---

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# UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

# FORM 10-QSB

|x | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT           OF 1934
|- | -------------------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2007

|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
|- | --------------------------------------------------------------------------------

For the transition period from _______________ to _______________

Commission file
number  000-50482

|ACRO INC.                                                        
|-----------------------------------------------------------------
|                                                                 
|(Exact Name of Small Business Issuer as Specified in Its Charter)

|Nevada                                                         | 98-0377767                          
|-------------------------------------------------------------- | ------------------------------------
|                                                               |                                     
|(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)

|37 Inbar St., Caesarea 30889, Israel    
|----------------------------------------
|                                        
|(Address of Principal Executive Offices)

|+972-4-636-0297                                 
|------------------------------------------------
|                                                
|(Issuer's Telephone Number, Including Area Code)

|Former Address: 18 Halevna Street, Timrat, Israel 23840                           
|----------------------------------------------------------------------------------
|                                                                                  
|(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 o

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

Yes o     No x

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed
all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed by a
court.

Yes  o No o

# APPLICABLE ONLY TO
CORPORATE ISSUERS

State the number of shares
outstanding of each of the issuers classes of common equity, as of the latest
practicable date: The aggregate market value of the shares of common stock held by
non-affiliate computed based on the average bid and asked prices of shares of common stock
on May 4, 2007, is: $30,209,259.

The number of shares outstanding of
the issuers common stock, as of May 4, 2007: 67,131,686.

Transitional Small Business
Disclosure Format (Check one):

Yes o No x



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# Item 1. Financial
Statements.

Our consolidated financial statements
are stated in United States Dollars (US$) and are prepared in accordance with United
States Generally Accepted Accounting Principles.

|Acro Inc. (a Development Stage Company)
|---------------------------------------
|                                       
|Consolidated Balance Sheets (Unaudited)
|                                       

|                                                    | March 31
2007 | December 31
2006
|--------------------------------------------------- | ------------- | ----------------
|
|
|
|
|Assets                                              |               |                 
|                                                    |               |                 
|Current assets:                                     |               |                 
|Cash and cash equivalents                           |               |                 
|Prepaid expenses and other current assets           |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total current assets                                |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Other non-current assets                            |               |                 
|Property and equipment, net                         |               |                 
|Intangible assets, net                              |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total assets                                        |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Liabilities and stockholders' equity                |               |                 
|                                                    |               |                 
|Current liabilities:                                |               |                 
|Short term bank-credit                              |               |                 
|Accounts payable and accrued liabilities            |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total current liabilities                           |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Accrued severance pay                               |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total liabilities                                   |               |                 
|                                                    |               |                 
|Commitments (Note 9)                                |               |                 
|                                                    |               |                 
|Stockholders' equity:                               |               |                 
|Common stock; $0.001 par value; 700,000,000 shares  |               |                 
|authorized 67,131,686  and 64,931,688 shares issued |               |                 
|and outstanding as of March 31, 2007 and            |               |                 
|December 31, 2006, respectively                     |               |                 
|Additional paid-in capital                          |               |                 
|Accumulated deficit                                 |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total stockholders' equity                          |               |                 
|                                                    |               |                 
|                                                    |               |                 
|Total liabilities and stockholders' equity          |               |                 
|                                                    |               |                 

2

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|Acro Inc. (a Development Stage Company)          
|-------------------------------------------------
|                                                 
|Consolidated Statements of Operations (Unaudited)
|                                                 

|                                                | Three months ended March 31 | Cumulativefrom Inception(May 22, 2002)to March 312007
|----------------------------------------------- | --------------------------- | -----------------------------------------------------
|
|
|
|
|Revenues                                        |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Costs and expenses :                            |                             |                                                      
|                                                |                             |                                                      
|Research and development                        |                             |                                                      
|Sales and marketing                             |                             |                                                      
|General and administrative*                     |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Total operating expenses                        |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Operating loss                                  |                             |                                                      
|                                                |                             |                                                      
|Interest income (expenses), net                 |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Loss before income taxes                        |                             |                                                      
|Income tax                                      |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Net loss                                        |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Basic and diluted net loss per common share     |                             |                                                      
|                                                |                             |                                                      
|                                                |                             |                                                      
|Weighted average shares used in computing basic |                             |                                                      
|and diluted net loss per common share           |                             |                                                      
|                                                |                             |                                                      

|* | Includes
$169,998, $0 and $919,338 in stock-based compensation to non-employees for the three
months ended March 31, 2007 and 2006, and for the cumulative period from May 22, 2002
(date of inception) to March 31, 2007, respectively.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

See accompanying notes to the
consolidated financial statements.

