---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

Form 10-Q

(Mark One)

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2008

or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to:
_______________

Commission File Number: 000-49833

ACRONGENOMICS INC.(Exact
name of registrant as specified in its charter)

|Nevada                                                               | 52-2219285                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)

14 Rue Kleberg, CH-1201 Geneva,
Switzerland(Address of principal executive offices) (Zip code)

+41 2271 65 300(Registrants telephone number,
including area code)

N/A(Former name, former address and former
fiscal year, if changed since last report)

Indicate by check mark whether the registrant (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 reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ x ] No [ ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

|Large accelerated filer [ ] |                                                     | Accelerated filer [ ]          
|--------------------------- | --------------------------------------------------- | -------------------------------
|Non-accelerated filer [ ]   | (Do not check if a smaller
      reporting company) | Smaller reporting company [ x ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).Yes [ ] No [ x ]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date:
21,496,481 common shares issued and outstanding as of August 12,
2008.

---

1

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

Our financial statements are stated in United States dollars
and are prepared in accordance with United States generally accepted accounting
principles.

It is the opinion of management that the unaudited financial
statements for the quarter ended June 30, 2008 include all adjustments necessary
in order to ensure that the audited financial statements are not misleading.

---

- 2 -



ACRONGENOMICS, INC.

(A Development Stage Company)

INTERIM FINANCIAL STATEMENTS

June 30, 2008

(Stated in US Dollars)

(Unaudited)

---

|- 3 -                              
|-----------------------------------
|                                   
|                                   
|ACRONGENOMICS, INC.                
|(A Development Stage Company)      
|INTERIM BALANCE SHEETS             
|June 30, 2008 and December 31, 2007
|(Stated in US Dollars)             
|(Unaudited)                        

|                                                               |   | June 30,    |   |   | December 31, |  
|-------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|ASSETS                                                         |   | 2008        |   |   | 2007         |  
|                                                               |   |             |   |   |              |  
|Current                                                        |   |             |   |   |              |  
|Cash                                                           | $ | 56,553      |   | $ | 343,695      |  
|Prepaid expenses and
      deposit  Note 9                    |   | 100,053     |   |   | 22,280       |  
|                                                               |   |             |   |   |              |  
|                                                               |   | 156,606     |   |   | 365,975      |  
|Long-term investment  Note 3 and 8                            |   | 1,097,639   |   |   | -            |  
|                                                               |   |             |   |   |              |  
|                                                               | $ | 1,254,245   |   | $ | 365,975      |  
|                                                               |   |             |   |   |              |  
|LIABILITIES                                                    |   |             |   |   |              |  
|                                                               |   |             |   |   |              |  
|Current                                                        |   |             |   |   |              |  
|Accounts payable and
      accrued liabilities Note 5         | $ | 589,710     |   | $ | 1,613,170    |  
|Notes payable  Note 4                                         |   | 614,769     |   |   |              |  
|Loans payable  Note 6                                         |   | 1,000       |   |   | 1,000        |  
|                                                               |   |             |   |   |              |  
|                                                               |   | 1,205,479   |   |   | 1,614,170    |  
|                                                               |   |             |   |   |              |  
|STOCKHOLDERS DEFICIENCY                                       |   |             |   |   |              |  
|                                                               |   |             |   |   |              |  
|Common stock, $0.001 par value  Notes 4,
      7, 8, 9 and 10 |   |             |   |   |              |  
|100,000,000 shares authorized                                  |   |             |   |   |              |  
|21,206,481 shares issued (2007: 17,866,471)                    |   | 21,206      |   |   | 17,866       |  
|Additional paid-in capital                                     |   | 18,093,870  |   |   | 14,508,056   |  
|Share subscriptions receivable  Note 7                        |   | -           |   |   | (3,300       | )
|Shares subscribed  Note 7                                     |   | 50,000      |   |   | -            |  
|Deficit accumulated during the development
      stage         |   | (18,116,310 | ) |   | (15,770,817  | )
|                                                               |   |             |   |   |              |  
|                                                               |   | 48,766      |   |   | (1,248,195   | )
|                                                               |   |             |   |   |              |  
|                                                               | $ | 1,254,245   |   | $ | 365,975      |  

SEE ACCOMPANYING NOTES

---

|- 4 -                                                                       
|----------------------------------------------------------------------------
|                                                                            
|                                                                            
|ACRONGENOMICS, INC.                                                         
|(A Development Stage Company)                                               
|INTERIM STATEMENTS OF OPERATIONS                                            
|for the three and six months ended June 30, 2008 and June
      30, 2007 and
|for the period August 17, 1999 (Date of Inception) to
      June 30, 2008   
|(Stated in US Dollars)                                                      
|(Unaudited)                                                                 

|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   | August 17,    |  
|--------------------------------------------------- | - | ------------------ | - | - | ---------------- | - | - | ------------- | - | - | ---------- | - | - | ------------- | -
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   | 1999 (Date of |  
|                                                    |   | Three Months Ended |   |   | Six Months Ended |   |   | Inception) to |  
|                                                    |   | June 30,           |   |   | June 30,         |   |   | June 30,      |  
|                                                    |   | 2008               |   |   | 2007             |   |   | 2008          |   |   | 2007       |   |   | 2008          |  
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   | (Cumulative)  |  
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Expenses                                            |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Accounting and audit fees  Note 5                  | $ | 19,426             |   | $ | 19,898           |   | $ | 85,995        |   | $ | 57,703     |   | $ | 469,348       |  
|Amortization of patents                             |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | 741,430       |  
|Appraisals                                          |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | 14,500        |  
|Bank charges                                        |   | 630                |   |   | 1,047            |   |   | 2,418         |   |   | 1,450      |   |   | 15,100        |  
|Consulting fees  Notes 5, 7 and 9                  |   | 347,470            |   |   | 49,500           |   |   | 485,910       |   |   | 96,900     |   |   | 2,327,814     |  
|Interest on notes
      payable  Notes 4 and 5     |   | 170,697            |   |   | -                |   |   | 170,697       |   |   | -          |   |   | 170,697       |  
|Legal fees  Note 5                                 |   | 6,123              |   |   | 7,480            |   |   | 35,209        |   |   | 16,811     |   |   | 291,204       |  
|Management fees  Notes
      5, 7 and 9            |   | 367,148            |   |   | 121,677          |   |   | 821,658       |   |   | 176,001    |   |   | 3,530,836     |  
|Office and miscellaneous                            |   | 2,075              |   |   | 3,358            |   |   | 3,964         |   |   | 8,139      |   |   | 102,689       |  
|Rent  Note 5                                       |   | 15,279             |   |   | -                |   |   | 27,883        |   |   | -          |   |   | 76,648        |  
|Research and development  Note 5                   |   | -                  |   |   | 598,645          |   |   | 648,407       |   |   | 598,645    |   |   | 9,202,266     |  
|Transfer agent and
      filing fees                |   | 1,775              |   |   | 2,078            |   |   | 3,358         |   |   | 2,078      |   |   | 29,688        |  
|Travel                                              |   | 11,648             |   |   | 2,485            |   |   | 62,446        |   |   | 6,583      |   |   | 393,515       |  
|Write down of patents                               |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | 8,004,447     |  
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Operating loss                                      |   | (942,271           | ) |   | (806,168         | ) |   | (2,353,047    | ) |   | (964,310   | ) |   | (25,949,678   | )
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Interest income                                     |   | -                  |   |   | 136              |   |   | 180           |   |   | 142        |   |   | 23,118        |  
|Foreign exchange gain                               |   | 4,734              |   |   | 1,067            |   |   | 7,374         |   |   | 1,061      |   |   | 12,248        |  
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Loss from continuing operations                     |   | (937,537           | ) |   | (804,965         | ) |   | (2,345,493    | ) |   | (963,107   | ) |   | (25,914,312   | )
|Loss from discontinued operations                   |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | (41,998       | )
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Net loss                                            | $ | (937,537           | ) | $ | (804,965         | ) | $ | (2,345,493    | ) | $ | (963,107   | ) | $ | (25,956,310   | )
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Basic and diluted loss per share 
      continuing |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|operations                                          | $ | (0.05              | ) | $ | (0.00            | ) | $ | (0.12         | ) | $ | (0.07      | ) |   |               |  
|                                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |               |  
|Weighted average shares outstanding                 |   | 20,765,272         |   |   | 15,230,513       |   |   | 20,042,028    |   |   | 14,768,687 |   |   |               |  

