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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      September 30, 2008 |
|--------|--------|--------|----------------------------------------|
|   | Common |   | 4,772,318                              |

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| HYDROMER,      INC.                                       |
|-----------------------------------------------------------|
|                                                      |
|                                                      |
| INDEX      TO FORM  10-Q                        |
| September      30, 2008                                   |
|                                                      |   |   |
|                                                      |   | Page      No. |
| Part      I  -  Financial Information |   |
|                                                      |   |   |
|                                                      | #      1  Consolidated Financial Statements |   |
|                                                      |   |   |
|                                                      |     Balance      Sheets - September 30, 2008 & June 30, 2008 | 2 |
|                                                      |   |   |
|                                                      |     Statements of      Income for the three months ended September      30, 2008 and 2007 | 3 |
|                                                      |   |   |
|                                                      |     Statements of      Cash Flows for the three months ended September      30, 2008 and 2007 | 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 |
|               |   |

----

|                                                                                                                                                                                                                        |   | September      30, |            |   | June      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------------|--------|---------------|--------|
|                                                                                                                                                                                                                        |   | 2008               |            |   | 2008          |   |
|                                                                                                                                                                                                                        |   | UNAUDITED          |            |   | AUDITED       |   |
| Assets                                                                                                                                                                                                                      |   |               |            |   |          |   |
| Current      Assets:                                                                                                                                                                                                        |   |               |            |   |          |   |
|   Cash and cash      equivalents                                                                                                                                                                                  |   | $                  | 642,645         |   |          | $      | 108,403 |   |
|   Trade receivables      less allowance for doubtful accounts of $43,744 and $79,790 as of      September 30, 2008     and      June 30, 2008, respectively                                   |   |               | 1,124,045       |   |          |   | 1,100,388 |   |
|   Inventory                                                                                                                                                                                                       |   |               | 1,044,232       |   |          |   | 1,022,660 |   |
|   Prepaid      expenses                                                                                                                                                                                           |   |               | 150,814         |   |          |   | 149,726 |   |
|   Deferred tax      asset                                                                                                                                                                                         |   |               | 8,976           |   |          |   | 8,976 |   |
|   Other                                                                                                                                                                                                           |   |               | 8,671           |   |          |   | 7,147 |   |
| Total      Current Assets                                                                                                                                                                                                   |   |               | 2,979,383       |   |          |   | 2,397,300 |   |
|                                                                                                                                                                                                                        |   |               |            |   |          |   |   |   |
| Property      and equipment, net                                                                                                                                                                                            |   |               | 3,320,646       |   |          |   | 3,339,270 |   |
| Deferred      tax asset, non-current                                                                                                                                                                                        |   |               | 618,505         |   |          |   | 620,157 |   |
| Intangible      assets, net                                                                                                                                                                                                 |   |               | 884,198         |   |          |   | 820,858 |   |
| Total      Assets                                                                                                                                                                                                           |   | $                  | 7,802,732       |   |          | $      | 7,177,585 |   |
|                                                                                                                                                                                                                        |   |               |            |   |          |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                                                                                                                             |   |               |            |   |          |   |   |   |
| Current      Liabilities:                                                                                                                                                                                                   |   |               |            |   |          |   |   |   |
|   Accounts      payable                                                                                                                                                                                           |   | $                  | 519,118         |   |          | $      | 595,412 |   |
|   Short-term      borrowings                                                                                                                                                                                      |   |               | -               |   |          |   | 289,973 |   |
|   Accrued      expenses                                                                                                                                                                                           |   |               | 244,959         |   |          |   | 345,480 |   |
|   Current portion of      capital lease                                                                                                                                                                           |   |               | 13,294          |   |          |   | 13,095 |   |
|   Current portion of      deferred revenue                                                                                                                                                                        |   |               | 115,718         |   |          |   | 88,051 |   |
|   Current portion of      mortgage payable                                                                                                                                                                        |   |               | 43,332          |   |          |   | 230,160 |   |
|   Income tax      payable                                                                                                                                                                                         |   |               | 7,680           |   |          |   | 1,652 |   |
| Total      Current Liabilities                                                                                                                                                                                              |   |               | 944,101         |   |          |   | 1,563,823 |   |
| Deferred      tax liability                                                                                                                                                                                                 |   |               | 281,398         |   |          |   | 281,398 |   |
| Long-term      portion of capital lease                                                                                                                                                                                     |   |               | 61,879          |   |          |   | 65,310 |   |
| Long-term      portion of deferred revenue                                                                                                                                                                                  |   |               | 48,923          |   |          |   | 49,461 |   |
| Long-term      portion of mortgage payable                                                                                                                                                                                  |   |               | 2,854,399       |   |          |   | 1,647,873 |   |
| Total      Liabilities                                                                                                                                                                                                      |   |               | 4,190,700       |   |          |   | 3,607,865 |   |
|                                                                                                                                                                                                                        |   |               |            |   |          |   |   |   |
| 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 September      30, 2008 and June 30, 2008 |   |               |  3,721,815 |   |          |   |  3,721,815 |   |
|   Contributed      capital                                                                                                                                                                                        |   |               | 633,150         |   |          |   | 633,150 |   |
|   Accumulated      deficit                                                                                                                                                                                        |   |               | (736,793        | )      |          |   | (779,105 | ) |
|   Treasury stock,      10,917 common shares at cost                                                                                                                                                               |   |               | (6,140          | )      |          |   | (6,140 | ) |
| Total      Stockholders’ Equity                                                                                                                                                                                       |   |               | 3,612,032       |   |          |   | 3,569,720 |   |
| Total      Liabilities and Stockholders’ Equity                                                                                                                                                                       |   | $                  | 7,802,732       |   |          | $      | 7,177,585 |   |
|                                                                                                                                                                                                                        |   |               |            |   |          |   |   |   |

