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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	July 19, 2006
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  	Edentify, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Nevada
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  	000-26909
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  	98-0179013
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  _____________________<BR>
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  _____________<BR>
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  ______________<BR>
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	74 West Broad St., Suite 350, Bethlehem, Pennsylvania
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  	18018
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	&nbsp;
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  	610.814.6830
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
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  After discussions with the board of directors, the Securities Exchange Commission, and HLB Cinnamon, Jang & Willoughby, the Company's Independent Registered Public Accounting Firm, and after doing additional analysis on accounting and financial statement guidelines, it was determined that our Consolidated Statements of Cash Flows as filed with the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 2005, misstated our use of cash for investing activities.  The consideration paid for our software and verification technology consisted of our common stock and cash and we incorrectly included the fair market value of the common stock portion of the consideration as cash paid.  Our quarterly report for the period ended March 31, 2006, while stating the corrected line item ("Cash flows from investing activities") for this transaction, did not include the other adjusting entries on the Statement of Cash Flows, nor did our financials include the required footnote to disclose the restatement.  <br><br>These non-cash charges affect only the amounts previously reported under cash provided from operating activities and the cash provided by financing activities for both the three months ended March 31, 2005 and the cumulative period August 27, 2004 through March 31, 2006, respectively. The amount stated for the three months ended March 31, 2006 was correct.<br><br>After discussions with the board of directors and HLB Cinnamon Jang & Willoughby, the Company's Independent Registered Public Accounting Firm, the board of directors agreed with management's recommendations and concluded that the Statement of Cash Flows as part of our previously issued financial statements included in our Form 10-KSB for the period ended December 31, 2005 and our 10-QSB for the three month period ended March 31, 2006, should not be relied upon. We believe at this time that these restatements do not affect previously reported revenues, net income, net assets or our other financial statements for these respective periods.<br><br>Based on representations from our auditors, the Company anticipates that it will file an amendment to the annual report for the period ended December 31, 2005 on Form 10-KSB and our quarterly report for the period ended March 31, 2006 on Form 10-QSB within the next 15 days.
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Edentify, Inc.
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  	&nbsp;&nbsp;
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  <I>
  	July 19, 2006
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  	By:
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  <I>
  	Terrence DeFranco
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  <I>
  	Name: Terrence DeFranco
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  	Title: Chief Executive Officer
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_13811.htm", "description": "LIVE FILING", "secsgml_size_bytes": 10593}]
metadata_filer: {"company-data": {"conformed-name": "EDENTIFY, INC.", "cik": "0001091938", "assigned-sic": "7372", "irs-number": "000000000", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26909", "film-number": "06974472"}, "business-address": {"street1": "74 WEST BROAD STREET", "street2": "SUITE 350", "city": "BETHLEHEM", "state": "PA", "zip": "18018", "phone": "6108146830"}, "mail-address": {"street1": "74 WEST BROAD STREET", "street2": "SUITE 350", "city": "BETHLEHEM", "state": "PA", "zip": "18018"}, "former-company": [{"former-conformed-name": "BUDGETHOTELS  NETWORK  INC", "date-changed": "20030516"}, {"former-conformed-name": "BUDGETHOTELS COM INC", "date-changed": "19990728"}]}
text: Edentify, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  July 19, 2006
  Edentify, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Nevada
  000-26909
  98-0179013
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  74 West Broad St., Suite 350, Bethlehem, Pennsylvania
  18018
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  610.814.6830
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
  After discussions with the board of directors, the Securities Exchange Commission, and HLB Cinnamon, Jang & Willoughby, the Company's Independent Registered Public Accounting Firm, and after doing additional analysis on accounting and financial statement guidelines, it was determined that our Consolidated Statements of Cash Flows as filed with the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 2005, misstated our use of cash for investing activities.  The consideration paid for our software and verification technology consisted of our common stock and cash and we incorrectly included the fair market value of the common stock portion of the consideration as cash paid.  Our quarterly report for the period ended March 31, 2006, while stating the corrected line item ("Cash flows from investing activities") for this transaction, did not include the other adjusting entries on the Statement of Cash Flows, nor did our financials include the required footnote to disclose the restatement.
  These non-cash charges affect only the amounts previously reported under cash provided from operating activities and the cash provided by financing activities for both the three months ended March 31, 2005 and the cumulative period August 27, 2004 through March 31, 2006, respectively. The amount stated for the three months ended March 31, 2006 was correct.
  After discussions with the board of directors and HLB Cinnamon Jang & Willoughby, the Company's Independent Registered Public Accounting Firm, the board of directors agreed with management's recommendations and concluded that the Statement of Cash Flows as part of our previously issued financial statements included in our Form 10-KSB for the period ended December 31, 2005 and our 10-QSB for the three month period ended March 31, 2006, should not be relied upon. We believe at this time that these restatements do not affect previously reported revenues, net income, net assets or our other financial statements for these respective periods.
  Based on representations from our auditors, the Company anticipates that it will file an amendment to the annual report for the period ended December 31, 2005 on Form 10-KSB and our quarterly report for the period ended March 31, 2006 on Form 10-QSB within the next 15 days.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Edentify, Inc.
  July 19, 2006
  By:
  Terrence DeFranco
  Name: Terrence DeFranco
  Title: Chief Executive Officer