| SMARTMETRIC,                INC.                                                 |
|----------------------------------------------------------------------------------|
|                                                                             |
| (Name                of Small Business Issuer in its charter)                    |
|                                                                             |   |
| Nevada                                                                           | 05-0543557 |
|                                                                             |
| (State                or other jurisdiction of                                   | (I.R.S.                Employer |
| incorporation                or organization)                                    | Identification                No.) |
|                                                                             |   |
| 9553                Harding Avenue, Suite 303 Surfside, Florida                  | 33154 |
|                                                                                  |
| (Address                of principal executive offices)                          | (Zip                Code) |
|                                                                             |   |
| Registrant's                telephone number, including area code (786) 623-5690 |
|                                                                             |   |
| Securities                registered pursuant to Section 12(g) of the Act:       |
|                                                                             |   |
| Common                Stock $.001 Par Value                                      |
|                                                                             |
| (Title                of Class)                                                  |

----

|                    |                                                                                                                                                              | Page                # |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|
| PART                I   |                                                                                                                                                              |                  |
|                    |                                                                                                                                                              |                  |
| Item                1:  | Description                of Business                                                                                                                       | 3                     |
|                    |                                                                                                                                                              |                  |
| Item                2:  | Description                of Property                                                                                                                            | 8                     |
|                    |                                                                                                                                                              |                  |
| Item                3:  | Legal                Proceedings                                                                                                                                  | 8                     |
|                    |                                                                                                                                                              |                  |
| Item                4:  | Submission                of Matters to a Vote if Security Holders                                                                                                | 8                     |
|                    |                                                                                                                                                              |                  |
| PART                II  |                                                                                                                                                              |                  |
|                    |                                                                                                                                                              |                  |
| Item                5:  | Market                for the Registrant’s Common Stock, Related Stockholder Matters and Small                Business Issuer Purchase of Equity Securities | 9                     |
|                    |                                                                                                                                                              |                  |
| Item                6:  | Management’s                Discussion & Analysis of Financial Condition and Results of                Operations                                       | 9                     |
|                    |                                                                                                                                                              |                  |
| Item                7:  | Financial                Statements                                                                                                                               | 12                    |
|                    |                                                                                                                                                              |                  |
| Item                8:  | Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure                                                | 25                    |
|                    |                                                                                                                                                              |                  |
| Item                8A: | Control                and Procedures                                                                                                                             | 22                    |
|                    |                                                                                                                                                              |                  |
| Item                8B: | Other                Information                                                                                                                                  | 25                    |
|                    |                                                                                                                                                              |                  |
| PART                III |                                                                                                                                                              |                  |
|                    |                                                                                                                                                              |                  |
| Item                9:  | Directors                and Executive Officers of the Registrant                                                                                                 | 26                    |
|                    |                                                                                                                                                              |                  |
| Item                10: | Executive                Compensation                                                                                                                             | 28                    |
|                    |                                                                                                                                                              |                  |
| Item                11: | Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters                                      | 29                    |
|                    |                                                                                                                                                              |                  |
| Item                12: | Certain                Relationships and Related Transactions                                                                                                     | 29                    |
|                    |                                                                                                                                                              |                  |
| Item                13: | Exhibits                                                                                                                                                          | 30                    |
|                    |                                                                                                                                                              |                  |
| Item                14: | Principal                Accountant Fees and Services                                                                                                             | 31                    |
|                    |                                                                                                                                                              |                  |
|                    | Signatures                                                                                                                                                        |  32              |

----

**PART      I**

| ITEM                1. | DESCRIPTION                OF BUSINESS |
|------------------------|----------------------------------------|

**General**

**The      SmartMetric Biometric Card**

| ·   | The                fingerprint sensor will facilitate instant authorization                verification; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | In                card biometric measurement storage will safeguard personal                information; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | In                card biometric storage will permit access, identity and transaction                control verification; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Instant                identity verification will be secure since such information is contained                in the card and not in centralized                database |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Fingerprint      Sensor**

