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**FORM      10-QSB**

**HYDROMER,      INC.**

|     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, 2007 |
|-------------|--------|--------------------------------------------------------|
| Common      |   | 4,717,908                                              |

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|                                          |                                                                                                             |                                                                   | Page                No. |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|-------------------------|
| Part                I - Financial Information |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                1                Consolidated Financial Statements                                              |                                                                   |
|                                          |                                                                                                             |                                                                   |                    |
|                                          |                                                                                                             | Balance                Sheets - September 30, 2007 & June 30, 2007 | 2                       |
|                                          |                                                                                                             |                                                                   |                    |
|                                          |                                                                                                             | Statements                of Income for the three months ended         |                    |
|                                          |                                                                                                             | September                30, 2007 and 2006                             | 3                       |
|                                          |                                                                                                             |                                                                   |                    |
|                                          |                                                                                                             | Statements                of Cash Flows for the three months ended     |                    |
|                                          |                                                                                                             | September                30, 2007 and 2006                             | 4                       |
|                                          |                                                                                                             |                                                                   |                    |
|                                          |                                                                                                             | Notes                to Financial Statements                           | 5                       |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                2                Management's Discussion and Analysis of the Financial                Condition |                                                                   |
|                                          |                       and Results of Operations                                    | 6                                                                      |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                3                Controls and Procedures                                                        | 7                                                                      |
|                                          |                                                                                                             |                                                                   |                    |
|                                          |                                                                                                             |                                                                   |                    |
| Part                II - Other Information    |                                                                                                             |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                1                Legal Proceedings                                                              | N/A                                                                    |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                2                Change in Securities                                                           | 7                                                                      |
|                                          |                                                                                                             |                                                                   |                    |
|                                          | #                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 |
|                         |   |   |

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**Part      I - Financial Information**

**Item      # 1**

**HYDROMER,      INC. and CONSOLIDATED SUBSIDIARY**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                                                                                                            |   | September                  30,**2007**UNAUDITED |          |                     June 30, 2007                  AUDITED |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------------|----------------------------------------------------------------------|--------|
| **Assets**                                                                                                                                                                                                                                                                                                      |   |                                            |          |                                                                 |   |
| Current                  Assets:                                                                                                                                                                                                                                                                                |   |                                            |          |                                                                 |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                      |   | $                                               | **238,953**   |                                                                 | $      | 146,338 |   |
| Trade                  receivables less allowance for doubtful accounts of $65,396 as                  of                      September                  30,                  2007 and $62,044 as of June 30, 2007                                                                         |   |                                            | **977,613**   |                                                                 |   | 1,121,752 |   |
| Inventory                                                                                                                                                                                                                                                                                                       |   |                                            | **907,371**   |                                                                 |   | 956,711 |   |
| Prepaid                  expenses                                                                                                                                                                                                                                                                               |   |                                            | **85,272**    |                                                                 |   | 120,448 |   |
| Deferred                  tax asset                                                                                                                                                                                                                                                                             |   |                                            | **8,976**     |                                                                 |   | 8,976 |   |
| Other                                                                                                                                                                                                                                                                                                           |   |                                            | **254**       |                                                                 |   | 13,484 |   |
| Total                  Current Assets                                                                                                                                                                                                                                                                           |   |                                            | **2,218,439** |                                                                 |   | 2,367,709 |   |
|                                                                                                                                                                                                                                                                                                            |   |                                            |          |                                                                 |   |   |   |
| Property                  and equipment, net                                                                                                                                                                                                                                                                    |   |                                            | **3,346,119** |                                                                 |   | 3,295,992 |   |
| Deferred                  tax asset, non-current                                                                                                                                                                                                                                                                |   |                                            | **619,730**   |                                                                 |   | 609,730 |   |
| Intangible                  assets, net                                                                                                                                                                                                                                                                         |   |                                            | **906,368**   |                                                                 |   | 910,303 |   |
|  Total                  Assets                                                                                                                                                                                                                                                                             |   | **$**                                           | **7,090,656** |                                                                 | $      | 7,183,734 |   |
|                                                                                                                                                                                                                                                                                                            |   |                                            |          |                                                                 |   |   |   |
| **Liabilities                  and Stockholders’ Equity**                                                                                                                                                                                                                                                 |   |                                            |          |                                                                 |   |   |   |
| Current                  Liabilities:                                                                                                                                                                                                                                                                           |   |                                            |          |                                                                 |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                                                               |   | **$**                                           | **430,989**   |                                                                 | $      | 537,338 |   |
| Short-term                  borrowings                                                                                                                                                                                                                                                                          |   |                                            | **480,532**   |                                                                 |   | 514,096 |   |
| Accrued                  expenses                                                                                                                                                                                                                                                                               |   |                                            | **251,335**   |                                                                 |   | 358,301 |   |
| Current                  portion of capital lease                                                                                                                                                                                                                                                               |   |                                            | **15,961**    |                                                                 |   | - |   |
| Current                  portion of deferred revenue                                                                                                                                                                                                                                                            |   |                                            | **73,165**    |                                                                 |   | 32,215 |   |
| Current                  portion of mortgage payable                                                                                                                                                                                                                                                            |   |                                            | **218,943**   |                                                                 |   | 215,394 |   |
| Income                  tax payable                                                                                                                                                                                                                                                                             |   |                                            | **9,160**     |                                                                 |   | 9,160 |   |
| Total                  Current Liabilities                                                                                                                                                                                                                                                                      |   |                                            | **1,480,085** |                                                                 |   | 1,666,504 |   |
| Deferred                  tax liability                                                                                                                                                                                                                                                                         |   |                                            | **261,958**   |                                                                 |   | 261,958**.** |   |
| Long-term                  portion of capital lease                                                                                                                                                                                                                                                             |   |                                            | **47,786**    |                                                                 |   | - |   |
| Long-term                  portion of deferred revenue                                                                                                                                                                                                                                                          |   |                                            | **55,774**    |                                                                 |   | 62,978 |   |
| Long-term                  portion of mortgage payable                                                                                                                                                                                                                                                          |   |                                            | **1,822,126** |                                                                 |   | 1,878,040 |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                              |   |                                            | **3,667,729** |                                                                 |   | 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; 4,728,825 shares                  issued and 4,717,908 shares outstanding as of September 30, 2007                  and                  4,698,825 shares issued and 4,687,908 shares outstanding as June                  30, 2007 |   |                                            | **3,703,815** |                                                                 |   | 3,643,815 |   |
| Contributed                  capital                                                                                                                                                                                                                                                                            |   |                                            | **633,150**   |                                                                 |   | 633,150 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                            |   |                                            | **(907,898**  | **)**                                                                |   | (956,571 | ) |
| Treasury                  stock, 10,917 common shares at cost                                                                                                                                                                                                                                                   |   |                                            | **(6,140**    | **)**                                                                |   | (6,140 | ) |
| Total                  Stockholders’ Equity                                                                                                                                                                                                                                                               |   |                                            | **3,422,927** |                                                                 |   | 3,314,254 |   |
| Total                  Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                               |   | **$**                                           | **7,090,656** |                                                                 | $      | 7,183,734 |   |

