U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]  Quarterly  report under Section 13 or 15(d) under the  Securities  Exchange
     Act of 1934.

         For the quarterly period ended      June 30, 2001
                                        ------------------------

[ ] Transition report under Section 13 or 15(d) of the Exchange Act.

         For the transition period from           to
                                        ---------    ----------

                        Commission file number 000-28301
                                               ---------

                           ID TECHNOLOGIES CORPORATION
                         ------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)


         North Carolina                                          56-1866233
------------------------------------                         -----------------
   (State or Other Jurisdiction of                           (I.R.S. Employer
   Incorporation or Organization)                           Identification No.)

                        920 Main Campus Drive / Suite 400
                          Raleigh, North Carolina 27606
                     --------------------------------------
                    (Address of Principal Executive Offices)

                                 (919) 424-3722
                 -----------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

                                       N/A

                         -------------------------------
                        (Former Name, Former Address and
                Former Fiscal Year, if Changed Since Last Report)

     Check  whether  the issuer:  (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

Yes      X         No
   ---------------   ---------------

     State the number of shares  outstanding of each of the issuer's  classes of
common  equity,  as of the latest  practicable  date:  The issuer had 10,078,450
shares of common stock outstanding as of July 5, 2001.

         Transitional Small Business Disclosure Format (check one):

Yes                No      X
   ---------------   ---------------




<PAGE>




                                FORM 10-QSB INDEX

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

PART I        FINANCIAL INFORMATION
              Item 1.      Financial Statements.
              Item 2.      Management's Plan of Operation.

PART II       OTHER INFORMATION
              Item 1.      Legal Proceedings.
              Item 2.      Changes in Securities and Use of Proceeds.
              Item 3.      Defaults Upon Senior Securities.
              Item 4.      Submission of Matters to a Vote of Security Holders.
              Item 5.      Other Information.
              Item 6.      Exhibits and Reports on Form 8-K.

SIGNATURES

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

     This  Form  10-QSB  contains  forward-looking  statements.  Any  statements
contained in this Form 10-QSB that are not  statements  of  historical  fact are
intended to be and are hereby  identified as  forward-looking  statements within
the  meaning  of the  Private  Securities  Litigation  Reform  Act of  1995.  ID
Technologies  Corporation,  a  North  Carolina  corporation  (the  "Company"  or
"IDTEK")  cautions  readers that forward  looking  statements  involve known and
unknown risks and uncertainties  which could cause actual results or outcomes to
differ  materially  from  those  expressed  in the  forward-looking  statements.
Forward-looking  statements  include  statements  concerning plans,  objectives,
goals,  strategies,  expectations,  future events or performance  and underlying
assumptions and other  statements  which are other than statements of historical
facts.

     Without  limiting the  foregoing,  words such as "may,"  "will,"  "expect,"
"believe,"  "anticipate,"  "estimate,"  "continue" or comparable terminology are
intended to  identify  forward-looking  statements.  These  statements  by their
nature  involve  substantial  risks and  uncertainties,  and actual  results may
differ  materially  depending  on a variety  of  factors,  many of which are not
within the Company's  control.  These factors  include,  but are not limited to,
economic  conditions  generally  and in the  industries in which the Company may
participate;   competition  within  the  Company's  chosen  industry,  including
competition from much larger competitors; technological advances; and failure by
the  Company  to  successfully   develop  potential   products  and/or  business
relationships and strategic alliances.  In addition to other factors and matters
discussed  elsewhere  herein,  the following are important  factors that, in the
view of the Company,  could cause actual results to differ materially from those
discussed in the  forward-looking  statements:  ability of the Company to obtain
acceptable forms and amounts of financing to fund current and future operations,
research and development and acquisitions;  competition; the Company's operating
losses; the Company's ability to commercially develop its proposed products; the
Company's  ability  to  attract,   hire  and  retain  employees  and  management
personnel; and the Company's ability to control the development and exploitation
of its  technology.  The Company  disclaims  any intent or  obligation to update
these forward-looking statements, whether as a result of new information, future
events or otherwise.