----

**The      Security Technology Industry**

***Biometrics***

| ·   | Something                known such as a password, PIN or mother's maiden                name; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Something                carried such as a token, card, or key;                or |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Something                physical such as fingerprint, voice pattern, signature motion, facial                shape or other biological or behavioral                characteristic. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**The      SmartMetric SmartCard**

**The      Patent**

----

| ·   | A                system for managing digital rights of digital content over a                network. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | A                data card contains user information including digital rights information                specific to a users, the data card having memory component for enabling                information to be stored within the data                card. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                data card reader is adapted to access the user information contained                on                the data card when the data card is in communication with a card                reading                device. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                data processor in communication with the data card reader is adapted                to be                connected to the network. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An                application program resides on the memory component of the data card,                the                application program being configured to operate in conjunction with                a                universal language for creating and controlling digital rights, to                manage                user rights of the digital content available on the network based                on the                digital rights information specific to the user which is contained                on the                data card. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**License      Agreements**

----

**Competition**

**Employees**

| ITEM                2. | DESCRIPTION                OF PROPERTY |
|------------------------|----------------------------------------|

| ITEM                3. | LEGAL                PROCEEDINGS |
|------------------------|----------------------------------|

| ITEM                4. | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS: |
|------------------------|------------------------------------------------------------------------------------|

----

**PART      II**

| ITEM                5. | MARKET                FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER                MATTERS: |
|------------------------|---------------------------------------------------------------------------------------------------------|

| Second                  Quarter 2006 |
|--------------------------------------|
|                                 |   |   |
| High                  Bid            |   | Low                  Bid |
| $1.55                                |   | $0.58 |
|                                 |   |   |
| Third                  Quarter 2006  |
|                                 |   |   |
| High                  Bid            |   | Low                  Bid |
| $1.00                                |   | $0.50 |

| ITEM                6. | PLAN                OF OPERATION |
|------------------------|----------------------------------|

**Overview**

----

**Plan      of Operation**

----

**Completion      of Prototype**

**Production      of SmartCards**

|                                          | YEAR                  ENDEDJUNE                  30 |
|-----------------------------------------------|-----------------------------------------------------|
|                                          | 2006                                                | 2005 |
| Net                  Sales                    | $                                                   | 0 | $ | 0 |
| Cost                  of Sales                | $                                                   | 0 | $ | 0 |
| Expenses                                      | $                                                   | 1,225,045 | $ | (258,355) |
| Income                  (loss) from operation | $                                                   | (1,225,045) | $ | (258,355) |

----

**Forward      Looking Statements**

| ITEM                7. | FINANCIAL                STATEMENTS |
|------------------------|-------------------------------------|

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Index        to Financial Statements**

|                                                                       |                                                                                |                                                                      | Page   |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------|--------|
|                                                                       |                                                                                |                                                                      |   |
| Report                    of Independent Registered Public Accounting Firm | F-2                                                                                 |
|                                                                       |                                                                                |                                                                      |
| Financial                    Statements:                                   |                                                                                |                                                                      |
|                                                                       |                                                                                |                                                                      |
|                                                                       | Consolidated                    Balance Sheets as of June 30, 2006 and 2005         | F-3                                                                       |
|                                                                       |                                                                                |                                                                      |   |
|                                                                       | Consolidated                    Statements of Operations for the years ended        |                                                                      |
|                                                                       |                                                                                | June                    30, 2006 and 2005 and for the period December 18, |   |
|                                                                       |                                                                                | 2002                    (inception) to June 30, 2006                 | F-4    |
|                                                                       |                                                                                |                                                                      |   |
|                                                                       | Consolidated                    Statements of Changes in Stockholders’ Equity |                                                                      |
|                                                                       |                                                                                | for                    the period December 18, 2002 (inception)           |   |
|                                                                       |                                                                                | to                    June 30, 2006                                       | F-5    |
|                                                                       |                                                                                |                                                                      |   |
|                                                                       | Consolidated                    Statements of Cash Flows for the years ended        |                                                                      |
|                                                                       |                                                                                | June                    30, 2006 and 2005 and for the period December 18, |   |
|                                                                       |                                                                                | 2002                    (inception) to June 30, 2006                      | F-7    |
|                                                                       |                                                                                |                                                                      |   |
|                                                                       | Notes                    to Consolidated Financial Statements                       | F-8                                                                       |
|                                                                       |                                                                                |                                                                      |   |

