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|     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     |

|   | Class  |   | Outstanding                at                December 31, 2007 |
|--------|--------|--------|----------------------------------------------------------------|
|   | Common |   | 4,772,318                                                      |

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|                                                                                                                                                          |   | Page                No. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|
| Part                I  -  Financial Information                                                                                           |   |                    |
|                                                                                                                                                          |   |                    |
|     #                1  Consolidated Financial Statements                                                                       |   |                    |
|                                                                                                                                                          |   |                    |
|         Balance                Sheets - December 31, 2007 & June 30, 2007                                         |   | 2                       |
|                                                                                                                                                          |   |                    |
|         Statements                of                Income for the three months and six months ended                  |   |                    |
|           December                31, 2007                and 2006                                          |   | 3                       |
|                                                                                                                                                          |   |                    |
|         Statements                of                Cash Flows for the six months ended                               |   |                    |
|           December                31, 2007                and 2006                                          |   | 4                       |
|                                                                                                                                                          |   |                    |
|         Notes                to Financial Statements                                                                  |   | 5                       |
|                                                                                                                                                          |   |                    |
|     #                2  Management's Discussion and Analysis of the Financial                Conditionand 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                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       |
|                       |                                                                                                                                     |   |     |

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|                                                                                                                                                                                                                                                                                                                                  |   | December                  31,2007UNAUDITED |      |   | June                  30,2007AUDITED |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|--------------------------------------|---------|
| Assets                                                                                                                                                                                                                                                                                                                                |   |                                       |      |   |                                 |    |
| Current                  Assets:                                                                                                                                                                                                                                                                                                      |   |                                       |      |   |                                 |    |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                            |   |  $                                    | 172,695   |   |                                 |  $ | 146,338 |   |
| Trade                  receivables less allowance for doubtful accounts of $67,644 as                  of                    December                  31, 2007                  and $62,044 as of June 30, 2007                                                                                                            |   |                                       | 932,458   |   |                                 |    | 1,121,752 |   |
| Inventory                                                                                                                                                                                                                                                                                                                             |   |                                       | 910,320   |   |                                 |    | 956,711 |   |
| Prepaid                  expenses                                                                                                                                                                                                                                                                                                     |   |                                       | 80,608    |   |                                 |    | 120,448 |   |
| Deferred                  tax asset                                                                                                                                                                                                                                                                                                   |   |                                       | 8,976     |   |                                 |    | 8,976 |   |
| Other                                                                                                                                                                                                                                                                                                                                 |   |                                       | 1,468     |   |                                 |    | 13,484 |   |
| Total                  Current Assets                                                                                                                                                                                                                                                                                                 |   |                                       | 2,106,525 |   |                                 |    | 2,367,709 |   |
|                                                                                                                                                                                                                                                                                                                                  |   |                                       |      |   |                                 |    |   |   |
| Property                  and equipment, net                                                                                                                                                                                                                                                                                          |   |                                       | 3,338,735 |   |                                 |    | 3,295,992 |   |
| Deferred                  tax asset, non-current                                                                                                                                                                                                                                                                                      |   |                                       | 657,949   |   |                                 |    | 609,730 |   |
| Intangible                  assets, net                                                                                                                                                                                                                                                                                               |   |                                       | 926,613   |   |                                 |    | 910,303 |   |
| Total                  Assets                                                                                                                                                                                                                                                                                                         |   |  $                                    | 7,029,822 |   |                                 |  $ | 7,183,734 |   |
|                                                                                                                                                                                                                                                                                                                                  |   |                                       |      |   |                                 |    |   |   |
| Liabilities                  and Stockholders’ Equity                                                                                                                                                                                                                                                                           |   |                                       |      |   |                                 |    |   |   |
| Current                  Liabilities:                                                                                                                                                                                                                                                                                                 |   |                                       |      |   |                                 |    |   |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                     |   |  $                                    | 441,973   |   |                                 |  $ | 537,338 |   |
| Short-term                  borrowings                                                                                                                                                                                                                                                                                                |   |                                       | 461,626   |   |                                 |    | 514,096 |   |
| Accrued                  expenses                                                                                                                                                                                                                                                                                                     |   |                                       | 295,086   |   |                                 |    | 358,301 |   |
| Current                  portion of capital lease                                                                                                                                                                                                                                                                                     |   |                                       | 15,961    |   |                                 |    | - |   |
| Current                  portion of deferred revenue                                                                                                                                                                                                                                                                                  |   |                                       | 108,481   |   |                                 |    | 32,215 |   |
| Current                  portion of mortgage payable                                                                                                                                                                                                                                                                                  |   |                                       | 222,537   |   |                                 |    | 215,394 |   |
| Income                  tax payable                                                                                                                                                                                                                                                                                                   |   |                                       | 6,284     |   |                                 |    | 9,160 |   |
| Total                  Current Liabilities                                                                                                                                                                                                                                                                                            |   |                                       | 1,551,948 |   |                                 |    | 1,666,504 |   |
| Deferred                  tax liability                                                                                                                                                                                                                                                                                               |   |                                       | 261,958   |   |                                 |    | 261,958 |   |
| Long-term                  portion of capital lease                                                                                                                                                                                                                                                                                   |   |                                       | 47,786    |   |                                 |    | - |   |
| Long-term                  portion of deferred revenue                                                                                                                                                                                                                                                                                |   |                                       | 48,570    |   |                                 |    | 62,978 |   |
| Long-term                  portion of mortgage payable                                                                                                                                                                                                                                                                                |   |                                       | 1,764,947 |   |                                 |    | 1,878,040 |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                                                    |   |                                       | 3,675,209 |   |                                 |    | 3,869,480 |   |
| 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; 4,783,235 shares                  issued and 4,772,318 shares outstanding as of December 31, 2007                  and                  4,698,825 shares issued and 4,687,908 shares outstanding as June                  30,                  2007 |   |                                       | 3,721,815 |   |                                 |    | 3,643,815 |   |
| Contributed                  capital                                                                                                                                                                                                                                                                                                  |   |                                       | 633,150   |   |                                 |    | 633,150 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                                                  |   |                                       | (994,212  | )      |                                 |    | (956,571 | ) |
| Treasury                  stock, 10,917 common shares at cost                                                                                                                                                                                                                                                                         |   |                                       | (6,140    | )      |                                 |    | (6,140 | ) |
| Total                  Stockholders’ Equity                                                                                                                                                                                                                                                                                     |   |                                       | 3,354,613 |   |                                 |    | 3,314,254 |   |
| Total                  Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                                                     |   |  $                                    | 7,029,822 |   |                                 |  $ | 7,183,734 |   |

