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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-KSB

(Mark One)

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

For the fiscal year ended December 31, 2007

[ ] TRANSITION REPORT UNDER 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.(Name
of small business issuer in its charter)

|Nevada                                                               | 52-2219285                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|                                                                     |                                     
|14, Rue Kleberg                                                      |                                     
|CH-1201 Geneva, Switzerland                                          | ____________                        
|(Address of principal executive offices)                             | (Zip Code)                          

Issuers telephone number +41 2271 65 300

Securities registered pursuant to Section 12(b) of the Exchange
Act:

|Title of each class | Name of each exchange on which registered
|------------------- | -----------------------------------------
|Nil                 | Nil                                      

Securities registered pursuant to Section 12(g) of the Exchange
Act:

Common Shares, par value $0.001(Title of
class)

Check whether the issuer is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act. [ ]

Note:Checking the box above will not relieve any
registrant required to file reports pursuant to Section 13 or 15(d) of the
Exchange act from their obligations under those Sections.

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 [ ]

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Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrants knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

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

State issuers revenues for its most recent fiscal year.
$Nil

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked prices of such common
equity, as of a specified date within 60 days. (See definition of affiliate in
Rule 12b-2 of the Exchange Act.)

Note: If determining whether a person is an affiliate will
involve an unreasonable effort and expense, the issuer may calculate the
aggregate market value of the common equity held by non-affiliates on the basis
of reasonable assumptions, if the assumptions are stated.

16,853,450 @ $0.415 = $6,994,181

(1)Represents the average bid and ask price of which
our shares were last traded on the OTC BB on April 8, 2008. Used only for the
purpose of this calculation.

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

20,656,481 common shares issued and outstanding as of
April 8, 2008.

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

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PART I

|ITEM 1. | DESCRIPTION OF BUSINESS.
|------- | ------------------------

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

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

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

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

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

Overview

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

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

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

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

In early 2006, our Board of Directors decided that to devote
100% of our companys attention and efforts on a single project such as the
molecular diagnostic technology platform for the next two to three years would
involve too much risk and market exposure. Therefore, it was necessary for our
company to diversify its research activities. On

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February 13, 2006, after the resignation of Dr. Leftheris
Georgakopoulos, we entered into an agreement with him, for the return of the
4,000,000 shares of our common stock in exchange for a royalty of fifty percent
(50%) over any revenue that we would generate from any future products based on
certain patents regarding the molecular diagnostic technology platforms.

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

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

On May 8, 2007, we appointed Dr. Evan Manolis to the Board of
Directors and Scientific Committee. On September 3, 2007, we appointed Dr.
Dimitri Goundis as our Chief Executive Officer.

Our Current Focus  BioLED Technology

On May 22, 2006, we signed a Joint Development Agreement with
Molecular Vision Limited, a research company registered in London, England.
Molecular Vision Limited, has developed, within their fields of research at
Imperial College London, a technology platform combining microfluidics with an
optical detection system based on polymer Light Emitting Diodes (commonly
referred to as pLED) to deliver potentially affordable, intelligent and readily
portable Point-Of-Care (POC) medical diagnostic devices. The technology platform
combining microfluidics and pLED is known as BioLED Technology. Under such
Joint Development Agreement with Molecular Vision Limited, we acquired the
exclusive rights to develop and commercialize the existing intellectual
properties related to the BioLED Technology and have first refusal rights to
develop any additional applications derived from Molecular Visions
pipeline.

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

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

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

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

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

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

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

On November 14, 2007, we entered into a letter of intent with
Molecular Vision Limited for the acquisition of a 100% of Molecular Vision,
whereby we will acquire, subject to certain payments, all of the intellectual
property and assets of Molecular Vision and will retain the founders, Professor
Donald Bradley, Professor Andrew De Mello and Profession John De Mellow, and
their technical team to continue to lead the development of the POC devices and
technology at the Molecular Vision laboratory at Imperial College in London, UK.
On February 1, 2008, in conjunction with our acquisition of a portion of
Molecular Vision (as described below), we agreed to extend the date to acquire
100% of that company to March 14, 2008. However, we did not close the
transaction and no further binding agreement has been entered.

On February 1, 2008, we entered into an agreement with
Molecular Vision Ltd. whereby we purchased 16,556 ordinary shares of Molecular
Vision for £549,991.20. The transaction completed that date. Upon the exercise
of certain outstanding options, we will hold a 10.9% interest in Molecular
Vision on a fully diluted basis.

BioLED Technology

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

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

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

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

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

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

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

Market Potential

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

Diabetes Management (Kidney Health Markers):

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

Cardiovascular Diseases (Cardiac Markers):

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

COMPLIANCE WITH GOVERNMENT REGULATION

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

The Regulatory Process

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

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

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

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

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

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

Establishment registration on form
FDA-2891,

Medical Device Listing on form
FDA-2892,

Quality System (QS) regulation,

Labeling requirements, and

Medical Device Reporting (MDR)

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

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

Product Approval in the United States

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

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

Product Approval in Europe

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

The applicable regulations vest the authority to permit
affixing of the CE Mark with various notified bodies. These are private and
state organizations which operate under license from the member states of the
European Union to certify that appropriate quality assurance standards and
compliance procedures are followed by developers and

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manufacturers of medical device products or, alternatively,
that a manufactured medical product meets a more limited set of requirements.
Notified bodies are also given the responsibility for determination of the
appropriate standards to apply to a medical product. Receipt of permission to
affix the CE Mark enables a company to sell a medical device or product in all
European Union member countries. Other registration requirements may also need
to be satisfied in certain countries. We have not received permission from a
notified body to affix the CE Mark to our BioLED Technology, nor have we as yet
requested such permission.

DISTRIBUTION METHODS FOR OUR PRODUCTS

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

STATUS OF PRODUCT

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

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

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

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

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

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

EMPLOYEES

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

RISK FACTORS

Much of the information included in this annual report includes
or is based upon estimates, projections or other forward looking statements.
Such forward looking statements include any projections and estimates made by us
and our management in connection with our business operations. While these
forward-looking statements, and any assumptions upon which they are based, are
made in good faith and reflect our current judgment regarding the

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direction of our business, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein.

Such estimates, projections or other forward looking
statements involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other forward looking statements.

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

RISKS RELATED TO OUR BUSINESS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We intend that our potential products will be used as an
alternative to the specialized laboratories equipped with bulky and expensive
equipment. Current methods of laboratory testing have been widely practiced for
a number of years, and our technology and products may not be accepted by the
marketplace as readily as these or other

---

11

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

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

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

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

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

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

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

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

---

12

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

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

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

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

RISKS RELATED TO OUR COMMON STOCK

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

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

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

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

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

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

---

13

have the effect of reducing the level of trading activity in
the secondary market for the stock that is subject to these penny stock rules.
Consequently, these penny stock rules may affect the ability of broker-dealers
to trade our securities.

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

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

|ITEM 2. | DESCRIPTION OF PROPERTY.
|------- | ------------------------

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

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

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

|ITEM 3. | LEGAL PROCEEDINGS.
|------- | ------------------

Our company is not a party to any pending legal proceeding and
no legal proceeding is contemplated or threatened as of the date of this annual
report

|ITEM 4. | SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY
      HOLDERS.
|------- | -----------------------------------------------------------

No matters were submitted to our security holders for a vote
during the fourth quarter of our fiscal year ending December 31, 2007.

PART II

|ITEM 5. | MARKET FOR COMMON EQUITY AND RELATED
      STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY
      SECURITIES.
|------- | ------------------------------------------------------------------------------------------------------------------------------

Market Information

Our common shares are currently trading on the OTC Bulletin
Board under the symbol AGNM. Our common shares commenced trading on the OTC
Bulletin Board on July 15, 2003. The following quotations reflect the high and
low bids for our shares of common stock based on inter-dealer prices, without
retail mark-up, mark-down or commission and may not represent actual
transactions.

Quarter Ended
    High
    LowMarch 31, 2006
    $4.70
    $2.40


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14

Quarter
      Ended
    High
    LowJune 30, 2006
    $3.25
    $1.80September 30, 2006
    $2.45
    $0.87December 31, 2006
    $1.20
    $0.35March 31, 2007
    $1.76
    $0.35June 30, 2007
    $1.55
    $0.70September 30, 2007
    $1.26
    $0.70December 31, 2007
    $1.35
    $0.85March 31, 2008
    $1.12
    $0.55


Holders of our Common Stock

As of April 8, 2008, there were 228 registered shareholders of
our common stock and 20,656,481 common shares issued and outstanding.

Dividends

Since our inception, we have not declared nor paid any cash
dividends on our capital stock and we do not anticipate paying any cash
dividends in the foreseeable future. Our current policy is to retain any
earnings in order to finance the expansion of our operations. Our board of
directors will determine future declarations and payments of dividends, if any,
in light of the then-current conditions they deem relevant and in accordance
with applicable corporate law.

There are no restrictions in our articles of incorporation or
bylaws that prevent us from declaring dividends. The Nevada Revised Statutes,
however, do prohibit us from declaring dividends where, after giving effect to
the distribution of the dividend:

|1. | We would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                          
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                             
|2. | Our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed to satisfy the rights of
      shareholders who have preferential rights superior to those receiving the
      distribution.

Recent Sales of Unregistered Securities

On February 12, 2007, we issued 220,000 units at $0.50 per unit
for total proceeds of $110,000, $40,000 which was received as at December 31,
2006. Each unit consists of one share of common stock and one-half of one stock
purchase warrant. Each warrant entitles the holder the right to purchase one
share of common stock of our company at $1.00 for a period of twelve months. Our
company also issued 20,000 units as a finders fee for this placement.

On February 12, 2007, we granted options to purchase an
aggregate of 700,000 common shares of our company to three of our officers and
to one consultant at an exercise price of $0.50 per share, exercisable until
February 12, 2017. The options vest as to 25% on August 12, 2007, 25% on
February 12, 2008, 25% on August 12, 2008 and 25% on February 12, 2009. None of
the four grantees is a U.S. person (as that term is defined in Regulation S of
the Securities Act of 1933), the options were granted in an offshore transaction
and we relied on the exemption from registration provided by Regulation S,
promulgated under the Securities Act of 1933/

---

15

On February 13, 2007, we granted options to purchase 2,000,000
common shares of our company to Molecular Vision Limited at an exercise price of
$0.50 per share, as per our Development Agreement with them dated February 13,
2007. The options vest in four stages set at achieving predetermined milestones
and expire 5 years from date of vesting.

On March 5, 2007, we issued 90,909 units at $1.10 per unit for
total proceeds of $100,000. Each unit consists of one share of common stock and
one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $2.00 for a period
of eighteen months.

On March 22, 2007, we granted 600,000 common share purchase
options exercisable at $1.00 per share expiring on March 22, 2012, to the
President of our company for his services. 300,000 of these options vested on
September 22, 2007 and 300,000 vest on March 22, 2008.

