SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the quarter ended March 31, 2007

                         Commission File Number 0-10683

                                 HYDROMER, INC.
                                 --------------
             (Exact name of registrant as specified in its charter)

       New Jersey                                                 22-2303576
------------------------                                    --------------------
(State of incorporation)                                      (I.R.S. Employer
                                                             Identification No.)

35 Industrial Pkwy, Branchburg, New Jersey                        08876-3424
------------------------------------------                  --------------------
 (Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code:            (908) 722-5000
                                                            --------------------

Securities registered pursuant to Section 12 (b) of the Act: None

Securities registered pursuant to Section 12 (g) of the Act:

                         Common Stock Without Par Value
                         ------------------------------
                                (Title of class)

     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter  period that the  registrant was required to file
such  report(s),  and (2) has been subject to such filing  requirements  for the
past 90 days. Yes (X) No ( )

     Indicate the number of shares  outstanding or each of the issuer's  classes
of Common Stock as of the close of the period covered by this report.


     Class                                     Outstanding at March 31, 2007
     -----                                     -----------------------------
     Common                                               4,670,664

<PAGE>


                                 HYDROMER, INC.


                              INDEX TO FORM 10-QSB
                                 March 31, 2007

                                                                        Page No.

Part I - Financial Information

   # 1 Consolidated Financial Statements

       Balance Sheets - March 31, 2007 & June 30, 2006                       2

       Statements of Income for the three months and nine months ended
       March 31, 2007 and 2006                                               3

       Statements of Cash Flows for the nine months ended March 31,
       2007 and 2006                                                         4

       Notes to Financial Statements                                         5

   # 2 Management's Discussion and Analysis of the Financial Condition
       and Results of Operations                                             6

   # 3 Controls and Procedures                                               7


Part II  -  Other Information

   # 1 Legal Proceedings                                                   N/A

   # 2 Change in Securities                                                N/A

   # 3 Default of  Senior Securities                                       N/A

   # 4 Submission of Motion to Vote of Security Holders                    N/A

   # 5 Other Information                                                   N/A

   # 6 Exhibits and Reports on form 8-K                                      7


                                  EXHIBIT INDEX

Exhibit No.    Description of Exhibit
-----------    ----------------------

33.1           SEC Section 302 Certification - CEO certification             9
33.2           SEC Section 302 Certification - CFO certification            10
99.1           Certification of Manfred F. Dyck, Chief Executive Officer,
               pursuant to 18 U.S.C. Section 1350                           11
99.2           Certification of Robert Y. Lee, Chief Financial Officer,
               pursuant to 18 U.S.C. Section 1350                           11

                                       1
<PAGE>

<TABLE>
<CAPTION>
<S>     <C>                                                                <C>            <C>
Part I - Financial Information
Item # 1

                       HYDROMER, INC. and CONSOLIDATED SUBSIDIARY
                               CONSOLIDATED BALANCE SHEETS

                                                                             March 31,      June 30,
                                                                               2007           2006
                                                                             UNAUDITED       AUDITED
Assets
Current Assets:
   Cash and cash equivalents                                               $    247,364   $    434,865
   Trade receivables less allowance for doubtful accounts of $57,624 and
    $44,479 as of March 31, 2007 and June 30, 2006, respectively                773,095      1,198,089
   Inventory                                                                    939,393        988,086
   Prepaid expenses                                                             163,616        118,436
   Deferred tax asset                                                             8,976          8,976
   Income tax refund receivable                                                  54,548         91,436
   Other                                                                        112,698        127,776
-------------------------------------------------------------------------------------------------------
Total Current Assets                                                          2,299,690      2,967,664
-------------------------------------------------------------------------------------------------------

Property and equipment, net                                                   3,283,781      3,377,473
Deferred tax asset, non-current                                                 655,969        507,426
Intangible assets, net                                                          915,305        849,262
Other, non-current                                                                    -        114,377
-------------------------------------------------------------------------------------------------------
Total Assets                                                               $  7,154,745   $  7,816,202
-------------------------------------------------------------------------------------------------------

