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 December 31, 2006

                         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 December 31, 2006
    -----                                    --------------------------------
    Common                                               4,644,164

<PAGE>


                                 HYDROMER, INC.


                              INDEX TO FORM 10-QSB
                                December 31, 2006

                                                                        Page No.
Part I  -  Financial Information

     # 1 Consolidated Financial Statements

          Balance Sheets - December 31, 2006 & June 30, 2006               2

          Statements of Income for the three months and six months
           ended December 31, 2006 and 2005                                3

          Statements of Cash Flows for the six months ended
           December 31, 2006 and 2005                                      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>


Part I - Financial Information
Item # 1

                   HYDROMER, INC. and CONSOLIDATED SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS


                                                      December 31,    June 30,
                                                         2006           2006
                                                       UNAUDITED       AUDITED
Assets
Current Assets:
    Cash and cash equivalents                         $   262,622   $   434,865
    Trade receivables less allowance for doubtful
     accounts of $57,624 and $44,479 as of December
     31, 2006 and June 30, 2006, respectively             982,134     1,198,089

    Inventory                                             909,727       988,086
    Prepaid expenses                                       68,223       118,436
    Deferred tax asset                                      8,976         8,976
    Income tax refund receivable                           54,548        91,436
    Other                                                 108,502       127,776
--------------------------------------------------------------------------------
Total Current Assets                                    2,394,732     2,967,664
--------------------------------------------------------------------------------

Property and equipment, net                             3,305,055     3,377,473
Deferred tax asset, non-current                           536,323       507,426
Intangible assets, net                                    905,409       849,262
Other, non-current                                        119,171       114,377
--------------------------------------------------------------------------------
Total Assets                                          $ 7,260,690   $ 7,816,202
--------------------------------------------------------------------------------

Liabilities and Stockholders' Equity
Current Liabilities:
    Accounts payable                                  $   623,816   $   635,010
    Short-term borrowings                                 531,535       656,255
    Accrued expenses                                      257,801       374,043
    Current portion of deferred revenue                    55,059       128,941
    Current portion of mortgage payable                   208,924       202,204
    Income tax payable                                        947         1,100
--------------------------------------------------------------------------------
Total Current Liabilities                               1,678,082     1,997,553
Deferred tax liability                                    271,058       271,058
Long-term portion of deferred revenue                      51,268        93,176
Long-term portion of mortgage payable                   1,987,450     2,093,437
--------------------------------------------------------------------------------
Total Liabilities                                       3,987,858     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;, 4,655,081 shares issued and 4,644,164
     shares outstanding as of December 31, 2006 and
     June 30, 2006                                      3,639,315     3,639,315
    Contributed capital                                   577,750       577,750
    Accumulated deficit                                  (938,093)     (849,947)
    Treasury stock, 10,917 common shares at cost           (6,140)       (6,140)
--------------------------------------------------------------------------------
Total Stockholders' Equity                              3,272,832     3,360,978
--------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity            $ 7,260,690   $ 7,816,202
--------------------------------------------------------------------------------

                                       2
<PAGE>

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

                                                Three Months Ended           Six Months Ended
                                                    December 31,                December 31,
                                                2006          2005          2006          2005
                                              UNAUDITED     UNAUDITED     UNAUDITED     UNAUDITED
-------------------------------------------  --------------------------  --------------------------
Revenues
  Sale of products                           $ 1,316,130   $ 1,161,379   $ 2,524,330   $ 2,216,129
  Service revenues                               361,422       245,481       729,902       490,764
  Royalties and Contract Revenues                406,335       476,272       857,428     1,037,443
                                             ------------  ------------  ------------  ------------

  Total Revenues                               2,083,887     1,883,132     4,111,660     3,744,336
-------------------------------------------  --------------------------  --------------------------

Expenses
  Cost of Sales                                  748,658       803,384     1,596,243     1,620,732
  Operating Expenses                           1,188,063     1,242,355     2,544,942     2,624,089
  Other Expenses                                  44,398        32,221        87,518        65,784
  Provision for (Benefit from) Income Taxes       40,079       (66,241)      (28,897)     (192,531)
                                             ------------  ------------  ------------  ------------

      Total Expenses                           2,021,198     2,011,719     4,199,806     4,118,074
-------------------------------------------  --------------------------  --------------------------

      Net Income (Loss)                      $    62,689   $  (128,587)  $   (88,146)  $  (373,738)
-------------------------------------------  --------------------------  --------------------------

      Earnings (Loss) Per Common Share       $      0.01   $     (0.03)  $     (0.02)  $     (0.08)


Weighted Average Number of Common Shares
 Outstanding                                   4,644,164     4,643,217     4,644,164     4,634,362


Except for the quarter ended December 31, 2006, the effects of the common stock
equivalents on diluted earnings per share are not included as their effect would
be anti-dilutive. For the quarter ended December 31, 2006, there was no effect
of the common stock equivalents on diluted earnings per share.