On March 23, 2007, we issued 150,000 units at $1.10 per unit
for total proceeds of $165,000. Each unit consists of one share of common stock
and one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $1.50 for a period
of twelve months. We issued the securities to non U.S. persons (as that term is
defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On April 20, 2007, we issued 749,295 units at $1.10 per unit
for total proceeds of $824,224. Each unit consists of one share of common stock
and one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $1.50 for a period
of eighteen months. We issued the securities to non U.S. persons (as that term
is defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On May 9, 2007, we issued 70,000 units at $1.10 per unit for
total proceeds of $77,000. Each unit consists of one share of common stock and
one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $1.50 for a period
of eighteen months. We issued the securities to non U.S. persons (as that term
is defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On July 31, 2007, we issued 145,500 units at $1.10 per unit for
total proceeds of $160,050. Each unit consists of one share of common stock and
one stock purchase warrant. Each warrant entitles the holder the right to
purchase one share of common stock of our company at $1.25 for a period of
twelve months. We issued the securities to non U.S. persons (as that term is
defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On July 31, 2007 we issued 250,000 units at $0.80 per unit for
total proceeds of $200,000. Each unit consists of one share of common stock and
one stock purchase warrant. Each warrant entitles the holder the right to
purchase one share of common stock of our company at $1.25 for a period of
twelve months. We issued the securities to non U.S. persons (as that term is
defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On August 31, 2007, we issued 330,000 units at $1.10 per unit
for total proceeds of $363,000. Each unit consists of one share of common stock
and one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $1.50 for a period
of eighteen months.

On September 3, 2007, we issued 750,000 shares of our common
stock at $0.86 per share as signing bonus in accordance with an employment
agreement with Dr. Dimitris Goundis. We issued the common shares to a non U.S.
person (as that term is defined in Regulation S of the Securities Act of 1933)
in an offshore transaction relying on Regulation S and/or Section 4(2) of the
Securities Act of 1933.

On October 20, 2007, we issued 695,220 units at $1.10 per unit
for total proceeds of $764,742. Each unit consists of one share of common stock
and one-half of one stock purchase warrant. Each warrant entitles the holder the
right to purchase one share of common stock of our company at $1.50 for a period
of eighteen months. We issued the

---

16

securities to non U.S. persons (as that term is defined in
Regulation S of the Securities Act of 1933) in an offshore transaction relying
on Regulation S and/or Section 4(2) of the Securities Act of 1933.

During the year ended December 31, 2007, our company issued
126,090 common shares at $0.50 to $1.10 per share as finders fee commission.
The total value of these shares were $118,499. We issued the common shares to a
non U.S. person (as that term is defined in Regulation S of the Securities Act
of 1933) in an offshore transaction relying on Regulation S and/or Section 4(2)
of the Securities Act of 1933.

On December 8, 2007, our company issued 158,000 commons shares
at $1.00 per share to settle accounts payable with a consultant. We issued the
common shares to a non U.S. person (as that term is defined in Regulation S of
the Securities Act of 1933) in an offshore transaction relying on Regulation S
and/or Section 4(2) of the Securities Act of 1933.

On February 1, 2008, our company issued 300,000 common shares
at $0.95 per share to two consultants for past and future services to be
rendered. We issued the common shares to non U.S. person (as that term is
defined in Regulation S of the Securities Act of 1933) in an offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933.

On February 1, 2008, the Company issued 1,250,010 units at
$0.80 per unit for total proceeds of $1,000,008. Each unit consists of one share
of common share and one common share purchase warrant. Each warrant entitles the
holder the right to purchase one share of common stock of the Company at $1.60.
The warrants expire on August 15, 2009.

On February 14, 2008, our company issued 1,150,000 common
shares at $0.79 per share to two of our officers as a bonus for past services.
We issued the common shares to non U.S. persons (as that term is defined in
Regulation S of the Securities Act of 1933) in an offshore transaction relying
on Regulation S and/or Section 4(2) of the Securities Act of 1933.

On February 22, 2008, the Company issued 90,000 units at $1.10
per unit for total proceeds of $99,000. Each unit consists of one common share
and one-half of one common share purchase warrant. Each warrant entitles the
holder the right to purchase one common share of the Company at $1.50. The
warrants expire on August 1, 2009.

Equity Compensation Plan Information

As at December 31, 2007, we do not have any compensation plans
in place.

Purchases of Equity Securities by the Issuer and Affiliated
Purchasers

We did not purchase any of our shares of common stock or other
securities during our fiscal year ended December 31, 2007.

|ITEM 6. | MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN
      OF OPERATION.
|------- | --------------------------------------------------------------

The following is a discussion and analysis of our plan of
operation for the next year ended December 31, 2008 and the factors that could
affect our future financial condition and plan of operation.

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

---

17

Plan of Operations

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

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

We have not generated any revenues and our operating activities
have resulted in a loss of $5,056,117 for the year ended December 31, 2007. This
negative cash flow is attributable to our operation expenses, including but not
limited to, research and development expense and the payment of our audit fees
and legal fees. We anticipate that our operating expenses will increase as we
intend to conduct detailed development of our first prototype Point-of-Care
diagnostic device and work towards its completion. We estimate our expenses in
the next twelve months will be approximately $2,850,000, generally falling in
two major categories: $2,000,000 in research and development costs and $850,000
in general and administrative expenses.

Research and Development Costs

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

General and Administrative Expenses

For the next twelve months, we estimate that our general and
administrative expenses will be approximately $850,000. These expenses will
include approximately $450,000 on consulting, stock-based compensation and
investor relations, approximately $200,000 on office supplies, office rent,
travel and accommodations and $200,000 on professional fees, which consist
primarily of accounting, auditing fees for the year-end audit and legal fees for
securities advice, directors liability insurance and cost of fundraising.

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

Results of Operations

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

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18

We incurred operating expenses in the amount of $5,056,117 for
the year ended December 31, 2007, compared with expenses of $2,480,288 the same
period from the previous year. The operating expenses of $5,056,117 incurred
during the year ended December 31, 2007 included, $2,132,270 for rent and
management fees, $1,871,890 for research and development, $262,344 for office
expenses, travel, bank charges (net of interest income), transfer agents, and
foreign exchange, $27,387 for public relations, $117,321 for accounting,
auditing and legal fees and $644,905 for consultations.

Financial Condition and Liquidity

We had cash on hand of $343,695 as at December 31, 2007,
compared with $4,552 as at December 31, 2006. We had a working capital deficit
of $1,248,195 at December 31, 2007, compared to a working capital deficit of
$185,025 as at December 31, 2006.

Our present cash reserves of $343,695 are not sufficient to
meet our cash requirements for the next twelve months. We will have to raise
additional funds from the private placement of our securities to meet our
budgeted operating expenses of $2,850,000 for the next twelve months.

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

Off-Balance Sheet Arrangements

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

Critical Accounting Policies and Estimates

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

|ITEM 7. | FINANCIAL STATEMENTS.
|------- | ---------------------

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

It is the opinion of management that the audited financial
statements for the fiscal year ended December 31, 2007 include all adjustments
necessary in order to ensure that the audited financial statements are not
misleading.

The following consolidated financial statements are filed as
part of this annual report:

|1. | Report of Independent Registered Public Accounting Firm
      (BDO Dunwoody LLP) dated April 4, 2008;                                                                                         
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                               
|2. | Report of Independent Registered Public Accounting Firm
      (Amisano Hancons, Chartered Acountants) dated March 14, 2007;                                                                   
|   |                                                                                                                                                                                               
|3. | Balance Sheets as at December 31, 2007 and December 31,
      2006;                                                                                                                           
|   |                                                                                                                                                                                               
|4. | Statements of Operations for the years ended December 31,
      2007 and December 31, 2006 and for the cumulative period from date of
      organization August 17, 1999 to December 31,
2007;

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19

|5. | Statements of Cash Flows for the years ended December 31,
      2007 and December 31, 2006 and for the cumulative period from date of
      organization August 17, 1999 to December 31, 2007;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                               
|6. | Statements of Stockholders Equity (Deficiency) for the
      period from inception, August 17, 1999 to December 31, 2007; and                                                                
|   |                                                                                                                                                                                               
|7. | Notes to Financial
Statements.                                                                                                                                                                

---

ACRONGENOMICS, INC.

(A Development Stage Company)

FINANCIAL STATEMENTS

December 31, 2007 and 2006

(Stated in US Dollars)

---

|                     | BDO DunwoodyLLP               | #604  750 West Pender Street
|-------------------- | ----------------------------- | -----------------------------
|Chartered Accountant | Vancouver, BC, Canada V6C 2T7
|                     | Telephone: (604) 689-0188    
|                     | Fax: (604) 689-9773          

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders, 
  Acrongenomics, Inc.
  (A Development Stage Company)

We have audited the accompanying balance sheet of Acrongenomics,
  Inc. (the Company, a Development Stage Company) as of December 31,
  2007 and the related statements of operations, cash flows and stockholders'
  equity (deficiency) for the year ended December 31, 2007 and for the period
  from August 17, 1999 (Date of Inception) to December 31, 2007. These financial
  statements are the responsibility of the Company's management. Our responsibility
  is to express an opinion on these financial statements based on our audit. We
  did not audit the financial statements of the Company for the period from August
  17, 1999 (Date of Inception) to December 31, 2006. Such statements are included
  in the cumulative inception to December 31, 2007 totals of the statements of
  operations, cash flows and stockholders' equity (deficiency) and reflect a net
  loss of 79% of the related cumulative totals. Those financial statements were
  audited by other auditors whose report has been furnished to us and our opinion,
  insofar as it relates to the amount for the period from August 17, 1999 (Date
  of Inception) to December 31, 2006 included in the cumulative totals, is based
  solely upon the report of the other auditors.

We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform an audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. The Company is not
  required to have, nor were we engaged to perform, an audit of its internal control
  over financial reporting. Our audit included consideration of internal control
  over financial reporting as a basis for designing audit procedures that are
  appropriate in the circumstances, but not for the purpose of expressing an opinion
  on the effectiveness of the Companys internal control over financial reporting.
  Accordingly, we express no such opinion. An audit also includes examining, on
  a test basis, evidence supporting the amounts and disclosures in the financial
  statements, assessing the accounting principles used and significant estimates
  made by management, as well as evaluating the overall financial statement presentation.
  We believe that our audit and the report of the other auditors provide a reasonable
  basis for our opinion.

In our opinion, based on our audit and the report of the other
  auditors, these financial statements referred to above present fairly, in all
  material respects, the financial position of Acrongenomics, Inc. as of December
  31, 2007 and the results of its operations and its cash flows for the year then
  ended and for the period from August 17, 1999 (Date of Inception) to December
  31, 2007, in conformity with accounting principles generally accepted in the
  United States of America.

The accompanying financial statements referred to above have
  been prepared assuming that the Company will continue as a going concern. As
  discussed in Note 1 to the financial statements, the Company is in the development
  stage, has not yet achieved profitable operations and is dependent on its ability
  to raise capital from shareholders or other sources to meet its obligations
  and repay its liabilities arising from normal business operations when they
  come due. These factors, along with other matters as set forth in Note 1, raise
  substantial doubt that the Company will be able to continue as a going concern.
  The financial statements do not include any adjustments that might result from
  the outcome of these uncertainties.

(signed)  BDO Dunwoody LLP

Chartered Accountants

Vancouver, Canada
  April 4, 2008

BDO DunwoodyLLP is a Limited Liability Partnership
  registered in Ontario

---

|A PARTNERSHIPOFINCORPORATEDPROFESSIONALS | AMISANOHANSON       
|---------------------------------------- | --------------------
|                                         | CHARTEREDACCOUNTANTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders, 
  Acrongenomics, Inc.
  (A Development Stage Company)

We have audited the accompanying balance sheet of Acrongenomics,
  Inc. (A Development Stage Company) as of December 31, 2006 and the related statements
  of operations, cash flows and stockholders equity (deficiency) for the
  year ended December 31, 2006 and the period from August 17, 1999 (Date of Inception)
  to December 31, 2006. These financial statements are the responsibility of the
  Company's management. Our responsibility is to express an opinion on these financial
  statements based on our audit.