3

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|Acro Inc. (a Development Stage Company)          
|-------------------------------------------------
|                                                 
|Consolidated Statements of Cash Flows (Unaudited)
|                                                 

|                                                   | Three months ended March 31 | Cumulativefrom Inception(May 22, 2002)to March 312007
|-------------------------------------------------- | --------------------------- | -----------------------------------------------------
|
|
|
|
|Cash flows from operating activities:              |                             |                                                      
|Net loss                                           |                             |                                                      
|Adjustments to reconcile net loss to net cash      |                             |                                                      
|used in operating activities:                      |                             |                                                      
|Depreciation and amortization                      |                             |                                                      
|Stock-based compensation                           |                             |                                                      
|Services contributed by officers                   |                             |                                                      
|                                                   |                             |                                                      
|Changes in operating assets and liabilities:       |                             |                                                      
|Prepaid expenses and other current assets          |                             |                                                      
|Accounts payable and accrued liabilities           |                             |                                                      
|Accrued severance pay                              |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Net cash used in operating activities              |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Cash flows from investing activities:              |                             |                                                      
|Purchase of property and equipment                 |                             |                                                      
|Purchase of intangible assets                      |                             |                                                      
|Decrease (increase) in long-term deposits          |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Net cash used in investing activities              |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Cash flows from financing activities:              |                             |                                                      
|Increase in short-term credit                      |                             |                                                      
|Proceeds from sale common stock and warrants       |                             |                                                      
|Offering costs                                     |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Net cash provided by financing activities          |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Net increase in cash and cash equivalents          |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Cash and cash equivalents at beginning of period   |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Cash and cash equivalents at end of period         |                             |                                                      
|                                                   |                             |                                                      
|                                                   |                             |                                                      
|Supplemental disclosures of cash flow information: |                             |                                                      
|Cash paid for interest                             |                             |                                                      
|                                                   |                             |                                                      
|Cash paid for taxes                                |                             |                                                      
|                                                   |                             |                                                      

See accompanying notes to the consolidated
financial statements.

4

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|Acro Inc. (a Development Stage Company)                                        
|-------------------------------------------------------------------------------
|                                                                               
|Notes to the Consolidated Financial Statements as of March 31, 2007 (Unaudited)
|                                                                               

# Note 1  Business

| | ACRO,
Inc. (A Development Stage Company) (the Company), was incorporated on May 22,
2002, under the laws of the State of Nevada, as Medina International Corp. On May 4,
2006, the Company changed its name to ACRO, Inc. The Company originally was an oil and
gas consulting company in Canada and in the United States. However, during 2006,
following a change of control and a private placement financing (see Note 5), the Company
ceased to engage in the oil and gas consulting business and engaged in development of
products for the detection of peroxide based explosives for the homeland security market.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Since
its inception, the Company has no significant revenues and in accordance with Statement
of Financial Accounting Standard (SFAS) No. 7 Accounting and Reporting
by Development Stage Enterprises, the Company is considered a development stage
company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
accompanying financial statements have been prepared on a basis that contemplates the
realization of assets and the satisfaction of liabilities and commitments in the normal
course of business. The Company has cumulative losses for the period from inception (May
22, 2002) through March 31, 2007 of $1,907,729. Management believes that the Company has
sufficient cash and working capital to support forecasted operating results, capital
expenditures and commitments through at least March 31, 2008. However, the viability of
the Company for a significant period of time beyond March 31, 2008 is dependent on its
ability to generate cash flow from future product sales or to obtain additional
financing. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
February 27, 2007, the Company closed a private placement for aggregate proceeds of
$1,500,000; see Note 5 for more details.
| | -------------------------------------------------------------------------------------------------------------------------------

# Note 2  Summary of
Accounting Policies

| | A. | Basis
of presentation
| | -- | ---------------------

| | These
financial statements are unaudited and, in the opinion of management, all adjustments
necessary for a fair presentation of such financial statements have been recorded. Such
adjustments consisted only of normal recurring items. Consolidated balance sheet
information as of December 31, 2006 included herein was derived from the audited
consolidated balance sheet as of December 31, 2006 included in the Companys Annual
Report on Form 10-KSB for the year ended December 31, 2006.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
accompanying unaudited consolidated financial statements were prepared in accordance with
the instructions for Form 10-QSB and, therefore, do not include all disclosures necessary
for a complete presentation of financial condition, results of operations, and cash flows
in conformity with generally accepted accounting principles. All adjustments, which are,
in the opinion of management, of a normal recurring nature and are necessary for a fair
presentation of the interim financial statements, have been included. Nevertheless, these
financial statements should be read in conjunction with the consolidated financial
statements and related notes included in the Companys Annual Report on Form 10-KSB
for the year ended December 31, 2006. The results of operations for the period ended
March 31, 2007 are not necessarily indicative of the results that may be expected for the
entire fiscal year or any other interim period.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 2  Summary of
Accounting Policies (contd)

