via the issuance of shares.
 
 Lauren
Yeomans, a Director of Pneu Logic, charged $76,335 in consulting fees during the
quarter.
 
 RBC
Electronics Limited (“RBC”) is a company controlled by the father of a Pneu
Logic employee.  During the quarter $133,089 in inventory was
purchased from RBC and rent of $23,652 was charged by RBC to Pneu
Logic.
 
 $60,000
was paid to the father of a Pneu Logic employee during the quarter for the
contingent consideration due on the acquisition of Pneu Logic and the father of
the employee loaned $28,978 back to the Pneu Logic for operating
capital.
  NOTE 5 –
COMMITMENTS
 
 The
Company has agreed to pay each director $1,500 per month as part of their
compensation.  In addition, each director will be paid $175 per hour
for their services rendered on behalf of the Company.
 
 NOTE 6 –
SUBSEQUENT EVENTS
 
 Subsequent
to the end of the quarter a total of 574,065 shares were issued for services
rendered during the period ending June 30, 2008.  Expenses were
properly recognized for in the six months ended June 30, 2008.
 
 8
 
 ITEM
2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
 
 The
following discussion is intended to assist in understanding the financial
condition and results of operations of Advanced ID Corporation. You should read
the following discussion along with our financial statements and related notes
included in this Form 10-Q. The following discussion contains forward-looking
statements that are subject to risks, uncertainties and assumptions. Our actual
results, performance and achievements in 2008 and beyond may differ materially
from those expressed in, or implied by, these forward looking
statements.
 
 Overview.
 
 Advanced
ID Corporation is a complete solutions provider in the Radio Frequency
Identification (“RFID”) business with a focus on the tire management
industry.  The company is also involved in the tire inspection
business through its UK based Pneu-Logic subsidiary.  The company is
active in the pet recovery business through its AVID Canada subsidiary in
Calgary, Alberta and has developed a UHF RFID reader product line for global
supply chain applications.  Recently Advanced ID has expanded to other
countries in Europe, China and is setting up a minority owned subsidiary in
Brazil to address the rapidly growing RFID market in South America
 
 Results
of Operations for the Six Months Ended June 30, 2008 and June 30,
2007.
 
 The net
loss of $1,323,099 for the six months ended June 30, 2008 was higher by $115,582
compared to last year due to a non cash fair value charge for the issuance of
stock options.
 
 Revenues
 
 Revenues
of $712,021 during the six months ended June 30, 2008 increased by $330,241 or
86.50% from last year.  This increase can be attributed to higher bulk
tag, reader and revenues from the recently acquired wholly owned subsidiary,
Pneu-Logic. These sales increases are attributed to increased sales focus on
animal shelters and broadening of sales of readers and sale of newly developed
RFID reader, PR500.
 
 The
Company is actively promoting the ISO microchip throughout Canada and
Asia.  Of the total revenues earned of $712,021 for the six months
ended June 30, 2008, $515,635 or 72.42% were from our companion
animal/biological sciences division in Canada and the remainder $196,386 or
27.58% were comprised from our ultra high frequency (UHF) division with sales
throughout the world, the newly acquired Pneu-Logic in UK.
 
 Cost of
Revenues
 
 Cost of
Revenues of $402,376 for the six months ended June 30, 2008 increased by
$207,902 or 106.90% over same period in the previous year.  The
increase in Cost of Revenues is attributed to higher sales levels and slight
changes in the product sales mix to lower margin items.  Gross profit
of $309,645 increased by $122,339 from the corresponding six month period end
June.  The gross profit margin decreased from 49.06% to 43.49%,
reflecting the change in product mix.
  9
  Research
and Development
 
 Research
and development expenses of $34,406 for the six months ended June 30, 2008
decreased by $68,081 or 66.43% from last year’s comparable
period.  This was a result of the completion of the development of one
of the Company’s products.
 
 General,
administrative and selling expense
 
 For the
six months ended June 30, 2008, general and administrative and selling expenses
of $1,595,377 were higher by $289,805 or 22.20% than last year due mainly to the
fair value charge to income for options issued in the amount of
$273,241.
 
 Interest
income (expense)
 
 During
the six months ended June 30, 2008, interest expense was $2,961 as compared to
income of 787 during the same period last year.
 
 Liquidity
and Capital Resources
 
 As at
June 30, 2008, we had cash and cash equivalents of $103,711.
 
 During
the six months ended June 30, 2008, net cash used in operating activities of
$632,835 was higher by $249,089 or 64.91% as compared to the quarter ended June
30, 2007.  The increase in cash used by operating activities during
2008 resulted primarily from an overall increase in cash general and
administrative expenses offset in part by lower cash generated from non-cash
working capital amounts.
 
 During
the six months ended June 30, 2008, net cash used in investing activities was
$13,989 compared to cash used in investing activities of $17,642 for the six
months ended June 30, 2007.
 
 During
the six months ended June 30, 2008, net cash provided by financing activities of
$701,458 was higher by $408,870 or 139.74% as compared to the six months ended
June 30, 2007.  The higher cash generated is a result of higher
proceeds from sales of stock.
 