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|                                                                                                                                                                                                                      |   | Three      Months EndedSeptember      30, |                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------------------------|
|                                                                                                                                                                                                                      |   | 2008UNAUDITED                             |                      |   | 2007UNAUDITED |   |
| Revenues                                                                                                                                                                                                                  |   |                                      |                      |   |   |   |
| Sale      of products                                                                                                                                                                                                     |   | $                                         | 1,118,068                 |   |   | $ | 1,195,703 |   |
| Service      revenues                                                                                                                                                                                                     |   |                                      | 514,326                   |   |   |   | 371,225 |   |
| Royalties      and contract revenues                                                                                                                                                                                      |   |                                      | 403,575                   |   |   |   | 392,285 |   |
| Total      Revenues                                                                                                                                                                                                       |   |                                      | 2,035,969                 |   |   |   | 1,959,213 |   |
|  Expenses                                                                                                                                                                                                            |   |                                      |                      |   |   |   |   |   |
| Cost      of Sales                                                                                                                                                                                                        |   |                                      | 792,318                   |   |   |   | 803,491 |   |
| Operating      Expenses                                                                                                                                                                                                   |   |                                      | 1,153,014                 |   |   |   | 1,074,207 |   |
| Other      Expenses                                                                                                                                                                                                       |   |                                      | 40,651                    |   |   |   | 42,842 |   |
| Provision      for (Benefit from) Income Taxes                                                                                                                                                                            |   |                                      | 7,680                     |   |   |   | (10,000 | ) |
|  Total      Expenses                                                                                                                                                                                                 |   |                                      | 1,993,663                 |   |   |   | 1,910,540 |   |
|                                                                                                                                                                                                                      |   |                                      |                      |   |   |   |   |   |
| Net      Income                                                                                                                                                                                                           |   | $                                         | 42,306                    |   |   | $ | 48,673 |   |
|                                                                                                                                                                                                                      |   |                                      |                      |   |   |   |   |   |
| Earnings      Per Common Share                                                                                                                                                                                            |   | $                                         | 0.01                      |   |   | $ | 0.01 |   |
| Diluted      Earnings Per Common Share                                                                                                                                                                                    |   |                                      | 0.01                      |   |   |   | 0.01 |   |
|                                                                                                                                                                                                                      |   |                                      |                      |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |                                      |                      |   |   |   |   |   |
| Weighted      Average Number of         Common      Shares Outstanding         Common      Shares Outstanding assuming dilution |   |                                      |   4,772,3184,886,318 |   |   |   |  4,702,3654,936,365 |   |