----

|                                                                               |   | Three                Months EndedDecember                31, |              |           | Six                Months EndedDecember                31, |          |
|------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|-------------------|----------------|------------------------------------------------------------|---------------|
|                                                                               |   | 2007UNAUDITED                                                |              |           | 2006UNAUDITED                                              |          |   | 2007UNAUDITED |   |   | 2006                UNAUDITED |   |
| Revenues                                                                           |   |                                                         |              |           |                                                       |          |   |   |   |   |   |   |
| Sale                of products                                                    |   | $                                                            | 943,558           |           |                                                       | $             | 1,316,130 |   |   | $ | 2,139,261 |   |   | $ | 2,524,330 |   |
| Service                revenues                                                    |   |                                                         | 413,094           |           |                                                       |          | 361,422 |   |   |   | 784,319 |   |   |   | 729,902 |   |
| Royalties                and Contract Revenues                                     |   |                                                         | 401,874           |           |                                                       |          | 406,335 |   |   |   | 794,159 |   |   |   | 857,428 |   |
| Total                Revenues                                                      |   |                                                         | 1,758,526         |           |                                                       |          | 2,083,887 |   |   |   | 3,717,739 |   |   |   | 4,111,660 |   |
|  Expenses                                                                     |   |                                                         |              |           |                                                       |          |   |   |   |   |   |   |   |   |   |   |
| Cost                of Sales                                                       |   |                                                         | 707,317           |           |                                                       |          | 748,658 |   |   |   | 1,510,808 |   |   |   | 1,596,243 |   |
| Operating                Expenses                                                  |   |                                                         | 1,134,681         |           |                                                       |          | 1,188,063 |   |   |   | 2,208,887 |   |   |   | 2,544,942 |   |
| Other                Expenses / (Income)                                           |   |                                                         | 38,197            |           |                                                       |          | 44,398 |   |   |   | 81,040 |   |   |   | 87,518 |   |
| (Benefit                from) Provision for from Income Taxes                      |   |                                                         | (35,354           | )              |                                                       |          | 40,079 |   |   |   | (45,354 | ) |   |   | (28,897 | ) |
|  Total                Expenses                                                |   |                                                         | 1,844,841         |           |                                                       |          | 2,021,198 |   |   |   | 3,755,381 |   |   |   | 4,199,806 |   |
|  Net                (Loss) Income                                             |   | $                                                            | (86,315           | )              |                                                       | $             | 62,689 |   |   | $ | (37,642 | ) |   | $ | (88,146 | ) |
|  (Loss)                Earnings Per Common Share                    |   | $                                                  | (0.02   | ).   |                                                       | $   | 0.01 . |   |   | $   | (0.01   | )   |   | $   | (0.02   | )   |
| Weighted                Average Number of Common                Shares Outstanding |   |                                                         | 4,747,984         |           |                                                       |          | 4,644,164 |   |   |   | 4,725,337 |   |   |   | 4,644,164 |   |