Liabilities and Stockholders' Equity
Current Liabilities:
   Accounts payable                                                        $    558,110   $    635,010
   Short-term borrowings                                                        700,164        656,255
   Accrued expenses                                                             319,009        374,043
   Current portion of deferred revenue                                           28,941        128,941
   Current portion of mortgage payable                                          205,909        202,204
   Income tax payable                                                             9,869          1,100
-------------------------------------------------------------------------------------------------------
Total Current Liabilities                                                     1,822,002      1,997,553
Deferred tax liability                                                          271,058        271,058
Long-term portion of deferred revenue                                            70,182         93,176
Long-term portion of mortgage payable                                         1,939,037      2,093,437
-------------------------------------------------------------------------------------------------------
Total Liabilities                                                             4,102,279      4,455,224
-------------------------------------------------------------------------------------------------------
Stockholders' Equity
   Preferred stock - no par value, authorized 1,000,000 shares, no shares
    issued and outstanding                                                            -              -
   Common stock - no par value, authorized 15,000,000 shares; 4,681,581
    shares issued and 4,670,664 shares outstanding as of March 31, 2007
    and 4,655,081 shares issued and 4,644,164 shares outstanding as of
    June 30, 2006                                                             3,639,315      3,639,315
   Contributed capital                                                          577,750        577,750
   Accumulated deficit                                                       (1,158,459)      (849,947)
   Treasury stock, 10,917 common shares at cost                                  (6,140)        (6,140)
-------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                    3,052,466      3,360,978
-------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                                 $  7,154,745   $  7,816,202
-------------------------------------------------------------------------------------------------------
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
<S>     <C>                          <C>             <C>             <C>             <C>
                                            HYDROMER, INC. and CONSOLIDATED SUBSIDIARY
                                                 CONSOLIDATED STATEMENTS OF INCOME

                                          Three Months Ended               Nine Months Ended
                                                March 31,                       March 31,
                                         2007            2006            2007            2006
                                       UNAUDITED       UNAUDITED       UNAUDITED       UNAUDITED
-----------------------------------  -----------------------------   -----------------------------
Revenues
   Sale of products                  $  1,006,875    $  1,134,148    $  3,531,205    $  3,350,277
   Service revenues                       394,857         347,825       1,124,759         838,589
   Royalties and Contract Revenues        395,981         439,112       1,253,409       1,476,555
                                     -------------   -------------   -------------   -------------
     Total Revenues                     1,797,713       1,921,085       5,909,373       5,665,421
-----------------------------------  -----------------------------   -----------------------------
Expenses
   Cost of Sales                          773,469         851,911       2,369,712       2,472,643
   Operating Expenses                   1,310,201       1,448,766       3,855,143       4,072,855
   Other Expenses / (Income)               43,711        (247,174)        131,229        (181,390)
   Benefit from Income Taxes             (109,302)        (45,023)       (138,199)       (237,554)
                                     -------------   -------------   -------------   -------------
       Total Expenses                   2,018,079       2,008,480       6,217,885       6,126,554
-----------------------------------  -----------------------------   -----------------------------

       Net Loss                      $   (220,366)   $    (87,395)   $   (308,512)   $   (461,133)
-----------------------------------  -----------------------------   -----------------------------

       Loss Per Common Share         $      (0.05)   $      (0.02)   $      (0.07)   $      (0.10)


Weighted Average Number of Common
 Shares Outstanding                     4,657,120       4,644,164       4,648,435       4,637,582
</TABLE>

    The effects of the common stock equivalents on diluted earnings per share
            are not included as their effect would be anti-dilutive.