SEE ACCOMPANYING NOTES

---

|- 5 -                                                                   
|------------------------------------------------------------------------
|ACRONGENOMICS, INC.                                                     
|(A Development Stage Company)                                           
|INTERIM STATEMENTS OF CASH FLOWS                                        
|for the six months ended June 30 2008 and 2007 and                      
|for the period August 17, 1999 (Date of Inception) to
      June 30,2008
|(Stated in US Dollars)                                                  
|(Unaudited)                                                             

|                                                                      |   |                  |   |   |               |   |   | August 17,    |  
|--------------------------------------------------------------------- | - | ---------------- | - | - | ------------- | - | - | ------------- | -
|                                                                      |   |                  |   |   |               |   |   | 1999 (Date of |  
|                                                                      |   | Six Months Ended |   |   | Inception) to |  
|                                                                      |   | June 30,         |   |   | June 30,      |  
|                                                                      |   | 2008             |   |   | 2007          |   |   | 2008          |  
|                                                                      |   |                  |   |   |               |   |   | (Cumulative)  |  
|Cash Flows used in Operating
      Activities                         |   |                  |   |   |               |   |   |               |  
|Loss from continuing operations                                       | $ | (2,345,493       | ) | $ | (963,107      | ) | $ | (25,914,312   | )
|Items not
      affecting cash:                                       |   |                  |   |   |               |   |   |               |  
|Amortization                                                          |   | -                |   |   | -             |   |   | 741,430       |  
|Shares issued to settle accounts payable                              |   | -                |   |   | -             |   |   | 626,000       |  
|Shares
      issued as signing bonus                                  |   | 908,500          |   |   | -             |   |   | 1,553,500     |  
|Shares issued for services                                            |   | 493,375          |   |   | -             |   |   | 493,375       |  
|Stock-based
      compensation                                        |   | 365,743          |   |   | 116,001       |   |   | 1,792,668     |  
|Interest on notes payable                                             |   | 170,697          |   |   | -             |   |   | 170,697       |  
|Write-down
      of patents                                           |   | -                |   |   | -             |   |   | 8,004,447     |  
|Changes in
      non-cash working capital items:                      |   |                  |   |   |               |   |   |               |  
|Prepaid
      expenses and deposit                                    |   | 5,352            |   |   | (459,425      | ) |   | (16,928       | )
|Accounts payable and accrued liabilities                              |   | (534,121         | ) |   | 97,052        |   |   | 1,079,049     |  
|                                                                      |   |                  |   |   |               |   |   |               |  
|Net cash used in operating activities                                 |   | (935,947         | ) |   | (1,209,479    | ) |   | (11,470,074   | )
|                                                                      |   |                  |   |   |               |   |   |               |  
|Cash Flows used in Investing Activity                                 |   |                  |   |   |               |   |   |               |  
|Long-term investment                                                  |   | (1,097,639       | ) |   | -             |   |   | (1,097,639    | )
|Patents                                                               |   | -                |   |   | -             |   |   | (121,877      | )
|                                                                      |   |                  |   |   |               |   |   |               |  
|Net cash used in investing activities                                 |   | (1,097,639       | ) |   | -             |   |   | (1,219,516    | )
|                                                                      |   |                  |   |   |               |   |   |               |  
|Cash Flows provided by Financing
      Activities                     |   |                  |   |   |               |   |   |               |  
|Common stock issued for cash                                          |   | 999,009          |   |   | 1,223,103     |   |   | 11,669,399    |  
|Stock purchase
      warrants                                         |   | -                |   |   | -             |   |   | 370,307       |  
|Increase in loan payable                                              |   | -                |   |   | -             |   |   | 1,000         |  
|Issuance of
      notes payable                                       |   | 694,136          |   |   | -             |   |   | 694,136       |  
|Shares subscriptions                                                  |   | 53,300           |   |   | -             |   |   | 53,300        |  
|Advances from/to
      discontinued operations of disposed subsidiary |   | -                |   |   | -             |   |   | (41,998       | )
|                                                                      |   |                  |   |   |               |   |   |               |  
|Net cash provided by financing
      activities                       |   | 1,746,444        |   |   | 1,223,103     |   |   | 12,746,143    |  
|                                                                      |   |                  |   |   |               |   |   |               |  
|Increase (decrease) in cash during
      the period                   |   | (287,142         | ) |   | 13,624        |   |   | 56,553        |  
|                                                                      |   |                  |   |   |               |   |   |               |  
|Cash, beginning of period                                             |   | 343,695          |   |   | 4,552         |   |   | -             |  
|                                                                      |   |                  |   |   |               |   |   |               |  
|Cash, end of period                                                   | $ | 56,553           |   | $ | 18,176        |   | $ | 56,553        |  
|                                                                      |   |                  |   |   |               |   |   |               |  
|Non-cash Transactions  Note 9                                        |   |                  |   |   |               |   |   |               |  

SEE ACCOMPANYING NOTES

---

|- 7 -                                                                    
|-------------------------------------------------------------------------
|                                                                         
|                                                                         
|ACRONGENOMICS, INC.                                                      
|(A Development Stage Company)                                            
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                  
|For the period August 17, 1999 (Date of Inception) to
      June 30, 2008
|(Stated in US Dollars)                                                   
|(Unaudited)                                                              

|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   | Deficit     |   |   |             |  
|------------------------------------- |  | ----------- |  |  | ------------ |  | - | ------ |  | - | ----------- | - | - | ------------- |  | - | ----------- | - | - | ----------- | -
|                                      |  |             |  |  | Common Stock |  |   |        |  |   | Accumulated |   |   |               | 
|                                      |  |             |  |  |              |  |   |        |  |   | Additional  |   |   |               |  |   | During the  |   |   |             |  
|                                      |  |             |  |  |              |  |   | Par    |  |   | Paid-in     |   |   | Stock         |  |   | Development |   |   | Contributed |  
|                                      |  |             |  |  | Number       |  |   | Value  |  |   | Capital     |   |   | Subscriptions |  |   | Stage       |   |   | Total       |  
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Capital stock issued for cash         |  | - at $0.001 |  |  | 5,000,000    |  | $ | 5,000  |  | $ | -           |   | $ | -             |  | $ | -           |   | $ | 5,000       |  
|                                      |  | - at $0.01  |  |  | 5,000,000    |  |   | 5,000  |  |   | 45,000      |   |   | -             |  |   | -           |   |   | 50,000      |  
|Net loss for the period               |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (2,116      | ) |   | (2,116      | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 1999            |  |             |  |  | 10,000,000   |  |   | 10,000 |  |   | 45,000      |   |   | -             |  |   | (2,116      | ) |   | 52,884      |  
|Capital stock issued for cash         |  | - at $0.20  |  |  | 100,000      |  |   | 100    |  |   | 19,900      |   |   | -             |  |   | -           |   |   | 20,000      |  
|Net loss for the year                 |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (8,176      | ) |   | (8,176      | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 2000            |  |             |  |  | 10,100,000   |  |   | 10,100 |  |   | 64,900      |   |   | -             |  |   | (10,292     | ) |   | 64,708      |  
|Net loss for the year                 |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (205        | ) |   | (205        | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 2001            |  |             |  |  | 10,100,000   |  |   | 10,100 |  |   | 64,900      |   |   | -             |  |   | (10,497     | ) |   | 64,503      |  
|Capital stock issued for cash         |  | - at $0.20  |  |  | 15,000       |  |   | 15     |  |   | 2,985       |   |   | -             |  |   | -           |   |   | 3,000       |  
|Net loss for the year                 |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (24,818     | ) |   | (24,818     | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 2002            |  |             |  |  | 10,115,000   |  |   | 10,115 |  |   | 67,885      |   |   | -             |  |   | (35,315     | ) |   | 42,685      |  
|Net loss for the year                 |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (21,576     | ) |   | (21,576     | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 2003            |  |             |  |  | 10,115,000   |  |   | 10,115 |  |   | 67,885      |   |   | -             |  |   | (56,891     | ) |   | 21,109      |  
|Pursuant to the acquisition of patent |  | - at $1.96  |  |  | 4,000,000    |  |   | 4,000  |  |   | 7,836,000   |   |   | -             |  |   | -           |   |   | 7,840,000   |  
|Capital stock issued for patent       |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|commission                            |  | - at $1.96  |  |  | 400,000      |  |   | 400    |  |   | 783,600     |   |   | -             |  |   | -           |   |   | 784,000     |  
|Capital stock issued for cash         |  | - at $1.00  |  |  | 420,000      |  |   | 420    |  |   | 419,580     |   |   | -             |  |   | -           |   |   | 420,000     |  
|Capital stock issued for commission   |  | - at $1.00  |  |  | 42,000       |  |   | 42     |  |   | 41,958      |   |   | -             |  |   | -           |   |   | 42,000      |  
|Less: commission                      |  |             |  |  | -            |  |   | -      |  |   | (42,000     | ) |   | -             |  |   | -           |   |   | (42,000     | )
|commission                            |  |             |  |  | -            |  |   | -      |  |   | (35,000     | ) |   | -             |  |   | -           |   |   | (35,000     | )
|Capital stock issued for cash         |  | - at $2.30  |  |  | 537,956      |  |   | 538    |  |   | 1,236,761   |   |   | -             |  |   | -           |   |   | 1,237,299   |  
|Capital stock issued for commission   |  |             |  |  | 50,594       |  |   | 50     |  |   | 116,316     |   |   | -             |  |   | -           |   |   | 116,366     |  
|Less: commission                      |  |             |  |  | -            |  |   | -      |  |   | (116,366    | ) |   | -             |  |   | -           |   |   | (116,366    | )
|Capital contribution                  |  |             |  |  | -            |  |   | -      |  |   | 6,000       |   |   | -             |  |   | -           |   |   | 6,000       |  
|Stock subscriptions                   |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | 426,329       |  |   | -           |   |   | 426,329     |  
|Net loss for the year                 |  |             |  |  | -            |  |   | -      |  |   | -           |   |   | -             |  |   | (1,863,376  | ) |   | (1,863,376  | )
|                                      |  |             |  |  |              |  |   |        |  |   |             |   |   |               |  |   |             |   |   |             |  
|Balance, December 31, 2004            |  |             |  |  | 15,565,550   |  |   | 15,565 |  |   | 10,314,734  |   |   | 426,329       |  |   | (1,920,267  | ) |   | 8,836,361   |  

