U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB



(Mark One)



[ x ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended:

March 31, 2006



[    ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934



For the transition period from _______to _______



Commission file number 000-49833



ACRONGENOMICS INC.

(Exact name of small business issuer as specified in its charter)



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



1530 9th Avenue, S.E.

Calgary, Alberta, Canada, T2G-0T7

(Address of principal executive offices)



Telephone: (403) 693-8000

(Issuers telephone number)







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 last practicable date:



13,824,123 shares of common stock, $.001 par value, as of May 19, 2006.



Transitional Small Business Disclosure Format (check one):

Yes

No  X











PART I FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS



The accompanying unaudited condensed financial statements set forth at the end of the quarterly report, starting on page F-1, have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-QSB and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  All such adjustments are of a normal recurring nature.  Operating results for the three month periods ended March 31, 2006 and 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005.  For further information refer to the consolidated financial statements and footnotes thereto included in the Companys Annual Report on Form 10-KSB for the year ended December 31, 2006.



|                                                              | Page
|------------------------------------------------------------- | ----
|                                                              |     
|Interim Balance Sheet                                         | 3   
|                                                              |     
|Interim Statements of Operations                              | 4   
|                                                              |     
|Interim Statements of Cash Flows                              | 5   
|                                                              |     
|Interim Statements of Operations from Discontinued Operations | 6   
|                                                              |     
|Interim Statements of Stockholders Equity                    | 7-8 
|                                                              |     
|Notes to Interim Financial Statements                         | 9-15



2



ACRONGENOMICS, INC.

(A Development Stage Company)

INTERIM BALANCE SHEETS

March 31, 2006

(Stated in US Dollars)

(Unaudited)



|                                                          | March 31,    | December 31,
|--------------------------------------------------------- | ------------ | ------------
|ASSETS                                                    | 2006         | 2005        
|Current                                                   |              |             
|Cash and cash equivalents                                 | $
1,279,830  | $
1,741,998 
|                                                          |              |             
|Patents                                                   | 1            | 1           
|                                                          |              |             
|                                                          | $
1,279,831  | $
1,741,999 
|                                                          |              |             
|LIABILITIES                                              
|Current                                                   |              |             
|Accounts payable and accrued liabilities Note 3          | $
109,425    | $
207,109   
|Loan payable  Note 5                                     | 1,000        | 1,000       
|                                                          |              |             
|                                                          | 110,425      | 208,109     
|                                                          |              |             
|STOCKHOLDERS EQUITY                                     
|Common stock, $0.001 par value  Notes 6, 9 and 10        |              |             
|100,000,000 shares authorized                             |              |             
|17,824,123 shares issued (December 31, 2005:  17,824,123) | 17,824       | 17,824      
|Additional paid-in capital                                | 17,357,211   | 17,357,211  
|Stock purchase warrants                                   | 233,267      | 233,267     
|Deficit accumulated during the development stage          | (16,438,896) | (16,074,412)
|                                                          |              |             
|                                                          | 1,169,406    | 1,533,890   
|                                                          |              |             
|                                                          | $
1,279,831  | $
1,741,999 
|                                                          |              |             



SEE ACCOMPANYING NOTES

3



ACRONGENOMICS, INC.

(A Development Stage Company)

INTERIM STATEMENTS OF OPERATIONS

for the three months ended March 31, 2006 and 2005

and from August 17, 1999 (Date of Inception) to March 31, 2006

(Stated in US Dollars)

(Unaudited)





|                                                           |                    |                | August 17, 1999
|---------------------------------------------------------- | ------------------ | -------------- | ---------------
|                                                           |                    |                | (Date of       
|                                                           | Three months ended | Inception) to 
|                                                           | March 31,          | March 31,     
|                                                           | 2006               | 2005           | 2006           
|                                                           |                    |                |                
|Expenses                                                   |                    |                |                
|Accounting and audit fees - Note 4                         | 47,989             | 29,007         | 207,791        
|Amortization of patents                                    | -                  | 117,068        | 741,430        
|Appraisals                                                 | -                  | -              | 10,000         
|Bank charges                                               | 558                | 717            | 5,509          
|Consulting fees - Note 4                                   | 20,000             | -              | 661,488        
|Foreign exchange (gain)                                    | 173                | (999)          | (4,223)        
|Legal fees - Note 4                                        | 26,979             | 9,565          | 186,973        
|Office and miscellaneous                                   | 5,981              | 210            | 29,707         
|Public relations and donation                              | 60,000             | 70,000         | 507,007        
|Rent  Note 4                                              | 6,000              | 6,000          | 30,000         
|Research and development - Note 4                          | 200,000            | 1,144,000      | 5,604,189      
|Stock-based compensation                                   | -                  | -              | 364,000        
|Telephone                                                  | -                  | -              | 2,399          
|Transfer agent and filing fees                             | 1,000              | 715            | 17,271         
|Travel                                                     | 5,234              | -              | 43,792         
|                                                           |                    |                |                
|Loss before the following                                  | (
373,914)         | (
1,376,283)   | (
8,407,333)   
|                                                           |                    |                |                
|Interest income                                            | 9,430              | -              | 14,881         
|Write-down of patents                                      | -                  | -              | (8,004,446)    
|                                                           |                    |                |                
|Loss from continuing operations                            | (
364,484)         | (
1,376,283)   | (
16,396,898)  
|Loss from discontinued operations 
Schedule 1             | -                  | (5,346)        | (41,998)       
|                                                           |                    |                |                
|Net loss                                                   | $
(364,484)        | $
(
1,381,629) | $
(
16,438,896)
|                                                           |                    |                |                
|Basic and diluted loss per share 
continuing operations   | $
(
0.02)          | $
(
0.09)      |                
|                                                           |                    |                |                
|Basic and diluted loss per share 
discontinued operations | $
(
0.00)          | $
(
0.00)      |                
|                                                           |                    |                |                
|Weighted average shares outstanding                        | 17,824,123         | 15,663,913     |                