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**HYDROMER,      INC. and CONSOLIDATED SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF INCOME**

|                                                                                                                                                                                               |   | Three                Months EndedSeptember                30, |                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------------------|
|                                                                                                                                                                                               |   | **2007****UNAUDITED**                                         |                   | 2006UNAUDITED |   |
| **Revenues**                                                                                                                                                                                       |   |                                                          |                   |   |   |
| Sale                of products                                                                                                                                                                    |   | **$**                                                         | **1,195,703**          |   | $ | 1,208,200 |   |
| Service                revenues                                                                                                                                                                    |   |                                                          | **371,225**            |   |   | 368,480 |   |
| Royalties                and contract revenues                                                                                                                                                     |   |                                                          | **392,285**            |   |   | 451,093 |   |
| **Total                Revenues**                                                                                                                                                                  |   |                                                          | **1,959,213**          |   |   | 2,027,773 |   |
|  **Expenses**                                                                                                                                                                                 |   |                                                          |                   |   |   |   |   |
| Cost                of Sales                                                                                                                                                                       |   |                                                          | **803,491**            |   |   | 847,585 |   |
| Operating                Expenses                                                                                                                                                                  |   |                                                          | **1,074,207**          |   |   | 1,356,879 |   |
| Other                Expenses                                                                                                                                                                      |   |                                                          | **42,842**             |   |   | 43,120 |   |
| Benefit                for Income Taxes                                                                                                                                                            |   |                                                          | **(10,000**            | **)** |   | (68,976 | ) |
|  **Total                Expenses**                                                                                                                                                            |   |                                                          | **1,910,540**          |   |   | 2,178,608 |   |
|  **Net                Income (Loss)**                                                                                                                                                         |   | **$**                                                         | **48,673**             |   | $ | (150,835 | ) |
|  Earnings                (Loss) Per Common Share                                                                                                                                              |   | **$**                                                         | **0.01**               |   | $ | (0.03 | ) |
| Diluted                Earnings (Loss) Per Common Share                                                                                                                                            |   |                                                          | 0.01                   |   |   | n/a |   |
| Weighted                Average Number of   Common                Shares                Outstanding  Common                Shares                Outstanding assuming dilution |   |                                                          | **4,702,365**4,936,365 |   |   | 4,644,164n/a |   |

