---

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 September 30, 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)

N/A(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 [   ]

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:

17.203.251 common shares issued and outstanding as of November
  2, 2007.

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

---

PART I

Item
1.                   
 Financial Statements

Our 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

September 30, 2007

(Stated in US Dollars)

(Unaudited)

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  INTERIM BALANCE SHEETS
  September 30, 2007 and December 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)

|                                                              |   | September 30, |   |   | December 31, |  
|------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                              |   | 2007          |   |   | 2006         |  
|**ASSETS**                                                    |  
|                                                              |   |               |   |   |              |  
|Current                                                       |   |               |   |   |              |  
|Cash                                                          | $ | 19,365        |   | $ | 4,552        |  
|Amount receivable                                             |   | 4,015         |   |   | -            |  
|Share subscriptions receivable
       Note 5                 |   | 51,700        |   |   | -            |  
|                                                              |   |               |   |   |              |  
|                                                              | $ | 75,080        |   | $ | 4,552        |  
|                                                              |   |               |   |   |              |  
|LIABILITIES                                                   |  
|                                                              |   |               |   |   |              |  
|Current                                                       |   |               |   |   |              |  
|Accounts
      payable and accrued liabilities Notes 3 and 6 | $ | 527,405       |   | $ | 161,304      |  
|Loans payable  Note
      4                                  |   | 1,000         |   |   | 28,273       |  
|                                                              |   |               |   |   |              |  
|                                                              |   | 528,405       |   |   | 189,577      |  
|                                                              |   |               |   |   |              |  
|STOCKHOLDERS EQUITY (DEFICIENCY)                             |  
|                                                              |   |               |   |   |              |  
|Common stock, $0.001 par value  Notes 5, 6 and 7             |   |               |   |   |              |  
|100,000,000 shares authorized                                 |   |               |   |   |              |  
|17,013,251 shares issued
      (2006: 14,131,457)             |   | 17,013        |   |   | 14,131       |  
|Additional paid-in capital                                    |   | 13,308,345    |   |   | 10,475,544   |  
|Share subscriptions (receivable)                              |   | (3,300        | ) |   | 40,000       |  
|Deficit accumulated during the development
      stage        |   | (13,775,383   | ) |   | (10,714,700  | )
|                                                              |   |               |   |   |              |  
|                                                              |   | (453,325      | ) |   | (185,025     | )
|                                                              |   |               |   |   |              |  
|                                                              | $ | 75,080        |   | $ | 4,552        |  

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  INTERIM STATEMENTS OF OPERATIONS 
  for the three and nine months ended September 30, 2007 and 2006 
  and from August 17, 1999 (Date of Inception) to September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

August 17,1999 (Date ofThree Months Ended
      
      
      Nine Months Ended
      
      
      Inception) toSeptember 30,
      
      
      September 30,
      
      
      Sept 30,2007
      
      
      2006
      
      
      2007
      
      
      2006
      
      
      2007ExpensesAccounting and audit fees  Note 3
      $
      26,321
      
      $
      24,492
      
      $
      84,024
      
      $
      94,878
      
      $
      373,887Amortization of patents
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      741,430Appraisals and business plan
      
      24,731
      
      
      -
      
      
      24,731
      
      
      -
      
      
      39,231Bank charges
      
      1,542
      
      
      361
      
      
      2,992
      
      
      1,514
      
      
      10,647Consulting fees  Note 3
      
      49,500
      
      
      27,032
      
      
      146,400
      
      
      74,207
      
      
      979,399Foreign exchange (gain)
      
      (228
      )
      
      111
      
      
      (1,289
      )
      
      1,712
      
      
      (2,030
      )Legal fees - Note 3
      
      2,435
      
      
      17,837
      
      
      19,246
      
      
      69,430
      
      
      251,410Management fees  Note
        3
      
      675,000
      
      
      30,000
      
      
      735,000
      
      
      30,000
      
      
      795,000Office and miscellaneous
      
      1,770
      
      
      19,945
      
      
      9,909
      
      
      26,041
      
      
      62,271Public relations and donation
        (recovery)
      
      -
      
      
      (20,000
      )
      
      -
      
      
      100,000
      
      
      547,007Rent - Note 3
      
      -
      
      
      -
      
      
      -
      
      
      12,000
      
      
      36,000Research and development 
        Note 3
      
      1,157,109
      
      
      613,313
      
      
      1,755,754
      
      
      1,891,093
      
      
      8,437,723Stock-based compensation  Notes 3 and
        5
      
      115,774
      
      
      -
      
      
      231,775
      
      
      529,673
      
      
      1,125,448Telephone
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      2,399Transfer agent and filing fees
      
