| þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------|

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

| Nevada                                   | 98-0377767          |
|------------------------------------------|---------------------|
| (State or Other Jurisdiction of          | (IRS Employer       |
| Incorporation or Organization)           | Identification No.) |
|                                     |                |
| 37 Inbar St., Caesarea,             |                |
| Israel                                   | 30889               |
| (Address of Principal Executive Offices) | (Zip Code)          |

| Large accelerated filer  ̈ | Accelerated filer  ̈         |
|--------------------------------|----------------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company  ̈ |

----

----

| Report of Independent Registered Public Accounting Firm | F - 1       |
|---------------------------------------------------------|-------------|
| Consolidated Balance Sheets                             | F - 2       |
| Consolidated Statements of Operation                    | F - 3       |
| Consolidated Statements Stockholders' Equity            | F - 4       |
| Consolidated Statements of Cash Flows                   | F - 5       |
| Notes to Consolidated Financial Statements              | F - 6  |

----

----

| Consolidated Balance Sheets |
|-----------------------------|

|                                                           |   | December 31 |       |   | December 31 |   |
|----------------------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                                           |   | 2009             |       |   | 2008             |   |
|                                                           |   | $                |       |   | $                |   |
|                                                           |   |             |       |   |             |   |
| Assets                                                         |   |             |       |   |             |   |
| Current assets:                                                |   |             |       |   |             |   |
| Cash and cash equivalents                                      |   |             | 25,812     |   |             |   | 36,943 |   |
| Trade receivables (Note 3)                                     |   |             | 3,359      |   |             |   | 8,803 |   |
| Prepaid expenses and other current assets                      |   |             | 9,332      |   |             |   | 6,854 |   |
| Total current assets                                           |   |             | 38,503     |   |             |   | 52,600 |   |
|                                                           |   |             |       |   |             |   |   |   |
| Other non-current assets                                       |   |             | 2,762      |   |             |   | 4,824 |   |
| Property and equipment, net (Note 4)                           |   |             | 28,555     |   |             |   | 63,113 |   |
| Intangible assets, net                                         |   |             | 74,507     |   |             |   | 86,507 |   |
| Total assets                                                   |   |             | 144,327    |   |             |   | 207,044 |   |
|                                                           |   |             |       |   |             |   |   |   |
| Liabilities and stockholders’ equity (deficit)           |   |             |       |   |             |   |   |   |
| Current liabilities:                                           |   |             |       |   |             |   |   |   |
| Shot term bank credit                                          |   |             | 795        |   |             |   | - |   |
| Accounts payable and accrued liabilities                       |   |             | 285,693    |   |             |   | 167,228 |   |
| Total current liabilities                                      |   |             | 286,488    |   |             |   | 167,228 |   |
|                                                           |   |             |       |   |             |   |   |   |
| Convertible Promissory Note                                    |   |             | 123,274    |   |             |   | - |   |
| Total liabilities                                              |   |             | 409,762    |   |             |   | 167,228 |   |
|                                                           |   |             |       |   |             |   |   |   |
| Commitments (Notes 8 and 10)                                   |   |             |       |   |             |   |   |   |
|                                                           |   |             |       |   |             |   |   |   |
| Stockholders’ equity (Deficiency):                       |   |             |       |   |             |   |   |   |
| Common stock; $0.001 par value; 700,000,000 shares authorized; |   |             |       |   |             |   |   |   |
| and 67,824,268 shares issued and outstanding as of             |   |             |       |   |             |   |   |   |
| December 31, 2009 and December 31, 2008, respectively          |   |             | 67,823     |   |             |   | 67,823 |   |
| Additional paid-in capital                                     |   |             | 3,616,670  |   |             |   | 3,597,625 |   |
| Deficit accumulated during the development stage               |   |             | (3,949,928 | )      |             |   | (3,625,632 | ) |
| Total stockholders’ equity (Deficiency):                 |   |             | (265,435   | )      |             |   | 39,816 |   |
| Total liabilities and stockholders’ equity               |   |             | 144,327    |   |             |   | 207,044 |   |

