---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2007

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT

For the transition period from ______________ to
___________________

Commission file number 000-49833

ACRONGENOMICS, INC.(Exact
name of small business issuer as specified in its charter)

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

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

+41 22 71 65 300(Issuers telephone number)

1530 9thAve SE Calgary,
Alberta T2G 0T7(Former name, former address and former fiscal year,
if changed since last report)

Check whether the issuer: (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 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 shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

---

2

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date:

14,612,366 common shares issued and outstanding as of
March 31, 2007.

Transitional Small Business Disclosure Format (Check one): Yes [
] No [X]

---

3

PART I

|Item 1. | Financial Statements
|------- | --------------------

Our consolidated financial statements are stated in United
States Dollars (US$) and are prepared in accordance with United States Generally
Accepted Accounting Principles.

---

|ACRONGENOMICS, INC.          
|-----------------------------
|                             
|(A Development Stage Company)
|                             
|INTERIM FINANCIAL STATEMENTS 
|                             
|March 31, 2007               
|                             
|(Stated in US Dollars)       
|                             
|(Unaudited)                  

---

|ACRONGENOMICS, INC.                 
|------------------------------------
|(A Development Stage Company)       
|INTERIM BALANCE SHEETS              
|March 31, 2007 and December 31, 2006
|(Stated in US Dollars)              
|(Unaudited)                         

|                                                        |   | March 31,   |   |   | December 31, |  
|------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|ASSETS                                                  |   | 2007        |   |   | 2006         |  
|Current                                                 |   |             |   |   |              |  
|Cash                                                    | $ | 257,176     |   | $ | 4,552        |  
|LIABILITIES                                             |  
|Current                                                 |   |             |   |   |              |  
|Accounts payable and
      accrued liabilities Note 3  | $ | 212,746     |   | $ | 161,304      |  
|Loans payable  Note 4                                  |   | 28,273      |   |   | 28,273       |  
|                                                        |   | 241,019     |   |   | 189,577      |  
|STOCKHOLDERS EQUITY (DEFICIENCY)                       |  
|Common stock, $0.001 par value  Notes 5, 6
      and 7 |   |             |   |   |              |  
|100,000,000 shares
      authorized                     |   |             |   |   |              |  
|14,612,366 shares issued (2006: 14,131,457)             |   | 14,612      |   |   | 14,131       |  
|Additional paid-in capital                              |   | 10,874,387  |   |   | 10,475,544   |  
|Share subscriptions                                     |   | -           |   |   | 40,000       |  
|Deficit accumulated during the development stage        |   | (10,872,842 | ) |   | (10,714,700  | )
|                                                        |   | 16,157      |   |   | (185,025     | )
|                                                        | $ | 257,176     |   | $ | 4,552        |  

---

|ACRONGENOMICS, INC.                                                       
|--------------------------------------------------------------------------
|(A Development Stage Company)                                             
|INTERIM STATEMENTS OF OPERATIONS                                          
|for the three months ended March 31, 2007 and 2006 and                    
|for the period August 17, 1999 (Date of Inception) to
      March 31, 2007
|(Stated in US Dollars)                                                    
|(Unaudited)                                                               

|                                              |   |                    |   |   |               |   |   | August 17,    |  
|--------------------------------------------- | - | ------------------ | - | - | ------------- | - | - | ------------- | -
|                                              |   |                    |   |   |               |   |   | 1999 (Date of |  
|                                              |   | Three months ended |   |   | Inception) to |  
|                                              |   | March 31,          |   |   | March 31,     |  
|                                              |   | 2007               |   |   | 2006          |   |   | 2007          |  
|                                              |   |                    |   |   |               |   |   |               |  
|Expenses                                      |   |                    |   |   |               |   |   |               |  
|Accounting and audit fees  Note 3            | $ | 37,805             |   | $ | 47,989        |   | $ | 327,668       |  
|Amortization of patents                       |   | -                  |   |   | -             |   |   | 741,430       |  
|Appraisals                                    |   | -                  |   |   | -             |   |   | 14,500        |  
|Bank charges                                  |   | 403                |   |   | 558           |   |   | 8,058         |  
|Consulting fees  Note 3                      |   | 47,400             |   |   | 20,000        |   |   | 880,399       |  
|Foreign exchange (gain)                       |   | 6                  |   |   | 173           |   |   | (735          | )
|Legal fees - Note 3                           |   | 9,331              |   |   | 26,979        |   |   | 241,495       |  
|Management fees                               |   | 30,000             |   |   | -             |   |   | 90,000        |  
|Office and miscellaneous                      |   | 4,781              |   |   | 5,981         |   |   | 52,408        |  
|Rent - Note 3                                 |   | -                  |   |   | 6,000         |   |   | 36,000        |  
|Research and development  Note 3             |   | -                  |   |   | 200,000       |   |   | 6,681,969     |  
|Stock-based
      compensation                |   | 24,324             |   |   | -             |   |   | 917,997       |  
|Telephone                                     |   | -                  |   |   | -             |   |   | 2,399         |  
|Transfer agent and
      filing fees          |   | -                  |   |   | 1,000         |   |   | 25,244        |  
|Travel                                        |   | 4,098              |   |   | 5,234         |   |   | 123,007       |  
|                                              |   |                    |   |   |               |   |   |               |  
|Loss before the following:                    |   | (158,148           | ) |   | (373,914      | ) |   | (10,688,846   | )
|                                              |   |                    |   |   |               |   |   |               |  
|Interest income                               |   | 6                  |   |   | 9,430         |   |   | 22,449        |  
|Write-down of patents                         |   | -                  |   |   | -             |   |   | (8,004,447    | )
|                                              |   |                    |   |   |               |   |   |               |  
|Loss from continuing operations               |   | (158,142           | ) |   | (364,484      | ) |   | (18,670,844   | )
|Loss from discontinued operations             |   | -                  |   |   | -             |   |   | (41,998       | )
|                                              |   |                    |   |   |               |   |   |               |  
|Net loss for the period                       | $ | (158,142           | ) | $ | (364,484      | ) | $ | (18,712,842   | )
|                                              |   |                    |   |   |               |   |   |               |  
|Basic and diluted loss per share              | $ | (0.01              | ) | $ | (0.02         | ) |   |               |  
|                                              |   |                    |   |   |               |   |   |               |  
|Weighted average number of shares outstanding |   | 14,301,730         |   |   | 17,824,123    |   |   |               |  