      2,178
      
      
      2,988
      
      
      4,256
      
      
      3,988
      
      
      24,765Travel
      
      41,720
      
      
      43,533
      
      
      48,303
      
      
      58,251
      
      
      167,212Loss before the following
      
      (2,097,852
      )
      
      (759,612
      )
      
      (3,061,101
      )
      
      (2,892,787
      )
      
      (13,591,799
      )Interest income
      
      276
      
      
      -
      
      
      418
      
      
      16,979
      
      
      22,861Write-down of patents
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (8,004,447
      )Loss from continuing operations
      
      (2,097,576
      )
      
      (759,612
      )
      
      (3,060,683
      )
      
      (2,875,808
      )
      
      (21,573,385
      )Loss from discontinued operations
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (41,998
      )Net loss for the period
      $
      (2,097,576
      )
      $
      (759,612
      )
      $
      (3,060,683
      )
      $
      (2,875,808
      )
      $
      (21,615,383
      )Basic and diluted loss per share continuing operations
      $
      (0.13
      )
      $
      (0.05
      )
      $
      (0.20
      )
      $
      (0.18
      )Weighted average shares outstanding
      
      16,064,359
      
      
      13,839,427
      
      
      15,205,324
      
      
      15,807,302


SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  INTERIM STATEMENTS OF CASH FLOWS 
  for the nine months ended September 30, 2007 and 2006 and 
  for the period August 17, 1999 (Date of Inception) to September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|                                                  |   |                   |   |   |               |   |   | August 17,    |  
|------------------------------------------------- | - | ----------------- | - | - | ------------- | - | - | ------------- | -
|                                                  |   |                   |   |   |               |   |   | 1999 (Date of |  
|                                                  |   | Nine months ended |   |   | Inception) to |  
|                                                  |   | September 30,     |   |   | Sept 30,      |  
|                                                  |   | 2007              |   |   | 2006          |   |   | 2007          |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Cash Flows used in Operating Activities           |   |                   |   |   |               |   |   |               |  
|Loss from continuing operations                   | $ | (3,060,683        | ) | $ | (2,875,808    | ) | $ | (21,573,385   | )
|Items not affecting cash:                         |   |                   |   |   |               |   |   |               |  
|Amortization                                      |   | -                 |   |   | -             |   |   | 741,430       |  
|Shares
      issued for consulting fees           |   | -                 |   |   | -             |   |   | 468,000       |  
|Stock-based
      compensation                    |   | 231,775           |   |   | 529,673       |   |   | 1,125,448     |  
|Shares
      issued for management bonus          |   | 645,000           |   |   | -             |   |   | 645,000       |  
|Write-down
      of patents                       |   | -                 |   |   | -             |   |   | 8,004,447     |  
|Changes in non-cash working
      capital items:  |   |                   |   |   |               |   |   |               |  
|Amount receivable                                 |   | (4,015            | ) |   | -             |   |   | (4,015        | )
|Prepaid
      expense                             |   | -                 |   |   | (6,300        | ) |   | -             |  
|Accounts payable
      and accrued liabilities    |   | 366,101           |   |   | 541,282       |   |   | 527,405       |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Net cash used in operating activities             |   | (1,821,822        | ) |   | (1,811,153    | ) |   | (10,065,670   | )
|                                                  |   |                   |   |   |               |   |   |               |  
|Cash Flows used in Investing Activity             |   |                   |   |   |               |   |   |               |  
|Patents                                           |   | -                 |   |   | -             |   |   | (121,877      | )
|                                                  |   |                   |   |   |               |   |   |               |  
|Cash Flows provided by Financing Activities       |   |                   |   |   |               |   |   |               |  
|Common stock issued for cash                      |   | 1,863,908         |   |   | 88,000        |   |   | 9,877,603     |  
|Stock purchase warrants                           |   | -                 |   |   | -             |   |   | 370,307       |  
|Increase (decrease) in loans payable              |   | (27,273           | ) |   | 27,273        |   |   | 1,000         |  
|Advances from/to discontinued
      operations of |   |                   |   |   |               |   |   |               |  
|disposed subsidiary                               |   | -                 |   |   | -             |   |   | (41,998       | )
|                                                  |   |                   |   |   |               |   |   |               |  
|Net cash provided by financing activities         |   | 1,836,635         |   |   | 115,273       |   |   | 10,206,912    |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Increase (decrease) in cash during the period     |   | 14,813            |   |   | (1,695,880    | ) |   | 19,365        |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Cash, beginning of period                         |   | 4,552             |   |   | 1,741,998     |   |   | -             |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Cash, end of period                               | $ | 19,365            |   | $ | 46,118        |   | $ | 19,365        |  
|                                                  |   |                   |   |   |               |   |   |               |  
|Non-cash Transaction  Note 8                     |   |                   |   |   |               |   |   |               |  