/contd

SEE ACCOMPANYING NOTES

---

|- 8 -                                                                    
|-------------------------------------------------------------------------
|                                                                         
|                                                                         
|Continued                                                                
|ACRONGENOMICS, INC.                                                      
|(A Development Stage Company)                                            
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                  
|For the period August 17, 1999 (Date of Inception) to
      June 30, 2008
|(Stated in US Dollars)                                                   
|(Unaudited)                                                              

|                                 |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  | Deficit     |   |  |             |  
|-------------------------------- |  | ---------- |  |  | ------------ | - |  | --------------- | - |  | ----------- | - |  | ------------- | - |  | ----------- | - |  | ----------- | -
|                                 |  |            |  |  | Common Stock |   |  |                 |   |  | Accumulated |   |  |               |  
|                                 |  |            |  |  |              |   |  |                 |   |  | Additional  |   |  |               |   |  | During the  |   |  |             |  
|                                 |  |            |  |  |              |   |  |                 |   |  | Paid-in     |   |  | Stock         |   |  | Development |   |  | Contributed |  
|                                 |  |            |  |  | Number       |   |  | Par
      Value |   |  | Capital     |   |  | Subscriptions |   |  | Stage       |   |  | Total       |  
|                                 |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|Balance, December 31, 2004       |  |            |  |  | 15,565,550   |   |  | 15,565          |   |  | 10,314,734  |   |  | 426,329       |   |  | (1,920,267  | ) |  | 8,836,361   |  
|Capital stock issued for cash    |  | - at $2.30 |  |  | 72,500       |   |  | 73              |   |  | 166,677     |   |  | -             |   |  | -           |   |  | 166,750     |  
|                                 |  | - at $2.40 |  |  | 108,168      |   |  | 108             |   |  | 259,495     |   |  | -             |   |  | -           |   |  | 259,603     |  
|                                 |  | - at $3.50 |  |  | 551,443      |   |  | 551             |   |  | 1,929,499   |   |  | -             |   |  | -           |   |  | 1,930,050   |  
|                                 |  | - at $4.00 |  |  | 915,125      |   |  | 915             |   |  | 3,659,585   |   |  | (386,329      | ) |  | -           |   |  | 3,274,171   |  
|Capital stock issued for         |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|commission                       |  | - at $4.00 |  |  | 81,337       |   |  | 82              |   |  | 325,266     |   |  | -             |   |  | -           |   |  | 325,348     |  
|Less: commission                 |  |            |  |  | -            |   |  | -               |   |  | (325,348    | ) |  | -             |   |  | -           |   |  | (325,348    | )
|commission                       |  |            |  |  | -            |   |  | -               |   |  | (24,900     | ) |  | -             |   |  | -           |   |  | (24,900     | )
|Capital stock issued for cash    |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|pursuant to exercise of warrants |  | - at $1.00 |  |  | 420,000      |   |  | 420             |   |  | 419,580     |   |  | -             |   |  | -           |   |  | 420,000     |  
|Stock-based compensation         |  |            |  |  | -            |   |  | -               |   |  | 364,000     |   |  | -             |   |  | -           |   |  | 364,000     |  
|Capital stock issued for         |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|consulting services              |  | - at $4.68 |  |  | 100,000      |   |  | 100             |   |  | 467,900     |   |  | -             |   |  | -           |   |  | 468,000     |  
|Net loss from continuing         |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|operations                       |  |            |  |  | -            |   |  | -               |   |  | -           |   |  | -             |   |  | (14,152,210 | ) |  | (14,152,210 | )
|Capital contribution from        |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|subsidiary on disposition        |  |            |  |  | -            |   |  | -               |   |  | (6,000      | ) |  | -             |   |  | -           |   |  | (6,000      | )
|Net loss from discontinued       |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|operations                       |  |            |  |  | -            |   |  | -               |   |  | -           |   |  | -             |   |  | (1,935      | ) |  | (1,935      | )
|                                 |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|Balance, December 31, 2005       |  |            |  |  | 17,814,123   |   |  | 17,814          |   |  | 17,550,488  |   |  | 40,000        |   |  | (16,074,412 | ) |  | 1,533,890   |  
|Cancellation of shares           |  |            |  |  | (4,000,000   | ) |  | (4,000          | ) |  | (7,836,000  | ) |  | -             |   |  | 7,840,000   |   |  | -           |  
|Stock-based compensation         |  |            |  |  | -            |   |  | -               |   |  | 529,673     |   |  | -             |   |  | -           |   |  | 529,673     |  
|Capital stock issued for cash    |  | - at $0.75 |  |  | 317,334      |   |  | 317             |   |  | 237,683     |   |  | -             |   |  | -           |   |  | 238,000     |  
|Less: share issue costs          |  |            |  |  | -            |   |  | -               |   |  | (6,300      | ) |  | -             |   |  | -           |   |  | (6,300      | )
|Net loss for the year            |  |            |  |  | -            |   |  | -               |   |  | -           |   |  | -             |   |  | (2,480,288  | ) |  | (2,480,288  | )
|                                 |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|Balance, December 31, 2006       |  |            |  |  | 14,131,457   |   |  | 14,131          |   |  | 10,475,544  |   |  | 40,000        |   |  | (10,714,700 | ) |  | (185,025    | )
|Capital stock issued for cash:   |  | - at $0.50 |  |  | 220,000      |   |  | 220             |   |  | 109,780     |   |  | (40,000       | ) |  | -           |   |  | 70,000      |  
|                                 |  | - at $0.80 |  |  | 250,000      |   |  | 250             |   |  | 199,750     |   |  | -             |   |  | -           |   |  | 200,000     |  
|                                 |  | - at $1.10 |  |  | 2,230,924    |   |  | 2,231           |   |  | 2,451,785   |   |  | (3,300        | ) |  | -           |   |  | 2,450,716   |  
|Capital stock issued for         |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|commission:                      |  | - at $0.50 |  |  | 22,000       |   |  | 22              |   |  | 10,978      |   |  | -             |   |  | -           |   |  | 11,000      |  
|                                 |  | - at $0.75 |  |  | 20,000       |   |  | 20              |   |  | 14,980      |   |  | -             |   |  | -           |   |  | 15,000      |  
|                                 |  | - at $1.10 |  |  | 84,090       |   |  | 84              |   |  | 92,415      |   |  | -             |   |  | -           |   |  | 92,499      |  
|Less: commission  cash          |  |            |  |  | -            |   |  | -               |   |  | (64,021     | ) |  | -             |   |  | -           |   |  | (64,021     | )
|commission  stock               |  |            |  |  | -            |   |  | -               |   |  | (118,499    | ) |  | -             |   |  |             |   |  | (118,499    | )
|Stock as bonus                   |  | - at $0.86 |  |  | 750,000      |   |  | 750             |   |  | 644,250     |   |  | -             |   |  | -           |   |  | 645,000     |  
|Stock issued to settle accounts  |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|payable                          |  | - at $1.00 |  |  | 158,000      |   |  | 158             |   |  | 157,842     |   |  |               |   |  |             |   |  | 158,000     |  
|Stock-based compensation         |  |            |  |  | -            |   |  | -               |   |  | 533,252     |   |  | -             |   |  | -           |   |  | 533,252     |  
|Net loss for the year            |  |            |  |  | -            |   |  | -               |   |  | -           |   |  | -             |   |  | (5,056,117  | ) |  | (5,056,117  | )
|                                 |  |            |  |  |              |   |  |                 |   |  |             |   |  |               |   |  |             |   |  |             |  
|Balance, December 31, 2007       |  |            |  |  | 17,866,471   |   |  | 17,866          |   |  | 14,508,056  |   |  | (3,300        | ) |  | (15,770,817 | ) |  | (1,248,195  | )

/contd

SEE ACCOMPANYING NOTES

---

|- 9 -                                                                    
|-------------------------------------------------------------------------
|                                                                         
|                                                                         
|Continued                                                                
|ACRONGENOMICS, INC.                                                      
|(A Development Stage Company)                                            
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                  
|For the period August 17, 1999 (Date of Inception) to
      June 30, 2008
|(Stated in US Dollars)                                                   
|(Unaudited)                                                              

|                               |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   | Deficit     |            |   |             | 
|------------------------------ |  | ---------- | ---------- |  | ------------ | ------ |  | --------------- | ---------- | - | ----------- | ------ | - | ------------- | ----------- | - | ----------- | ---------- | - | ----------- | 
|                               |  |            |            |  | Common Stock |        |  |                 |            |   | Accumulated |        |   |               |            
|                               |  |            |            |  |              |        |  |                 |            |   | Additional  |        |   |               |             |   | During the  |            |   |             | 
|                               |  |            |            |  |              |        |  |                 |            |   | Paid-in     |        |   | Stock         |             |   | Development |            |   | Contributed | 
|                               |  |            |            |  | Number       |        |  | Par
      Value |            |   | Capital     |        |   | Subscriptions |             |   | Stage       |            |   | Total       | 
|                               |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   |             |            |   |             | 
|Balance, December 31, 2007     |  |            | 17,866,471 |  |              | 17,866 |  |                 | 14,508,056 |   |             | (3,300 | ) |               | (15,770,817 | ) |             | (1,248,195 | )
|Stock subscription received    |  |            |            |  |              |        |  |                 |            |   |             | 3,300  |   |               |             |   |             | 3,300      |  
|Capital stock issued for cash: |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   |             |            |  
|                               |  | - at $0.80 |            |  | 1,250,010    |        |  | 1,250           |            |   | 998,758     |        |   | -             |             |   | -           |            |   | 1,000,008   | 
|                               |  | - at $1.10 |            |  | 90,000       |        |  | 90              |            |   | 98,910      |        |   | -             |             |   | -           |            |   | 99,000      | 
|Capital stock issued for       |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   |             |            |  
|services:                      |  | - at $0.95 |            |  | 300,000      |        |  | 300             |            |   | 284,700     |        |   | -             |             |   | -           |            |   | 285,000     | 
|                               |  | - at $0.79 |            |  | 1,150,000    |        |  | 1,150           |            |   | 907,350     |        |   | -             |             |   | -           |            |   | 908,500     | 
|                               |  | - at $0.53 |            |  | 550,000      |        |  | 550             |            |   | 290,950     |        |   | -             |             |   | -           |            |   | 291,500     | 
|Less: commission  cash        |  |            | -          |  |              | -      |  |                 | (100,000   | ) |             | -      |   |               | -           |   |             | (100,000   | )
|Stock-based compensation       |  |            | -          |  |              | -      |  |                 | 365,743    |   |             | -      |   |               | -           |   |             | 365,743    |  
|Convertible notes  Note 4     |  |            | -          |  |              | -      |  |                 | 247,654    |   |             | -      |   |               | -           |   |             | 247,654    |  
|Stock subscriptions  Note 4   |  |            | -          |  |              | -      |  |                 | -          |   |             | 50,000 |   |               | -           |   |             | 50,000     |  
|Shareholder contribution       |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   |             |            |  
|- Note 8                       |  |            |            |  | -            |        |  | -               |            |   | 491,749     |        |   | -             |             |   | -           |            |   | 491,749     | 
|Net loss for the period        |  |            | -          |  |              | -      |  |                 | -          |   |             | -      |   |               | (2,345,493  | ) |             | (2,345,493 | )
|                               |  |            |            |  |              |        |  |                 |            |   |             |        |   |               |             |   |             |            |   |             | 
|Balance, June 30, 2008         |  |            | 21,206,481 |  | $            | 21,206 |  | $               | 18,093,870 |   | $           | 50,000 |   | $             | (18,116,310 | ) | $           | 48,766     |  