---

|ACRONGENOMICS, INC.                                                       
|--------------------------------------------------------------------------
|(A Development Stage Company)                                             
|INTERIM STATEMENTS OF CASH FLOWS                                          
|for the three months ended March 31, 2007 and 2006 and                    
|for the period August 17, 1999 (Date of Inception) to
      March 31, 2007
|(Stated in US Dollars)                                                    
|(Unaudited)                                                               

|                                                    |   |                    |   |   |               |   |   | August 17,    |  
|--------------------------------------------------- | - | ------------------ | - | - | ------------- | - | - | ------------- | -
|                                                    |   |                    |   |   |               |   |   | 1999 (Date of |  
|                                                    |   | Three months ended |   |   | Inception) to |  
|                                                    |   | March 31,          |   |   | March 31,     |  
|                                                    |   | 2007               |   |   | 2006          |   |   | 2007          |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash Flows used in Operating Activities             |   |                    |   |   |               |   |   |               |  
|Loss from continuing operations                     | $ | (158,142           | ) | $ | (364,484      | ) | $ | (18,646,520   | )
|Items not affecting
      cash:                     |   |                    |   |   |               |   |   |               |  
|Amortization                                        |   | -                  |   |   | -             |   |   | 741,430       |  
|Shares issued for consulting fees                   |   | -                  |   |   | -             |   |   | 468,000       |  
|Stock-based
      compensation                      |   | 24,324             |   |   | -             |   |   | 917,997       |  
|Write-down of patents                               |   | -                  |   |   | -             |   |   | 8,004,447     |  
|Changes in non-cash working capital
      item:     |   |                    |   |   |               |   |   |               |  
|Accounts payable and accrued liabilities            |   | 51,442             |   |   | (97,684       | ) |   | 212,746       |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Net cash used in operating activities               |   | (82,376            | ) |   | (462,168      | ) |   | (8,326,224    | )
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash Flows used in Investing Activity               |   |                    |   |   |               |   |   |               |  
|Patents                                             |   | -                  |   |   | -             |   |   | (121,877      | )
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash Flows provided by Financing Activities         |   |                    |   |   |               |   |   |               |  
|Common stock issued for
      cash                  |   | 335,000            |   |   | -             |   |   | 8,348,695     |  
|Stock purchase warrants                             |   | -                  |   |   | -             |   |   | 370,307       |  
|Increase (decrease) in
      loan payable           |   | -                  |   |   | -             |   |   | 28,273        |  
|Advances from/to discontinued
      operations of   |   |                    |   |   |               |   |   |               |  
|disposed
      subsidiary                           |   | -                  |   |   | -             |   |   | (41,998       | )
|                                                    |   |                    |   |   |               |   |   |               |  
|Net cash provided by financing activities           |   | 335,000            |   |   | -             |   |   | 8,705,277     |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Increase (decrease) in cash during the
      period |   | 252,624            |   |   | (462,168      | ) |   | 257,176       |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash, beginning of period                           |   | 4,552              |   |   | 1,741,998     |   |   | -             |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash, end of period                                 | $ | 257,176            |   | $ | 1,279,830     |   | $ | 257,176       |  
|                                                    |   |                    |   |   |               |   |   |               |  
|Cash consists of:                                   |   |                    |   |   |               |   |   |               |  
|Cash                                                | $ | 257,178            |   | $ | 269,577       |   |   |               |  
|Term deposit                                        |   | -                  |   |   | 1,020,253     |   |   |               |  
|                                                    |   |                    |   |   |               |   |   |               |  
|                                                    | $ | 257,178            |   | $ | 1,279,830     |   |   |               |  

---

|ACRONGENOMICS, INC.                                                       
|--------------------------------------------------------------------------
|(A Development Stage Company)                                             
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                   
|for the period August 17, 1999 (Date of Inception) to
      March 31, 2007
|(Stated in US Dollars)                                                    
|(Unaudited)                                                               

|                                      |  |             |            |  |              |        |   |           |            |   |             |         |   |               |            |   | Deficit     |           |   |             |  
|------------------------------------- |  | ----------- | ---------- |  | ------------ | ------ | - | --------- | ---------- | - | ----------- | ------- | - | ------------- | ---------- | - | ----------- | --------- | - | ----------- | -
|                                      |  |             |            |  | Common Stock |        |   |           |            |   | Accumulated |         |   |               |           
|                                      |  |             |            |  |              |        |   |           |            |   | Additional  |         |   |               |            |   | During the  |           |   |             |  
|                                      |  |             |            |  |              |        |   |           |            |   | Paid-in     |         |   | Stock         |            |   | Development |           |   | Contributed |  
|                                      |  |             |            |  | Number       |        |   | Par 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  |            |  | 100,000      |        |   | 100       |            |   | 229,900     |         |   | -             |            |   | -           |           |   | 230,000     |  
|                                      |  | - at $2.30  |            |  | 437,956      |        |   | 438       |            |   | 1,006,861   |         |   | -             |            |   | -           |           |   | 1,007,299   |  
|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

---

Continued

|ACRONGENOMICS, INC.                                                        
|---------------------------------------------------------------------------
|(A Development Stage Company)                                              
|STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                            
|from the period August 17, 1999 (Date of Inception) to
      March 31, 2007
|(Stated in US Dollars)                                                     
|(Unaudited)                                                                