----

**REPORT          OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

| **SMARTMETRIC,                      INC. AND SUBSIDIARY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(A                      Development Stage Company)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Consolidated                      Balance Sheets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **June                      30,** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **2006** |   |   | **2005** |
| **Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |
| Current                      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $ | 63,243 |   | $ | 928 |
| Stock                      subscriptions receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | - |   |   | 15,000 |
| Due                      from related party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 37,484 |   |   | 20,873 |
| Prepaid                      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2,900 |   |   | 1,400 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 103,627 |   |   | 38,201 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Equipment,                      less accumulated depreciation of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
| $629                      and $0, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 5,102 |   |   | - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Other                      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |
| Patent                      costs, less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
| of                      $2,625 and $1,125, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 12,375 |   |   | 13,875 |
| Deferred                      offering costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | - |   |   | 135,000 |
| Organization                      costs - net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 180 |   |   | 300 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $ | 121,284 |   | $ | 187,376 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| **Liabilities                      and Stockholders' Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Current                      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |
| Accounts                      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ | 75,775 |   | $ | 115,788 |
| Accrued                      salary due to president                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 3,269 |   |   | 85,000 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 79,044 |   |   | 200,788 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Other                      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | - |   |   | - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 79,044 |   |   | 200,788 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Common                      stock subject to possible rescission (160,837 shares)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 241,256 |   |   | 241,256 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Stockholders'                      equity :                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |
| Preferred                      stock, $.01 par value; 5,000,000 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
| authorized,                      0 shares issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | - |   |   | - |
| Class                      A common stock, $.001 par value; 50,000,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
| shares                      authorized, issued and outstanding 0 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| 50,000,000                      shares, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | - |   |   | 50,000 |
| Common                      stock, $.001 par value; 100,000,000 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
| authorized,                      issued and outstanding 59,556,369 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
| 8,560,257                      shares, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 59,556 |   |   | 8,560 |
| Additional                      paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 1,260,866 |   |   | (18,835) |
| Deficit                      accumulated during the development stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (1,519,438) |   |   | (294,393) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      stockholders' equity (deficiency)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (199,016) |   |   | (254,668) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Total                      liabilities and stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ | 121,284 |   | $ | 187,376 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| See                      notes to consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
|                                                                                                                                     F-3  |   |   |   |   |   |

----

| **SMARTMETRIC,                    INC. AND SUBSIDIARY**            |
|--------------------------------------------------------------------|
| **(A                    Development Stage Company)**               |
| **Consolidated                    Statements of Operations**       |
|                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   | **Cumulative** |   |
|                                                               |   |   |   |   |   |   |   |   | **During                    the** |   |
|                                                               |   |   |   |   |   |   |   |   | **Development** |   |
|                                                               |   |   |   |   |   |   |   |   | **Stage** |   |
|                                                               |   | **Year                    Ended** |   |   | **Year                    Ended** |   |   |   | **(December                    18, 2002** |   |
|                                                               |   | **June                    30,** |   |   | **June                    30,** |   |   |   | **to                    June 30,** |   |
|                                                               |   | **2006** |   |   | **2005** |   |   |   | **2006)** |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                           | $ | - |   | $ | - |   |   | $ | - |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                          |   |   |   |   |   |   |   |   |   |   |
| Officer's                    salary                                |   | 170,000 |   |   | 85,000 |   |   |   | 255,000 |   |
| Other                    general and administrative                |   | 856,467 |   |   | 65,838 |   |   |   | 929,008 |   |
| Research                    and development                        |   | 198,578 |   |   | 107,517 |   |   |   | 335,430 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Total                    expenses                                  |   | 1,225,045 |   |   | 258,355 |   |   |   | 1,519,438 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                        | $ | (1,225,045) |   | $ | (258,355) |   |   | $ | (1,519,438) |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Net                    loss per share, basic and diluted           | $ | (0.02) |   | $ | (0.00) |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average number of common               |   |   |   |   |   |   |   |   |   |   |
| shares                    outstanding, basic and diluted           |   | 59,119,659 |   |   | 58,560,257 |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
| See                    notes to consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         F-4 |   |   |   |   |   |   |   |   |