----

| Consolidated Statements of Operations |
|---------------------------------------|

|                                                |   |                                  |       |   | Cumulative               |   |
|-----------------------------------------------------|--------|---------------------------------------|------------|--------|--------------------------|--------|
|                                                |   |                                  |       |   | from inception      |   |
|                                                |   |                                  |       |   | (May 22, 2002) |   |
|                                                |   | Year ended December 31 |       |   | to December 31 |   |
|                                                |   | 2009                                  |       |   | 2008                     |   |   | 2009 |   |
|                                                |   | $                                     |       |   | $                        |   |   | $ |   |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Revenues                                            |   |                                  | 73,358     |   |                     |   | 57,004 |   |   |   | 145,276 |   |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Costs and expenses :                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Research and development                            |   |                                  | 65,167     |   |                     |   | 142,247 |   |   |   | 526,831 |   |
| Sales and marketing                                 |   |                                  | 14,520     |   |                     |   | 203,463 |   |   |   | 324,350 |   |
| General and administrative *                        |   |                                  | 325,921    |   |                     |   | 602,260 |   |   |   | 3,240,923 |   |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Total operating expenses                            |   |                                  | 405,608    |   |                     |   | 947,970 |   |   |   | 4,092,104 |   |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Operating loss                                      |   |                                  | (332,250   | )      |                     |   | (890,966 | ) |   |   | (3,946,828 | ) |
| Interest income, net                                |   |                                  | 7,954      |   |                     |   | 2,105 |   |   |   | 64,927 |   |
| Loss before income taxes                            |   |                                  | (324,296   | )      |                     |   | (888,861 | ) |   |   | (3,881,901 | ) |
| Income tax expense                                  |   |                                  | -          |   |                     |   | 7,340 |   |   |   | 43,916 |   |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Net loss                                            |   |                                  | (324,296   | )      |                     |   | (896,201 | ) |   |   | (3,949,928 | ) |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Basic and diluted net loss per common share         |   |                                  | (0.00      | )      |                     |   | (0.01 | ) |   |   | (0.08 | ) |
|                                                |   |                                  |       |   |                     |   |   |   |   |   |   |   |
| Weighted average number of shares used in computing |   |                                  |       |   |                     |   |   |   |   |   |   |   |
|  basic and diluted net loss per common share   |   |                                  | 67,824,268 |   |                     |   | 67,719,443 |   |   |   | 50,778,384 |   |

| * | Includes $19,045, $63,545 and $1,083,247 in stock-based compensation to employees and non-employees for the years ended December 31, 2009, 2008 and for the cumulative period from May 22, 2002 (date of inception) to December 31, 2009 respectively. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Statement of Stockholders’ Equity |
|-----------------------------------------|