 Results
of Operations for the Three Months Ended June 30, 2008 and June 30,
2007.
 
 The net
loss of $864,802 for the three months ended June 30, 2008 was lower by $355,164
compared to last year due to higher research and development, and general
administrative costs in the three months ended June 30, 2007.
 
 Revenues
 
 Revenues
of $363,637 during the three months ended June 30, 2008 increased by $172,237 or
89.99% from last year.  This increase can be attributed to higher bulk
tag, and reader revenues, and revenues from the recently acquired wholly owned
subsidiary, Pneu-Logic. These sales increases are attributed to increased sales
focus on animal shelters and broadening of sales of readers and sale of newly
developed RFID reader, PR500.
 
 The
Company is actively promoting the ISO microchip throughout Canada and
Asia.  Of the total revenues earned of $363,637 for the three months
ended June 30, 2008, $327,567 or 90.08% were from our companion
animal/biological sciences division in Canada and the remainder $36,070 or 9.92%
were comprised from our ultra high frequency (UHF) division with sales
throughout the world, the newly acquired Pneu-Logic in UK.
  10
  Cost of
Revenues
 
 Cost of
Revenues of $200,861 for the three months ended June 30, 2008 increased by
$129,872 or 182.95% over same period in the previous year.  The
increase in Cost of Revenues is attributed to higher sales levels and slight
changes in the product sales mix to lower margin items.  Gross profit
of $162,776 increased by $42,365 from the corresponding three month period end
June.  The gross profit margin decreased from 62.91% to 44.76%,
reflecting the change in product mix.
 
 Research
and Development
 
 Research
and development expenses of $21,476 for the three months ended June 30, 2008
decreased by $32,239 or 60.02% from last year’s comparable period.
 
 General,
administrative and selling expense
 
 For the
three months ended June 30, 2008, general and administrative and selling
expenses of $1,004,014 were comparable to general and administrative and selling
expenses of $1,005,967 for the three months ended June 30, 2007.
 
 Other
income (expense)
 
 During
the three months ended June 30, 2008, interest expense was $2,088 as compared to
income of $695 during the same period last year.
 
 Liquidity
and Capital Resources
 
 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.  We are attempting to increase our sales to
raise much needed cash for the remainder of the year, which will be supplemented
by our efforts to raise cash through the issuance of equities securities. It is
our intent to secure a market share in the livestock and inanimate
identification industry which we feel 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.
 
 Additionally,
we will require additional cash resources of $180,000 to fund the remainder and
unpaid part of our acquisition of Pneu-Logic which we expect to fund through the
issuance of stock and from funding through the sale of stock.
  11
  OFF-BALANCE
SHEET ARRANGEMENTS
 
 We have
no off-balance sheet arrangements.
  CAUTIONARY
STATEMENT REGARDING FORWARD LOOKING INFORMATION
 
 Certain
information set forth in this report contains "forward-looking statements"
within the meaning of federal securities laws. Forward looking statements
include statements concerning our plans, objectives, goals, strategies, future
events, future revenues or performance, capital expenditures, and financing
needs and other information that is not historical information. When used in
this report, the words "estimates," "expects," "anticipates," "forecasts,"
"plans," "intends," "believes" and variations of such words or similar
expressions are intended to identify forward-looking statements. Additional
forward-looking statements may be made by us from time to time. All such
subsequent forward-looking statements, whether written or oral and whether made
by us or on our behalf, are also expressly qualified by these cautionary
statements.
 
 Our
forward-looking statements are based upon our current expectations and various
assumptions. Our expectations, beliefs and projections are expressed in good
faith and are believed by us to have a reasonable basis, including without
limitation, our examination of historical operating trends, data contained in
our records and other data available from third parties, but there can be no
assurance that our expectations, beliefs and projections will result or be
achieved or accomplished. Our forward-looking statements apply only as of the
date made. We undertake no obligation to publicly update or revise
forward-looking statements which may be made to reflect events or circumstances
after the date made or to reflect the occurrence of unanticipated
events.
 
 There are
a number of risks and uncertainties that could cause actual results to differ
materially from those set forth in, contemplated by or underlying the
forward-looking statements contained in this report. Those risks and
uncertainties include, but are not limited to, our history of operating losses,
lack of liquidity in our common stock, our dependence on key personnel, the
expression by our auditors of uncertainty as to our ability to continue as a
going concern, and the fact that we face substantial competition. Those risks
and certain other uncertainties are discussed in more detail in our 2007 Annual
Report on Form 10-KSB and our subsequent filings with the SEC. There may also be
other factors, including those discussed elsewhere in this report that may cause
our actual results to differ from the forward-looking statements. Any
forward-looking statements made by us or on our behalf should be considered in
light of these factors.
 
 12
  Item
3.  Quantitative and Qualitative Disclosures about Market
Risk
 
 We do not
consider the effects of interest rate movements to be a material risk to our
financial condition.  We do not hold any derivative instruments and do
not engage in any hedging activities.
  Item
4T.  Controls and Procedures.
 
 During
the six months ended June 30, 2008, there were no changes in our internal
controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)
under the Exchange Act) that have materially affected, or are reasonably likely
to materially affect, our internal control over financial
reporting.
 