We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States of America). Those
  standards require that we plan and perform an audit to obtain reasonable assurance
  about whether the financial statements are free of material misstatement. An
  audit includes examining on a test basis, evidence supporting the amounts and
  disclosures in the financial statements. An audit also includes assessing the
  accounting principles used and significant estimates made by management, as
  well as evaluating the overall financial statement presentation. We believe
  that our audit provides a reasonable basis for our opinion.

In our opinion, these financial statements referred to above
  present fairly, in all material respects, the financial position of Acrongenomics,
  Inc. (A Development Stage Company) as of December 31, 2006 and the results of
  its operations and its cash flows for the year ended December 31, 2006 and the
  period from August 17, 1999 (Date of Inception) to December 31, 2006, in conformity
  with accounting principles generally accepted in the United States of America.

The accompanying financial statements referred to above have
  been prepared assuming that the Company will continue as a going concern. As
  discussed in Note 1 to the financial statements, the Company is in the development
  stage, and has not yet achieved profitable operations and is dependent on its
  ability to raise capital from shareholders or other sources to sustain operations.
  These factors, along with other matters as set forth in Note 1, raise substantial
  doubt that the Company will be able to continue as a going concern. The financial
  statements do not include any adjustments that might result from the outcome
  of these uncertainties.

|Vancouver, Canada                 | AMISANO HANSON         
|--------------------------------- | -------------------------
|March 14, 2007                    | Chartered Accountants    
|                                  |                          
|                                  |                          
|                                  |                          
|                                  |                          
|750 WEST PENDER STREET, SUITE 604 | TELEPHONE: 604-689-0188  
|VANCOUVER CANADA                  | FACSIMILE: 604-689-9773  
|V6C 2T7                           | E-MAIL: amishan@telus.net

---

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

|                                                                  |   | 2007        |   |   | 2006        |  
|----------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|**ASSETS**                                                        |  
|Current                                                           |   |             |   |   |             |  
|Cash                                                              | $ | 343,695     |   | $ | 4,552       |  
|Prepaid expenses and deposit                                      |   | 22,280      |   |   | -           |  
|                                                                  |   |             |   |   |             |  
|                                                                  | $ | 365,975     |   | $ | 4,552       |  
|                                                                  |   |             |   |   |             |  
|LIABILITIES                                                       |  
|                                                                  |   |             |   |   |             |  
|Current                                                           |   |             |   |   |             |  
|Accounts payable and accrued
      liabilities Notes 4, 9 and 10 | $ | 1,613,170   |   | $ | 161,304     |  
|Loans payable  Note 5                                            |   | 1,000       |   |   | 28,273      |  
|                                                                  |   |             |   |   |             |  
|                                                                  |   | 1,614,170   |   |   | 189,577     |  
|                                                                  |   |             |   |   |             |  
|STOCKHOLDERS DEFICIENCY                                          |  
|                                                                  |   |             |   |   |             |  
|Common stock, $0.001 par value  Notes 6, 8, 9 and 10             |   |             |   |   |             |  
|100,000,000
      shares authorized                               |   |             |   |   |             |  
|17,866,471 shares issued (2006: 14,131,457)                       |   | 17,866      |   |   | 14,131      |  
|Additional paid-in capital                                        |   | 14,508,056  |   |   | 10,475,544  |  
|Share subscriptions  Notes 6 and 8                               |   | (3,300      | ) |   | 40,000      |  
|Deficit accumulated during the development
      stage            |   | (15,770,817 | ) |   | (10,714,700 | )
|                                                                  |   |             |   |   |             |  
|                                                                  |   | (1,248,195  | ) |   | (185,025    | )
|                                                                  |   |             |   |   |             |  
|                                                                  | $ | 365,975     |   | $ | 4,552       |  

Nature of Operations and Ability to Continue as a Going Concern
  Note 1 
  Commitments  Notes 6 and 9 
  Subsequent Events  Notes 6, 9 and 10

SEE ACCOMPANYING NOTES AND REPORTS OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRMS

---

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

|                                                                 |   |                     |   |   |               |   |   | August 17,    |  
|---------------------------------------------------------------- | - | ------------------- | - | - | ------------- | - | - | ------------- | -
|                                                                 |   |                     |   |   |               |   |   | 1999 (Date of |  
|                                                                 |   | For the Years Ended |   |   | Inception) to |  
|                                                                 |   | December 31,        |   |   | December 31,  |  
|                                                                 |   | 2007                |   |   | 2006          |   |   | 2007          |  
|                                                                 |   |                     |   |   |               |   |   | (Cumulative)  |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Expenses                                                         |   |                     |   |   |               |   |   |               |  
|Accounting and audit fees  Note 4                               | $ | 93,490              |   | $ | 130,061       |   | $ | 383,353       |  
|Amortization of patents                                          |   | -                   |   |   | -             |   |   | 741,430       |  
|Appraisals                                                       |   | -                   |   |   | 4,500         |   |   | 14,500        |  
|Bank charges                                                     |   | 5,027               |   |   | 2,704         |   |   | 12,682        |  
|Consulting fees  Notes 4 and 6                                  |   | 644,905             |   |   | 166,311       |   |   | 1,841,904     |  
|Legal fees - Note 4                                              |   | 23,831              |   |   | 72,170        |   |   | 255,995       |  
|Management fees  Notes 4 and 6                                  |   | 2,119,505           |   |   | 614,873       |   |   | 2,709,178     |  
|Office and miscellaneous                                         |   | 43,964              |   |   | 28,636        |   |   | 98,725        |  
|Public relations and donation                                    |   | 27,387              |   |   | 100,000       |   |   | 574,394       |  
|Rent - Note 4                                                    |   | 12,765              |   |   | 12,000        |   |   | 48,765        |  
|Research and development  Note 4                                |   | 1,871,890           |   |   | 1,277,780     |   |   | 8,553,859     |  
|Transfer agent and filing
      fees                             |   | 5,821               |   |   | 4,238         |   |   | 26,330        |  
|Travel                                                           |   | 212,160             |   |   | 80,351        |   |   | 331,069       |  
|Write-down of patents 
      Note 3                             |   | -                   |   |   | 1             |   |   | 8,004,447     |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Operating loss                                                   |   | (5,060,745          | ) |   | (2,493,625    | ) |   | (23,596,631   | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Interest income                                                  |   | 495                 |   |   | 16,992        |   |   | 22,938        |  
|Foreign exchange gain (loss)                                     |   | 4,133               |   |   | (3,655        | ) |   | 4,874         |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Loss from continuing operations                                  |   | (5,056,117          | ) |   | (2,480,288    | ) |   | (23,568,819   | )
|Loss from discontinued operations                                |   | -                   |   |   | -             |   |   | (41,998       | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Net loss                                                         | $ | (5,056,117          | ) | $ | (2,480,288    | ) | $ | (23,610,817   | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Basic and diluted loss per share  continuing
      operations   | $ | (0.30               | ) | $ | (0.17         | ) |   |               |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Basic and diluted loss per share  discontinued
      operations | $ | (0.00               | ) | $ | (0.00         | ) |   |               |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Weighted average shares outstanding                              |   | 15,794,532          |   |   | 14,370,894    |   |   |               |  

SEE ACCOMPANYING NOTES AND REPORTS OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRMS

---

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

|                                                                      |   |                     |   |   |               |   |   | August 17,    |  
|--------------------------------------------------------------------- | - | ------------------- | - | - | ------------- | - | - | ------------- | -
|                                                                      |   |                     |   |   |               |   |   | 1999 (Date of |  
|                                                                      |   | For the Years Ended |   |   | Inception) to |  
|                                                                      |   | December 31,        |   |   | December 31,  |  
|                                                                      |   | 2007                |   |   | 2006          |   |   | 2007          |  
|                                                                      |   |                     |   |   |               |   |   | (Cumulative)  |  
|Cash Flows used in Operating Activities                               |   |                     |   |   |               |   |   |               |  
|Loss from continuing operations                                       | $ | (5,056,117          | ) | $ | (2,480,288    | ) | $ | (23,568,819   | )
|Items not affecting cash:                                             |   |                     |   |   |               |   |   |               |  
|Amortization                                                          |   | -                   |   |   | -             |   |   | 741,430       |  
|Shares
      issued to settle accounts payable                        |   | 158,000             |   |   | -             |   |   | 626,000       |  
|Shares issued as signing
      bonus  Note 9                         |   | 645,000             |   |   | -             |   |   | 645,000       |  
|Stock-based
      compensation                                        |   | 533,252             |   |   | 529,673       |   |   | 1,426,925     |  
|Write-down of patents                                                 |   | -                   |   |   | 1             |   |   | 8,004,447     |  
|Changes in non-cash working
      capital items:                      |   |                     |   |   |               |   |   |               |  
|Prepaid expenses and
      deposit                                    |   | (22,280             | ) |   | -             |   |   | (22,280       | )
|Accounts
      payable and accrued liabilities                        |   | 1,451,866           |   |   | (45,805       | ) |   | 1,613,170     |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Net cash used in operating activities                                 |   | (2,290,279          | ) |   | (1,996,419    | ) |   | (10,534,127   | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash Flows used in Investing Activity                                 |   |                     |   |   |               |   |   |               |  
|Patents                                                               |   | -                   |   |   | -             |   |   | (121,877      | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash Flows provided by Financing Activities                           |   |                     |   |   |               |   |   |               |  
|Common stock issued for
      cash                                    |   | 2,656,695           |   |   | 231,700       |   |   | 10,670,390    |  
|Stock purchase warrants                                               |   | -                   |   |   | -             |   |   | 370,307       |  
|Increase (decrease) in
      loan payable                             |   | (27,273             | ) |   | 27,273        |   |   | 1,000         |  
|Advances from/to discontinued operations
      of disposed subsidiary |   | -                   |   |   | -             |   |   | (41,998       | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Net cash provided by financing activities                             |   | 2,629,422           |   |   | 258,973       |   |   | 10,999,699    |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Increase (decrease) in cash during the period                         |   | 339,143             |   |   | (1,737,446    | ) |   | 343,695       |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash, beginning of period                                             |   | 4,552               |   |   | 1,741,998     |   |   | -             |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash, end of period                                                   | $ | 343,695             |   | $ | 4,552         |   | $ | 343,695       |  

Non-cash Transactions  Note 8

SEE ACCOMPANYING NOTES AND REPORTS OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRMS

---

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

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

SEE ACCOMPANYING NOTES AND REPORTS OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRMS

---

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

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

SEE ACCOMPANYING NOTES AND REPORTS OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRMS