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|                                                                                                                                                               |   | Six                Months EndedDecember                31 |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|----------|
|                                                                                                                                                               |   | 2007UNAUDITED                                             |     |   | 2006UNAUDITED |   |
| Cash                Flows From Operating Activities:                                                                                                               |   |                                                      |     |   |   |   |
| Net                Loss                                                                                                                                            |   | $                                                         | (37,642  | ) |   | $ | (88,146 | ) |
| Adjustments                to reconcile net loss to net cash provided by (used for) operating                activities                                            |   |                                                      |     |   |   |   |   |   |
| Depreciation                and amortization                                                                                                                       |   |                                                      | 209,622  |   |   |   | 197,909 |   |
| Deferred                income taxes                                                                                                                               |   |                                                      | (48,219  | ) |   |   | (28,897 | ) |
| Changes                in Assets and Liabilities:                                                                                                                  |   |                                                      |     |   |   |   |   |   |
| Trade                receivables                                                                                                                                   |   |                                                      | 189,294  |   |   |   | 215,955 |   |
| Inventory                                                                                                                                                          |   |                                                      | 46,391   |   |   |   | 78,359 |   |
| Prepaid                expenses                                                                                                                                    |   |                                                      | 39,840   |   |   |   | 50,212 |   |
| Other                assets                                                                                                                                        |   |                                                      | 12,016   |   |   |   | 14,479 |   |
| Accounts                payable and accrued                liabilities                                                                                             |   |                                                      | (158,579 | ) |   |   | (127,433 | ) |
| Deferred                income                                                                                                                                     |   |                                                      | 61,858   |   |   |   | (115,790 | ) |
| Income                taxes                payable                                                                                                                 |   |                                                      | (2,876   | ) |   |   | 36,735 |   |
| Net                Cash Provided by Operating Activities                                                                                                           |   |                                                      | 311,705  |   |   |   | 233,383 |   |
|                                                                                                                                                               |   |                                                      |     |   |   |   |   |   |
| Cash                Flows From Investing Activities:                                                                                                               |   |                                                      |     |   |   |   |   |   |
| Cash                purchases of property and equipment                                                                                                            |   |                                                      | (98,248  | ) |   |   | (44,728 | ) |
| Cash                payments on patents and trademarks                                                                                                             |   |                                                      | (106,680 | ) |   |   | (136,910 | ) |
| Net                Cash Used for Investing Activities                                                                                                              |   |                                                      | (204,928 | ) |   |   | (181,638 | ) |
|                                                                                                                                                               |   |                                                      |     |   |   |   |   |   |
| Cash                Flows From Financing Activities:                                                                                                               |   |                                                      |     |   |   |   |   |   |
| Net                borrowings against Line of Credit                                                                                                               |   |                                                      | (52,470  | ) |   |   | (124,720 | ) |
| Repayment                of long-term borrowings                                                                                                                   |   |                                                      | (105,950 | ) |   |   | (99,268 | ) |
| Proceeds                from the issuance of common stock                                                                                                          |   |                                                      | 78,000   |   |   |   | - |   |
| Net                Cash Used for Financing Activities                                                                                                              |   |                                                      | (80,420  | ) |   |   | (223,988 | ) |
|                                                                                                                                                               |   |                                                      |     |   |   |   |   |   |
| Net                Increase (Decrease) in Cash and Cash Equivalents:                                                                                               |   |                                                      | 26,357   |   |   |   | (172,243 | ) |
| Cash                and Cash Equivalents at Beginning of Period                                                                                                    |   |                                                      | 146,338  |   |   |   | 434,865 |   |
| Cash                and Cash Equivalents at End of Period                                                                                                          |   | $                                                         | 172,695  |   |   | $ | 262,622 |   |
|                                                                                                                                                               |   |                                                      |     |   |   |   |   |   |
|  Supplemental                Non-Cash Investing & Financing Activites:     Equipment                acquired under Capital Lease |   | $                                                         | 63,747   |   |   |   | - |   |