SEE ACCOMPANYING NOTES

4



ACRONGENOMICS, INC.

(A Development Stage Company)

INTERIM STATEMENTS OF CASH FLOWS

for the three months ended March 31, 2006 and 2005

and from August 17, 1999 (Date of Inception) to March 31, 2006

(Stated in US Dollars)

(Unaudited)

|                                                                  |                    |               | August 17, 1999
|----------------------------------------------------------------- | ------------------ | ------------- | ---------------
|                                                                  |                    |               | (Date of       
|                                                                  | Three months ended | Inception) to
|                                                                  | March 31,          | March 31,    
|                                                                  | 2006               | 2005          | 2006           
|Cash flows used in operating activities                           |                    |               |                
|Loss from continuing operations                                   | $
(364,484)        | $
(1,376,283) | $
(16,396,898) 
|Items not affecting cash:                                         |                    |               |                
|Amortization of patents                                           | -                  | 117,068       | 741,430        
|Shares issued for consulting fees                                 | -                  | -             | 468,000        
|Stock-based compensation                                          | -                  | -             | 364,000        
|Write-down of patents                                             | -                  | -             | 8,004,446      
|Changes in non-cash working capital items:                        |                    |               |                
|Subscriptions receivable                                          | -                  | 426,330       | -              
|Accounts payable and accrued liabilities                          | (97,684)           | (96,529)      | 109,425        
|                                                                  |                    |               |                
|Cash used in operating activities                                 | (462,168)          | (929,414)     | (6,709,597)    
|                                                                  |                    |               |                
|Cash flows used in investing activity                             |                    |               |                
|Patents                                                           | -                  | -             | (121,877)      
|                                                                  |                    |               |                
|Cash flows provided by financing activities                       |                    |               |                
|Common stock issued for cash                                      | -                  | 24            | 7,781,995      
|Stock purchase warrants                                           | -                  | -             | 370,307        
|Increase in loans payable                                         | -                  | -             | 1,000          
|Advances from (to) discontinued operations of disposed subsidiary | -                  | -             | (41,998)       
|                                                                  |                    |               |                
|Cash provided by financing activities                             | -                  | 24            | 8,111,304      
|                                                                  |                    |               |                
|Increase (decrease) in cash from continuing operations            | (462,168)          | (929,390)     | 1,279,830      
|                                                                  |                    |               |                
|Increase (decrease) in cash from discontinued operations  Note 8 | -                  | (3,931)       | -              
|                                                                  |                    |               |                
|Increase (decrease) in cash during the period                     | (462,168)          | (933,321)     | 1,279,830      
|                                                                  |                    |               |                
|Cash and cash equivalents, beginning of period                    | 1,741,998          | 1,012,484     |                
|                                                                  |                    |               |                
|Cash and cash equivalents, end of period                          | $1,279,830         | $79,163       | $1,279,830     
|                                                                  |                    |               |                
|Cash and cash equivalents consist of:                             |                    |               |                
|Cash - continuing operations                                      | $269,577           | $79,040       | $269,577       
|- discontinued operations                                         | -                  | 123           | -              
|Term Deposit                                                      | 1,010,253          | -             | 1,010,253      
|                                                                  |                    |               |                
|                                                                  | $1,279,830         | $79,163       | $1,279,830     

Non-cash transaction  Note 9

SEE ACCOMPANYING NOTES

5





ACRONGENOMICS, INC.