|                                                                    |  |            |   |  |              |   |   |           |        |   | Deficit     |   |   |               |  
|------------------------------------------------------------------- |  | ---------- | - |  | ------------ | - | - | --------- | ------ | - | ----------- | - | - | ------------- | -
|                                                                    |  |            |   |  | Common Stock |   |   |           |        |   | Accumulated |   |   |               |  
|                                                                    |  |            |   |  |              |   |   |           |        |   | Additional  |   |   |               |  
|                                                                    |  |            |   |  |              |   |   |           |        |   | Paid-in     |   |   | Stock         |  
|                                                                    |  |            |   |  | Number       |   |   | Par Value |        |   | Capital     |   |   | Subscriptions |  
|                                                                    |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|                                                                    |  | - at $2.40 |   |  | 108,168      |   |   | 108       |        |   | 259,495     |   |   | -             |  
|                                                                    |  | - at $3.50 |   |  | 551,443      |   |   | 551       |        |   | 1,929,499   |   |   | -             |  
|                                                                    |  | - at $4.00 |   |  | 915,125      |   |   | 915       |        |   | 3,659,585   |   |   | (386,329      | )
|Capital stock issued for commission                                 |  | - at $4.00 |   |  | 81,337       |   |   | 82        |        |   | 325,266     |   |   | -             |  
|Less: Commission                                                    |  |            |   |  | -            |   |   | -         |        |   | (325,348    | ) |   | -             |  
|Commission                                                          |  |            |   |  | -            |   |   | -         |        |   | (24,900     | ) |   | -             |  
|Common stock issued for cash
      pursuant to exercise of warrants |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|                                                                    |  | - at $1.00 |   |  | 420,000      |   |   | 420       |        |   | 419,580     |   |   | -             |  
|Stock-based compensation                                            |  |            |   |  | -            |   |   | -         |        |   | 364,000     |   |   | -             |  
|Common stock issued for consulting services                         |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|                                                                    |  | - at $4.68 |   |  | 100,000      |   |   | 100       |        |   | 467,900     |   |   | -             |  
|Net loss from continuing operations                                 |  |            |   |  | -            |   |   | -         |        |   | -           |   |   | -             |  
|Capital contribution from
      subsidiary on disposition           |  |            | - |  |              | - |   |           | (6,000 | ) |             | - |   |               | -
|Net loss from discontinued operations                               |  |            |   |  | -            |   |   | -         |        |   | -           |   |   | -             |  
|                                                                    |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|Balance, December 31, 2005                                          |  |            |   |  | 17,814,123   |   |   | 17,814    |        |   | 17,550,488  |   |   | 40,000        |  
|Cancellation of shares  Note
      5                               |  |            |   |  | (4,000,000   | ) |   | (4,000    | )      |   | (7,836,000  | ) |   | -             |  
|Stock-based compensation                                            |  |            |   |  | -            |   |   | -         |        |   | 529,673     |   |   | -             |  
|Common stock issued for cash-
      at $0.75                        |  |            |   |  | 317,334      |   |   | 317       |        |   | 237,683     |   |   | -             |  
|Less: share issue costs                                             |  |            |   |  | -            |   |   | -         |        |   | (6,300      | ) |   | -             |  
|Net loss for the year                                               |  |            |   |  | -            |   |   | -         |        |   | -           |   |   | -             |  
|                                                                    |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|Balance, December 31, 2006                                          |  |            |   |  | 14,131,457   |   |   | 14,131    |        |   | 10,475,544  |   |   | 40,000        |  
|                                                                    |  | - at $1.10 |   |  | 90,909       |   |   | 91        |        |   | 99,909      |   |   | -             |  
|                                                                    |  | - at $1.10 |   |  | 150,000      |   |   | 150       |        |   | 164,850     |   |   | -             |  
|Less: Commission                                                    |  |            |   |  | -            |   |   | -         |        |   | (15,000     | ) |   | -             |  
|Capital stock issued for
      commission                           |  | - at $0.75 |   |  | 20,000       |   |   | 20        |        |   | 14,980      |   |   | -             |  
|Stock-based compensation                                            |  |            |   |  | -            |   |   | -         |        |   | 24,324      |   |   | -             |  
|Net loss for the year                                               |  |            |   |  | -            |   |   | -         |        |   | -           |   |   | -             |  
|                                                                    |  |            |   |  |              |   |   |           |        |   |             |   |   |               |  
|Balance, March 31, 2007                                             |  |            |   |  | 14,612,366   |   | $ | 14,612    |        | $ | 10,874,387  |   | $ | -             |  

---

|ACRONGENOMICS, INC.              
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|March 31, 2007                   
|(Stated in US Dollars)           
|(Unaudited)                      

|Note 1 | Interim Reporting
|------ | -----------------

While the information presented in the
accompanying interim three 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, 2006 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, 2006 annual
financial statements.

|Note 2 | Nature and Continuance of Operations
|------ | ------------------------------------

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 March 31, 2007,
the Company had not yet achieved profitable operations, has accumulated losses
of $10,872,842 since its inception 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 (Note 7).

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 2                      

|Note 3 | Related Party Transactions Note 5
|------ | ----------------------------------

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:

| |                          |   |                    |  |   |               |  |   | August 17,    | 
| | ------------------------ | - | ------------------ |  | - | ------------- |  | - | ------------- | 
| |                          |   |                    |  |   |               |  |   | 1999 (Date of | 
| |                          |   | Three months ended |  |   | Inception) to | 
| |                          |   | March 31,          |  |   | March 31,     | 
| |                          |   | 2007               |  |   | 2006          |  |   | 2007          | 
| |                          |   |                    |  |   |               |  |   |               | 
| | Accounting fees          | $ | 10,600             |  | $ | 23,994        |  | $ | 152,182       | 
| | Consulting fees          |   | 26,400             |  |   | 20,000        |  |   | 116,501       | 
| | Legal fees               |   | -                  |  |   | -             |  |   | 60,656        | 
| | Rent                     |   | -                  |  |   | 6,000         |  |   | 50,000        | 
| | Research and development |   | -                  |  |   | 200,000       |  |   | 5,604,189     | 
| | Stock-based compensation |   | 21,753             |  |   | -             |  |   | 21,753        | 
| |                          |   |                    |  |   |               |  |   |               | 
| |                          | $ | 58,753             |  | $ | 249,994       |  | $ | 6,005,281     | 

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

Accounts payable and accrued
liabilities at March 31, 2007 includes $65,103 (December 31, 2006: $111,779)
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.

|Note 4 | Loans Payable
|------ | -------------

Loans payable are unsecured,
non-interest bearing and has no specific terms for repayment.

|Note 5 | Capital Stock Notes 6 and 7
|------ | ----------------------------

Commitments

Share Purchase Warrants

At March 31, 2007, there are 967,789
(December 31, 2006: 737,334) share purchase warrants outstanding entitling the
holders thereof the right to acquire one common share for each warrant held.

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 3                      

|Note 5 | Capital Stock Notes 6 and 7  (contd)
|------ | ---------------------------------------

Commitments  (contd)

Share Purchase Warrants  (contd)

The following table summarizes the
warrants outstanding as at March 31, 2007:

| | Number          |          |                   
| | --------------- | -------- | ------------------
| | Outstanding and | Exercise |                   
| | Exercisable     | Price    | Expiry Date       
| |                 |          |                   
| | 420,000         | $1.20    | May 7, 2007       
| | 84,000          | $1.50    | September 15, 2007
| | 233,334         | $1.50    | October 31, 2007  
| | 110,000         | $1.00    | February 12, 2008 
| | 45,455          | $2.00    | September 5, 2008 
| | 75,000          | $1.50    | March 23, 2008    
| |                 |          |                   
| | 967,789         |          |                   

On May 7, 2007, 420,000 warrants
expired without being exercised.