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company)
  INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY) 
  from the period August 17, 1999 (Date of Inception) to September 30, 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  |  | 537,956    |  |   | 538          |  |   | 1,236,761  |   |   | -             |   |   | -           |   |   | 1,237,299   |  
|Capital stock issued for commission        |             |  | 50,594     |  |   | 50           |  |   | 116,316    |   |   | -             |   |   | -           |   |   | 116,366     |  
|Less: commission                           |             |  | -          |  |   | -            |  |   | (116,366   | ) |   | -             |   |   | -           |   |   | (116,366    | )
|Capital contribution                       |             |  | -          |  |   | -            |  |   | 6,000      |   |   | -             |   |   | -           |   |   | 6,000       |  
|Stock subscriptions                        |             |  | -          |  |   | -            |  |   | -          |   |   | 426,329       |   |   | -           |   |   | 426,329     |  
|Net loss for the year                      |             |  | -          |  |   | -            |  |   | -          |   |   | -             |   |   | (1,863,376  | ) |   | (1,863,376  | )
|                                           |             |  |            |  |   |              |  |   |            |   |   |               |   |   |             |   |   |             |  
|Balance, December 31, 2004                 |             |  | 15,565,550 |  |   | 15,565       |  |   | 10,314,734 |   |   | 426,329       |   |   | (1,920,267  | ) |   | 8,836,361   |  
|Common stock issued for cash               | - at $2.30  |  | 72,500     |  |   | 73           |  |   | 166,677    |   |   | -             |   |   | -           |   |   | 166,750     |  
|                                           | - at $2.40  |  | 108,168    |  |   | 108          |  |   | 259,495    |   |   | -             |   |   | -           |   |   | 259,603     |  
|                                           | - at $3.50  |  | 551,443    |  |   | 551          |  |   | 1,929,499  |   |   | -             |   |   | -           |   |   | 1,930,050   |  
|                                           | - at $4.00  |  | 915,125    |  |   | 915          |  |   | 3,659,585  |   |   | (386,329      | ) |   | -           |   |   | 3,274,171   |  
|Capital stock issued for commission        | - at $4.00  |  | 81,337     |  |   | 82           |  |   | 325,266    |   |   | -             |   |   | -           |   |   | 325,348     |  
|Less: commission                           |             |  | -          |  |   | -            |  |   | (325,348   | ) |   | -             |   |   | -           |   |   | (325,348    | )
|commission                                 |             |  | -          |  |   | -            |  |   | (24,900    | ) |   | -             |   |   | -           |   |   | (24,900     | )
|Common stock issued for cash pursuant      |             |  |            |  |   |              |  |   |            |   |   |               |   |   |             |   |   |             |  
|to exercise of warrants                    | - at $1.00  |  | 420,000    |  |   | 420          |  |   | 419,580    |   |   | -             |   |   | -           |   |   | 420,000     |  