</TABLE>

                                       3
<PAGE>


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


                                                           Six Months Ended
                                                              December 31,
                                                          2006          2005
                                                        UNAUDITED     UNAUDITED
--------------------------------------------------------------------------------
Cash Flows From Operating Activities:
  Net Loss                                             $  (88,146)  $  (373,738)
  Adjustments to reconcile net loss to net cash
   provided by (used for) operating activities
    Depreciation and amortization                         197,909       172,844
    Deferred income taxes                                 (28,897)     (192,600)
    Changes in Assets and Liabilities:
      Trade receivables                                   215,955       232,961
      Inventory                                            78,359       (16,410)
      Prepaid expenses                                     50,212        26,092
      Other assets                                         14,479       (37,986)
      Accounts payable and accrued liabilities           (127,433)     (176,618)
      Deferred income                                    (115,790)            -
      Income taxes payable                                 36,735         2,328
--------------------------------------------------------------------------------

        Net Cash Provided by (Used for) Operating
         Activities                                       233,383      (363,127)

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

Cash Flows From Investing Activities:
  Cash purchases of property and equipment                (44,728)      (88,943)
  Cash payments on patents and trademarks                (136,910)      (84,866)
  Cash purchases of short-term investments                      -      (392,633)
--------------------------------------------------------------------------------

        Net Cash Used for Investing Activities           (181,638)     (566,442)

--------------------------------------------------------------------------------
Cash Flows From Financing Activities:
  Net borrowings against Line of Credit                  (124,720)       78,270
  Repayment of long-term borrowings                       (99,268)      (81,174)
  Proceeds from the issuance of common stock                    -         7,700
--------------------------------------------------------------------------------

        Net Cash (Used for) Provided by Financing
         Activities                                      (223,988)        4,796

--------------------------------------------------------------------------------
Net Decrease in Cash and Cash Equivalents:               (172,243)     (924,773)
Cash and Cash Equivalents at Beginning of Period          434,865     1,376,656
--------------------------------------------------------------------------------

Cash and Cash Equivalents at End of Period             $  262,622   $   451,883
--------------------------------------------------------------------------------


                                       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.

Subsequent Events:
------------------
On January 24, 2007, the Company renewed its Line of Credit facility to a new
maturity of January 31, 2008. The renewed credit facility, effective at
$737,500, will have the line reduced $12,500 each month beginning February 28,
2007 and carries a rate of LIBOR + 3%.

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 six months ended December 31, by segment are:

                           Polymer        Medical      Corporate
                           Research       Products      Overhead       Total
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)
                         ============= =============  ===========  =============
--------------------------------------------------------------------------------
2005
Revenues                 $  2,203,554  $  1,540,782                $  3,744,336
Expenses                   (1,812,623)   (1,771,260)  $ (726,722)    (4,310,605)
                         ------------- -------------  -----------  -------------
  Pre-tax Income (Loss)  $    390,931  $   (230,478)  $ (726,722)  $   (566,269)
                         ============= =============  ===========  =============



Geographic revenues were as follows for the six months ended December 31,
                             2006          2005
                             ----          ----
        Domestic              86%           84%
        Foreign               14%           16%