<PAGE>


                          PART I FINANCIAL INFORMATION

Item 1.  Financial Statements

ID Technologies Corporation
(A Development Stage Company)
Condensed Balance Sheet
June 30, 2001 and December 31, 2000
<TABLE>
<CAPTION>

                                                                   June 30, 2001      December 31, 2000
                                                                    (Unaudited)            (Audited)
                                                                    -----------           -----------
<S>                                                                 <C>                    <C>
Assets

Current assets:
   Cash and cash equivalents                                        $    98,603           $    49,311
   Prepaid expenses                                                 $     1,840           $     7,010
                                                                    -----------           -----------
       Total current assets                                         $   100,443           $    56,321
   Equipment, net                                                   $     1,028           $     1,252
   Patents, net                                                     $    25,021           $    19,653
                                                                    -----------           -----------
        Total assets                                                $   126,492           $    77,226
                                                                    ===========           ===========

Liabilities and shareholders' deficit Current liabilities:

    Accounts payable and accrued liabilities                        $    59,278           $    84,053
    Notes payable to shareholder                                    $     3,022           $    22,840
    Notes payable, current                                          $    11,384           $    60,618
    Short term convertible debt, net of discount
         of $12,242                                                 $   172,758           $         0

                                                                    -----------           -----------
          Total current liabilities                                 $   246,442           $   167,511
   Long term notes payable                                          $    29,486           $    35,374
   Long term convertible debt, net of discount
         of $0 and $19,550, respectively                            $         0           $   165,450
   Deferred revenue                                                 $   372,940           $   179,218
Shareholders' deficit:
   Common stock                                                     $   282,953           $   282,953
   Additional paid in capital                                       $ 4,395,625           $ 4,236,417
   Deficit accumulated during

                development stage                                   $(5,200,954)          $(4,989,697)
                                                                    -----------           -----------
       Total shareholders' deficit                                  $  (522,376)          $  (470,327)
                                                                    -----------           -----------
Total liabilities and shareholders' deficit                         $   126,492           $    77,226
                                                                    ===========           ===========
</TABLE>



<PAGE>


ID Technologies Corporation
(A Development Stage Company)
Condensed  Statement  of  Operations  for the six months ended June 30, 2001 and
2000 and for the period from inception (March 16, 1994) through June 30, 2001
<TABLE>
<CAPTION>
                                      6 months  ended 6 months  ended  Inception
                                      3/16/94   June  30,  2001  June  30,  2000
                                      through 6/30/01

                                        (Unaudited)     (Unaudited)      (Unaudited)
                                       ------------     ----------       -----------
<S>                                    <C>             <C>              <C>
License revenue                        $    31,278      $      --        $   126,122
Royalty revenue                        $     4,000      $      --        $     4,000
                                       -----------      -----------      -----------
        Total revenues                 $    35,278      $      --        $   130,122
Research & development                 $      --        $    10,000      $   736,268
Selling, general and
      administrative expenses          $   246,925      $   226,916      $ 4,140,445
                                       -----------      -----------      -----------
         Loss from operations          $  (211,647)     $  (236,916)     $(4,746,591)
Other income and expense:
  Interest income - contractual        $     1,246      $      --        $     4,466
  Gain on disposal of asset            $      --        $      --        $       353
  Forgiveness of debt                  $    20,757      $      --        $    49,474
  Amortization of debt discount on     $    (7,308)     $  (121,308)     $  (290,829)
        convertible debentures
  Interest expense                     $   (14,305)     $   (23,581)     $   (91,827)
  Debt conversion expense              $      --        $      --        $  (126,000)
                                       -----------      -----------      -----------
Net loss                               $  (211,257)     $  (381,805)     $(5,200,954)

Basic and diluted loss
   per common share                    $     (0.02)     $     (0.05)

Weighted average number                  9,927,620        8,335,869
      of common shares
</TABLE>

<TABLE>
<CAPTION>
                                      3 months ended    3 months ended
                                      June 30, 2001     June 30, 2000
                                        (Unaudited)       (Unaudited)
                                       ------------       ----------
<S>                                    <C>             <C>
License revenue                        $      2,832      $       --
                                       ------------      ------------
        Total revenues                 $      2,832      $       --
Selling, general and
      administrative expenses          $    104,342      $    142,602
                                       ------------      ------------
         Loss from operations          $   (101,510)     $   (142,602)
Other income and expense:
  Interest income - contractual        $      1,246      $       --
  Forgiveness of debt                  $     20,757      $       --
  Amortization of debt discount on     $     (3,654)     $    (60,654)
        convertible debentures
  Interest expense                     $     (7,041)     $    (11,900)
                                       ------------      ------------
Net loss                               $    (90,203)     $   (215,156)