/contd

SEE ACCOMPANYING NOTES

---

|Continued                                                                      
|-------------------------------------------------------------------------------
|ACRONGENOMICS, INC.                                                            
|(A Development Stage Company)                                                  
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                        
|from the period August 17, 1999 (Date of Inception) to September
      30, 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       |  
|                                        |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Stock-based compensation                |            |  | -          |   |   | -            |   |   | 364,000    |   |   | -             |   |   | -           |   |   | 364,000     |  
|Common stock issued for consulting      | - at $4.68 |  | 100,000    |   |   | 100          |   |   | 467,900    |   |   | -             |   |   | -           |   |   | 468,000     |  
|services                                |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Net loss from continuing operations     |            |  | -          |   |   | -            |   |   | -          |   |   | -             |   |   | (14,152,210 | ) |   | (14,152,210 | )
|Capital contribution from subsidiary on |            |  | -          |   |   | -            |   |   | (6,000     | ) |   | -             |   |   | -           |   |   | (6,000      | )
|disposition                             |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Net loss from discontinued operations   |            |  | -          |   |   | -            |   |   | -          |   |   | -             |   |   | (1,935      | ) |   | (1,935      | )
|                                        |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Balance, December 31, 2005              |            |  | 17,814,123 |   |   | 17,814       |   |   | 17,550,488 |   |   | 40,000        |   |   | (16,074,412 | ) |   | 1,533,890   |  
|Cancellation of shares                  |            |  | (4,000,000 | ) |   | (4,000       | ) |   | (7,836,000 | ) |   | -             |   |   | 7,840,000   |   |   | -           |  
|Stock-based compensation                |            |  | -          |   |   | -            |   |   | 529,673    |   |   | -             |   |   | -           |   |   | 529,673     |  
|Common stock issued for cash            | - at $0.75 |  | 317,334    |   |   | 317          |   |   | 237,683    |   |   | -             |   |   | -           |   |   | 238,000     |  
|Less: share issue costs                 |            |  | -          |   |   | -            |   |   | (6,300     | ) |   | -             |   |   | -           |   |   | (6,300      | )
|Net loss for the year                   |            |  | -          |   |   | -            |   |   | -          |   |   | -             |   |   | (2,480,288  | ) |   | (2,480,288  | )
|                                        |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Balance, December 31, 2006              |            |  | 14,131,457 |   |   | 14,131       |   |   | 10,475,544 |   |   | 40,000        |   |   | (10,714,700 | ) |   | (185,025    | )
|Common stock issued for cash            | - at $0.50 |  | 220,000    |   |   | 220          |   |   | 109,780    |   |   | (40,000       | ) |   | -           |   |   | 70,000      |  
|                                        | - at $0.80 |  | 250,000    |   |   | 250          |   |   | 199,750    |   |   | -             |   |   | -           |   |   | 200,000     |  
|                                        | - at $1.10 |  | 1,535,704  |   |   | 1,535        |   |   | 1,687,739  |   |   | (55,000       | ) |   | -           |   |   | 1,634,274   |  
|Common stock issued for commission      | - at $0.50 |  | 22,000     |   |   | 22           |   |   | 10,978     |   |   | -             |   |   | -           |   |   | 11,000      |  
|                                        | - at $0.75 |  | 20,000     |   |   | 20           |   |   | 14,980     |   |   | -             |   |   | -           |   |   | 15,000      |  
|                                        | - at $1.10 |  | 84,090     |   |   | 85           |   |   | 92,416     |   |   | -             |   |   | -           |   |   | 92,501      |  
|Less: commission  shares               |            |  | -          |   |   | -            |   |   | (118,501   | ) |   | -             |   |   | -           |   |   | (118,501    | )
|Less: commission  cash                 |            |  | -          |   |   | -            |   |   | (40,366    | ) |   | -             |   |   |             |   |   | (40,366     | )
|Common shares issued for signing bonus  | - at $0.86 |  | 750,000    |   |   | 750          |   |   | 644,250    |   |   | -             |   |   | -           |   |   | 645,000     |  
|Stock-based compensation                |            |  | -          |   |   | -            |   |   | 231,775    |   |   | -             |   |   | -           |   |   | 231,775     |  
|Net loss for the period                 |            |  | -          |   |   | -            |   |   | -          |   |   | -             |   |   | (3,060,683  | ) |   | (3,060,683  | )
|                                        |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|                                        |            |  |            |   |   |              |   |   |            |   |   |               |   |   |             |   |   |             |  
|Balance, September 30, 2007             |            |  | 17,013,251 |   | $ | 17,013       |   | $ | 13,308,345 |   | $ | (55,000       | ) | $ | (13,775,383 | ) | $ | (505,025    | )

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|Note 1 | Interim Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | While the information presented
        in the accompanying interim nine 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 September 30, 2007, the Company had not yet achieved
        profitable operations, has accumulated losses of $13,775,383 since its
        inception, has a working capital deficiency of $505,025 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).
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Note 3 | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | 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 former 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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

---

**ACRONGENOMICS, INC.**(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|Note 3 | Related Party Transactions (contd)
|------ | ------------------------------------

August 17,1999 (Date ofThree months ended
      
      
      Nine months ended
      
      
      Inception) toSeptember 30,
      
      
      September 30,
      
      
      Sept 30,2007
      
      
      2006
      
      
      2007
      
      
      2006
      
      
      2007Accounting fees
      $
      17,696
      
      $
      14,217
      
      $
      38,194
      
      $
      51,948
      
      $
      179,776Consulting fees
      
      34,500
      
      
      -
      
      
      95,400
      
      
      20,000
      
      
      185,501Legal fees
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      60,656Management fees
      
      645,000
      
      
      -
      
      
      645,000
      
      
      -
      
      
      645,000Rent
      
      -
      
      
      -
      
      
      -
      
      
      12,000
      
      
      36,000Research and development
      
      -
      
      
      -
      
      
      -
      
      
      200,000
      
      
      5,604,189Stock-based compensation
      
      108,277
      
      
      -
      
      
      216,832
      
      
      -
      
      
      216,832$
      805,473
      
      $
      14,217
      
      $
      995,426
      
      $
      283,948
      
      $
      6,927,954


|       | Research and development expenditures
        are comprised of testing costs of the molecular diagnostic test products.
      Accounts payable and accrued liabilities at September 30,
        2007 includes $62,207 (December 31, 2006: $71,779) 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 September 30, 2007, there
        are 1,433,937 (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)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|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 September 30, 2007:

Number Outstandingand Exercisable
      Exercise Price
      Expiry Date233,334
      $ 1.50
      October 31, 2007110,000
      $ 1.00
      February 12, 200845,455
      $ 2.00
      September 5, 200875,000
      $ 1.50
      March 23, 2008374,648
      $ 1.50
      October 23, 200835,000
      $ 1.50
      October 27, 2008250,000
      $ 1.25
      July 31, 2008145,500
      $ 1.25
      July 31, 2008165,000
      $ 1.50
      February 28, 20091,433,937
      $ 1.41


On May 7, 2007, 420,000 warrants expired
  without being exercised, on September 15, 2007, 84,000 warrants expired without
  being exercised and on October 31, 2007, 233,334 warrants expired without being
  exercised.

A summary of changes in the Companys
  share purchase warrants for the nine months ended September 30, 2007 and the
  year ended December 31, 2006 is presented below:

| |                                |  | September
      30, 2007 |   |   | December
      31, 2006 | 
| | ------------------------------ |  | ------------------------ | - | - | ----------------------- | 
| |                                |  |                          |   |   | Weighted                | 
| |                                |  |                          |   |   | Average                 | 
| |                                |  | Number of                |   |   | Exercise                | 
| |                                |  | Warrants                 |   |   | Price                   | 
| |                                |  |                          |   |   |                         | 
| | Outstanding, beginning of year |  | 737,334                  |   | $ | 1.33                    | 
| | Granted                        |  | 1,200,603                |   | $ | 1.39                    | 
| | Expired                        |  | (504,000                 | ) | $ | 1.25                    | 
| |                                |  |                          |   |   |                         | 
| | Outstanding and exercisable,   |  |                          |   |   |                         | 
| | end of period                  |  | 1,433,937                |   | $ | 1.41                    | 

Share Subscriptions Receivable

At September 30, 2007, the Company had
  share subscriptions receivable totaling $55,000 with respect to the issuance
  of 475,500 common shares at $1.10 per share. Subsequent to September 30, 2007,
  the Company received $51,700.

---

**ACRONGENOMICS, INC.**(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|Note 5 | Capital Stock Notes 6 and 7 
      (contd)                                                                                                                                                                                                                                                                                  
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                
|       | Commitments (contd)                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                
|       | Share Purchase Options                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                
|       | As at September 30, 2007, there
        are 3,500,000 (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 September 30, 2007:

Number Outstanding
      Exercise Price
      Expiry Date200,000
      $ 2.50
      May 3, 2016600,000
      $ 1.00
      March 12, 2012700,000
      $ 0.50
      February 12, 2017* 2,000,000
      $ 0.50
      5 years upon reachingcertain milestones3,500,000


| | * | The vesting of 2,000,000 options granted are contingent
        upon the performance milestones which have not yet been achieved as at
        September 30, 2007, therefore, no compensation has been recorded on these
        options (Note 6).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On August 31, 2007, 200,000 options
  expired without being exercised.

A summary of changes in the Companys
  stock options for the nine months ended September 30, 2007 and the year ended
  December 31, 2006 is presented below:

| |                                |  | June
      30, 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                    | 
| | Expired                        |  | (200,000            | ) | $ | 3.00                    | 
| |                                |  |                     |   |   |                         | 
| | Outstanding, end of period     |  | 3,500,000           |   | $ | 0.70                    | 
| |                                |  |                     |   |   |                         | 
| | Exercisable, end of period     |  | 675,000             |   | $ | 0.57                    | 

The weighted average contractual life
  remaining of all stock options granted is 7.30 years.

---

**ACRONGENOMICS, INC.**(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

|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 Date175,000
      
      Feb 12/08175,000
      
      Aug 12/08175,000
      
      Feb 12/09525,0002,000,000
      
      Vest at 50% upon reaching certain
        milestones300,000
      
      Mar 22/082,825,000


During the nine months ended September
  30, 2007, the Company granted a consultant and directors and officers of the
  Company 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 $231,775.

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.

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:

2007Expected dividend yield
      0.0%Expected volatility
      263-214%Risk-free Interest Rate
      4.80-4.51%Weighted average term in years
      4.5Weighted 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.