Schedule 1

(A Development Stage Company)

INTERIM STATEMENTS OF OPERATIONS

FROM DISCONTINUED OPERATIONS OF ACRONGENOMICS HELLAS S.A.

for the three months ended March 31, 2006 and 2005

and from August 17, 1999 (Date of Inception) to March 31, 2006

(Stated in US Dollars)

(Unaudited)



|                                        |                    |           |            | August 17, 1999
|--------------------------------------- | ------------------ | --------- | ---------- | ---------------
|                                        |                    |           |            | (Date of       
|                                        |                    |           |            |                
|                                        | Three months ended | to       
|                                        | March 31,          | March 31,
|                                        | 2006               | 2005      | 2006      
|                                        |                    |           |           
|Expenses                                |                    |           |           
|Accounting and audit fees               | $
-                | $
-       | $
4,020   
|Amortization                            | -                  | 1,583     | 7,915     
|Bank charges                            | -                  | -         | 7         
|Consulting fees - Note 4                | -                  | 3,760     | 9,241     
|Legal fees                              | -                  | -         | 634       
|Office and miscellaneous                | -                  | -         | 5,307     
|Rent                                    | -                  | -         | 14,000    
|Telephone                               | -                  | -         | 2,618     
|Utilities                               | -                  | -         | 2,934     
|                                        |                    |           |           
|Loss before the following               | -                  | (5,343)   | (46,676)  
|                                        |                    |           |           
|Foreign exchange loss                   | -                  | (57)      | (896)     
|Minority interest in loss of subsidiary | -                  | 54        | 476       
|Net gain on disposal of subsidiary      | -                  | -         | 5,098     
|                                        |                    |           |           
|Loss from discontinued operations       | $
-                | $(5,346)  | $
(41,998)
|                                        |                    |           |           



SEE ACCOMPANYING NOTES

6



ACRONGENOMICS, INC.



(A Development Stage Company)

INTERIM STATEMENT OF STOCKHOLDERS EQUITY

from the period August 17, 1999 (Date of Inception) to March 31, 2006

(Stated in US Dollars)

(Unaudited)



|                                                      |                     |               |            |         |             |               | Deficit     |               
|----------------------------------------------------- | ------------------- | ------------- | ---------- | ------- | ----------- | ------------- | ----------- | --------------
|                                                      | Common Stock        |               |            |         | Accumulated |              
|                                                      |                     |               | Additional |         |             |               | During the  |               
|                                                      |                     | Paid-in       | Warrants   | Share   | Development | Contributed  
|                                                      | Number              | Par Value     | Capital    | Number  | Amount      | Subscriptions | Stage       | Total         
|                                                      |                     |               |            |         |             |               |             |               
|Capital stock issued for cash
- at $0.001
- at $0.01  | 5,000,000
5,000,000 | $
5,000
5,000 | $
-
45,000 | -       | $
-
-       | $
-
-         | $
-
-       | $
5,000
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           | 146,584    | 840,000 | 272,996     | -             | -           | 420,000       
|Capital stock issued for commission
-
- at $1.00      | 42,000              | 42            | 41,958     | -       | -           | -             | -           | 42,000        
|Less:  commission                                     | -                   | -             | (42,000)   | -       | -           | -             | -           | (42,000)      
|Commission                                            | -                   | -             | (35,000)   | -       | -           | -             | -           | (35,000)      
|–
Capital stock issued for cash
- at $2.30            | 100,000             | 100           | 132,589    | 100,000 | 97,311      | -             | -           | 230,000       
|- at $2.30                                            | 437,956             | 438           | 1,006,861  | -       | -           | -             | -           | 1,007,299     
|Capital stock issued for commission                   | 50,594              | 50            | 116,316    | -       | -           | -             | -           | 116,366       
|Less:  commission                                     | -                   | -             | (116,366)  | -       | -           | -             | -           | (116,366)     
|Capital contribution                                  | -                   | -             | 6,000      | -       | -           |               |             | 6,000         
|Stock subscriptions                                   | -                   | -             | -          | -       | -           | 426,329       | -           | 426,329       
|Net loss for the year                                 | -                   | -             | -          | -       | -           | -             | (1,863,376) | (1,863,376)   
|                                                      |                     |               |            |         |             |               |             |               
|Balance, December 31, 2004                            | 15,565,550          | 15,565        | 9,944,427  | 940,000 | 370,307     | 426,329       | (1,920,267) | 8,836,361     

/contd

SEE ACCOMPANYING NOTES

7



Continued

ACRONGENOMICS, INC.

(A Development Stage Company)

INTERIM STATEMENT OF STOCKHOLDERS EQUITY

from the period August 17, 1999 (Date of Inception) to March 31, 2006

(Stated in US Dollars)

(Unaudited)