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|ACRONGENOMICS, INC.              
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|December 31, 2007 and 2006       
|(Stated in US Dollars)           

|Note 1 | Nature of Operations and Ability
        to Continue as a Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | The Company was incorporated
        in the State of Nevada, USA on August 17, 1999 as Cellway Ventures Inc.
        Effective February 25, 2004, the Company changed its name to Acrongenomics,
        Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | The Company is in the development
        stage. The Companys business is research and development in the
        field of life science including BioLED technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | These 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
        fiscal year. 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 December 31, 2007, the Company had not yet achieved profitable operations,
        has accumulated losses of $15,770,817 since its inception, has a working
        capital deficiency of $1,248,195 and expects to incur further losses in
        the development of its business, all of which casts substantial doubt
        about the Companys ability to continue as a going concern. The Companys
        ability to continue as a going concern is dependent upon its ability to
        generate future profitable operations and/or to obtain the necessary financing
        to meet its obligations and repay its liabilities arising from normal
        business operations when they come due. Management has no formal plan
        in place to address this concern but considers that the Company will be
        able to obtain additional funds by equity financing and/or related party
        advances, however there is no assurance of additional funding being available.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Note 2 | Summary of Significant Accounting
        Principle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | The financial statements of the
        Company have been prepared in accordance with accounting principles generally
        accepted in the United States of America. Because a precise determination
        of many assets and liabilities is dependent upon future events, the preparation
        of financial statements for a period necessarily involved the use of estimates
        that have been made using careful judgement. Actual results may differ
        from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | The financial statements have,
        in managements opinion been properly prepared within the framework
        of the significant accounting principles summarized below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 2  

|Note 2 | Summary of Significant Accounting Principle (contd)
|------ | -----------------------------------------------------

| | a) | Development Stage                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The Company is a development stage company as defined
        in Statement of Financial Accounting Standards (SFAS) No.
        7 as it is devoting substantially all of its efforts to establish a new
        business and planned principal operations have not commenced. All losses
        accumulated since inception have been considered as part of the Companys
        development stage activities.                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | b) | Patents and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | Patents and patent rights are intangible assets and
        are recorded at cost. The Company provides for amortization of patents
        and patent rights on the straight-line basis over their estimated economic
        lives. Amortization is not recorded until the patents are awarded.                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | c) | Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The Company has adopted the provisions of SFAS No. 142,
        Goodwill and Intangible Assets. Under SFAS No. 142, costs
        of internally developing, maintaining or restoring intangible assets that
        are not specifically identifiable, that have indeterminate lives, or that
        are inherent in a continuing business and related to an entity as a whole,
        shall be recognized as an expense when incurred.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | Intangible assets acquired for fair value having definite
        lives are amortized over their useful life. An intangible asset that is
        subject to amortization shall be reviewed for impairment in accordance
        with SFAS No. 144.                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | Intangible assets having indefinite lives are not amortized
        and are evaluated at each reporting period to determine whether events
        and circumstances continue to support indefinite useful life. Intangible
        assets with indefinites lives shall be reviewed for impairment in accordance
        with SFAS no.144.                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | Under SFAS 144, an impairment loss shall be recognized
        if the carrying amount of an intangible asset exceeds its fair value.
        The carrying amount of intangible assets are not impaired if the carrying
        amount exceeds the sum of undiscounted cash flows expected to result from
        the use and eventual disposition of these assets.                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | d) | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The carrying value of the Companys financial instruments,
        consisting of cash, accounts payable and accrued liabilities and loans
        payable approximate their fair value due to the short maturity of such
        instruments. Unless otherwise noted, it is managements opinion that
        the Company is not exposed to significant interest or credit risks arising
        from these financial instruments.         

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 3  

|Note 2 | Summary of Significant Accounting Principle (contd)
|------ | -----------------------------------------------------

| | d) | Financial Instruments (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | The Company is subject to foreign exchange price risk
        as it has certain accounts payable and accrued liabilities totalling $199,291
        (GBP£98,800) which are denominated in foreign currencies. The Company
        does not use derivative instruments to reduce its exposure to fluctuations
        in exchange rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | e) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | The Company follows SFAS No. 109, Accounting for
        Income Taxes which requires the use of the asset and liability method
        of accounting of income taxes. Under the asset and liability method of
        SFAS No. 109, deferred tax assets and liabilities are recognized for future
        tax consequences attributable to temporary differences between the financial
        statements carrying amounts of existing assets and liabilities and loss
        carry forwards and their respective tax bases. Deferred tax assets and
        liabilities are measured using enacted tax rates expected to apply to
        taxable income in the year in which those temporary differences are expected
        to be recovered or settled.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | f) | Basic Loss Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | The Company reports basic loss per share in accordance
        with the SFAS No. 128, Earnings Per Share. Basic loss per
        share is computed using the weighted average number of shares outstanding
        during the period. Diluted loss per share is computed similar to basic
        loss per share except that the denominator is increased to include the
        number of additional common shares that would have been outstanding if
        the dilutive potential common shares had been issued. In addition, in
        computing the dilutive effect of convertible securities, the numerator
        is adjusted to add back any convertible preferred dividend and the after-tax
        amount of interest in the period associated with any convertible debt.
        The numerator is also adjusted for any other changes in income or loss
        that would result from the assumed conversion of these potential common
        shares. Common share equivalents represent the dilutive effect of the
        assumed exercise of the outstanding stock options and warrants, using
        the treasury stock method, at either the beginning of the respective period
        presented or the date of issuance, whichever is later, and only if the
        common stock equivalents are considered dilutive based upon the Companys
        net loss position at the calculation date. Diluted loss per share has
        not been provided as it would be antidultive.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | g) | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | The Companys functional currency is United States
        dollars. The Company uses the United States dollar as its reporting currency
        for consistency with registrants of the Securities and Exchange Commission
        (SEC) and in accordance with the SFAS No. 52.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 4  

|Note 2 | Summary of Significant Accounting Principle (contd)
|------ | -----------------------------------------------------

| | h) | Foreign Currency Translation (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | Transactions undertaken in currencies other than the
        functional currency of the entity are translated using the exchange rate
        in effect as of the transaction date. Any exchange gains and losses are
        included in the Statement of Operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | h) | Stock-based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | The Company accounts for stock-based compensation using
        SFAS 123R which requires companies to recognize the cost of services received
        in exchange for equity instruments, based on the grant-date fair value
        of those instruments, with limited exceptions. The Company uses the Black-Scholes
        option valuation model to calculate stock-based compensation at the date
        of the grant. Option valuation models require the input of highly subjective
        assumptions, including the expected price volatility. Changes in assumptions
        can materially affect the fair value estimate and therefore the Black-Scholes
        model does not necessarily provide a reliable single measure of the fair
        value of the Companys share purchase options.                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | i) | Research and Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | Research and development costs are expensed as incurred.
        These expenses include the costs of the Companys research and development
        efforts, acquired in-process research and development, as well as costs
        incurred in connection with the Companys third-party collaboration
        efforts. Pre-approved milestone payments due under contract research and
        development arrangements that are paid prior to regulatory approval are
        expensed when the milestone is achieved. Once the product receives regulatory
        approval, the Company records any subsequent milestone payments as intangible
        assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | j) | New Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | In June 2006, the Financial Accounting Standards Board
        (FASB) issued FASB Interpretation No. 48 (FIN 48),
        Accounting for Uncertainty in Income Taxes. The interpretation
        clarifies the accounting for uncertainty in income taxes recognized in
        a companys financial statements in accordance with Statement of
        Financial Accounting Standards No. 109, Accounting for Income Taxes.
        Specifically, the pronouncement prescribes a recognition threshold and
        a measurement attribute for the financial statement recognition and measurement
        of a tax position taken or expected to be taken in a tax return. The interpretation
        also provides guidance on the related derecognition, classification, interest
        and penalties, accounting for interim periods, disclosure and transition
        of uncertain tax position. The interpretation is effective for fiscal
        years beginning after December 15, 2006. The adoption of FIN 48 did not
        have a material impact on the Companys financial position, results
        of operations or cash flows.

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 5  

|Note 2 | Summary of Significant Accounting Principle (contd)
|------ | -----------------------------------------------------

| | j) | New Accounting Standards (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | In September 2006, the FASB issued SFAS No. 157, Fair
        Value Measurements. This Statement defines fair value as used in
        numerous accounting pronouncements, establishes a framework for measuring
        fair value in generally accepted accounting principles and expands disclosure
        related to the use of fair value measures in financial statements. The
        Statement is to be effective for the Companys financial statements
        issued in 2008; unless partially or fully deferred by the FASB. The Company
        is currently evaluating the timing of adoption and the impact that adoption
        might have on its financial position or results of operations.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | In September 2006, the Securities and Exchange Commission
        (SEC) issued Staff Accounting Bulletin No. 108 (SAB
        108). Due to diversity in practice among registrants, SAB 108 expressed
        SEC staff views regarding the process by which misstatements in financial
        statements are evaluated for purposes of determining whether financial
        statement restatement is necessary. SAB 108 is effective for fiscal years
        ending after November 15, 2006. SAB 108 did not have a material impact
        on the Companys financial position or results from operations.                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | On February 15, 2007, the FASB issued SFAS No. 159 The
        Fair Value Option for Financial Assets and Financial Liabilities.
        This Statement establishes presentation and disclosure requirements designed
        to facilitate comparisons between companies that choose different measurement
        attributes for similar types of assets and liabilities. SFAS No. 159 is
        effective for the Companys financial statements issued in 2008.
        The Company is currently evaluating the impact that the adoption of SFAS
        No. 159 might have on its financial position or results of operations.                                                                            

|Note 3 | Patents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | By an agreement dated February
        13, 2006, the Company re-acquired 4,000,000 common shares of the Company
        from its former president that it had previously issued to acquire a patent
        and a patent pending 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. During the year ended December 31, 2006, the 4,000,000
        common shares were returned to treasury. This non-monetary transaction
        has been recorded at the book value of shares previously issued of $7,840,000,
        as a related party transaction. Consequently this transaction is recorded
        as a capital transaction and no gain or loss is recorded in the statements
        of operations.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | During the year ended December
        31, 2006, the Company decided to abandon these patents and wrote off $1,
        which was the net carrying value as at December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 6  

|Note 4 | Related Party Transactions Notes
      6, 9 and 10                                                                                                                                                                                                                                                                                                                                                                                                                        
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | The Company incurred the following
        charges with directors and officers, companies with a common director
        and former director, an officer and director of a company of which a former
        officer and director is the spouse of the Companys president; the
        research and development expenditures were paid to a company in which
        a former officer and director of the Company is the spouse of the Companys
        former president:

| |                          |   |                     |  |   |               |  |   | August 17,    | 
| | ------------------------ | - | ------------------- |  | - | ------------- |  | - | ------------- | 
| |                          |   |                     |  |   |               |  |   | 1999 (Date of | 
| |                          |   | For the Years Ended |  |   | Inception) to | 
| |                          |   | December 31,        |  |   | December 31,  | 
| |                          |   | 2007                |  |   | 2006          |  |   | 2007          | 
| |                          |   |                     |  |   |               |  |   |               | 
| | Accounting fees          | $ | 48,317              |  | $ | 74,606        |  | $ | 189,899       | 
| | Consulting fees          |   | 332,400             |  |   | 27,500        |  |   | 397,301       | 
| | Legal fees               |   | -                   |  |   | -             |  |   | 60,656        | 
| | Management fees          |   | 1,999,505           |  |   | 554,873       |  |   | 2,554,378     | 
| | Rent                     |   | -                   |  |   | 12,000        |  |   | 36,000        | 
| | Research and development |   | -                   |  |   | 200,000       |  |   | 5,604,189     | 
| |                          |   |                     |  |   |               |  |   |               | 
| |                          | $ | 2,380,222           |  | $ | 868,979       |  | $ | 8,842,423     | 

|       | Research and development expenditures
        charged by a related company were comprised of testing costs of the molecular
        diagnostic test products.                                                                                                                                                                                                   
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                 
|       | Accounts payable and accrued
        liabilities at December 31, 2007 includes $1,166,568 (2006: $71,779) owing
        to companies with a common director, a former director and a company of
        which a former officer and director is the spouse of the Companys
        former president for accounting, management and consulting services received.
|       |                                                                                                                                                                                                                                                                                                                                                                 
|Note 5 | Loans Payable                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                 
|       | Loans payable are unsecured,
        non-interest bearing and has no specific terms for repayment.                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                 
|Note 6 | Capital Stock Notes
        8, 9 and 10                                                                                                                                                                                                                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                                                                 
|       | Commitments                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                 
|       | Share Purchase Warrants                                                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                 
|       | At December 31, 2007, there are
        1,548,213 (2006: 737,334) share purchase warrants outstanding entitling
        the holders thereof the right to acquire one common share for each warrant
        held.                                                                                                                                                