 Evaluation
of Disclosure Controls and Procedures
 
 Under the
supervision and with the participation of our management, including our chief
executive officer and chief financial officer, we conducted an evaluation of our
disclosure controls and procedures, as such term is defined under Rule 13a-15(e)
and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as
amended, as of June 30, 2008.  Based on this evaluation, our chief
executive officer and chief principal financial officers have concluded such
controls and procedures effective as of June 30, 2008 to ensure that information
required to be disclosed by the issuer in the reports that it files or submits
under the Act is recorded, processed, summarized and reported, within the time
periods specified in the Commission’s rules and forms and to ensure that
information required to be disclosed by an issuer in the reports that it files
or submits under the Act is accumulated and communicated to the issuer’s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.







13





PART II -
OTHER INFORMATION





Item 1.
Legal Proceedings. None.





Item 2.
Unregistered Sale of Securities and Use of Proceeds.





During
the six months ended June 30, 2008, 2007, Advanced ID issued a total of
5,811,500 shares of common stock for total consideration of
$682,480.





During
the six months ended June 30, 2008, 6,356,500 warrants were issued.





According
to Advanced ID’s compensation plan during the six months ended June 30, 2008,
1,802,410 shares valued at $361,603 were earned by directors, officers and
employees.





On June
20, 2008 2,000,000 stock options exercisable at $0.30 for a period of five years
were issued to the Directors of the Company.





During
the period ended June 30, 2008, the Company extended the expiry of all warrants
expiring in 2008 which were exercisable at $0.30 and $0.40.  The
expiry date of these 4,009,585 warrants were extended by one year from original
expiry.





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.





A list of
the exhibits required to be filed as part of this report are presented in the
Exhibit Index.








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.





Dated:  August
19, 2008





Advanced
ID Corporation





By  
/s/Dan Finch


Dan
Finch
 President
and Director




14





INDEX TO
EXHIBITS





Exhibit
Number and Identification of Exhibit





(3)
            Articles
      of Incorporation, By-Laws and Stock Option Plan.(i)
            Articles
      of Incorporation. 1(ii)
            ByLaws.  1(iii)
            Stock
      Option and Incentive Plan revised December 16,
      2004.  9(10)
            Material
      Contracts.(i)
            Agreement
      and Plan of Merger between AIDO Acquisition, Inc., Advanced ID and
      Universal Pet Care, Inc.  3(ii)
            Authorized
      Distributor Agreement with Trace Australia Pty Ltd. 4(iii)
            Consultant
      Agreement with Hubert Meier Consultancy Co.dated May 21, 2002.
  4(iv)
            Convertible
      Debenture Purchase Agreement between Universal Pet Care, Inc. and HEM
      Mutual Assurance LLC. 3(v)
            $995,500
      1% Convertible Debenture due January 20, 2009,originally issued by
      Universal Pet Care, Inc., a Hawaii corporation to HEM Mutual Assurance LLC
      on January 20, 2004.3(vi)
            $4,500
      1% Convertible Debenture due January 20, 2009, originally issued by
      Universal Pet Care, Inc., a Hawaii corporation to HEM Mutual Assurance LLC
      on January 20, 2004. 3(vii)
            Strategic
      Partnership Agreement with Applied Wireless Identifications Group, Inc.
      5(viii
            Strategic
      Partnership Agreement with KSW Microtec AG. 5(ix)
            Strategic
      Partnership Agreement with Guide-Trend Co., Ltd. 5(x)
            Consulting
      Agreement with Gottfried Auer dated April 15, 2003. 6(xi)
            Authorized
      Exclusive Distributor Agreement with Kit Loong Tyre Management Sdn Bhd
      dated September 15, 2007.7(xii)
            Asset
      Purchase Agreement dated July 1, 2007 .8(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.31.1
            Statement
      Under Oath of Principal Executive Officer of the Company pursuant to
      Section 302 of Sarbanes-Oxley Act of 2002.31.2
            Statement
      Under Oath of Principal Financial Officer of the Company pursuant to
      Section 302 of Sarbanes-Oxley Act of 2002.32.1
            Statement
      Under Oath of Principal Executive Officer of the Company pursuant to
      Section 906 of Sarbanes-Oxley Act of 2002.32.2
            Statement
      Under Oath of Principal Financial Officer of the Company pursuant to
      Section 906 of Sarbanes-Oxley Act of
2002.




1. Filed
previously on Form 10-KSB filed April 28, 1999.


2. Filed
previously on Form 10-QSB filed May 13, 2004.


3. Filed
previously on Form 8-K filed February 10, 2004.


4. Filed
previously on Form SB-2 amendment 1 filed September 14, 2004.


5. Filed
previously on Form SB-2 amendment 2 filed December 1,2004.


6. Filed
previously on Form SB-2 amendment 4 filed April 7,2005.


7. Filed
previously on Form SB-2 amendment 2 filed October 2,2007.


8. Filed
previously on Form 8-K filed November 6, 2007.


9 Filed
previously on Form 10-QSB dated November 11, 2005





15