SEE ACCOMPANYING NOTES

---

|- 10 -                                   
|-----------------------------------------
|                                         
|                                         
|ACRONGENOMICS, INC.                      
|(A Development Stage Company)            
|NOTES TO THE INTERIM FINANCIAL STATEMENTS
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)                              

|Note 1 | Interim Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | While the information presented in the accompanying
      interim six months financial statements is unaudited, it includes all
      adjustments which are, in the opinion of management, necessary to present
      fairly the financial position, results of operations and cash flows for
      the interim periods presented in accordance with accounting principles
      generally accepted in the United States of America. These interim
      financial statements follow the same accounting policies and methods of
      their application as the Companys December 31, 2007 annual financial
      statements. All adjustments are of a normal recurring nature. It is
      suggested that these interim financial statements be read in conjunction
      with the Companys December 31, 2007 annual financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Note 2 | Nature of Operations and Ability to Continue as a
      Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | The Company was incorporated in the State of Nevada, USA
      on August 17, 1999 as Cellway Ventures Inc. Effective February 25, 2004,
      the Company changed its name to Acrongenomics, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | The Company is in the development stage. The
      Companys business is research and development in the field of life
      science including BioLED technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | These interim financial statements have been prepared in
      accordance with generally accepted accounting principles applicable to a
      going concern, which assumes that the Company will be able to meet its
      obligations and continue its operations for its next twelve months.
      Realization values may be substantially different from carrying values as
      shown and these financial statements do not give effect to adjustments
      that would be necessary to the carrying values and classification of
      assets and liabilities should the Company be unable to continue as a going
      concern. At June 30, 2008, the Company had not yet achieved profitable
      operations, has accumulated losses of $18,116,310 since its inception, has
      a working capital deficiency of $1,048,873 and expects to incur further
      losses in the development of its business, all of which casts substantial
      doubt about the Companys ability to continue as a going concern. The
      Companys ability to continue as a going concern is dependent upon its
      ability to generate future profitable operations and/or to obtain the
      necessary financing to meet its obligations and repay its liabilities
      arising from normal business operations when they come due. Management has
      no formal plan in place to address this concern but considers that the
      Company will be able to obtain additional funds by equity financing and/or
      related party advances, however there is no assurance of additional
      funding being available.

---

- 11 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 2                     

|Note 3 | Long-Term Investment Note 8
|------ | ----------------------------

On January 31, 2008, by a Heads of
Terms agreement dated in November 2007 and amended February 1, 2008, the Company
acquired 10.9% of the share capital of Molecular Vision Ltd., a UK Company, for
$1,097,639 (GBP£550,000). Molecular specializes in the development of
miniaturized Point of Care medical diagnostic devices.

|Note 4 | Notes Payable
|------ | -------------

| | a) | On June 12, 2008 the Company was loaned $394,136 by a
      director of the Company by the issuance of a convertible promissory note,
      payable on demand, with interest accruing on the balance of principal
      outstanding at 8% per annum, compounded monthly and payable monthly. The
      note may be converted into common shares of the Company at any time and at
      the option of the lender at the rate of $0.40 per unit. Each unit will
      consist of one common share and one share purchase warrant exercisable at
      $0.75 per share for a period of two years from the date of issuance. The
      note is secured by an interest in all property of the company.                   
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | b) | On June 17, 2008 the Company was loaned $300,000 by the
      issuance of a convertible promissory note, maturing on September 30, 2008,
      with interest accruing on the balance of principal outstanding at 8% per
      annum, compounded monthly and payable monthly. The note may be converted
      into common shares of the Company at any time and at the option of the
      lender at the rate of $0.40 per unit. Each unit will consist of one common
      share and one share purchase warrant exercisable at $0.75 for a period of
      two years from the date of issuance. The note is secured by an interest in
      all property of the Company and a further guarantee by a third
    party.

An amount of $247,654 has been
recorded in additional paid-in capital at June 30, 2008, for the fair value of
the beneficial conversion feature of the notes, $168,287 has been amortized into
income as interest on notes payable and $79,367 is the discount remaining on the
notes.

|Note 5 | Related Party Transactions Notes 4, 7
      and 8
|------ | --------------------------------------------------

The Company incurred the following
charges with companies with a common director and former director, an officer
and director of a company of which a former officer and director is the spouse
of the Companys president; the research and development expenditures were paid
to a company in which a former officer and director of the Company is the spouse
of the Companys former president:

---

- 12 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 3                     

|Note 5 | Related Party Transactions Notes 4, 7
      and 8  (contd)
|------ | -------------------------------------------------------------

| |                           |   |                    |  |   |                  |  |   |               |  |   |         |  |   | August 17,    | 
| | ------------------------- | - | ------------------ |  | - | ---------------- |  | - | ------------- |  | - | ------- |  | - | ------------- | 
| |                           |   |                    |  |   |                  |  |   |               |  |   |         |  |   | 1999 (Date of | 
| |                           |   | Three Months ended |  |   | Six Months Ended |  |   | Inception) to | 
| |                           |   | June 30,           |  |   | June 30,         |  |   | June 30,      | 
| |                           |   | 2008               |  |   | 2007             |  |   | 2008          |  |   | 2007    |  |   | 2008          | 
| |                           |   |                    |  |   |                  |  |   |               |  |   |         |  |   |               | 
| | Accounting fees           | $ | 10,720             |  | $ | 9,898            |  | $ | 38,345        |  | $ | 20,498  |  | $ | 228,244       | 
| | Consulting fees           |   | 101,598            |  |   | 113,989          |  |   | 146,698       |  |   | 60,900  |  |   | 543,999       | 
| | Interest on notes payable |   | -                  |  |   | -                |  |   | 159,209       |  |   | -       |  |   | 159,209       | 
| | Legal fees                |   | -                  |  |   | -                |  |   | -             |  |   | -       |  |   | 60,656        | 
| | Management fees           |   | 337,148            |  |   | 7,313            |  |   | 761,658       |  |   | 108,555 |  |   | 3,316,036     | 
| | Rent                      |   | -                  |  |   | -                |  |   | -             |  |   | -       |  |   | 36,000        | 
| | Research and development  |   | -                  |  |   | -                |  |   | -             |  |   | -       |  |   | 5,604,189     | 
| |                           |   |                    |  |   |                  |  |   |               |  |   |         |  |   |               | 
| |                           | $ | 449,446            |  | $ | 131,200          |  | $ | 1,105,910     |  | $ | 189,953 |  | $ | 9,948,333     | 

Research and development expenditures
are comprised of testing costs of the molecular diagnostic test products.

Accounts payable and accrued
liabilities at June 30, 2008 includes $275,942 (December 31, 2007: $1,166,568)
owing to companies with a common director, a former director and a company of
which a former officer and director is the spouse of the Companys former
president for accounting, management and consulting services received.

|Note 6 | Loans Payable                                                                                                                                                                                                  
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                
|       | Loans payable are unsecured, non-interest bearing and has
      no specific terms for repayment.                                                                                                               
|       |                                                                                                                                                                                                                
|Note 7 | Capital Stock Notes 4, 8, 9 and 10                                                                                                                                                                            
|       |                                                                                                                                                                                                                
|       | Commitments                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                
|       | Share Purchase Warrants                                                                                                                                                                                        
|       |                                                                                                                                                                                                                
|       | At June 30, 2008, there are 2,658,223 (December 31, 2007:
      1,548,213) share purchase warrants outstanding entitling the holders
      thereof the right to acquire one common share for each warrant held.

---

- 13 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 4                     

|Note 7 | Capital Stock Notes 4, 8, 9 and 10 
      (contd)                              
|------ | ----------------------------------------------------------------------------------
|       |                                                                                   
|       | Commitments (contd)                                                             
|       |                                                                                   
|       | Share Purchase Warrants  (contd)                                                
|       |                                                                                   
|       | The following table summarizes the warrants
      outstanding as at June 30, 2008:

| | Number Outstanding | Exercise |                  
| | ------------------ | -------- | -----------------
| | and Exercisable    | Price    | Expiry Date      
| |                    |          |                  
| | 45,455             | $2.00    | September 5, 2008
| | 374,648            | $1.50    | October 23, 2008 
| | 35,000             | $1.50    | October 27, 2008 
| | 395,500            | $1.25    | July 31, 2008    
| | 165,000            | $1.50    | February 28, 2009
| | 347,610            | $1.50    | April 20, 2009   
| | 45,000             | $1.50    | August 1, 2009   
| | 1,250,010          | $1.60    | August 15, 2009  
| |                    |          |                  
| | 2,658,223          |          |                  

A summary of changes in the Companys
share purchase warrants for the six months ended June 30, 2008 and the year
ended December 31, 2007 is presented below:

| |                              |  | June 30, 2008 |   |   | December 31, 2007 | 
| | ---------------------------- |  | ------------- | - | - | ----------------- | 
| |                              |  |               |   |   | Weighted          | 
| |                              |  |               |   |   | Average           | 
| |                              |  | Number of     |   |   | Exercise          | 
| |                              |  | Warrants      |   |   | Price             | 
| |                              |  |               |   |   |                   | 
| | Outstanding, beginning       |  |               |   |   |                   | 
| | of year                      |  | 1,548,213     |   | $ | 1.42              | 
| | Granted                      |  | 1,295,010     |   | $ | 1.60              | 
| | Expired                      |  | (185,000      | ) | $ | 1.20              | 
| | Outstanding and exercisable, |  |               |   |   |                   | 
| | end of the period            |  | 2,658,223     |   | $ | 1.42              | 

On February 12, 2008, 110,000 warrants
expired without being exercised and on March 23, 2008, 75,000 warrants expired
without being exercised.