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 7  

|Note 6 | Capital Stock Notes 8, 9 and 10 
      (contd)                                     
|------ | --------------------------------------------------------------------------------------
|       |                                                                                       
|       | Commitments (contd)                                                                 
|       |                                                                                       
|       | Share Purchase Warrants  (contd)                                                    
|       |                                                                                       
|       | The following table summarizes the warrants outstanding
      as at December 31, 2007:

| | Number Outstanding | Exercise |                  
| | ------------------ | -------- | -----------------
| | and Exercisable    | Price    | Expiry Date      
| |                    |          |                  
| | 110,000            | $1.00    | February 12, 2008
| | 45,455             | $2.00    | September 5, 2008
| | 75,000             | $1.50    | March 23, 2008   
| | 374,648            | $1.50    | October 23, 2008 
| | 35,000             | $1.50    | October 27, 2008 
| | 395,500            | $1.25    | July 31, 2008    
| | 165,000            | $1.50    | February 28, 2009
| | 347,610            | $1.50    | April 20, 2009   
| |                    |          |                  
| | 1,548,213          | $1.42    |                  

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

| |                              |  | 2007      |   |   | 2006     | 
| | ---------------------------- |  | --------- | - | - | -------- | 
| |                              |  |           |   |   | Weighted | 
| |                              |  |           |   |   | Average  | 
| |                              |  | Number of |   |   | Exercise | 
| |                              |  | Warrants  |   |   | Price    | 
| |                              |  |           |   |   |          | 
| | Outstanding, beginning       |  |           |   |   |          | 
| | of year                      |  | 737,334   |   | $ | 1.33     | 
| | Granted                      |  | 1,548,213 |   | $ | 1.42     | 
| | Expired                      |  | (737,334  | ) | $ | 1.33     | 
| | Outstanding and exercisable, |  |           |   |   |          | 
| | end of year                  |  | 1,548,213 |   | $ | 1.42     | 

On May 7, 2007, 420,000 warrants expired
  without being exercised, on September 15, 2007, 84,000 warrants expired without
  being exercised, on October 31, 2007, 233,334 warrants expired without being
  exercised and on February 12, 2008, 110,000 warrants expired without being exercised.

The weighted average life remaining
  of all share purchase warrants is 0.82 years.

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 8  

|Note 6 | Capital Stock Notes 8, 9 and 10 
      (contd)                                                                                                                                                                                                                                                                                                            
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | Commitments (contd)                                                                                                                                                                                                                                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | Share Subscriptions                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | At December 31, 2007, the Company
        had share subscriptions receivable totalling $3,300 with respect to the
        issuance of 3,000 common shares at $1.10 per share. This amount was received
        subsequent to December 31, 2007.                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | At December 31, 2006 the Company
        had received share subscriptions of $40,000 with respect to the issuance
        of 80,000 common shares at $0.50 per share. These shares were issued during
        the year ended December 31, 2007.                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | 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.
|       |                                                                                                                                                                                                                                                                                                                                                              
|       | As at December 31, 2007, there
        were 3,500,000 (2006: 400,000) share purchase options outstanding entitling
        the holders thereof the right to purchase one common share for each option
        held. The following table summarizes the stock options outstanding as
        at December 31, 2007:                                            

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

| | * | The vesting of 2,000,000 options granted are contingent
        upon the performance milestones which have not yet been achieved as at
        December 31, 2007, therefore, no compensation has been recorded on these
        options (Note 9).
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 9  

|Note 6 | Capital Stock Notes 8, 9 and 10 
      (contd)                                                                                     
|------ | --------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                       
|       | Commitments (contd)                                                                                                                 
|       |                                                                                                                                       
|       | Share Purchase Options  (contd)                                                                                                     
|       |                                                                                                                                       
|       | A summary of changes in the Companys
        stock options for the years ended December 31, 2007 and 2006 is presented
        below:

| |                           |  | 2007      |   |          | 2006 | 
| | ------------------------- |  | --------- | - | -------- | ---- | 
| |                           |  |           |   | Weighted |      | 
| |                           |  |           |   | Average  |      | 
| |                           |  | Number of |   | Exercise |      | 
| |                           |  | Options   |   | Price    |      | 
| |                           |  |           |   |          |      | 
| | Outstanding, beginning of |  |           |   |          |      | 
| | year                      |  | 400,000   |   | $2.75    |      | 
| | Granted                   |  | 3,300,000 |   | $0.59    |      | 
| | Expired                   |  | (200,000  | ) | $3.00    |      | 
| |                           |  |           |   |          |      | 
| | Outstanding, end of year  |  | 3,500,000 |   | $0.70    |      | 
| |                           |  |           |   |          |      | 
| | Exercisable, end of year  |  | 675,000   |   | $0.57    |      | 

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

The weighted average contractual life
  remaining of all stock options granted is 7.05 years.

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

| | Options   |  | Vesting Date                                 | 
| | --------- |  | -------------------------------------------- | 
| | 175,000   |  | February 12, 2008                            | 
| | 175,000   |  | August 12, 2008                              | 
| | 175,000   |  | February 12, 2009                            | 
| | 525,000   |  |                                              | 
| | 300,000   |  | March 22, 2008                               | 
| | 2,000,000 |  | Vest at 50% upon reaching certain milestones | 
| | 2,825,000 |  |                                              | 

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 10 

|Note 6 | Capital Stock Notes 8, 9 and 10 
      (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | Commitments (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | Share Purchase Options  (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | During the year ended December
        31, 2007, the Company granted a consultant and directors and officers
        of the Company 1,300,000 stock options with a total fair value of $777,500
        (no compensation expense has been recorded for the 2,000,000 options granted
        as their vesting is contingent upon performance). As the 1,300,000 stock
        options have a graded vesting schedule, the total non-cash compensation
        cost recognized during the year was $533,252 ($72,555 has been included
        with consulting fees and $460,697 has been included with management fees).
        During the year ended December 31, 2006, 200,000 options were granted
        with a fair value recorded of $529,673 ($529,673 has been included with
        management fees). The fair value of each option grant was estimated on
        the date of the grant using the Black-Scholes option valuation model with
        the following assumptions:

| |                         | 2007          | 2006  
| | ----------------------- | ------------- | ------
| |                         |               |       
| | Expected dividend yield | 0.0%          | 0.0%  
| | Expected volatility     | 83.0% - 90.8% | 211.5%
| | Risk-free Interest Rate | 4.04%  4.81% | 5.10% 
| | Term in years           | 5.0  10.0    | 5.5   
| | Fair value              | $0.33 - $1.01 | $2.65 

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

|Note 7 | Deferred Tax Assets                                                                                                                             
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                 
|       | The Company's income tax expense
        for the years ended December 31, 2007 and 2006 differed from the United
        States statutory rates:

| |                                                          |   | 2007       |   |   | 2006     |  
| | -------------------------------------------------------- | - | ---------- | - | - | -------- | -
| |                                                          |   |            |   |   |          |  
| | Effective tax rate                                       |   | 35%        |   |   | 35%      |  
| |                                                          |   |            |   |   |          |  
| | Statutory rate applied to loss before income
      taxes | $ | (1,583,003 | ) | $ | (868,101 | )
| | Increase in income taxes resulting from:                 |   |            |   |   |          |  
| | Stock-based compensation                                 |   | 186,638    |   |   | 185,386  |  
| | Change in valuation allowance                            |   | 1,396,365  |   |   | 682,715  |  
| |                                                          |   |            |   |   |          |  
| | Income tax expense                                       | $ | -          |   | $ | -        |  

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 11 

|Note 7 | Deferred Tax Assets (contd)                                                        
|------ | -------------------------------------------------------------------------------------
|       |                                                                                      
|       | The significant components of the Companys
      deferred tax assets are as follows:

| |                                   |   | 2007       |   |   | 2006       |  
| | --------------------------------- | - | ---------- | - | - | ---------- | -
| |                                   |   |            |   |   |            |  
| | Deferred tax assets               |   |            |   |   |            |  
| | Net operating losses carryforward | $ | 4,502,564  |   | $ | 3,106,199  |  
| | Less: valuation allowance         |   | (4,502,564 | ) |   | (3,106,199 | )
| |                                   |   |            |   |   |            |  
| | Deferred tax assets               | $ | -          |   | $ | -          |  

At December 31, 2007, the Company has
  incurred accumulated net operating losses in the United States of America totalling
  approximately $13,119,000 which are available to reduce taxable income in future
  taxation years.

These losses expire as follows:

| | Year of Expiry |   | Amount     | 
| | -------------- | - | ---------- | 
| |                |   |            | 
| | 2020           | $ | 10,000     | 
| | 2022           |   | 25,000     | 
| | 2023           |   | 23,000     | 
| | 2024           |   | 1,550,000  | 
| | 2025           |   | 5,316,000  | 
| | 2026           |   | 1,951,000  | 
| | 2027           |   | 4,244,000  | 
| |                |   |            | 
| |                | $ | 13,119,000 | 

The amount taken into income as deferred
  tax assets must reflect that portion of the income tax loss carryforwards that
  is more likely-than-not to be realized from future operations. The Company has
  chosen to provide an allowance of 100% against all available income tax loss
  carryforwards, regardless of their time of expiry.

As at December 31, 2007, the Company
  is in arrears on filing its statutory income tax returns and the amounts presented
  above are based on estimates. The actual losses available could differ from
  these estimates.

|Note 8 | Non-cash Transactions                                                                                                                                    
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                          
|       | Investing and financing activities
        that do not have a direct impact on current cash flows are excluded from
        the statements of cash flows.