|                                                                         |              |           |              |           |             |               | Deficit        |             
|------------------------------------------------------------------------ | ------------ | --------- | ------------ | --------- | ----------- | ------------- | -------------- | ------------
|                                                                         | Common Stock |           |              |           | Accumulated |              
|                                                                         |              |           | Additional   |           |             |               | During the     |             
|                                                                         |              | Paid-in   | Warrants     | Share     | Development | Contributed  
|                                                                         | Number       | Par Value | Capital      | Number    | Amount      | Subscriptions | Stage          | Total       
|                                                                         |              |           |              |           |             |               |                |             
|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                                                               | 925,125      | 925       | 3,699,575    | -         | -           | -             | -              | 3,700,500   
|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)    
|Stock subscriptions received                                             | -            | -         | -            | -         | -           | (426,329)     | -              | (426,329)   
|Common stock issued for cash
pursuant to exercise of warrants
- at $1.00 | 420,000      | 420       | 419,580      | (420,000) | -           | -             | -              | 420,000     
|Transfer on exercise of warrants                                         | -            | -         | 137,040      | -         | (137,040)   | -             | -              | -           
|Stock-based compensation                                                 | -            | -         | 364,000      | -         | -           | -             | -              | 364,000     
|Common stock issued for consulting
services
- at $4.68                   | 100,000      | 100       | 467,900      | -         | -           | -             | -              | 468,000     
|Net loss from continuing operations                                      | -            | -         | -            | -         | -           | -             | (14,152,210)   | (14,152,210)
|Capital contribution from subsidiary on
disposition                      | -            | -         | (6,000)      | -         | -           | -             | -              | (6,000)     
|Net loss from discontinued operations                                    | -            | -         | -            | -         | -           | -             | (1,935)        | (1,935)     
|                                                                         |              |           |              |           |             |               |                |             
|Balance, December 31, 2005                                               | 17,824,123   | 17,824    | 17,357,211   | 520,000   | 233,267     | -             | (16,074,412)   | 1,533,890   
|Net loss from continuing operations                                      | -            | -         | -            | -         | -           | -             | (364,484)      | (364,484)   
|                                                                         |              |           |              |           |             |               |                |             
|Balance, March 31, 2006                                                  | 17,824,123   | $
17,824  | $
17,357,211 | 520,000   | $
233,267   | $
-           | $
(16,438,896) | $
1,169,406 
|                                                                         |              |           |              |           |             |               |                |             





SEE ACCOMPANYING NOTES

8



ACRONGENOMICS, INC.

(A Development Stage Company)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2006

(Stated in US Dollars)

(Unaudited)





Note 1

Nature 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 Molecular Invitro Diagnostics.  By a letter of intent dated February 7, 2004 and an agreement dated May 31, 2004, the Company acquired intellectual property that included a certain patent and patent applications concerning molecular diagnostic test products for cancer detection.  The Company has entered into negotiations to complete a collaborative agreement to develop unique nanotechnology solutions used in eliminating hospital related infections.



The accompanying unaudited interim financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission.  Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim financial statements have been included.  Such adjustments consist of normal recurring adjustments.  These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2005 and 2004, as filed with the United States Securities and Exchange Commission.  The results of operations for the three months ended March 31, 2006 are not indicative of results that may be expected for the full year.



Note 2

Continuance of Operations



These interim financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next twelve months.  Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.  At March 31, 2006, the Company had not yet achieved profitable operations, has accumulated losses of $16,438,896 since its inception and expects

9



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 2





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.  Since inception, the Company has funded operations through common stock issuances and related party loans.



Note 3

Summary of Significant Accounting Principle

Principles of Consolidation



The financial statements at December 31, 2004 included the accounts of the Company and its 99% owned subsidiary, Acrongenomics Hellas S.A. (Hellas), a Greek corporation, an entity incorporated by the Company.  On May 27, 2005, the Company disposed of its interest in Hellas (Note 7).  Consequently, the financial statements for the three months ended March 31, 2006 include the accounts of Hellas for the period from January 1, 2005 to March 31, 2005, as discontinued operations.  All inter-company balances and transactions have been eliminated.

10



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 3





Note 4

Related Party Transactions  Notes 5 and 10

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, and the research and development expenditures were paid to a company in which a former officer and director is the spouse of the Companys former president:



|                         |                    |               | August 17, 2000
|------------------------ | ------------------ | ------------- | ---------------
|                         |                    |               | (Date of       
|                         | Three months ended | Inception) to
|                         | March 31, 2006     | March 31,    
|                         | 2006               | 2005          | 2006           
|                         |                    |               |                
|Accounting fees          | $
23,994           | $
7,564       | $
90,970       
|Consulting fees          | 20,000             | 3,760         | 57,401         
|Legal fees               | -                  | 9,565         | 60,656         
|Patents                  |                    | -             | 87,500         
|Rent                     | 6,000              | 6,000         | 44,000         
|Research and development | 200,000            | 1,144,000     | 5,604,189      
|                         |                    |               |                
|                         | $
249,994          | $
1,170,889   | $
5,944,716    





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



Accounts payable and accrued liabilities at March 31, 2006 includes $30,131 (December 31, 2005: $147,906) owing to companies with a common director and a company of which a former officer and director is the spouse of the Companys former president.



Note 5

Loan Payable



The loan payable is due to an officer and director of a company of which a former officer and director is the spouse of the Companys former president and is unsecured, non-interest bearing and has no specific terms for repayment.

11



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 4





Note 6

Capital Stock  Notes 9 and 10

Commitments



Share Purchase Warrants



At March 31, 2006, 520,000 (December 31, 2005:  520,000) share purchase warrants are outstanding.  Of this total, 420,000 warrants entitle the holders the right to purchase one common share of the Company at $1.20 per share for each share purchase warrant held until May 7, 2007 and 100,000 warrants entitle the holders the right to purchase one common share of the Company at $2.30 per share for each share purchase warrant held until September 7, 2006.  The Company has recorded $233,267 (December 31, 2005: $233,267) with respect to the share purchase warrants that represents their fair value when issued.