A summary of charges in the Companys
share purchase warrants for the three months ended March 31, 2007 and the year
ended December 31, 2006 is presented below:

| |                                |  | March 31, 2007 |  |   | December 31, 2006 | 
| | ------------------------------ |  | -------------- |  | - | ----------------- | 
| |                                |  |                |  |   | Weighted          | 
| |                                |  |                |  |   | Average           | 
| |                                |  | Number of      |  |   | Exercise          | 
| |                                |  | Warrants       |  |   | Price             | 
| |                                |  |                |  |   |                   | 
| | Outstanding, beginning of year |  | 737,334        |  | $ | 1.33              | 
| | Granted                        |  | 230,455        |  | $ | 1.36              | 
| | Expired                        |  | -              |  |   | -                 | 
| |                                |  |                |  |   |                   | 
| | Outstanding, end of year       |  | 967,789        |  | $ | 1.34              | 

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 4                      

|Note 5 | Capital Stock Notes 6 and 7  (contd)
|------ | ---------------------------------------

Commitments (contd)

Share Purchase Options

As at March 31, 2007, there are
3,700,000 (December 31, 2006: 400,000) share purchase options outstanding
entitling the holders thereof the right to purchase one common share for each
option held. The following table summarizes the stock options outstanding as at
March 31, 2007:

| | Number            | Exercise |                      
| | ----------------- | -------- | ---------------------
| | Outstanding       | Price    | Expiry Date          
| |                   |          |                      
| | 200,000           | $3.00    | August 31, 2007      
| | 200,000           | $2.50    | May 3, 2016          
| | 600,000           | $1.00    | March 12, 2012       
| | 700,000           | $0.50    | February 12, 2017    
| | *
      2,000,000 | $0.50    | 5 Years upon reaching
| |                   |          | certain milestones   
| |                   |          |                      
| | 3,700,000         |          |                      

| | * | The vesting of 2,000,000 options granted are contingent
      upon the performance milestones which have not yet been achieved as at
      March 31, 2007, therefore, no compensation has been recorded on these
      options (Note 6).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A summary of changes in the Companys
stock options for the three months ended March 31, 2007 and the year ended
December 31, 2006 is presented below:

| |                            |  | March 31, 2007 |  |   | December 31, 2006 | 
| | -------------------------- |  | -------------- |  | - | ----------------- | 
| |                            |  |                |  |   | Weighted          | 
| |                            |  |                |  |   | Average           | 
| |                            |  | Number of      |  |   | Exercise          | 
| |                            |  | Options        |  |   | Price             | 
| |                            |  |                |  |   |                   | 
| | Outstanding, beginning of  |  |                |  |   |                   | 
| | year                       |  | 400,000        |  | $ | 2.75              | 
| | Granted                    |  | 3,300,000      |  | $ | 0.59              | 
| |                            |  |                |  |   |                   | 
| | Outstanding, end of period |  | 3,700,000      |  | $ | 0.82              | 
| |                            |  |                |  |   |                   | 
| | Exercisable, end of period |  | 400,000        |  |   |                   | 

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 5                      

|Note 5 | Capital Stock Notes 6 and 7  (contd)
|------ | ---------------------------------------

Commitments  (contd)

Share Purchase Options  (contd)

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             
| | --------- |  | -------------------------
| | 175,000   |  | Aug 12/07                
| | 175,000   |  | Feb 12/08                
| | 175,000   |  | Aug 12/08                
| | 175,000   |  | Feb 12/09                
| | 700,000   |  |                          
| | 2,000,000 |  | Vest at 25% upon reaching
| |           |  | certain milestones       
| | 300,000   |  | Sept 22/07               
| | 300,000   |  | Mar 22/08                
| | 600,000   |  |                          
| | 3,300,000 |  |                          

During the three months ended March 31,
2007, the Company granted directors, consultant and officers 1,300,000 stock
options with a total fair value of $507,000 (no compensation expense has been
recorded for the 2,000,000 options granted as their vesting is contingent upon
performance). As the stock options have a graded vesting schedule, the total
non-cash compensation cost recognized during the period was $24,324.

The fair value of each option grant was
estimated on the date of the grant using the Black-Scholes option valuation
model. 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.

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 6                      

|Note 5 | Capital Stock Notes 6 and 7  (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 following assumptions:

| |                                | 2007         
| | ------------------------------ | -------------
| |                                |              
| | Expected dividend yield        | 0.0%         
| | Expected volatility            | 263% - 214%  
| | Risk-free Interest Rate        | 4.80% - 4.51%
| | Weighted average term in years | 4.5          
| | Weighted average fair value    | $0.39        

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

|Note 6 | Commitments Notes 5 and 7
|------ | --------------------------

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.

By an agreement dated February 13,
2007, the Company will collaborate with a vendor to acquire the exclusive rights
to commercialize certain technology relating to the analysis/diagnostic fields
(BioLED Technology), contract the vendor 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 GBP3,450,000 (US$6,709,615) 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 25% and become exercisable, both on achievement of milestones as set out
in the agreement and will be exercisable within a period of 5 years from the
date of vesting. The estimated dates of the milestones are as follows: May 13,
2008, February 13, 2009, August 13, 2009 and February 13, 2010.

---

|Acrongenomics Inc.                        
|------------------------------------------
|(A Development Stage Company)             
|Note s to the Interim Financial Statements
|March 31, 2007                            
|(Stated in US Dollars)                    
|(Unaudited)  Page 7                      

|Note 6 | Commitments Notes 5 and 7  (contd)
|------ | -------------------------------------

Payment schedule:

| | Prior to December 31, 2006 (paid) | GBP 575,000         | US$ 1,077,780      
| | --------------------------------- | ------------------- | -------------------
| | April, 2007 (GBP 530,000 paid)    | GBP 575,000         | US$ 1,128,438      
| | October, 2007                     | GBP 575,000         | US$ 1,128,438      
| | April, 2008                       | GBP 575,000         | US$ 1,128,438      
| | October, 2008                     | GBP 575,000         | US$ 1,128,438      
| | April, 2009                       | GBP
      575,000   | US$
      1,128,438
| |                                   |                     |                    
| |                                   | GBP
      3,450,000 | US$
      6,719,970

The term of the agreement is until
August 13, 2009, unless terminated earlier or the Company extends the term.

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

|Note 7 | Subsequent Events Note 5
|------ | -------------------------

On April 23, 2007, the Company executed
stock subscription agreements for private placements totalling 799,295 units at
$1.10 per unit for total proceeds received of $879,224. Each unit consists of
one common share of the Company and one-half common share purchase warrant. Each
warrant entitles the holder to purchase one additional common share of the
Company at $1.50 until October 23, 2008.

---

PART II

|ITEM 2. | MANAGEMENT DISCUSSION AND ANALYSIS AND PLAN
      OF OPERATION
|------- | --------------------------------------------------------------

This quarterly report contains forward-looking statements as
that term is defined in Section 27A of the United States Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. 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.

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

In this annual 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 means 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 the corporation to Acrongenomics, Inc.