|                                                    |   |              |       |   |    |   |   | Additional |   |   |                |   |   | Total                 |       |
|---------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|--------|------------|--------|--------|---------------------|--------|--------|-----------------------|------------|
|                                                    |   | Common stock |       |   | paid-in |   |   | Deficit    |   |   | stockholders’ |   |
|                                                    |   | Shares            |       |   | Amount  |   |   | Capital    |   |   | accumulated         |   |   | equity (deficit) |       |
|                                                    |   |              |       |   | $       |   |   | $          |   |   | $                   |   |   | $                     |       |
| Balance as at December 31, 2007                         |   |              | 67,543,275 |   |    |   | 67,543 |       |   |   | 3,534,360           |   |   |                  | (2,729,431 | ) |   |   | 872,472 |   |
|                                                    |   |              |       |   |    |   |   |       |   |   |                |   |   |                  |       |   |   |   |   |   |
| Issuance of common stock on January 22, 2008            |   |              | 33,332     |   |    |   | 33     |       |   |   | (33                 | )      |   |                  | -          |   |   |   | - |   |
| Issuance of common stock on April 27, 2008              |   |              | 180,997    |   |    |   | 181    |       |   |   | (181                | )      |   |                  | -          |   |   |   | - |   |
| Issuance of common stock on July 14, 2008               |   |              | 33,332     |   |    |   | 33     |       |   |   | (33                 | )      |   |                  | -          |   |   |   | - |   |
| Issuance of common stock on October 29, 2008            |   |              | 33,332     |   |    |   | 33     |       |   |   | (33                 | )      |   |                  | -          |   |   |   | - |   |
| Stock-based compensation to employees and non-employees |   |              | -          |   |    |   | -      |       |   |   | 63,545              |   |   |                  | -          |   |   |   | 63,545 |   |
| Net loss for the year                                   |   |              | -          |   |    |   | -      |       |   |   | -                   |   |   |                  | (896,201   | ) |   |   | (896,201 | ) |
|                                                    |   |              |       |   |    |   |   |       |   |   |                |   |   |                  |       |   |   |   |   |   |
| Balance as at December 31, 2008                         |   |              | 67,824,268 |   |    |   | 67,823 |       |   |   | 3,597,625           |   |   |                  | (3,625,632 | ) |   |   | 39,816 |   |
| Stock-based compensation to employees and non-employees |   |              | -          |   |    |   | -      |       |   |   | 19,045              |   |   |                  | -          |   |   |   | 19,045 |   |
| Net loss for the year                                   |   |              | -          |   |    |   | -      |       |   |   | -                   |   |   |                  | (324,296   | ) |   |   | (324,296 | ) |
|                                                    |   |              |       |   |    |   |   |       |   |   |                |   |   |                  |       |   |   |   |   |   |
| Balance as at December 31, 2009                         |   |              | 67,824,268 |   |    |   | 67,823 |       |   |   | 3,616,670           |   |   |                  | (3,949,928 | ) |   |   | (265,435 | ) |

----

| Consolidated Statements of Cash Flows |
|---------------------------------------|