Share Purchase Options



On May 17, 2005, the Company approved a share purchase option plan, which authorizes the board of directors to grant shares as incentive share purchase options to directors, officers, employees and/or consultants.  The exercise price, vesting and other terms will be determined upon grant by the administrator thereof.



A summary of the status of the stock option plan as of March 31, 2006 and changes during the period is presented below:



|                                                                            |         | Weighted      
|--------------------------------------------------------------------------- | ------- | --------------
|                                                                            |         | Average       
|                                                                            | Shares  | Exercise Price
|                                                                            |         |               
|Options outstanding and exercisable at December 31, 2005 and March 31, 2006 | 200,000 | $3.00         



At March 31, 2006, 200,000 share purchase options were outstanding to consultants entitling the holders thereof the right to purchase one common share of the Company at $3.00 per share for each share purchase option held.  These share purchase options expire on August 31, 2007.

12



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 5





Note 7

Discontinued Operations



On May 27, 2005, the Company disposed of its 99% owned subsidiary, Acrongenomics Hellas S.A for cash consideration of $31,096.  Loss related to the subsidiary has been disclosed up to the date of disposal as loss from discontinued operations (Schedule 1).  The net gain on disposal was determined as follows:



|Proceeds on disposal of subsidiary    |  | $
31,096
|------------------------------------- |  | --------
|                                      |  |         
|Net assets of subsidiary              |  |         
|Cash                                  |  | 115     
|Government value added tax receivable |  | 8,138   
|Capital assets                        |  | 23,745  
|Additional paid-in capital            |  | (6,000) 
|                                      |  |         
|                                      |  | 25,998  
|                                      |  |         
|Net gain on disposal of subsidiary    |  | 5,098   



13



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 6





Note 8

Statement of Cash Flows



Cash flows from discontinued operations are as follows:



|                                                         |                    |               | August 17,
|-------------------------------------------------------- | ------------------ | ------------- | ----------
|                                                         |                    |               | 1999      
|                                                         |                    |               | (Date of  
|                                                         | Three months ended | Inception) to
|                                                         | March 31,          | March 31,    
|                                                         | 2006               | 2005          | 2006      
|                                                         |                    |               |           
|Cash flows used in operating activities                  |                    |               |           
|Loss from discontinued operations                        | $
-                | $
(5,346)     | $
(41,998)
|Items not affecting cash:                                |                    |               |           
|Gain on disposal of subsidiary                           | -                  | -             | (5,098)   
|Amortization                                             | -                  | 1,583         | 7,915     
|Changes in non-cash working capital item:                |                    |               |           
|Government value added tax receivable                    | -                  | -             | (8,138)   
|                                                         |                    |               |           
|Cash used in operating activities                        | -                  | (3,763)       | (47,319)  
|                                                         |                    |               |           
|Cash flows used in investing activity                    |                    |               |           
|Equipment purchases                                      | -                  | -             | (31,660)  
|                                                         |                    |               |           
|Cash flows provided by financing activities              |                    |               |           
|Proceeds from disposal of subsidiary                     | -                  | -             | 31,096    
|Advances from (to) parent company                        | -                  | -             | 47,998    
|Loan receivable                                          | -                  | (114)         | -         
|Minority interest                                        | -                  | (54)          | -         
|                                                         |                    |               |           
|Cash provided by (used in) financing activities          | -                  | (168)         | 79,094    
|                                                         |                    |               |           
|Increase (decrease) in cash from discontinued
operations | $
-                | $
(3,931)     | $
115     



14



Acrongenomics, Inc.

(A Development Stage Company)

Notes to the Interim Financial Statements

March 31, 2006

(Stated in US Dollars)

(Unaudited)  Page 7





Note 9

Non-cash Transaction



Investing and financing activities that do not have an impact on current cash flows are excluded from the statements of cash flows.  During the three months ended March 31, 2006, the Company issued 180,668 common shares between $2.30 and $2.40 pursuant to the receipt of proceeds of $426,329 from stock subscriptions received during the year ended December 31, 2004.  This transaction was excluded from the statements of cash flow.



Note 10

Subsequent Events



i)

By an agreement dated February 13, 2006, the Company re-acquired 4,000,000 common shares of the Company from its former president in exchange for a royalty of 50% over any revenue that the Company generates from the eleven patents underlying its molecular diagnostic test products for cancer detection and the right to use or not use such patents.  Subsequent to March 31, 2006, the 4,000,000 common shares were returned to treasury.



ii)

By an agreement dated May 4, 2006, the Company granted 200,000 share purchase options to officers and directors of the Company entitling the holders thereof the right to purchase one common share of the Company at $2.50 per share.  These share purchase options expire on May 4, 2016.







15



ITEM 2:

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.