----

| **SMARTMETRIC,                  INC. AND SUBSIDIARY**                           |
|---------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                              |
| **Consolidated                  Statements of Changes in Stockholders' Equity** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |  | **Deficit **  |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **Accumulated**  |   | **Total** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   | **Additional** |   |   | **During                  the** |  | **Stockholders'**  |
|                                                                            | **Class                  A Common Stock** |   | **Common                  Stock** |   |   | **Paid-In** |   |  | **Development**  |   | **Equity** |
|                                                                            | **Shares** |   |   | **Amount** |   | **Shares** |   |   | **Amount** |   |   | **Capital** |   |   | **Stage** |   | **(Deficiency)** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for period                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December                  18, 2002                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (date                  of inception)                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                  June 30, 2003                                               | - |   | $ | - |   | - |   | $ | - |   | $ | - |   | $ | (60) | $ | (60) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,                  June 30, 2003                                        | - |   |   | - |   | - |   |   | - |   |   | - |   |   | (60) |   | (60) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of Class A                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                  stock in                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| October                  2003 at a price                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                  $.001 per share                                             | 50,000,000 |   |   | 50,000 |   | - |   |   | - |   |   | - |   |   | - |   | 50,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from                  October 2003                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                  June 2004 at a                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price                  of $.01 per share                                        | - |   |   | - |   | 8,560,257 |   |   | 8,560 |   |   | 77,042 |   |   | - |   | 85,602 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for year ended                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2004                                                  | - |   |   | - |   | - |   |   | - |   |   | - |   |   | (35,978) |   | (35,978) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,                  June 30, 2004                                        | 50,000,000 |   |   | 50,000 |   | 8,560,257 |   |   | 8,560 |   |   | 77,042 |   |   | (36,038) |   | 99,564 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                  associated with                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| sale                  of common stock                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subject                  to possible                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| rescission                                                                      | - |   |   | - |   | - |   |   | - |   |   | (95,877) |   |   | - |   | (95,877) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for year ended                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2005                                                  | - |   |   | - |   | - |   |   | - |   |   | - |   |   | (258,355) |   | (258,355) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,                  June 30, 2005                                        | 50,000,000 |   |   | 50,000 |   | 8,560,257 |   |   | 8,560 |   |   | (18,835) |   |   | (294,393) |   | (254,668) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of common stock                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from                  August 2005 to                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                  2006 in public                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| offering                  at $1.50 per                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share,                  less offering                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| costs                  of $138,471                                              | - |   |   | - |   | 743,648 |   |   | 744 |   |   | 976,257 |   |   | - |   | 977,001 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial statements.                |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| F-5                                               |   |   |   |   |   |   |   |   |   |   |   |

----

| **SMARTMETRIC,                  INC. AND SUBSIDIARY**                           |
|---------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                              |
| **Consolidated                  Statements of Changes in Stockholders' Equity** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |  | **Deficit **  |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **Accumulated**  |   | **Total** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   | **Additional** |   |   | **During                  the** |  | **Stockholders'** |
|                                                                            | **Class                  A Common Stock** |   | **Common                  Stock** |   |   | **Paid-In** |   |  | **Development**  |   | **Equity** |
|                                                                            | **Shares** |   |   | **Amount** |   | **Shares** |   |   | **Amount** |   |   | **Capital** |   |   | **Stage** |   | **(Deficiency)** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of Class A                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                  stock to                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                  stock by                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| related                  parties in                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                  and May 2006                                          | (50,000,000) |   |   | (50,000) |   | 50,000,000 |   |   | 50,000 |   |   | - |   |   | - |   | - |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of $60,000                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| loans                  payable and                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accrued                  interest to                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common                  stock in                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                  2006                                                     | - |   |   | - |   | 40,000 |   |   | 40 |   |   | 62,360 |   |   | - |   | 62,400 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                  issued for services                                     | - |   |   | - |   | 20,000 |   |   | 20 |   |   | 19,980 |   |   | - |   | 20,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                  of Units from May                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2006                  to June 2006 in                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| private                  offering at $1.15                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| per                  Unit less offering                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| costs                  of $38                                                   | - |   |   | - |   | 192,464 |   |   | 192 |   |   | 221,104 |   |   | - |   | 221,296 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for year ended                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2006                                                  | - |   |   | - |   | - |   |   | - |   |   | - |   |   | (1,225,045) |   | (1,225,045) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,                  June 30, 2006                                        | - |   | $ | - |   | 59,556,369 |   | $ | 59,556 |   | $ | 1,260,866 |   | $ | (1,519,438) | $ | (199,016) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial statements.                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |                F-6 |   |   |  |   |   |   |   |   |   |   |   |