                                       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 December 31, 2006 were $2,083,887,
up 10.7% from the $1,883,132 for the same period last year. Revenues for the six
months ended December 31, 2006 were $4,111,660, or 9.8% higher than the
$3,744,336 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  $1,677,552  for the quarter ended December
     31, 2006 as compared to $1,406,860 for the same period the year before,  an
     increase  of  $270,692  or 19.2%.  Private  label  orders of our T-Hexx Dry
     (periodic  revenues)  this quarter  along with an increase in demand in our
     contract coating business accounted for the increase during the period. For
     the six months ended  December 31, 2006,  product  sales and services  were
     $3,254,232,  up 20.2% (or $547,339)  from the  $2,706,893  the year before.
     Increase demand in contract coating services,  the private label 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 December
     31, 2006,  Royalty and Contract  revenues  were  $406,335,  down $69,937 or
     14.7% from the  $476,272  the same period a year ago.  Royalty and Contract
     revenues  were  $857,428 and  $1,037,443  for the six month  periods  ended
     December 31, 2006 and 2005,  respectively.  Included in the September  2005
     quarter was an  additional  $175,000  in support  fees for the May and June
     2005  periods,  a  delayed  recognition  due to  the  timing  of  agreement
     finalization.

     As of  December  31,  2006,  our open sales  order  book was  approximately
     $936,000,  which does not  include any  [future]  orders that would come up
     during the normal course of business and filled  immediately  or during the
     quarter.  Although  some of the  sales  orders  can be  cancelled  prior to
     production, the Company is of the opinion that no substantial cancellations
     will occur.


Total Expenses for the quarter ended December 31, 2006 were $2,021,198 as
compared with $2,011,719 the year before, a 0.5% increase. For the six months
ended December 31, 2006, total Expenses were $4,199,806 as compared with
$4,118,074 the same period the year before, up 2.0%.

     The  Company's  Cost of  Goods  Sold was  $748,658  for the  quarter  ended
     December 31, 2006 as compared with $803,384 the year prior,  lower by 6.8%.
     The transfer of a medical device  product line (to the customer's  internal
     facilities)  reduced  manufacturing  labor  during the  quarter,  though we
     continue to supply the coating formulations.  On a year-to-date basis, Cost
     of Goods Sold was $1,596,243 for fiscal 2007 as compared with $1,620,732 in
     fiscal 2006, $24,490 or 1.5% lower.

     Operating  expenses were $1,188,063 for the quarter ended December 31, 2006
     as compared with $1,242,355 the year before,  down $54,292 or 4.4%. For the
     six months ended December 31, 2006,  Operating  expenses were $2,544,942 as
     compared with $2,624,089 the year before, down $79,147 or 3.0%. Included in
     the prior year's amount was $165,000 (arising from the patent  infringement
     litigation  initiated against a former licensee and other parties),  offset
     by  approximately  $68,000  in higher  Research  and  Development  expenses
     (salaries and supplies) and $16,000 in higher utilities costs.

     Included  in Other  Expenses  are  Interest  expense and  Interest  income.
     Interest  expense for the six months  ended  December 31, 2006 and December
     31,  2005  were  $96,492  and  $80,849,  respectively,  up  from  a  higher
     utilization of the  line-of-credit  facility.  Interest  income for the six
     months  ended  December  31,  2006 and  December  31,  2005 were $8,945 and
     $13,539, respectively, lower from a decrease in investable funds during the
     period.


Net income of $62,689 ($0.01 per share) is reported for the quarter ended
December 31, 2006 as compared to a net loss of $128,587 ($0.03 per share) the
year before. For the six months ended December 31, 2006, a net loss of $88,146
($0.02 per share) is reported as compared to a net loss of $373,738 ($0.08 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 26.1% 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.


                                       6
<PAGE>


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

Working capital decreased $253,461 during the six months ended December 31,
2006.

Net operating activities provided $233,383 for the six month period ended
December 31, 2006.

     The net loss as adjusted for non-cash expenses, provided for $80,866 in net
     cash. The  collections of accounts  receivables as offset by the earning of
     income on amounts previously collected, provided for an additional $100,165
     source of cash.

Investing activities used $181,638 and financing activities used $223,988 during
the six months ended December 31, 2006.

     During the six months, the Company expended $44,728 on capital expenditures
     and $136,910 into its patent  estate.  The Company also repaid  $124,720 to
     its revolving line of credit and paid down long-term borrowings by $99,268.

Management believes that its current working capital and available line of
credit, along with expected income and expense streams, are sufficient to
maintain its current level of operations.


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 four Form 8-K's filed during the
quarter ending December 31, 2006, each announcing the Company's new
technological developments.


                                       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
                                                         -----------------------
                                                         Robert Y. Lee
                                                         Chief Financial Officer


DATE: February 8, 2007