BACKGROUND



Acrongenomics, Inc., a Nevada corporation (the Company) is a research and development company focused in the field of Molecular Invitro Diagnostic (IVD) sector.  The global market for (IVD) tests is a relatively new field, but with substantial progress over the last few years.  During the first quarter of the year ended December 31, 2004, the Company finalized the acquisition of important patent and patent applications through the issuance of 4,000,000 shares of its common stock.  This acquisition provided our Company with our first product known as EP-CAMTM Detection Kit, which is a highly predictive molecular diagnostic test for micrometastic cancer of epithelial origin.  This EP-CAMTM Detection Kit was based on the most common platform in molecular diagnostic called Polymenase Chain Reaction (PCR) technology.  An Elisa system was used as an end point detector.



The Company entered into an arrangement with Euro Genet Inc., a Greek research company located in Athens, Greece with related shareholders to explore future prospects in this fairly new sector by evaluating the technology behind existing implementations.  Our research results revealed that current technology in the market contained deficiencies such as low sensitivity, inaccuracy, lack of cost effectiveness and low efficiency, etc.



Acrongenomics Inc. proceeded to troubleshoot these aforementioned deficiencies by introducing nanotechnology into molecular biology.



Nanotechnology is a fusion of physical science, biology, molecular engineering, chemistry and biotechnology. The field of nanotechnology is beginning to generate substantial new insights into how biological systems function and holds much promise of advancement in pharmaceutical and health care alike.



By transforming our existing product EP-CAMTM Detection Kit for the detection of epithelial cancer, the Company managed to develop the first nanomolecular diagnostic kit, the Neo-EPCAMTM cancer detection kit.  Neo-EPCAMTM is capable of detecting all types of cancers of epithelial origin such as, lung, breast, colon, prostate, head, and neck, stomach, ovarian, pancreas and esophagus.



During the rest of the year, our research continued by obtaining different tissue samples from patients suffering from various cancers and repeatedly testing these in order for our results to be accurate.



By advancing our know-how in nanotechnology, we managed to apply Neo-EPCAMTM on the detection of more markers and viral targets such as HER1, HER2, HER3, HER4, EBV, and HPV with the incorporation of the appropriate primers.  The characterization and evaluation program was confirmed with final detection in agarose gel, as well as in universal Elisa system.  The initially encouraging results derived by such applications ultimately led to the introduction of the Nano-JETATM Platform.  In essence, we believe that the Nano-JETATM Platform may have the potential to eliminate many deficiencies and shortcomings of cancer diagnostic technologies that are currently available on a commercial basis.



During the 3rd quarter of 2005, Acrongenomics Inc., further explored the diversity of its Nano-JETATM technology platform via its Real Time PCR amplification method.  The Company worked towards the establishment of a solid characterization and design control of additional cancer and viral markers such as vEGF, HER1, HER2 and EBV.  In order to further validate the technology, a carefully designed set of experiments was performed using two alternative methods:  A Gel Electrophoresis and a sequencing of the amplified genes.



Once developed, Nano-JETATM technology promises to offer great advantages compared to the performance of existing Real Time PCR by achieving nucleic acid amplification, detection and quantification in reduced time with the option for isothermal (one-temperature) and non-isothermal protocols.



16



The robustness, simplicity and speed of Nano-JETATM technology platform is conditional upon the incorporation of a family of nano-materials with unique physicochemical properties.



PLAN OF OPERATION



As at December 31, 2005, Acrongenomics has implemented a patent strategy designed to provide it with a unique proprietary position in the field of molecular diagnostics products.  Our patent portfolio currently owns exclusively patents for EpCAM Detection KitTM (approved), Neo-EPCAMTM Detection Kit Nano-JETATM technology, Neo-EBVTM, Neo-HPVTM, Neo-HER1TM, Neo-HER2TM, Neo-HER3TM, Neo-HER4TM, Nano-JETATM PCR and Nano-JETATM Real Time PCR.



The Company has estimated that the Nano-JETA technology platform may still require extensive research costs and experiments for the next two (2) to three (3) years before it reaches a stage to attract the interest of large pharmaceutical companies.



The experiments would involve different spectroscopic techniques such as:



High Resolution Transmission Electron Microscopy (HR-TEM), EDAX, EELS, AFM, X-Ray Diffraction, Atomic Absorption and ICP.  Those special techniques will offer vital information about the nature and the composition of the nano-materials as well as about their unique physicochemical properties.  Furthermore, a range of techniques such as CD, NMR and Mass Spectrometry will be also used in order to investigate the interaction between the nano-materials and the biological macromolecules such as DNA, enzymes  the main PCR components.



The results of the experiments could ultimately complete the technologys validation file and will also direct further investigations on the synthesis of relevant families of nano-materials along with their function and application in other diagnostic techniques.  Additionally, the full characterization of the mechanism of action could explore the technologys diverse potential and could possibly open new ways in applying such an ultra fast catalytic amplification reaction into a broad spectrum of in vitro diagnostic techniques.