----

| **SMARTMETRIC,                  INC. AND SUBSIDIARY**                       |
|-----------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                          |
| **Consolidated                  Statements of Cash Flows**                  |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   | **Cumulative** |   |
|                                                                        |   |   |   |   |   |   |   |   | **During                  the** |   |
|                                                                        |   |   |   |   |   |   |   |   | **Development** |   |
|                                                                        |   |   |   |   |   |   |   |   | **Stage** |   |
|                                                                        |   | **Year                  Ended** |   |   | **Year                  Ended** |   |   |   | **(December                  18, 2002** |   |
|                                                                        |   | **June                  30,** |   |   | **June                  30,** |   |   |   | **to                  June 30,** |   |
|                                                                        |   | **2006** |   |   | **2005** |   |   |   | **2006)** |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from operating activities:                      |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                   | $ | (1,225,045) |   | $ | (258,355) |   |   | $ | (1,519,438) |   |
| Interest                  accrued on convertible notes payable              |   | 2,400 |   |   | - |   |   |   | 2,400 |   |
| Shares                  issued for services                                 |   | 20,000 |   |   | - |   |   |   | 20,000 |   |
| Depreciation                  of equipment                                  |   | 629 |   |   | - |   |   |   | 629 |   |
| Amortization                  of patent costs                               |   | 1,500 |   |   | 1,125 |   |   |   | 2,625 |   |
| Changes                  in operating assets and liabilities:               |   |   |   |   |   |   |   |   |   |   |
| Due                  from related party                                     |   | (16,611) |   |   | (20,873) |   |   |   | (37,484) |   |
| Prepaid                  expenses                                           |   | (1,500) |   |   | (1,400) |   |   |   | (2,900) |   |
| Organization                  costs                                         |   | 120 |   |   | 120 |   |   |   | (180) |   |
| Accounts                  payable and accrued expenses                      |   | (40,013) |   |   | 114,538 |   |   |   | 75,775 |   |
| Accrued                  salary due to president                            |   | (81,731) |   |   | 85,000 |   |   |   | 3,269 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                  cash used for operating activities                     |   | (1,340,251) |   |   | (79,845) |   |   |   | (1,455,304) |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from investing activities:                      |   |   |   |   |   |   |   |   |   |   |
| Equipment                  purchased                                        |   | (5,731) |   |   | - |   |   |   | (5,731) |   |
| Patent                  costs incurred                                      |   | - |   |   | (15,000) |   |   |   | (15,000) |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                  cash used for investing activities                     |   | (5,731) |   |   | (15,000) |   |   |   | (20,731) |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                      |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from notes payable                                |   | 60,000 |   |   | - |   |   |   | 60,000 |   |
| Loans                  from related party                                   |   | - |   |   | 2,577 |   |   |   | 54,427 |   |
| Repayment                  of loans from related party                      |   | - |   |   | (54,427) |   |   |   | (54,427) |   |
| Stock                  subscriptions collected from private placements, net |   | 236,296 |   |   | 165,981 |   |   |   | 502,277 |   |
| Sale                  of common stock in public offering                    |   | 1,115,472 |   |   | - |   |   |   | 1,115,472 |   |
| Public                  offering costs incurred                             |   | (3,471) |   |   | (82,500) |   |   |   | (138,471) |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                  cash provided by financing activities                  |   | 1,408,297 |   |   | 31,631 |   |   |   | 1,539,278 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                  increase (decrease) in cash                            |   | 62,315 |   |   | (63,214) |   |   |   | 63,243 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash,                  beginning of period                                  |   | 928 |   |   | 64,142 |   |   |   | - |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash,                  end of period                                        | $ | 63,243 |   | $ | 928 |   |   | $ | 63,243 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Supplemental                  disclosures of cash flow information:         |   |   |   |   |   |   |   |   |   |   |
| Interest                  paid                                              | $ | - |   | $ | - |   |   | $ | - |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes paid                                          | $ | - |   | $ | - |   |   | $ | - |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |
| See                  notes to consolidated financial statements.            |   |   |   |   |   |   |   |   |   |   |
| F-7                                                                         |   |   |   |   |   |   |   |   |   |   |