Basic and diluted loss
   per common share                    $      (0.01)     $      (0.03)

Weighted average number                  10,007,360         8,393,570
      of common shares
</TABLE>





<PAGE>



<TABLE>
<CAPTION>
                                                ID Technologies Corporation
                                               (A Development Stage Company)

                                        Statements of Shareholders' Equity (Deficit)

                              Period from inception (March 16, 1994) through June 30, 2001

                                                                                          DEFICIT
                                                                            ADDITIONAL  ACCUMULATED
                                                                              PAID-IN     DURING
                                                    SHARES       AMOUNT       CAPITAL    DEVELOPMENT     TOTAL
                                                  ----------   ----------   ----------   ----------    ----------
<S>                                               <C>          <C>          <C>           <C>           <C>

Balance at March 16, 1994                               --           --           --           --            --
Issuance of common shares for cash and
   noncash consideration                           1,595,200          366           33          --           399

Net loss                                                --           --           --           (123)         (123)
                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1994                       1,595,200          366           33         (123)          276
Issuance of common shares for cash and
   noncash consideration                             404,800         --            101         --             101

Net loss                                                --           --           --         (2,263)       (2,263)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1995                       2,000,000          366          134       (2,386)       (1,886)

Issuance of common shares for cash and
   noncash consideration                           6,000,000         --          1,500         --           1,500

Net loss                                                --           --           --        (29,889)      (26,889)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1996                       8,000,000          366        1,634      (32,275)      (30,275)

Issuance of common shares for cash net of
   issuance costs                                    153,333      282,587         --           --         282,587

Capital contribution in form of research
   and development services                             --           --        201,405         --         201,405

Stock-based compensation                                --           --      1,333,600         --       1,333,600

Net loss                                                --           --           --     (1,684,313)   (1,684,313)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1997                       8,153,333      282,953    1,536,639   (1,716,588)      103,004

Issuance of common shares for noncash
   consideration                                      22,500         --         45,000         --          45,000

Capital contribution in form of research
   and development services                             --           --        192,319         --         192,319

Stock-based compensation                                --           --        933,425         --         933,425

Net loss                                                --           --           --     (1,426,725)   (1,426,725)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1998                       8,175,833      282,953    2,707,383   (3,143,313)     (152,977)

Issuance of warrants in connection with
   issuance of convertible debt                         --           --        271,870         --         271,870

Capital contribution in form of research
   and development services                             --           --        269,441         --         269,441

Issuance of common shares for noncash
   consideration                                     101,750         --        142,165         --         142,165

Net loss                                                --           --           --       (939,741)     (939,741)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 1999                       8,277,583      282,953    3,390,859   (4,083,054)     (409,242)

Conversion of convertible debt to equity             250,000         --        100,000         --         100,000

Issuance of beneficial conversion features in
   connection with issuance of convertible debt         --           --         31,200         --          31,200

Debt conversion expense                                 --           --        126,000         --         126,000

Capital contribution in form of research and
   development services                                 --           --         72,600         --          72,600

Issuance of common shares for noncash
   consideration                                     211,759         --        116,148         --         116,148

Issuance of common shares for cash                   944,963         --        399,610         --         399,610

Net loss                                                --           --           --       (906,644)     (906,644)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at December 31, 2000                       9,684,305      282,953    4,236,417   (4,989,697)     (470,327)

Issuance of common shares for noncash
   consideration                                      65,499         --         32,497         --          32,497

Issuance of common shares for cash                   257,556         --        103,023         --         103,023

Net loss                                                --           --           --       (121,054)     (121,054)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at March 31, 2001                         10,007,360      282,953    4,371,937   (5,110,751)     (455,861)

Issuance of common shares for noncash
   consideration                                      71,090         --         23,688         --          23,688

Net loss                                                --           --           --        (90,203)      (90,203)

                                                  ----------   ----------   ----------   ----------    ----------
Balance at June 30, 2001                          10,078,450      282,953    4,395,625   (5,200,954)     (522,376)
</TABLE>