We are a development stage company focusing on investing and
commercializing novel technology platforms concerning the Life Sciences sector.
Initially, we focused our research and development efforts in the In Vitro
Diagnostic (IVD) sector and in the year ended December 31, 2004, we acquired
certain patent and patent applications through the issuance of 4,000,000 shares
of common stock. This acquisition provided our company with its first product,
known as EP-CAM Detection Kit, which was a molecular diagnostic test for
micrometastatic cancer of epithelial origin. At the same time, we entered into a
strategic collaboration with EuroGenet Labs S.A., a Greek research laboratory
located in Athens, Greece, in order to explore future prospects by evaluating
the technology behind existing implementations.

As of December 31, 2005, we implemented a patent strategy to
provide us with a proprietary position in the field of molecular diagnostics
products. We currently own patents for EP-CAM Detection Kit and patent
applications for other related technologies.

We then estimated that our proprietary molecular diagnostics
technology platform still required extensive research costs and experiments for
the next two to three years before it reached a stage to attract the interest of
large pharmaceutical/diagnostics companies. We also felt that the series of
experiments required to advance our proprietary molecular diagnostic
technologies needed to be conducted by highly qualified personnel that could
devote 100% of their efforts to the project. Most probably, it would also
require collaborations with international university research centers equipped
with highly trained personnel and appropriate instruments for such purpose.

In early 2006, our Board of Directors decided that to devote
100% of the companys attention and efforts on a single project such as the
molecular diagnostic technology platform for the next two to three years would
involve too

---

much risk and market exposure., Therefore, it was necessary for
our company to diversify its research activities. On February 13, 2006, after
the resignation of Dr. Leftheris Georgakopoulos, we entered into an agreement
with him, for the return of the 4,000,000 shares of our common stock in exchange
for a royalty of fifty percent (50%) over any revenue that we would generate
from any future products based on certain patents regarding the molecular
diagnostic technology platforms.

On February 14 2006, Mr. Constantine Poulios, LL.M. was
appointed as President. Mr. Poulios had been serving as a member of our Board of
Directors and as a Vice President since July 6, 2004. As of the same date, Mr.
Platon Tzouvalis, MSc., was also appointed as Vice President and as a member of
our Board of Directors. On February 24, 2006, Dr. Manos Topoglidis was appointed
as the Chief Technology Officer, a member of our Board of Directors and as a
member of our Scientific Advisory Board.

On October 5, 2006, Mr. Platon Tzouvalis MSc., Vice President
of the company was appointed as President, replacing Mr. Constantine Poulios,
who had resigned from the company to pursue other opportunities.

On May 8, 2007, the Company appointed Dr. Evan Manolis to the
Board of Directors and Scientific Committee.

Dr. Manolis received his B.Sc. from University of Illinois at
Chicago in 1987 and his M.D. in surgery from Southern Illinois University
Medical School in 1991. He received extensive postgraduate training in general
surgery internship and residency from the Medical College in Ohio. Dr. Manolis
practices plastic surgery in Chicago and Orland Park, Illinois and has been in
the profession for 16 years.

Our Current Focus  BioLED Technology

On May 22, 2006, we signed a Joint 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 London, 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 such
Joint 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.

On February 13, 2007 we entered into a Development Agreement
with Molecular Vision Ltd. This agreement replaces the Development Agreement
entered into on May 22, 2006. The replacement agreement extends terms for
payments and amends various other terms. The replacement agreement also
re-prices the exercise price of 2,000,000 options granted to Molecular Vision
Ltd. from $2.00 to $0.50.

On March 8, 2007, Acrongenomics partner, Molecular Vision
Ltd., successfully demonstrated their BioLED Lab-on-a-Chip Technology using
their patented, organic semi conductor technology in a high sensitivity, small
size, medical diagnostic device that took place at Imperial College in London,
UK. The device demonstrated its technological capability to measure biomarkers
with high sensitivity and at a low cost.

Acrongenomics and Molecular Vision believe that this technology
is capable of further miniaturization along with large scale, low cost
manufacturing, which will bring forward disposable, Point-of-Care diagnostic for
large range markers.

On April 17, 2007 Acrongenomics was pleased to announce that
its partner Molecular Vision had been successful in winning the £250,000 Royal
Society Brian Mercer Award for Innovation 2007. This is a prestigious award from
the UKs Royal Society to develop low-cost, high throughput, reel to reel,
manufacturing techniques for plastic electronics.

---

BioLED Technology

We plan to develop the BioLED Technology in order to meet a great market demand in the medical diagnostics, biosensors and analytical instrumentation market sector by providing miniaturized chemical and biological detectors with high sensitivity and
functionality at low cost. Terms such as Lab-on-a-Chip or Point-of-Care Testing (POCT) describe the concept of having specialized, light weight, readily portable and easy to use devices to perform complex biological tests at
the site where they are most needed. Traditionally, most of the complex biological tests require specialized laboratories equipped with bulky, expensive equipment and highly trained personnel. To realize the goal of portable diagnostic devices for
Point-of-Care testing, one will need to overcome the difficulties of the lack of suitable miniaturization, low-power consumption and optical detection systems.

By combining the microfluidic technology with the pLED/OLED (Organic Light Emitting Diodes), we believe that BioLED Technology once developed, will offer medical devices at the Point Of Care level that will allow the quantitative and qualitative
analysis of medical conditions with high sensitivity and functionality at low cost.

Microfluidics refers to fluid flow in a network of microchannels which can be integrated on disposable, low cost Lab-on-a-Chip cartridges, while the flow of liquids or gases is controlled through valves and switches. Microfluidics can automatically
guide a test sample through the various stages of an assay, perform multiple functions including sample purification, mixing with analytes, labeling, reaction and separation of products. Microfluidics can also be designed to guide the processed test
sample to the integrated detection component of a Point-of-Care testing device.

Low cost, organic semiconductor polymer Light Emitting Diodes (pLED) with tunable optical properties provide BioLED Technology with low-power consumption and optical detectable components in a Point-of-Care testing device. Under electrical
excitation the polymer emits light via radiative combination of injected electrons and holes and therefore may be used as a light source. The same structure can then be used in reverse as a photodetector by illuminating the polymer in order to
generate a measurable electrical current.

In a future Point-of-Care testing device based on the BioLED Technology, reagents of an assay will be mixed with the body fluid (blood, urine) through the microfluidic network. The resulting mixture will be excited by the integrated, battery driven
pLED and the resulting light-signal will be detected by the integrated photodetector, which will generate an electrical readout.