| | B. | Use
of estimates in the preparation of financial statements
| | -- | -----------------------------------------------------------

| | The
preparation of the consolidated financial statements in conformity with US GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the financial
statement date and the reported expenses during the reporting periods. Actual results
could differ from those estimates.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | C. | Principles
of consolidation
| | -- | ---------------------------

| | The
consolidated financial statements include the accounts of the Company and its
wholly-owned Israeli subsidiary ACROSEC Ltd.. All material intercompany transactions and
balances have been eliminated in consolidation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | D. | Cash
equivalents
| | -- | ----------------

| | The
Company considers all highly liquid investments, which include short-term deposits with
original maturities of three months or less from the date of purchase that are not
restricted as to withdrawal or use and are readily convertible to known amounts of cash,
to be cash equivalents.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | E. | Foreign
currency translation
| | -- | ----------------------------

| | The
Company considers the functional currency of the parent and subsidiary companies to be in
U.S. dollars and accordingly, the accompanying financial statements have been prepared in
U.S. dollars. Assets and liabilities denominated in foreign currencies are translated
using the exchange rate on the balance sheet date. Revenue and expenses are translated at
average exchange rates prevailing during the year. Foreign currency transaction gains and
losses, which to date have not been material, are included in the Consolidated Statements
of Operations.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | F. | Accounting
for stock-based compensation
| | -- | ---------------------------------------

| | Prior
to fiscal 2006, the Company applied the intrinsic value method as prescribed in
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees
(APB No. 25), and related interpretations, in accounting for stock options granted
under the stock option plan. Under the intrinsic value method, no compensation cost is
recognized if the exercise price of the Companys employee stock options was equal
to or greater than the market price of the underlying stock on the date of the grant. No
compensation cost was recognized in the accompanying consolidated statements of
operations prior to fiscal year 2006 as no options or similar instruments have been
granted during that period. As of January 1, 2006 the Company adopted SFAS No. 123
(revised 2004), Share-Based Payment (SFAS No. 123(R)). All
stock-based awards to nonemployees are accounted for at their fair value in accordance
with SFAS No. 123(R) and in accordance with Emerging Issues Task Force Issue No. 96-18,
Accounting for Equity Instruments that are Issued to Other than Employees for
Acquiring, or in Conjunction with Selling, Goods and Services (EITF 96-18).
The Company accounts for stock-based awards to employees in accordance with SFAS No.
123(R) and related interpretations, which requires all share-based payments to employees
to be recognized based on their fair values. The Company recorded the stock based
compensation granted to a consultant on the date the consultant earned the awarded shares
in the same manner as if the Company paid cash to the consultant for his services.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

---

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 2  Summary of
Accounting Policies (contd)

| | G. | Loss
per Share
| | -- | --------------

| | The
Company computes basic loss per share by dividing net loss by the weighted average number
of shares of common stock outstanding, or issuable to consultants, during the respective
period; Warrants to purchase shares of common stock, were excluded from the computation
of diluted net loss per share for the reported periods, as such warrants were
anti-dilutive since the Company incurred losses in those periods
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | H. | Reclassifications
| | -- | -----------------

| | Certain
prior period amounts have been reclassified in order to conform to the current period
presentation.
| | -----------------------------------------------------------------------------------------------------------

| | I. | Recently
issued accounting pronouncements
| | -- | -----------------------------------------

| | In
September 2006, the FASB issued Statement No. 157, Fair Value Measurements, (SFAS
No. 157). SFAS No. 157 defines fair value (replacing all prior definitions) and
creates a framework to measure fair value, but does not create any new fair value
measurements. SFAS No. 157 is effective in the first quarter of fiscal years beginning
after November 15, 2007. The Company is currently evaluating the effect that the
application of SFAS No. 157 will have on its consolidated financial statements.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
its September 2006 meeting, the FASBs Emerging Issue Task Force reached a consensus
on Issue No. 06-1, Accounting for Consideration Given by a Service Provider to
Manufacturers or Resellers of Equipment Necessary for an End-Customer to Receive Service
from the Service Provider, that if the consideration given by a service provider to
a manufacturer or reseller (that is not a customer of the service provider) can be linked
contractually to the benefit received by the service providers customer, a service
provider should use the guidance in EITF 01-9 to characterize the consideration. EITF
01-9 presumes that an entity should characterize cash consideration as a reduction of
revenue unless an entity meets the requirements of paragraph 9 of EITF 01-9. Under EITF
01-9, other than cash considerations should be characterized as an expense. If the
service provider does not control the form of the consideration provided to the service
providers customer, the consideration should be characterized as other than cash.
The consensus is effective for the first annual reporting period beginning after June 15,
2007. Early adoption is permitted for financial statements that have not yet been issued.
Entities should recognize the effects of applying the consensus on this Issue as a change
in accounting principle through retrospective application to all prior periods under
Statement 154. Adoption of this Issue is not expected to have a material impact on the
Companys consolidated financial position, results of operations or cash flows.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