<PAGE>


ID Technologies Corporation
(A Development Stage Company)
Condensed Statement of Cash Flows
for the six  months  ended  June  30,  2001 and  2000  and for the  period  from
inception (March 16, 1994) through June 30, 2001
<TABLE>
<CAPTION>
                                                             6 months ending    6 months ending   Inception3/16/94
                                                              June 30, 2001     June 30, 2000    through 6/30/01
                                                              --------------     --------------    ---------------
                                                                (Unaudited)       (Unaudited)         (Unaudited)
<S>                                                             <C>                <C>                 <C>
Cash flows from operating activities:
Net loss                                                        $  (211,257)        $  (381,805)        $(5,200,954)
Adjustments to reconcile net loss to net cash
  used in operation activities:
    Depreciation                                                $       225         $       376         $     2,292
    Amortization                                                $     2,732         $     1,992         $    17,282
    Deferred revenue                                            $   193,722         $      --           $   372,940
    Gain on disposal of equipment                               $      --           $      --           $      (353)
    Stock based compensation                                    $      --           $      --           $ 2,267,025
    Non-cash marketing expenses                                 $      --           $      --           $    49,165
    Non-cash research and development expenses                  $      --           $    10,000         $   737,394
    Non-cash professional fees                                  $    49,586         $    76,050         $   299,532
    Non-cash interest payments                                  $     6,600         $      --           $    13,530
    Debt forgiveness                                            $   (20,757)        $      --           $   (49,474)
    Non-cash debt conversion expense                            $      --           $      --           $   126,000
    Discount on convertible debentures                          $     7,308         $   121,308         $   290,827
    Change in operating assets and liabilities:
          Prepaid expenses                                      $     5,170         $   (10,780)        $    (1,840)
          Accounts payable and accrued liabilities              $    (4,017)        $    20,658         $    80,037
                                                                -----------         -----------         -----------

Net cash provided by (used in) operating                        $    29,312         $  (162,201)        $  (996,597)
          activities

Cash flows from investing activities:

   Patent costs                                                 $    (8,100)        $      --           $   (42,303)
   Purchase of equipment                                        $      --           $      --           $    (3,980)
   Disposal of equipment                                        $      --           $      --           $     1,014
                                                                -----------         -----------         -----------
Net cash provided by (used in) investing                        $    (8,100)        $      --           $   (45,269)
         Activities Cash flow from financing activities:

    Proceeds from issuance of notes payable                     $      --           $   200,000         $   383,750
    Payment of notes payable                                    $   (74,941)        $   (50,000)        $  (239,859)
    Proceeds from issuance of convertible debt                  $      --           $      --           $   665,000
    Payment on convertible debt                                 $      --           $      --           $  (380,000)
    Proceeds from sale of common shares                         $   103,022         $      --           $   428,620
    Proceeds from issuance of common shares, net                $      --           $      --           $   282,958
                                                                -----------         -----------         -----------
Net cash provided by financing activities                       $    28,081         $   150,000         $ 1,140,469
Increase (decrease) in cash and cash equivalents                $    49,292         $   (12,201)        $    98,603

Cash and cash equivalents, beginning of period                  $    49,311         $    62,986         $      --
Cash and cash equivalents, end of period                        $    98,603         $    50,785         $    98,603
</TABLE>



<PAGE>




ID Technologies Corporation
(A Development Stage Company)
Notes to Financial Statements
June 30, 2001
(Unaudited)

1.  Management's Opinion

While  the  financial   information   furnished  is  unaudited,   the  condensed
consolidated   financial   statements   included  in  this  report  reflect  all
adjustments  (consisting  of normal  recurring  adjustments)  which the  Company
considers  necessary  for  the  fair  presentation  of the  results  of  company
operations for the interim periods covered and of the financial condition of the
Company at the date of the  interim  balance  sheet.  The  results  for  interim
periods are not  necessarily  indicative of the results for the entire year. The
condensed  consolidated  financial statements should be read in conjunction with
the ID Technologies  Corporation audited  consolidated  financial statements and
notes  thereto  included in the  Company's  Annual Report on Form 10-KSB for the
fiscal year ended December 31, 2000.

2. Licenses

Global Biometrics,  Inc. owned options to purchase four exclusive licenses.  The
options expired unexercised on June 30, 2001.

3. Revenue

License revenue is the  amortization of the Bob Barker Company license valued at
$89,062 and the Global  Biometrics  Inc.  licenses  transferred  from Protek for
$75,000.  The license  fees are being  amortized at rates of $1,895 and $937 per
quarter respectively.