|                                                  |   |                                  |     |   | Cumulative               |   |
|-------------------------------------------------------|--------|---------------------------------------|----------|--------|--------------------------|--------|
|                                                  |   |                                  |     |   | from inception      |   |
|                                                  |   |                                  |     |   | (May 22, 2002) |   |
|                                                  |   | Year ended December 31 |     |   | to December 31 |   |
|                                                  |   | 2009                                  |     |   | 2008                     |   |   | 2009 |   |
|                                                  |   | $                                     |     |   | $                        |   |   | $ |   |
| Cash flows from operating activities:                 |   |                                  |     |   |                     |   |   |   |   |
| Net loss                                              |   |                                  | (324,296 | )      |                     |   | (896,201 | ) |   |   | (3,949,928 | ) |
| Adjustments to reconcile net loss to net cash used in |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| operating activities:                                 |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Services contributed by officers                      |   |                                  | -        |   |                     |   | - |   |   |   | 3,500 |   |
| Depreciation and amortization                         |   |                                  | 46,557   |   |                     |   | 49,018 |   |   |   | 162,707 |   |
| Stock-based compensation                              |   |                                  | 19,045   |   |                     |   | 63,545 |   |   |   | 1,083,247 |   |
| Changes in operating assets and liabilities:          |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Trade receivables                                     |   |                                  | 5,444    |   |                     |   | (4,177 | ) |   |   | (3,359 | ) |
| Prepaid expenses and other current assets             |   |                                  | (2,478   | )      |                     |   | 63,307 |   |   |   | (9,332 | ) |
| Accounts payable and accrued liabilities              |   |                                  | 118,466  |   |                     |   | (13,480 | ) |   |   | 285,693 |   |
| Accrued severance pay                                 |   |                                  | -        |   |                     |   | (3,146 | ) |   |   | - |   |
| Net cash used in operating activities                 |   |                                  | (137,262 | )      |                     |   | (741,134 | ) |   |   | (2,427,472 | ) |
|                                                  |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Cash flows from investing activities:                 |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Decrease (increase) in long term deposit              |   |                                  | 2,062    |   |                     |   | 5,855 |   |   |   | (2,762 | ) |
| Decrease in restricted cash                           |   |                                  | -        |   |                     |   | 30,000 |   |   |   | - |   |
| Increase in short term deposits                       |   |                                  | -        |   |                     |   | 650,000 |   |   |   | - |   |
| Purchase of property and equipment                    |   |                                  | -        |   |                     |   | (4,937 | ) |   |   | (145,769 | ) |
| Purchase of intangible assets                         |   |                                  | -        |   |                     |   | - |   |   |   | (120,000 | ) |
| Net cash provided by (used) in investing activities   |   |                                  | 2,062    |   |                     |   | 680,918 |   |   |   | (268,531 | ) |
|                                                  |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Cash flows from financing activities:                 |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Decrease in short term bank-credit                    |   |                                  | 795      |   |                     |   | - |   |   |   | 795 |   |
| Convertible Promissory Note                           |   |                                  | 123,274  |   |                     |   |   |   |   |   | 123,274 |   |
| Proceeds from issuance of common stock                |   |                                  | -        |   |                     |   | - |   |   |   | 2,836,286 |   |
| Offering costs                                        |   |                                  | -        |   |                     |   | - |   |   |   | (238,540 | ) |
| Net cash provided by financing activities             |   |                                  | 124,069  |   |                     |   | - |   |   |   | 2,721,815 |   |
| Net (decrease) increase in cash and cash equivalents  |   |                                  | (11,131  | )      |                     |   | (60,216 | ) |   |   | 25,812 |   |
| Cash and cash equivalents at beginning of period      |   |                                  | 36,943   |   |                     |   | 97,159 |   |   |   | - |   |
| Cash and cash equivalents at end of period            |   |                                  | 25,812   |   |                     |   | 36,943 |   |   |   | 25,812 |   |
|                                                  |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:    |   |                                  |     |   |                     |   |   |   |   |   |   |   |
| Cash paid for interest                                |   |                                  | -        |   |                     |   | - |   |   |   | - |   |
| Cash paid for taxes                                   |   |                                  | -        |   |                     |   | - |   |   |   | - |   |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

|   | 1. | How an entity should evaluate whether an instrument (or embedded feature) is indexed to its own stock. |
|--------|----|--------------------------------------------------------------------------------------------------------|

|   | 2. | How the currency in which the strike price of an equity-linked financial instrument (or embedded equity-linked feature) is denominated affects the determination of whether the instrument is indexed to an entity’s own stock. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | How an issuer should account for market-based employee stock option valuation instruments. |
|--------|----|--------------------------------------------------------------------------------------------|

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

|                       |   | December 312009 |   |   | December 312008 |   |
|----------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                       |   | $                    |   |   | $                    |   |
|                       |   |                 |   |   |                 |   |
| Value-added tax receivable |   |                 | 3,414  |   |                 |   | 1,429 |   |
| Prepaid expenses           |   |                 | 5,918  |   |                 |   | 5,425 |   |
|                       |   |                 | 9,332  |   |                 |   | 6,854 |   |