The weighted average life remaining of
all share purchase warrants is 0.76 years.

---

- 14 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 5                     

|Note 7 | Capital Stock Notes 4, 8, 9 and 10 
      (contd)                                                                                                                                                                                                                                            
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                 
|       | Commitments (contd)                                                                                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                 
|       | Share Purchase Options                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                 
|       | As at June 30, 2008, there were 4,200,000 (December 31,
      2007: 3,500,000) share purchase options outstanding entitling the holders
      thereof to purchase one common share for each option held. The following
      table summarizes the stock options outstanding as at June 30, 2008:

| |                    | Exercise |                      
| | ------------------ | -------- | ---------------------
| | Number Outstanding | Price    | Expiry Date          
| |                    |          |                      
| | 100,000            | $2.50    | May 3, 2016          
| | 600,000            | $1.00    | March 22, 2012       
| | 700,000            | $0.50    | February 12, 2017    
| | 500,000            | $0.60    | March 31, 2018       
| | 300,000*           | $0.50    | April 1, 2018        
| | 2,000,000**        | $0.50    | 5 years upon reaching
| |                    |          | certain milestones   
| | 4,200,000          |          |                      

| | *  | 200,000 share purchase options will vest at a rate of 25%
      every six months. The Company shall replace every 50,000 block of
      exercised share options by granting a block of the same number of stock
      options every six months at a new price based on the ten days average
      stock price at that time. An additional 100,000 share purchase options
      were granted at $0.50 per share in exchange for 100,000 share purchase
      options at $2.50 per share.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ** | The vesting of 2,000,000 options granted are contingent
      upon the performance milestones which have not yet been achieved as at
      June 30, 2008, therefore, no compensation has been recorded on these
      options (Note 8).                                                                                                                                                                                                                                                

---

- 15 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 6                     

|Note 7 | Capital Stock Notes 4, 8, 9 and 10 
      (contd)                                                                                                      
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                           
|       | Commitments (contd)                                                                                                                                     
|       |                                                                                                                                                           
|       | Share Purchase Options  (contd)                                                                                                                         
|       |                                                                                                                                                           
|       | A summary of changes in the Companys stock options for
      the years ended June 30, 2008 and the year ended December 31, 2007 is
      presented below:

| |                            |  | June 30, 2008 |   |   | December 31, 2007 | 
| | -------------------------- |  | ------------- | - | - | ----------------- | 
| |                            |  |               |   |   | Weighted          | 
| |                            |  |               |   |   | Average           | 
| |                            |  | Number of     |   |   | Exercise          | 
| |                            |  | Options       |   |   | Price             | 
| | Outstanding, beginning of  |  |               |   |   |                   | 
| | year                       |  | 3,500,000     |   | $ | 0.70              | 
| | Granted                    |  | 800,000       |   | $ | 0.56              | 
| | Expired                    |  | -             |   |   |                   | 
| | Exchanged                  |  | (100,000      | ) | $ | 2.50              | 
| |                            |  |               |   |   |                   | 
| | Outstanding, end of period |  | 4,200,000     |   | $ | 0.63              | 
| |                            |  |               |   |   |                   | 
| | Exercisable, end of period |  | 1,150,000     |   | $ | 0.93              | 

The weighted average contractual life
remaining of all stock options granted is 6.69 years.

The unvested options will only vest
and be exercisable at a future date and/or upon specific milestones being
reached as follows:

| | Options   |  | Vesting Date                                       | 
| | --------- |  | -------------------------------------------------- | 
| |           |  |                                                    | 
| | 250,000   |  | July 1, 2008                                       | 
| | 175,000   |  | August 12, 2008                                    | 
| | 300,000   |  | October 1, 2008                                    | 
| | 175,000   |  | February 12, 2009                                  | 
| | 50,000    |  | April 1, 2009                                      | 
| | 50,000    |  | October 1, 2009                                    | 
| | 50,000    |  | April 1, 2010                                      | 
| |           |  |                                                    | 
| | 1,050,000 |  |                                                    | 
| |           |  |                                                    | 
| | 2,000,000 |  | Vest at 25% upon reaching
      certain milestones | 
| |           |  |                                                    | 
| | 3,050,000 |  |                                                    | 

---

- 16 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 7                     

|Note 7 | Capital Stock Notes 4, 8, 9 and 10 
      (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       | Commitments (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       | Share Purchase Options  (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       | The fair value of each option grant was estimated on the
      date of the grant using the Black- Scholes option valuation model with the
      assumptions noted below. The Black-Scholes option valuation model requires
      the input of highly subjective assumptions including the expected price
      volatility. Changes in the subjective input assumptions can materially
      affect the fair value estimate and therefore, the Black-Scholes model does
      not necessarily provide a reliable single measure of the fair value of the
      Companys share purchase options.

| |                         |   | June 30, 2008   |  |   | December 31, 2007 | 
| | ----------------------- | - | --------------- |  | - | ----------------- | 
| |                         |   |                 |  |   |                   | 
| | Expected dividend yield |   | 0.0%            |  |   | 0.0%              | 
| | Expected volatility     |   | 82.53%  94.36% |  |   | 83.0% - 90.8%     | 
| | Risk-free Interest Rate |   | 3.57%  4.80%   |  |   | 4.04%  4.81%     | 
| | Term in years           |   | 10.0            |  |   | 5.0  10.0        | 
| | Fair value              | $ | 0.33 - $0.64    |  | $ | 0.33 - $1.01      | 

The expected volatility is calculated
based on the Companys historical share price and the expected term in years is
calculated using the Simplified Method as defined in SAB 107.

During the year ended December 31,
2007, the Company granted a consultant and directors and officers of the Company
1,300,000 stock options with a total fair value of $777,500 (no compensation
expense has been recorded for the 2,000,000 options granted as their vesting is
contingent upon performance). As the 1,300,000 stock options have a graded
vesting schedule, the total non-cash compensation cost recognized during the six
months ended June 30, 2008 was $365,743 ($209,926 has been included in
consulting fees and $155,817 has been included in management fees).

Share subscriptions

At June 30, 2008, the Company had
received $50,000 pursuant to share subscription agreements for 125,000 units at
$0.40 per unit. Each unit consists of one common share of the Company and one
share purchase warrant exercisable into one additional common share of the
Company for $0.75 for a period of two years from the date of issuance. These
shares were issued subsequent to June 30, 2008.

During the six months ended June 30,
2008, the Company received the $3,300 share subscription receivable.

---

- 17 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 8                     

|Note 8 | Commitments Notes 4 and 7
|------ | --------------------------

| | a) | By an agreement dated July 1, 2006, the Company agreed to
      pay $10,000 per month for management and operational services for offices
      in Geneva, Switzerland. The agreement is on a month-to-month basis and
      will renew on a monthly basis unless terminated by either party with 30
      days prior notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | b) | By an agreement dated February 13, 2007 and amended May
      23, 2007, the Company agreed to collaborate with Molecular Vision Ltd.
      (Molecular), a UK company, to acquire the exclusive rights to
      commercialize certain technology relating to the analysis/diagnostic
      fields (BioLED Technology), to contract Molecular to complete the research
      and development necessary to achieve manufacturable prototypes and have
      first right of refusal to fund the development of additional applications
      of the technology by agreeing to pay $4,702,864 (GBP£2,325,000) (this sum
      is in addition to the GBP£575,000 previously paid under the February 13,
      2007 agreement) over 3 years (noted below) and grant 2,000,000 share
      purchase options entitling the holders thereof the right to purchase one
      common share of the Company at $0.50 per share. The options will vest at
      50% per milestone and will be exercisable within a period of 5 years from
      the date of vesting. As the vesting of the share purchase options granted
      are contingent upon the performance milestones, which have not yet been
      achieved and uncertain as to whether they will be achieved, as at June 30,
      2008, no value is ascribed to them until it is likely that they would be
      vested.

| | Payment schedule:     |  |           |  |  |           | 
| | --------------------- |  | --------- |  |  | --------- | 
| |                       |  |           |  |  |           | 
| |                       |  | US$       |  |  | GBP£      | 
| |                       |  |           |  |  |           | 
| | May 2007 (paid)       |  | 598,645   |  |  | 300,000   | 
| | September 2007 (paid) |  | 1,126,235 |  |  | 550,000   | 
| | March 2008 (paid)     |  | 683,618   |  |  | 325,000   | 
| | October 2008          |  | 1,147,183 |  |  | 575,000   | 
| | April 2009            |  | 1,147,183 |  |  | 575,000   | 
| |                       |  |           |  |  |           | 
| |                       |  | 4,702,864 |  |  | 2,325,000 | 

Molecular also grants to the Company
an exclusive, worldwide, perpetual license to the intellectual property to
develop and commercialize it, subject to the payment to the vendor of a royalty
of 30% of gross receipts.

The term of the agreement is until
November 23, 2009, unless terminated earlier or the Company extends the
term.