4. Accounts Payable

Payables for  professional  services  totaling $27,757 were settled in full with
payments  totaling  $7,000 with no additional  consideration.  The difference of
$20,757 was recorded as forgiveness of debt.

5. $185,000 Convertible Debt

The annual interest payments on $85,000 private convertible debentures were paid
in full on June 30,  2001 with  $3,600  paid in cash and $6,600 paid in stock at
the election of the debt holder.  Those paid in stock were granted  stock at the
average ask price during the month of June 2001. The annual interest  payment on
$100,000  private  debentures  elected to defer the interest  payment of $12,000
until  December  15,  2001.  The debt holder  will be paid the $12,000  plus 12%
interest  on the  $12,000  and may elect a stock  payout in lieu of cash for the
original  $12,000  interest  payment.  The stock  price would be the average ask
price for the month of June 2001.

6.  Litigation

The Company filed a lawsuit  against  Fingerprint  Cards AB on April 19, 2001 in
the United  States  District  Court for the Eastern  District of North  Carolina
seeking,  inter alia, a  declaratory  judgment  regarding  non-infringement  and
unenforceability  of the Lofberg  patent.  The Company is the owner of US Patent
No.  5,623,552  which is presently a principal  patent in  biometric  technology
applications  involving a  stand-alone,  integrated  card for  fingerprint-based
identification and access. To date, Fingerprint Cards AB has not filed an answer
to the Company's complaint.

<PAGE>

Item 2.  Management's Plan of Operation.

The Company is engaged in the development of biometric  technologies,  know-how,
and products for licensing  worldwide.  The Company holds the patent for a card,
panel,   or   substrate   allowing   "on-board"   storage   and   authentication
(identification) of fingerprints with a frontier biometric market size estimated
to be 1/10 trillion dollars.  The potential  applications of this technology are
many  and  varied:  from  welfare  cards  to  loyalty/medical   records/personal
information cards to controlling the use of firearms.

The development and production of this biometric breakthrough was managed by the
Company's  scientific  partner,  SafeNet of  Baltimore,  Maryland.  SafeNet is a
leading  provider of network and  Internet  security  systems and  technologies.
SafeNet is a holder of approximately 12% of the Company's common stock and holds
a Company  license in the fields of  Internet,  computer  network,  banking  and
treasury  fields  worldwide  which SafeNet  sublicensed  in perpetuity to Global
Biometrics in the fourth quarter of 2000.

A prototype 8 chip card was completed in April 2001, as well as a  comprehensive
manufacturing plan to build a single-chip production card at a cost below $20 in
future years. The non-recurring  engineering cost (NRE) to reduce the technology
to a single  chip will be the  responsibility  of  licensees,  including  Global
Biometrics and other engineering firms. These development costs are estimated at
approximately $1,700,000.

Presently,  the  Company  has initial  licenses  in place with  SafeNet,  Global
Biometrics , Power^Up and  BrentScott,  which are expected to yield  $400,000 in
additional  license fees when card  production  begins.  Production is currently
expected to begin in early 2002. The licenses to Bob Barker Company, SafeNet and
Global  Biometrics are paid in full. The options Global  Biometrics had for four
additional  licenses  expired  unexercised  on June 30,  2001.  The Company will
attempt  to sell  those  licenses  to other  interested  parties,  but  makes no
assurances that it will be able to do so.

The Company believes it has to be the first-to-market  leader with the following
competitive advantages:

         -        A biometric  fingerprint  card with storage and a power source
                  (lithium battery) on board.

         -        A  biometric  fingerprint  card  which  will  not  require  an
                  independent  power  source.  - A  biometric  fingerprint  card
                  safeguarding  personal  privacy  (a  government  or  corporate
                  database system is unnecessary).

         -        A biometric  fingerprint  card with 113 mps of computing power
                  (the power of a Palm Pilot).

The Company's biometric  fingerprint card is essentially a stand-alone  computer
on a card protected by the Lane foundation  patent:  United States Patent Number
5,623,552  issued on April 22, 1997 with an  enforceable  life until  August 15,
2015. Another biometric patent was filed in February 2001.

The Company has been a development stage company with nominal revenues since its
inception. Losses were $1,684,313 in 1997, $1,426,725 in 1998, $939,741 in 1999,
$906,644 in 2000 and $211,275 in the first six months of 2001.

As of July 11,  2001,  the  Company had  approximately  $78,000 in cash and cash
equivalents. Currently, the Company has a cash burn rate of $35,000 per month.