---

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 2  Summary of
Significant Accounting Policies (contd)

| | I. | Recently
issued accounting pronouncements (contd)
| | -- | --------------------------------------------------

| | In
February 2007, the FASB issued FASB Statement No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities  Including an amendment of FASB
Statement No. 115, which permits entities to choose to measure many financial instruments
at fair value. The Statement allows entities to achieve an offset accounting effect for
certain changes in fair value of certain related assets and liabilities without having to
apply complex hedge accounting provisions, and is expected to expand the use of fair
value measurement consistent with the Boards long-term objectives for financial
instruments. This Statement is effective as of the beginning of an entitys first
fiscal year that begins after November 15, 2007. The Company does not anticipate that the
adoption of this new statement at the required effective dated will have a significant
effect in its results of operations, financial position or cash flows.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | J. | Recently
adopted accounting standards
| | -- | -------------------------------------

| | On
January 1, 2007, the Company adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48 (FIN 48) Accounting for Uncertain Tax Positions
 An Interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting
for uncertainty in income taxes recognized in an enterprises financial statements
in accordance with FASB Statement No. 109 Accounting for Income Taxes. It
prescribes a recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a tax
return. FIN 48 also provides guidance on derecognition, classification, interest and
penalties, accounting in interim periods, disclosure, and transition. The Company adopted
FIN 48 as of January 1, 2007 and there was no material effect on the financial
statements. As a result, the Company did not record any cumulative effect related to
adopting FIN 48.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
of January 1, 2007, the Company did not have any unrecognized tax benefits. The Companys
accounting policy is to accrue interest and penalties related to uncertain tax positions
as a component of income taxes.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company files income tax returns in the U.S. federal jurisdiction and foreign
jurisdictions. The Parent company is currently open to audit under the statue of
limitations by the Internal Revenue Service for the years ending December 31, 2002
through 2006. The foreign subsidiary was incorporated in March 2006 and its initial 2006
tax return is open to foreign examination by its local tax authority when filed. The
Company does not expect that the amount of unrecognized tax benefits will change
significantly within the next 12 months.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Note 3  Property
and Equipment, Net

| |                                                  | Estimated
useful life
(years) | March 31
2007 | December 31
2006
| | ------------------------------------------------ | ----------------------------- | ------------- | ----------------
|
|
|
|
| | Computer equipment                               |                               |               |                 
| | Production equipment                             |                               |               |                 
| | Furniture                                        |                               |               |                 
| |                                                  |                               |               |                 
| |                                                  |                               |               |                 
| |                                                  |                               |               |                 
| | Less - accumulated depreciation and amortization |                               |               |                 
| |                                                  |                               |               |                 
| |                                                  |                               |               |                 
| |                                                  |                               |               |                 

| | Depreciation
expense for the three months ended March 31, 2007 and 2006 and for the cumulative period
from May 22, 2002 (date of inception) to March 31, 2007 was $7,150, $0 and $19,359,
respectively.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 4  Intangible
Assets

| | In
March 2006, the Company purchased a patent from Ehud Keinan (Keinan), a
stockholder who holds 30.4% of the Companys shares of common stock, for $120,000.
The patent is being amortized over the life of the asset which is estimated at 10 years.
Amortization expense for the three months ended March 31, 2007 and 2006 and for the
cumulative period from May 22, 2002 (date of inception) to March 31, 2007 was $3,000,
$493 and $12,493, respectively.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Note 5  Stock
Transactions

| | On
February 27, 2007, the Company consummated a private placement of 2,000,000 units, at a
price of $0.75 per unit, for aggregate proceeds of $1,500,000, each unit comprising one
share of the Companys common stock and one warrant to purchase one share of the
Companys common stock at an exercise price per share of $1.25 exercisable within
five years. In connection with the private placement, the Company paid a finders
fee of $120,000 in cash and issued a warrant to purchase 160,000 units to a finder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Note 6 
Stock-Based Compensation