The Company feels that such series of experiments need to be carried out by highly qualified personnel that can devote 100% of their efforts to the project.  Most probably, it requires collaborations with international university research centers that are equipped with suitable personnel and instruments for such purpose and available time.



Acrongenomics believes that to devote 100% of its time and efforts on such one (1) project for the next 2 to 3 years involves high risk and market exposure.



The Company decided it was necessary to diversify its research activities.



Therefore, on February 13, 2006, willing to concentrate fully on the development of Nano-JETA technology,

Dr. Leftheris Georgakopoulos resigned from the Companys Board of Directors and as the Companys President and Chief Scientific Officer.



In connection with the resignation of Dr. Georgakopoulos as President, Chief Science Officer and member of the Board of Directors of Acrongenomics Inc, the Company entered into an agreement with Dr. Georgakopoulos for the re-acquisition of 4,000,000 shares of common stock in exchange for a royalty of fifty percent (50%) over any revenue that the Company generates from the financial exploitation of certain patents regarding its Nano-JETA technology.  The Company has returned the 4,000,000 shares of common stock to treasury.  The shares were originally issued to Dr. Georgakopoulos in exchange for certain diagnostic technology for which Dr. Georgakopoulos had filed Greek patents.



As of February 14, 2006, the Company appointed Mr. Constantine Poulios, J.D. LL.M. as President.  Mr. Poulios had been serving as a member of the Board of Directors and as a Vice President for the Company since July 6,

17



2004.  As of the same date, the Company also appointed Mr. Platon Tzouvalis, MSc., as Vice President and as a member of the Board of Directors.

Mr. Poulios has extensive experience in serving multinational companies in the rigorous environment of the Sarbanes-Oxley legislation. An attorney by education and profession, he was part of the Corporate and Tax Advisory Services of Ernst & Young before joining Acrongenomics, Inc. Mr. Poulios was managing important accounts, including that of Coca Cola, Halliburton, Hewlett Packard, ABN AMRO, Citigroup, Ciments Francais, Pfizer, GlaxoSmithKline and EMI Music for Ernst & Young Southeast Europe, while he has also worked for Ernst & Young LLP in the US. He obtained his Master's of Laws from Northwestern University School of Law in Chicago in 1997, while he is a 1995 graduate from the School of Law at the National University of Athens. Mr. Poulios has also been awarded with a Certificate in Law in 1993 from the School of Law at the University of Bordeaux in France and he has attended graduate courses in management from top US universities.

Mr. Tzouvalis has been a member of Acrongenomics Scientific Advisory Board since May 2004. Mr. Tzouvalis received a B.Sc. Degree in Biochemistry from the University of Illinois in 1990 and a Masters Degree in the same field from DePaul University at Chicago in 1995. Mr. Tzouvalis has worked as a Research Chemist in collaboration with the University of Illinois at Chicago, as a Research and Development Chemist at SynQuest, Inc. and as Advanced Quality Assurance Specialist of Organic Operations and then Project Manager in Bioanalytical Quality Assurance for Abbott Laboratories. Mr. Tzouvalis has also been awarded with the Abbott Diagnostics Division Science Award of 2002 as part of the Organic Operation Remediation Team.

As of February 24, 2006, the Company appointed Dr. Manos Topoglidis as Chief Technology Officer, member of its Board of Directors and its Scientific Advisory Board.

Dr. Topoglidis has impressive experience leading international research teams in academia to unlock nanotechnology solutions. He ranks among the first to extensively research the use of nanoporous surfaces for biosensing applications and has written numerous original nanotechnology-related publications which have been cited worldwide.

As of the same date, the Company also announced new offices in Geneva, Switzerland to accommodate its forthcoming expansion phase, grow its collaborative network and centrally position itself in a first-rate European market.



These changes allow Acrongenomics to diversify its activities by concentration its efforts as a research-based investment company that is able to bridge the gap between breakthrough technologies and commercial development in the Life Sciences sector.



In keeping with its new vision of diversification, Acrongenomics announced on February 14, 2006 that it was under negotiations in order to complete a collaboration agreement with an international group of experts towards the development of unique nanoweapons that exhibit extraordinary properties in eliminating hospital related infections.



Hospital related infections are one of the 10 leading causes of mortality in developed countries.  They often involve bacteria which are resistant to antibiotics, thereby complicating their treatment.  Infections involving multi-drug resistant bacteria are a major concern for most hospitals and healthcare establishments, since they contribute to an increase in morbidity and mortality compared to the underlying diseases alone.  They also impact the length of stay and the related healthcare costs.



According to the U.S. Center for Disease Control (CDC) and Prevention, hospital related infections are the fourth leading cause of death in the United States, after heart disease, cancer and stroke.



RESULTS OF OPERATIONS



The Company earned no revenue since its inception.  Acrongenomics Inc. is still in the development stage and does not anticipate earning any revenues until such time as it can establish an alliance with targeted companies to market or distribute the results of its research projects.