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        1 - ORGANIZATION**

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        3 - DUE FROM RELATED PARTY**

**NOTE        4 - STOCK SUBSCRIPTIONS RECEIVABLE**

**NOTE        5 - PATENT COSTS **

|                                                                    |   |   | June                  30, |
|-------------------------------------------------------------------------|--------|--------|---------------------------|
|                                                                    |   |   | 2006                      |   |   | 2005 |
|                                                                    |   |   |                      |   |   |   |
| Legal                  fees paid in connection with patent applications |   |   |                      |   |   |   |
| for                  products covered under the Company's               |   |   |                      |   |   |   |
| license                  agreement with ACI (see note 10)               |   | $      | 15,000                    |   | $ | 15,000 |
|                                                                    |   |   |                      |   |   |   |
| Less                  accumulated amortization                          |   |   | (2,625)                   |   |   | (1,125) |
|                                                                    |   |   |                      |   |   |   |
| Net                                                                     |   | $      | 12,375                    |   | $ | 13,875 |
|                                                                    |   |   |                      |   |   |   |

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        6 - DEFERRED OFFERING COSTS**

**NOTE        7 - COMMON STOCK SUBJECT TO POSSIBLE RESCISSION **

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        8 - STOCKHOLDERS’ EQUITY**

**NOTE        9 - INCOME TAXES**

|                                              |   |   | June                  30, |
|---------------------------------------------------|--------|--------|---------------------------|
|                                              |   |   | 2006                      |   |   | 2005 |
|                                              |   |   |                      |   |   |   |
|                                              |   |   |                      |   |   |   |
| Net                  operating loss carryforwards |   | $      | 516,609                   |   | $ | 100,094 |
| Less                  valuation allowance         |   |   | (516,609)                 |   |   | (100,094) |
|                                              |   |   |                      |   |   |   |
| Net                                               |   | $      | -                         |   | $ | - |
|                                              |   |   |                      |   |   |   |

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        10 - COMMITMENTS AND CONTINGENCIES**

| Year                    ended June 30, | Minimum                    lease commitments |
|----------------------------------------|----------------------------------------------|
|                                   |                                         |
| 2007                                   | $27,211                                      |
|                                   |                                         |
| Total                                  | $27,211                                      |

----

**SMARTMETRIC,        INC. AND SUBSIDIARY**

**(A        Development Stage Company)**

**Notes        to Consolidated Financial Statements**

**For        the Years Ended June 30, 2006 and 2005 and **

**For        the Period December 18, 2002 **

**(Date        of Inception) to June 30, 2006 **

**NOTE        11 - SUBSEQUENT EVENTS **

----

| ITEM8. | CHANGES                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                DISCLOSURE |
|--------|--------------------------------------------------------------------------------------------------------------------|

| ITEM                8A. | CONTROL                AND PROCEDURES |
|-------------------------|---------------------------------------|

| ITEM                8B. | OTHER                INFORMATION |
|-------------------------|----------------------------------|