---

**ACRONGENOMICS, INC.**(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

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

| | a) | By an agreement dated July 1, 2006, the Company agreed
        to pay $10,000 per month for management and operational services for offices
        in Geneva, Switzerland. The agreement is on a month-to-month basis and
        will renew on a monthly basis unless terminated by either party with 30
        days prior notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | b) | By an agreement dated February 13, 2007 and amended
        May 23, 2007, the Company will collaborate with Molecular Vision Ltd.
        (Molecular), a UK company, to acquire the exclusive rights
        to commercialize certain technology relating to the analysis/diagnostic
        fields (BioLED Technology), contract Molecular to complete the research
        and development necessary to achieve manufacturable prototypes and have
        first right of refusal to fund the development of additional applications
        of the technology by agreeing to pay GBP2,325,000 (US$4,745,237) (this
        sum is in addition to the GBP575,000 previously paid under the February
        13, 2007 agreement) over 3 years (noted below) and grant 2,000,000 share
        purchase options entitling the holders thereof the right to purchase one
        common share of the Company at $0.50 per share. The options will vest
        at 50% per milestone and will be exercisable within a period of 5 years
        from the date of vesting. The estimated dates of the milestones are August
        23, 2008 and November 23, 2009.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Payment schedule:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

GBP £
      
      
      US$May 2007 (paid)
      
      300,000
      
      
      598,645September 2007 (£405,000 paid)
      
      550,000
      
      
      1,126,235March 2008
      
      325,000
      
      
      665,503October 2008
      
      575,000
      
      
      1,177,427April 2009
      
      575,000
      
      
      1,177,4272,325,000
      
      
      4,745,237


| |    | The term of the agreement is until November 23, 2009,
        unless terminated earlier or the Company extends the term.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    | Molecular also grants to the Company an exclusive, worldwide,
        perpetual license to the intellectual property to develop and commercialize
        it, subject to the payment to the vendor of a royalty of 30% of gross
        receipts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    | As at September 30, 2007, the Company has $295,655 (GBP145,000)
        as an amount payable against the September 2007 payment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    | By a Heads of Terms agreement (“Agreement”)
        dated in November 2007, the Company has proposed to acquire 100% of the
        share capital of Molecular for consideration to be payable in cash and
        common shares of the Company. Molecular specializes in the development
        of miniaturized Point of Care medical diagnostic devices. The number of
        common shares to be issued by the Company will be calculated based on
        the lesser of $1.25 per share and the lesser of the average of the closing
        mid-market price of the Company on the day prior to the completion and
        the previous four trading days. Under the terms of the Agreement, the
        payment schedule noted above will be amended. The Agreement, which is
        non-binding, is subject to the completion of due diligence and regulatory
        approval. The completion of the acquisition is intended to take place
        by February 28, 2008.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | c) | On April 1, 2007, the Company entered into an agreement
        with a director of the Company to serve as President and Chief Operating
        Officer at $7,000 per month. The agreement is for three years ending March
        31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | d) | On April 1, 2007, the Company entered into an agreement
        with a director of the Company to service as Chief Technology Officer
        at $4,500 per month. The agreement is for three years ending March 31,
        2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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**ACRONGENOMICS, INC.**(A Development Stage Company)
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  September 30, 2007 
  (Stated in US Dollars) 
  (Unaudited)

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

| | e) | On September 3, 2007, the Company entered into an agreement
        with a director of the Company to provide services as Chief Executive
        Officer (CEO). The agreement is for three years ending September
        3, 2010. According to the terms of the agreement, the CEO will receive
        750,000 common shares of the Company as a signing bonus and will be entitled
        to receive an additional 1,750,000 common shares as performance bonuses.
        As at September 30, 2007, 750,000 common shares were issued to the CEO
        valued at $645,000.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Note 7 | Subsequent Events
        Notes 5 and 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       | On September 19, 2007, the Board
        of Directors for the Company approved a private placement of up to $5,000,000
        by offering up to 4,545,455 units at $1.10 per unit. Each unit consists
        of one common share and one-half share purchase warrant. Each warrant
        entitles the holder to purchase one common share at $1.50 per share for
        a period of 18 months. As at September 30, 2007 no funds were received
        and no shares were issued. Subsequent to September 30, 2007, 190,000 common
        shares were issued pursuant to this private placement for proceeds of
        $209,000.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Note 8 | Non-cash Transaction
        Note 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       | Investing and financing activities
        that do not have a direct impact on current cash flows are excluded from
        the statements of cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       | During the nine months ended
        September 30, 2007, the Company issued 220,000 common shares at $0.50
        per share. Proceeds for this issuance were received as at December 31,
        2006 and recorded as share subscriptions in the amount of $40,000. During
        the nine months ended September 30, 2007, these proceeds have been utilized
        for this share issuance.                                                                                                                                                                                                                                       
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       | This transaction has been excluded
        from the statements of cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Note 9 | Comparative Figures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       | Certain of the comparative figures
        for the nine months ended September 30, 2006 have been reclassified to
        conform with the presentation used in the current period.                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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

As used in this quarterly report, the terms we, us, our,
and Acrongenomics 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 our name 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.