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 12 

|Note 8 | Non-cash Transactions
        (contd)                                                                                                                                                                                                                                                                                                                                                          
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | During the year ended December
        31, 2006, 4,000,000 common shares valued at $7,840,000 were returned to
        treasury.                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | During the year ended December
        31, 2006, the Company recorded stock-based compensation expense of $529,673
        charged to statement of operations.                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | On September 3, 2007, the Company
        issued 750,000 common shares of the Company at $0.86 per share to the
        Chief Executive officer (CEO) as a signing bonus (Note 9f).                                                                                                                                                                                                            
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | During the year ended December
        31, 2007, the Company issued 220,000 common shares at $0.50 per share.
        A portion of the proceeds for this issuance were received as at December
        31, 2006 and recorded as share subscriptions in the amount of $40,000.
        During the year ended December 31, 2007, these proceeds have been utilized
        for this share issuance.
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | During the year ended December
        31, 2007, the Company issued 126,090 common shares of the Company at $0.50
        to $1.10 per share as finders fee commission. The total value of
        these shares were $118,449.                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | During the year ended December
        31, 2007, the Company recorded stock-based compensation expense of $533,252
        charged to statement of operations.                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | On December 8, 2007, the Company
        issued 158,000 commons shares at $1.00 per share to settle accounts payable
        with a consultant.                                                                                                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|       | These transactions were excluded
        from the statements of cash flows.                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                  
|Note 9 | Commitments Notes
        4 and 6                                                                                                                                                                                                                                                                                                                                                               

| | a) | By an agreement dated July 1, 2006, the Company agreed
        to pay $10,000 per month for management and operational services for offices
        in Geneva, Switzerland. The agreement is on a month-to-month basis and
        will renew on a monthly basis unless terminated by either party with 30
        days prior notice.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 13 

|Note 9 | Commitments Notes 4 and 6 
      (contd)
|------ | -------------------------------------------

| | b) | By an agreement dated February 13, 2007 and amended
        May 23, 2007, the Company will collaborate with Molecular Vision Ltd.
        (Molecular), a UK company, to acquire the exclusive rights
        to commercialize certain technology relating to the analysis/diagnostic
        fields (BioLED Technology), to contract Molecular to complete the research
        and development necessary to achieve manufacturable prototypes and have
        first right of refusal to fund the development of additional applications
        of the technology by agreeing to pay $4,670,958 (GBP£2,325,000) (this
        sum is in addition to the GBP£575,000 previously paid under the February
        13, 2007 agreement) over 3 years (noted below) and grant 2,000,000 share
        purchase options entitling the holders thereof the right to purchase one
        common share of the Company at $0.50 per share. The options will vest
        at 50% per milestone and will be exercisable within a period of 5 years
        from the date of vesting. As the vesting of the share purchase options
        granted are contingent upon the performance millstones, which have not
        yet been achieved and uncertain as to whether they will be achieved as
        at December 31, 2007, no value is ascribed to them until it is likely
        that they would be vested.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Payment schedule:                 |  |           |  |  |           | 
| | --------------------------------- |  | --------- |  |  | --------- | 
| |                                   |  |           |  |  |           | 
| |                                   |  | US$       |  |  | GBP£      | 
| |                                   |  |           |  |  |           | 
| | May 2007 (paid)                   |  | 598,645   |  |  | 300,000   | 
| | September 2007 (GBP£530,000 paid) |  | 1,126,235 |  |  | 550,000   | 
| | March 2008                        |  | 649,122   |  |  | 325,000   | 
| | October 2008                      |  | 1,148,478 |  |  | 575,000   | 
| | April 2009                        |  | 1,148,478 |  |  | 575,000   | 
| |                                   |  |           |  |  |           | 
| |                                   |  | 4,670,958 |  |  | 2,325,000 | 

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

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

As at December 31, 2007, the Company
  has included $39,946(GBP£20,000) as an amount payable with respect to the
  September 2007 payment.

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 14 

|Note 9 | Commitments Notes 4 and 6 
      (contd)
|------ | -------------------------------------------

| | b) |  (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | On January 31, 2008, by a Heads of Terms agreement
        dated in November 2007 and amended February 1, 2008, the Company acquired
        10.89% of the share capital of Molecular for $1,097,639 (GBP£550,000).
        Molecular specializes in the development of miniaturized Point of Care
        medical diagnostic devices.                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | c) | On April 1, 2007, the Company entered into
        an agreement with a director of the Company to serve as President and
        Chief Operating Officer at $7,000 per month. The agreement is for three
        years ending March 31, 2010.                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | d) | On April 1, 2007, the Company entered into
        an agreement with a director of the Company to provide services as Chief
        Technology Officer at $4,500 per month. The agreement is for three years
        ending March 31, 2010.                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | e) | On September 1, 2007, the Company entered
        into a consulting agreement at $2,000 per month. The agreement is for
        one year ending August 31, 2008 with the option to be renewed for an additional
        year.                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | f) | On September 3, 2007, the Company entered
        into an agreement with a director of the Company to provide services as
        CEO. The agreement is for three years ending September 3, 2010. According
        to the terms of the agreement, the CEO will receive 750,000 common shares
        of the Company as a signing bonus and will be entitled to receive an additional
        1,750,000 common shares as performance bonuses as follows:
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | During the year ended December 31, 2007, 750,000
        common shares were issued to the CEO valued at $645,000 as a signing bonus
        which has been included in management fees. As at December 31, 2007, $278,658
        was accrued and included with accounts payable and accrued liabilities
        with respect to the performance bonus shares.                                                                                          

---

|Acrongenomics, Inc.              
|---------------------------------
|(A Development Stage Company)    
|Notes to the Financial Statements
|December 31, 2007 and 2006       
|(Stated in US Dollars)  Page 15 

|Note 10 | Subsequent Events Notes 6 and 9
|------- | --------------------------------

| | a) | On February 22, 2008, the Company issued 90,000 units
        at $1.10 per unit for total proceeds of $99,000. Each unit consists of
        one common share and one-half of one common share purchase warrant. Each
        warrant entitles the holder the right to purchase one common share of
        the Company at $1.50. The warrants expire on August 1, 2009.            
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                     
| | b) | On February 1, 2008, the Company issued 150,000 common
        shares at $0.95 per share for consulting services provided to the Company
        during the period from April 1, 2007 to February 1, 2008. At December
        31, 2007, $128,250 was accrued and included with accounts payable and
        accrued liabilities.                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                     
| | c) | Pursuant to a consulting agreement dated February 1,
        2008, the Company issued 150,000 common shares at $0.95 per share as prepayment
        for consulting services to be received until February 1, 2009.                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                     
| | d) | On February 1, 2008, the Company issued 1,250,010 units
        at $0.80 per unit for total proceeds of $1,000,008. Each unit consists
        of one share of common share and one common share purchase warrant. Each
        warrant entitles the holder the right to purchase one share of common
        stock of the Company at $1.60. The warrants expire on August 15, 2009.
| |    |                                                                                                                                                                                                                                                                                                                                                                                     
| | e) | On February 14, 2008, the Company issued 1,150,000 common
        shares at $0.79 per share to the directors of the Company in recognition
        for their services provided. At December 31, 2007, $817,650 was accrued
        and included with accounts payable and accrued liabilities.                                                                                      

|Note 11 | Comparative Figures                                                                                                                              
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                  
|        | Certain of the prior years
        comparative figures have been reclassified to conform with the presentation
        used in the current year.

---

21

|ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH
      ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|------- | -------------------------------------------------------------------------------------------

|(a) | Resignation of Independent Accountant.
|--- | --------------------------------------

On January 21, 2008, Amisano Hanson. Chartered Accountant
resigned as our independent accountant. Amisano Hanson recently entered into an
agreement with BDO Dunwoody LLP, pursuant to which Amisano Hanson will merge its
operations into BDO Dunwoody and certain of the professional staff and partners
joined BDO Dunwoody either as employees or partners of BDO Dunwoody and will
continue to practice as members of BDO Dunwoody.

The report of Amisano Hanson regarding our financial statements
for the fiscal years ended December 31, 2006 and 2005 did not contain any
adverse opinion or disclaimer of opinion and was not qualified or modified as to
uncertainty, audit scope or accounting principles, except that such report on
our financial statements for the years ended December 31, 2006 and 2005
contained an explanatory paragraph in respect to uncertainty as to our ability
to continue as a going concern. During the years ended December 31, 2006 and
2005 and during the period from the end of the most recently completed fiscal
year through January 21, 2008, the date of resignation, there were no
disagreements with Amisano Hanson on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedures, which
disagreements, if not resolved to the satisfaction of Amisano Hanson would have
caused it to make reference to such disagreements in its reports.

We provided Amisano Hanson with a copy of our Current Report on
Form 8-K prior to its filing with the Securities and Exchange Commission and
requested that Amisano Hanson furnish our company with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the above
statements and, if it does not agree, the respects in which it does not agree. A
copy of such letter, dated March 19, 2008, was filed as Exhibit 16.1 to our
Current Report on Form 8-K filed with the Securities and Exchange Commission on
March 20, 2008.

|(b) | Engagement of Independent Accountant.
|--- | -------------------------------------

Concurrent with the resignation of Amisano Hanson, we engaged
BDO Dunwoody, as our independent accountant. Prior to engaging BDO Dunwoody, we
did not consult with BDO Dunwoody regarding the application of accounting
principles to a specific completed or contemplated transaction or regarding the
type of audit opinion that might be rendered by BDO Dunwoody on our financial
statements, and BDO Dunwoody did not provide any written or oral advice that was
an important factor considered by our company in reaching a decision as to any
such accounting, auditing or financial reporting issue. The engagement of BDO
Dunwoody was approved by our board of directors.

|ITEM 8A. | CONTROLS AND PROCEDURES.
|-------- | ------------------------

As required by Rule 13a-15 under the Exchange Act, as of the
end of the period covered by this annual report, being December 31, 2007, we
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as of December 31, 2007. This evaluation
was carried out under the supervision and with the participation of our former
President (Principal Executive Officer), Constantine Poulios, and existing
President Platon Tzouvalis and Chief Financial Officer, Ron Lizée. Based upon
that evaluation, our former and existing President (Principal Executive Officer)
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective in timely alerting management to material information
relating to us required to be included in our periodic SEC filings as at the end
of the period covered by this report. There have been no changes in our internal
controls or in other factors that could significantly affect internal controls
subsequent to the date we carried out our evaluation.

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

---

22

our President (Principal Executive Officer) and our Chief
Financial Officer, to allow timely decisions regarding required disclosure.

During our most recently completed fiscal year ended December
31, 2007 there were no changes in our internal control over financial reporting
that have materially affected, or are reasonably likely to affect, our internal
control over financial reporting.

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

(a)         
Pertain to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of our assets;

(b)          Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of our company are
being made only in accordance with authorizations of our management and
directors; and

(c)         
Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have a
material effect on the financial statements.

|ITEM 8B. | OTHER INFORMATION
|-------- | -----------------

None.

PART III

|ITEM 9. | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL
      PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF
      THE EXCHANGE ACT.
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------

Directors and Executive Officers, Promoters and Control
Persons

The following table sets forth information regarding our
current and proposed executive officers and directors:

Name
    Age
    Position with the
      Company
    Served as a Director and Officer
      SinceDr.
      Dimitri Goundis
    46
    Chief
      Executive Officer
    September 3, 2007Ronald Lizée
      50
    Chief Financial Officer and a Director
    June 4, 2004Dr. Manos Topoglidis
    35
    Chief Technology Officer and a Director
    February 24, 2006Platon Tzouvalis
    43
    Vice President and a Director
      President
    February 14, 2006 October
      5, 2006Dr.
      Evan Manolis
    49
    Director
    May 8,
      2007


Dr. Dimitri Goundis  Chief Executive
Officer

Dr. Goundis was appointed as our Chief Executive Officer on
September 3, 2007. Dr. Goundis holds a Ph.D. in Biochemistry from the University
of Oxford, a B.Sc. in Chemistry/Biochemistry from the University of London and a
Certificate in Investment Management from the London Business School. From 1988
until 2006, he spent several years in the Pharmaceutical Industry, both in big
Pharma (e.g. Hoffman La Roche) and in start-up companies, first The Medicines
Company Inc., and then Speedel AG. He started at Hoffman La Roche in Research,
then proceeded

---

23

in Clinical Research, and later he was appointed as
International Project Director leading multidisciplinary teams in drug
development.

At The Medicines Company Inc., he was Senior Director for
Project Management and following its successful initial public offering on
Nasdaq in August 2000, he joined Speedel AG, a BioPharmaceutical company based
in Basel, Switzerland. There he held several different positions of high
responsibility, starting as Project Director, then Head of Project Management
and finally Managing Director of Speedel Experimenta. Speedel AG was
successfully listed on the Swiss Stock Exchange in September 2005.