| | In
April 2006, the Company engaged a consultant to serve on the Companys advisory
board. The consultant will receive a grant of 166,666 shares of common stock for each
quarter of service provided on the Companys advisory board. As of March 31, 2007,
the consultant had earned 666,664 shares of common stock of which, 333,332 have been
granted and issued for services during the three months ended June 30, 2006 and September
30, 2006. An amount of 166,666 shares was earned for advisory board services during the
three months ended December 31, 2006, which shares were granted to the consultant on
March 7, 2007. An amount of 166,666 shares was earned for advisory board services during
the three months ended March 31, 2007 which shares were yet to be granted to the
consultant as of the date of financial statement. Compensation expense was calculated by
multiplying the amount of shares earned by their fair market value on the last day of the
service period completed by the consultant. During the three months ended March 31, 2007,
compensation expense recorded in respect of the shares earned by the consultant amounted
to $141,666. During the cumulative period from May 22, 2002 (date of inception) to March
31, 2007 compensation expense recorded in respect of the shares earned by the consultant
amounted to $809,997.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
May 2006, the Company engaged an additional consultant to serve on the Companys
advisory board. The consultant will receive a grant of 16,666 shares of common stock for
each quarter of service provided on the Companys advisory board, not to exceed a
total of 200,000 shares. As of March 31, 2007, the consultant had earned 55,676 shares of
common stock of which, 22,344 have been granted and issued for services during the three
months ended June 30, 2006 and September 30, 2006. An amount of 16,666 shares was earned
for services during the three months ended December 31, 2006, which shares were granted
to the consultant on March 7, 2007. An amount of 16,666 shares was earned for advisory
board services during the three months ended March 31, 2007 which shares were yet to be
granted to the consultant as of the date of financial statement. Compensation expense was
calculated by multiplying the amount of shares earned by their fair market value on the
last day of the service period completed by the consultant. During three months ended
March 31, 2007 compensation expense recorded in respect of the shares earned by the
consultant amounted to $14,166. During the cumulative period from May 22, 2002 (date of
inception) to March 31, 2007, compensation expense recorded in respect of the shares
earned by the consultant amounted to $70,009.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 6 
Stock-Based Compensation (contd)

| | In
August 2006, the Company engaged a new director to serve on the Companys Board of
Directors. As compensation, the Director will receive a signing bonus of $5,000, a
quarterly fee of $1,500, and for each meeting, $500 for attendance in person or $100 for
attendance via teleconference. In addition, subject to approval by the Board of Directors
and adoption of a Stock Option Plan, the Company will grant the Director 215,232 shares
of common stock of the Company at an exercise price per share that is equal to the par
value of the Companys common stock. At the end of each quarter, the Director may
purchase up to 17,936 shares of the total shares granted. As of March 31, 2007, no option
plan has been adopted by the Company and no approval has been given by the Board of
Directors for the option grant. Therefore, no option grant date was established and as a
result, no compensation expense was incurred by the Company for the reported periods.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
September 2006, the Company engaged an additional consultant to serve on the Companys
advisory board. The consultant will receive a grant of 16,666 shares of common stock for
each quarter of service provided on the Companys advisory board, not to exceed a
total of 200,000 shares. As of March 31, 2007, the consultant had earned 33,332 shares of
common stock. An amount of 16,666 shares was earned for services during the three months
ended December 31, 2006, which shares were granted to the consultant on March 7, 2007. An
amount of 16,666 shares was earned for advisory board services during the three months
ended March 31, 2007 which shares were yet to be granted to the consultant as of the date
of financial statement. Compensation expense was calculated by multiplying the amount of
shares earned by their fair market value on the last day of the service period completed
by the consultant. During the three months period ended March 31, 2007, compensation
expense recorded in respect of the shares earned by the consultant amounted to $14,166.
During the cumulative period from May 22, 2002 (date of inception) to March 31, 2007
compensation expense recorded in respect of the shares earned by the consultant amounted
to $39,332.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Note 7  Related
Party Transactions

| | In
February 2006, the Company entered into a consulting services agreement (the Consulting
Agreement) with BioTech Knowledge LLC a limited liability company wholly-owned by
Keinan (see Note 4), whereby Keinan has agreed to provide consulting services for
duration of three years at a monthly fee of $3,000. The Company may terminate the
Consulting Agreement with 60 days notice. During the three months period ended March 31,
2007, the Company incurred $9,000 for the consulting services provided by Keinan. In
addition to the Consulting Agreement, the Company purchased a patent from Keinan in March
2006 (see Note 4).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the three months period ended March 31, 2007 and 2006, the Company incurred an expense of
$27,356 and $5,000 respectively, for consulting services provided by the Companys
Chairman of the Board of Directors.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the three months period ended March 31 2007 and 2006, the Company incurred an expense of
$0, and $6,750 respectively, for accounting and administrative services provided by a
company owned by a director of the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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|Acro Inc. (a Development Stage Company)Consolidated Financial Statements
|------------------------------------------------------------------------
|                                                                        
|Notes to the Consolidated Financial Statements as of March 31, 2007     
|                                                                        

# Note 8  Commitments

| | The
Company entered into non-cancellable operating lease agreements for vehicles and
premises. The future minimum lease payments under these leases at March 31, 2007 are as
follows:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                          | Amount
| | ------------------------ | ------
|
|
|
|
| | Year ending December 31, |       
| | 2007                     |       
| | 2008                     |       
| | 2009                     |       
| |                          |       
| |                          |       

11

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# Item 2. Plan of
Operation.