---

- 18 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 9                     

|Note 8 | Commitments Notes 4 and 7  (contd)
|------ | -------------------------------------

| | c) | On April 1, 2007, the Company entered into an agreement
      with a director of the Company to serve as President and Chief Operating
      Officer at $7,000 per month. The agreement is for three years ending March
      31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | d) | On April 1, 2007, the Company entered into an agreement
      with a director of the Company to provide services as Chief Technology
      Officer at $4,500 per month. The agreement is for three years ending March
      31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | e) | On September 1, 2007, the Company entered into a
      consulting agreement at $2,000 per month. The agreement is for one year
      ending August 31, 2008 with the option to be renewed for an additional
      year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | f) | On September 3, 2007, the Company entered into an
      agreement with a director of the Company to provide services as CEO. The
      agreement was for three years ending September 3, 2010. According to the
      terms of the agreement, the CEO would receive 750,000 common shares of the
      Company as a signing bonus and will be entitled to receive an additional
      1,750,000 common shares as performance bonuses as follows:                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    | During the year ended December 31, 2007, 750,000 common
      shares were issued to the CEO valued at $645,000 as a signing bonus which
      has been included in management fees. In addition, the Company accrued
      additional management fees based on the value of performance shares that
      were likely to be issued, on a pro-rated time basis, since September 3,
      2007. During the six months ended June 30, 2008, the CEO resigned and it
      was determined that it would be unlikely that the performance shares would
      be issued. Consequently, the liability for the accrued fees totalling
      $491,749 was written off and has been shown as a contribution, as
      additional paid-in capital.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | g) | On April 1, 2008, the Company entered into a consulting
      agreement with a director of the Company at $10,000 per month. The
      agreement is for one year ending March 1, 2009. In addition, the
      consultant received $20,000 as a signing bonus, 100,000 share purchase
      options exercisable at $0.50 per share in exchange for 100,000 share
      purchase options held by the consultant at $2.50 per share and an
      additional 200,000 share purchase options exercisable at $0.50 per
      share.                                                                                                                                                                                                          

---

- 19 -

|Acrongenomics, Inc.                      
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|June 30, 2008                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 10                    

|Note 9 | Non-cash Transactions
|------ | ---------------------

Investing and financing activities
that do not have a direct impact on current cash flows are excluded from the
statements of cash flows.

During the six months ended June 30,
2008, the Company recorded stock-based compensation expense of $365,743 charged
to statement of operations.

During the six months ended June 30,
2008, the Company issued 150,000 common shares at $0.95 per share as prepayment
for consulting services to be received from February 1, 2008 to February 1, 2009
and at June 30, 2008, $83,125 was included in prepaid expenses. During the six
months ended June 30, 2008, the Company recorded consulting fees of $59,375
charged to the statements of operations.

During the six months ended June 30,
2008, the Company issued 150,000 common shares at $0.95 per share for consulting
services provided to the Company during the period form April 1, 2007 to
February 1, 2008. As at December 31, 2007, $128,250 had been accrued and
included with accounts payable and accrued liabilities. During the six months
ended June 30, 2008, the Company recorded consulting fees of $14,250 charged to
the statements of operations.

During the six months ended June 30,
2008, the Company issued 1,150,000 common shares at $0.79 per share and 550,000
common shares valued at $0.53 per share to the directors of the Company in
recognition for their services provided. As at December 31, 2007, $817,650 had
been accrued and included with accounts payable and accrued liabilities. During
the six months ended June 30, 2008, the Company recorded management fees of
$350,750 and consulting fees of $31,600 charged to the statements of
operations.

These transactions have been excluded
from the statements of cash flows.

|Note 10 | Subsequent Event Note 8
|------- | ------------------------

Subsequent to June 30, 2008, the
Company received $193,100 pursuant to subscription agreements for 482,750 units
at $0.40 per unit. Each unit consists of one common share and one share purchase
warrant exercisable into one additional common share of the Company for $0.75
for a period of two years from the date of issuance. Commissions of $24,310 will
be paid in connection with these subscriptions and shares subscribed at June 30,
2008.

---

- 20 -

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
may, should, expects, plans, anticipates, believes, estimates,
predicts, potential or continue or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled Risk Factors, that may cause our companys or our industrys
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

In this quarterly report, unless otherwise specified, all
references to common shares refer to the common shares of our capital
stock.

As used in this quarterly report, the terms we, us, our,
and Acrongenomics refer to Acrongenomics, Inc., unless otherwise
indicated.

Overview

We were incorporated under the laws of the State of Nevada on
August 17, 1999 under the name Cellway Ventures Inc. On February 25, 2004, we
changed the name of our company to Acrongenomics, Inc..

We are a development stage company focusing on investing and
commercializing novel technology platforms concerning the life sciences sector.
We are presently engaged in the business of the development of BioLED
Technology, combining microfluidics and polymer Light Emitting Diodes (pLED) for
use in future Point-of-Care diagnostic devices. On May 23, 2007, we entered into
an amended Development Agreement with Molecular Vision Limited, a research
company registered in London, England. Molecular Vision Limited, has developed,
within their fields of research at Imperial College in London, UK, a technology
platform combining microfluidics with an optical detection system based on
polymer Light Emitting Diodes (commonly referred to as pLED) to deliver
potentially affordable, intelligent and readily portable Point-Of-Care (POC)
medical diagnostic devices. The technology platform combining microfluidics and
pLED is known as BioLED Technology. Under the amended Development Agreement
with Molecular Vision Limited, we acquired the exclusive rights to develop and
commercialize the existing intellectual properties related to the BioLED
Technology and have first refusal rights to develop any additional applications
derived from Molecular Visions pipeline. As consideration for the rights we
acquired in the agreement, we agreed to pay a total £2,325,000 and grant
2,000,000 options at an exercise price of $0.50 to Molecular Vision Limited.

---

- 21 -

Over the next 12 months we will continue to work with Molecular
Vision Limited to develop the prototype Point-of-Care testing device for
diabetes management and cardiovascular testing. Presently we are working with
Molecular Vision Limited and Pearson Matthews, a specialist design development
company, and expect by the end of 2008 or early 2009 we will fabricate our final
prototype Point-of-Care device which will be used for the detection of albumin
and creatinine in urine (in order to perform multiple testing on the device), as
well as the detection of myoglobin (cardiac marker) first in solution and then
in whole blood. When we are ready to begin regulatory activities, we may begin
the process by determining exactly what we need to do and who we need to
contact, for submitting all relevant files to the Food and Drug Administration
for approval.

We have incurred operating losses since inception, have not
generated any revenues, and have not achieved profitable operations. Our deficit
accumulated during the development stage through June 30, 2008 aggregated
$25,107,186. We have incurred net losses as a result of our operation expenses,
including research and development expenses and the payment of our audit fees
and legal fees. We anticipate that our operating expenses will increase as we
intend to conduct detailed development of our first prototype Point-of-Care
diagnostic device and work towards its completion.

We estimate our expenses in the next 12 months will be
approximately $1,920,000, generally falling in two major categories: $2,000,000
in research and development expenses and $1,620,000 in general and
administrative expenses.

Liquidity and Capital Resources

|                                  |   | June 30, 2008 |   |   | December 31, 2007 |   |  | Change  | 
|--------------------------------- | - | ------------- | - | - | ----------------- | - |  | ------- | 
|Current Assets                    | $ | 161,149       |   | $ | 365,975           |   |  | 204,826 | 
|Current Liabilities               | $ | 1,343,390     |   | $ | 1,614,170         |   |  | 270,780 | 
|Working Capital Surplus (Deficit) | $ | (1,182,241    | ) | $ | (1,248,195        | ) |  | 65,954  | 

We had cash on hand of $56,553 as at June 30, 2008, compared
with $343,695 as at December 31, 2007. We had a working capital deficit of
$1,182,241 at June 30, 2008, compared to a working capital deficit of $1,248,195
as at December 31, 2007..

We do not currently have sufficient amount of cash to satisfy
our cash requirements for the next 12 months. We expect to seek additional funds
through equity or debt financing, collaborative or other arrangements with
corporate partners, and from other sources. We may not be able to obtain any
additional financing on terms acceptable to us, if at all, or we may not raise
as much as we need. If adequate additional funds are not available when
required, we will have to delay, scale-back or eliminate some of our research or
development activities or some other aspects of our operations and our business
will be materially and adversely affected. If we raise additional funds through
the sale of our equity securities, existing shareholders will experience a
dilution of their interest in our company. Obtaining commercial loans or related
party loans, assuming those loans would be available, will increase our
liabilities and future cash commitments.

Results of Operations

Revenue

We have earned no revenue since our inception. We are still in
the development stage and do not anticipate earning any revenues until such time
as we can establish an alliance with targeted companies to market or distribute
the results of our research projects.

---

- 22 -

Expenses

We incurred operating expenses in the amount of $93,147 for the
quarter ended June 30, 2008, compared with expenses of $806,168 the same period
from the previous year.

We incurred the following operating expenses for the three
month periods ended June 30, 2008:

|                   |   |              |   |   | Three     |  |   |            |  |   |            | 
|------------------ | - | ------------ | - | - | --------- |  | - | ---------- |  | - | ---------- | 
|                   |   | Three Months |   |   | Months    |  |   | Six Months |  |   | Six Months | 
|                   |   | Ended        |   |   | Ended     |  |   | Ended      |  |   | Ended      | 
|Expenses           |   | June 2008    |   |   | June 2007 |  |   | June 2008  |  |   | June 2007  | 
|Accounting and     | $ |              |   | $ |           |  | $ |            |  | $ |            | 
|audit fees         |   | 40,720       |   |   | 19,898    |  |   | 107,289    |  |   | 57,703     | 
|Bank charges       |   | 630          |   |   | 1,047     |  |   | 2,418      |  |   | 1,450      | 
|Consulting fees    |   | 165,145      |   |   | 49,500    |  |   | 331,100    |  |   | 96,900     | 
|Legal fees         |   | 6,123        |   |   | 7,480     |  |   | 35,209     |  |   | 16,811     | 
|Management fees    |   | (150,249     | ) |   | 121,677   |  |   | 274,746    |  |   | 176,001    | 
|Office and         |   |              |   |   |           |  |   |            |  |   |            | 
|miscellaneous      |   | 2,075        |   |   | 3,358     |  |   | 3,964      |  |   | 8,139      | 
|Rent               |   | 15,280       |   |   | -         |  |   | 27,883     |  |   | -          | 
|Research and       |   |              |   |   |           |  |   |            |  |   |            | 
|development        |   | -            |   |   | 598,645   |  |   | 648,407    |  |   | 598,645    | 
|Transfer agent and |   |              |   |   |           |  |   |            |  |   |            | 
|filing fees        |   | 1,775        |   |   | 2,075     |  |   | 3,359      |  |   | 2,078      | 
|Travel             |   | 11,648       |   |   | 2,485     |  |   | 62,446     |  |   | 6,583      | 
|                   | $ | 93,147       |   | $ | 806,168   |  | $ | 1,503,923  |  | $ | 964,310    | 

Accounting and audit fees increased by $20,822 for the three
month period ended June 30.