----

|                                                                                                        |   | Three      months EndedSeptember      30, |                 |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|----------------------|
|                                                                                                        |   | 2008UNAUDITED                             |                 |   | 2007UNAUDITED |   |
| Cash      Flows From Operating Activities:                                                                  |   |                                      |                 |   |   |   |
| Net      Income                                                                                             |   | $                                         | 42,306               |   |   | $ | 48,673 |   |
| Adjustments      to reconcile net income to net cash (used for) provided by operating      activities       |   |                                      |                 |   |   |   |   |   |
| Depreciation      and amortization                                                                          |   |                                      | 107,475              |   |   |   | 95,256 |   |
| Deferred      income taxes                                                                                  |   |                                      | 1,652                |   |   |   | (10,000 | ) |
| Changes      in Assets and Liabilities:                                                                     |   |                                      |                 |   |   |   |   |   |
| Trade receivables                                                                                           |   |                                      | (23,657              | ) |   |   | 144,139 |   |
| Inventory                                                                                                   |   |                                      | (21,572              | ) |   |   | 49,340 |   |
| Prepaid expenses                                                                                            |   |                                      | (1,088               | ) |   |   | 35,176 |   |
| Other assets                                                                                                |   |                                      | (1,524               | ) |   |   | 13,230 |   |
| Accounts payable and accrued      liabilities                                                               |   |                                      | (176,809             | ) |   |   | (213,315 | ) |
| Deferred income                                                                                             |   |                                      | 27,129               |   |   |   | 33,746 |   |
| Income taxes    payable                                                                                     |   |                                      | 6,028                |   |   |   | - |   |
|  Net      Cash (Used for) Provided by Operating Activities                                   |   |                                      | (40,060    | )   |   |   | 196,245   |   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                                  |   |                                      |                 |   |   |   |   |   |
| Cash      purchases of property and equipment                                                               |   |                                      | (46,611              | ) |   |   | (45,589 | ) |
| Cash      payments on patents and trademarks                                                                |   |                                      | (108,812             | ) |   |   | (32,112 | ) |
|  Net      Cash Used for Investing Activities                                                 |   |                                      | (155,423   | )   |   |   | (77,701   | )   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
| Cash      Flows From Financing Activities:                                                                  |   |                                      |                 |   |   |   |   |   |
| Net repayments      towards Line of Credit                                                        |   |                                      | (289,973             | ) |   |   | (33,564 | ) |
| Proceeds      from long-term borrowings                                                                     |   |                                      | 2,900,000            |   |   |   | - |   |
| Repayment      of long-term borrowings                                                                      |   |                                      | (1,880,302           | ) |   |   | (52,365 | ) |
| Proceeds      from the issuance of common stock                                                             |   |                                      | -                    |   |   |   | 60,000 |   |
|  Net      Cash Provided by (Used for) Financing Activities                                        |   |                                      | 729,725         |   |   |   | (25,929  | )  |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
| Net      Increase in Cash and Cash Equivalents:                                                             |   |                                      | 534,242              |   |   |   | 92,615 |   |
| Cash      and Cash Equivalents at Beginning of Period                                                       |   |                                      | 108,403              |   |   |   | 146,338 |   |
| Cash      and Cash Equivalents at End of Period                                                             |   | $                                         | 642,645              |   |   | $ | 238,953 |   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
|                                                                                                        |   |                                      |                 |   |   |   |   |   |
| Supplemental      Non-Cash Investing & Financing Activities:Equipment acquired under Capital      Lease |   | $                                         |   -        |   |   | $ |  63,747 |   |

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|                                                     |   | Polymer Research |      |   | MedicalProducts |   |     | Corporate Overhead |   |   | Total    |   |
|----------------------------------------------------------|--------|-----------------------|-----------|--------|-----------------|--------|----------|-------------------------|--------|--------|----------|--------|
| 2008                                                     |   |                  |      |   |            |   |     |                    |   |   |     |   |
| Revenues                                                 |   | $                     | 1,211,423 |   |            | $      | 824,546  |                    |   |   |     |   | $ | 2,035,969 |   |
| Expenses                                                 |   |                  | (796,297  | )      |            |   | (783,640 | )                       |   | $      | (406,046 | )      |   |   | (1,985,983 | ) |
|      Pre-tax      Income (Loss) |   | $                     | 415,126   |   |            | $      | 40,906   |                    |   | $      | (406,046 | )      |   | $ | 49,986 |   |
|                                                     |   |                  |      |   |            |   |     |                    |   |   |     |   |   |   |   |   |
| 2007                                                     |   |                  |      |   |            |   |     |                    |   |   |     |   |   |   |   |   |
| Revenues                                                 |   | $                     | 1,175,964 |   |            | $      | 783,249  |                    |   |   |     |   |   | $ | 1,959,213 |   |
| Expenses                                                 |   |                  | (852,872  | )      |            |   | (694,823 | )                       |   | $      | (372,845 | )      |   |   | (1,920,540 | ) |
|      Pre-tax      Income (Loss) |   | $                     | 323,092   |   |            | $      | 88,426   |                    |   | $      | (372,845 | )      |   | $ | 38,673 |   |
|                                                     |   |                  |      |   |            |   |     |                    |   |   |     |   |   |   |   |   |

|   |     |   | 2008   |   |   | 2007   |   |
|--------|----------|--------|--------|--------|--------|--------|--------|
|   | Domestic |   |   | 82     | %      |   |   | 80 | % |
|   | Foreign  |   |   | 18     | %      |   |   | 20 | % |

----

----

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

|   | b)   | Reports      on form 8-K – The Company filed two Form 8-K’s during the quarter ending      September 30, 2008.   Each 8-K reported press releases      issued by the Company: one announcing a Coating Services and Supply      Agreement; and the other announcing that its T-HEXX® Animal Health      Division Goes “GREEN”. |
|--------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                         |   | HYDROMER,      INC.                                |
|------------------------------|--------|----------------------------------------------------|
|                         |   |                                               |
|                         |   | /s/      Robert Y. Lee, VP     |
|                         |   | Robert      Y. Lee                                 |
|                         |   | Chief      Financial Officer                       |
|                         |   |                                               |
|                         |   |                                               |
|                         |   |                                               |
| DATE:      November 14, 2008 |   |                                               |

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