# FORWARD-LOOKING
STATEMENTS

This
quarterly report contains forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. These statements relate to future events
or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as may, should,
expects, plans, anticipates, believes,
estimates, predicts, potential or continue
or the negative of these terms or other comparable terminology. These statements are only
predictions and involve known and unknown risks, uncertainties and other factors that may
cause our or our industrys actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements.

Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance or
achievements. Except as required by applicable law, including the securities laws of the
United States, we do not intend to update any of the forward-looking statements to conform
these statements to actual results.

Our
financial statements are stated in United States Dollars (US$) and are prepared in
accordance with United States Generally Accepted Accounting Principles. In this quarterly
report, unless otherwise specified, all dollar amounts are expressed in United States
dollars. All references to common stock refer to our shares of common stock.

As
used in this quarterly report, the terms we, us, our,
and ACRO means ACRO Inc., unless otherwise indicated.

# General

We
develop a product for the detection of peroxide-based explosives for the homeland security
market. We were incorporated under the laws of the State of Nevada on May 22, 2002 under
the name of Medina International Corp. On May 4, 2006, we changed our name to ACRO Inc. We
effected this change of name by merging our company with a wholly owned subsidiary of our
company that we had formed specifically for this purpose. We have a wholly owned
subsidiary, Acrosec Ltd., which is incorporated under the laws of the State of Israel. Our
principal executive and head office is located at 37 Inbar St., Caesarea, Israel.

As
of March 31, 2007, we had not realized any significant revenues from operations.

Employees

We currently
do not have any employees, and our subsidiary provides us management services. Our
subsidiary hired the services of Gadi Aner who serves as our Chairman and our Interim
Chief Executive Officer and Jacob Bar-Shalom, who serves as our Acting Chief Financial
Officer. Our subsidiary also hired a Chief Operating Officer and administrative staff. We
are planning to hire during the third quarter of 2007 a marketing and sales manager.
Commencing June 1, 2007, Gabi Klausner will replace Jacob Bar-Shalom as our Chief Financial Officer.

# Plan of Operation

Our
primary objectives over the 12 month period are to manufacture, and commercialize our
first product called the Peroxide Explosives Tester or ACRO-P.E.T, which is a detection
device for peroxide-based explosives using the intellectual property covered in U.S.
Patent No. 6,767,717.

Furthermore,
we plan to continue to set up our base of operations as our main Research &
Development base in Israel, and to initiate international Marketing & Sales
capabilities in order to reach our international market base worldwide.

Based
on the financial concerns as detailed in this document, we also intend to exploit further
our technology and develop additional products as described in the Product in
Development section below.

12

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Purchase or Sale of
Equipment

Through
June 30, 2008 we plan to purchase equipment for a total of approximately $32,000 for
software, furniture and office equipment.

Cash Requirements

Our
cash requirement through June 30, 2008 is approximately $1,300,000 which we need to
implement our plan of operation and developing and commercializing out potential explosive
detection device. We are obligated to pay BioTech Knowledge LLC, a wholly owned limited
liability company of Dr. Ehud Keinan, $3,000 per month for consulting services to be
provided by Dr. Keinan. Dr. Keinan is a stockholder who holds approximately 30.4% of
Acros outstanding common stock. In addition, we estimate our operating expenses and
working capital requirements through June 30, 2008 to be as follows:

|                                 | 
|-------------------------------- | 
|
|
|
|
|Product Research and Development | 
|                                 | 
|Sales and Marketing              | 
|                                 | 
|General and Administrative       | 
|                                 | 
|Capital Expenditures             | 
|                                 | 
|Tax Expenses                     | 
|                                 | 
|                                 | 
|Total                            | 

At
March 31, 2007, we had a working capital of $1,423,417. In accordance with our current
monthly expenses, this will satisfy our cash requirement only until June 30, 2008. In such
event that we do not generate revenues or raise sufficient additional funds by a public
offering or a private placement, we will consider alternative financing options, if any,
or be forced to scale down or perhaps even cease our operations.

# Financial Condition,
Liquidity and Capital Resources

During
the three months ended March 31, 2007, we incurred a loss of $355,314, compared to a net
loss of $109,394 for the comparative period in 2006.

During
the three months ended March 31, 2007, we incurred $353,415 of operating expenses,
comprised primarily of $48,904 for research and development costs, $169,998 for
stock-based compensation expenses, $2,056 for sales and marketing costs, $302,455 for
general and administrative cost.

During
the three months ended March 31, 2006, we incurred $110,499 of operating expenses,
comprising primarily of $22,013 for research and development, $88,486 for general and
administrative costs.

At
March 31, 2007, we had a working capital of $1,423,417.