Consulting fees increased by $115,645 for the three month
period ended June 30.

Legal fees decreased by $1,357 for the three month period ended
June 30.

Management fees decreased by $271,926 for the three month
period ended June 30, and was primarily attributable to cancellation of
potential management bonus, since targets would not be attained.

Research and development fees decreased by $598,645 for the
three month period ended June 30, and was due to no activity in this area.

For the next 12 months, we estimate that our research and
development expenses will be approximately $300,000.

General and Administrative Expenses

For the next 12 months, we estimate that our general and
administrative expenses will be approximately $1,620,000. These expenses will
include approximately $1,020,000 on consulting, stock-based compensation and
investor relations, approximately $360,000 on office supplies, office rent,
travel and accommodations and $240,000 on professional fees, which consist
primarily of accounting, auditing fees for the year-end audit and legal fees for
securities advices, directors liability insurance and cost of fundraising.

We do not expect to generate any revenues in the next 12
months. Our future products will likely not be ready for sale for at least one
year, if at all.

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- 23 -

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK.

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of
1934, we have carried out an evaluation of the effectiveness of the design and
operation of our company's disclosure controls and procedures as of the end of
the period covered by this quarterly report, being June 30, 2008. This
evaluation was carried out under the supervision and with the participation of
our management, including our President and Chief Executive Officer and our
Chief Financial Officer.

Our management does not expect that our disclosure controls or
our internal controls over financial reporting will prevent all error and fraud.
A control system, no matter how well conceived and operated, can provide only
reasonable, but no absolute, assurance that the objectives of a control system
are met. Further, any control system reflects limitations on resources, and the
benefits of a control system must be considered relative to its costs. These
limitations also include the realities that judgments in decision-making can be
faulty and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people or by management override of a
control. A design of a control system is also based upon certain assumptions
about potential future conditions; over time, controls may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud may occur and
may not be detected.

Based upon that evaluation, our President and Chief Executive
Officer and our Chief Financial Officer concluded that our disclosure controls
and procedures are effective as at the end of the period covered by this report.
There have been no changes in our internal controls over financial reporting
that occurred during the period covered by this report that have materially
affected, or are reasonably likely to materially affect our internal controls
over financial reporting.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Securities Exchange Act of
1934 is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include controls and procedures designed to
ensure that information required to be disclosed in our company's reports filed
under the Securities Exchange Act of 1934 is accumulated and communicated
to management, including our President and Chief Executive Officer and our Chief
Financial Officer as appropriate, to allow timely decisions regarding required
disclosure.

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- 24 -

Internal Control over Financial Reporting

During our most recently completed quarter ended June 30, 2008
there were no changes in our internal control over financial reporting that have
materially affected, or are reasonably likely to affect, our internal control
over financial reporting.

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, our principal executive
and principal financial officers, or persons performing similar functions, and
effected by our board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and
procedures that:

| | (a) | Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      our assets;                                                                                                                                                                                              
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                         
| | (b) | Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures of our company are being made only in accordance
      with authorizations of our management and directors; and
| |     |                                                                                                                                                                                                                                                                                                                                                         
| | (c) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of our
      assets that could have a material effect on the financial
    statements.                                                                                                                                      

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

Much of the information included in this quarterly report
includes or is based upon estimates, projections or other forward looking
statements. Such forward looking statements include any projections and
estimates made by us and our management in connection with our business
operations. While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions
or other future performance suggested herein. Such estimates, projections or
other forward looking statements involve various risks and uncertainties as
outlined below. We caution the reader that important factors in some cases have
affected and, in the future, could materially affect actual results and cause
actual results to differ materially from the results expressed in any such
estimates, projections or other forward looking statements.

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- 25 -

Shares of our common stock are speculative, especially since we
are in the development stage of our new business. We operate in a volatile
sector of business that involves numerous risks and uncertainties. The risks and
uncertainties described below are not the only ones we face. Other risks and
uncertainties, including those that we do not currently consider material, may
impair our business. If any of the risks discussed below actually occur, our
business, financial condition, operating results or cash flows could be
materially adversely affected. This could cause the trading price of our
securities to decline, and you may lose all or part of your investment.
Prospective investors should consider carefully the risk factors set out
below.

Risks Related To Our Business

We have not earned any revenues since our incorporation and
only have a limited operating history in our current business of developing our
proprietary BioLED Technology, which raise doubt about our ability to continue
as a going concern.

Our company has a limited operating history in our current
business of developing Point-of-Care testing devices based on our proprietary
BioLED Technology and must be considered in the development stage. We have not
generated any revenues since our inception and we will, in all likelihood,
continue to incur operating expenses without significant revenues until we
successfully develop our BioLED Technology and commercialize our future
Point-of-Care testing devices. Our primary source of funds has been the sale of
our common stock. We cannot assure that we will be able to generate any
significant revenues or income. These circumstances make us dependent on
additional financial support until profitability is achieved. There is no
assurance that we will ever be profitable, and we have a going concern note as
described in an explanatory paragraph to our financial statements for the year
ended December 31, 2007.

Our likelihood of profit depends on our ability to develop
and commercialize products based on our BioLED Technology, which is currently in
the development stage. If we are unable to complete the development and
commercialization of our future Point-of-Care testing devices successfully, our
likelihood of profit will be limited severely.

Our BioLED Technology is in the development stage and we have
not begun the regulatory approval process. We have not realized a profit from
our operations to date and there is little likelihood that we will realize any
profits in the short or medium term. Any profitability in the future from our
business will be dependent upon successful commercialization of our future
Point-of-Care testing devices, which will require significant additional
research and development as well as clinical trials.

If we encounter problems or delays in the research and
development of our BioLED Technology and our future Point-of-Care testing
devices, we may not be able to raise sufficient capital to finance our
operations during the period required to resolve the problems or delays.

We, and any of our potential collaborators, may encounter
problems and delays relating to research and development, regulatory approval
and intellectual property rights of our technology. Our research and development
programs may not be successful. Our BioLED Technology and our future
Point-of-Care testing devices may not prove to be safe and efficacious in
clinical trials. If any of these events occur, we may not have adequate
resources to continue operations for the period required to resolve the issue
delaying commercialization and we may not be able to raise capital to finance
our continued operation during the period required for resolution of that issue.
Accordingly, we may be forced to discontinue or suspend our operations.

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- 26 -

We need to raise additional financing to support the
research and development of the BioLED Technology but we cannot be sure that we
will be able to obtain additional financing on terms favourable to us when
needed. If we are unable to obtain additional financing to meet our needs, our
operations may be adversely affected or terminated.

Our ability to continue to develop the BioLED Technology and
commercialize our future Point-of-Care testing devices is dependent upon our
ability to raise significant additional financing when needed. If we are unable
to obtain such financing, we will not be able to fully develop our technology
and commercialize our future Point-of-Care testing devices. Our future capital
requirements will depend upon many factors, including:

- continued scientific progress in our research and development programs;
- costs and timing of conducting clinical trials and seeking regulatory
  approvals and patent prosecutions;
- competing technological and market developments;
- our ability to establish additional collaborative relationships; and
- the effect of commercialization activities and facility expansions if and
  as required.

We have limited financial resources and to date, no cash flow
from operations and we are dependent for funds on our ability to sell our common
stock, primarily on a private placement basis. There can be no assurance that we
will be able to obtain financing on that basis in light of factors such as the
market demand for our securities, the state of financial markets generally and
other relevant factors. Any sale of our common stock in the future will result
in dilution to existing stockholders. Furthermore, there is no assurance that we
will not incur debt in the future, that we will have sufficient funds to repay
our future indebtedness or that we will not default on our future debts,
jeopardizing our business viability. Finally, we may not be able to borrow or
raise additional capital in the future to meet our needs or to otherwise provide
the capital necessary to conduct the development of our BioLED Technology and
commercialization of our future Point-of-Care testing devices, which might
result in the loss of some or all of your investment in our common stock.

If we fail to obtain and maintain required regulatory
approvals for our BioLED Technology and our potential Point-of-Care testing
devices, our ability to commercialize the BioLED Technology will be limited
severely.

We must obtain the approval from the Food and Drug
Administration and respective European regulatory bodies prior to the
commercialization of our future Point-of-Care testing devices. We may also be
required to obtain additional approvals from foreign regulatory authorities to
commence our marketing activities in those jurisdictions. If we cannot
demonstrate the safety, reliability and efficacy of our BioLED Technology, the
Food and Drug Administration or other regulatory authorities could delay or
withhold regulatory approval of our technology and our potential products.