18





However, the Company has been very successful in attracting potential investors and shareholders through various private placements.  Acrongenomics Inc. raised cash from warrants being exercised during the year.  This has allowed our Company to meet all of our overhead obligations as well as maintaining our continuous pursuit to complete our product research and development. Prior to December 31, 2005, the Company sold 925,125 shares in a private placement at $4.00 per share for proceeds of $3,700,500.



The Company incurred operating expenses in the amount of $346,484 for three (3) months ended March 31, 2006, compared with expenses of $1,381,629 the same period from the previous year.  The operating expenses of 346,484 incurred during the three (3) months ended March 31, 2006 included, $6,000 for rent, $200,000 for research and development and $12,773 for office expenses, travel, bank charges, transfer agents, and website development, net of $9,257 from interest income and foreign exchange, $60,000 for public relations, $74,968 for accounting, auditing and legal fees and $20,000 for consultations.  Acrongenomics Inc. also retains ownership of all its patents, but their potential value is not reflected in the financial statements.



FINANCIAL CONDITION AND LIQUIDITY



The Company has cash on hand of $ 1,279,830 as at March 31, 2006, compared with $ 1,741,998 as at December 31, 2005.  We had a working capital surplus of $ 1,169,406 at March 31, 2006, compared to a working capital surplus of $1,533,890 as at December 31, 2005.



Our present cash reserves of $ 1,279,830 are sufficient to meet our cash requirements for the next six (6) months.

We will have to raise additional funds from the private placement of our securities in the amount of $ 1,120,170 to meet our budgeted operating expenses of $ 2,400,000 per year.



If we are successful on completing an equity financing, existing shareholders will experience a dilution of their interest in the 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.



ITEM 3:

CONTROLS AND PROCEDURES



We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our new President effective February 14, 2006, Constantine Poulios and Ron Lizée, Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.



Within the last 90 days, we carried out an evaluation, undertaken by our sole officer and director, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.  Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective.



There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.

19



PART II  OTHER INFORMATION



ITEM 1.

LEGAL PROCEEDINGS



We are not a party to any material legal proceedings and to our knowledge, no such proceedings are threatened or contemplated.



ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS



During the three (3) months period ended March 31, 2006, there were no sale of unregistered shares of our common stock.



ITEM 3.

DEFAULTS UPON SENIOR SECURITIES



None



ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



No matters were submitted to our security holders for a vote during the fiscal quarter ended March 31, 2006.



ITEM 5.

OTHER INFORMATION



The Company made changes to its Board of Directors and officers during the quarter ended March 31, 2006.



As at February 13, 2006, Dr. Leftheris Georgakopoulos resigned from the Companys Board of Directors and as the companys President and Chief Scientific Officer.  As at February 14, 2006, the Company appointed Mr. Constantine Poulios, J.D., LLM. as President and Mr. Platon Tzouvalis MSC., as Vice President and as a member of its Board of Directors.  As at February 24, 2006, the Company appointed Dr. Manos Topoglidis as Chief Technology Officer and as a member of its Board of Directors and its Scientific Advisory Board.



On February 13, 2006, with the resignation of our former President, Dr. Leftheris Georgakopoulos, the Company entered into an agreement with Dr. Leftheris Georgakopoulos for the re-acquisition of 4,000,000 shares of common stock in exchange for a royalty of fifty percent (50%) over any revenue that the Company generates from the Nano-Jeta technology.  The Company has returned the 4,000,000 shares of common stock to treasury.



ITEM 6.

EXHIBITS





|Exhibit
Number | Description of Exhibit                                                                                                       
|-------------- | -----------------------------------------------------------------------------------------------------------------------------
|3.1            | Articles of Incorporation (1)                                                                                                
|3.2            | Bylaws, as amended (1)                                                                                                       
|4.1            | Share Certificate (1)                                                                                                        
|31.1           | Rule 13a-14(a)/15d-14(a) Certification  Signed by Constantine Poulios, Principal Executive Officer(2)                       
|31.2           | Rule 13a-14(a)/15d-14(a) Certification - Signed by Ron Lizée, Principal Financial Officer and Principal Accounting Officer(2)
|32.1           | Section 1350 Certification  Signed by Constantine Poulios, Principal Executive Officer(2)                                   

20



|32.2 | Section 1350 Certification  Signed by Ron Lizée, Principal Financial Officer and Principal Accounting Officer(2)
|---- | -----------------------------------------------------------------------------------------------------------------





(1)

Previously filed with the Securities and Exchange Commission as an exhibit to the Registrants Form 10-SB originally filed May 24, 2002, as amended.



(2)

Filed as an Exhibit to this Quarterly Report on Form 10-QSB.



21



SIGNATURES



In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





ACRONGENOMICS, INC.



Date:  May 19, 2006





By:        /s/ CONSTANTINE POULIOS

Name:   CONSTANTINE POULIOS

Title:     President and Director  Principal Executive Officer







By:

/s/ RON LIZÉE

Name:

RON LIZÉE

Title:

Chief Financial Officer, Secretary and Director  Principal Financial Officer and Principal Accounting Officer





22