At March
31, 2007, our Company had total assets of $1,746,478, which consisted mainly of cash and
equivalents of $1,494,155, fixed assets of $78,107, intangible assets of $107,507 and
prepaid expenses and other current and non-current assets of $66,709.

At
March 31, 2006, we had a working capital of $806,513.

At March
31, 2006, our company had total assets of $965,080 which consisted mainly of cash and
equivalents of $845,573 and, intangible assets of $119,507.

13

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We
had no revenues during the three months ended March 31, 2007, and no significant revenues
from inception through March 31, 2007.

Going Concern

The
continuation of our business is dependent upon our raising additional financial support or
on our ability to create significant sales of our first commercial product, the
ACRO-P.E.T. The issuance of additional equity securities by us could result in a
significant dilution in the equity interests of our current stockholders. Obtaining
commercial or other loans, assuming those loans would be available, would increase our
liabilities and future cash commitments.

We
have historically incurred losses, and through March 31, 2007, we have incurred losses of
$1,907,729 since our inception. Because of these historical losses, we will require
additional working capital to develop our business operations.

There
are no assurances that we will be able to either (i) achieve a level of revenues adequate
to generate sufficient cash flow for operations; or (ii) obtain additional financing
through either private placement, public offerings and/or bank financing necessary to
support our working capital requirements. To the extent that funds generated from
operations and the last private placement are insufficient to meet our ongoing capital
requirements, we will have to raise additional working capital by means of private
placements, public offerings and/or bank financing. No assurance can be given that
additional financing will be available, or if available, will be on terms acceptable to
us. If adequate working capital is not available we may not increase our operations and if
we are unable to raise additional funds we may cease operations.

Management
believes that we have sufficient cash and working capital to support forecasted operating
results, capital expenditures and commitments through at least June 30, 2008. However,
the viability of Acro for a significant period of time beyond June 30, 2008 is dependent
on its ability to generate cash flow from future product sales or to obtain additional
financing. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty.

Product in Development

Our
first product called the Peroxide Explosives Tester (ACRO-P.E.T). ACRO-P.E.T is a small
disposable pen like probe which detects the presence of peroxide-based explosives using
three chemical solutions and relies on direct contact with the suspicious substance.
ACRO-P.E.T has been designed for rapid, on-site detection of peroxide-based explosives.
Its main advantages are high sensitivity, high selectivity, fast response, simple
operation, small size and cost effectiveness. In November 2006, we completed the first
production of the ACRO-P.E.T for evaluation by potential customers. We delivered these
products to several international security agencies for evaluation tests. We recently
developed a new version of ACRO-P.E.T, which enables easier verification of peroxide based
explosives, such as Triacetone Triperoxide (TATP). In addition, in the new version we
improved the sampling device that enables easy and immediate sampling of suspicious
liquids, in addition to all other forms of explosives, including powder. The new version
is expected to be available in the third quarter of 2007. To date, the data supporting our
development programs is derived solely from laboratory and limited early stage trials that
were not all designed to be statistically significant or proof-of-concept trial, some of
which are exploratory in nature. We cannot assure you that our ACRO-P.E.T will gain
commercial acceptance in the marketplace.

We
plan to follow ACRO-P.E.T with additional future products utilizing our proprietary
technologies and public domain methods for detecting other explosives.

14

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# OFF-BALANCE SHEET
ARRANGEMENTS

We
entered into non-cancellable operating leases agreements for vehicles and premises. We
have a commitment to pay a total of $46,729 for the duration of these lease agreements.

# Item 3. Controls and
Procedures.

We
performed an evaluation of the effectiveness of our disclosure controls and procedures
that are designed to ensure that the material financial and non-financial information
required to be disclosed in our quarterly report and filed with the Securities and
Exchange Commission is recorded, processed, summarized and reported timely within the time
period specified in the SECs rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that information
required to be disclosed by an issuer in the reports that it files or submits under the
Securities Act, is accumulated and communicated to the issuers management, including
its principal executive and principal financial officers, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure. Based
on our evaluation, our management, including our Chief Executive Officer and Chief
Financial Officer, have concluded that our disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15(d)  15(e) of the Securities Exchange Act of 1934, as
amended) as of the end of the period covered by this report are effective at such
reasonable assurance level. There can be no assurance that our disclosure controls and
procedures will detect or uncover all failures of persons within our company to disclose
material information otherwise required to be set forth in our reports. Our disclosure
controls and procedures are designed to provide reasonable assurance of achieving the
desired control objectives.

# PART II  OTHER
INFORMATION

# Item 1. Legal
Proceedings.

None.

# Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds

N/A

# Item 3. Defaults Upon
Senior Securities.

None.

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

None.

# Item 5. Other
Information.

N/A.