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 our 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,

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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 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 our company was appointed as President, replacing Mr. Constantine Poulios, who had resigned from our company to pursue other opportunities.

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

As of September 3, 2007 we appointed Dr. Dimitris Goundis as our Chief Executive Officer.

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, Molecular Vision Ltd., successfully demonstrated its 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 and along with large scale, low cost manufacturing, will bring forward disposable, Point-of-Care diagnostic for large range markers.

On April 17, 2007 we announced that Molecular Vision Ltd.. 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.

On May 23, 2007, we entered into a Development Agreement with Molecular Vision Ltd. This agreement replaced the Development Agreement entered into on February 13, 2007. The replacement agreement reduces the total payments due to Molecular Vision by
£550,000 to a total of £2,325,000 and removes the STD Field and Substance of Abuse Field from the Fields of Development.

On October 11, 2007 the company demonstrated the successful implementation of a fully functional, portable medical diagnostic demonstrator of their Lab-on-a-Chip technology. The demonstrator employs patented, organic

---

semiconductor technology in a high sensitivity, handheld, medical diagnostic device. The successful presentation of the demonstrator device took place at Imperial College in London, UK.

BioLED Technology

We are developing 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.

By combining the microfluidic technology with the pLED/OLED (Organic Light Emitting Diodes), we believe that BioLED Technology 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.

With our current Point-of-Care testing device based on the BioLED Technology, reagents of an assay can 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, two 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:

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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).

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.

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,

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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.

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.

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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.

On October 11, 2007 the company demonstrated the successful
implementation of a fully functional, portable medical diagnostic demonstrator
of their Lab-on-a-Chip technology. The demonstrator employs patented, organic
semiconductor technology in a high sensitivity, handheld, medical diagnostic
device. The standalone two-channel, battery-powered device, complete with
digital display and self-referencing capability has demonstrated its capability
to measure clinically relevant markers with high sensitivity and at low cost. In
particular, the demonstrator device has been used successfully to measure
creatinine in urine at physiologically significant concentrations. The results,
obtained within seconds, were comparable to those obtained using a bench top
spectrometer. The successful presentation of the demonstrator device took place
at Imperial College in London, UK.

We are continuing to work with Molecular Vision Limited to
develop the prototype Point-of-Care testing device for diabetes management and
Cardiovascular testing. Presently we are working with Molecular Vision and
Pearson Matthews and expect by the end of 2007 we will fabricate our final
prototype Point-of-Care device which will be used for the detection of albumin
and creatinine in urine (in order to perform multiple testing on the device), as
well as the detection of myoglobin (cardiac marker) first in solution and then
in whole blood. When we are ready to begin regulatory activities, we may begin
the process by determining exactly what we need to do and who we need to
contact, for submitting all relevant files to the Food and Drug Administration
(FDA) for approval.

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 has three employees. Mr. Platon
Tzouvalis, President, Mr. Manos Topoglidis, Chief Technology Officer and Dr.
Dimitris Goundis, Chief Executive Officer, are currently bound by three year
employment agreements with the agreements Mr. Tzouvalis and Mr. Topoglidis
commencing April 1, 2007 and the agreement for Dr. Goundis commencing on
September 3, 2007. The company also has two consultants.

DESCRIPTION OF PROPERTY

Our head office is located at 14, Rue Kleberg, CH-1201 Geneva,
Switzerland. Our telephone number is 41 22 71 65 300.

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.

On September 2, 2007 we entered into a rental agreement with
PKL LTD for the rental of a flat in London at £485.00 per week for use by our
officers and employees while on business in London.

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
and our management in connection with our business operations. While these
forward-looking statements, and any

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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 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 able to raise capital to finance our continued operation during the period required for resolution of that issue. Accordingly, we may be forced to discontinue or suspend our
operations.

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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.

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

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competing processes and methodologies. Additionally, our BioLED Technology may not be employed in all potential applications being investigated, and any reduction in applications would limit the market acceptance of our technology and our potential
revenues. As a result, even if we obtain all required regulatory approvals, we cannot be certain that our BioLED Technology will be adopted at a level that would allow us to operate profitably.

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

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

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

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

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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 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.

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

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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 23, 2007, we entered into an amended Development
Agreement with Molecular Vision Ltd., 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 the amended Development Agreement with Molecular Vision Limited, we acquired the exclusive rights to develop and commercialize the existing intellectual properties related to
the BioLED Technology and have first refusal rights to develop any additional applications derived from Molecular Visions pipeline. As consideration for the rights we acquired in the agreement, we agreed to pay a total £2,325,000 and
grant 2,000,000 options at an exercise price of $0.50 to Molecular Vision.