With  the  Company's   current  policy  of  contracting   out   development  and
concentrating on licensing of intellectual  property and marketing,  the Company
does not plan to  purchase  any  equipment  or buy or rent  plant(s) in the next
year.
<PAGE>

     Results of Operations

The  following  discussion  provides  an analysis  of the  Company's  results of
operations  and  liquidity  and  capital  resources.  This  should  be  read  in
conjunction with the financial  statements of the Company and notes thereto. The
operating results of the periods  presented were not  significantly  affected by
inflation.

     Comparison of Six Months Ended June 30, 2001 and 2000:

License  revenue  for the first six months  2001 was $35,278 as compared to zero
for the same  period of 2000.  The  license  revenue is  comprised  of a $25,000
license  transfer fee from SafeNet to sublicense  in  perpetuity  the license to
Global  Biometrics and $6,278 in the  amortization  of the Bob Barker and Global
Biometrics'  licenses.  No new license  agreements were sold during the quarter.
Royalty revenue for the six months ended June 30, 2001 was $4,000 as compared to
zero for the same  period of 2000.  The  royalty  payments  recorded  during the
period  are for  SafeNet  sales to a  British  government  agency  that uses the
Company's  technology.  Royalty payments are predicated on the sale price of the
cards to end-users by licensees.

The research and development expenses are a non-cash entry in prior years, which
mirrors  exactly  SafeNet's  research  and  development  cash  expenses  for the
development  of the  biometric  fingerprint  card.  SafeNet  did not  incur  any
research and development costs in the six months ended June 30, 2001 compared to
$10,000  for the six months  ended  June 30,  2000.  Even  though  SafeNet,  the
Company's  development  partner and holder of approximately 12% of the Company's
capital  stock,  was  responsible  for and incurred  this  expense,  the Company
records the expense  since the Company  receives  the  benefits  from  SafeNet's
research.

Selling,  general, and administrative  expenses during the six months ended June
30, 2001 were  $246,925,  up 9% from the $226,916 of such  expenses in the prior
year period.  The variance is primarily due to increases in insurance  costs and
professional fees.

Amortization of debt discount on convertible  debentures was $7,308 in the first
six months of 2001 compared to $121,308 in the first six months of 2000. This is
a non-cash expense to amortize the value of options and warrants associated with
the $485,000 of convertible debt issued by the Company in 1999. The Company paid
off  $300,000  of the debt in the fourth  quarter of 2000,  thus the $57,000 per
quarter of  amortization  related to that debt was not recorded in the first six
months of 2001.

Interest  expense was $14,305 in the first six months of 2001,  down from 23,581
in the first six months of 2000. This is interest of 12% on $185,000 convertible
debentures  issued  in  April  through  June of 1999 and 14% on a  $50,000  note
payable  issued June 2000. In the first six months of 2000, the Company was also
liable for $300,000 in convertible  debentures  with an 8% interest rate.  These
debentures were repaid with interest in the fourth quarter 2000.

The  Company's  net  operating  loss for the six months  ended June 30, 2001 was
$211,647,  down 11% from the net  operating  loss of $236,916 for the six months
ended June 30, 2000.

Recent Developments

On August 6,  2001,  the  Company  entered  into a  teaming  agreement  with GRC
International  (GRCI), an AT&T subsidiary,  to provide  leading-edge  biometrics
technologies  development,  systems  integration,  and  fielding.  GRCI  will be
responsible  for marketing  products  deploying the  Company's  technology.  The
Company will lead the biometric software development and engineering efforts and
system testing.

<PAGE>

                            PART II OTHER INFORMATION

Item 1.  Legal Proceedings.

The Company filed a lawsuit  against  Fingerprint  Cards AB on April 19, 2001 in
the United  States  District  Court for the Eastern  District of North  Carolina
seeking  inter  alia,  a  declaratory  judgment  regarding  non-infringement  an
unenforceability  of the Lofberg patent.  To date,  Fingerprint Cards AB has not
filed an answer to the Company's  complaint.  The Company is not involved in any
other material pending legal proceeding adverse to the Company.

Item 2.       Changes in Securities and Use of Proceeds.

The  Company  issued  39,662  shares of common  stock in payment  for $17,088 of
professional  services.  The Company also issued 31,428 common shares to private
debenture holders in lieu of $6,600 in interest payments due in June 2001.