15

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# Item 6. Exhibits

The following exhibits, required by
Item 601 of Regulation S-B, are being filed as part of this quarterly report, or are
incorporated by reference where indicated:

|(2) | Plan
of purchase, sale, reorganization, arrangement, liquidation or           succession
|--- | ----------------------------------------------------------------------------------------

|2.1 | Agreement
 and Plan of Merger for the Merger of ACRO Inc.  with and into  Medina  International
 Corp.,  dated April 25,          2006 (incorporated by reference from our current report
on Form 8-K filed May 4, 2006).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Articles
of Incorporation and By-laws
|--- | -------------------------------------

|3.1 | Articles
of Incorporation as amended (incorporated by reference to Exhibit 3.1 to our registration
statement on          Form SB-2 filed November  21, 2003)
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | Bylaws
dated  February 25, 2005  (incorporated  by reference from our current report on Form 8-K
filed March 21, 2005)
|--- | ----------------------------------------------------------------------------------------------------------------------

|3.3 | Certificate
of Change Pursuant to NRS 78.209 filed with the State of Nevada effective as of January
25, 2006 (incorporated by reference to Exhibit 3.3 to our annual report on Form 10-KSB
filed March 28, 2007).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4 | Certificate
of Change Pursuant to NRS 78.209 filed with the State of Nevada effective as of October
25, 2006 (incorporated by reference to Exhibit 3.4 to our annual report on Form 10-KSB
filed March 28, 2007).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.5 | Certificate
of Change Pursuant to NRS 78.209 filed with the State of Nevada effective as of October
30, 2006 (incorporated by reference to Exhibit 3.5 to our annual report on Form 10-KSB
filed March 28, 2007).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(10) | Material
Contracts
|---- | ------------------

|10.1 | Patent
 Purchase  Agreement  between the  Registrant  and Prof.  Ehud Keinan  (incorporated  by
reference from our current          report on Form 8-K filed February 3, 2006).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 | Consulting
Agreement between the Registrant and BioTech Knowledge LLC (incorporated by reference
from our current report on Form 8-K filed February 3, 2006).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.3 | Letter
of Agreement between the Registrant and BioTech Knowledge LLC (incorporated by reference
from our current report on Form 8-K filed February 3, 2006).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 | Employment
Agreement between the Registrant and Yami Tarsi (incorporated by reference from our
current report on Form 8-K filed May 12, 2006).
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------

|10.5 | Advisory
Board Agreement  between the Registrant and Mr. Ehud Barak  (incorporated by reference
from our current report on          Form 8-K filed April 7, 2006).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.6 | Advisory
 Board  Agreement  between the Registrant and Prof.  Richard Lerner  (incorporated  by
reference from our current          report on Form 8-K filed September 5, 2006).
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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|10.7 | Advisory
Board Agreement between the Registrant and Prof. K. Barry Sharpless, dated September 28,
2006          (incorporated by reference to Exhibit 10.8 to our annual report on Form
10-KSB filed March 28, 2007).
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.8 | Finders
Agreement between the Registrant and Siden Investment Inc. dated February 1, 2007
(incorporated by          reference to Exhibit 10.9 to our annual report on Form 10-KSB
filed March 28, 2007).
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.9 | Consulting
Agreement between Acrosec Ltd. And M.G NET Ltd., dated March 26, 2007 (incorporated by
reference to          Exhibit 10.10 to our annual report on Form 10-KSB filed March 28,
2007).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.10 | Services
Agreement between Acrosec Ltd. and the Registrant, dated March 7, 2007 (incorporated by
reference to          Exhibit 10.11 to our annual report on Form 10-KSB filed March 28,
2007).
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.11 | Subscription
Agreement, dated February 13, 2007 (filed herewith).
|----- | -----------------------------------------------------------------

|10.12 | Advisory
Board Agreement between the Registrant and Mr. Ehud Barak (incorporated by reference to
Exhibit 10.6 to our annual report on Form 10-KSB filed March 28, 2007).
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(31) | Section
302 Certification
|---- | -------------------------

|31.1 | Certification
of Principal Executive Officer
|---- | --------------------------------------------

|31.2 | Certification
of Principal Financial Officer and Principal Accounting Officer
|---- | -----------------------------------------------------------------------------

|(32) | Section
906 Certification
|---- | -------------------------

|32.1 | Certification
of Principal Executive Officer
|---- | --------------------------------------------

|32.2 | Certification
of Principal Financial Officer and Principal Accounting Officer
|---- | -----------------------------------------------------------------------------

17

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# SIGNATURES

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

# ACRO INC.

|By: /s/ Gadi Aner
Gadi Aner, Chief Executive Officer(Principal Executive Officer)Date: May 15, 2007
|-----------------------------------------------------------------------------------------------------------------

|By: /s/ Jacob Bar-Shalom
Jacob Bar-Shalom, Acting Chief Financial Officer(Principal Financial Officer and Principal Accounting Officer)Date: May 15, 2007
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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