|                                             |   | Estimated        |   |   |             |   |    |             |   |
|--------------------------------------------------|--------|------------------|--------|--------|------------------|--------|---------|------------------|--------|
|                                             |   | useful life |   |   | December 31 |   |    | December 31 |   |
|                                             |   | (years)          |   |   | 2009             |   |    | 2008             |   |
|                                             |   |             |   |   | $                |   |    | $                |   |
|                                             |   |             |   |   |             |   |    |             |   |
| Computer equipment                               |   |             | 3      |   |             |   | 13,487  |             |   |   | 13,487 |   |
| Production equipment                             |   |             | 3      |   |             |   | 122,341 |             |   |   | 122,341 |   |
| Furniture                                        |   |             | 7-15   |   |             |   | 7,924   |             |   |   | 7,924 |   |
| Leasehold improvements                           |   |             | (*     | )      |             |   | 2,017   |             |   |   | 2,017 |   |
|                                             |   |             |   |   |             |   | 145,769 |             |   |   | 145,769 |   |
| Less - Accumulated depreciation and amortization |   |             |   |   |             |   | 117,214 |             |   |   | 82,656 |   |
|                                             |   |             |   |   |             |   | 28,555  |             |   |   | 63,113 |   |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

|          |   | December 31 |     |   | December 31 |   |
|---------------|--------|------------------|----------|--------|------------------|--------|
|          |   | 2009             |     |   | 2008             |   |
|          |   | $                |     |   | $                |   |
|          |   |             |     |   |             |   |
| United States |   |             | (34,274  | )      |             |   | (954,198 | ) |
| Israel        |   |             | (261,914 | )      |             |   | 65,335 |   |
|          |   |             | (296,188 | )      |             |   | (888,863 | ) |

|                              |   | December 31 |       |   | December 31 |   |
|-----------------------------------|--------|-------------|------------|--------|-------------|--------|
|                              |   | 2008        |       |   | 2007        |   |
|                              |   | $           |       |   | $           |   |
|                              |   |        |       |   |        |   |
| Deferred tax assets:              |   |        |       |   |        |   |
| Net operating loss carry forwards |   |        | 1,286,057  |   |        |   | 1,206,307 |   |
| Valuation allowance               |   |        | (1,286,057 | )      |        |   | (1,206,307 | ) |
|                              |   |        |       |   |        |   |   |   |
| Net deferred tax assets           |   |        | -          |   |        |   | - |   |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

|                                                      |   | Year ended December 31 |     |
|-----------------------------------------------------------|--------|---------------------------------------|----------|
|                                                      |   | 2009                                  |     |   | 2008 |   |
|                                                      |   | $                                     |     |   | $ |   |
|                                                      |   |                                  |     |   |   |   |
| Loss before income taxes as per the income statement      |   |                                  | (296,188 | ) |   |   | (888,863 | ) |
|                                                      |   |                                  |     |   |   |   |   |   |
| Tax calculated according to the statutory tax rate of 34% |   |                                  | (100,704 | ) |   |   | (302,213 | ) |
|                                                      |   |                                  |     |   |   |   |   |   |
| Increase (decrease) in income tax resulting from:         |   |                                  |     |   |   |   |   |   |
| Non-deductible expenses                                   |   |                                  | -        |   |   |   | 4,870 |   |
| Change in valuation allowance                             |   |                                  | 79,750   |   |   |   | 324,009 |   |
| Foreign tax rate differential                             |   |                                  | 23,695   |   |   |   | (4,573 | ) |
|  Exchange rate differences                           |   |                                  | (2,741   | ) |   |   | (14,753 | ) |
| Total income tax expense                                  |   |                                  | -        |   |   |   | 7,340 |   |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

----

| ACRO Inc. (A Development Stage Company)                                |
|------------------------------------------------------------------------|
| Consolidated Financial Statements                                      |
| Notes to the Consolidated Financial Statements as of December 31, 2009 |

----

|   | ACRO INC.               |   |                    |
|--------|-------------------------|--------|-------------------------|
|   | (Registrant)            |   |                    |
|   |                    |   |                    |
|   | By:                     |   |                    |
|   | /s/ Gadi Aner           |   | /s/ Gabby Klausner      |
|   | Gadi Aner               |   | Gabby Klausner          |
|   | Chief Executive Officer |   | Treasurer and           |
|   | and Chairman            |   | Chief Financial Officer |
|   | Date: May 6, 2011       |   | Date: May 6, 2011       |

----