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|                                                                 |   | Polymer                  Research |            |   | MedicalProducts |   |            | Corporate                  Overhead |   |   | Total    |   |
|----------------------------------------------------------------------|--------|-----------------------------------|-----------------|--------|-----------------|--------|-----------------|-------------------------------------|--------|--------|----------|--------|
| 2007                                                                 |   |                              |            |   |            |   |            |                                |   |   |     |   |
| Revenues                                                             |   | $                                 | 2,102,470       |   |            | $      | 1,615,269       |                                |   |   |     |   | $ | 3,717,739 |   |
| Expenses                                                             |   |                              | (1,620,718      | )      |            |   | (1,392,965      | )                                   |   | $      | (787,052 | )      |   |   | (3,800,735 | ) |
|      Pre-tax                  Income (Loss) |   | $                                 | 481,752         |   |            | $      | 222,304         |                                |   | $      | (787,052 | )      |   | $ | (82,996 | ) |
|                                                                 |   |                              |            |   |            |   |            |                                |   |   |     |   |   |   |   |   |
| 2006                                                                 |   |                              |            |   |            |   |            |                                |   |   |     |   |   |   |   |   |
| Revenues                                                             |   | $                                 |  2,231,934 |   |            | $      |  1,879,726 |                                |   |   |     |   |   | $ | 4,111,660 |   |
| Expenses                                                             |   |                              | (1,850,442      | )      |            |   | (1,637,221      | )                                   |   | $      | (741,040 | )      |   |   | (4,228,703 | ) |
|      Pre-tax                  Income (Loss) |   | $                                 |  381,492   |   |            | $      |  242,505   |                                |   | $      | (741,040 | )      |   | $ | (117,043 | ) |
|                                                                 |   |                              |            |   |            |   |            |                                |   |   |     |   |   |   |   |   |

|     | 2007      | 2006 |
|----------|-----------|------|
| Domestic |  82% | 86%  |
| Foreign  |  18% | 14%  |

----

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|   | a) | Exhibits                – none |
|--------|----|--------------------------------------|

|   | b)   | Reports                on form 8-K – There were no Form 8-K’s filed during the quarter ending                December 31, 2007. |
|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |   | HYDROMER,                  INC.                                                  |
|------------------------------------------|--------|----------------------------------------------------------------------------------|
|                                     |   |                                                                             |
|                                     |   |                                                                             |
|                                     |   |                                                                             |
|                                     |   | /s/                Robert Y. Lee         |
|                                     |   |   Robert                  Y.                  Lee                      |
|                                     |   |   Chief                  Financial                  Officer            |
|                                     |   |                                                                             |
|                                     |   |                                                                             |
|                                     |   |                                                                             |
| DATE:                  February 13, 2008 |   |                                                                             |

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