                                       3
<PAGE>

<TABLE>
<CAPTION>
<S>     <C>                                                              <C>           <C>

                         HYDROMER, INC. and CONSOLIDATED SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                              Nine Months Ended
                                                                                  March 31,
                                                                             2007          2006
                                                                          UNAUDITED      UNAUDITED
----------------------------------------------------------------------------------------------------
Cash Flows From Operating Activities:
  Net Loss                                                               $ (308,512)   $   (461,133)
  Adjustments to reconcile net loss to net cash provided by (used for)
   operating activities
    Depreciation and amortization                                           302,171         266,430
    Deferred income taxes                                                  (148,543)       (192,600)
    Changes in Assets and Liabilities:
      Trade receivables                                                     424,994         144,700
      Inventory                                                              48,693         (68,908)
      Prepaid expenses                                                      (45,180)       (106,428)
      Other assets                                                          129,455        (314,772)
      Accounts payable and accrued liabilities                             (131,934)        124,424
      Deferred income                                                      (122,994)        (77,364)
      Income taxes payable                                                   45,657               -
----------------------------------------------------------------------------------------------------

        Net Cash Provided by (Used for) Operating Activities                193,807        (685,651)

----------------------------------------------------------------------------------------------------

Cash Flows From Investing Activities:
  Cash purchases of property and equipment                                  (83,614)       (267,096)
  Cash payments on patents and trademarks                                  (190,908)       (137,651)
  Cash purchases of short-term investments                                        -        (392,633)
  Maturity of short-term investments                                              -         400,000
----------------------------------------------------------------------------------------------------

        Net Cash Used for Investing Activities                             (274,522)       (397,380)

----------------------------------------------------------------------------------------------------
Cash Flows From Financing Activities:
  Net borrowings against Line of Credit                                      43,909         208,195
  Repayment of long-term borrowings                                        (150,695)       (129,446)
  Proceeds from the issuance of common stock                                      -           7,700
----------------------------------------------------------------------------------------------------

        Net Cash (Used for) Provided by Financing Activities               (106,786)         86,449

----------------------------------------------------------------------------------------------------
Net Decrease in Cash and Cash Equivalents:                                 (187,501)       (996,582)
Cash and Cash Equivalents at Beginning of Period                            434,865       1,376,656
----------------------------------------------------------------------------------------------------

Cash and Cash Equivalents at End of Period                               $  247,364    $    380,074
----------------------------------------------------------------------------------------------------
</TABLE>

                                       4
<PAGE>


                   HYDROMER, INC. and CONSOLIDATED SUBSIDIARY

                   Notes to Consolidated Financial Statements

In the opinion of management, the accompanying unaudited financial statements
include all adjustments (consisting of only normal adjustments) necessary for a
fair presentation of the results for the interim periods. Certain
reclassifications have been made to the previous year's results to present
comparable financial statements.

Segment Reporting:
------------------
The Company operates two primary business segments. The Company evaluates the
segments by revenues, total expenses and earnings before taxes. Corporate
Overhead is excluded from the business segments as to not distort the
contribution of each segment.

The results for the nine months ended March 31, by segment are:
                             Polymer       Medical      Corporate
                             Research      Products     Overhead        Total
  2007
  Revenues                $  3,264,708  $  2,644,665                $ 5,909,373
  Expenses                  (2,813,142)   (2,425,388) $ (1,117,554)  (6,356,084)
                          ------------- ------------- ------------- ------------
    Pre-tax Income (Loss) $    451,566  $    219,277  $ (1,117,554) $  (446,711)
                          ============= ============= ============= ============

--------------------------------------------------------------------------------
  2006
  Revenues                $  3,222,757  $  2,442,664                $ 5,665,421
  Expenses                  (2,558,212)   (2,687,553) $ (1,118,343)  (6,364,108)
                          ------------- ------------- ------------- ------------
    Pre-tax Income (Loss) $    664,545  $   (244,889) $ (1,118,343) $  (698,687)
                          ============= ============= ============= ============


Geographic revenues were as follows for the nine months ended March 31,
                                                    2007           2006
                                                    ----           ----
                           Domestic                  86%            83%
                           Foreign                   14%            17%


                                       5
<PAGE>


Item #2

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

Results of Operations
---------------------

The  Company's  revenues for the quarter  ended March 31, 2007 were  $1,797,713,
down 6.4% from the  $1,921,085  for the same period last year.  Revenues for the
nine  months  ended  March 31,  2007 were  $5,909,373,  or 4.3%  higher than the
$5,665,421 in the corresponding period a year ago. Revenues are comprised of the
sale of Products and Services and Royalty and Contract payments.