A typical assay for disease markers comprises two steps. First, specific immobilised antibodies are used to capture the protein markers inside the detection zone. Secondly, fluorescently labelled detection antibodies specific to the
protein marker are flowed over the detection zone. The detection antibodies bind to captured protein markers and unbound excess detection antibodies are rinsed away. The labelled antibodies can then be excited with our pLED light sources and any
emitted fluorescence is detected with our organic photodiodes. Without disease markers no detection antibodies are retained, resulting in zero fluorescence.

This sandwich immunoassay format is applicable to most protein based disease markers as long as suitable specific antibodies are available.

Market Potential

Following a primary market research, a number of potential Point-of-Care diagnostic device applications were evaluated in terms of feasibility, market needs, generating revenue, market growth rate and competition. Among these, four disease areas
were chosen to be our primary targets for BioLED device development. These Point-of-Care testing devices will enable on-the-spot quantitative and qualitative diagnosis from a few drops of blood, urine for:

---

Diabetes Management (Kidney Health Markers):

The prevalence of diabetes for all age-groups worldwide was
estimated to be 2.8% in 2000 and 4.4% in 2030. The total number of people with
diabetes is projected to rise from 171 million in 2000 to 366 million in 2030
(Global Prevalence of Diabetes. Diabetes Care 27:1047-1053, 2004).
Microalbuminuria, a well known diabetic nephropathy marker, is defined by
increased urinary Human Serum Albumin excretion. The Albumin Blue 580 (AB 580)
assay is based on a red emitting fluorophore with specific affinity to human
serum albumin. Upon binding to the human serum albumin, the fluorescence
efficiency of AB 580 increases by two orders of magnitude. AB 580 shows
significant fluorescence only when human serum albumin is present. If diagnosed
at an early stage, Microalbuminuria can be treated before its progression to the
development of diabetic nephropathy (kidney failure). Approximately 25  30% of
all diabetics develop evidence of nephropathy.

Cardiovascular Diseases (Cardiac Markers):

Cardiovascular diseases are responsible for the deaths of 17
million people worldwide each year, making them the developed worlds leading
cause of death according to the World Health Organization. 32 million heart
attacks and strokes per year demonstrate the need for the development of
accurate, cost efficient and accessible diagnostics. Conventional diagnostic
techniques, however, are costly, time consuming and of limited predictive
potential. A smarter diagnostic approach is the in vitro measurement of various
cardiac biomarkers of high preventive value, using a Point-of-Care device. The
cardiac biomarker tests are based on a sandwich immunoassay format. The
detectable species is the secondary antibody labelled with a fluorescent tag.
The antibodies to be used are anti-myoglobin (Myoglobin), CK-MB antibody
(creatine kinase), anti-troponin I (Troponin I).

Sexually Transmitted Diseases:

Sexually Transmitted Diseases remain a major public health
challenge in both developed and developing countries. According to the World
Health Organization, more than 340 million new cases of sexually transmitted
infections occur every year, worldwide, in people aged 15-49 years. These
infections can be a major cause of illness, infertility and even death. Most of
them, however, can be treated and cured easily and with low cost, if diagnosed
early enough. As previously discussed the sandwich immunoassay format is
applicable to most protein based disease markers as long as suitable specific
antibodies are available. For sexually transmitted diseases, we suggest the
following assays: anti HIV-1 antibodies captured with HIV env antigen (HIV),
Hepatitis B surface antigen (Hepatitis B), Anti-HCV (Hepatitis C), Chlamydia
antigen (Chlamydia).

Substances of Abuse:

According to the World Drug Report 2005, 5% of the global
population (translating into about 200 million people) have consumed illicit
drugs at least once in the last 12 months. This number illustrates the severity
of substance abuse as a major healthcare and socioeconomic problem. Diagnosis of
substances of abuse is imperative to the judicial system, professional,
professional sports, large corporations and healthcare. For substance of abuse,
we target the following markers: methamphetamine/M Amp (Ecstacy),
tetrahydrocannabinol/THC (cannabis), benzoylecgonine (Cocaine). Easy, fast,
simple and on-site diagnosis has considerable commercial value and huge revenue
generating potential.

COMPLIANCE WITH GOVERNMENT REGULATION

Once fully developed, we intend to market our BioLED Technology
based Point-of-Care testing devices primarily to General Physicians and
clinics/health centres mainly in the United States and in Europe. We are aware
that the production and marketing of medical testing devices are subject to the
laws and regulations of governmental authorities in the United States and all
other countries where the devices will be marketed. Specifically, in the United
States, the Food and Drug Administration (FDA), among other agencies, regulates
new product approvals to establish safety and efficacy of these products.
Governments in other countries have similar legal bodies handling the
requirements for testing and marketing.

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The Regulatory Process

FDA in the United States and Medical Devices Directive in
Europe, are the official bodies that cover the regulatory requirements for
medical devices. Medical devices are classified into Class I, II, and III.
Regulatory control increases from Class I to Class III. The device
classification regulation defines the regulatory requirements for a general
device type. Most Class I devices are exempt from Pre market Notification
510(k); most Class II devices require Pre market Notification 510(k); and most
Class III devices require Pre-market Approval (PMA).

Class I devices are defined as non-life sustaining.
These products are the least complicated and their failure poses little
risk.

Class II devices are more complicated and present more
risk than Class I, though are also non-life sustaining. They are also subject to
any specific performance standards.

Class III devices sustain or support life, so that their
failure is life threatening.

The basic regulatory requirements that manufacturers of medical
devices distributed in the U.S. must comply with are:

Pre-market Notification 510(k), unless
exempt, or Pre-market Approval (PMA),

Establishment registration on form
FDA-2891,

Medical Device Listing on form
FDA-2892,

Quality System (QS) regulation,

Labeling requirements, and

Medical Device Reporting (MDR)

We envisage that our devices will be classified as Class I. Our
devices will be used to diagnose rather than treat medical conditions.
Additionally BioLED medical devices are non-invasive and the assays that will be
used for testing are already existed in the market. BioLED technology, once
developed, will cover a great medical niche and it may undergo fast track review
since there is no other such technology available in the market. Therefore we
endeavor that regulatory procedures will be relatively benign and quick.

Regardless of how our technology is regulated, the Federal
Food, Drug, and Cosmetic Act and other Federal statutes and regulations govern
or influence the research, testing, manufacture, safety, labeling, storage,
record-keeping, approval, distribution, use, reporting, advertising and
promotion of our future products. Noncompliance with applicable requirements can
result in civil penalties, recall, injunction or seizure of products, refusal of
the government to approve or clear product approval applications or to allow us
to enter into government supply contracts, withdrawal of previously approved
applications and criminal prosecution.