The Company relied on the securities  registration exemption provided by Section
4(2) of the Securities Act of 1933, as amended,  in connection  with these stock
issuances since these were privately  negotiated  transactions  with individuals
who each had an existing business relationship with the Company.

Item 3.       Defaults Upon Senior Securities.

     None.

Item 4.  Submission of Matters to a Vote of Security Holders.

No matters were submitted to a vote of security  holders during the three months
ended June 30, 2001.

Item 5.       Other Information.

     None.
<PAGE>

Item 6.       Exhibits and Reports on Form 8-K.

(A) EXHIBITS.

Exhibit                                                              Sequential
   No.                    Description                                  Page No.
--------                  -----------                                 ---------

    3             Articles  of  Incorporation,   together  with  all  amendments
                  thereto,  filed as Exhibit 2.01 to the Registrant's Form 10-SB
                  filed as of November  30, 1999,  filed with the SEC,  which is
                  incorporated herein by reference to such Form 10-SB.

    3.1           Bylaws,  filed as Exhibit 2.02 to the Registrant's  Form 10-SB
                  filed as of November  30, 1999,  filed with the SEC,  which is
                  incorporated herein by reference to such Form 10-SB.

    4             Form of Debenture  Purchase Agreement by and among the Company
                  and purchasers of the Company's 12%  Convertible  Subordinated
                  Debentures due 2002, filed as Exhibit 3.01 to the Registrant's
                  Form 10-SB filed as of November 30, 1999,  filed with the SEC,
                  which is incorporated herein by reference to such Form 10-SB.

    4.1           Form of 12% Convertible Subordinated Debenture Due 2002, filed
                  as Exhibit  3.02 to the  Registrant's  Form 10-SB  filed as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.2          Registration Rights Agreement,  dated as of December 31, 1997,
                  between  the Company  and  Hutchison  & Mason  PLLC,  filed as
                  Exhibit  3.04  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.3          Stock Purchase  Agreement,  dated as of August 1, 1997, by and
                  among the Company, Li-Pei Wu and William F. Lane (as agent for
                  certain  sellers),  together with  Addendum to Stock  Purchase
                  Agreement of even date therewith, filed as Exhibit 3.04 to the
                  Registrant's  Form 10-SB filed as of November 30, 1999,  filed
                  with the SEC,  which is  incorporated  herein by  reference to
                  such Form 10-SB.

     4.4          Convertible  Debenture,  dated September 24, 1999, made by the
                  Company in favor of Centennial Venture Partners, LLC, filed as
                  Exhibit  3.05  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB ("CVP").

     4.5          Common Stock Purchase Warrant, dated, September 24, 1999, made
                  by the  Company  in favor of CVP  (450,000  shares),  filed as
                  Exhibit  3.06  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.6          Common Stock Purchase Warrant,  dated September 24, 1999, made
                  by the  Company  in favor of CVP  (150,000  shares),  filed as
                  Exhibit  3.07  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

    4.7           Common Stock Purchase Warrant,  dated September 24, 1999, made
                  by the  Company  in favor of CVP  (200,000  shares),  filed as
                  Exhibit  3.08  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.8          Common Stock Purchase Warrant,  dated September 24, 1999, made
                  by the  Company  in  favor of CVP (up to  $500,000),  filed as
                  Exhibit  3.09  to the  Registrant's  Form  10-SE  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.9          Investor Rights Agreement,  dated as of September 24, 1999, by
                  and among the  Company  and  certain  holders  of its  capital
                  stock,  filed as Exhibit 3.10 to the  Registrant's  Form 10-SB
                  filed as of November  30, 1999,  filed with the SEC,  which is
                  incorporated herein by reference to such Form 10-SB.

     4.10         Shareholders Agreement, dated September 24, 1999, by and among
                  the Company and certain  shareholders and investors,  filed as
                  Exhibit  3.11  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     4.11         Form of Warrant to Purchase Common Stock issued by the Company
                  to various investors in 2000.
<PAGE>

     10           License Agreement,  dated October 1, 1999, between the Company
                  and BrentScott  Associates,  LLC, filed as Exhibit 6.01 to the
                  Registrant's  Form 10-SB filed as of November 30, 1999,  filed
                  with the SEC,  which is  incorporated  herein by  reference to
                  such Form 10-SB.