Ron Lizée  Chief Financial Officer and a
Director

Mr. Lizée is the owner/operator of Lizée Gauthier, Certified
General Accountants where he has practiced since 1982. Mr Lizée has over 25
years experience in the fields of tax, accounting and auditing. He graduated
from the University of Saskatchewan in 1981 with a B.Comm, Accounting and gained
his CGA in 1987, and CFP in 1993. Mr Lizée has experience in financial
management within public companies having served as a director and Chief
Financial Officer during 1995 to 1999 and he is the owner and Chief Executive
Officer of a franchise chain operating in several Canadian provinces.

Dr. Manos Topoglidis  Chief Technology Officer,
Member of the Scientific Advisory Board and a Director

Dr. Topoglidis was appointed as Chief Technology Officer, as a
director of our company and to the Scientific Advisory Board on February 24,
2006. He received his Bachelors of Science from Kings College (University of
London) in 1996, his MSc in Biochemistry from Imperial College in London, UK in
1997 and his Ph.D. in Chemistry (Biosensors and Nanomaterials) from Imperial
College in London, UK in 2001. His research interests and expertise lie in the
areas of Biosensors, Nanomaterials, Biotechnology and Nanotechnology. He has
worked in research at the Center of Electronic Materials and Devices of Imperial
College in London, UK and as manager of European and National programs of the
MESL laboratory of the National Centre for Scientific Research, Demokritos in
Athens. He is a member of the Electrochemical and British Biochemical Societies.
Dr. Topoglidis has 15 scientific publications during his eight years of research
and has presented his work in ten U.S./international conferences.

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.

Platon Tzouvalis  President, and a
Director

Platon Tzouvalis, M.Sc., was appointed Vice President of our
company on February 14, 2006 and subsequently as the President on October 5,
2006. As a Biochemist and ex-Abbott Laboratories Associate, he is an experienced
pharmaceutical industry professional. He has been a member of our companys
Scientific Advisory Board since May 2004. His expertise lies in the areas of
Quality Control, Operational Procedures as well as Pharmaceutical Product and
Process Improvement. He received his B.Sc. Degree in Biochemistry from the
University of Illinois in 1990 and his Master's Degree in the same field from
DePaul University at Chicago in 1995.

Mr. Tzouvalis' earlier career includes working as a Research
Chemist in collaboration with the University of Illinois at Chicago, holding the
position of 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.

---

24

Dr. Evan Manolis - Director

Dr. Manolis was appointed a director of our company on May 8,
2007. Dr. Manolis received his B.S. from the University of Illinois at Chicago
in 1987 and his M.D. in surgery from Southern Illinois University Medical School
in 1991. He received extensive postgraduate training in general surgery
internship and residency from the Medical College in Ohio. Dr. Manolis practices
surgery in Chicago and Orland Park, Illinois and has been in the profession for
sixteen years.

Board Meetings and Committees

Our board of directors held no formal meetings during the year
ended December 31, 2007. All proceedings of the board of directors were
conducted by resolutions consented to in writing by all the directors and filed
with the minutes of the proceedings of the directors. Such resolutions consented
to in writing by the directors entitled to vote on that resolution at a meeting
of the directors are, according to the Nevada General Corporation Law and the
bylaws of our company, as valid and effective as if they had been passed at a
meeting of the directors duly called and held.

We do not have standing audit, nominating or compensation
committees, or committees performing similar functions. Our board of directors
believe that it is not necessary to have a standing audit or compensation
committees at this time because the functions of such committees are adequately
performed by our board of directors.

Our board of directors also is of the view that it is
appropriate for us not to have a standing nominating committee because the
current size of our board of directors does not facilitate the establishment of
a separate committee. Our board of directors have performed and will perform
adequately the functions of a nominating committee. The directors who perform
the functions of a nominating committee are not independent because they are
also officers of our company. The determination of independence of directors has
been made using the definition of independent director contained under Rule
4200(a)(15) of the Rules of the Financial Industry Regulatory Authority. Our
board of directors has not adopted a charter for the nomination committee. There
has not been any defined policy or procedure requirements for stockholders to
submit recommendations or nomination for directors. Our board of directors does
not believe that a defined policy with regard to the consideration of candidates
recommended by stockholders is necessary at this time because we believe that,
given the early stages of our development, a specific nominating policy would be
premature and of little assistance until our business operations are at a more
advanced level. There are no specific, minimum qualifications that our board of
directors believes must be met by a candidate recommended by our board of
directors. The process of identifying and evaluating nominees for director
typically begins with our board of directors soliciting professional firms with
whom we have an existing business relationship, such as law firms, accounting
firms or financial advisory firms, for suitable candidates to serve as
directors. It is followed by our board of directors review of the candidates
resumes and interview of candidates. Based on the information gathered, our
board of directors then makes a decision on whether to recommend the candidates
as nominees for director. We do not pay any fee to any third party or parties to
identify or evaluate or assist in identifying or evaluating potential nominee.

Nomination Process

As of April 8, 2008, we did not effect any material changes to
the procedures by which our shareholders may recommend nominees to our board of
directors. Our board of directors does not have a policy with regards to the
consideration of any director candidates recommended by our shareholders. Our
board of directors has determined that it is in the best position to evaluate
our companys requirements as well as the qualifications of each candidate when
the board considers a nominee for a position on our board of directors. If
shareholders wish to recommend candidates directly to our board, they may do so
by sending communications to the President of our company at the address on the
cover of this annual report.

---

25

Audit Committee and Audit Committee Financial Expert

We do not have a standing audit committee at the present time.
Our board of directors has determined that we do not have a board member that
qualifies as an "audit committee financial expert" as defined in Item 401(e) of
Regulation S-B, nor do we have a board member that qualifies as independent as
the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities
Exchange Act of 1934, as amended.

We believe that our board of directors is capable of analyzing
and evaluating our financial statements and understanding internal controls and
procedures for financial reporting. The board of directors of our company does
not believe that it is necessary to have an audit committee because we believe
that the functions of an audit committee can be adequately performed by the
board of directors, consisting of Platon Tzouvalis, Dr. Manos Topoglidis, Ron
Lizee and Dr. Evan T. Manolis. In addition, we believe that retaining an
independent director who would qualify as an audit committee financial expert
would be overly costly and burdensome and is not warranted in our circumstances
given the early stages of our development and the fact that we have not
generated any revenues from operations to date.

LEGAL PROCEEDINGS

We are not aware of any legal proceedings in which any director
or officer, any proposed director or officer or any owner of record or
beneficial owner of more than 5% of any class of voting securities of our
company, or any affiliate of any such director or officer, proposed director or
officer or security holder, is a party adverse to our company or has a material
interest adverse to our company.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires our executive
officers and directors and persons who own more than 10% of a registered class
of our equity securities to file with the Securities and Exchange Commission
initial statements of beneficial ownership, reports of changes in ownership and
annual reports concerning their ownership of our common stock and other equity
securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and
greater than 10% stockholders are required by the Securities and Exchange
Commission regulations to furnish us with copies of all Section 16(a) reports
that they file.

To the best of our knowledge all executive officers, directors
and greater than 10% stockholders filed the required reports in a timely
manner.

|ITEM 10. | EXECUTIVE COMPENSATION.
|-------- | -----------------------

Executive Compensation

The particulars of compensation paid to the following
persons:

- our principal executive officer;
- each of our two most highly compensated executive officers who were serving
  as executive officers at the end of the year ended December 31, 2007; and
- up to two additional individuals for whom disclosure would have been
  provided under (b) but for the fact that the individual was not serving as our
  executive officer at the end of the most recently completed financial year,

who we will collectively refer to as the named executive
officers, of our company for the years ended December 31, 2007 and 2006, are set
out in the following summary compensation tables:

---

26

SUMMARY COMPENSATION
      TABLEName and Principal
      Position
    Year
    Salary ($)
    Bonus ($)
    Stock Awards
      ($)
    Option Awards
      ($)
    Non-Equity
      Incentive Plan Compensa- tion
      ($)
    Change in
      Pension Value and Nonqualified
      Deferred Compensation Earnings
      ($)
    All
      Other Compensa- tion ($)
    Total ($)Dr. Dimitri
      Goundis(1)Chief Executive Officer
    2007 2006
    Nil N/A
    278,658 N/A
    645,000 N/A
    Nil N/A
    Nil N/A
    Nil N/A
    Nil N/A
    Nil N/ARonald Lizée Chief
      Financial Officer and a Director
    2007 2006
    Nil Nil
    Nil Nil
    Nil Nil
    21,804 Nil
    Nil Nil
    Nil Nil
    Nil Nil
    Nil NilDr. Manos Topoglidis
      Chief Technology Officer, Member of the Scientific
      Advisory Board and a Director
    2007 2006
    332,400 7,500
    Nil Nil
    Nil Nil
    29,073 Nil
    Nil Nil
    Nil Nil
    Nil Nil
    48,000 7,500Platon Tzouvalis
      President and a Director
    2007 2006
    615,150 25,200
    Nil Nil
    Nil Nil
    409,820 Nil
    Nil Nil
    Nil Nil
    Nil Nil
    81,900 25,200


|(1) | Dr. Goundis was appointed Chief Executive
      Officer of our company on September 3, 2007.
|--- | --------------------------------------------------------------------------------------------

Outstanding Equity Awards at Fiscal Year-End

The particulars of unexercised options, stock that has not
vested and equity incentive plan awards for our named executive officers are set
out in the following table

Options Awards
    Stock AwardsName
    Number of
      Securities Underlying Unexercised
      Options (#) Exercisable
    Number of
      Securities Underlying Unexercised
      Options (#) Unexercisable
    Equity
      Incentive Plan Awards: Number
      of Securities Underlying
      Unexercised Unearned Options
      (#)
    Option
      Exercise Price ($)
    Option
      Expiration Date
    Number
      of Shares or Units
      of Stock That Have
      Not Vested (#)
    Market
      Value of Shares or
      Units of Stock That
      Have Not Vested ($)
    Equity
      Incentive Plan Awards: Number
      of Unearned Shares, Units or
      Other Rights That Have Not
      Vested (#)
    Equity Incentive Plan
      Awards: Market or Payout Value
      of Unearned Shares, Units or
      Other Rights That Have Not
      Vested ($)Dr. Dimitri
      Goundis(1)Chief Executive Officer
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil


---

27

Options Awards
    Stock AwardsName
    Number of
      Securities Underlying Unexercised
      Options (#) Exercisable
    Number of
      Securities Underlying Unexercised
      Options (#) Unexercisable
    Equity
      Incentive Plan Awards: Number
      of Securities Underlying
      UnexercisedUnearned Options
      (#)
    **Option**
      Exercise Price ($)
    Option
      ExpirationDate
    Number
      of Shares or Units
      of Stock That Have
      Not **Vested** (#)
    Market
      Value of Shares or
      Units of Stock That
      Have Not Vested ($)
    Equity
      Incentive Plan Awards: Number
      of Unearned Shares, Units or
      Other Rights That Have Not
      Vested (#)
    Equity Incentive Plan
      Awards: Market or Payout Value
      of Unearned Shares, Units or
      Other Rights That Have Not
      Vested ($)Ronald Lizée Chief
      Financial Officer and a Director
    100,000 150,000
    Nil Nil
    Nil Nil
    2.50 0.50
    May 3, 2016 Feb
      12,2017
    Nil Nil
    Nil Nil
    Nil Nil
    Nil NilDr. Manos Topoglidis
      Chief Technology Officer, Member of the Scientific
      Advisory Board and a Director
    200,000
    Nil
    Nil
    0.50
    Feb 12, 2017
    Nil
    Nil
    Nil
    NilPlaton Tzouvalis
      President and a Director
    250,000 600,000
    Nil Nil
    Nil Nil
    0.50 1.00
    Feb 12, 2017 Mar 12,
      2012
    Nil Nil
    Nil Nil
    Nil Nil
    Nil Nil


|(1) | Dr. Goundis was appointed Chief Executive
      Officer of our company on September 3, 2007.
|--- | --------------------------------------------------------------------------------------------

Director Compensation

Our directors may be paid for their expenses incurred in
attending each meeting of the directors. In addition to expenses, our directors
may be paid a sum for attending each meeting of the directors or may receive a
stated salary as director. No payment precludes any director from serving our
company in any other capacity and being compensated for such service. Members of
special or standing committees may be allowed similar reimbursement and
compensation for attending committee meetings.