Product Approval in the United States

We are currently only in the developmental stage of our
technology, and therefore, we have not begun the process of seeking regulatory
approval from the FDA. Once BioLED Technology is fully developed, we intend to
consult with an FDA advisor to assist us in determining our path in the process
toward gaining regulatory approval. There can be no assurance that our
technology and potential products will ultimately receive regulatory
approval.

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We believe that BioLED Technology, if successfully developed,
may be considered appropriate as part of a medical device and will be then
subjected to the requirements of FDA for clinical testing to demonstrate safety
and effectiveness prior to the approval.

Product Approval in Europe

If we successfully develop our BioLED Technology and potential
Point-of-Care testing devices and seek regulatory approval in Europe, we believe
our BioLED Technology may be regulated in Europe as a Class I Sterile, Class IIb
or Class III medical device, under the authority of the Medical Device
Directives being implemented by European Union member countries. These
classifications apply to medical laboratory equipment and supplies including,
among other products, many devices that are used for the collection and
processing of blood for patient therapy.

The applicable regulations vest the authority to permit
affixing of the CE Mark with various notified bodies. These are private and
state organizations which operate under license from the member states of the
European Union to certify that appropriate quality assurance standards and
compliance procedures are followed by developers and manufacturers of medical
device products or, alternatively, that a manufactured medical product meets a
more limited set of requirements. Notified bodies are also given the
responsibility for determination of the appropriate standards to apply to a
medical product. Receipt of permission to affix the CE Mark enables a company to
sell a medical device or product in all European Union member countries. Other
registration requirements may also need to be satisfied in certain countries. We
have not received permission from a notified body to affix the CE Mark to our
BioLED Technology, nor have we as yet requested such permission.

DISTRIBUTION METHODS FOR OUR PRODUCTS

Once fully developed, we intend to market our BioLED Technology
based Point-of-Care testing devices primarily to General Physicians and
clinics/health centres mainly in the United States and in Europe.

STATUS OF PRODUCT

On March 8, 2007 a demonstrator device was presented at
Imperial College in London, using MVL's patented, organic semiconductor
technology in a high sensitivity, small size, medical diagnostic device.

The device demonstrated its technological capability to measure
biomarkers with high sensitivity and at low cost.

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

We do not yet have any customers or customer contracts. We
intend to have many customers and do not anticipate any dependence on one or
more customers.

EMPLOYEES

The Company currently does not have any employees. Mr. Platon
Tzouvalis, President and Mr. Manos Topoglidis, CTO are currently bound by
consulting agreements dated October 1, 2006 which terminate March 31, 2007.The
company is currently negotiating employment contracts for both Mr. Tzouvalis and
Mr. Topoglidis. The company has one additional consultant..

RISK FACTORS

Much of the information included in this annual 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

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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.

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 commercialise 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 consolidated financial statements
for the year ended December 31, 2006.

Our likelihood of profit depends on our ability to develop
and commercialise products based on our BioLED Technology, which is currently in
the development stage. If we are unable to complete the development and
commercialisation 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 commercialisation 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 operation
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 commercialisation and we may not be

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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.

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
commercialise its 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 commercialise 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 commercialisation 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
commercialisation 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 its potential Point-of-Care testing
devices, our ability to commercialise the BioLED Technology will be limited
severely.

We must obtain the approval from the FDA and respective
European regulatory bodies prior to the commercialisation 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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Even if we obtain regulatory approvals to commercialise 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.

We depend to a significant extent on certain key personnel,
the loss of any of whom may materially and adversely affect our company.

Our success depends on a significant extent to the continued
services of certain highly qualified scientific and management personnel,
including our President and Vice President, Platon Tzouvalis, our Chief
Financial Officer, Ron Lizée, and our Chief Technology Officer, Manos
Topoglidis. We face competition for qualified personnel from numerous industry
sources, and there can be no assurance that we will be able to attract and
retain qualified personnel on acceptable terms. The loss of service of any of
our key personnel could have a material adverse effect on our operations or
financial condition. In the event of the loss of services of such personnel, no
assurance can be given that we will be able to obtain the services of adequate
replacement personnel. We do not maintain key person insurance on the lives of
any of our officers or employees.

Our success depends in large part on our ability to develop
and protect our BioLED Technology and its 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

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might not have adequate remedies for any breach. If this were
to occur, our business and competitive position would suffer.

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 commercialisation 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.

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

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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.

Management and Administration Services

During the first half of 2006 we occupied office space
consisting of approximately 1,200 square feet, located at 38A Posidonos Avenue
17455 Alimos, Athens, Greece, for certain marketing support and research
supervision functions. We rent this space, along with reception, photocopy and
facsimile transmission services from EuroGenet Labs, Inc. a related party for
$2,000 per month on a month to month basis. On June 30, 2006 we terminated this
arrangement with EuroGenet.

On July 1, 2006 we entered into a management agreement with
CASAD Sarl for office space and administration services for our corporate
headquarters in Geneva Switzerland. We currently occupy approximately 1500 sq.
feet on a month to month basis for a fee of $10,000 per month.

PLAN OF OPERATION

This discussion and analysis should be read in conjunction with
our financial statements and the notes thereto included elsewhere in this annual
report. Our consolidated financial statements are prepared in accordance with
United States generally accepted accounting principles. All references to dollar
amounts in this section are in United States dollars unless expressly stated
otherwise. Please see our Note on Forward Looking Statements and Risk
Factors for a list of our risk factors.

We are 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 22, 2006, we entered into
a joint development agreement with Molecular Vision Limited to acquire the
exclusive rights to develop and commercialize the BioLED Technology in the
medical fields of diabetes management, cardiac diseases, sexually transmitted
diseases and substances of abuse. Under the Joint Development Agreement,
Molecular Vision Limited will continue to use reasonable endeavours to conduct
research projects to further advance and develop the BioLED Technology. In
exchange for the research and development activities carried out by Molecular
Vision Limited, we will pay Molecular Vision Limited the amount of £3,450,000
over the next 3 years as well as 30% of all gross revenue that we will receive
from any future sale/license of the developed Point-of-Care testing devices. On
February 13, 2007 we entered into a Development Agreement with Molecular Vision
Ltd.. This agreement replaces the Development Agreement entered into on May 22,
2006. The replacement agreement extends terms for payments and amends various
other terms. The replacement agreement also re-prices the exercise price of
2,000,000 options granted to Molecular Vision Ltd. from $2.00 to $0.50.

Over the next twelve months, we plan to continue our
cooperation with Molecular Vision Limited to pursue our primary objective of
developing the first generic prototype of the BioLED Technology platform. We
intend to first focus on the development of light sources, filters and detectors
for fluorescence detection. We also intend to develop microfluidics and
microchips for blood handling and fine tuning integration of microchips for
fluorescence detection.