     Product sales and services were  $1,401,732 for the quarter ended March 31,
     2007 as  compared to  $1,481,973  for the same  period the year  before,  a
     decrease  of $80,241 or 5.4%.  For the nine months  ended  March 31,  2007,
     product sales and services were $4,655,964, up 11.2% (or $467,098) from the
     $4,188,866 the year before.  Increase demand in contract coating  services,
     private  labeled  T-Hexx Dry sales and an inventory  call on Biosearch  OEM
     medical devices were behind the revenue increase.

     Royalty and Contract revenues include  royalties  received and the periodic
     recurring payments from license, option and other agreements for other than
     product  and  services.  Included  in Royalty  and  Contract  revenues  are
     revenues  from support and supply  agreements.  For the quarter ended March
     31, 2007, Royalty and Contract revenues were $395,981, down $43,131 or 9.8%
     from the $439,112 the same period a year ago. Royalty and Contract revenues
     were  $1,253,409  and $1,476,555 for the nine month periods ended March 31,
     2007 and 2006, respectively.  Included in the September 2006 quarter was an
     additional  $175,000 in support fees for the May and June 2006  periods,  a
     delayed recognition due to the timing of agreement finalization.

     As of March 31, 2007, our open sales order book was approximately $961,000.
     During  the  month  of  April  2007,  additional  orders  of  approximately
     $1,200,000  were  received,  some calling for delivery  over the  following
     twelve months.  Although some of the sales orders can be cancelled prior to
     production, the Company is of the opinion that no substantial cancellations
     will occur. In addition,  in the Company's line of business,  a part of its
     sales are from orders that call for immediate or very short-term  delivery.
     The open sales order book value does not reflect such future orders as they
     have not yet been received.

Total Expenses for the quarter ended March 31, 2007 were  $2,018,079 as compared
with  $2,008,480  the year before,  a 0.5%  increase.  For the nine months ended
March 31, 2007,  total Expenses were  $6,217,885 as compared with $6,126,554 the
same period the year before, or higher by 1.5%.

     The  Company's  Cost of Goods Sold was $773,469 for the quarter ended March
     31, 2007 as compared  with  $851,911  the year prior,  lower by 9.2%.  On a
     year-to-date  basis,  Cost of Goods Sold was  $2,369,712 for fiscal 2007 as
     compared  with  $2,472,643  in fiscal  2007,  $102,931 or 4.2%  lower.  The
     elimination  of a medical  device  product  line during the second  quarter
     (transferred to the customer's internal facilities),  reduced manufacturing
     labor while we continued to supply coating formulations.

     Operating  expenses were $1,310,201 for the quarter ended March 31, 2007 as
     compared with  $1,448,766  the year before,  down $138,565 or 9.6%. For the
     nine months ended March 31, 2007,  Operating  expenses  were  $3,855,143 as
     compared with $4,072,855 the year before,  down $217,712 or 5.3%.  Included
     in the prior  year's  amount was  $247,000 in legal costs  arising from the
     patent  infringement  litigation  initiated  against a former  licensee and
     other parties, the settlement of which is included in Other Income.

     Interest  expense,  interest  income and other income are included in Other
     Expenses.  Interest  expense for the nine  months  ended March 31, 2007 and
     March 31, 2006 were $143,259 and $120,814,  respectively,  up from a higher
     utilization  of the  line-of-credit  facility  and higher  interest  rates.
     Interest income for the nine months ended March 31, 2007 and March 31, 2006
     were $12,001 and $18,967, respectively, lower from a decrease in investable
     funds  during  the  period.  The  settlement  of  the  patent  infringement
     litigation in the fiscal 2006 third quarter is reported as Other Income.