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**HYDROMER,      INC. and CONSOLIDATED SUBSIDIARY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                                             |   | Three                Months EndedSeptember                30, |               |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------------------|
|                                                                                                                             |   | **2007****UNAUDITED**                                         |               | **2006****UNAUDITED** |   |
| **Cash                Flows From Operating Activities:**                                                                         |   |                                                          |               |   |   |
| Net                Income (Loss)                                                                                                 |   | **$**                                                         | **48,673**         |   | $ | (150,835 | ) |
| Adjustments                to reconcile net income (loss) to net cash provided by (used for)                operating activities |   |                                                          |               |   |   |   |   |
| Depreciation                and amortization                                                                                     |   |                                                          | **95,256**         |   |   | 105,418 |   |
| Deferred                income taxes                                                                                             |   |                                                          | **(10,000**        | **)** |   | - |   |
| Changes                in Assets and Liabilities:                                                                                |   |                                                          |               |   |   |   |   |
| Trade                receivables                                                                                                 |   |                                                          | **144,139**        |   |   | 67,592 |   |
| Inventory                                                                                                                        |   |                                                          | **49,340**         |   |   | 71,278 |   |
| Prepaid                expenses                                                                                                  |   |                                                          | **35,176**         |   |   | 38,160 |   |
| Other                assets                                                                                                      |   |                                                          | **13,230**         |   |   | (734 | ) |
| Accounts                payable and accrued liabilities                                                                          |   |                                                          | **(213,315**       | **)** |   | (187,857 | ) |
| Deferred                income                                                                                                   |   |                                                          | **33,746**         |   |   | (48,534 | ) |
| Income                taxes payable                                                                                              |   |                                                          | -                  |   |   | (32,219 | ) |
|  Net                Cash Provided by (Used for) Operating Activities                                                        |   |                                                          | **196,245**        |   |   | (137,731 | ) |
|                                                                                                                             |   |                                                          |               |   |   |   |   |
|  **Cash                Flows From Investing Activities:**                                                                   |   |                                                          |               |   |   |   |   |
| Cash                purchases of property and equipment                                                                          |   |                                                          | **(109,336**       | **)** |   | (24,273 | ) |
| Cash                payments on patents and trademarks                                                                           |   |                                                          | **(32,112**        | **)** |   | (74,168 | ) |
|  Net                Cash Used for Investing Activities                                                                      |   |                                                          |  **(141,448** |  **)** |   | (98,441 | ) |
|                                                                                                                             |   |                                                          |               |   |   |   |   |
| **Cash                Flows From Financing Activities:**                                                                         |   |                                                          |               |   |   |   |   |
| Net                (repayments) borrowings against Line of Credit                                                                |   |                                                          | **(33,564**        | **)** |   | 55,717 |   |
| Borrowings                under Capital Lease                                                                                    |   |                                                          | **63,747**         |   |   | - |   |
| Repayment                of long-term borrowings                                                                                 |   |                                                          | **(52,365**        | **)** |   | (49,033 | ) |
| Proceeds                from the issuance of common stock and options                                                            |   |                                                          | **60,000**         |   |   | - |   |
|  Net                Cash Provided by Financing Activities                                                                   |   |                                                          | **37,818**         |   |   | 6,684 |   |
|                                                                                                                             |   |                                                          |               |   |   |   |   |
| **Net                Increase (Decrease) in Cash and Cash Equivalents:**                                                         |   |                                                          | **92,615**         |   |   | (229,488 | ) |
| Cash                and Cash Equivalents at Beginning of Period                                                                  |   |                                                          | **146,338**        |   |   | 434,865 |   |
| Cash                and Cash Equivalents at End of Period                                                                        |   | **$**                                                         | **238,953**        |   | $ | 205,377 |   |

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**HYDROMER,      INC. and CONSOLIDATED SUBSIDIARY**

|                                                            |   | Polymer                Research |      | Medical                Products |   | Corporate                Overhead |   |  Total |     |
|-----------------------------------------------------------------|--------|---------------------------------|-----------|---------------------------------|--------|-----------------------------------|--------|-------------|----------|
| 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 |   |
|                                                            |   |                            |      |                            |   |                              |   |        |     |   |   |   |   |
| 2006                                                            |   |                            |      |                            |   |                              |   |        |     |   |   |   |   |
| Revenues                                                        |   | $                               | 1,034,620 |                            | $      | 993,153                           |   |        |          |   | $ | 2,027,773 |   |
| Expenses                                                        |   |                            | (971,011  | )                               |   | (907,264                          | )      | $           | (369,309 | ) |   | (2,247,584 | ) |
|   Pre-tax                Income                (Loss) |   | $                               | 63,609    |                            | $      | 85,889                            |   | $           | (369,309 | ) | $ | (219,811 | ) |
|                                                            |   |                            |      |                            |   |                              |   |        |     |   |   |   |   |

|     | 2007 | 2006 |
|----------|------|------|
| Domestic | 80%  | 86%  |
| Foreign  | 20%  | 14%  |

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**Item      #2**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF THE**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

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**Item      # 3**

**PART      II - Other Information**

**Item        # 2.**

**Item      # 6.**

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

| b)   | Reports                on form 8-K - The Company filed four Form 8-K’s during the quarter ending                September 30, 2007. Each 8-K reported press releases issued by the                Company                on new Coating Services, Supply and/or Support                Agreements. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|   |   | HYDROMER,                INC.                                                                |
|--------|--------|----------------------------------------------------------------------------------------------|
|   |   |                                                                                         |
|   |   |                                                                                         |
|   |   | /s/                Robert Y. Lee           |
|   |   | Robert                Y. Lee                                                                 |
|   |   | Chief                Financial Officer                                                       |

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