----

**PART      III**

| ITEM                9. | DIRECTORS                AND EXECUTIVE OFFICERS OF THE                REGISTRANT |
|------------------------|----------------------------------------------------------------------------------|

| **Name**** **                                                                                             | **Age**  | **Position                with the Company**                                                                                       |
|----------------------------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                           |     |                                                                                                                               |
| Colin                Hendrick9195                Collins Ave #302Surfside,                Florida 33154        |  50 | President,                Chief Executive Officer, Chief Financial Officer and Chairman of                the                Board |
|                                                                                                           |     |                                                                                                                               |
| Peter                Sleep 3                Bernadette Court East                Doncaster, Victoria Australia |  61 |  Vice                President of Sales - Asia Pacific                                                                        |
|                                                                                                           |     |                                                                                                                               |
| Joseph                Katzman 790                Montgomery Street Brooklyn,                New York 11213     |  49 |  Director                                                                                                                     |
|                                                                                                           |     |                                                                                                                               |
| Elizabeth                Ryba73                Brown RoadScarsdale,                New York 10583              |  55 |  Director                                                                                                                     |

**Biography**

**COLIN      HENDRICK**

**PETER      SLEEP,**

**JOSEPH      KATZMAN**

**ELIZABETH      RYBA**
** **

----

**Family      Relationships**

**Involvement      in Certain Legal Proceedings**

**Audit      Committee Financial Expert**

**Identification      of the Audit Committee**

**Code      of Ethics**

**Compliance      with Section 16(a) of the Securities Act of 1934**

----

| SUMMARY                COMPENSATION TABLE                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                    |   | Annual                Compensation | Long                Term Compensation |   |
|                                                                                                                                                    |   |   |   |   | Awards | Payouts |   |
| Name                and PrincipalPosition** **** **                                                                                           | Year | Salary                (US$) | Bonus                (US$) | Other                Annual Compen-sation (US$) | Securities                Underlying Options/SAR                Granteds | Restricted                Shares or Restricted Share Units | LTIP                Payouts (US$) | All                Other Compen-sation |
| Colin                Hendrick (1) President,                Chief Executive Officer, Chief Financial Officer, Chairman of the                Board | 20042005 | Nil85,000 | NilNil | NilNil | NilNil | NilNil | NilNil | NilNil |
|                                                                                                                                                    | 2005 | 170,000 | Nil | Nil | Nil | Nil | Nil | Nil |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Peter                SleepVice                President, Asia Pacific Sales, Director                                                                   | 2004 | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
|                                                                                                                                                    | 2005 | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
|                                                                                                                                                    | 2006 | Nil | Nil | 52,920 | Nil | Nil | Nil | Nil |

| **(1)  ** | SmartMetric                has entered into an employment agreement with Mr. Hendrick effective                July                1, 2004, which expired June 30, 2006. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM11. | SECURITY                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND                MANAGEMENT |
|---------|----------------------------------------------------------------------------------------------|

| **NAME/ADDRESS****BENEFICIAL****OWNER****(1)**                                                                           | **NUMBER****OF****SHARES** | **%                OF CLASS** | **TITLE                OF CLASS** |
|--------------------------------------------------------------------------------------------------------------------------|----------------------------|-------------------------------|-----------------------------------|
|                                                                                                                     |                       |                          |                              |
| Colin                Hendrick (2)9195                  Collins Ave #302Surfside,                  Florida 33154          |   49,500,000     | 84.3%                         | Common                Stock       |
|                                                                                                                     |                       |                          |                              |
| Peter                Sleep   3                Bernadette CourtEast                Doncaster, VictoriaAustralia | 1,060,000(3)               | 1.8%                          | Common                Stock       |
|                                                                                                                     |                       |                          |                              |
| Joseph                Katzman  790                Montgomery StreetBrooklyn,                New York 11213          | 0                          | 0%                            | Common                Stock       |
|                                                                                                                     |                       |                          |                              |
| Elizabeth                Ryba73                Brown RoadScarsdale,                New York 10583                        | 0                          | 0%                            | Common                Stock       |
|                                                                                                                     |                       |                          |                              |
| All                Officers and Directorsas                a Group (4 persons)                                           | 50,560,000                 | 86.1%                         | Common                Stock       |

| (1)   | Each                shareholder has sole voting and investment power with respect to                his/her                shares. Each shareholder has sole voting and investment power with                respect                to his/her shares. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Effective                May 25, 2006, Applied Cryptology, Inc., a Nevada corporation owned                and                controlled by Mr. Hendrick, converted its 49,500,000 shares of Class                A                common stock into 49,500,000 shares of common                stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes                500,000 shares owned by Trinity Trust. Mr. Sleep is trustee of the                Trinity                Trust. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM                13. | EXHIBITS |
|-------------------------|----------|