A net loss of $220,366 ($0.05 per share) is reported for the quarter ended March
31, 2007 as compared to a loss of $87,395 ($0.03 per share) the year before. For
the nine months ended March 31,  2007, a net loss of $308,512  ($0.07 per share)
is reported  as  compared  to a net loss of $461,133  ($0.10 per share) the year
before.

     Higher  product and services  revenues,  from the  continued  growth in our
     contract  coating services along with the periodic private label T-Hexx Dry
     sales and an  inventory  call of medical  devices in  conjunction  with the
     production  transfer  to our  customer,  combined  with a  relatively  flat
     expense  level  yielded the  improvement  to the bottom line  results  this
     fiscal year-to-date.  Re-investment expenditures (research and development,
     patents)  accounted  for  approximately  $991,000 or 25.7% of the operating
     expenses.  Our current  projects  include  exciting new developments in the
     areas of  thrombogenicity  and cell mitosis,  for use in the cardiovascular
     and neurovascular  fields.  These developments are patent pending and still
     under evaluation.

                                       6
<PAGE>


Financial Condition
-------------------

Working capital decreased $492,423 during the nine months ended March 31, 2007.

Net operating activities provided $193,807 for the nine month period ended March
31, 2007.

     The net loss as adjusted for non-cash expenses,  used $154,884 in cash. The
     collections  of accounts  receivables as offset by the earning of income on
     amounts previously collected, provided for a $302,000 source of cash.

Investing activities used $274,522 and financing activities used $106,786 during
the nine months ended March 31, 2007.

     During  the  nine  months,   the  Company   expended   $83,614  on  capital
     expenditures and $190,908 into its patent estate. The Company also borrowed
     an  additional  $43,909  from its  revolving  line of credit  and paid down
     long-term borrowings by $150,695.

Recent  delays by our  customers in approving or  commencing  their R&D projects
have  delayed our expected  income  streams,  hindering  our ability to start or
continue other revenue generating  initiatives,  some in which expenditures have
already been made in anticipation of the forthcoming  projects.  R&D projects of
this nature are  imperative  to the  Company's  ability to maintain  its current
level of  operations,  including  further R&D and  continuing  evaluation of the
Company's recent developments for use in the cardiac and neurovascular areas, as
normal sales,  services and contract  revenues  alone are not  sufficient at its
current  levels.  One  such  need  is  for  in-vivo  pig  studies  of  our  F202
non-leaching  anti-thrombogenic  coating onto cardiovascular stents. The Company
is  investigating  various  financial  initiatives  to cover  its  re-investment
expenditures until they become revenue generating.


Item # 3

Disclosure Controls and Procedures
----------------------------------

     As of the  period  covered  by this  report,  the  Company  carried  out an
evaluation,  under the supervision and with the participation of our management,
including the Chief  Executive  Officer and  President  and the Chief  Financial
Officer,  of the  effectiveness  of the design and  operation of the  disclosure
controls and procedures.

     Based upon this evaluation, our Chief Executive Officer and Chief Financial
Officer  concluded  that, our disclosure  controls and procedures were effective
and that there were no changes to our Company's  internal control over financial
reporting that have materially  affected,  or is reasonably likely to materially
affect the Company's internal control over financial reporting during the period
covered by the Company's quarterly report.


PART II - Other Information

     The Company  operates  entirely  from its sole  location  at 35  Industrial
Parkway in  Branchburg,  New  Jersey,  an owned  facility  secured by  mortgages
through banks.

     The existing facility will be adequate for the Company's operations for the
foreseeable future.


Item # 6.  Exhibits and Reports on form 8-K:

     a) Exhibits - none

     b) Reports on form 8-K - There were no Form 8-K's filed  during the quarter
ending March 31, 2007.

                                       7
<PAGE>


                                   SIGNATURES
                                   ----------


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on his behalf by the
undersigned thereunto duly authorized.


                                                         HYDROMER, INC.

                                                         /s/ Robert Y. Lee ,VP
                                                         Robert Y. Lee
                                                         Chief Financial Officer


DATE: May 9, 2007

                                       8