     10.1         Patent  License  Agreement,  dated July 30, 1997,  between the
                  Company and Information Resource  Engineering,  Inc., filed as
                  Exhibit  6.02  to the  Registrant's  Form  10-SB  filed  as of
                  November 30, 1999,  filed with the SEC, which is  incorporated
                  herein by reference to such Form 10-SB.

     10.2         License Agreement, dated October 31, 1999, between the Company
                  and Revolution  Labs, Inc.  ("Revolution"),  together with the
                  agreement   among  the  Company,   Revolution  and  Protective
                  Technologies, Inc. ("Protek") regarding the potential purchase
                  by Protek of Revolution's fields of license,  filed as Exhibit
                  6.03 to the  Registrant's  Form 10-SB filed as of November 30,
                  1999,  filed  with the SEC,  which is  incorporated  herein by
                  reference to such Form 10-SB.

     10.3         Agreement, dated March 30, 1999, among Safe Guard Corporation,
                  Protek,   Secure  Card  International,   Inc.,   International
                  Biometrics  Incorporated,  Tele-Guard,  Inc.  and the Company,
                  filed as Exhibit 6.04 to the Registrant's  Form 10-SE filed as
                  of  November   30,  1999,   filed  with  the  SEC,   which  is
                  incorporated herein by reference to such Form 10-SB.

     10.4         License  Agreement  dated February 2, 1999 between the Company
                  and Power^Up Marketing  Corporation,  filed as Exhibit 6.05 to
                  the  Registrant's  Form,10-SB  filed as of November  30, 1999,
                  filed with the SEC, which is incorporated  herein by reference
                  to such Form 10-SB.

     10.5         Debenture  Purchase  Agreement,   dated  September  24,  1999,
                  between the Company and certain  purchasers,  filed as Exhibit
                  6.06 to the  Registrant's  Form 10-SB filed as of November 30,
                  1999,  filed  with the SEC,  which is  incorporated  herein by
                  reference to such Form 10-SB.

     10.6         1999  Stock  Option  Plan,   filed  as  Exhibit  6.07  to  the
                  Registrant's  Form 10-SB filed as of November 30, 1999,  filed
                  with the SEC,  which is  incorporated  herein by  reference to
                  such Form 10-SB.

     10.7         Form of  Incentive  Stock Option  Agreement,  filed as Exhibit
                  6.08 to the  Registrant's  Form 10-SB filed as of November 30,
                  1999,  filed  with the SEC,  which is  incorporated  herein by
                  reference to such Form 10-SB.

     10.8         Employment Agreement between the Company and CEO/President Mr.
                  J.  Phillips  L.  Johnston,  dated  November  9, 1999 filed as
                  Exhibit  10.8 to the  Registrant's  Form  10-KSB  for the year
                  ended  December  31,  1999  which is  incorporated  herein  by
                  reference to such Form 10-KSB.

     10.9        License  Agreement  with Bob  Barker  Company,  Inc.  filed as
                  Exhibit 10 to the  Registrant's  Form  10-QSB for the  quarter
                  ended  September  30, 2000,  which is  incorporated  herein by
                  reference to such Form 10-QSB.

     10.10        License   Agreement   between  the   Company  and   Protective
                  Technology, Inc. dated October 24, 2000 filed as Exhibit 10.10
                  to the  Registrant's  Form  10K-SBfor  the fiscal  year ending
                  December 31, 2000 filed with the SEC,  which  incorporated  by
                  reference to such Form 10K-SB.

     10.11        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.11 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

     10.12        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.12 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

     10.13        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.13 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

     10.14        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.14 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

     10.15        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.15 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

     10.16        Amended and Restated  License  Agreement dated February,  2001
                  between the Company and Protective Technologies, Inc. filed as
                  Exhibit 10.15 to the Registrant's  Form 10Q-SB for the quarter
                  ending March 31, 2001 filed with the SEC,  which  incorporated
                  by reference to such Form 10Q-SB.

(b)      Reports on Form 8-K.

         None.


<PAGE>



                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

                                   ID TECHNOLOGIES CORPORATION


                               BY  /S/ J. Phillips L. Johnston
                                   ------------------------------------------
DATE:    August 13, 2001              J. Phillips L. Johnston, President and CEO


                                   /S/ William F. Lane
                                   ------------------------------------------
DATE:    August 13, 2001              William F. Lane, Chairman and Treasurer
                                   (Principal Financial Officer)