At the same time, we also intend to work with Molecular Vision
Limited to begin setting up the prototype Point-of-Care testing device for
diabetes management. In this regard, we plan to begin evaluation and selection
of

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chemiluminescence assay. We also plan to fabricate our first
Point-of-Care device and hopefully by the summer of 2007 we will be able to
conduct our first chemiluminescence based albumin and creatinine detection with
urine samples. 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
(FDA) for approval.

We have not generated any revenues and our operating activities
have resulted in a loss of $158,142 for the three months ended March 31, 2007.
This negative cash flow is attributable to our operation expenses, including but
not limited to, research and development expense 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 twelve months will be approximately $3,600,000, generally falling in
two major categories: research and development costs and general and
administrative expenses.

Research and Development Costs

For the next twelve months, we estimate that our research and
development costs will be approximately $2,500,000. We will make payments to
Molecular Vision Limited as required under the Development Agreement for
Molecular Vision Limited to carry out the research and development projects we
have outlined for the next twelve months.

General and Administrative Expenses

For the next twelve months, we estimate that our general and
administrative expenses will be approximately $1,100,000. These expenses will
include approximately $720,000 on consulting, stock-based compensation and
investor relations, approximately $200,000 on office supplies, office rent,
travel and accommodations and $180,000 on professional fees, which consist
primarily of accounting, auditing fees for the year-end audit and legal fees for
securities advice, directors liability insurance and cost of fundraising.

We do not expect to generate any revenues in the next twelve
months. Our future products will likely not be ready for sale for at least 1
year, if at all.

Results of Operations

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.

However, we have been successful in attracting potential
investors and shareholders through various private placements. This has allowed
our company to meet all of our overhead obligations as well as maintaining our
continuous pursuit to complete our product research and development. During the
first quarter of 2007 we sold 460,909 common shares in various private
placements for total gross proceeds of $335,000.

We incurred operating expenses in the amount of $158,142 for
the three months ended March 31, 2007, compared with expenses of $364,484 the
same period from the previous year. The operating expenses of $158,142 incurred
during the three (3) months ended March 31, 2007 included, $30,000 for rent and
management fees, nil for research and development, $9,282 for office expenses,
travel, bank charges (net of interest income), transfer agents, and foreign
exchange, nil for public relations, $47,136 for appraisals, accounting, auditing
and legal fees, $47,400 for consultations, and $24,324 for stock-based
compensation.

Financial Condition and Liquidity

We had cash on hand of $257,176 as at March 31, 2007, compared
with $4,552 as at March 31, 2006. We had a working capital of $16,157 at March
31, 2007, compared to a working capital deficit of $185,025 as at March 31,
2006.

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Our present cash reserves of $257,176 is only sufficient to
meet our cash requirements for one or two months. We will have to raise
additional funds from the private placement of our securities to meet our
budgeted operating expenses of $3,600,000 for the next twelve months.

Subsequent to March 31, 2007, the Company sold 699,295 common
shares @ $1.10 per share for total gross proceeds of $769,224, before any
commission pay-outs and received another 100,000 share subscriptions @ $1.10 per
share for a value of $110,000. Our cash on hand plus the proceeds from the sale
of shares was required to fulfill the majority of our obligations under our
Development Agreement with Molecular Vision. Prior to the filing of our
quarterly 10-QSB for March 31, 2007, approximately $80,000 remained to be paid
to Molecular Vision of the $1,128,438 required.

If we are successful on completing an equity financing,
existing shareholders will experience a dilution of their interest in our
company. In the event we are not successful in obtaining such financing when
necessary, we may not be able to proceed with implementation of all our proposed
projects in our business plan.

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.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with
United States generally accepted accounting principles requires our management
to make estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Our management routinely makes judgments and estimates about the effects of
matters that are inherently uncertain.

PART II  OTHER INFORMATION

|Item 1. | Legal Proceedings
|------- | -----------------

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

|Item 2. | Recent Sales of Unregistered Securities and
      Use of Proceeds
|------- | -----------------------------------------------------------------

None

|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------

None

|Item 4. | Submission of Matters to a Vote of Security
      Holders.
|------- | ----------------------------------------------------------

The first proposal to elect Platon Tzouvalis, Ronald Lizée and
Dr. Manos Topoglidis as directors or our Company was passed by 99.9% of the
votes cast by shareholders, or 8,144,242 common shares in favour of the
resolution, 0 common shares against the resolution and 3,200 common shares
abstaining from the resolution.

The second proposal to ratify the appointment of Amisano Hanson
as the independent auditors of the Company was passed by 99.9% of the votes cast
by shareholders, or 8,144,192 common shares in favour of the resolution, 3,200
common shares against the resolution and 50 common shares abstaining from the
resolution.

---

|Item 5. | EXHIBITS.
|------- | ---------

|(3)   | Articles of
        Incorporation and By-laws                                                                                                                                                                                
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1   | 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 Contracts                                                                                                                                                                                                           
|10.1  | 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.                                                                                                                                              
|(31)  | Section 302
        Certification                                                                                                                                                                                            
|31.1* | Rule
        13a-14(a) Certification of Principal Executive Officer.                                                                                                                                                         
|31.2* | Rule
        13a-14(a) Certification of Principal Financial Officer and Principal Accounting
        Officer.                                                                                                                
|(32)  | Section 906 Certification                                                                                                                                                                                                    
|32.1* | Certification
        of Principal 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 Principal Financial Officer and Principal Accounting Officer Pursuant
        to 18 U.S.C. Section 1350, as Pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.                      

*filed herewith

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

ACRONGENOMICS, INC.

|By: | /s/ Platon Tzouvalis, President                                      | 
|--- | -------------------------------------------------------------------- | 
|    | Platon Tzouvalis, President                                          | 
|    | (Principal Executive Officer)                                        | 
|    | Date: May 15, 2007                                                   | 
|    |                                                                      | 
|By: | /s/ Ron Lizée                                                        | 
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director     | 
|    | (Principal Financial Officer and
      Principal Accounting Officer) | 
|    | Date: May 15, 2007                                                   | 

---

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

|By: | /s/ Platon Tzouvalis, President                                      | 
|--- | -------------------------------------------------------------------- | 
|    | Platon Tzouvalis, President                                          | 
|    | (Principal Executive Officer)                                        | 
|    | Date: May 15, 2007                                                   | 
|    |                                                                      | 
|By: | /s/ Ron Lizée                                                        | 
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director     | 
|    | (Principal Financial Officer and
      Principal Accounting Officer) | 
|    | Date: May 15, 2007                                                   | 

---