Furthermore, even if we obtain regulatory approval, that
approval may be subject to limitations on the indicated uses for which they may
be marketed. Even after granting regulatory approval, the Food and Drug
Administration, other regulatory agencies, and governments in other countries
will continue to review and inspect marketed products, manufacturers and
manufacturing facilities. Later discovery of previously unknown problems with a
product, manufacturer or facility may result in restrictions on the product or
manufacturer, including a withdrawal of the product from the market. Further,
governmental regulatory agencies may establish additional regulations which
could prevent or delay regulatory approval of our technology and our future
Point-of-Care testing devices.

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- 27 -

Even if we obtain regulatory approvals to commercialize our
future Point-of-Care testing devices based on our BioLED Technology, we may
encounter a lack of commercial acceptance of our Point-of-Care testing devices,
which would impair the profitability of our business.

We intend that our potential products will be used as an
alternative to the specialized laboratories equipped with bulky and expensive
equipment. Current methods of laboratory testing have been widely practiced for
a number of years, and our technology and products may not be accepted by the
marketplace as readily as these or other competing processes and methodologies.
Additionally, our BioLED Technology may not be employed in all potential
applications being investigated, and any reduction in applications would limit
the market acceptance of our technology and our potential revenues. As a result,
even if we obtain all required regulatory approvals, we cannot be certain that
our BioLED Technology will be adopted at a level that would allow us to operate
profitably.

If we do not keep pace with our competitors and with
technological and market changes, our technology and products may become
obsolete and our business may suffer.

The market for our products is very competitive, is subject to
rapid technological changes and varies for different individual products.
According to our market research, we believe that currently there are not many
approaches in competition to our products, however, there are many private
companies from which information is difficult to obtain.

Many of our competitors have significantly greater resources,
more product candidates and have developed product candidates and processes that
indirectly compete with our products. Our competitors may have developed, or
could in the future develop, new products that compete directly with our
products or even render our products obsolete. Our technology is designed to
combine the use of microfluidics and pLED as the basis for Point-of-Care testing
devices. Even if we are able to demonstrate improved or equivalent results,
researchers and practitioners may not use our products and we will suffer a
competitive disadvantage. Finally, to the extent that others develop new
products that address the targeted application for our products, our business
will suffer.

Our success depends in large part on our ability to develop
and protect our BioLED Technology and our potential Point-of-Care testing
devices. If our patents and proprietary right agreements do not provide
sufficient protection for our BioLED Technology and its potential Point-of-Care
testing devices, our business and competitive position will suffer.

We rely on an exclusive license relating to the BioLED
Technology granted to us by Molecular Vision Limited. If we materially breach
such agreement or otherwise fail to materially comply with such agreement, or if
such agreement expires or is otherwise terminated by us, we may lose our rights
under the license granted by Molecular Vision Limited. At the latest, the
license will terminate when the patents underlying the license expire. The
underlying patents will expire in approximately 2018. Also, the scope of the
patents licensed to us may not be sufficiently broad to offer meaningful
protection. In addition, the patents licensed to us could be successfully
challenged, invalidated or circumvented so that our patent rights would not
create an effective competitive barrier. We also intend to seek patent
protection for any of our future Point-of-Care testing devices once we have
completed their development. We also rely on proprietary know-how that we seek
to protect, in part, by confidentiality agreements with our employees,
consultants, suppliers and licensees. These agreements may be breached, and we
might not have adequate remedies for any breach. If this were to occur, our
business and competitive position would suffer.

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- 28 -

We may be subject to intellectual property litigation such
as patent infringement claims, which could adversely affect our
business.

Our success will also depend in part on our ability to develop
our technology and commercially viable products without infringing the
proprietary rights of others. Although we have not been subject to any filed
infringement claims, other patents could exist or could be filed which would
prohibit or limit our ability to develop our BioLED Technology and market our
potential Point-of-Care testing devices in the future. In the event of an
intellectual property dispute, we may be forced to litigate. Intellectual
property litigation would divert management's attention from developing our
technology and marketing our future Point-of-Care testing devices and would
force us to incur substantial costs regardless of whether we are successful. An
adverse outcome could subject us to significant liabilities to third parties,
and force us to curtail or cease the development and commercialization of our
BioLED Technology.

Potential product liability claims could adversely affect
our future earnings and financial condition.

We face an inherent business risk of exposure to product
liability claims in the event that the use of our future products results in
adverse affects. As a result, we may incur significant product liability
exposure. We may not be able to maintain adequate levels of insurance at
reasonable cost and/or reasonable terms. Excessive insurance costs or uninsured
claims would add to our future operating expenses and adversely affect our
financial condition.

Because some of our officers and directors are located in
non-U.S. jurisdictions, you may have no effective recourse against the
management for misconduct and may not be able to enforce judgement and civil
liabilities against our officers, directors, experts and agents.

Most of our directors and officers are nationals and/or
residents of countries other than the United States, and all or a substantial
portion of their assets are located outside the United States. As a result, it
may be difficult for you to enforce within the United States any judgments
obtained against our officers or directors, including judgments predicated upon
the civil liability provisions of the securities laws of the United States or
any U.S. state.

Risks Related To Our Common Stock

Because we do not intend to pay any dividends on our common
stock, investors seeking dividend income or liquidity should not purchase shares
of our common stock.

We have not declared or paid any dividends on our common stock
since our inception, and we do not anticipate paying any such dividends for the
foreseeable future. Investors seeking dividend income or liquidity should not
invest in our common stock.

If we issue additional shares in the future, it will result
in the dilution of our existing shareholders.

Our certificate of incorporation authorizes the issuance of up
to 100,000,000 shares of common stock with a par value of $0.001. Our board of
directors may choose to issue some or all of such shares to acquire one or more
businesses or to provide additional financing in the future. The issuance of any
such shares will result in a reduction of the book value and market price of the
outstanding shares of our common stock. If we issue any such additional shares,
such issuance will cause a reduction in the proportionate ownership and voting
power of all current shareholders. Further, such issuance may result in a change
of control of our corporation.

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- 29 -

Our stock is considered a penny stock and certain
securities rules may hamper the tradability of our shares in the market.

Shares of our common stock are subject to rules adopted by the
Securities and Exchange Commission that regulate broker-dealer practices in
connection with transactions in penny stocks. Penny stock is defined to be
any equity security that has a market price (as defined) less than $5.00 per
share or an exercise price of less than $5.00 per share, subject to certain
exceptions. Our common stock are covered by the penny stock rules, which impose
additional sales practice requirements on broker-dealers who sell to persons
other than established customers and accredited investors. The term
accredited investor refers generally to institutions with assets in excess of
$5,000,000 or individuals with a net worth in excess of $1,000,000 or annual
income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock
rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from the rules, to deliver a standardized risk disclosure
document in a form prepared by the SEC which provides information about penny
stocks and the nature and level of risks in the penny stock market. The
broker-dealer also must provide the customer with current bid and offer
quotations for the penny stock, the compensation of the broker-dealer and its
salesperson in the transaction and monthly account statements showing the market
value of each penny stock held in the customer's account. The bid and offer
quotations, and the broker-dealer and salesperson compensation information, must
be given to the customer orally or in writing prior to effecting the transaction
and must be given to the customer in writing before or with the customer's
confirmation. In addition, the penny stock rules require that prior to a
transaction in a penny stock not otherwise exempt from these rules, the
broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchaser's written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities.

The Financial Industry Regulatory Authority, or FINRA, has
adopted sales practice requirements which may also limit a stockholder's ability
to buy and sell our stock.

In addition to the penny stock rules described above, FINRA has
adopted rules that require that in recommending an investment to a customer, a
broker-dealer must have reasonable grounds for believing that the investment is
suitable for that customer. Prior to recommending speculative low priced
securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customer's financial status,
tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative
low priced securities will not be suitable for at least some customers. FINRA
requirements make it more difficult for broker-dealers to recommend that their
customers buy our common stock, which may limit your ability to buy and sell our
stock and have an adverse effect on the market for our shares.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS.

None.

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- 30 -

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS.

(3)
      Articles
          of Incorporation and By-laws3.1
      Articles of Incorporation (incorporated
          by reference from our Registration Statement on Form 10-SB filed May
          24, 2002, as amended).3.2
      Bylaws, as amended (incorporated
          by reference from our Registration Statement on Form 10- SB filed May
          24, 2002, as amended).(10)
      Material
          Contracts10.1
      Agreement for the Sale of Stock
          between our company and Dr. Leftheris Georgakopoulos dated February
          13, 2006 (incorporated by reference from our Current Report on Form
          8-K filed February 16, 2006).10.2
      Development Agreement between
          our company and Molecular Vision Limited. (incorporated by reference
          from our Current Report on Form 8-K filed February 20, 2007).10.3
      Employment Agreement dated
          September 3, 2007 between our company and Dr. Dimitris Goundis (incorporated
          by reference from our Current Report on Form 8-K filed September 28,
          2007).10.4
      Letter Agreement dated February
          1, 2008 with Molecular Vision Limited (incorporated by reference from
          our Current Report on Form 8-K filed February 19, 2008).(31)
      Section
          302 Certification31.1*
      Rule
          13a-14(a) Certification of Chief Executive Officer.31.2*
      Rule
          13a-14(a) Certification of Chief Financial Officer.(32)
      Section
          906 Certification32.1*
      Certification
          of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
      Certification
          of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002.


* Filed herewith.

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- 31 -

SIGNATURES

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

ACRONGENOMICS, INC.

|By: | /s/ Platon Tzouvalis                                                 | 
|--- | -------------------------------------------------------------------- | 
|    | Platon Tzouvalis                                                     | 
|    | President                                                            | 
|    | (Principal Executive Officer)                                        | 
|    | Date: August 18, 2008                                                | 
|    |                                                                      | 
|By: | /s/ Ron Lizée                                                        | 
|    | Ron Lizée                                                            | 
|    | Chief Financial Officer,
      Secretary, and Director               | 
|    | (Principal Financial Officer and
      Principal Accounting Officer) | 
|    | Date: August 18, 2008                                                | 

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