| (a)    | The                exhibits required by Item 601 of Regulation S-B are as                follows: |
|--------|---------------------------------------------------------------------------------------------------|
|   |                                                                                              |   |
|   | 3.1                                                                                               | Certificate                of Incorporation of SmartMetric, Inc. (1) |
|   |                                                                                              |   |
|   | 3.2                                                                                               | By-laws                of SmartMetric, Inc. (1) |
|   |                                                                                              |   |
|   | 4.1                                                                                               | Specimen                Certificate of Common Stock. (1) |
|   |                                                                                              |   |
|   | 10.1                                                                                              | License                Agreement between SmartMetric and Applied Cryptology, Inc. (3) |
|   |                                                                                              |   |
|   | 10.2                                                                                              | Employment                Agreement - Colin Hendrick (2) |
|   |                                                                                              |   |
|   | 10.3                                                                                              | Agreement                between SmartMetric and ISI (1) |
|   |                                                                                              |   |
|   | 10.4                                                                                              | Employment                Agreement Extension (4) |
|   |                                                                                              |   |
|   | 14.1                                                                                              | Code                of Ethics (1) |
|   |                                                                                              |   |
|   | 21.1                                                                                              | Subsidiaries                of SmartMetric (2) |
|   |                                                                                              |   |
|   | 23.2                                                                                              | Independent                Auditor’s Consent |
|   |                                                                                              |   |
|   | 99.1                                                                                              | Subscription                Agreement. (4) |
|   |                                                                                              |   |
|   | 99.2                                                                                              | Lease                Agreement for Florida Office (3) |

| (1)   | Filed                with original registration statement on September 3,                2004 |
|-----------------|-----------------------------------------------------------------------------------------------|

| (2)   | Filed                with Amendment No. 1 on February 3,                2005 |
|-----------------|------------------------------------------------------------------------------|

| (3)   | Filed                with Amendment No. 3 May 23, 2005 |
|-----------------|--------------------------------------------------------|

| (4)   | Filed                with Amendment No. 5 June 27, 2005 |
|-----------------|---------------------------------------------------------|

----

| ITEM                14. | PRINCIPAL                ACCOUNTANT FEES AND SERVICES |
|-------------------------|-------------------------------------------------------|

**Audit      Fees**

**Audit      - Related Fees**

**Tax      fees**

**All      other Fees**

**Audit      Committee Pre-Approval Policies and Procedures**

----

**SIGNATURES**

|   | SMARTMETRIC,                INC. (Registrant) |
|--------|-----------------------------------------------|
|   |                                          |   |
|   | By:                                           | /s/                Colin Hendrick |
|   |                                          | Colin                Hendrick |
|   |                                          | President,                Chief Executive Officer |
|   |                                          |   |
|   | Dated:                                        | December                29, 2006 |

|   | By:    | /s/                Colin Hendrick                                                                                |
|--------|--------|------------------------------------------------------------------------------------------------------------------|
|   |   | Colin                Hendrick                                                                                    |
|   |   | President,                Chief Executive Officer, Chief Financial Officer, Chairman of the                Board |
|   |   |                                                                                                             |
|   | Dated: | December                29, 2006                                                                                 |

|   | By:    | /s/                Peter J. Sleep                                |
|--------|--------|------------------------------------------------------------------|
|   |   | Peter                J. Sleep                                    |
|   |   | Vice                President of Sales - Asia Pacific, Secretary |
|   |   |                                                             |
|   | Dated: | December                29, 2006                                 |

|   | By:    | /s/                Joseph Katzman |
|--------|--------|-----------------------------------|
|   |   | Joseph                Katzman     |
|   |   | Director                          |
|   |   |                              |
|   | Dated: | December                29, 2006  |

|   | By:    | /s/                Elizabeth Ryba |
|--------|--------|-----------------------------------|
|   |   | Elizabeth                Ryba     |
|   |   | Director                          |
|   |   |                              |
|   | Dated: | December                29, 2006  |