Over the next twelve months we will continue to work with Molecular Vision Limited to develop the prototype Point-of-Care testing device for diabetes management and Cardiovascular testing. Presently we are working with Molecular Vision and Pearson
Matthews and expect by the end of 2007 we will fabricate our final prototype Point-of-Care device which will be used for the detection of albumin and creatinine in urine (in order to perform multiple testing on the device), as well as the detection
of myoglobin (cardiac marker) first in solution and then in whole blood. When we are ready to begin regulatory activities, we may begin the process by determining exactly what we need to do and who we need to contact, for submitting all relevant
files to the Food and Drug Administration (FDA) for approval.

We have not generated any revenues and our operating activities
  have resulted in a loss of $3,060,383 for the nine months ended September
  30, 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 $3,000,000,
  generally falling in two major categories: $1,800,000 in research and development
  costs and $1,200,000 in general and administrative expenses.

Research and Development Costs

For the next twelve months, we estimate that our research
  and development costs will be approximately $1,800,000. 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 $1,200,000. These expenses will include approximately $640,000 on consulting, stock-based compensation and investor relations,
approximately $380,000 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, 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.

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Nine months ended September 30, 2007 compared to three
months ended September 30, 2006

We incurred operating expenses in the amount of $3,060,683 for
the nine months ended September 30, 2007, compared with expenses of $2,875,808
the same period from the previous year. The operating expenses of $3,060,683
incurred during the nine months ended September 30, 2007 included, $735,000 for
management fees, $1,755,754 for research and development, $63,753 for office
expenses, travel, bank charges (net of interest income), transfer agents, and
foreign exchange, $128,001 for appraisals, accounting, auditing and legal fees,
$146,400 for consultations, and $231,775 for stock-based compensation.

Financial Condition and Liquidity

We had cash on hand of $19,365 and Subscriptions Receivable of
  $51,700 at September 30, 2007, compared with cash on hand of $4,552 as at December
  31, 2006. We had a working capital deficit of $453,325 at September 30, 2007,
  compared to a working capital deficit of $185,025 as at December 31, 2006.

Our present cash reserves of $19,365 and Subscriptions
Receivable of $51,700 is not sufficient to meet our immediate cash requirements.
We will have to raise additional funds from the private placement of our
securities to meet our budgeted operating expenses of $3,000,000 for the next
twelve months.

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.

Item
3.                      Controls
and Procedures.

As required by Rule 13a-15 under the Exchange Act, we have
carried out an evaluation of the effectiveness of the design and operation of
our company's disclosure controls and procedures as of the end of the period
covered by this quarterly report, being September 30, 2007. This evaluation was
carried out under the supervision and with the participation of our company's
management, including our company's president and our companys chief financial
officer. Based upon that evaluation, our company's president and our chief
financial officer concluded that our company's disclosure controls and
procedures are effective as at the end of the period covered by this report.
There have been no changes in our internal controls over financial reporting
that occurred during the period covered by this report that have materially
affected, or are reasonably likely to materially affect our internal controls
over financial reporting.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our company's reports filed or submitted under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Securities and Exchange Commission's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our company's reports filed
under the Exchange Act is accumulated and

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communicated to management, including our company's president,
chief executive officer, secretary and treasurer as appropriate, to allow timely
decisions regarding required disclosure.

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

On September 3, 2007, we issued 750,000 shares of our common
stock in accordance with an employment agreement with Dr. Dimitris Goundis.

We issued all of the common shares to a non U.S. person (as
that term is defined in Regulation S of the Securities Act of 1933) in an
offshore transaction relying on Regulation S and/or Section 4(2) of the
Securities Act of 1933.

Item
3.                     
Defaults Upon Senior Securities

None

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

None.

Item
5.                      Other
Information

On September 3, 2007, we entered into an employment agreement
with Dr. Dimitris Goundis, wherein Dr. Goundis has agreed to serve as our chief
executive officer for a three year period. Upon entering into the agreement, we
will issue to Dr. Goundis 750,000 shares of our common stock. In addition, Dr.
Goundis shall receive additional shares of our common stock upon certain service
milestones.

Item
6.                      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. (incorporated by reference from our Current Report on Form
      8-K filed February 12, 2007.                                      

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|10.3  | Employment Agreement
        dated September 3, 2007 between our company and Dr. Dimitris Goundis (incorporated
        by reference from our Current Report on Form 8-K filed September 28, 2007)     
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                        
|(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

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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 ****Platon
Tzouvalis,
President ****(Principal
Executive
Officer) ****Date:
November 13, 2007



By:       /s/ Ron
Lizée ****Ron
Lizée, Chief Financial Officer, Secretary and
Director ****(Principal
Financial Officer and Principal Accounting
Officer) ****Date:
November 13, 2007

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