We reimburse our directors for expenses incurred in connection
with attending board meetings, but did not pay directors fees or other cash
compensation for services rendered as a director in the periods ended December
31, 2007, 2006 and 2005.

Employment Contracts and Termination of Employment and
Change in Control Arrangements

On September 3, 2007, we entered into an employment agreement
with our Chief Executive Officer, Dr. Dimitris Goundis, wherein Dr. Goundis
agreed to serve as our Chief Executive Officer for a three year term in
consideration for the issuance of 750,000 shares of our common stock to Dr.
Goundis. The employment agreement also provides for issuance of further shares
upon certain service milestones.

---

28

There are no arrangements or plans in which we provide pension,
retirement or similar benefits for directors or executive officers. Our
directors and executive officers may receive stock options at the discretion of
our board of directors in the future. We do not have any material bonus or
profit sharing plans pursuant to which cash or non-cash compensation is or may
be paid to our directors or executive officers, except that stock options may be
granted at the discretion of our board of directors.

|ITEM 11. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
      OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|-------- | -----------------------------------------------------------------------------------------------------

We have set forth in the following table certain information
regarding our shares of common stock beneficially owned as of April 8, 2008 for:
(i) each shareholder we know to be the beneficial owner of 5% or more of our
shares of common stock; (ii) each of our executive officers and directors; and
(iii) all executive officers and directors as a group. Beneficial ownership is
determined in accordance with the rules of the Securities and Exchange
Commission. In computing the number of shares beneficially owned by a person, we
have included shares for which the named person has sole or shared power over
voting or investment decisions. Except as otherwise noted below, the number of
shares beneficially owned includes common stock which the named person has the
right to acquire, through conversion or option exercise, or otherwise, within 60
days after April 8, 2008. Beneficial ownership calculations for 5% stockholders
are based solely on publicly filed Schedule 13Ds or 13Gs, which 5% stockholders
are required to file with the Securities and Exchange Commission.

Name and Address of Beneficial Owner
    Amount and Nature of Beneficial
      Ownership
    Percentage of Class(1)Ronald Lizée 102, 3550 Taylor Street East Saskatoon,
      Saskatchewan S7H 5H9
    175,000(2)
    0.84%Dr. Manos Topoglidis
      Panagi Tsaldari 5, Maroussi Athens, Greece 315122
    500,000(3)
    2.41%Platon Tzouvalis 4
      Isminis St. Chalandri, Greece 315232
    1,475,000(4)
    6.9%Dr. Dimitris Goundis STR.
      Katsimitrou 10 Ioannina, Greece
    1,250,000(5)
    5.98%Dr. Evan Manolis 11311
      Poplar Creek Lane Orland Park, IL 60462
    403,031(6)
    1.93%Directors and Executive
      Officers as a Group
    3,803,031
    18.06%


|(1) | Based on 20,656,481 shares of common stock issued and
      outstanding as of April 8, 2008. Beneficial ownership is determined in
      accordance with the rules of the Securities and Exchange Commission and
      generally includes voting or investment power with respect to securities.
      Except as otherwise indicated, we believe that the beneficial owners of
      the common stock listed above, based on information furnished by such
      owners, have sole investment and voting power with respect to such shares,
      subject to community property laws where applicable.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Includes options to acquire an aggregate of 175,000
      shares of common stock exercisable within 60 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(3) | Includes options to acquire an aggregate of 100,000
      shares of common stock exercisable within 60 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(4) | Includes options to acquire an aggregate of 725,000
      shares of common stock exercisable within 60 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(5) | Includes options to acquire an aggregate of 250,000
      warrants exercisable within 60 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(6) | Includes warrants to acquire an aggregate of
      178,788 warrants exercisable within 60 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

---

29

Equity Compensation Plan Information

As at December 31, 2007, we do not have any compensation plans
in place.

Change in Control

We are not aware of any arrangement that might result in a
change in control of our company in the future.

|ITEM 12. | CERTAIN RELATIONSHIPS AND RELATED
      TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|-------- | --------------------------------------------------------------------------------

Except as described below, none of the following persons has
any direct or indirect material interest in any transaction to which our company
was or is a party during the past two fiscal years, or in any proposed
transaction to which our company proposes to be a party:

|1. | any director or officer of our company;                                                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                       
|2. | any proposed director of officer of our
company;                                                                                                                                                      
|   |                                                                                                                                                                                                       
|3. | any person who beneficially owns, directly or indirectly,
      shares carrying more than 5% of the voting rights attached to our
      companys common stock; or                                    
|   |                                                                                                                                                                                                       
|4. | any relative or spouse of any of the foregoing persons,
      or any relative of such spouse, who has the same house as such person or
      who is a director or officer of any parent or
subsidiary.

For the fiscal ended 2007, a total of $48,317 in fees was
billed to our company by Lizée Gauthier, Certified General Accountants, of which
our companys Chief Financial Officer, Mr. Lizée, is the proprietor, for
accounting work provided to our company by Mr. Lizée.

During the fiscal year ended 2007 our company paid $615,150 to
our President, Platon Tzouvalis, $332,400 to our Chief Technology Officer, Dr.
Manos Topoglidis and $923,658 to our Chief Executive Officer, Dr. Dimitris
Goundis.

Corporate Governance

We currently act with 4 directors, consisting of Ronald Lizée,
Dr. Manos Topoglidis, Platon Tzouvalis and Dr. Evan T. Manolis.

We do not have standing audit, nominating or compensation
committees, or committees performing similar functions. Our board of directors
believe that it is not necessary to have a standing audit or compensation
committees at this time because the functions of such committees are adequately
performed by our board of directors.

|ITEM 13. | EXHIBITS.
|-------- | ---------

|(3) | Articles of Incorporation and By-laws                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                          
|3.1 | Articles of Incorporation (incorporated by reference from
      our Registration Statement on Form 10-SB filed May 24, 2002, as amended).
|    |                                                                                                                                          
|3.2 | Bylaws, as amended (incorporated by reference from our
      Registration Statement on Form 10-SB filed May 24, 2002, as amended).       

---

30

|(10)  | Material Contracts                                                                                                                                                                                                           
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                              
|10.1  | Agreement for
        the Sale of Stock between our company and Dr. Leftheris Georgakopoulos
        dated February 13, 2006 (incorporated by reference from our Current Report
        on Form 8-K filed February 16, 2006).
|      |                                                                                                                                                                                                                              
|10.2  | Development Agreement
        between our company and Molecular Vision Limited.                                                                                                                                              
|      |                                                                                                                                                                                                                              
|10.3  | Employment Agreement
        dated September 3, 2007 between our company and Dr. Dimitris Goundis (incorporated
        by reference from our Current Report on Form 8-K filed September 28, 2007).                          
|      |                                                                                                                                                                                                                              
|10.4  | Letter Agreement
        dated February 1, 2008 (incorporated by reference from our Current Report
        on Form 8-K filed February 19, 2008).                                                                             
|      |                                                                                                                                                                                                                              
|(31)  | Section 302
        Certification                                                                                                                                                                                            
|      |                                                                                                                                                                                                                              
|31.1* | Rule
        13a-14(a) Certification of Principal Executive Officer.                                                                                                                                                         
|      |                                                                                                                                                                                                                              
|31.2* | Rule
        13a-14(a) Certification of Principal Financial Officer and Principal Accounting
        Officer.                                                                                                                
|      |                                                                                                                                                                                                                              
|(32)  | Section 906
        Certification                                                                                                                                                                                            
|      |                                                                                                                                                                                                                              
|32.1* | Certification
        of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as
        Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                               
|      |                                                                                                                                                                                                                              
|32.2* | Certification
        of Principal Financial Officer and Principal Accounting Officer Pursuant
        to 18 U.S.C. Section 1350, as Pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.                      

*filed herewith

|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES
|-------- | --------------------------------------

Audit and Accounting Fees

The aggregate fees billed by Amisano Hanson, Chartered
Accountants, for professional services rendered for the audit of our annual
financial statements included in our Annual Report on Form 10-KSB and review of
our quarterly 10-QSBs for the fiscal years ended December 31, 2007 and 2006
were $57,961 and $55,459 respectively.

Tax Fees

Our company did not pay for any tax fees during the fiscal year
ended 2007 and 2006.

Approval of Audit Fees

Effective May 6, 2003, the Securities and Exchange Commission
adopted rules that require that, before Amasano Hanson is engaged by us to
render any auditing or permitted non-audit related service, the engagement
be:

|1. | approved by our audit committee; or                                                                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|2. | entered into pursuant to pre-approval policies and
      procedures established by our audit committee, provided the policies and
      procedures are detailed as to the particular service, our audit committee
      is informed of each service, and such policies and procedures do not
      include delegation of our audit committees responsibilities to
      management.

Our board of directors, which performs the functions of an
audit committee, pre-approves all services provided by our independent auditors.
The pre-approval process has been implemented in response to the new rules, and
therefore, our board of directors does not have records of what percentage of
the above fees were pre-approved.

---

31

However, all of the above services and fees were reviewed and
approved by our board of directors either before or after the respective
services were rendered.

Our board of directors has considered the nature and amount of
fees billed by Amasano Hanson for the fiscal year ended December 31, 2007, and
believes that the provision of services for activities unrelated to the audit is
compatible with maintaining auditor independence.

---

32

SIGNATURES

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

ACRONGENOMICS, INC.

|By: | /s/ Dimitri Goundis                                                  | 
|--- | -------------------------------------------------------------------- | 
|    | Dr. Dimitri Goundis, Chief
      Executive Officer                   | 
|    | (Principal Executive Officer)                                        | 
|    | Date: April 15, 2008                                                 | 
|    |                                                                      | 
|By: | /s/ Ron Lizée                                                        | 
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director     | 
|    | (Principal Financial Officer and
      Principal Accounting Officer) | 
|    | Date: April 15, 2008                                                 | 

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

|By: | /s/ Dimitri Goundis                                                  | 
|--- | -------------------------------------------------------------------- | 
|    | Dr. Dimitri Goundis, Chief
      Executive Officer                   | 
|    | (Principal Executive Officer)                                        | 
|    | Date: April 15, 2008                                                 | 
|    |                                                                      | 
|By: | /s/ Ron Lizée                                                        | 
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director     | 
|    | (Principal Financial Officer and
      Principal Accounting Officer) | 
|    | Date: April 15, 2008                                                 | 
|    |                                                                      | 
|By: | /s/ Platon Tzouvalis                                                 | 
|    | Platon Tzouvalis, President and
      Director                       | 
|    | Date: April 15, 2008                                                 | 
|    |                                                                      | 
|By: | /s/ Manos Topoglidis                                                 | 
|    | Dr. Manos Topoglidis, Director                                       | 
|    | Date: April 15, 2008                                                 | 

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